October 6, 2015 



Port of Seattle 
2015 Engagement Service Plan

AGENDA 
Moss Adams Service Team Leaders 
Services to be Provided 
Responsibilities (Auditor / Management) 
Phases and Timing of the Audit 
Our Audit Approach 
Areas of Audit Emphasis 
Auditing and Accounting Standards Update

YOUR 2015 AUDIT SERVICE TEAM LEADERS 
Team Member          Responsibilities 
Engagement Reviewer - Laurie will serve as your
lead client service partner, overseeing all projects we
Laurie Tish,  perform for the Port. 
Partner 
Concurring Reviewer - Olga will serve as the
second reviewer of the financial statements and our
reports and, as necessary, will consult on technical
Olga Darlington,  issues or key elements of the audits. 
Senior Manager 
Manager - Tyler will oversee the engagement team
and will review testing performed during the audit. 
Tyler Reparuk, 
Manager

YOUR 2015 AUDIT SERVICE TEAM LEADERS 
Team Member          Responsibilities 
Manager - Lisa will supervise our staff in the field
and manage each of the audits we perform. 
Lisa Dion, 
Manager 
Moss Adams Advisory Services Partner - Chris
will lead our audit procedures covering the Port's
Information Technology (IT) systems, including
general computer controls. 
Chris Kradjan, 
Partner 
IT Consulting - Kim will oversee and lead the IT
testing procedures, which is a significant part of our
audits. 
Kimberly Koch, 
Senior Manager

YOUR 2015 AUDIT SERVICE TEAM LEADERS 
Team Member          Responsibilities 
IT Consulting - A Qualified Security Assessor, Kevin
will serve as an additional reviewer of our IT
procedures and will oversee and perform audit
Kevin Villanueva, 
procedures related to IT security and related issues. 
Senior Manager

YOUR 2015 AUDIT SERVICE TEAM 
The following individuals will also serve on the
Port of Seattle Engagement Team: 
o Chris Wyckoff, Business Assurance Senior 
o Abby Barr, Business Assurance Staff 
o Anna Waldren, Business Assurance Staff 
o Maribelle Clear, IT Senior Consultant 
o Fiona Deng, Branch Richards & Co; Subcontractor, Business
Assurance Staff

SUMMARY OF OUR SERVICES 
Audit and report on financial statements for both the Enterprise Fund and the
Warehousemen's Pension Trust Fund to be included in the Port's Comprehensive
Annual Financial Report 
Audit and report on internal control and compliance over financial reporting in
accordance with Government Auditing Standards 
o Issue a management letter of recommendations and observations, as
necessary 
Audit and report on compliance related to the Airport Improvement Program
(AIP) and other Major Federal Award Program(s), the Schedule of Expenditures of
Federal Awards and related internal controls in accordance with the OMB Uniform
Guidance (formerly OMB A-133) 
Audit and report on the schedule of Passenger Facility Charge (PFC) program
receipts and expenditures and related internal controls 
Audit and report on the schedule of net revenue available for revenue bond debt
service 
Perform Agreed Upon Procedures and report to State of Washington Department
of Ecology relating to Terminal 91 Facility

OUR RESPONSIBILITIES 
Ensure the Audit Committee is aware      Express an opinion on the Port's
of any significant deficiencies or            financial statements based on our
material weaknesses                  audit and issue other reports as noted
on the previous slide 
Communicate those matters that
have come to our attention as a
result of the performance of the          Report any non-compliance with
audit                               federal and state laws as required by
Uniform Grant Guidance (Single audit) 
Immediately inform management
and the Audit Committee about any       Read other information contained in
information indicating illegal acts or        audited financial statements and
fraud that may have occurred             consider whether the information is
materially consistent with the
Conduct the audit in accordance with       information in the financial statements
generally accepted auditing              (such as bond issuance documents) 
standards (GAAS) and generally
accepted government auditing
standards (GAGAS)

MANAGEMENT'S RESPONSIBILITIES 
Establish and maintain adequate     Make accurate and complete
records and internal controls         financial statement information
over financial reporting              available to us 
Prepare financial statements        Make entity personnel available
that are materially correct and        to us 
in compliance with applicable
accounting standards             Inform us about all known or
suspected fraud affecting the
Provide written representations       entity 
about management's
responsibilities and assertions       Identify and ensure compliance
prior to issuance of our reports         with laws and regulations
applicable to the entity's
activities

PHASES OF THE AUDIT 
Planning and risk assessment 
Assessment and evaluation of internal controls 
o Including Information Technology general computer and
application controls 
o Including administrative controls pertaining to federal awards 
Substantive audit procedures 
Reporting and presentation of audit results

AUDIT TIMELINE 
Planning & Risk      Testing of       Testing of IT     Substantive Audit     Reporting &
Assessment     Internal Controls      Controls        Procedures      Communications 
November 2015 

April 2016 
October 2015                Final review of fieldwork,
report issuance, meet and
present to management
and Audit Committee 
September/October 2015            March 2016 
Final fieldwork procedures
for FS and Single audit

PLANNING AND RISK ASSESSMENT 
Audit risk involves the risk of material misstatement in
the financial statements 
o Inherent risk, control risk and detection risk 
Audit is designed to provide reasonable  not absolute  
assurance that the financial statements are free of
material misstatements 
Audit scope and approach is determined based upon
results of risk assessment

EVALUATION OF INTERNAL CONTROLS 
Evaluate components of internal controls 
Top-down approach 
Significant Accounts and Processes considered 
o Billings and accounts receivable, leases, capital assets and
projects, procurement, cash disbursements, payroll, debt,
treasury, environmental remediation liability and
contingencies, financial close and reporting 
IT Controls 
o Application controls 
o General computing controls 
Administration of federal awards (Single audit) 
o Includes tests of compliance

SUBSTANTIVE AUDIT PROCEDURES 
Tests of Details 
Directed testing and audit sampling 
Random and judgmental sampling methods are used 
Compliance with requirements of the major federal awards and
the PFC program 
Analytical Procedures 
Comparison of current and prior year results, and actual to budgeted
amounts 
Analysis of detailed changes within certain accounts such as capital
assets, long term debt and investments 
Predictive analytics for income statement accounts, based upon
history , data independent of accounting department, and industry
expectations 
Holistic review of overall financial statements

AREAS OF AUDIT EMPHASIS 
Internal control cycles 
o Key controls identified and tested 
o Capital assets, payroll, cash disbursements are tested via attribute sampling 
o All systems tested via inquiry and walkthroughs 
Management estimates 
o Environmental remediation liability, depreciation, allowance for doubtful accounts,
grant receivables, legal claims 
Bond accounts 
o Arbitrage liability, capitalized interest, compliance with covenants, new issuances,
refunding or defeasances 
Accounting for leases 
Revenue recognition 
o Airport lease agreement, seaport and real estate leasing arrangements, other
operating revenues, taxes, PFC and federal awards, investment income 
Capital assets 
Net position classification 
Pension liability (GASB 68) 
Environmental remediation liability 
Other Postemployment Benefits 
o Disclosures and reliance upon calculations performed by specialists

AREAS OF AUDIT EMPHASIS - SINGLE AUDIT 
Streamlines the Federal guidance on Administrative
Requirements, Cost Principles, & Audit requirements for
Federal awards (Uniform Guidance) 
o Limits allowable costs, provides consistent and transparent treatment of
costs 
o Eliminates duplicative and conflicting guidance, 
o Targets audit requirements on risk of waste, fraud, and abuse 
o Focuses on performance rather than just compliance 
Audit requirements 
o More emphasis on risk and audit threshold increases from $500K to
$750K 
o Allows for additional auditor judgment when selecting federal programs
for testing

ACCOUNTING PRONOUNCEMENTS (GASB) 
GASB 68 - Accounting and Financial Reporting for Pensions  an
amendment of GASB Statement No. 27 (effective Fiscal Year 2015) 
GASB 71 - Pension Transition for Contributions Made Subsequent
to the Measurement Date  an amendment of GASB Statement No. 68 (effective
Fiscal Year 2015) 
GASB 72 - Fair Value Measurement and Application  (effective Fiscal
Year 2016) 
GASB 73 - Accounting and Financial Reporting for Pensions and
Related Assets That Are Not within the Scope of GASB Statement
68, and Amendments to Certain Provisions of GASB Statements 67
and 68 (effective Fiscal Year 2016) 
GASB 74 - Financial Reporting for Postemployment Benefit Plans
Other Than Pension Plans (effective Fiscal Year 2017) 
GASB 75 - Accounting and Financial Reporting for
Postemployment Benefits Other Than Pensions (effective Fiscal Year
2018) 
GASB 76 - The Hierarchy of Generally Accepted Accounting
Principles for State and Local Governments - (effective Fiscal Year 2016)









CONTACT INFORMATION: 
LAURIE TISH, LAURIE.TISH@MOSSADAMS.COM 206.302-6466 
OLGA DARLINGTON, OLGA.DARLINGTON@MOSSADAMS.COM 425.551-5712 
TYLER REPARUK, TYLER.REPARUK@MOSSADAMS.COM 206.302-6431 
LISA DION, LISA.DION@MOSSADAMS.COM 206.302-6734 
CHRIS KRADJAN, CHRIS.KRADJAN@MOSSADAMS.COM 206.302-6511 
KEVIN VILLANUEVA, KEVIN.VILLANUEVA@MOSSADAMS.COM 206.302-6542 
KIM KOCH, KIM.KOCH@MOSSADAMS.COM 509.777-0107 

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