PORT OF SEATTLE 
MEMORANDUM 
AUDIT COMMITTEE AGENDA          Item No.      3 
Date of Meeting     Oct 6, 2015 
DATE:    September 29, 2015 
TO:     Audit Committee Members 
FROM:    Winnie Lauer, Financial Reporting & Controls Manager, Accounting &
Financial Reporting 
Rudy Caluza, Director, Accounting & Financial Reporting 
CC:      Dan Thomas, Chief Financial Officer 
SUBJECT:  Request for Qualification (RFQ) of External Audit Services for the Port's
2016 to 2020 Operating Periods 
Amount of This Request: Not to exceed $3,000,000 
Source of Funds: AFR operating budget & Portwide non-opearating budget 

ACTION REQUESTED: 
Review the RFQ for external audit services and recommend to the full Commission 
authorization for the Chief Executive Officer to initiate the procurement of external audit
services. 
SYNOPSIS: 
Annual independent audits are required for the financial statements of the Port's Enterprise
Fund and the Warehousemen's Pension Trust Fund for purposes of obtaining an independent
auditors opinion as to the fairness in presentation of the financial results and position. 
Independent audits are also required for the Port's administration of Federal grants and
Passenger Facility Charge (PFC) revenues in accordance with applicable regulations. These
audits covered under the existing external audit services contract is expiring in April 2016 
once the 2015 audit services are completed.

September 29, 2015 
Page 2 of 2 

The annual external audit services include the following deliverables: 
Independent Audit and Opinion - Financial Statements of the Port's Enterprise Fund 
Independent Audit and Opinion - Financial Statements of the Warehousemen's
Pension Trust Fund 
Independent Audit and Opinion  Net Revenue Available for Revenue Bond Debt
Service 
"Single Audit" and Report of Federal Grants Awarded 
PFC Program Audit and Report 
Agreed upon procedure of the Port's compliance with financial assurance regulations
for the Washington State Assurance Submission for the Port's Terminal 91 Facility. 
Per Port's policy, the staff intends to openly and competitively select the external auditor.
The RFQ incorporates the evaluation criteria for the Audit Committee to review and approve.
The RFQ process from drafting, advertising, to evaluation will be led by the Central
Procurement Office (CPO) and observed by the Director of Internal Audit in accordance with
Resolution No. 3704. The RFQ timeline is scheduled to begin around late October 2015 and
have an external auditor selected by end of 2015. As outlined in the RFQ, the evaluation
process includes written proposal evaluations and interviews of proposing firms. 
SOURCE OF FUNDS: 
The total audit fee estimated for all five years is expected to be under $3,000,000. The fee for
the 2016 audit services, which is conducted during latter 2016 and first half of 2017, is
included in the AFR department's 2016 proposed budget and will be included in the 2017 
AFR proposed operating budgets, and in non-operating budgets as appropriate. The funding
sources are approximately split 55% and 45% in operating and non-operating expense,
respectively. For audit services in 2017  2020, the budget will be included in the Port's
annual budget. 
STRATEGIC OBJECTIVES: 
Be a high performance organization: To be transparent and accountable over the
stewardship of public funds/assets, to be in full compliance with prescribed industry
accounting & financial reporting standards and Federal regulations, and to timely and
accurately report on the Port's financial results. 
PREVIOUS AUDIT COMMITTEE ACTION: 
2/1/2011  Approved proceeding of External Independent Audit RFQ