PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA             Item No.      5c 
Date of Meeting    October 5, 2010 

DATE:    September 28, 2010 
TO:     Tay Yoshitani, Chief Executive Officer 
FROM:    Dan Thomas, Chief Financial & Administrative Officer 
Rudy Caluza, Director, Accounting & Financial Reporting 
Lisa Lam, Senior Manager, Financial Reporting & Controls 
SUBJECT:  One-Year Contract Extension with Moss Adams for the Financial
Statement, Single Audit (federal grant compliance) and Passenger Facility
Charge Auditing Services for the Port's 2010 Operating Period 
Amount of This Request: $577,600 
Source of Funds: AFR operating budget & various capital budgets, prorated 
Estimated Workers Employed: 13 from Moss Adams and 2 from Branch Richards 
ACTION REQUESTED: 
Request Port Commission authorization for the Chief Executive Officer to extend the
contract for Financial Statement, Single Audit (federal grant compliance) and Passenger
Facility Charge auditing services of the Port's 2010 operating period with Moss Adams in the
amount not-to-exceed $577,600. This is the fifth and final renewal of this contract. 
This action also notifies Commission, per the requirements of RCW 53.19.60 that
authorization of this proposed Amendment increases the contract value by $577,600 to
$2,965,200 which is in excess of the original contract value both individually and
cumulatively greater than 50% of the original contract price of $551,000. 
SYNOPSIS: 
In 2006, the Port competitively selected Moss Adams to perform annual independent audits
of the Financial Statement, Single Audit (federal grant compliance) and the Passenger
Facility Charge (PFC) in 2006, and the Commission authorized the Chief Executive Officer
and the Chief Financial & Administrative Officer to execute a contract, renewable year-toyear
for up to four years at the Port's sole discretion, on July 25, 2006. This is the final year
of the contract, and a Request for Proposal (RFP) will be issued for a new contract for
auditing services in 2011. The Commission Audit Committee reviewed this contract on

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
September 29, 2010 
Page 2 of 4 
September 7, 2010, and concurred in seeking Commission approval for the final year of
contract. 
Moss Adams is the largest Seattle-based CPA firm and audits many regional and state
municipal enterprise clients, such as Seattle Public Utilities. It subcontracts with Branch
Richards & Co., a small minority-owned business CPA firm, and fully integrates Branch
Richards staff into the broader Moss Adams team. This effort supports the Port's small
business initiative. Moss Adams exceeded the Port's expectations in the 2009 audit by
completing both the federal regulatory compliance audits two months early, which coincided
with the completion of its audit of the Port's financial statements. Moss Adams estimates
that its fees will decrease 4% in 2010, barring any major audit issues that would require an
expansion of the scope of work or additional audit work, with a not-to-exceed commitment of
$577,600. The firm responded to the Port's 2009 cost-cutting initiative by cutting its fee by
5%, or over $30,000, when compared with the 2008 fee.
BACKGROUND: 
Annual independent audits are required for the financial statements of the Port 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, and
independent audits are required of the Port's administration of federal grants and PFC
revenues in accordance with applicable regulations. 
The Port selected Moss Adams to perform the required audits of its financial statements in
2006 as the result of a formal RFP process, and, the Port Commission approved the award of
a one year contract for auditing services, renewable for up to four years at the Port's sole
discretion, to Moss Adams on July 25, 2006. The term of audit services contained in the RFP
was for fiscal years ending December 31, 2006, 2007 and 2008, along with an option to
extend the contract on a year-to-year basis for another two years. This action exercises the
second of the one year renewals to cover the 2010 audit period. The Port intends to issue a
new RFP to competitively procure auditing services in 2011. The Commission Audit
Committee reviewed this extension and concurred in seeking Commission approval at its
meeting on September 7, 2010. 
Moss Adams is the nation's eleventh largest firm, the largest based in the western half of the
U.S., and the largest Seattle-based CPA firm. It subcontracts with Branch Richards & Co., a
small minority-owned business CPA firm, fully integrating their staff members into the
broader Moss Adams audit team. This effort directly support's the Commission's small
business initiative, which is a priority for the Port. In addition to its many municipal
enterprise clientele nationally, Moss Adams' large enterprise clientele in our region includes 
the City of Seattle - Seattle Public Utilities, the City of Tacoma  Tacoma Public Utilities,
Snohomish and Clark County public utility districts, and the Washington State Housing
Finance Commission. 
Moss Adams' fees for the 2010 audit services remain flat, equal to the 2009 engagement in
the amount not to exceed $577,600. Moss Adams has also proposed a 4% reduction in fees,

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
September 29, 2010 
Page 3 of 4 
barring any major audit issues that would require an expansion of scope or additional audit
work. Moss Adams also reduced its 2009 audit fee by 5%, or over $30,000, when compared
to the 2008 fee, in response to the Port's 2009 cost-cutting initiative. 
To ensure timely reporting to the public and to its bondholders, the Port holds our
independent CPA firm contractually accountable to complete its audit and issue the
independent auditor opinion on the Port's financial statements by April 30th of each year,
which then enables the Port to issue its financial statements by the first week of May. The
CPA firm is also required to complete and issue both the Single Audit and PFC audit reports
by June 30th of each year. Moss Adams exceeded the Port's expectations in the 2009 audit
engagement by completing both federal regulatory compliance audits two months earlier, 
coinciding with the completion of its audit of the Port's financial statements. 
This year, Moss Adams will again need to work under rigid timelines with Audit Planning
during October which encompass risk assessments, prepared-by-client schedules required of
the Port, and interviews of key Port leadership; Interim Audit Fieldwork during October-
December which encompass internal controls and significant accounts testing and audit
procedures for federal awards administration; Year-end Audit Fieldwork during February-
March which encompass the audit of Port's financial statements and testing the Schedule of
Federal Awards; and then internal quality assurance and concurring partner review during
April. 
FINANCIAL IMPLICATIONS: 
Fees for the 2010 audit services remain flat, equal to the 2009 engagement in the amount not
to exceed $577,600. Moss Adams has also proposed a 4% reduction in fees, barring any
major audit issues that would require an expansion of scope or additional audit work.
SOURCE OF FUNDS: 
The fee for the 2010 audit services, which is conducted during latter 2010 and first half of
2011, is included in the Accounting & Financial Reporting (AFR) department's 2010 
approved and 2011 proposed operating budgets, and in capital budgets as appropriate. The
funding sources are approximately 55% and 45%, respectively. 
OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST: 
Moss Adams Letter and Fee Proposal for 2010 Audits dated July 27, 2010. 
PREVIOUS COMMISSION ACTIONS: 
September 17, 2009  The Commission authorized an option to extend the contract with
Moss Adams for the Port's 2009 operating period for $577,600. 
October 27, 2008  The Commission authorized the execution of a contract with Moss
Adams for the Port's 2008 operating period for $608,000.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
September 29, 2010 
Page 4 of 4 
May 6, 2008  The Commission authorized an amendment to the Moss Adams contract in an
amount not-to-exceed $62,000. 
September 25, 2007  The Commission authorized the execution of a contract with Moss
Adams for the Port's 2007 operating period for $589,000. 
July 25, 2006  The Commission authorized the execution of a contract with Moss Adams for
2006 in the amount of $551,000 and renewable year-to-year for up to four additional years at
the Port's sole discretion.