Port of Seattle 
Agenda:                               2013 Audit Results 
Reports Issued 
Areas of Audit Emphasis                        May 20, 2014 
Matters Required to be Communicated 
Other Communications 


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REPORTS ISSUED 
Unmodified opinion on financial statements for the Enterprise Fund and the
Warehousemen's Pension Trust Fund 
Report on the Schedule of Net Revenues Available for Revenue Bond Debt
Service 
Single Audit Reports 
o  Audit and report on internal control and compliance over financial reporting in
accordance with Government Auditing Standards 
One significant deficiency in internal control noted related to a vendor
supplied ancillary operating system 
o Audit and report on compliance related to the major Federal Award Programs,
the Schedule of Expenditures of Federal Awards and related internal controls in
accordance with Federal Circular OMB A-133 
No findings of noncompliance noted 
Audit and report on the schedule of Passenger Facility Charge (PFC)
receipts and expenditures and related internal controls 
No findings of noncompliance noted 
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AREAS OF AUDIT EMPHASIS 
Internal control environment 
Management estimates 
o  Environmental remediation liability, legal and insurance contingencies/ recoveries,
depreciation, allowance for doubtful accounts, grant receivables, self insurance
liabilities, actuarial valuations for the Warehousemen's Pension Trust amounts and
disclosures 
Revenue recognition 
o  Operating revenue analysis using business indicators such as landed weight,
enplanements, gate usage, crane movements, and boat counts 
o  Ad valorem tax levy, investment income, PFC, CFC, and federal grants 
o  Consideration of the collectability of related receivables 
Signatory lease and operating agreement 
o  Analysis of revenue requirement by cost center category according to the agreement
including landing fees, terminal rents, gate fees, baggage claim rates, preferential and
common use rates under the new SLOA III agreement 
o  Accounting treatment of the SLOA II related accounts 
o  Revenue sharing and year-end settlement of amounts on an airline by airline basis 
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AREAS OF AUDIT EMPHASIS (CONTINUED) 
Accounting for leases 
o  Airport concessions and fuel system, Seaport, and Real Estate leases 
o  Testing of lease terms, payments and appropriate accounting treatment and disclosures 
Bonds and related accounts 
o  Arbitrage liability, capitalized interest, discounts and premiums, new debt issuance, debt
repayments, compliance with covenants, and audit of Net Revenues Schedule 
o  Consideration of the implementation of GASB 65 (deferred inflows and outflows) 
Capital assets 
o  Consideration of capitalization policies and potential impairment, as well as testing of
additions, retirements, overhead application, capitalized interest, depreciation 
Net position 
o  Consideration of classification for unrestricted, restricted, and net investment in capital
assets 
Management's Discussion and Analysis and Notes to Financial Statements 
Four major programs tested this year  AIP, Port Security Program, Conservation
Research & Development, and National Explosives Detection Canine Team Program 
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REQUIRED COMMUNICATIONS 
Auditor and Management responsibilities for financial statements under
Generally Accepted Auditing Standards 
o To form and express an opinion about whether the financial statements are fairly
presented; to plan and perform the audit in accordance with generally accepted
auditing standards and Government Auditing Standards 
o Our audit does not relieve management and the Port Commission of its
responsibilities 
Audit was performed according to the planned scope 
Significant accounting policies are summarized in Note 1 to the financial
statements 
Financial statement disclosures were consistent, clear and understandable 
Representations were requested and received from management 
There were no proposed or passed audit adjustments impacting net
position 
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REQUIRED COMMUNICATIONS (CONTINUED) 
There were no disagreements with management 
Consultation with other independent auditors (none of which we are
aware) 
Difficulties encountered during the audit (none) 
Illegal acts (none noted) 
Ability to continue as a going concern (no disclosure necessary) 
Consideration of fraud in a financial statement audit 
o Procedures performed included journal entry testing and interviews of
personnel 
Moss Adams is independent with respect to the Port of Seattle 


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OTHER COMMUNICATIONS 
Weekly meetings were held between Moss Adams and Port management
and staff throughout the audit term 
The audits progressed on time and in an orderly fashion 
All Port personnel were courteous, responsive and fulfilled all of our
requests in a timely manner 
'Tone at the Top' and attitude from management was one of helpfulness,
candor, and openness in response to audit requests and discussion points 
As planned, Branch Richards & Co. personnel were an integral part of our
audit team. Approximately eight percent of our audit hours are contributed
by this small business firm on an annual basis 


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