Port of Seattle 
Entrance Conference 
October 2, 2012 

Washington    About Our Office 
State Auditor        We independently serve the citizens of Washington by promoting accountability,
Brian Sonntag       fiscal integrity, openness in government and the efficient and effective use of
public resources. 
Director of State 
and Local Audit         Audit 
Chuck Pfeil 
State  law  requires  our  Office  to  examine  the  financial  affairs  of  all  local
(360) 902-0366          governments. We consider several factors as we determine the frequency and
Chuck.Pfeil            type of audit to conduct. These include assessing the Port's annual revenues,
@sao.wa.gov          federal expenditures, significant issues found in prior audits, bond covenants and
state laws and regulations.   We also strive to meet any other audit needs
Deputy Director         expressed to us by local governments. 
Kelly Collins 
Investigations 
(360) 725-5359 
Kelly.Collins             We also investigate potential frauds reported to our Office and examine some
@sao.wa.gov          citizen concerns. Local governments are required to immediately notify our Office
in the event of a known or suspected loss of public resources or other illegal
activity. These notifications can be made on our website. We determine which
Audit Manager         citizen concerns we will look at based on their seriousness and our available
Carol Ehlinger          resources. 
(206) 615-0557 
Carol.Ehlinger           Support Services 
@sao.wa.gov          We provide support services to local governments through technical assistance,
comparative statistics, training, and tools to help prevent and detect a loss of
Audit Supervisor        public funds. Our website offers many resources, including a client HelpDesk that
Dan Potapenko        answers auditing and accounting questions. 
(206) 615-0576 
Your Audit 
Dan.Potapenko 
@sao.wa.gov      Using  a  risk-based  approach,  our  audit  will  evaluate  accountability  and
compliance with state laws and regulations in the following areas: 
Audit Lead            Conflict of Interest 
Ryan Donnell 
Parking Revenue Control System 
(206) 615-0555           Change orders 
Ryan.Donnell            Payroll 
@sao.wa.gov           General disbursements 
Follow-up on prior audit recommendations (SCRAPS & Port labor) 
www.sao.wa.gov        Self insurance program 
State grants 
Twitter:
@WAStateAuditor

Audit Scope 
Accountability Audit 
Accountability audits examine financial records to evaluate whether public funds are handled properly
and in compliance with laws and regulations.
We consider whether the Port has effective internal controls in place to promote accountability and
encourage sound financial management practices. Effective internal controls also prevent losses of
public funds or detect them in a timely manner. Governments should continually evaluate internal
controls to ensure they are effective and updated when necessary.
Accountability Audit Report 
We expect to issue this report in December, 2012 assuming there are no unforeseen delays. 
Other Information 
Confidential Information 
Our Office is committed to protecting your confidential or sensitive information.  Please notify us
when you give us any documents, records, files, or data containing information that is covered by
confidentiality or privacy laws, such as HIPAA. 
Audit Costs 
The cost of the audit is estimated to be approximately $83,500. 
Audit Staffing 
The following staff will assist on this audit: 
Rae Woodside 
Janise Hansen 
Expected Communications 
We will communicate any difficulties encountered or significant changes in our planned audit scope
to Debbi Browning, Assistant Director of Accounting and Financial Reporting. Also, preliminary
recommendations will be shared as they are developed.
Please let us know if there are any recent events or transactions that we should consider. 
Reporting Levels for Audit Recommendations 
Findings 
Findings formally address issues in an audit report. You will be given the opportunity to respond to
a finding, and this response, or synopsis of it, will be published in the audit report.

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Professional auditing standards define the issues we must report as findings with regard to noncompliance
with a financial statement effect and internal controls over financial reporting. 
OMB Circular A-133 defines the issues we must report as findings with regards to non-compliance
and internal controls over compliance with federal grants. 
Management Letters 
Management letters communicate less significant instances of noncompliance and make
recommendations for strengthening internal controls. Management letters are referenced, but not
included, in the audit report. 
Exit Items 
Exit items are less serious audit issues than a finding or management letter. These issues are
informally communicated to you.














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