Presentation to the 
Port of Seattle 
Audit Committee 
Results of 2010 Audit 
May 3, 2011 


1

Reports Issued 
Report on financial statements 
Unqualified opinion on the financial statements 
Opinion covers separate statements of the Enterprise Fund and the
Warehousemen's Pension Trust Fund 
Report date of April 22, 2011 
Delivered by April 29, 2011 
Audit and report on Schedule of Net Revenues Available for Revenue
Bond Debt Service 
Report dated the same date as financial statement opinion 
Delivered by April 29, 2011 
Audit and report on Schedule of Passenger Facility Charges (PFC's),
receipts and expenditures and related internal controls 
Reports dated the same date as financial statement opinion 
Final draft completed by April 29, 2011 
Audit and report on Federal Financial Assistance Programs and related
internal controls and compliance in accordance with Federal OMB
Circular A-133 (Single Audit) 
Reports dated the same date as financial statement opinion 
Final draft completed by April 29, 2011 

2

Internal Control Matters 
No material weaknesses in internal controls identified 
Observations for business process improvements 
More robust review of quarterly PFC reports received from
the airlines 
East Marginal Way Program quarterly progress reports
should be retained upon submission 
Information technology matters 
No new matters identified 
Finding of non-compliance 
Verification of suspended/debarred parties on back-funded
Federal claims was not performed 
No questioned costs noted 


3

Areas of Audit Effort 
Internal control environment 
Understand and test the design and implementation of key controls
surrounding all significant financial statement accounts and administrative
processes and compliance requirements 
Assess information technology general controls and certain application
controls 
Test sample of transactions of the capital assets related systems, payroll,
cash disbursements and procurement systems, and leases 
Treasury and investment, debt, cash, budget, third party transactions,
environmental liability, and financial close and reporting cycles tested
through observations, inquiries and walkthroughs of each system and
controls 
Management estimates 
Environmental and pollution remediation obligation accruals, legal and
insurance reserves, depreciation, allowance for doubtful accounts, grant
receivables, arbitrage liabilities, actuarial valuations for the
Warehousemen's Pension Trust amounts and disclosures 


4

Areas of Audit Effort - continued 
Revenue recognition 
Operating revenue analysis using business indicators such as landed
weight, enplanements, gate usage, crane movements, and boat counts 
Ad valorem tax levy, investment income, PFC, CFC, and federal grants 
Consideration of the collectability of related receivables 
Signatory lease and operating agreement 
Revenue requirements for landing fees and terminal rents according to
the agreement 
Cost elements - debt service allocation and operating and maintenance
expense 
Accounting for leases 
Airport concessions and fuel system, Seaport, and Real Estate leases 
Testing of lease terms, payments and appropriate accounting treatment
and disclosures 


5

Areas of Audit Effort - continued 
Bonds and related accounts 
Arbitrage liability, capitalized interest, discounts and premiums, new
debt issuance, debt repayments, compliance with covenants, and audit
of Net Revenue Schedule 
Capital assets 
Consideration of capitalization policies and potential impairment as well
as testing of additions, retirements, overhead application, capitalized
interest, depreciation 
Net assets 
Consideration of classification for unrestricted, restricted, and invested
in capital assets, net of related debt 
Warehousemen's Pension Trust Fund 
Separate materiality and procedures 


6

Areas of Audit Effort - continued 
Administration of federal awards and related administrative
controls and compliance 
Total federal expenditures of $37.5 million 
Two major programs 
Airport Improvement Program - $30.2 million 
East Marginal Way Grade Separation Program - $3.7 million 
Tested major programs for compliance with OMB-Circular A-133 and
grant specific requirements 
One finding noted related to Excluded Party List System (EPLS)
verification on back-funded claims 
Passenger Facility Charge (PFC) Program Audit 
Schedules of Passenger Facility Charge Program Receipts and
Expenditures 
Tested internal controls and compliance with PFC requirements 
No findings noted 


7

Required Communications 
Auditor and Management responsibilities for financial statements
under Generally Accepted Auditing Standards 
Auditor: 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 
Our audit does not relieve management and the Board of its responsibilities 
Audit was performed according to the planned scope 
Significant accounting policies 
Summarized in Note 1 to the financial statements 
Consistent with the prior years 
Management judgments and accounting estimates 
Environmental expenses and related accruals 
Litigated and non-litigated loss contingencies 
Capitalized interest 
Depreciation 
Allowances for doubtful accounts 
Grant receivables 

8

Required Communications 
Financial Statement disclosures were consistent, clear and
understandable 
Audit Adjustments 
There were no proposed or passed adjustments 
Representations were requested of management 
Disagreements with management (none) 
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 additional disclosure
necessary) 
Consideration of fraud in a financial statement audit 
Procedures performed: 
Journal entry testing 
Interviews of personnel 
Moss Adams is independent with respect to the Port of Seattle 

9

Other Communications 
All significant audit issues and new accounting pronouncements
were addressed early in the audit process 
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 
As planned, Branch Richards & Co. personnel were an integral
part of our audit team. Approximately 7% of our audit hours
were contributed by this small business firm 


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