Item 3. Moss Adams Presentation

Port of Seattle 
2018 Engagement Service Plan 
December 7, 2018

Moss Adams Service Team Leaders 
Services to be Provided 
Responsibilities (Auditor / Management) 
Phases and Timing of the Audit 
Our Audit Approach 
Areas of Audit Emphasis 
Auditing and Accounting Standards Update

Your 2017 Audit Service Team Leaders 
Team Member                        Responsibilities 
Olga A. Darlington,  Olga will serve as the lead client service partner, overseeing all
Partner  projects we perform for the Port, and performing overall
engagement review function. 
Tammy Erickson,  Tammy will serve as the second reviewer of our reports,
Partner  serving in the QC role, and will consult on technical issues or
3                                                                          key elements of the audits, as needed. 
Tyler Reparuk,  Tyler will oversee the engagement team for all services
Senior Manager  provided to the Port, and will review testing performed by out
team during the audits. 
Lisa Dion,  Lisa will supervise our staff in the field, and manage each of the
Senior Manager  audits we perform.

Your 2017 Audit Service Team Leaders 
Team Member                     Responsibilities 
Kimberly Koch, 
Kim will lead our audit procedures covering the Port's
IT Consulting 
Information Technology (IT) systems, including general computer
Kevin Villanueva, 
A Qualified Security Assessor, Kevin will serve as an additional
IT Consulting 
reviewer of our IT procedures and will oversee testing procedures
4                                                                     related to IT security and related issues. 
Maria Braun, 
Maria will supervise staff and perform audit procedures related to 
IT Consulting 
the Port's IT systems, including general computing controls

Your 2018 Audit Service Team 
o The following individuals will also serve on the Port of Seattle
Engagement Team: 
Anna Waldren, Senior 
Cassie Johnson, Senior 
Jade Carson, Experienced Staff 
5                   Connor McCaule, Staff 
Fiona Deng, Branch Richards & Co; Subcontractor, Experienced Staff

Summary of Our Services 
o Audit and report on financial statements for both the Enterprise Fund and the
Warehousemen's Pension Trust Fund to be included in the Port's Comprehensive Annual
Financial Report; 
o Audit and report on internal control and compliance over financial reporting in
accordance with Government Auditing Standards; 
o Audit and report on compliance related to Major Federal Award Program(s), the Schedule
of Expenditures of Federal Awards and related internal controls in accordance with the
6                   Uniform Grant Guidance; 
o Audit and report on the schedule of Passenger Facility Charge (PFC) program receipts
and expenditures, and related internal controls; 
o Audit and report on the schedule of net revenues available for revenue bond debt service; 
o Agreed Upon Procedures and report to State of Washington Department of Ecology
relating to Terminal 91 Facility;

Our Responsibilities 

Audit  GAAS & GAGAS                   Read Other Information 

Report Non-Compliance (Single
Audit)                              Express Opinion / Issue Reports 

Communicate  Audit Committee               Communicate  Management

Management's Responsibilities 

Prepare Accurate FS                   Internal Controls 

Compliance                        Report Fraud 

Make Available                    Representation Letter

Audit Timeline 
Planning & Risk        Testing of Internal         Testing of IT          Substantive Audit          Reporting &
Assessment             Controls               Controls             Procedures          Communications 

April - May 2019 
Final review of audit work, report
September/                                    issuance, and presentation of
9                                                      October                                                               audit results to management and
2018                                             Audit Committee 

September 2018                                    March- April 2019 
Final fieldwork procedures for
Financial Statement and
Single Audit

Planning and Risk Assessment 
o Audit risk involves the risk of material misstatement in the financial statements: 
Inherent risk, control risk and detection risk; 
o Audit is designed to provide reasonable: 
Not absolute  assurance that the financial statements are free of material
o Audit scope and approach is determined based upon results of risk assessment; 

Evaluation of Internal Controls 
o Evaluate components of internal controls 
o Significant Accounts and Processes considered 
IT Controls Billings and accounts receivable, leases, capital assets and projects,
procurement, cash disbursements, payroll, debt, treasury, environmental remediation
liability and contingencies, other revenues, financial close and reporting 
o IT Systems 
Application controls 
General computing controls 
o Administration of federal awards (Single Audit) 
Includes tests of compliance

Substantive Audit Procedures 
o Tests of Details 
Directed testing and audit sampling 
Random and judgmental sampling methods are used 
Compliance with requirements of the major federal awards and PFC program 
o Analytical Procedures 
Comparison of current and prior year results, and actual to budgeted amounts 
Analysis of detailed changes within certain accounts such as capital assets, long term debt and
Predictive analytics for income statement accounts, based upon history, data independent of
accounting department, and industry expectations 
Holistic review of overall financial statements

Areas of Audit Emphasis 
Internal Control         Management
Bond Accounts 
Cycles               Estimates 

Accounting for           Revenue
Capital Assets 
Leases             Recognition 

Net Position         Pension & OPEB
Classification             Liabilities 

Northwest Seaport       Uniform Grant
Investments         Alliance  Joint       Guidance (Single
Venture                 Audit)

Accounting Pronouncements (GASB)  Effective for 2018 reporting 
GASB 75 - Accounting and Financial Reporting for Postemployment Benefits Other Than
Pensions: Addresses accounting and financial reporting issues related to other postemployment
benefit plans. 
GASB 82  Pension Issues amendment of GASB Statements No. 67, No. 68, and No. 73:
Addresses accounting and financial reporting clarifications related to issues identified in
statements Nos. 67, 68, and 73. 
GASB 85  Omnibus 2017: Addresses practice issues that have been identified during
14                   implementation and application of certain GASB Statements.  We will work with management to
plan for the implementation of this standard. 
GASB. 86 - Certain Debt Extinguishment Issues: Improves consistency in accounting and
financial reporting for in-substance defeasance of debt by providing guidance for transactions in
which cash and other monetary assets acquired with only existing resourcesresources other
than the proceeds of refunding debtare placed in an irrevocable trust for the sole purpose of
extinguishing debt.

Accounting Pronouncements (GASB)  Effective for 2019 reporting 
GASB 83  Certain Asset Retirement Obligations (effective in 2019): Addresses accounting and
financial reporting for certain asset retirement obligations. We will work with management to
plan for the implementation of this standard. 
GASB 84  Fiduciary Activities (effective in 2019): Addresses the improvement of guidance
regarding the identification of fiduciary activities for accounting and financial reporting purposes
and how those activities should be reported. We will work with management to plan for the
implementation of this standard. 
15              GASB 88 - Certain Disclosures Related to Debt, including Direct Borrowings and Direct
Placements (effective in 2019): Improves the information that is disclosed in notes to financial
statements related to debt, including direct borrowings and direct placements. 
GASB 90 - Majority Equity Interestsan amendment of GASB Statements No. 14 and No. 61
(effective in 2019): Improves the consistency and comparability of reporting a government's
majority equity interest in a legally separate organization and to improve the relevance of
financial statement information for certain component units.

Accounting Pronouncements (GASB)  Effective for 2020 reporting 
GASB 87  Leases (effective 2020): Addresses the accounting change for the recognition of
certain lease assets and liabilities for leases that were previously classified as operating leases and
recognized as inflows of resources or outflows of resources based on the payment provisions of the
underlying contract. We will work with management to plan for the implementation of this
GASB 89 - Accounting for Interest Cost Incurred before the End of a Construction Period
(effective in 2020): Establishes accounting requirements for interest cost incurred before the end
of a construction period, and requires that interest cost incurred before the end of a construction
16                   period be recognized as an expense in the period in which the cost is incurred. We will work with
management to plan for the implementation of this standard.

Contact Information: 

Olga A. Darlington, 425.551.5712 
17              Tammy Erickson, 509.777.0149 
Tyler Reparuk, 206.302.6431 
Lisa Dion, 206.302.6734 
Kim Koch, 509.777.0107 
Kevin Villanueva, 206.302.6542 
Maria Braun, 206.302.6295

The material appearing in this presentation is for informational purposes only and should not be construed
as advice of any kind, including, without limitation, legal, accounting, or investment advice. This information
is not intended to create, and receipt does not constitute, a legal relationship, including, but nor limited to,
an accountant-client relationship. Although this information may have been prepared by professionals, it
should not be used as a substitute for professional services. If legal, accounting, investment, or other
professional advice is required, the services of a professional should be sought.
18                                     Assurance, tax, and consulting offered through Moss Adams LLP. Wealth management offered through
Moss Adams Wealth Advisors LLC. Investment banking offered through Moss Adams Capital LLC.

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