Exit Conference
Port of Seattle

Joe Simmons
Program Manager
Maddie Frost-Shaffer
Audit Supervisor
Angela Funamori
Audit Lead

January 21, 2021
Disclaimer: This presentation is intended to be viewed in conjunction with the complete packet of exit materials
provided. A copy of those materials may be requested by contacting the presenters listed or by emailing                                   1
PublicRecords@sao.wa.gov.

    SAO Executive Management
Pat McCarthy
State Auditor

Insert        Kelly Collins, CPA, Director of Local Audit
Staff          (564) 999-0807 | Kelly.Collins@sao.wa.gov
Picture
Here

Mark Rapozo, CPA, Deputy Director of Local Audit
(564) 999-0794 | Mark.Rapozo@sao.wa.gov


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         Results that Matter

Increased trust in government
Independent, transparent
examinations
Improved efficiency and
effectiveness of government                  Pat McCarthy
State Auditor


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     Accountability Audit Results
January 1, 2019 through December 31, 2019
Results in Brief
This report describes the overall results and conclusions
for the areas we examined.
In those selected areas, Port operations complied, in all
material respects, with applicable state laws, regulations,
and its own policies, and provided adequate controls over
the safeguarding of public resources.

In keeping with general auditing practices, we do not
examine every transaction, activity, policy, internal control,
or area. As a result, no information is provided on the
areas that were not examined.
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     Accountability Audit Results
Using a risk-based audit approach, for the Port, we
examined the following areas during the period:

•  Payroll –overtime and double-time
•  Rent deferral payment plans –compliance with state
law
•  Credit cards –purchase cards and travel and expense
cards
•  Financial condition


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     Payroll –Overtime and
double-time
We reviewed the Port’s policies, gained an
understanding of the Port’s controls over double-time
and overtime, performed analytical procedures, and
selected payroll transactions for testing. Our audit
determined the following:
Internal controls         Sufficientlydesigned to safeguard
resources. However, we did identify one
“exit item.”
Overtimeand double-   Transactions complied with Port policy,
time                  were valid, and adequately supported
by the appropriaterecords.
Audit highlight: We appreciated Duane Hill, Karin Olmstead, Jenniann
Kealin, Ann McClellan, BrendalynnTauleleiand Lisa Drake and their staff
for their assistance and timely responses.
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      Rent deferral payment plans
We gained an understanding of the Port’s rent deferral
payment plans, ensured the program was approved by
the Commissioners, and reviewed the program to
ensure it complied with state law and port policy. Our
audit determined the following:
Internal controls         Sufficientlydesigned to safeguard
resources
Rent deferral payment  The program was approved by the
plans                   appropriate individuals and complied
with state lawand port policy.

Audit highlight: We would like to highlight Lisa Lam and Rudy Caluza for
their assistance and timely responses while reviewing the Port’s Rent
deferral payment plans.
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     Credit cards
We reviewed the Port’s policies and procedures over
credit cards, gained an understanding of the Port’s
internal controls, and selected transactions to ensure
transactions complied with Port policies, supported, and
valid. Our audit determined the following:
Internal controls         Sufficientlydesigned to safeguard
resources
Purchase cards and      Transactions complied with Port
travel and expense      policies, were adequatelysupported by
card                   supporting records, and for valid Port
purposes.

Audit highlight: Karmeli Cayetanoand Kari Wilmus responded to questions about
our credit card and travel and expense card work timely.
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     Financial condition
We performed a trend of key financial indicators,
assessed additional non-financial information to identify
potential impacts, and analyzed the Port’s response to
COVID including monitoring performed by management.
Our audit determined the following:
Internal controls         Sufficientlydesigned to safeguard
resources
Financial Condition      Wenoted no issues in the Port’s
financial condition or sustainability.

Audit highlight: We would like to thank Michael Tong, Corporate Budget
Director, for his assistance and timely responses.
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      Tracker: A clear path to all your
audit information
Using tracker, your government can:
•  Get up to speed more quickly when turnover
occurs
•  Better and more quickly prepare for
upcoming audits
•  More easily identify and resolve issues

•  Enter a status update at the time of the
change
•  Show quickly that it resolved an issue –and
get the credit for that expedient resolution
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    Work of Other Auditors
•  A financial statement and federal grant audit was performed by
Moss Adams of the Port.
•  We did not find anything about their work that caused concern
about its quality.
•  No limitations restricted our analysis of the other audits.
•  Did not notice any instance in which a material misstatement
of the financial statements has or may have resulted from fraud
or suspected fraud.


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   Closing Remarks
•    Audit costs are in alignment with our original estimate
•    Next audit: Fall 2021
•   Accountability for public resources
An estimated cost for the next audit has been provided
in our exit packet



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     Report Publication
 Audit reports are published on our
website.
 Sign up to be notified by email when
audit reports are posted to our website:
https://sao.wa.gov/about- sao/sign-upfor-news-alerts
/
Audit Survey
When your report is released, you will
receive an audit survey from us.
We value your opinions on our
audit services and hope you
provide feedback.
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     Thank You!


•   We thank Port officials and staff for timely communications throughout
the audit process.
•   In particular, we would like to thank Debbi Browning, Rudy Caluza, Glenn
Fernandes and Melanie O’Cain for keeping the audit running smoothly,
following-up on our requests, and meeting each week to discuss our
preliminary results.
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     Working Together to
Improve Government
Local Government Support Team
•  BARS & Annual Online Filing
•  Accounting and Reporting Training
•  Client portal, including helpdesk

The Center for Government Innovation
•  Process improvement facilitations
•  Resources, tools and best practices
•  Financial Intelligence Tool (FIT)
•  Center@sao.wa.gov
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       Contact Joe Simmons, Program Manager,
Joseph.Simmons@sao.wa.gov
(206) 615-0557
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