Entrance Conference
Port of Seattle
Joseph Simmons
Program Manager
Maddie Frost-Shaffer
Audit Supervisor
Sonia Khokhar
Audit Lead
September 19, 2024
1
1
Audits that Matter
Accountability
Financial
Federal
Performance Audits
Cybersecurity Audits
Fraud/ Whistleblower
Investigations
Unauditable
Governments
Citizen Hotlines
Other Engagements
Pat McCarthy
State Auditor
2,724 audits conducted
(July 1, 2023 - June 30, 2024)
2
Accountability Audit
January 1, 2023 through December 31, 2023
We will examine the management, use and
safeguarding of public resources to ensure there is
protection from misuse and misappropriation. In
addition, we will evaluate whether there is reasonable
assurance for adherence to applicable state laws,
regulations and policies and procedures.
We will use a risk-based audit approach for the Port
and will share the specific areas we plan to evaluate
after we complete our planning procedures.
3
Work of Other Auditors
• A financial statement audit and federal single audit was
performed by Moss Adams of the Port.
• We will review their work and determine if anything causes
concern about its quality.
• We will remain alert and report to you on whether any
limitations restricted our analysis of the other audit.
• We will notify you if we notice any instance in which a material
misstatement of the financial statements has or may have
resulted from fraud or suspected fraud
4
Pre-Audit
Meeting
Exit
Conference
Engagement
Letter
Staying
Connected
Mgmt. Rep.
Letter
Risk
Assessments
Weekly
Status
Meetings
5
Levels of Reporting
Findings
Management
letters
Exit items
6
Important Information
Confidential
Information
Audit Costs
Audit
Dispute
Process
Loss
Reporting
7
Reporting Cybersecurity
Issues
Reporting to the
Attorney
General's Office
(AGO)
• Reporting required for single security incidents
affecting >500 Washington residents
• Find out more about reporting requirements
and how to report at www.atg.wa.gov/databreach-notifications
Reporting to the
State Auditor's
Office (SAO)
• Reporting may be required for cyber-security
events involving financial records or finances,
regardless of number of affected parties.
• To learn more, please visit
https://sao.wa.gov/has-your-governmentexperienced-a-cybersecurity-issue-here-iswhen-and-how-to-report/
8
Peer Reviews of Washington
State Auditor's Office
"Who audits the State Auditor?"
• To ensure our audits satisfy government auditing standards, our Office
receives external peer reviews every three years by the National State
Auditors Association (NSAA)
• Most recent peer review results are available online at
www.sao.wa.gov/about-sao/who-audits-the-auditor/
• Rating received: "Pass", the highest level of assurance that an external
review team can provide
9
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
• Free tools, resources and services to
help you solve problems and improve
operations.
10
SAO's Center for Government
Innovation offers:
• Cyber checkups to assess your government's
vulnerability to common cybersecurity
threats
• Customized Lean facilitations & trainings to
help you improve how work gets done
• Teambuilding workshops to help you
strengthen your team, increase trust, and
promote workplace harmony
• Financial Intelligence Tool (FIT) data to help
you monitor your government's financial
health
Contact the Center today! 564-999-0818
[email protected]
www.sao.wa.gov/
11
Fraud-prevention resource for
elected officials and appointed
board members
The guide is organized into three
sections:
New
Resource
• Preventing fraud: Includes tips to
consider when establishing a fraud
policy and assessing your risk
• Detecting fraud: Offers tips for
improving your fraud-detection
abilities, including a list of three
review strategies
• Responding to fraud: Provides
guidance on developing a fraud
response plan, communicating to
the media and public, and reporting
known and suspected losses to SAO
12
Emerging Issues Affecting
Local Governments:
Audit Connection (May 2024)
includes articles designed to keep
you up to date. Topics include:
• Best practices for credit card
programs
• Bank statement review is a top
fraud-fighting tool. How to do it?
• Cybersecurity services we offer
• New OPMA materials and more
13
Questions?
Contact Joseph Simmons, Program Manager,
[email protected]
(206) 613-7628
14
14