Washington
State Auditor
Brian Sonntag
Director of State
and Local Audit
Chuck Pfeil
(360) 902-0366
Chuck.Pfeil
@sao.wa.gov
Deputy Director
Kelly Collins
(360) 725-5359
Kelly.Collins
@sao.wa.gov
Audit Manager
Carol Ehlinger
(206) 615-0555
ehlingerc
@sao.wa.gov
Audit Supervisor
Tony Martinez
(206) 296-1750
martinea
@sao.wa.gov
Audit Lead
Matt Lanier, CPA
(206) 296-1751
lanierm
@sao.wa.gov
www.sao.wa.gov
Twitter:
@WAStateAuditor
About Our Office
We independently serve the citizens of Washington by promoting accountability,
fiscal integrity, openness in government and the efficient and effective use of
public resources.
Audit
State law requires our Office to examine the financial affairs of all local
governments. We consider several factors as we determine the frequency and
type of audit to conduct. These include assessing the Port’s annual revenues,
federal expenditures, significant issues found in prior audits, bond covenants and
state laws and regulations. We also strive to meet any other audit needs
expressed to us by local governments.
Investigations
We also investigate potential frauds reported to our Office and examine some
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
citizen concerns we will look at based on their seriousness and our available
resources.
Support Services
We provide support services to local governments through technical assistance,
comparative statistics, training, and tools to help prevent and detect a loss of
public funds. Our website offers many resources, including a client HelpDesk that
answers auditing and accounting questions.
Your Audit
Based on preliminary planning and your audit needs, we will perform the following
audit for the fiscal year 2010:
Accountability audit for the fiscal year 2010
Port of Seattle
Entrance Conference
August 2, 2011
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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.
Using a risk-based approach, our audit will evaluate accountability and compliance with state laws
and regulations in the following areas:
Procurement and contracting.
General disbursements.
Payroll.
3
rd
Party management agreements.
Small contractors and suppliers program.
Fisherman’s Terminal.
Safeguarding of assets.
Land sales.
Cash receipting.
SAO Citizen Hotline Concern.
Accountability Audit Report
We expect to issue this report in November 2011 assuming there are no unforeseen delays.
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.
Professional auditing standards define the issues we must report as findings with regard to non-
compliance 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.
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Exit Items
Exit items are less serious audit issues than a finding or management letter. These issues are
informally communicated to you.
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:
Ryan Donnell
Expected Communications
We will communicate any difficulties encountered or significant changes in our planned audit scope
to Debbi Browning, Assistant Director of Accounting & Financial Services. 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.
