Accountability Audit Report

Port of Seattle

For the period January 1, 2018 through December 31, 2018

Published (Inserted by OS)

Report No. 1025987

Insurance Building, P.O. Box 40021  Olympia, Washington 98504-0021  (564) 999-0950  Pat.McCarthy@sao.wa.gov

Office of the Washington State Auditor

Pat McCarthy

Thank you for the opportunity to work with you to promote accountability, integrity and openness

in government. The Office of the Washington State Auditor takes seriously our role of providing

state and local governments with assurance and accountability as the independent auditor of public

accounts. In this way, we strive to help government work better, cost less, deliver higher value and

earn greater public trust.

Independent audits provide essential accountability and transparency for Port operations. This

information is valuable to management, the governing body and public stakeholders when

assessing the government’s stewardship of public resources.

Attached is our independent audit report on the Port’s compliance with applicable requirements

and safeguarding of public resources for the areas we examined. We appreciate the opportunity to

TABLE OF CONTENTS

Audit Results ................................................................................................................................... 4

Related Reports ............................................................................................................................... 6

Information about the Port .............................................................................................................. 7

About the State Auditor's Office ..................................................................................................... 8

AUDIT RESULTS

resources.

However, during the audit certain matters came to our attention that are currently under

investigation.

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.

About the audit

This report contains the results of our independent accountability audit of the Port of Seattle from

January 1, 2018 through December 31, 2018.

regulations and its own policies and procedures, and internal controls over such matters. The

procedures performed were based on our assessment of risks in the areas we examined.

Based on our risk assessment for the year ended December 31, 2018, the areas examined were

those representing the highest risk of fraud, loss, abuse, or noncompliance. We examined the

following areas during this audit period:

report is available on our website at http://portal.sao.wa.gov/ReportSearch

Federal grant programs

A firm of certified public accountants evaluated internal controls and tested compliance with the

federal program requirements, as applicable, for the Port’s major federal programs. That firm’s

INFORMATION ABOUT THE PORT

International Airport.

County for four-year terms. The Commission appoints the Executive Director (ED), who oversees

daily operations of the organization. Through resolutions and directives, the Commission sets

The Port is comprised of three operating divisions, namely Aviation, Maritime, and Economic

Development. The Aviation Division manages the Airport. The Maritime Division manages

industrial property connected with maritime businesses, recreational marinas, Fishermen’s

Terminal, cruise, grain and maritime operations. The Economic Development Division focuses

on managing the Port’s industrial and commercial properties including conference and event

centers, encouraging tourism, developing small business opportunities, and providing for

workforce development in the aviation, maritime and construction industries.

For 2018, the Port had total operating revenues of $689.4 million, which represents a 9.1 percent

P.O. Box 1209

Seattle, WA 98111

Contact: Debbi Browning, Assistant Director, General Accounting & Business

Telephone: 206-787-3081

Website: www.portseattle.org

Information current as of report publish date.

Audit history

You can find current and past audit reports for the Port of Seattle

at

http://portal.sao.wa.gov/ReportSearch.

public trust.

In fulfilling our mission to hold state and local governments accountable for the use of public

resources, we also hold ourselves accountable by continually improving our audit quality and

operational efficiency and developing highly engaged and committed employees.

As an elected agency, the State Auditor’s Office has the independence necessary to objectively

perform audits and investigations. Our audits are designed to comply with professional standards

as well as to satisfy the requirements of federal, state, and local laws.

Our audits look at financial information and compliance with state, federal and local laws on the

part of all local governments, including schools, and all state agencies, including institutions of

higher education. In addition, we conduct performance audits of state agencies and local