O f f i c e o f t h e W a s h i n g t o n S t a t e A u d i t o r
Accountability Audit
Exit Conference
Presented to Port of Seattle
Audit Committee
May 7, 2020
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W a s h i n g t o n S t a t e A u d i t o r ’ s O f f i c e
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Mark Rapozo, CPA
Assistant Director of Local Audit
SAO Executive Management
Kelly Collins, CPA
Director of Local Audit
Pat McCarthy
State Auditor
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W a s h i n g t o n S t a t e A u d i t o r ’ s O f f i c e
Audit Scope
▪ Accountability audit for 2018 (see draft report).
Audit Results in Brief
▪ In the areas we examined, the 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.
Audit highlight: We appreciate the Port’s commitment to the
safeguarding of public funds and developing control systems that
ensure compliance with laws and regulations.
Executive Summary
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W a s h i n g t o n S t a t e A u d i t o r ’ s O f f i c e
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Compensation increases for non-represented employees
❑ Management letter and exit recommendation
▪ Status: Resolved
Small and attractive assets
❑ Exit Recommendations
▪ Status: Resolved
Prior Year Follow-up
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Industrial Development Corporation
❑ Reviewed controls over operations and financial statements for
fiscal years 2015-2018
❑ Audit result: no issues
Self-insurance programs
❑ Reviewed controls over claims administration, contracts language,
solvency requirements, and proper approvals from state
❑ Ensured accurate reporting to State (BARS schedule 21)
❑ Audit result: no issues
Accountability Areas Examined
W a s h i n g t o n S t a t e A u d i t o r ’ s O f f i c e
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Bell Harbor Marina- petty cash/change funds
❑ Reviewed controls over the petty cash/change fund safekeeping
procedures
❑ Audit results: no issues
Fire department overtime pay
❑ Reviewed controls over the overtime payroll process at the Fire
department
❑ Reviewed selected overtime payments for compliance with Port
policy and union requirements
❑ Audit results: no issues
Accountability Areas Examined
W a s h i n g t o n S t a t e A u d i t o r ’ s O f f i c e
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Procurement of Professional Service (A&E) contracts
❑ Reviewed controls over the procurement of professional service contracts
❑ Tested 17 contracts for compliance with state law
❑ Audit results: exit recommendation
Electronic Fund Transfers (EFT)
❑ Reviewed controls over the creation of new vendors, modifications of
vendor bank accounts, and payments
❑ Tested 33 additions/modifications of vendor information and payments
❑ Audit results: exit recommendation
Accountability Areas Examined
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Employees used for publics works projects
❑ Reviewed controls over the use of employees for publics works
projects and compliance with state law
❑ Audit results: exit recommendation
Accountability Areas Examined
W a s h i n g t o n S t a t e A u d i t o r ’ s O f f i c e
▪ Audit cost
❑ Total estimated cost: $107,000
▪ Next scheduled audit – September 2020
❑ Accountability for Public Resources
❑ Review of CPA work papers
▪ Report publication
▪ Management Representation Letter
Concluding Remarks
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Audit highlight: we appreciate the collaboration and assistance from
our Audit Liaison. She helped ensure a smooth audit process from
start to finish.
