Audit Committee Minutes of June 11, 2020, submitted for review on September 18, 2020 and proposed for approval on September 24, 2020.
APPROVED MINUTES
AUDIT COMMITTEE SPECIAL MEETING JUNE 11, 2020
The Port of Seattle Commission Audit Committee met in a special meeting Thursday, June 11, 2020. The
meeting was held remotely in accordance with the governor’s ‘Stay at Home’ order and Proclamation 20-28.
Committee members present included Commissioner Calkins, Commissioner Bowman, and Christina
Gehrke. Also present were Glenn Fernandes, Director, Internal Audit; Dan Chase, Internal Audit Manager;
Aaron Pritchard, Commission Issues and Policy Manager; and Lauren Smith, Deputy Commission Clerk.
Call to Order:
The committee special meeting was called to order at 1:02 p.m. by Commissioner Calkins.
External Audit – Moss Adams 2019 Audit Results:
The Committee received a presentation from Ms. Olga Darlington and Ms. Anna Waldren that contained the
following information:
• Results of the yearly Moss Adams audit, which was completed on time despite COVID-19
complications. Port management communicated very well throughout the audit.
• Report regarding Enterprise Fund and Fiduciary Fund, audited both 2018 and 2019 activity.
• Single Audit Reports required by government standards, in which there were no findings.
• Areas of audit emphasis, including internal control environment, management estimates, capital
assets, and revenue recognition.
• Emphasis on bond activity, as there was an increase during 2019.
• Required communications regarding management responsibilities for financial statements, in which
Moss Adams report indicates managers at the Port of Seattle take this very seriously.
• A proposed audit adjustment that was discovered and was not initially corrected, it was corrected in
January of 2020, regarding the reclassification of a completed project from construction to capital
assets. This issue was brought up to Moss Adams by Port management in their own internal robust
review.
• A number of new accounting pronouncements implemented in 2019, which prompted an increase in
scope. Also reviewed the new GASB (Governmental Accounting Standards Board) regulations
coming forward.
• In commitment to the Port’s small business goal, typically partner with one firm to meet this goal, this
year partnered with two firms totally 13% to small business firms.
• Emphasized the flexibility and adaptability of Port staff related to the audit during the COVID-19
Pandemic.
P.O. Box 1209
Seattle, Washington 98111
www.portseattle.org
206.787.3000
PORT COMMISSION AUDIT COMMITTEE MEETING MINUTES Page 2 of 2
THURSDAY, JUNE 11, 2020
Audit Committee Minutes of June 11, 2020, submitted for review on September 18, 2020 and proposed for approval on September 24, 2020.
Updates and Approvals:
The committee received a presentation from Mr. Glenn Fernandes that included the following information:
• Changes to the audit plan resulting from the COVID-19 Pandemic.
• Certain concessionaires are closed due to COVID-19 and unable to get data to the Audit team to
complete some audits scheduled for this year.
• Looking at COVID-19 impacts to Port businesses and resources.
• Evaluating what resources, the audit team can provide during this time, for example the audit
departments previous FEMA work.
• Two concessionaires unable to get information to audit team, as a result, requesting these two limited
contract compliance audits be deferred to next year.
• Two Operational audits requested to be deferred to next year, including Outside Services and North
Terminal Utilities Upgrade which would put an undue burden on staff at this time.
• Wish to add delegation of authority compliance audit, which would involve CPO but spread out the
work relating to this audit to other departments in the organization.
• Defer the parking garage system replacement audit to 2021 as the project of replacing the system
was delayed due to COVID-19.
• Moving up a contingency audit on Malware Defenses, timely as IT controls have become even more
important with the amount of remote work being done.
• Have not made as much progress at this point as in past years due to COVID-19 but starting to ramp
up and expect to have a very full September audit meeting still expect to complete all audits in the
revised plan by the end of the year.
• Reviewed outstanding audit items and reasons for delay.
Without objection, changes to the 2020 audit plan were approved.
Adjournment:
There being no further business, the special meeting was adjourned 1:54 p.m.
Prepared: Attest:
Lauren Smith, Deputy Commission Clerk Ryan Calkins, Audit Committee Chair
Minutes approved: September 24, 2020.
