Entrance Conference: Port of Seattle
The Office of the Washington State Auditor’s vision is increased trust in government. Our mission is to provide
citizens with independent and transparent examinations of how state and local governments use public funds, and
develop strategies that make government more efficient and effective.
The purpose of this meeting is to share our planned audit scope so that we are focused on the areas of highest risk.
We value and appreciate your input.
Audit Scope
Based on our planning, we will perform the following audit:
Accountability audit for January 1, 2021 through December 31, 2021
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 share the specific areas we plan to evaluate after we complete our planning procedures.
Engagement Letter
We have provided an engagement letter that confirms both management and auditor responsibilities, and other
engagement terms and limitations. Additionally the letter identifies the cost of the audit, estimated timeline for
completion and expected communications.
Work of Other Auditors
A financial statement and single audit of the Port was performed by Moss Adams.
In accordance with professional standards, we considered the audit report and audit work performed by the other
auditors in the planning of our audit. This includes communicating with the other auditors, evaluating the quality
and results of the other auditor’s work, and identifying areas that could affect our audit, including those in which
we could leverage the work already performed.
Accountability audits differ in scope from financial statement and single audits. Financial statement audits
determine if amounts reported in the financial statements are fairly stated, while single audits determine
compliance with specific federal grant requirements. In contrast, accountability audits determine compliance with
laws, regulations and the government’s policies in areas selected for testing, as well as determine if public assets
are safeguarded against loss or misuse.
The accountability audit may examine some of the same areas covered in the financial statement and single audit.
However, due to the objective for accountability audits, the audit will approach and test these differently and not
duplicate work already performed.
Levels of Reporting
Findings
Findings formally address issues in an audit report. Findings report significant results of the audit, such as
significant deficiencies and material weaknesses in internal controls; misappropriation; and material abuse or
non-compliance with laws, regulations or policies. You will be given the opportunity to respond to a finding and
this response will be published in the audit report.
Management Letters
Management letters communicate control deficiencies, non-compliance, misappropriation, or abuse that are less
significant than a finding, but still important enough to be formally communicated to the governing body.
Management letters are referenced, but not included, in the audit report.
Exit Items
Exit items address control deficiencies, non-compliance with laws or regulations, or errors that have an
insignificant effect on the audit objectives. These issues are informally communicated to management.
Important 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.
Audit Costs
The cost of the audit is estimated to be approximately $117,160
Expected Communications
During the course of the audit, we will communicate with Don Kelley, Senior Manager of AFR General
Accounting, on the audit status, any significant changes in our planned audit scope or schedule and preliminary
results or recommendations as they are developed.
Please let us know if, during the audit, any events or concerns come to your attention of which we should be
aware. We will expect Don to keep us informed of any such matters.
Audit Dispute Process
Please contact the Audit Manager or Assistant Director to discuss any unresolved disagreements or concerns you
have during the performance of our audit. At the conclusion of the audit, we will summarize the results at the exit
conference. We will also discuss any significant difficulties or disagreements encountered during the audit and
their resolution.
Loss Reporting
Washington state law requires all state agencies and local governments to immediately notify SAO if staff know
or suspect loss of public resources, or of other illegal activity including a cyber-attack if it resulted in a loss of
public resources or potentially impacted financial records or systems. State and local government employees
should alert us to suspected fraud through the online Report a Suspected Fraud or Loss form below. These
notifications can be made on our website at www.sao.wa.gov/report-a-concern/how-to-report-a-concern/fraud-
program/.
Peer Reviews of the Washington State Auditor’s Office
To ensure that our audits satisfy Government Auditing Standards, our Office receives external peer reviews every
three years by the National State Auditors Association (NSAA). The most recent peer review results are available
online at www.sao.wa.gov/about-sao/who-audits-the-auditor/. Our Office received a “pass” rating, which is the
highest level of assurance that an external review team can give on a system of audit quality control.
Emerging Issues
Some of the emerging issues affecting local governments are the following:
• SAO is transitioning to a new data-sharing tool, SecureShare, in September
• SAO has unveiled a new look for its resource library
Working Together to Improve Government
Audit Survey
When your report is released, you will receive an audit survey from us. We value your opinions on our audit
services and hope you provide us feedback.
Local Government Support Team
This team provides support services to local governments through the Budget, Accounting, and Reporting System
(BARS) and annual online filing technical assistance, provides accounting, reporting and BARS training. Our
website and client portal offers many resources, including a client Help Desk that answers auditing and accounting
questions, updated BARS manuals, access to resources and recorded trainings, and additional accounting and
reporting resources. Additionally this team assists with the online filing of your financial statements.
The Center for Government Innovation
The Center for Government Innovation of the Office of the Washington State Auditor offers services designed to
help you, help the residents you serve at no additional cost to your government. What does this mean? They
provide expert advice in areas like building a Lean culture to help local governments find ways to be more
efficient, effective and transparent. The Center also provides financial management technical advice and best
practices and resources. These can be accessed from the “Improving Government” tab of our SAO website and
help you act on accounting standard changes, comply with regulations, protect public resources, minimize your
cybersecurity risk and respond to recommendations in your audit. The Center also offers the Financial Intelligence
Tool, better known as FIT, to help you assess and monitor your finances and compare your financial operations
to other local governments like you. You can email the Center for a personal training session to learn all the
benefits using the FIT tool can provide. The Center understands that time is your most precious commodity as a
public servant, and wants to help you do more with the limited hours you have. If you are interested in learning
how the Center can help you maximize your effect in government, call them at (564) 999-0818 or email them at
Center@sao.wa.gov.
Audit Team Qualifications
Kelly Collins, CPA, Director of Local Audit – Kelly has been with the Washington State Auditor’s Office since
1992. In her role, she oversees the audit teams that perform the audits for over 2,200 local governments. She
serves on the Washington Finance Officers Association Board and is a member of the Washington Society of
Certified Public Accountants’ Government Auditing and Accounting Committee. Phone: (564) 999-0807 or
Kelly.Collins@sao.wa.gov
Wendy Choy, Assistant Director of Local Audit - Wendy has been with the Washington State Auditor’s Office
since 2002. In her role as Assistant Director, she assists with statewide oversight and management of all the audits
for local government. She is also the program manager for public hospital districts. She served as an Audit
Manager for six years prior to becoming an Assistant Director of Local Audit. Phone: (425) 502-7067 or
Wendy.Choy@sao.wa.gov
Joe Simmons, CPA, Program Manager – Joe has been with the State Auditor’s Office since 1987 and became
Audit Manager of Team Central King County in November of 2015. In his prior role as Assistant Audit Manager
on two different teams he worked on audits of state and local governments throughout Pierce, Kitsap, Mason,
Clallam, and Jefferson counties. He has also provided support as one of our Office’s county and city subject
matter specialists and is currently the CPA audit Program Manager. Phone: (206) 613-7628 or
simmonsj@sao.wa.gov
Madeleine “Maddie” Frost-Shaffer, Assistant Audit Manager – Maddie has been with the State Auditor’s
Office since 2013 and became an Assistant Audit Manager on Team Central King County in December 2017. In
her current role, she assists with the management of the Central King County audit team and supervises the
financial, single and accountability work at local governments. She has previously served as the audit lead for
numerous audits of entities with expenditures ranging from roughly $73 thousand to $535 million. Phone: 206-
613-7627 or Madeleine.Frost-Shaffer@sao.wa.gov
Angela Funamori, Audit Lead – Angela has been with the State Auditor’s Office since 2017. Angela has a
Bachelor’s degree in Accounting from Central Washington University. In her role as an Assistant State Auditor,
she has worked on the financial statement, federal grant compliance, and accountability audits. Phone: (206)
613-7633 or Angela.Funamori@sao.wa.gov
Sonia Khokhar, Assistant State Auditor – Sonia has been with the State Auditor’s Office since 2020. Sonia
graduated from Eastern Washington University with a degree in Accounting and Finance. In her role as an
Assistant State Auditor, Sonia has reviewed controls and compliance with federal requirements. Phone: (206)
613-7639 or Sonia.Khokhar@sao.wa.gov
Gladys Matson, Assistant State Auditor – Gladys graduated from California State University with a degree in
Accounting. She has been with the Washington State Auditor’s Office for about a month and a half. She has
prior experience with a Big 4 accounting firm and private companies. Phone: (206) 613-7644 or
Gladys.matson@sao.wa.gov
Octavian Tofoleanu, Assistant State Auditor – Octavian graduated from Seattle University with a degree in
Business Economics. He’s been with the Washington State Auditor’s Office since June 2022. In his role as an
