Port of Seattle
Discussion with the Audit Committee
2023 AUDIT ENTRANCE
December 14, 2023
Presented by:
Olga A. Darlington, Anna Waldren, Conor McCauley
1. Moss Adams Service Team
2. Scope of Services
3. Responsibilities (Auditor and Management)
4. Audit Process
5. Consideration of Fraud
6. Areas of Audit Emphasis
7. Audit Timeline
8. Recent and Upcoming Accounting Developments
Agenda
Your Service Team
Olga Darlington
Audit Engagement
Partner
Olga.Darlington@
mossadams.com
Ashley Osten
Concurring Reviewer
Ashley.Osten@
mossadams.com
Kim Koch
IT Partner
Kim.Koch@
mossadams.com
Anna Waldren
Audit Senior
Manager
Anna.Waldren@
mossadams.com
Connor McCauley
Audit Manager
Connor.McCauley@
mossadams.com
Jose Rios-Sanchez
IT Manager
Jose.Rios-sanchez@
mossadams.com
Click icon to
add headshot
3
Scope of Services
➢ Audit and report on financial statements for the Port’s Enterprise Fund and Fiduciary Fund,
comprised of the Warehousemen’s Pension Trust Fund, included in the Port’s Annual
Comprehensive Financial Report;
➢ Communication to Those Charged With Governance and Internal Control Related Matters
Annual Audit
▪ Annual audit and report on the financial statements for
the year ended December 31, 2023;
▪ Audit and report on compliance related to Major
Federal Award Program(s), the Schedule of
Expenditures of Federal Awards and related internal
controls;
▪ Audit and report on the schedule of Passenger Facility
Charge (PFC) program receipts and expenditures,
and related internal controls;
▪ Audit and report on the schedule of net revenues
available for revenue bond debt service;
Limited Procedures
▪ Required Supplementary Information
• Management discussion and analysis
• Pension schedules and related disclosures
• Other Postemployment Benefits (OPEB) schedules
and related disclosures
▪ Agreed Upon Procedures and report to State of
Washington Department of Ecology relating to
Terminal 91 Facility
▪ Agreed Upon Procedures and report to the
Environmental Protection Agency relating to East
Waterway SRI/FS
4
Our Responsibilities
Assess if the financial statements prepared by management with your
oversight are fairly presented, in all material respects, and in accordance with
U.S. GAAP. However, our audit doesn’t relieve you or management of your
responsibilities.
Perform an audit in accordance with:
• Generally accepted auditing standards issued by the AICPA
• Government Auditing Standards issued by the Comptroller General of the
United States
Design the audit to provide reasonable assurance about whether the financial
statements are free of material misstatement.
Consider internal controls over financial reporting and compliance as a basis
for designing effective audit procedures.
Communicate findings that are relevant to your responsibilities in overseeing
the specific matters of the financial reporting process and administering
federal awards.
When applicable, communicate particular matters required by law or
regulation, by agreement with you, or by other requirements applicable to the
engagement.
5
Required Communications to Those Charged with
Governance
6
INTERNAL CONTROL
OVER FINANCIAL
REPORTING AND
SIGNIFICANT
BUSINESS CYCLES –
CASH RECEIPTS,
CASH
DISBURSEMENTS,
PAYROLL, PROJECT
MONITORING &
CONSTRUCTION IN
PROGRESS COST
ADDITIONS
Significant Audit Areas
COMPLIANCE
WITH FEDERAL
LAWS AND
REGULATIONS,
UNIFORM GRANT
GUIDANCE
(SINGLE AUDIT)
REVENUE
RECOGNITION AND
VALUATION OF
RECEIVABLES,
EVALUATION OF
LEASE REVENUE
AND RELATED
RECEIVABLE
BALANCES
EXISTENCE AND
VALUATION OF
CAPITAL ASSETS
AND
CLASSIFICATION OF
CONSTRUCTION IN
PROGRESS
BALANCES
GASB 96
IMPLEMENTATION
OF SBITA
ACCOUNTING
MANAGEMENT
ESTIMATES –
ENVIRONMENTAL
AND LEGAL
RESERVES,
PENSION
ASSUMPTIONS
7
Audit Timeline
2023
SEPTEMBER
Planning
meetings with
management,
Audit planning
and risk
assessment
OCTOBER
Interim testing
of internal
controls
Assessment of
IT environment
and testing of
system internal
controls
DECEMBER
Entrance
meeting with
Audit
Committee
JANUARY
Testing of
GASB 96 SBITA
implementation
and testing for
the periods
2021 – 2023
2024
MARCH/ APRIL
Perform final
audit fieldwork
for the financial
statements,
Single Audit
and PFC
By APRIL 30
Final QC
reviews, and
finalize
auditors’
reports
Presentation of
audit results to
management
MAY
Presentation of
the audit
results to Audit
Committee
MAY/JUNE
Perform AUP
procedures as
required by the
EPA and
Department of
Ecology
8
• GASB Statement No. 94 Public-Private and Public-Public
Partnerships and Availability Payment Arrangements
(effective 2023)
• GASB Statement No. 96 Subscription-Based Information
Technology Arrangements (effective 2023)
• GASB Statement No. 99, Omnibus 2022 (effective 2023)
• GASB Statement No. 100, Accounting Changes and Error
Corrections (effective 2024)
• GASB Statement No. 101, Compensated Absences
(effective 2024)
Recent and Upcoming
Accounting Developments
9
