Entrance Conference Port of Seattle Joseph Simmons Program Manager Sophia Sullam Audit Supervisor Sonia Khokhar Audit Lead September 16, 2025 Disclaimer: This presentation is intended to be viewed in conjunction with the complete packet of entrance materials provided. A copy of those materials may be requested by contacting the presenters listed or by emailing PublicRecords@sao.wa.gov. 1 Audits that Matter Accountability Financial Federal Performance Audits Cybersecurity Audits Fraud/ Whistleblower Investigations Unauditable Governments Citizen Hotlines Other Engagements Pat McCarthy State Auditor 2,724 audits conducted (July 1, 2023 - June 30, 2024) 2 2 Accountability Audit January 1, 2024 through December 31, 2024 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 use a risk-based audit approach for the Port and will share the specific areas we plan to evaluate after we complete our planning procedures. 3 3 Related Audit Work Attestation - Port of Seattle Industrial Development Corporation • January 1, 2022 through December 31, 2024 • Planned procedures: Compliance with state law for IDCs Review of Independent CPA firm Audit • January 1, 2024 through December 31, 2024 • Audit Type: Financial and Federal 4 4 Work of Other Auditors • A financial statement audit and federal single audit was performed by Moss Adams (now Baker Tilly) of the Port. • We will review their work and determine if anything causes concern about its quality. • We will remain alert and report to you on whether any limitations restricted our analysis of the other audit. • We will notify you if we notice any instance in which a material misstatement of the financial statements has or may have resulted from fraud or suspected fraud. 5 Pre-Audit Meeting Exit Conference Engagement Letter Staying Connected Mgmt. Rep. Letter Risk Assessments Weekly Status Meetings 6 6 Levels of Reporting Findings Management letters Exit items 7 Important Information Confidential Information Audit Costs Audit Dispute Process Loss Reporting 8 Reporting Cybersecurity Issues Reporting to the Attorney General's Office (AGO) • Reporting required for single security incidents affecting >500 Washington residents • Find out more about reporting requirements and how to report at www.atg.wa.gov/databreach-notifications Reporting to the State Auditor's Office (SAO) • Reporting may be required for cyber-security events involving financial records or finances, regardless of number of affected parties. • To learn more, please visit https://sao.wa.gov/has-your-governmentexperienced-a-cybersecurity-issue-here-iswhen-and-how-to-report/ 9 Peer Reviews of Washington State Auditor's Office "Who audits the State Auditor?" • To ensure our audits satisfy government auditing standards, our Office receives external peer reviews every three years by the National State Auditors Association (NSAA) • Most recent peer review results are available online at www.sao.wa.gov/about-sao/who-audits-the-auditor/ • Rating received: "Pass", the highest level of assurance that an external review team can provide 10 Working Together to Improve Government Local Government Support Team • BARS & Annual Online Filing • Accounting and Reporting Training • Client portal, including helpdesk The Center for Government Innovation • Free tools, resources and services to help you solve problems and improve operations. 11 SAO's Center for Government Innovation offers: • Cyber checkups to assess your government's vulnerability to common cybersecurity threats • Customized Lean facilitations & trainings to help you improve how work gets done • Teambuilding workshops to help you strengthen your team, increase trust, and promote workplace harmony • Financial Intelligence Tool (FIT) data to help you monitor your government's financial health Contact the Center today! 564-999-0818 center@sao.wa.gov www.sao.wa.gov/ 12 Questions? Contact Joseph Simmons, Program Manager, Joseph.Simmons@sao.wa.gov (206) 613-7628 13 13 13