Port of Seattle
2025 Audit Planning
Discussion with the Audit Committee

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Agenda
Your Service Team
Scope of Services
Auditor's Responsibility in a Financial Statement Audit
Significant Risks Identified
Audit Timeline
Recent and Upcoming Accounting Developments

2

Your Service Team
Olga Darlington
Audit Engagement
Principal

Ashley Osten
Concurring
Reviewer and
Principal

Abe McClenny
IT Senior Manager

Olga.Darlington
@bakertilly.com

Ashley.Osten
@bakertilly.com

Abe.McClenny
@bakertilly.com

Anna Waldren
Audit Senior
Manager

Connor
McCauley
Audit Senior
Manager

Anna.Waldren
@bakertilly.com

Connor.McCauley
@bakertilly.com

3

Scope of Services
Annual Audit

Limited Procedures

 Annual audit and report on the financial statements
for the year ending December 31, 2025, 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;
 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;
 Communication to Those Charged With Governance
and Internal Control Related Matters.

 Required Supplementary Information

• Management's 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

Auditor's Responsibilities in a Financial Statement
Audit
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

Significant Risks Identified
During the planning of the audit, we have identified the following significant audit risks:
INTERNAL CONTROL
OVER FINANCIAL
REPORTING AND
SIGNIFICANT BUSINESS
CYCLES
CASH RECEIPTS, CASH,
DISBURSEMENTS,
PAYROLL, PROJECT
MONITORING &
CONSTRUCTION IN
PROGRESS COST
ADDITIONS

EXISTENCE AND
VALUATION OF
CAPITAL ASSETS

REVENUE
RECOGNITION

CLASSIFICATION OF
CONSTRUCTION IN
PROGRESS BALANCES

EVALUATION OF LEASE
REVENUE AND
RELATED RECEIVABLE
BALANCES

MANAGEMENT
ESTIMATES
ENVIRONMENTAL
LIABILITY AND LEGAL
RESERVES, PENSION
ASSUMPTIONS

COMPLIANCE WITH
FEDERAL LAWS AND
REGULATIONS,
UNIFORM GRANT
GUIDANCE
(SINGLE AUDIT)

FINANCIAL STYSTEMS IT
CONTROL TESTING

6

Audit Timeline
2025

2026

SEPTEMBER/OCTOBER

DECEMBER

MARCH/APRIL

BY APRIL 30

MAY

Planning meetings
with management

Entrance meeting
with Audit
Committee

Perform final audit
fieldwork for the
financial statements,
Single Audit, and PFC

Final QC reviews, and
finalize auditors'
reports

Presentation of the
audit results to Audit
Committee

Presentation of audit
results to
management

Perform AUP
procedures as
required by the EPA
and Department of
Ecology

Audit planning and
risk assessment
Interim testing of
internal controls
Assessment of IT
environment and
testing of system
internal controls

7

Recent
Accounting
Developments

RECENT AND UPCOM ING ACCOUNTING DEVELOPMENTS

GASB Standards
• GASB Statement No. 102, Certain Risk Disclosures (effective 2025)
• GASB Statement No. 103, Financial Reporting Model Improvements
(effective 2026)
• GASB Statement No. 104, Disclosures of Certain Capital Assets
(effective 2026)

9

THANK
YOU