Exit 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 the results of your audit and our draft reporting. We value and appreciate
your participation.
Audit Reports
We will publish the following reports:
•
•

Accountability audit for January 1, 2024 through December 31, 2024 - see draft report.
Assessment audit of the Port of Seattle Industrial Development Corporation (IDC) - January 1, 2022
through December 31, 2024 - see draft report.

Audit Highlights
•
•
•

•

We appreciate the Port's commitment to the safeguarding of public funds and developing control
systems that ensure compliance with laws and regulations.
The Port responded promptly to our requests and provided all documents necessary to complete the
audit in a timely manner.
We would like to thank Lisa Lam, Diana Benson, Andrew Cartica, and Glenn Fernandes for
participating in weekly status update meetings. It allowed for increased communication and kept the
audit running smoothly.
We would also like to thank the following Port staff: Danny Blancaflor and Sherry Weiss for their help
with travel cards and purchase cards; Sherie Chipperfield and Robert Duncan for their help with selfinsurance areas; and Rachel Petrich for her help on the IDC assessment audit. Everyone was flexible
when scheduling meetings and general inquiries and made a great effort to keep requests moving.

Recommendations not included in the Audit Reports
Exit Items
We have provided exit recommendations for management's consideration. Exit items address control deficiencies
or noncompliance with laws or regulations that have an insignificant or immaterial effect on the entity, or errors
with an immaterial effect on the financial statements. Exit items are not referenced in the audit report.
Work of Other Auditors
A financial statement and single audit was performed by Baker Tilly (formerly Moss Adams LLP) of the Port.
Professional audit standards require us to evaluate relevant work done by other auditors and communicate certain
matters to the governing body.

•

•
•
•

We performed procedures to ensure we could rely on the work of the external auditors and reference their
audit in our audit report. These procedures included consideration of attendance at key meetings,
evaluation of the firm's last peer review report, review of the other auditor's work, review of the other
auditor's results and communications with the other auditor.
We did not become aware of any instance in which the work of the other auditors gave rise to concern
about the quality of their work.
There were no limitations that restricted our analysis of the other audit(s).
We did not become aware of any instance in which a material misstatement of the financial statements has
or may have resulted from fraud or suspected fraud.

Finalizing Your Audit
Report Publication
Audit reports are published on our website and distributed via email in a .pdf file. We also offer a subscription
service that notifies you by email when audit reports are released or posted to our website. You can sign up for
this convenient service at Sign Up for News & Alerts | Office of the Washington State Auditor.
Management Representation Letter
We have requested representations of management, which we will receive by the report date.
Audit Cost
At the entrance conference, we estimated the cost of the audit to be $141,000 and actual audit costs will
approximate that amount.
Your Next Scheduled Audit
Your next audit is scheduled to be conducted in Fall of 2026 and will cover the following general areas:
•
•

Accountability for public resources
Review of CPA work papers

The estimated cost for the next audit based on current rates is $141,000 plus travel expenses. This preliminary
estimate is provided as a budgeting tool and not a guarantee of final cost.
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 feedback.
Local Government Support Team
This team provides support services to local governments through technical assistance, comparative statistics,
training, and tools to help prevent and detect a loss of public funds. Our website and client portal offers many
resources, including a client Help Desk that answers auditing and accounting questions. Additionally, this team
assists with the online filing of your financial statements.

The Center for Government Innovation
The Center for Government Innovation at the Office of the Washington State Auditor offers services specifically
to help you help the residents you serve at no additional cost to your government. What does this mean? We
provide expert advice in areas like Lean process improvement, peer-to-peer networking, and culture-building to
help local governments find ways to be more efficient, effective and transparent. The Center can help you by
providing assistance in financial management, cybersecurity and more. Check out our best practices and other
resources that help local governments act on accounting standard changes, comply with regulations, and respond
to recommendations in your audit. The Center understands that time is your most precious commodity as a public
servant, and we are here to help you do more with the limited hours you have. If you are interested in learning
how we can help you maximize your effect in government, call us at (564) 999-0818 or email us at
Center@sao.wa.gov.
Questions?
Please contact us with any questions about information in this document or related audit reports.
Tina Watkins, CPA, Director of Local Audit, (360) 260-6411, Tina.Watkins@sao.wa.gov
Wendy Choy, Assistant Director of Local Audit, (425) 502-7067, Wendy.Choy@sao.wa.gov
Joe Simmons, CPA, Program Manager, (206) 613-7628, Joseph.Simmons@sao.wa.gov
Sophia Sullam, Assistant Audit Manager, (206) 613-7629, Sophia.Sullam@sao.wa.gov
Sonia Khokhar, Audit Lead, (206) 613-7639, Sonia.Khokhar@sao.wa.gov

Accountability Audit Report

Port of Seattle
For the period January 1, 2024 through December 31, 2024

Published (Inserted by OS)
Report No. (Inserted by OS)

Scan to see another great way
we're helping advance
#GoodGovernment

Office of the Washington State Auditor
Pat McCarthy
Issue Date - (Inserted by OS)
Board of Commissioners
Port of Seattle
Seattle, Washington

Report on Accountability
Thank you for the opportunity to work with you to promote accountability, integrity and openness
in government. The Office of the Washington State Auditor takes seriously our role of providing
state and local governments with assurance and accountability as the independent auditor of public
accounts. In this way, we strive to help government work better, cost less, deliver higher value and
earn greater public trust.
Independent audits provide essential accountability and transparency for Port operations. This
information is valuable to management, the governing body and public stakeholders when
assessing the government's stewardship of public resources.
Attached is our independent audit report on the Port's compliance with applicable requirements
and safeguarding of public resources for the areas we examined. We appreciate the opportunity to
work with your staff and value your cooperation during the audit.
Sincerely,
Signature Here (Please do not remove this line)
Pat McCarthy, State Auditor
Olympia, WA

Americans with Disabilities
In accordance with the Americans with Disabilities Act, we will make this document available in
alternative formats. For more information, please contact our Office at (564) 999-0950, TDD
Relay at (800) 833-6388, or email our webmaster at webmaster@sao.wa.gov.

Insurance Building, P.O. Box 40021  Olympia, Washington 98504-0021  (564) 999-0950  Pat.McCarthy@sao.wa.gov

TABLE OF CONTENTS
REMINDER: Right click "No table of content entries found" below | click "Update Field" -Do NOT edit the TOC, which will be updated by OS during report processing. If changes are
needed, please use the comment field in the Audit Review Library.
Audit Results................................................................................................................................... 4
Related Reports ............................................................................................................................... 5
Information about the Port .............................................................................................................. 6
About the State Auditor's Office ..................................................................................................... 8

Office of the Washington State Auditor

sao.wa.gov

Page 3

AUDIT RESULTS
Results in brief
This report describes the overall results and conclusions for the areas we examined. In those
selected areas, Port operations complied, in all material respects, with applicable state laws,
regulations, and its own policies, and provided adequate controls over the safeguarding of public
resources.
In keeping with general auditing practices, we do not examine every transaction, activity, policy,
internal control, or area. As a result, no information is provided on the areas that were not
examined.

About the audit
This report contains the results of our independent accountability audit of the Port of Seattle from
January 1, 2024 through December 31, 2024.
Management is responsible for ensuring compliance and adequate safeguarding of public resources
from fraud, loss or abuse. This includes the design, implementation and maintenance of internal
controls relevant to these objectives.
This audit was conducted under the authority of RCW 43.09.260, which requires the Office of the
Washington State Auditor to examine the financial affairs of all local governments. Our audit
involved obtaining evidence about the Port's use of public resources, compliance with state laws
and regulations and its own policies and procedures, and internal controls over such matters. The
procedures performed were based on our assessment of risks in the areas we examined.
Based on our risk assessment for the year ended December 31, 2024, the areas examined were
those representing the highest risk of fraud, loss, abuse, or noncompliance. We examined the
following areas during this audit period:
•

Self-insurance - health and welfare, unemployment, workers compensation and paid
family and medical leave

•

Accounts payable - general disbursements, credit cards, travel expenditures

•

Payroll - compliance with pay equity policy for non-represented employees

•

Open public meetings - compliance with minutes, meetings and executive session
requirements

•

Financial condition - reviewing for indications of financial distress

Office of the Washington State Auditor

sao.wa.gov

Page 4

RELATED REPORTS
Financial
A financial statement audit was performed by a firm of certified public accountants. That firm's
report is available on our website, https://portal.sao.wa.gov//ReportSearch.

Federal grant programs
A firm of certified public accountants evaluated internal controls and tested compliance with the
federal program requirements, as applicable, for the Port's major federal program. That firm's
report is available on our website, https://portal.sao.wa.gov//ReportSearch.

Office of the Washington State Auditor

sao.wa.gov

Page 5

INFORMATION ABOUT THE PORT
The Port is a municipal corporation of the State of Washington (the State), organized on September
5, 1911, under the State statute RCW 53.04.010 et seq. In 1942, the local governments in King
County, Washington (the County) selected the Port to build and operate Seattle-Tacoma
International Airport (SEA).
Port policies are established by a five-member Commission elected at-large by the voters of the
County for four-year terms. The Commission appoints the Executive Director (ED), who oversees
the daily operations of the organization. Through resolutions and directives, the Commission sets
policy for the Port. These policies are then implemented by the ED and his executive staff.
The Port comprises three operating divisions: Aviation, Maritime, and Economic Development.
The Aviation Division manages SEA. The Maritime Division manages industrial property
connected with maritime business, recreational marinas, Fishermen's Terminal, cruise, grain, and
maritime operations. Following a strategic reorganization in 2025, the Maritime Division absorbed
most of the businesses and capital projects formerly housed in the Economic Development
Division, including managing the Port's industrial and commercial properties as well as conference
and event centers. This realignment strengthens the integration of asset management and economic
initiatives within maritime operations. The Economic Development Division continues to focus
on real estate development and planning, encouraging tourism, fostering small business
opportunities in the aviation, maritime, and construction industries, and managing economic
development programs.
For 2024, the Port had total operating revenues of $1 billion, which represents a seven percent
increase from 2023. Total operating expenses increased from $555.1 million in 2023 to $652.6
million in 2024. The Port's net operating income before depreciation decreased by $33.3 million
from 2023 to 2024.

Contact information related to this report
Contact:
Telephone:
Website:

Lisa Lam, Director of Accounting and Financial Reporting
(206) 787-4334
www.portseattle.org

Information current as of report publish date.

Office of the Washington State Auditor

sao.wa.gov

Page 6

Audit history
You can find current and past
https://portal.sao.wa.gov//ReportSearch.

audit

reports

Office of the Washington State Auditor

sao.wa.gov

for

the

Port

of

Seattle

at

Page 7

ABOUT THE STATE AUDITOR'S OFFICE
The State Auditor's Office is established in the Washington State Constitution and is part of the
executive branch of state government. The State Auditor is elected by the people of Washington
and serves four-year terms.
We work with state agencies, local governments and the public to achieve our vision of increasing
trust in government by helping governments work better and deliver higher value.
In fulfilling our mission to provide citizens with independent and transparent examinations of how
state and local governments use public funds, we hold ourselves to those same standards by
continually improving our audit quality and operational efficiency, and by developing highly
engaged and committed employees.
As an agency, the State Auditor's Office has the independence necessary to objectively perform
audits, attestation engagements and investigations. Our work is designed to comply with
professional standards as well as to satisfy the requirements of federal, state and local laws. The
Office also has an extensive quality control program and undergoes regular external peer review
to ensure our work meets the highest possible standards of accuracy, objectivity and clarity.
Our audits look at financial information and compliance with federal, state and local laws for all
local governments, including schools, and all state agencies, including institutions of higher
education. In addition, we conduct performance audits and cybersecurity audits of state agencies
and local governments, as well as state whistleblower, fraud and citizen hotline investigations.
The results of our work are available to everyone through the more than 2,000 reports we publish
each year on our website, www.sao.wa.gov. Additionally, we share regular news and other
information via an email subscription service and social media channels.
We take our role as partners in accountability seriously. The Office provides training and technical
assistance to governments both directly and through partnerships with other governmental support
organizations.

Stay connected at sao.wa.gov
•
•
•
•
•
•

Other ways to stay in touch

Find your audit team
Request public records
Search BARS Manuals (GAAP and
cash), and find reporting templates
Learn about our training workshops
and on-demand videos
Discover which governments serve you
- enter an address on our map
Explore public financial data
with the Financial Intelligence Tool

Office of the Washington State Auditor

sao.wa.gov

•

Main telephone:
(564) 999-0950

•

Toll-free Citizen Hotline:
(866) 902-3900

•

Email:
webmaster@sao.wa.gov

Page 8

Assessment Audit Report

Port of Seattle Industrial
Development Corporation
For the period January 1, 2022 through December 31, 2024

Published (Inserted by OS)
Report No. (Inserted by OS)

Scan to see another great way
we're helping advance
#GoodGovernment

Office of the Washington State Auditor
Pat McCarthy
Issue Date - (Inserted by OS)
Board of Commissioners
Port of Seattle Industrial Development Corporation
Seattle, Washington

Report on Assessment Audit
Thank you for the opportunity to work with you to promote accountability, integrity and openness
in government. The Office of the Washington State Auditor takes seriously our role of providing
state and local governments with assurance and accountability as the independent auditor of public
accounts. In this way, we strive to help government work better, cost less, deliver higher value and
earn greater public trust.
The attached report describes the procedures performed and conclusions for the areas we reviewed.
We appreciate the opportunity to work with your staff, and value your cooperation during the
assessment audit.
Sincerely,
Signature Here (Please do not remove this line)
Pat McCarthy, State Auditor
Olympia, WA

Americans with Disabilities
In accordance with the Americans with Disabilities Act, we will make this document available in
alternative formats. For more information, please contact our Office at (564) 999-0950, TDD
Relay at (800) 833-6388, or email our webmaster at webmaster@sao.wa.gov.

Insurance Building, P.O. Box 40021  Olympia, Washington 98504-0021  (564) 999-0950  Pat.McCarthy@sao.wa.gov

AUDIT SUMMARY
Results in brief
Based on the procedures performed, nothing came to our attention in the areas we reviewed that
caused us to believe the Corporation was not in substantial compliance with applicable state laws,
regulations, and its own policies, or had not provided adequate controls over the safeguarding of
public resources. Had we performed additional procedures, other matters might have come to our
attention that would have been reported.

About the assessment audit
This report contains the results of our independent audit of the Port of Seattle Industrial
Development Corporation from January 1, 2022 through December 31, 2024.
Management is responsible for ensuring compliance and adequate safeguarding of public resources
from fraud, loss or abuse. This includes the design, implementation and maintenance of internal
controls relevant to these objectives. State law (RCW 43.09.230) also requires local governments
to prepare and submit certified annual reports to our Office summarizing such things as revenues
received, collections made, amounts receivable or payable, expenditures made, and debt owed.
This assessment audit was conducted under the authority of RCW 43.09.260, which requires the
Office of the Washington State Auditor to examine the financial affairs of all local governments
at least once every three years. Assessment audits are risk-based, limited-scope reviews of small
local governments, generally defined as local governments with less than $300,000 in annual
revenues. To help minimize audit costs, our work for this engagement was conducted off-site
primarily using financial and other information provided by the Corporation.
This assessment audit was limited to the following:
•

Reviewing meeting minutes for compliance with the Open Public Meetings Act

•

Inquiring as to internal controls over assets, revenues, and disbursements

•

Verifying that annual reports submitted to our Office were complete and filed timely in
compliance with state law

•

Reviewing the Corporation's annual revenues and expenditures for unusual transactions or
trends

•

Corroborating financial information reported by the Corporation by comparing reported
revenues, expenditures, and cash and investment balances to third-party sources

•

Reviewing expenditures for indications of unusual activities, excessive Board of
Commissioners compensation, conflicts of interest, or procurement requirements

•

Evaluating the Corporation's financial information for indications of financial distress

Office of the Washington State Auditor

sao.wa.gov

Page 3

INFORMATION ABOUT THE CORPORATION
The Industrial Development Corporation of the Port of Seattle was created in 1982 by the Port of
Seattle's Board of Commissioners to issue tax-exempt, nonrecourse revenue bonds to finance
industrial development within Port boundaries.
The Corporation is governed by the five Port of Seattle Commissioners. The Corporation loans the
proceeds of the bonds to private companies. It collects fees from these companies for administering
the debt service and periodic refunding of the debt. The Port administers these activities on behalf
of the Corporation. All Corporation records are located at the Port's offices. The Corporation pays
a fee to the Port for the services it provides.

Contact information related to this report
Contact:
Telephone:
Website:

Lisa Lam, Director of Accounting and Financial Reporting
(206) 787-4334
www.portofseattle.org

Information current as of report publish date.

Audit history
You can find current and past audit reports for the Port of Seattle Industrial Development
Corporation at https://portal.sao.wa.gov//ReportSearch.

Office of the Washington State Auditor

sao.wa.gov

Page 4

ABOUT THE STATE AUDITOR'S OFFICE
The State Auditor's Office is established in the Washington State Constitution and is part of the
executive branch of state government. The State Auditor is elected by the people of Washington
and serves four-year terms.
We work with state agencies, local governments and the public to achieve our vision of increasing
trust in government by helping governments work better and deliver higher value.
In fulfilling our mission to provide citizens with independent and transparent examinations of how
state and local governments use public funds, we hold ourselves to those same standards by
continually improving our audit quality and operational efficiency, and by developing highly
engaged and committed employees.
As an agency, the State Auditor's Office has the independence necessary to objectively perform
audits, attestation engagements and investigations. Our work is designed to comply with
professional standards as well as to satisfy the requirements of federal, state and local laws. The
Office also has an extensive quality control program and undergoes regular external peer review
to ensure our work meets the highest possible standards of accuracy, objectivity and clarity.
Our audits look at financial information and compliance with federal, state and local laws for all
local governments, including schools, and all state agencies, including institutions of higher
education. In addition, we conduct performance audits and cybersecurity audits of state agencies
and local governments, as well as state whistleblower, fraud and citizen hotline investigations.
The results of our work are available to everyone through the more than 2,000 reports we publish
each year on our website, www.sao.wa.gov. Additionally, we share regular news and other
information via an email subscription service and social media channels.
We take our role as partners in accountability seriously. The Office provides training and technical
assistance to governments both directly and through partnerships with other governmental support
organizations.

Stay connected at sao.wa.gov
•
•
•
•
•
•

Other ways to stay in touch

Find your audit team
Request public records
Search BARS Manuals (GAAP and
cash), and find reporting templates
Learn about our training workshops
and on-demand videos
Discover which governments serve you
- enter an address on our map
Explore public financial data
with the Financial Intelligence Tool

Office of the Washington State Auditor

sao.wa.gov

•

Main telephone:
(564) 999-0950

•

Toll-free Citizen Hotline:
(866) 902-3900

•

Email:
webmaster@sao.wa.gov

Page 5