Port of Seattle Joe Simmons Program Manager Entrance Conference Sophia Sullam Audit Supervisor Sonia Khokhar Audit Lead September 3, 2026 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. 11 About SAO • Established in State Constitution • Led by State Auditor Pat McCarthy • Auditor of all public accounts • Audits more than 160 state agencies and 2,200 local governments • Audits 43 different government types • Staffed by nearly 500 employees Our mission is to promote accountability and transparency in government. State Auditor Pat McCarthy 2 2 Audits that matter Accountability Financial Federal Performance audits Cybersecurity audits Energy compliance audits Citizen hotlines Special investigations Other engagements 2,501 audits conducted (July 1, 2024 - June 30, 2025) 3 Accountability audit January 1, 2025 through December 31, 2025 Using a risk-based audit approach for the Port's accountability audit, 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. After we have completed our planning procedures, we will share with management the specific audit areas we plan to further evaluate. 4 4 Work of other auditors • A financial statement and federal single audit of the Port for the period January 1, 2025, through December 31, 2025 was performed by Baker Tilly. • 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 audits. • 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 Staying connected Pre-audit meeting Engagement letter Exit conference Risk assessment Management rep. letter Entrance conference Weekly status meetings 6 6 Levels of reporting Findings Included in audit report Management letters Referenced in audit report Exit items Communicated to management 7 7 Important information Confidential information Audit costs Audit dispute process Loss reporting 8 FIT provides data and information • Clear picture of your government's overall financial health • Indicators highlight strengths and areas needing attention • Data that helps guide budgeting and planning decisions 9 Who audits the State Auditor? Peer reviews of the Office of the Washington State Auditor Our Office receives external peer reviews every three years by the National State Auditors Association. 2025 rating received: "Pass" - the highest level of assurance that an external review team can provide. "I've done 25 of these and by far, this was the best one I've done." - Scott Owens, Director at the Georgia Department of Audits and Accounts and a peer review leader 10 10 Local Government Support services • BARS Manual annual updates • Online filing system for local government annual reporting requirements • On-time filing is the law - and we can help! Trainings and client support • Accounting and Reporting Training (recorded regularly and live) • Opportunities to learn about the required components of the annual report • Client portal, including HelpDesk 11 SAO's Center for Government Innovation offers free: • Cyber checkups to assess your government's vulnerability to common cybersecurity threats • Resource Library with tools, checklists and other resources that provide you ways to improve internal controls, compliance and other areas • 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 Contact the Center today! 564-999-0818 Center@sao.wa.gov 12 Fraud prevention resource Available in our resource library, SAO's latest fraud prevention resource shows government officials how a 30-minute bank statement review can spot the red flags of fraud. 13 Questions Joe Simmons, CPA, Program Manager Joseph.Simmons@sao.wa.gov (206) 613-7628 14