Port of Everett Marks 28th Consecutive Year of Clean Financial Audits

EVERETT—The Port of Everett announced that the Washington State Auditor’s Office has presented another clean audit report of Port operations, marking 28 consecutive years of financial audits with no findings.

Port Everett electrifying — Governor Jay Inslee (left) with Port of Everett CEO Lisa Lefeber discussing infrastructure improvements at the Port of Everett during his visit on January 17, 2024. Lynnwood Times | Kienan Briscoe.

“What an accomplishment, to come up clean with every penny and nickel accounted for and no findings for the 28th year in a row,” Port Commission President Glen Bachman said. “I’m proud of the Port team, who continue to push the Port’s economic development initiatives forward in a fiscal responsible and competent manner, allowing us to deliver on our commitment of strengthening and enhancing our local economy. I want to especially thank and recognize our diligent finance team led by CAFO Monique Liard and Finance Director Bob Marion whose leadership was instrumental in reaching this milestone.”

The Office of the Washington State Auditor conducted an audit of the Port of Everett’s financial statements and compliance with federal requirements for the period January 1, 2024, through December 31, 2024. The report, issued on June 30, 2025, by State Auditor Pat McCarthy, provides assurance on the Port’s financial position, operations, and adherence to applicable laws and regulations. The audit was performed in accordance with Government Auditing Standards and the Uniform Guidance (Title 2 U.S. Code of Federal Regulations Part 200).

The scope of the audit focused on review of the Port’s financial statements to obtain reasonable assurance that they are free from material misstatement, as well as accountability in nine primary areas – financial condition, accounts receivable, self-insurance, Open Public Meetings Act compliance, procurement, treasury activities, revenue bond compliance, tracking and monitoring of assets, and the accounts payable process.

Key Audit Results

Financial Statements: The auditors issued an unmodified (clean) opinion, confirming that the basic financial statements present fairly, in all material respects, the Port’s financial position, changes in financial position, and cash flows as of December 31, 2024, in accordance with U.S. Generally Accepted Accounting Principles (GAAP).
Internal Control over Financial Reporting: No material weaknesses or significant deficiencies were identified in the design or operation of internal controls.
Compliance and Other Matters: No instances of material noncompliance with laws, regulations, contracts, or grant agreements were found.
Federal Awards Compliance (Single Audit): An unmodified opinion was issued on compliance with requirements for the Port’s major federal program. No material weaknesses or significant deficiencies in internal control over major programs were reported, and no findings or questioned costs were disclosed under 2 CFR 200.516(a).
- Major Federal Program: Railroad Rehabilitation and Improvement Financing Program (Assistance Listing Number 20.316), with a Type A program threshold of $750,000. The Port qualified as a low-risk auditee.
Schedule of Expenditures of Federal Awards: Includes a federal loan balance under the Railroad Rehabilitation and Improvement Financing Program, starting at an unspecified amount and ending at $5,599,966 after payments. The schedule is prepared on the same basis as the financial statements, with no de minimis indirect cost rate elected.

Financial Highlights and Notes

Net Position Adjustments: Prior period adjustments were made for understated prepaid insurance ($259,222 increase) and a correction related to GASB 87 lease implementation, resulting in a restated beginning net position for 2024.
Contingencies and Risks: The Port faces environmental remediation obligations at sites like East Waterway, TC Systems, Jeld-Wen, and Mill-A, stemming from historical industrial activities. These are under review with the Washington State Department of Ecology, with uncertain future costs. The Port also self-insures for Paid Family Medical Leave, paying $48,848 in claims during 2024.
Major Customer: One customer in the aerospace industry accounted for 17.9% of operating revenues.
Tax Abatements: Property tax revenues were reduced by $63,949 due to state multi-unit urban housing exemptions under RCW 84.14.020.
Insurance and Assets: Commercial property coverage totals $1,000,000,000 with a $250,000 deductible.
Accounting Changes: The Port implemented GASB Statement No. 100 (Accounting Changes and Error Corrections) in 2024. Upcoming standards (GASB 102, 103, and 104) will be evaluated for implementation in future years.