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of Seattle

COMMISSION
AGENDA MEMORANDUM                      Item No.        4b

CORRECTED ACTION ITEM                     Date of Meeting   December 12, 2017

DATE:    December 8, 2017

TO:       Dave Soike, Interim Executive Director

FROM:   Duane Hill, AFR Senior Manager Disbursements

SUBJECT:  Claims and Obligations November 2017

ACTION REQUESTED

Request Port Commission approval of the Port Auditor's payment of the salaries and claims of the Port
pursuant to RCW 42.24.180 for payments issued during the period November 1, 2017 through November 30,
2017 as follows:

Payment Type                       Payment Reference  Payment Reference End  Amount
Start Number        Number
Accounts Payable Checks                920485              921171                  $ 6,485,835.28
Accounts Payable ACH                  003624              004435                  $ 52,322,219.05
Accounts Payable Wire Transfers         014773               014790                   5    7,293,883.27
Payroll Checks                            187935               188286                    $ 267,328.95
Payroll ACH                             830347               834328                   $ 9,324,275.18
Total Payments                                                                   5   75,693,541.73

JUSTIFICATION

Pursuant to RCW 42.24.180, "the Port's legislative body" (the Commission) is required to approve in a public
meeting, all payments of claims within one month of issuance.

OVERSIGHT

All of these payments have been previously authorized either through direct Commission action or delegation
of authority to the CEO and through his or her staff. Detailed information on Port expenditures is provided to
the Commission through comprehensive budget presentations as well as the publicly released Budget
Document, which provides an even greater level of detail. The Port's operating and capital budget is approved
by resolution in November for the coming fiscal year, and the Commission also approves the Salary and
Benefit Resolution around the same time to authorize pay and benefit programs. Notwithstanding the Port's
budget approval, individual capital projects and contracts exceeding certain dollar thresholds are also
subsequently brought before the Commission for specific authorization prior to commencement of the project
or contractif they are below the thresholds the CEO is delegated authority to approve them. Expenditures

are monitored against budgets on a monthly basis by management and reported comprehensively to the
Commission quarterly.

COMMISSION AGENDA - Action Item No. 4b                                 Page 2 of 3
Meeting Date: December 12, 2017

Effective internal controls over all Port procurement, contracting and disbursements are also in place to
ensure proper central oversight, delegation of authority, separation of duties, payment approval and
documentation, and signed perjury statement certifications for all payments. Port disbursements are also
regularly monitored against spending authorizations. All payment transactions and internal controls are
subject to periodic Port internal audits and annual external audits conducted by both the State Auditor's
Office and the Port's independent auditors.

For  the  month  of November  2017,  $66  million  in  accounts  payable  payments  were  made to  939
vendors/contractors, comprised of 3,305 vouchers and 11,977 accounting expense transactions.  About 86
percent of the accounts payable payments made in the month fall into the Construction, Employee Benefits,
Contracted Services, Environmental Remediation, Payroll Taxes, Utility Expenses and NWSA Construction
expense categories. The following chart summarizes the top 15 expense categories by total spend.

Construction                    $ 31,064,593.74
Employee Benefits              5  8,221,716.19
Contracted Services             5  5,853,756.91
Environmental Remediation     $ 4,290,148.69
Payroll Taxes                     $ 3,872,586.42
Utility Expenses                  $ 2,042,878.76
NWSA Construction Costs       5  1,741,986.08
Election Expenses               $ 1,609,498.62

Janitorial Services                 5   1,273,375.30
Sales Taxes                      $ 1,183,780.32

Software                      S    600,776.94
A/R Related Payments          $ 593,522.08
Parking Taxes                   $ 540,327.00
Maintenance Inventory         $ 369,438.96

Miscellaneous Expense          $ 350,256.73
Other Expense Categories        $ 2,493,294.86

Port Net Payroll                   S  9,591,604.13
Total   S 75,693,541.73


Appropriate and effective internal controls are in place to ensure that the above obligations were processed in
accordance with Port of Seattle procurement/payment policies and delegation of authority.

COMMISSION AGENDA- Action Item No. 4b                                Page 3 of 3
Meeting Date: December 12, 2017

WuMA
Debbi Browning/Port Audited



At a meeting of the Port Commission held on December 12, 2017, it is hereby moved that, pursuant to RCW
42.24.180, the Port Commission approves the Port Auditor's payment of the above salaries and claims of the
Port:


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