Port :2?"
of Seattle'

COMMISSION
AGENDA MEMORANDUM                      Item No.         4b

ACTION ITEM                           Date of Meeting      June 27, 2017

DATE:    June 9, 2017

TO:       Dave Soike, Interim Executive Director

FROM:   Rudy Caluza, Director, Accounting & Financial Reporting
Debbi Browning, AFR Asst. Director, General Accounting/Business Technology
Duane Hill, AFR Sr. Manager, Disbursements

SUBJECT:  Claims and Obligations May 2017

ACTION REQUESTED

Request Port Commission approval of the Port Auditor's payment of the salaries and claims of the Port
pursuant to RCW 4224180 for payments issued during the period of May 1, 2017, through May 31, 2017, as
follows:

Payment
Payment Reference  Reference End
Payment Type                Start Number       Number               Amount
Accounts Payable Checks               917377              917885         $ 4,874,830.91

Accounts Payable ACH/EFT       000002 / 049451     000312 / 049836     $ 31,410,382.22
Accounts Payable Wire
Transfers                                014640               014680          $ 12,723,62703
Payroll Checks                          185855               186088          $ 270,058.16
Payroll ACH                         805079             808795         $ 8,762,679.13
Total Payments                                                        5   $8,041,577.45


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

COMMISSION AGENDAAction Item No.Page 2 of 3
Meeting Date: June 27, 2017

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.

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  May  2017,  $49  million  in  accounts  payable  payments  were  made  to  over  727
vendors/contractors, comprised of 2,891 vouchers and nearly 9,200 accounting expense transactions.  About
75 percent of the accounts payable payments made in the month fall into the Construction, Employee
Benefits,  Contracted  Services,  Payroll  Taxes,  Leasehold  Taxes,  NWSA Payment,  Utility,  Janitorial  and
Sales/Parking Taxes expense categories.  The following chart summarizes the top 15 expense categories by
total spend.

Category                        Payment Amount
'
Construction                         17,456,782.51
_'
Employee Benefits                       7,095,369.72
Contracted Services                       5,948,397.80
Payroll Taxes                            3,710,437.21
Leasehold Taxes                        3,247,968.96

NWSA                    2,509,352.43
Utility Expenses                           2,119,847.91
Janitorial Services                           1,229,847.49

Sales Taxes                            1,108,254.34
Parking Taxes                           558,015.00
Public Expense                          524,505.99
A/R Related Payments                     463,255.86
Legal                                 325,710.20
Employee Travel Expenses                   293,765.53
Maintanance Inventory                     273,439.01

Other Categories Total                      2,143,890.20
Port Net Payroll                           9,032,737.29

Total Payments :                        $8,041,577.45

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COMMISSION AGENDA- Action Item No.Page 3 of 3
Meeting Date: June 27, 2017

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.

QWHk9\
Debbi Browning/Port Auditor)



At a meeting of the Port Commission held on June 27,2017, it was moved that, pursuant to RCW 42.24.180,
the Port Commission approve the Port Auditor's payme   ef-th  above salaries and claims of the Port:
) TOMALESRO
STEPHANIE BOWMAN

JOHN CREIGHTON

"r   FRED FELLEMAN


Port Commissioners present and voting in
favor of approval