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of Seattle'

COMMISSION
AGENDA MEMORANDUM                      Item No.         6b

ACTION ITEM                           Date of Meeting    February 26, 2019

DATE:    February 4, 2019

TO:      Steve Metruck, Executive Director

FROM:   Duane Hill, AFR Senior Manager Disbursements

SUBJECT:  Claims and Obligations January 2019

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 January 1 through January 31, 2019 as
follows:

Payment Reference Start  Payment Reference End
Payment Type                      Number                Number                          Amount
Accounts Payable Checks                        927867                      928527              $ 6,063,871.83
Accounts Payable ACH                        014094                     015013             $ 85,685,211.74
Accounts Payable Wire Transfers                  015031                       015053              $ 12,086,898.69
Payroll Checks                                    191868                        192136               $ 278,010.51
Payroll ACH                                  893958                     898085             $ 10,913,265.70
Total Payments                                                                              $ 115,027,258.47


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 Executive Director 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 greaterlevel of detail. The Port's operating and capital budgetis
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 Executive Director 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. 6b                                  Page 2 of 3
Meeting Date: February 26, 2019

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  January  2019,  $104  million  in  accounts  payable  payments  were  made  to  956
vendors/contractors, comprised of 3,079 vouchers and 23,939 accounting expense transactions.  About 91
percent of the accounts payable payments made in the month fall into the Construction, Employee Benefits,
Contracted Services, Payroll Taxes, Leasehold Taxes, Utility Expenses and Janitorial services categories.  Net
payroll expense for the month of January was $11,191,276.21. The following chart summarizes the top
expense categories by total spend.

Top 15 Payment Category Summary
Category           Payment Amount

Construction               65,428,289.13
Employee Benefits             9,803,583.36
Contracted Services             6,497,367.78
Payroll Taxes                 4,156,116.64
Leasehold Taxes              3,965,767.61
Utility Expenses                2,380,911.64
Janitorial Services               1,866,916.79
Sales Taxes                 1,300,459.91
Maintenance Inventory            965,098.96
A/R Related Payments            885,249.59
Bond Fees                  761,119.50
Environmental Remediation          734,548.47
Parking Taxes                  631,690.36
Software                   631,357.58
Miscellaneous Expense            451,293.86
Other Categories             S     3,376,211.08
Net Payroll                    $ 11,191,276.21
Total Payments              $ 115,027,258.47

'

COMMISSION AGENDA  Action Item No. 6b                                 Page 3 of 3
Meeting Date: February 26, 2019



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.
Sea
Debbi Browning/Port Auditec)



At a meeting of the Port Commission held on February 26, 2019 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:

RYAN CALLING

BeneBARRE Boyarney

Emmere oem   mre.
, ny.
, FRI Fenmi

COURTNEY GREGOIRE
PETER STEAnN2AY