Port:
of Seattle

COMMISSION
AGENDA MEMORANDUM                      Item No.         43

ACTION ITEM                           Date of Meeting      March 28, 2017

DATE:    March 10, 2017

TO:       Dave Soike, Interim Chief Executive Officer

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 February 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 February 1, 2017
through February 28, 2017 as follows:

Payment Reference   Payment Reference
Payment Type                 Start Number        End Number              Amount

Accounts Payable Checks                915882               916289             $4,608,265.46

Accounts Payable ACH                  047482               048020            $19,252,128.77

Accounts Payable Wire Transfers         014531                014567             $7,217,720.12
Payroll Checks                           185123                185325                $268,017.05
Payroll ACH                             794276                797814              $8,378,735.41
[ Total Payments                                                                 $39,724,866.81
_

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.

COMMISSION AGENDA - Action Item No. 4a                                  Page 2 of 3
Meeting Date: March 28, 2017

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.

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 February 2017, over $31 million in accounts payable payments were made to
nearly 1,000 vendors/contractors, comprised of 2,100 invoices and over 7,000 accounting
expense transactions. About 80 percent ofthe accounts payable payments made in the month
fall into the Construction, Employee Benefits, Contracted Services and Utility expense
categories. The following chart summarizes the top 16 expense categories by total spend.

Expense Type                                            Payments
Construction Total                                              5 12,979,720.92
Employee Benefits Total                                       $ 7,562,633.38
Contracted Services Total                                       5  2,638,047.58
Utility Expense Total                                              $ 1,896,668.29
Sales Taxes Total                                                 $ 925,038.80
Payroll Taxes Total                                                S     876,902.42
Software Total                                                S    678,937.80

Maintenance Inventory Total                                  $ 572,757.29
Parking Taxes Total                                              $ 321,961.20
P-card Charges Total                                           $ 270,695.53

Environmental Remediation Total                             $ 243,782.04
Membership Dues & Fees Total                              $ 231,180.32

COMMISSION AGENDA Action Item No. 43                                 Page 3 of 3
Meeting Date: March 28, 2017

Banking Fees Total                                                   185,235.19
Room/Space/Land Rental Total                                    171,666.08
Maintenance Materials Total                                        162,442.93
Computers & Telephone Total                                     158,631.71
(aggregate total  expense categories below the top 16)             1,201,812.87
Port Net Payroll                                                      8,646,752.46
Total Payments                                            mmmmmmm
39,724,866.81

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.
JWHMA
Debbi Browning/Port Audited



At a meeting of the Port Commission held on March 28, 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:

TOE? ALBRO

STEPHAME G'gs'l

COURTNEY GREGG

FEE'D FELLEMAN

JOE-i." CHEEGHT)
C'l
Port Commission