Port=
of Seattle'

COMMISSION
AGENDA MEMORANDUM                      Item No.         4b

ACTION ITEM                           Date of Meeting       May 23, 2017

DATE:    May S, 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 April 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 April  1, 2017
through April 30, 2017 as follows:

Payment Reference   Payment Reference
Payment Type                 Start Number       End Number            Amount
Accounts Payable Checks                916861              917376        $ 8,056,432.92
Accounts Payable ACH                  048734             049450        $ 25,373,81105
Accounts Payable Wire Transfers          014609               014639        $ 7,714,639.26
Payroll Checks                            185596               185853        $ 274,493.87
Payroll ACH                           801422              805078        $ 8,756,694.69
Total Payments                                                        $ $0,176,071.79

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

COMMISSION AGENDA - Action Item No. 43                                  Page 2 of 3
Meeting Date: May 23, 2017

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 April 2017, $41 million in accounts payable payments were made to over 798
vendors/contractors, comprised of 2,540 vouchers and nearly 10,000 accounting expense
transactions. About 80 percent of the accounts payable payments made in the month fall into
the Construction, Employee Benefits, Contracted Services, Payroll Taxes, Janitorial and NWSA
Equity Payment expense categories. The following chart summarizes the top 15 expense
categories by total spend.

Expense Type                                         Payments
Construction Total                                        S  13,369,360.83
Employee Benefits Total                                 S   5,652,536.74
Contracted Services Total                                 S   4,487,096.42
Payroll Taxes Total                                          S   3,671,374.45
Janitorial Total                                                 S   2,523,130.31
NWSA Equity Payment Total                           S   2,203,413.91
Utility Expense Total                                        S   1,477,742.23
Environmental Remediation Total                       S     958,947.37
Sales Taxes Total                                           S     929,105.09
Right of Way                                            5     751,455.50
Bond Fees Total                                         S     588,809.75
Parking Taxes Total                                        S     570,398.81
Surface Water Utility Total                                  S     408,749.27
Legal Total                                                   S     366,181.93
P-card Charges Total                                      S     354,178.70
(aggregate total - expense catergories below the top 15)  S   2,832,401.92
Port Net Payroll                                            S   9,031,188.56

Total Payments                                       S  $0,176,071.79

COMMISSION AGENDA - Action Item No. 4a                                  Page 3 of 3
Meeting Date: May 23, 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.
Jmuka
Debbi Browning/Port Audiiod



At a meeting of the Port Commission held on May 23, 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:

FRED FELLEMAN

STEF'AREEE BSEHFTIAB

COURTNEY GREGGERE

TOM ALBRO

JOHN CREIGHTQN
Port Commission