of Seattle

COMMISSION
AGENDA MEMORANDUM                      Item No.         4a

ACTION ITEM                           Date of Meeting     October 10, 2017

DATE:    October 3, 2017

TO:       Dave Soike, Interim Executive Director

FROM:   Debbi Browning, Assistant Director, General Accounting & Business Technology

SUBJECT:  Claims and Obligations September 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 September 1, 2017 through September 30,
2017 as
follows:

Payment Reference Re fe re nce End
Payment Type               Start Numbe r      Number               Amount
Accounts Pa able Checks               919482              919947        $ 5,515,719.28
Accounts Pa able ACH               002336             002928       $ 44,955,140.80
Accounts Pa able Wire Transfers        014735             014752        $ 8,581,459.38
Pa roll Checks                             187313                187655         $ 406,902.34
Pa roll ACH                         822297             826362       $ 9,231,894.12
Total Payments                                                      $ 68,691,115.92


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

COMMISSION AGENDA Action Item No. 43                                 Page 2 of 3
Meeting Date: September 26, 2017

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 September  2017,  $59  million  in  accounts  payable  payments  were  made to  678
vendors/contractors, comprised of 2,550 vouchers and 7,883  accounting expense transactions.  About 90
percent of the accounts payable payments made in the month fall into the Construction, Employee Benefits,
Environmental Remediation, Payroll Taxes, Contracted Services,  Utility Expenses   and NWSA Construction
,
Costs payment expense categories.  The following chart summarizes the top 15 expense categories by total
spend.
Category              Payment Amount
Construction                  $28,836 884 74
Employee Benefits                $7 897 958 97
$5 460 174 43
Payroll Taxes                     $3 893 795 22







Total Payments                       $68,691,115 92

COMMISSION AGENDA - Action Item No. 4a                                 Page 3 of 3
Meeting Date: September 26, 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.

Mount. ,
Debbi Browning/Port Audi 0



At a meeting of the Port Commission held on September 26, 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

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Port Commission