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of Seattle'

COMMISSION
AGENDA MEMORANDUM                      Item No.         6b

ACTION ITEM                           Date of Meeting     March 12, 2019

DATE:    March 4, 2019

TO:      Steve Metruck, Executive Director

FROM:   Duane Hill, AFR Senior Manager Disbursements

SUBJECT:  Claims and Obligations - February 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 February 1 through February 28, 2019 as
follows:

Payment Reference Start  Payment Reference End
Payment Type                      Number                Number                          Amount
Accounts Payable Checks                        928528                      928969              $ 5,298,725.25
>
Accounts Payable ACH                         15014                      15597             $ 56,583,191.58
; ;
Accounts Payable Wire Transfers                   15054                        15075               $ 6,391,164.83
Payroll Checks                                    192136                       192327               $ 280,225.08
Payroll ACH                                  898086                     902255             $ 10,666,703.99
Total Payments                                                                             $ 79,220,010.73


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 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 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 Executive Director is delegated authority to approve them.
Expenditures are monitored against budgets monthly by management and reported comprehensively to the
Commission quarterly.

COMMISSION AGENDA  Action Item No. 6b                                 Page 2 of 3
Meeting Date: March 12, 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  February  2019,  $68  million  in  accounts  payable  payments  were  made  to  646
vendors/contractors, comprised of 1,875 vouchers and 8,574 accounting expense transactions.  About 93
percent of the accounts payable payments made in the month fall into the Construction, Employee Benefits,
Payroll taxes, Contracted Services, Software, Utility Expenses and Janitorial services categories.  Net payroll
expense for the month of February was $10,946,929.07. The following chart summarizes the top expense
categories by total spend.

Top 15 Payment Category Summary
Category           Payment Amount

Construction  $ 44,349,741.82
Employee Benefits  $ 6,121,173.69
Payroll Taxes  $ 4,163,108.68
Contracted Services  S     3,774,555.28
Software  $ 1,855,879.17
Utility Expenses  $ 1,771,302.78
Janitorial Services  $ 1,437,687.48
Sales Taxes  $ 1,056,073.14
Environmental Remediation $ 580,452.71
Parking Taxes  $ 554,870.38
Maintenance Inventory $ 506,063.58
Computers & Telephone  S$      287,953.46
Membership Dues $ 199,519.65
Room/Space/Land Rental  $ 184,754.73
Banking Fees $ 184,546.93
Other Categories             S     1,245,398.18
Net Payroll                    $ 10,946,929.07
Total Payments              $ 79,220,010.73

\
COMMISSION AGENDA  Action Item No. 6b                                 Page 3 of 3
Meeting Date: March 12, 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.

_ NAY
Debbi Browning/Port Auditor)



At a meeting of the Port Commission held on March 12, 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:

~  FREDo  LEEAry


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Ray SALEGHG


Port Commis ion