Ann
of Seattle'

COMMISSION
AGENDA MEMORANDUM                      item No.         6b

ACTION ITEM                           Date of Meeting      June 11, 2019

DATE:     June 3, 2019
TO:       Steve Metruck, Executive Director
FROM:   Duane Hill, AFR Senior Manager Disbursements

SUBJECT:  Claims and Obligations - May 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 May 1 through May 31, 2019 as follows:

Reference Start    Reference End
Payment Type             Number          Number                Amount
Accounts Payable Checks            929872             930370        $         5,872,837.94
Accounts Payable ACH             017196            017970       $       64,786,162.73
Accounts Payable Wire Transfe       015123             015138        $        10,644,273.67
Payroll Checks                       192800              193132        $           383,952.80
Payroll ACH                       910700            916934       $        16,097,515.33
Total Payments                                                  3      97,784,742.47


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 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: June 11, 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  May  2019,  $81  million  in  accounts  payable  payments  were  made  to  746
vendors/contractors, comprised of 2,493 vouchers and 11,384 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,  Utility  Expenses,  T117  Cost  Share  Allocation,  Sales  Taxes,  and
Environmental  Remediation  Expense  categories.   Net  payroll  expense  for  the  month  of  May  was
$16,481,468.13. The following chart summarizes the top expense categories by total spend.

Top 15 Payment Categories Summary
Category           Payment Amount
Construction                  S$    49,663,006.08
Employee Benefits           S    8,652,245.06
Payroll Taxes                  S     6,115,197.20
Contracted Services          S$     5,578,976.06
Utility Expenses               S     2,058,133.50
T117 Cost Share Allocation     $     1,089,844.38
Sales Taxes                    S     1,190,228.40
Environmental Remediation  $    1,059,756.84
Maintenance Inventory       S      810,238.32
Miscellaneous Expense       $      793,405.58
Parking Taxes                 S       550,588.80
Janitorial Services              S$       485,745.04
Employee Travel Expenses           483,724.89                $
Computers & Telephone     S$      331,775.68
Legal                           S       309,641.85
Other Categories Total        S     2,130,766.66
Net Payroll                    $    16,481,468.13
Total Payments              S$   97,784,742.47

COMMISSION AGENDA Action Item No. 6b                               Page 3 of 3
Meeting Date: June 11, 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.

ASee Ne
Debbi Browning/Port Auditor)



At a meeting of the Port Commission held on June 11, 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: