Port ame
of Seattle'

COMMISSION
AGENDA MEMORANDUM                      Item No.         6b

ACTION ITEM                           Date of Meeting   September 10, 2019

DATE:    September 3, 2019
TO:       Steve Metruck, Executive Director
FROM:   Duane Hill, AFR Senior Manager Disbursements
SUBJECT:  Claims and Obligations - August 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 August 1 through August 31, 2019 as
follows:

Reference Start    Reference End
Payment Type             Number          Number               Amount
Accounts Payable Checks            931183             931645        $     6,431,771.96
Accounts Payable ACH             019475            020174       $    6251442627
Accounts Payable Wire Transfe       015180             015198        $     8,324,568.18
Payroll Checks                       194004              194262        $       317,254.90
Payroll ACH                      925472            929894       $    11,180,010.41
Total Payments                                                  $  88,768,031.72


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: September 10, 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  August  2019,  $77  million  in  accounts  payable  payments  were  made  to  737
vendors/contractors, comprised of 2,142 vouchers and 9,632 accounting expense transactions.  About 91
percent of the accounts payable payments made in the month fall into the Construction, Employee Benefits,
Contracted Services, Payroll taxes, Environmental Remediation, Utility, Janitorial and Sales Taxes expense
categories. Net payroll expense for the month of August was $11,497,265.31. The following chart summarizes
the top expense categories by total spend.

Top 15 Payment Categories Summary
Category             Payment Amount
Construction               $         45,289,020.70
Employee Benefits         $          8,400,163.26
Contracted Services         $           4,809,237.41
Payroll Taxes                $           4,290,055.51
Environmental Remediation $          2,417,319.78
Utility Expenses             $           2,115,249.76
Janitorial Services            $            1,441,372.80
Sales Taxes                 $           1,348,574.66
Parking Taxes               $            714,633.60
NWSA Construction Costs   $            636,492.16
Maintenance Inventory     $            599,607.26
Bond Fees                 $           598,563.54
Software                  $           555,892.61
Computers & Telephone    $           474,135.53
Employee Travel Expenses  $            322,754.98
Other Categories            $          3,257,692.85
Net Payroll                 I$         11,497,265.31
Total Payments            $         88,768,031.72

COMMISSION AGENDA - Action Item No. 6b                                 Page 3 of3
Meeting Date: September 10, 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.
3sSeien CX
Debbi Browning/Port Auditor)



At a meeting of the Port Commission held on August 13, 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:
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Port Commission