Template revised September 22, 2016. COMMISSION AGENDA MEMORANDUM Item No. 4b A CTION ITEM Date of Meeting May 23 , 2017 DATE: May 5, 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 42.24.180 for payments issued during the period of April 1, 2017 through April 3 0 , 2017 as follows: JUSTIFICATION Pursuant to RCW 42.24.180, “the Port’s legislative body” ( the Commissio n) is required to approve in a p ublic meeting , all payment s of claims within one month of issuance. OVERSIGHT All of these payments have been previously authorized either through direct Commission ac tion or delegation of authority to the CEO and through his or her staff. Detailed information on Port expenditures is provided to the Commission through well as the publicly released even greater level of detail. The Port’s operating and capital budget is approved by r esolution in November for the comi ng fiscal year, and the Commission also approves the Salary and Benefit Resolution around the same time to authorize pay and benefit p rograms. Notwit hst anding 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. 4a Page 2 of 3 Meeting Date: May 23 , 2017 Template revised September 22, 2016. commencement of the project or contract — if they are below the thresholds the CEO is delegated authority to approve them. Expenditures are monit o red against budgets on a monthly basis by management and reported comprehensively to the Commission quarterly. Effec t ive i nternal controls over all Port procurement, contracting and disbursement s are also in place to ensure proper central oversight, delegation of authority, separation of duties, payment approval and documentation, and signed perjury statement c ertifications 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 p ercent of the accounts payable payme nts made in the month fall into the Construction, Employee Benefits, Contract ed Services , Payroll Taxes, Janitorial and NWSA Equity Payment expense categories. The follo win g chart summarizes the top 1 5 expense categories by total spend . COMMISSION AGENDA – Action Item No. 4a Page 3 of 3 Meeting Date: May 23 , 2017 Template revised September 22, 2016. 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 delegat ion of authority. 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: Port Commission