Port ="
of Seattle'

COMMISSION
AGENDA MEMORANDUM                      Item No.        6b

ACTION ITEM                           Date of Meeting      May 8, 2018

DATE:    May 1, 2018

TO:       Steve Metruck, Executive Director

FROM:   Duane Hill, AFR Senior Manager Disbursements

SUBJECT:  Claims and Obligations April 2018

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 April 1 through April 30, 2018 as follows:

Payment Reference   Payment Reference
Payment Type                 Start Number       End Number            Amount
Accounts Payable Checks                923278              923759        $ 4,950,698.92
Accounts Payable ACH                 007209             007845        $ 65,441,189.92
Accounts Payable Wire Transfers          014868               014889        $ 10,674,589.31
Payroll Checks                            189233               189452        $ 291,387.52
Payroll ACH                           852345              856341        $ 9,885,135.44
Total Payments                                                        $ 91,243,001.11


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 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 on a monthly basis by management and reported
comprehensively to the Commission quarterly.

COMMISSION AGENDA - Action Item No. 6b                                 Page 2 of 3
Meeting Date: May 8, 2018

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 April, $81 million in accounts payable payments were made to 714 vendors/contractors,
comprised of 2,093 vouchers and 9,068 accounting expense transactions.  About 92 percent of the accounts
payable payments made in the month fall into the Construction, Employee Benefits, Contracted Services,
Payroll Taxes,  Leasehold Taxes, NWSA Construction Costs, Utility Expenses and  Janitorial Services categories.
The following chart summarizes the top 15 expense categories by total spend.

Category         Payment Amount
Construction                    48,779,183.26
Employee Benefits               7,330,662.90
Contracted Services               4,574,239.38
Payroll Taxes                       3,761,616.53
Leasehold Taxes                  3,562,185.60
NWSA Construction Costs         2,607,313.21
Utility Expenses                    2,234,277.89
Janitorial Services                   1,397,859.00
Sales Taxes                          951,554.95
Maintanance Inventory             867,218.60
Parking Taxes                       578,510.81
Bond Fees                        572,850.93
Software                         509,942.70
_A/R Related Payments              411,045.90
Environmental Remediation        333,158.16
Other Categories                 2,594,858.33
Port Net Payroll                   10,176,522.96
Total Payments                 91,243,001.11

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.
Jmukk
Debbi Browning/Port Audiion)

COMMISSION AGENDA Action Item No. 6b                                Page 3 of 3
Meeting Date: May 8, 2018

At a meeting of the Port Commission held on May 8, 2018, 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:

RYAN CALKlNS

COURTNEY GREQOlR'
U
.-

STEPHANEE BOWFFIAH


PETER srsmeauscm
7 Port Commission