Port_
of Seattle

COMMISSION
AGENDA MEMORANDUM                      Item No.        6b

ACTION ITEM                           Date of Meeting      July 10, 2018

DATE:    July 2, 2018

TO:       Steve Metruck, Executive Director

FROM:   Duane Hill, AFR Senior Manager Disbursements

SUBJECT:  Claims and Obligations June 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 June 1 through June 30, 2018 as follows:

Payment Reference   Payment Reference
Payment Type                 Start Number       End Number            Amount
Accounts Payable Checks                924343              924792        $ 4,145,569.91
Accounts Payable ACH                 008587             009585        $ 55,684,782.46
AP Wires & Transfers                 014907             014921        $ 8,694,839.86
Payroll Checks                            189685               190192        $ 427,303.23
Payroll ACH                           860479              866646        $ 15,660,703.54
Total Payments                                                        $ 84.613.199.00


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: July 10, 2018

Effective internal controls over all Port procurement, contracting and disbursements are also in place to
and
ensure proper central oversight, delegation of authority, separation of duties, payment approval
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  June  2018,  $69  million  in  accounts  payable  payments  were  made  to  730
vendors/contractors, comprised of 2,151 vouchers and 9,972  accounting expense transactions.  About 87
percent of the accounts payable payments made in the month fall into the Construction, Employee Benefits,
Payroll Taxes, Contracted Services,  Janitotial Services, and Utility Expense categories.  The following chart
summarizes the top expense categories by total spend.

Category         Payment Amount
Construction                S 39,064,82485
Employee Benefits           S  6,606,842.94
Payroll Taxes                 S   5,921,330.11
Contracted Services          S  4,353,836.79
Janitorial Services             S   2,080,667.73
Utility Expenses               S   1,923,820.20
Public Expense               S   1,490,619.47
Sales Taxes                   S   1,176,537.97
NWSA Construction Costs    S    856,071.17
Environmental Remediation  S    829,531.93
Maintanance Inventory      S    672,060.65
Parking Taxes                S    587,714.82
Computers & Telephone     S    288,708.01
Miscellaneous Expense       S    261,595.11
Other Categories Total        S  2,411,030.48
Net Payroll                    $ 16,088,006.77
Total Payments             5 84,613,199.00

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.

Jmuwx
Debbi Browning/Port Auditor)

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COMMISSION AGENDA- Action Item No. 6b                                Page 3 of 3
Meeting Date: July 10, 2018

At a meeting of the Port Commission held on July 10, 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:
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