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of Seattle'

COMMISSION
AGENDA MEMORANDUM                      Item No.        6b

ACTION ITEM                           Date of Meeting     March 13, 2018

DATE:    March 2, 2018

TO:       Steve Metruck, Executive Director

FROM:   Duane Hill, AFR Senior Manager Disbursements

SUBJECT:  Claims and Obligations February 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 February 1 through February 28, 2018 as
follows:

Payment Reference   Payment Reference
Payment Type                         Start Number       End Number           Amount
Accounts Payable Checks                          922216              922683        $ 3,892,787.76
Accounts Payable ACH                          005834             006482       $ 42,554,461.49
Accounts Payable Wire Transfers                    014832               014848        $ 6,779,914.32
Payroll Checks                                      188792               188998        $ 451,228.80
Payroll ACH                                    844346              848318        $ 9,543,304.96
Total Payments                                                                 $ 63,221,697.33


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: March 13, 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 February, $53 million in accounts payable payments were made to 765 vendors/contractors,
comprised of 2,456 vouchers and 7,868 accounting expense transactions.  About 90 percent of the accounts
payable payments made in the month fall into the Construction, Employee Benefits, Contracted Services,
Payroll taxes, NWSA Construction Costs, Utility expense and Environmental Remediation categories.  The
following chart summarizes the top 15 expense categories by total spend.

Category               Payment Amount
Construction                              S  27,061,245.96
Employee Benefits                       S   6,716,658.63
Contracted Services                       S   4,433,122.77
Payroll Taxes                               S   3,618,078.36
NWSA Construction Costs                S   2,424,189.21
Utility Expenses                             S   1,992,426.63
Environmental Remediation               S   1,678,150.91
Sales Taxes                                S     942,587.02
Maintenance Inventory                   5     698,726.74
Software                               5    638,863.40
Legal                                        $ 614,671.48
Parking Taxes                              $ 522,218.25
Room/Space/Land Rental                S    191,681.32
Equipment Rental                        S     188,288.22
Rebates                                S     168,229.97
Other Categories                          S   1,338,024.70
Port Net Payroll                             S   9,994,533.76
Total Payments             S 63,221,597.33

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.

JWMMA
Debbi Browning/Port Audho

COMMISSION AGENDA - Action Item No. 6b                                 Page 3 of 3
Meeting Date: March 13, 2018

At a meeting of the Port Commission held on March 13, 2018, it is hereby moved that, pursuant to RCW
42.24.180, the Port Commission approves the Port Auditor's payment ofthe above salaries and claims of the
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