Template revised September 22, 2016.

COMMISSION

AGENDA MEMORANDUM

Item No.

4a

ACTION ITEM

Date of Meeting

November 14, 2017

DATE: November 1, 2017

TO: Dave Soike, Interim Chief Executive Officer

FROM: Duane Hill, AFR Senior Manager Disbursements

SUBJECT: Claims and Obligations October 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 October 1, 2017 through October 31, 2017

as follows:

JUSTIFICATION

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 CEO 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 contract—if they are below the thresholds the CEO is delegated authority to approve them. Expenditures

are monitored against budgets on a monthly basis by management and reported comprehensively to the

Commission quarterly.

83,628,468.57$

6,597,482.39$

55,741,559.04$

11,779,562.08$

297,580.64$

9,212,284.42$

187656

826363

920484

003623

014772

187934

830346

Payroll ACH

Total Payments

Payment Type

Accounts Payable Checks

Accounts Payable ACH

Accounts Payable Wire Transfers

Payroll Checks

Payment Reference

Start Number

Payment

Reference End

Number

Amount

919948

002929

014735

COMMISSION AGENDA – Action Item No. 4a Page 2 of 3

Meeting Date: November 14, 2017

Template revised September 22, 2016.

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 October 2017, $74 million in accounts payable payments were made to 777

vendors/contractors, comprised of 2,995 vouchers and 10,324 accounting expense transactions. About 80

percent of the accounts payable payments made in the month fall into the Construction, Employee Benefits,

Contracted Services, Leasehold Taxes, Payroll Taxes, Utility Expenses and NWSA Construction expense

categories. The following chart summarizes the top 15 expense categories by total spend.

Construction 36,546,203.00$

Employee Benefits 8,972,134.05$

Contracted Services 6,075,852.97$

Leasehold Taxes 4,522,837.98$

Payroll Taxes 3,937,930.22$

Utility Expenses 2,408,339.02$

NWSA Construction Costs 2,235,487.93$

Janitorial Services 1,263,374.39$

Sales Taxes 1,209,268.63$

Environmental Remediation 1,174,886.70$

Insurance 981,182.97$

Software 565,864.51$

Parking Taxes 555,577.15$

Bond Fees 459,355.49$

Miscellaneous Expense 376,610.91$

Other Categories Total 2,833,697.59$

Port Net Payroll

9,509,865.06$

Total 83,628,468.57$

COMMISSION AGENDA – Action Item No. 4a Page 3 of 3

Meeting Date: November 14, 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 delegation of authority.

At a meeting of the Port Commission held on November 14, 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