Template revised September 22, 2016.
COMMISSION
AGENDA MEMORANDUM
Item No.
4b
ACTION ITEM
Date of Meeting
December 12, 2017
DATE: December 6, 2017
TO: Dave Soike, Interim Chief Executive Officer
FROM: Duane Hill, AFR Senior Manager Disbursements
SUBJECT: Claims and Obligations November 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 November 1, 2017 through November 30,
2017 as follows:
Payment Type
Payment Reference
Start Number
Payment Reference End
Number
Amount
Accounts Payable Checks
920485
921171
$ 6,485,835.28
Accounts Payable ACH
003624
004435
$ 52,322,219.05
Accounts Payable Wire Transfers
014773
014790
$ 7,293,883.27
Payroll Checks
187935
188286
$ 267,328.95
Payroll ACH
830347
834328
$ 9,324,275.18
Total Payments
$ 75,693,541.73
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.
COMMISSION AGENDA – Action Item No. 4b Page 2 of 3
Meeting Date: December 12, 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 November 2017, $66 million in accounts payable payments were made to 939
vendors/contractors, comprised of 3,305 vouchers and 11,977 accounting expense transactions. About 86
percent of the accounts payable payments made in the month fall into the Construction, Employee Benefits,
Contracted Services, Environmental Remediation, Payroll Taxes, Utility Expenses and NWSA Construction
expense categories. The following chart summarizes the top 15 expense categories by total spend.
Construction
$ 31,064,593.74
Employee Benefits
$ 8,221,716.19
Contracted Services
$ 5,853,756.91
Environmental Remediation
$ 4,290,148.69
Payroll Taxes
$ 3,872,586.42
Utility Expenses
$ 2,042,878.76
NWSA Construction Costs
$ 1,741,986.08
Election Expenses
$ 1,609,498.62
Janitorial Services
$ 1,273,375.30
Sales Taxes
$ 1,183,780.32
Software
$ 600,776.94
A/R Related Payments
$ 593,522.08
Parking Taxes
$ 540,327.00
Maintenance Inventory
$ 369,438.96
Miscellaneous Expense
$ 350,256.73
Other Expense Categories
$ 2,493,294.86
Port Net Payroll
$ 9,591,604.13
Total
$ 75,693,541.73
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.
COMMISSION AGENDA – Action Item No. 4b Page 3 of 3
Meeting Date: December 12, 2017
Template revised September 22, 2016.
At a meeting of the Port Commission held on December 12, 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
