COMMISSION
AGENDA MEMORANDUM

Item No.

ACTION ITEM

Date of Meeting

DATE:

January 10, 2018

TO:

Dave Soike, Interim Executive Director

FROM:

Duane Hill, AFR Senior Manager Disbursements

6b
January 30, 2018

SUBJECT: Claims and Obligations December 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 December 1, 2017, through December 31,
2017, as follows:
Payment Type
Accounts Payable Checks
Accounts Payable ACH
Accounts Payable Wire Transfers
Payroll Checks
Payroll ACH
Total Payments

Payment Reference
Start Number
921172
004436
014791
188206
834329

Payment Reference
End Number
921672
005118
014807
188584
840382

Amount
$
$
$
$
$
$

6,105,986.20
49,578,160.32
9,278,844.06
472,497.37
14,767,197.13
80,202,685.08

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
Template revised September 22, 2016.

COMMISSION AGENDA - Action Item No. 6b
Meeting Date: January 30, 2018

Page 2 of 3

are monitored against budgets on a monthly basis by management and reported comprehensively to the
Commission quarterly.
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 December 2017, $65 million in accounts payable payments were made to 767
vendors/contractors, comprised of 2,950 vouchers and 10,163 accounting expense transactions. About 88
percent of the accounts payable payments made in the month fall into the Construction, Contracted Services,
Employee Benefits, Payroll Taxes, NWSA Construction, Janitorial Services and Environmental Remediation
expense categories. The following chart summarizes the top 15 expense categories by total spend.
Category
Payment Amount
Construction
$ 28,989,652.38
Contracted Services
$
7,526,183.21
Employee Benefits
$
7,397,806.24
Payroll Taxes
$
5,927,983.14
NWSA Construction Costs
$
2,782,368.19
Janitorial Services
$
2,487,843.86
Environmental Remediation $
2,051,927.40
Utility Expenses
$
1,423,081.91
Sales Taxes
$
1,169,535.51
Software
$
847,307.47
Parking Taxes
$
536,319.00
Computers & Telephone
$
516,572.06
A/R Related Payments
$
391,297.82
Furn & Equip Purchase
$
381,022.92
Maintanance Inventory
$
362,306.02
Other Categories Total
$
2,171,783.45
Port Net Payroll
$ 15,239,694.50
Total
$ 80,202,685.08

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.

Template revised September 22, 2016.

COMMISSION AGENDA - Action Item No. 6b
Meeting Date: January 30, 2018

Page 3 of 3

At a meeting of the Port Commission held on January 30, 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:

Port Commission

Template revised September 22, 2016.