COMMISSION
AGENDA MEMORANDUM

Item No.

ACTION ITEM

Date of Meeting

DATE:

February 14, 2018

TO:

Steve Metruck, Executive Director

FROM:

Duane Hill, AFR Senior Manager Disbursements

6b
February 27, 2018

SUBJECT: Claims and Obligations January 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 January 1, 2018 through January 31, 2018
as follows:
Payment Type

Payment Reference
Start Number

Payment Reference
End Number

Accounts Payable Checks
Accounts Payable ACH
Accounts Payable Wire Transfers
Payroll Checks
Payroll ACH
Total Payments

921673
005119
014808
188585
840383

922215
005833
014831
188791
844345

Amount
$
$
$
$
$
$

6,863,005.83
54,295,371.62
12,833,766.23
242,426.49
9,618,465.67
83,853,035.84

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 (ED) 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 ED is delegated authority to

Template revised September 22, 2016.

COMMISSION AGENDA - Action Item No. 6b
Meeting Date: February 27, 2018

Page 2 of 3

approve them. Expenditures 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 January, $74 million in accounts payable payments were made to 759 vendors/contractors,
comprised of 2,933 vouchers and 13,669 accounting expense transactions. About 84 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
Construction
Employee Benefits
Contracted Services
NWSA Construction Costs
Leasehold Taxes
Payroll Taxes
Utility Expenses
Janitorial Services
Sales Taxes
Software
Bond Fees
Maintanance Inventory
Environmental Remediation
Membership Dues
Parking Taxes
Other Categories total
Port Net Payroll
Total Payments

Payment Amount
$
31,289,661.04
$
10,081,464.43
$
6,745,357.28
$
4,154,932.29
$
4,140,466.68
$
3,923,113.56
$
2,005,035.00
$
1,254,359.19
$
1,244,426.49
$
1,095,716.43
$
773,741.14
$
761,309.23
$
703,993.50
$
627,691.41
$
627,586.95
$
4,563,289.06
$
9,860,892.16
$
83,853,035.84

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: February 27, 2018

Page 3 of 3

At a meeting of the Port Commission held on February 27, 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.