COMMISSION
AGENDA MEMORANDUM

Item No.

ACTION ITEM

Date of Meeting

DATE:

April 2, 2018

TO:

Steve Metruck, Executive Director

FROM:

Duane Hill, AFR Senior Manager Disbursements

6b
April 10, 2018

SUBJECT: Claims and Obligations March 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 March 1 through March 31, 2018 as
follows:

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

Payment Reference
Start Number
922684
006483
014849
188999
848319

Payment Reference
End Number
923277
$
007208
$
014867
$
189232
$
852344
$
$

Amount
7,361,528.04
68,655,673.75
7,113,965.99
321,816.44
9,860,441.87
93,313,426.09

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 contract-if 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.
Template revised September 22, 2016.

COMMISSION AGENDA - Action Item No. 6b
Meeting Date: April 10, 2018

Page 2 of 3

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 March, $83 million in accounts payable payments were made to 751 vendors/contractors,
comprised of 2,506 vouchers and 9,069 accounting expense transactions. About 86 percent of the accounts
payable payments made in the month fall into the Construction, Employee Benefits, Contracted Services,
Janitorial Services, Payroll Taxes and NWSA Construction Costs categories. The following chart summarizes
the top 15 expense categories by total spend.
Category
Payment Amount
Construction
44,816,103.35
Employee Benefits
7,701,958.51
Contracted Services
7,434,527.28
Janitorial Services
4,687,572.50
Payroll Taxes
3,765,990.11
NWSA Construction Costs
3,012,104.90
Utility Expenses
2,143,827.27
Public Expense
1,453,372.09
Software
1,124,149.37
Sales Taxes
932,874.50
Maintanance Inventory
907,372.01
Environmental Remediation
671,613.35
Miscellaneous Expense
662,149.71
Parking Taxes
475,130.67
Computers & Telephone
352,361.00
Other Categories
2,990,061.16
Port Net Payroll
10,182,258.31
Total Payments
93,313,426.09

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: April 10, 2018

Page 3 of 3

At a meeting of the Port Commission held on April 10, 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.