COMMISSION AGENDA MEMORANDUM Item No. ACTION ITEM Date of Meeting DATE: February 4, 2019 TO: Steve Metruck, Executive Director FROM: Duane Hill, AFR Senior Manager Disbursements 6b February 26, 2019 SUBJECT: Claims and Obligations January 2019 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 through January 31, 2019 as follows: Payment Type Accounts Payable Checks Accounts Payable ACH Accounts Payable Wire Transfers Payroll Checks Payroll ACH Total Payments Payment Reference Start Payment Reference End Number Number 927867 928527 014094 015013 015031 015053 191868 192136 893958 898085 $ $ $ $ $ Amount 6,063,871.83 85,685,211.74 12,086,898.69 278,010.51 10,913,265.70 $ 115,027,258.47 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: February 26, 2019 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 January 2019, $104 million in accounts payable payments were made to 956 vendors/contractors, comprised of 3,079 vouchers and 23,939 accounting expense transactions. About 91 percent of the accounts payable payments made in the month fall into the Construction, Employee Benefits, Contracted Services, Payroll Taxes, Leasehold Taxes, Utility Expenses and Janitorial services categories. Net payroll expense for the month of January was $11,191,276.21. The following chart summarizes the top expense categories by total spend. Top 15 Payment Category Summary Category Payment Amount Construction Employee Benefits Contracted Services Payroll Taxes Leasehold Taxes Utility Expenses Janitorial Services Sales Taxes Maintenance Inventory A/R Related Payments Bond Fees Environmental Remediation Parking Taxes Software Miscellaneous Expense Other Categories $ Net Payroll $ Total Payments $ Template revised October 22, 2016. 65,428,289.13 9,803,583.36 6,497,367.78 4,156,116.64 3,965,767.61 2,380,911.64 1,866,916.79 1,300,459.91 965,098.96 885,249.59 761,119.50 734,548.47 631,690.36 631,357.58 451,293.86 3,376,211.08 11,191,276.21 115,027,258.47 COMMISSION AGENDA - Action Item No. 6b Meeting Date: February 26, 2019 Page 3 of 3 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 February 26, 2019 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 October 22, 2016.