COMMISSION AGENDA MEMORANDUM ACTION ITEM Item No. Date of Meeting DATE: October 1, 2019 TO: Steve Metruck, Executive Director FROM: Duane Hill, AFR Senior Manager Disbursements 6b October 8, 2019 SUBJECT: Claims and Obligations - September 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 September 1 through September 30, 2019 as follows: Payment Reference Start Payment Type Number Accounts Payable Checks 931646 Accounts Payable ACH 020175 Accounts Payable Wire Transfers 015199 Payroll Checks 194263 Payroll ACH 929895 Total Payments Payment Reference End Number 932175 020842 015217 194512 934210 $ $ $ $ $ $ Amount 5,853,652.18 69,415,025.71 5,730,932.44 265,268.93 11,096,629.74 92,361,509.00 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 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 monthly by management and reported comprehensively to the Commission quarterly. Template revised September 22, 2016. COMMISSION AGENDA - Action Item No. 6b Meeting Date: October 8, 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 September 2019, $81 million in accounts payable payments were made to 783 vendors/contractors, comprised of 2,296 vouchers and 9,965 accounting expense transactions. About 93 percent of the accounts payable payments made in the month fall into the Construction, Employee Benefits, Contracted Services, NWSA Construction Costs, Payroll taxes, Environmental Remediation, Utility, Janitorial and Sales Taxes expense categories. Net payroll expense for the month of August was $11,361,898.67. The following chart summarizes the top expense categories by total spend. Top 15 Payment Categories Summary Category Payment Amount Construction Employee Benefits Contracted Services NWSA Construction Costs Payroll Taxes Environmental Remediation Utility Expenses Janitorial Services Sales Taxes Maintenance Inventory Parking Taxes Bond Fees Software Miscellaneous Expense Employee Travel Expenses Other Categories Net Payroll Total Payments Template revised October 22, 2016. $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 48,466,381.92 5,242,512.90 4,802,185.27 4,542,676.54 4,218,234.90 2,936,715.87 2,709,745.77 1,444,946.69 1,279,256.28 792,675.31 718,211.20 550,524.08 467,147.44 354,688.25 284,223.74 2,189,484.17 11,361,898.67 92,361,509.00