COMMISSION

AGENDA MEMORANDUM Item No. 6b

ACTION ITEM Date of Meeting November 12, 2019

DATE: November 4, 2019

TO: Steve Metruck, Executive Director

FROM: Duane Hill, AFR Senior Manager Disbursements

SUBJECT: Claims and Obligations - October 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 October 1 through October 31, 2019 as

follows:

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.

117,908,706.49$

11,095,817.96$

79,086,041.84$

16,366,496.24$

257,647.86$

11,102,702.59$

194513

934211

932771

021762

015246

194730

938491

Payroll ACH

Total Payments

Payment Type

Accounts Payable Checks

Accounts Payable ACH

Accounts Payable Wire Transfers

Payroll Checks

Payment Reference

Start Number

Payment

Reference End

Number

Amount

932176

020843

015218

COMMISSION AGENDA – Action Item No. 6b

Meeting Date: November 12, 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 October 2019, over $106,548,356.04 in payments were made to nearly 877 vendors,

comprised of 2,945 invoices and over 12,401 accounting expense transactions. About 97 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 October was $11,360,350.45. The following

chart summarizes the top expense categories by total spend.

Other Categories Total :

$ 2,958,497.99

Total Payments :

$ 117,908,706.49

Net Payroll

Top 15 Payment Categories Summary

11,360,350.45$

Software

$ 421,227.02

Parking Taxes

$ 573,916.46

Legal

$ 424,210.92

Maintenance Inventory

$ 823,296.00

Insurance

$ 820,215.02

Sales Taxes

$ 1,439,820.52

A/R Related Payments

$ 1,425,918.32

Utility Expenses

$ 2,819,141.37

Janitorial Services

$ 1,460,413.33

Leasehold Taxes

$ 4,497,137.10

Payroll Taxes

$ 4,183,025.74

Environmental Remediation

$ 7,573,415.79

Contracted Services

$ 6,217,551.74