INTERNAL AUDIT REPORT 
LEASE AND CONCESSION AGREEMENT AUDIT 

EAN HOLDINGS, LLC DBA ENTERPRISE, ALAMO RENT-ACAR
, AND NATIONAL CAR RENTALS 

MAY 17, 2012 -MAY 31, 2014 

ISSUE DATE: MAY 09, 2016 
REPORT NO. 2016-05

EAN HOLDINGS, LLC dba ENTERPRISE, ALAMO                           INTERNAL AUDIT 
RENT-A-CAR, AND NATIONAL CAR RENTALS 
MAY 17, 2012  MAY 31, 2014 

EXECUTIVE SUMMARY 

AUDIT OBJECTIVES AND SCOPE 
The purpose of the audit was to determine whether: 
1.  EAN Holdings, LLC (EAN) reported Concession Fees were complete, properly calculated, and
remitted timely to the Port. 
2.  Port management and EAN complied with significant financial terms of the agreement, as
amended. 
3.  Customer Facility Charges (CFC) were properly collected and remitted timely to the Port. 
We reviewed information for the period May 17, 2012  May 31, 2014. Details of audit scope and
methodology are on page 5. 

BACKGROUND 
Enterprise Rent-A-Car, Alamo Rent-A-Car, and National Car Rentals are operated under EAN Holdings,
LLC agreement.
The lease and concession agreement with EAN became effective on May 17, 2012. The terms of the
agreement provide for a MAG at 85% of the total amount paid to the Port in the previous agreement
year. Additionally, the agreement requires a Percentage Fee equal to ten percent (10%) of gross
revenues, provided the fee is higher than the monthly MAG payment. 

AUDIT RESULT

EAN Holdings, LLC materially complied with the terms of the Lease and Concession Agreement as
amended. 





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EAN HOLDINGS, LLC dba ENTERPRISE, ALAMO                           INTERNAL AUDIT 
RENT-A-CAR, AND NATIONAL CAR RENTALS 
MAY 17, 2012  MAY 31, 2014 

TABLE OF CONTENTS 


EXECUTIVE SUMMARY ................................................................................................................................................. 2 
TRANSMITTAL LETTER.................................................................................................................................................. 4 
BACKGROUND ............................................................................................................................................................... 5 
FINANCIAL HIGHLIGHTS .............................................................................................................................................. 5 
AUDIT SCOPE AND METHODLOGY .............................................................................................................................. 5 












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EAN HOLDINGS, LLC dba ENTERPRISE, ALAMO                           INTERNAL AUDIT 
RENT-A-CAR, AND NATIONAL CAR RENTALS 
MAY 17, 2012  MAY 31, 2014 
TRANSMITTAL LETTER 
Audit Committee 
Port of Seattle 
Seattle, Washington 
We have completed an audit of EAN Holding, LLC dba Enterprise, Alamo Rent-A-Car, and National Car
Rentals. We reviewed information for the period May 17, 2012 - May 31, 2014. 
We conducted the audit in accordance with Generally Accepted Government Auditing Standards and
the International Standards for the Professional Practice of Internal Auditing. Those standards require
that we plan and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable
basis for our findings and conclusions based on our audit objectives. We believe that the evidence
obtained provides a reasonable basis for our conclusions and findings based on our audit objectives. 
We extend our appreciation to the management and staff of the Aviation Business Development
Department, and the Accounting & Financial Reporting for their assistance and cooperation during the
audit. 


Joyce Kirangi, CPA, CGMA 
Director, Internal Audit. 

AUDIT TEAM                      RESPONSIBLE MANAGEMENT TEAM 
Margaret Songtantaruk , Sr. Auditor        Jim Schone, Director, Aviation Business Development. 
Roneel Prasad, Internal Auditor           James Jennings, Manager, Aviation Properties Group. 







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EAN HOLDINGS, LLC dba ENTERPRISE, ALAMO                           INTERNAL AUDIT 
RENT-A-CAR, AND NATIONAL CAR RENTALS 
MAY 17, 2012  MAY 31, 2014 

BACKGROUND BACKGROUND 
Enterprise, Alamo Rent-A-Car, and National Car Rentals are operated under EAN Holdings, LLC
agreement.
The lease and concession agreement with EAN became effective on May 17, 2012.
The terms of the agreement provide a Minimum Annual Guarantee (MAG) of 85% of the total amount
paid to the Port in the previous agreement year. Additionally, the agreement requires a Percentage
Fee equal to 10% of gross revenues, provided the Percentage Fee is higher than the MAG payment. 

FINANCIAL HIGHLIGHTS 
FINANCIAL HIGHLIGHTSFINANCIAL HIGHLIGHTS FINANCIAL HIGHLIGHTS 
KEY FINANCIAL RESULTS FOR EAN HOLDINGS, LLC AGREEMENT 
AGREEMENT YEAR   REPORTED GROSS REVENUES  CONCESSION PAID 
20121-2013                     80,118,236         8,011,824 
2013-2014                     86,058,051         8,605,805 
TOTAL                    $166,176,287      $ 16,617,629 
Data Source: PeopleSoft Financials 
Note: 1 05/17/2012  05/31/2014 

AUDIT SCOPE AND METHODLOGY AUDIT SCOPE AND METHODOLOGY 

We reviewed information for the period May 17, 2012  May 31, 2014. We utilized a risk-based audit
approach from planning to testing. To obtain a complete understanding of the financial requirements
of the agreement between the Port of Seattle and EAN Holding LLC (EAN), we gathered information
through document requests, interviews, observation, and data analysis. 
We applied additional detailed audit procedures to areas with the highest likelihood of significant
negative impact as follows: 
1.  To determine whether the reported concession was complete, properly calculated, and remitted
timely to the Port. 
Reviewed the lessee's chart of accounts to determine whether all revenue accounts were
included in the reported revenues to the Port. 
Reconciled the reported revenues to: 
o  Detail Daily Business Reports (DBR) by revenue item. Additionally the revenue items were
reviewed to determine whether all items subject to the concession fee were included in the
reported revenue. 
o  Certified Audit Statement of Gross Revenues, independently verified by a CPA. 

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EAN HOLDINGS, LLC dba ENTERPRISE, ALAMO                           INTERNAL AUDIT 
RENT-A-CAR, AND NATIONAL CAR RENTALS 
MAY 17, 2012  MAY 31, 2014 

Tested a risk-based sample of 102 closed rental agreements (RA) to determine whether: 
o  Concessionable revenue items on RA agreed to the amount recorded in the DBR. 
o  Adjustments were actually refunded to customers, and were not mare reduction to revenues
subject to the concession fee. 
Reviewed Port records to determine the timeliness of submitted concession payments. 
2.  To determine whether Port management and EAN complied with significant financial terms of the
Lease and Concession Agreement, as amended. 
We reviewed the following: 
The actual agreement to identify significant financial compliance requirements. 
Certified Audited Statement of Gross Revenues for Compliance with the timely and complete
submission requirements. 
Surety bond amount to ensure compliance with the requirements in the agreement, as
amended. 
The insurance coverage to ensure compliance with lease terms.
Non-RAC Concession Contract & North Parcel Rents are properly maintained and calculated. 
3.  To determine whether Customer Facility Charges (CFC) were properly collected and remitted timely
to the Port. 
Analyzed the methodology of CFC calculation and reporting. 
Calculated CFC based on the lessee's accounting records for all rental agreements in the audit
period, and reconciled the calculated result to the CFC amount reported to the Port. 
Tested a risk-based sample of 26 closed RAs to determine whether the CFC calculation was
accurate. 
Reviewed all payment records for the audit period to determine whether payments were
remitted by the required due dates. 

CONCLUSION 
CONCLUSION CONCLUSION 
EAN Holdings, LLCA materially complied with the terms of the Lease and Concession Agreement as
amended. 




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