INTERNAL AUDIT REPORT 

LEASE AND CONCESSION AGREEMENT AUDIT 

FIREFLY RENT-A-CAR, LLC DBA FIREFLY 


AUGUST 1, 2014  MAY 31, 2015 

ISSUE DATE: MAY 09, 2016 
REPORT NO. 2016-06

FIREFLY RENT-A-CAR, LLC dba FIREFLY                                  INTERNAL AUDIT 
AUGUST 1, 2014  MAY 31, 2015 

EXECUTIVE SUMMARY 
AUDIT OBJECTIVES AND SCOPE 

The purpose of the audit was to determine whether: 
1.  Aviation Business Development monitoring controls are adequate and effective to ensure: 
Firefly Rent-A-Car LLC Reported Concession Fees were complete, properly calculated,
and remitted timely to the Port. 
2.  Firefly complied with significant financial provisions of the agreement. 
3.  Customer Facility Charges (CFC) were properly collected and remitted. 
We reviewed and analyzed records for the Agreement period. For purposes of rendering our opinion,
we focused on the period August 1, 2014  May 31, 2015. 
Details of our audit's scope and methodology are on page 6. 

BACKGROUND 

Firefly Rent-A-Car LLC dba Firefly assumed the Simply Wheelz LLC dba Advantage Rent-A-Car business 
in June 2014, and the business started to operates in August 2014. 
The terms of the agreement provide for a Minimum Annual Guarantee (MAG) of 80% of the total amount
paid to the Port in the previous agreement year. Additionally, the agreement requires Percentage Fee
equal to ten percent (10%) of gross revenues, provided the fee is higher than the monthly MAG. 

AUDIT RESULT
Management controls were effective to ensure Lessee materially complied with the terms of
the Lease and Concession Agreement, as amended. The reported concession fees and
Customer Facility Charge were materially complete, properly calculated, and remitted timely
to the Port. 





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FIREFLY RENT-A-CAR, LLC dba FIREFLY                                  INTERNAL AUDIT 
AUGUST 1, 2014  MAY 31, 2015 

TABLE OF CONTENTS 


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














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FIREFLY RENT-A-CAR, LLC dba FIREFLY                                  INTERNAL AUDIT 
AUGUST 1, 2014  MAY 31, 2015 

TRANSMITTAL LETTER 
Audit Committee 
Port of Seattle 
Seattle, Washington 

We have completed an audit of Firefly Rent-A-Car LLC. We reviewed information for the period August
1, 2014 - May 31, 2015. 
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 findings and conclusions based on our audit objectives. 
We extend our appreciation to the management and staff of the Aviation Business Development
Department, Accounting and Financial Reporting for their assistance and cooperation during the audit. 



Joyce Kirangi, CPA, CGMA 
Director, Internal Audit 

AUDIT TEAM                      RESPONSIBLE MANAGEMENT TEAM 
Margaret Songtantaruk, Senior Auditor      Jim Schone, Director AV Business Development 
Rudy Caluza, Director Accounting and Financial Reporting 






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FIREFLY RENT-A-CAR, LLC dba FIREFLY                                  INTERNAL AUDIT 
AUGUST 1, 2014  MAY 31, 2015 

BACKGROUND 
Firefly Rent-A-Car LLC dba Firefly assumed the Simply Wheelz LLC dba Advantage Rent A Car business 
in June 2014, and the business started to operate in August 2014. 
The terms of the agreement provide for a Minimum Annual Guarantee (MAG) of 80% of the total amount
paid to the Port in the previous agreement year. Additionally, the agreement requires Percentage Fee
equal to ten percent (10%) of gross revenues, provided the fee is higher than the monthly MAG. 

FINANCIAL HIGHLIGHTS 
FINANCIAL HIGHLIGHTSFINANCIAL HIGHLIGHTS FINANCIAL HIGHLIGHTS 
KEY FINANCIAL RESULTS FOR FIREFLY RENT A CAR LLC AGREEMENT 
AGREEMENT PERIOD   REPORTED GROSS REVENUES  MAG/CONCESSION PAID 
8/01/2014  5/31/2015              $494,335.00           $516,661.00 
TOTAL                      $494,335.00         $516,661.00 
Data Source: PeopleSoft and Propworks 
Note: Concession Fees were not exceed MAG. 

AUDIT SCOPE AND METHODLOGY AUDIT SCOPE AND METHODOLOGY 

We reviewed information for the period August 1, 2014  May 31, 2015. We utilized a risk-based audit
approach from planning to testing. 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 Port management monitoring controls were effective to ensure whether
reported concession fees were complete, properly calculated, and remitted timely to the port, we: 
o Reviewed the lessee's chart of accounts to determine whether all revenue accounts were
included in the reported revenues to the Port. 
o Reconciled the reported revenues to detail Daily Reconciled Business Report (DRB) by revenue 
category. 
o Tested risk-based sample of 8 closed car rental agreements to determine whether revenue
adjustments and/or reductions were valid and refunded. 
o Analyzed Port records to determine the timeliness of submitted MAG/Concession Fee payments. 
2.  To determine whether Port management and Firefly complied with significant financial terms of the
Lease and Concession Agreement, as amended. We reviewed the: 
o Agreement to identify significant financial compliance requirements. 
o Insurance coverage and surety bond to determine whether they were adequate and in force for 
the audit period. 

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FIREFLY RENT-A-CAR, LLC dba FIREFLY                                  INTERNAL AUDIT 
AUGUST 1, 2014  MAY 31, 2015 

3.  To determine whether Customer Facility Charges (CFC) were properly collected and remitted timely
to the Port, we: 
o  Analyzed the CFC calculation and reporting. 
o  Recalculated the CFC based on the lessee's accounting records for all rental agreements under
the audit period, and reconciled the calculated result to the CFC amount reported to the Port. 
o  Tested a risk-based sample of 12 closed car rental agreements to determine whether lessee
calculated CFC was based on the correct check-out and return date and time. 
o  Analyzed all payment records for the audit period to determine whether payments were
remitted by the required due dates. 

CONCLUSION                 CONCLUSION 

Management controls were effective to ensure Lessee materially complied with the terms of
the Lease and Concession Agreement, as amended. The reported concession fees and
Customer Facility Charge were materially complete, properly calculated, and remitted timely
to the Port. 


AUDIT SCOPE AND METHODOLOGY 










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