Internal Audit Report 

Car Lease and Concession Audit 
Enterprise Holdings, LLC 
dba National Car Rental (US), Inc. 

November 1, 2008  October 31, 2011 




Issue Date: August 7, 2012 
Report No. 2012-14

Internal Audit Report 
National Rental (US), Inc. 
November 1, 2008, through October 31, 2011 

Table of Contents 

Transmittal Letter ..................................................................................................................... 3 
Executive Summary .................................................................................................................. 4 
Background .............................................................................................................................. 5 
Conclusion ................................................................................................................................ 7 














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Internal Audit Report 
National Rental (US), Inc. 
November 1, 2008, through October 31, 2011 

Transmittal Letter 

Audit Committee 
Port of Seattle 
Seattle, Washington 

We have completed an audit of the Enterprise (EAN) Holdings, LLC dba National Rental (US), Inc. 
The purpose of the audit was to determine whether: 
1)   The reported concession fees were complete, properly calculated, and remitted timely to the
Port. 
2)   The Port and the lessee complied with provisions of the Lease and Concession Agreement,
as amended. 
3)   Customer Facility Charges (CFC) were properly collected and remitted timely to the Port. 
We reviewed information relating to a three-year period from November 1, 2008, through October 31,
2011. 
We conducted this audit in accordance with generally accepted government auditing standards.
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. 
National Car Rental (US), Inc. materially complied with the terms of the Lease and Concession
agreement. 
We extend our appreciation to the management and staff of Aviation Business Development and
Accounting and Financial Reporting for their assistance and cooperation during the audit. 


Joyce Kirangi, CPA 
Internal Audit, Director 



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Internal Audit Report 
National Rental (US), Inc. 
November 1, 2008, through October 31, 2011 
Executive Summary 

Audit Scope and Objective The purpose of the audit was to determine whether: 
1) The reported concession fees were complete, properly calculated, and                        remitted timely to the 
Port. 
2) The Port and the lessee complied with provisions of the Lease and Concession Agreement, as 
amended. 
3) Customer Facility Charges (CFC) were properly collected and remitted timely to the Port. 
We examined the books and records of National Car Rental (US), Inc. for a three-year periodfrom 
November 1, 2008, through October 31, 2011. Aviation Business Development, in conjunction with
Accounting and Financial Reporting, has the primary responsibility for administering and monitoring
the agreement to ensure compliance with agreed-upon terms. 

Agreement Terms The terms of the agreement provide for a Minimum Annual Guarantee (MAG) 
shall be less than of (i) 80% of the total amount paid to the Port in the previous agreement year or the
MAG set forth of the first Agreement, whichever is greater, or (ii) 10% of Concessionaire's Gross
Revenues for the Agreement Year commencing November 1, 2008 and ending October 31, 2009.
Additionally, the agreement requires a Percentage Fee equal to 10% of gross revenues, provided the
fee is higher than the monthly MAG payment. 

Audit Result Summary  National Car Rental (US), Inc. materially complied with the terms of the
Lease and Concession agreement. 








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Internal Audit Report 
National Rental (US), Inc. 
November 1, 2008, through October 31, 2011 
Background 
On August 27, 1947, a group of 24 independent car rental operators with 800 vehicles and 60 
locations founded National Car Rental. The company currently operates hundreds of U.S. locations, 
including locations at/around the Sea-Tac International Airport. 
In 2007, Alamo Rent A Car along with National Car Rental, was acquired by privately held Enterprise 
Holdings which also owns and operates Enterprise brand in North America. With annual revenues of 
$14 billion, Enterprise Holdings is the largest and most comprehensive car rental service provider in 
the world measured by revenue, employees and fleet. 
The terms of the agreement provide for a Minimum Annual Guarantee (MAG) shall be less than of (i) 
80% of the total amount paid to the Port in the previous agreement year or the MAG set forth of the
first Agreement, whichever is greater, or (ii) 10% of Concessionaire's Gross Revenues for the
Agreement Year commencing November 1, 2008 and ending October 31, 2009. Additionally, the
agreement requires a Percentage Fee equal to 10% of gross revenues, provided the fee is higher
than the monthly MAG payment. 
The following are the only agreed-upon deductions allowed in the agreement: 
a.   Any tax imposed or collected on behalf of a taxing authority 
b.   Any amounts received as insurance proceeds or for damage to vehicles or other property, 
or for loss, conversion or abandonment of such vehicles 
c.   The wholesale transfer of salvage vehicles 
d.   All non-revenue rentals to employees 
e.   Fees paid to other governmental agencies (excluding the Port), relating to transactions at
the Airport 
The MAG is payable in advance, on or before the first day of each month, without notice from the
Port. The percentage fee, if applicable, is due on or before the 20th of the following month. For
untimely payments, the agreement provides for a one-time late fee of 5% of the overdue amount and
interest to be accrued at the rate of 18% per year from the due date until paid. 
Below are the financial Highlights for the last three fiscal years: 
Fiscal        Reported          Paid 
Year     Gross Revenue    Concession 
2008  2009*     $26,953,984     $4,055,120 
2009 - 2010       29,592,351      2,959,235 
2010 - 2011       32,466,920      3,246,692 
Total           $89,013,255     $10,261,047 
*MAG is greater than concession for the Agreement Year 



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Internal Audit Report 
National Rental (US), Inc. 
November 1, 2008, through October 31, 2011 
Audit Scope and Methodology 
We conducted the audit to determine whether the parties   were in compliance with the lease
agreement terms including, but not limited to, proper concession and CFC payments.                   We utilized a
risk-based audit approach from planning to test sampling. We gathered information through document 
requests, interviews, observation and analytical reviews in order to obtain a complete understanding 
of the financial requirements of the Agreement between the Port of Seattle and National. We applied 
additional detailed audit procedures to areas with the highest likelihood of significant negative impact 
as follows: 
a. Timely Payment                       e. CPA Certified Annual Report 
b. Insurance Liability                         f. Concession Revenue 
c. Surety Bond/Security Deposit                g. Customer Facility Charge (CFC)
d. Minimum Annual Guarantee (MAG) 
a)  Timely Payment 
We reviewed payment records to determine whether the lessee complied with the required due
date. 
b)  Insurance Liability 
We reconciled insurance requirements to the coverage reflected in the certificate of insurance in
force for the audit period to current. 
c)  Surety Bond/Security Deposit 
We determined whether the surety bond amount complied with the requirements stipulated in the
agreement. 
d)  Minimum Annual Guarantee 
We determined whether MAG was properly calculated and Port management obtained Port
Commission approval for Exception Relief to MAG. 
e)  CPA Certified Annual Report 
We reviewed annual reports to determine compliance with the timely and complete submission of
the report. 
f)   Concession Revenue 
We interviewed EAN Holdings Personnel about their policies, procedures, and internal control
over cash receipts, sales, accounting, and reporting. 
The Daily and Business Report (DBR), which is the general ledger, shows the monthly detail per
revenue category and link to all closed car rental agreement. The Revenue Report shows the
Page 6 of 7

Internal Audit Report 
National Rent-A-Car System, Inc 
November 1, 2008, through October 31, 2011 
monthly totals per revenue category. We reconciled the DBR to the CPA report to the Revenue 
Report. 
To determine whether the lessee completely reported all concession revenues, we selected                           a
sample of 155 closed rental agreements deemed high-risk for the audit period.           We determined
whether the revenue reported on each rental agreement agreed to the amount posted to the DBR. 
g)  Customer Facility Charges 
We reconciled the CFC amount reported in the DBR to each rental agreement in the risk-based
sample of closed rental transactions to ensure proper calculation of the CFC, timely collection,
and complete remittance of CFC to the Port, as required in the agreement. 
Conclusion 
National Car Rental (US), Inc. materially complied with the terms of the Lease and Concession
agreement. 












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