INTERNAL AUDIT REPORT 
LIMITED CONTRACT COMPLIANCE 
DTG OPERATIONS, INC. 
DBA THRIFTY CAR RENTAL 

JUNE 2014  MAY 2017 

ISSUE DATE: NOVEMBER 7, 2018 
REPORT NO. 2018-12



Thrifty Car Rental                                                                                   INTERNAL AUDIT 
June 2014  May 2017 

TABLE OF CONTENTS 

EXECUTIVE SUMMARY .......................................................................................................................................... 3 
BACKGROUND ....................................................................................................................................................... 4 
AUDIT SCOPE AND METHODOLOGY ...................................................................................................................... 5 
SCHEDULE OF FINDINGS AND RECOMMENDATIONS .......................................................................................... 6 
APPENDIX A: RISK RATINGS.................................................................................................................................. 8 













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Thrifty Car Rental                                                                                   INTERNAL AUDIT 
June 2014  May 2017 

EXECUTIVE SUMMARY 
Internal Audit (IA) completed an audit of the Lease Agreement (Agreement) between Thrifty Car Rental
(Thrifty) and the Port of Seattle (Port) for the period June 1, 2014 through May 31, 2017. The audit
objective was to determine whether Thrifty complied with significant financial provisions of the Agreement,
including whether reported gross revenues and the Customer Facility Charges (CFC) paid to the Port
were complete and accurate. 
We determined that Thrifty underreported certain gross revenue items and the CFC. 
1)  Thrifty did not report $103,577 in incidental gross revenue, resulting in approximately $10,358 in 
additional Percentage Fees owed to the Port. 
2)   The Agreement requires the Operator to remit the full amount of the CFC regardless of whether or
not the full amount is actually collected. In certain instances, Thrifty did not charge the CFC and as a
result, did not remit $111,912 to the Port. 
The two items resulted in an underpayment to the Port of $122,270, for the three-year period ending May
31, 2017. These issues are discussed in more detail beginning on page six and seven of this report. 
Additionally, section 8.2.1 of the Agreement indicates that the full cost of the audit shall be borne by the
Operator for a discrepancy of more than one percent (1%) for the CFC for any twelve (12) month audit
period. The discrepancy was greater than one percent for the 12-month periods ending May 31, 2015
and 2016. IA provided audit cost details to Port Management. 
We extend our appreciation to management and staff of the Aviation Commercial Management
Department, Thrifty, and the Accounting and Financial Reporting Department for their assistance and
cooperation during the audit. 


Glenn Fernandes, CPA 
Director, Internal Audit 

Responsible Management Team 
Lance Lyttle, Managing Director, Aviation 
Jim Schone, Director AV Commercial Management 
Jason Johnson, Aviation Property Manager 3 


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Thrifty Car Rental                                                                                   INTERNAL AUDIT 
June 2014  May 2017 
BACKGROUND 

Dollar Thrifty Automotive Group, Inc. (DTG) is the former holding company of Thrifty Car Rental. DTG
was acquired by The Hertz Corporation in November 2012. 
In July 2008, the Port entered into a Consolidated Rental Car Facility Lease Agreement (Agreement) with
Thrifty. The terms of the Agreement provide for a Minimum Annual Guarantee (MAG) equal to 85% of the
total amount paid to the Port for the previous Agreement year. Additionally, the Agreement requires a 
Percentage Fee equal to 10% of gross revenues, provided the fee is higher than the monthly MAG. 
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.
The Agreement states that the Operator must collect a Customer Facility Charge (CFC) of $6 per rental
day. 
The table below reflects total Gross Revenues, Percentage Fees, and CFC fees: 
Agreement Year        Gross Revenues  Percentage Fees        CFC Fees
2014 - 2015                 15,941,988                   1,594,199                  2,130,900
2015 - 2016                 15,136,848         1,513,685         2,151,396
2016 - 2017                 14,348,098                   1,434,810                  2,090,460 
Total                     $ 45,426,934              $ 4,542,694             $ 6,372,756 
Data Source: PeopleSoft Financials and Propworks 










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Thrifty Car Rental                                                                                   INTERNAL AUDIT 
June 2014  May 2017 
AUDIT SCOPE AND METHODOLOGY 
We conducted this 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. 
The period audited was June 2014 through May 2017. After identifying significant provisions in the
Agreement, we performed audit procedures that included: 
Revenue Completeness and Accuracy 
Traced concession payments to Port records to verify payments were received by Agreement 
dates.
Agreed revenues reported to the Port, to the Operator's general ledger, revenue reports, and to
Thrifty's audited schedules. 
Customer Facility Charge 
Agreed Operator's audited CFC counts to database records. 
Reviewed checkout and return date records to assess the reasonableness of daily transactions. 
Insurance and Rent Security 
Determined whether commercial general liability insurance and rent security  requirements
complied with Agreement terms. 










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Thrifty Car Rental                                                                                   INTERNAL AUDIT 
June 2014  May 2017 
SCHEDULE OF FINDINGS AND RECOMMENDATIONS 
1) RATING: MEDIUM 
Thrifty did not report $103,577 in incidental gross revenue, resulting in approximately $10,358 in
additional Percentage Fees owed to the Port. 
Our analysis of the Operator's financial records and testing of transactions, identified the following items
that were not included in Gross Revenues, when reported to the Port: 
UMP (Uninsured Motorist)                         Travel Tab / Wifi 
Portable GPS                                 Neverlost 
Toll Road (Plate Pass)                             Detail Cleaning Fee 
Early / Late Return Fee                             Impound Recovery Fee 
The Operator has acknowledged these items. The underreported revenue is reflected in the table below. 
Agreement Year        Gross Revenues          Audited        Difference  Percentage Fee (10%)
2014 - 2015                 15,941,988                  15,952,358                      10,370                         1,037 
2015 - 2016                 15,136,848        15,223,338            86,490                         8,649 
2016 - 2017                 14,348,098                  14,354,814                       6,716                         672 
Total  $ 10,358 
Data Source: PeopleSoft Financials, Propworks, Thrifty records 
Recommendations: 
1. Seek and recover $10,358 in underpaid Percentage Fees. 
2. Assess the applicability of a one-time late charge and any accrued interest. 
3. Communicate with the Operator, to assure that future reported Gross Revenues include the items
listed above. 
Management Response / Action Plan 
Aviation Commercial Management will seek to recover the underpaid Percentage Fees, together with any
applicable late fees and interest charges. Aviation Commercial Management will also communicate both
verbally and in writing that the revenues identified above, are not permitted exclusions from revenue
according to the Agreement. Therefore, effectively immediately, those revenue items are required to be
included in their monthly reports of gross revenues provided to the Port. Revised reports that include
these excluded gross revenues, as well as payment of any additional Percentage Fees, will be requested
for those months that have transpired since the end of the audit period. 

DUE DATE: 12/31/2018 




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Thrifty Rent-A-Car, Inc.                                                                              INTERNAL AUDIT 
June 2014  May 2017 

2) RATING: MEDIUM 
The Agreement requires the Operator to remit the full amount of the CFC regardless of whether or not the
full amount is actually collected. In certain instances, Thrifty did not charge the CFC and as a result, did
not remit $111,912 to the Port. 
The lease Agreement under Section 6.2.1 stipulates: 
"Operatorshall collect a daily Customer Facility Charge on all vehicle rental transactions with Airport
CustomersEachOperator must collect the Customer Facility Charge at the time the first payment is
made for a qualifying vehicle rental transaction, and must remit the full amount of the Customer Facility
Charge to the Port regardless of whether or not the full amount of such Customer Facility Charge is
actually collected by the Operator from the person who rented the automobile." 
The Operator acknowledged the differences in CFC, which are summarized in the table below: 
Agreement Year              Reported           Audited        Difference
2014 - 2015                   2,130,900                  2,205,120                     74,220 
2015 - 2016                   2,151,438         2,187,720            36,282 
2016 - 2017                   2,090,460                  2,091,870                      1,410 
Total  $ 111,912 
Data Source: PeopleSoft Financials, Propworks, Thrifty records 
Recommendations 
1. Seek and recover the $111,912 in underpaid CFC's. 
2. Assess the applicability of a one-time late charge and any accrued interest. 
3. Communicate with the Operator, to assure  that future CFC's are remitted as required by the
Agreement. 
Management Response / Action Plan 
Aviation Commercial Management will seek to recover the underpaid CFC's, together with any applicable
late fees and interest charges, as well as the costs attributable to the CFC portion of the audit, which IA
calculated as $9,559.00.  Aviation Commercial Management will also communicate both verbally and in
writing to remind the Operator of their obligations with respect to collection and remittance of the CFC to
the Port. 
DUE DATE: 12/31/2018 




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Thrifty Rent-A-Car, Inc.                                                                              INTERNAL AUDIT 
June 2014  May 2017 

APPENDIX A: RISK RATINGS 
Findings identified during the course of the audit are assigned a risk rating, as outlined in the table below.
The risk rating is based on the financial, operational, compliance or reputational impact the issue identified
has on the Port. Items deemed "Low Risk" will be considered "Exit Items" and will not be brought to the
final report. 
Port
Rating        Financial        Internal Controls       Compliance          Public         Commission/
Management 
Large financial                                                        High
Noncompliance
impact                                                    probability for       Important 
Missing, or         with applicable
external audit
inadequate key     Federal, State, and
HIGH        Remiss in                                          issues and/or      Requires
internal controls      Local Laws, or Port
responsibilities of                                                        negative           immediate
Policies 
being a custodian                                                  public            attention 
of public trust                                                          perception 
Partial controls 
Potential for         Relatively
Inconsistent
external audit        important 
Not adequate to      compliance with
Moderate                                            issues and/or
MEDIUM                      identify       Federal, State, and
financial impact                                                       negative        May or may not
noncompliance or    Local Laws, or Port
public       require immediate
misappropriation          Policies 
perception          attention 
timely 
Internal controls in                                  Low
place but not                             probability for
Generally complies
consistently efficient                            external audit    Lower significance 
with Federal, State
Low financial          or effective                               issues and/or
LOW/                                      and Local Laws or
impact                                                       negative       May not require
Exit Items                                               Port Policies, but
Implementing/enhan                          public          immediate
some minor
cing controls could                            perception          attention 
discrepancies exist 
prevent future
problems 








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