Internal Audit Report 

Enterprise Holdings, LLC 
DBA/Enterprise Rent-A-Car 

Lease and Concession Compliance Audit 

November 1, 2007 through October 31, 2010 




Issue Date: September 07, 2011 
Report No. 2011-18

Internal Audit 
Enterprise Holdings, LLC (DBA/Enterprise Rent-A-Car) 
November 1, 2007  October 31, 2010 

Table of Contents 
Transmittal Letter .............................................................................................................. 3 
Executive Summary .......................................................................................................... 4 
Background ....................................................................................................................... 5 
Audit Objective .................................................................................................................. 5 
Audit Scope and Methodology ......................................................................................... 6 
Conclusion ......................................................................................................................... 7 












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Internal Audit 
Enterprise Holdings, LLC (DBA/Enterprise Rent-A-Car) 
November 1, 2007  October 31, 2010 

Transmittal Letter 
We have completed an audit of the Lease and Concession Agreement, as amended, between
the Port of Seattle and Enterprise Holdings, LLC (DBA/Enterprise Rent-A-Car). The purpose of
the audit was to determine whether: 
1)  Reported concession was complete, properly calculated, and remitted timely to the Port. 
2)  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 information related to a three-year period from November 1, 2007,through 
October 31, 2010. 
We conducted the audit using due professional care. We planned and performed the audit to
obtain reasonable assurance as to compliance with significant provisions of the agreement,
including complete and timely reporting of concessionable revenues. 
Enterprise Holdings, LLC materially complied with the terms of the Lease and Concession
agreement, as amended. 
We extend our appreciation to the management and staff of Aviation Business Development,
and Accounting & Financial Reporting for their assistance and cooperation during the audit. 


Joyce Kirangi, CPA 
Director, Internal Audit 






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Internal Audit 
Enterprise Holdings, LLC (DBA/Enterprise Rent-A-Car) 
November 1, 2007  October 31, 2010 

Executive Summary 
Audit Scope and Objective The purpose of the audit was to determine the following: 
1)  Reported concession was complete, properly calculated, and remitted timely to the Port. 
2)  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 Enterprise Rent-A-Car for a three-year period from
November 1, 2007 through October 31, 2010. Aviation Business Development, in conjunction
with Accounting and Financial Reporting (AFR), 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) of 80% 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. 
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 annum from the due date until paid. 

Audit Result Summary  Enterprise Rent-A-Car materially complied with the terms of the
Lease and Concession agreement, as amended. However, the audit disclosed minor instances
of gross revenue deductions thereby reducing concession fee slightly. 



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Internal Audit 
Enterprise Holdings, LLC (DBA/Enterprise Rent-A-Car) 
November 1, 2007  October 31, 2010 

Background 
Enterprise Rent-A-Car (ERAC), a wholly-owned subsidiary of Enterprise Holdings, LLC, rents
vehicles to consumers under the Enterprise brand. The company also operates Alamo and
National Rent-A-Car. Currently, ERAC has two locations at/around the airport that could be
subject to concession as defined in the agreement. ERAC has a counter at the Airport and
another off-airport location within a three (3) mile radius of the Airport's boundary. 
The terms of the agreement provide for a Minimum Annual Guarantee (MAG) of 80% of the
total amount paid or payable to the Port in the previous agreement year. Additionally, the
agreement requires a Percentage Fee of 10% of gross revenues to the extent 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, and without setoff or deduction. 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 annum from the due date until paid. 
Below are the financial highlights for the last three fiscal years: 
Fiscal      Reported        Paid 
Year    Gross Revenue   Concession 
2007-2008    $18,888,053     $1,888,807 
2008-2009     19,881,323      1,988,131 
2009-2010     21,672,584      2,167,258 
Total         $60,441,960      $6,044,196 
Source: PROPWorks and PeopleSoft 

Audit Objective 
The purpose of the audit was to determine the following: 
1)  Reported concession was complete, properly calculated, and remitted timely to the Port. 
2)  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. 
The scope of the audit covered the period of November 1, 2007, through October 31, 2010. 

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Internal Audit 
Enterprise Holdings, LLC (DBA/Enterprise Rent-A-Car) 
November 1, 2007  October 31, 2010 

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. The audit
approach was risk-based from planning to test sampling. We applied additional detailed audit
procedures to areas with the highest likelihood of significant negative impact as follows: 
Timely Payment               CPA certified Annual Report 
Insurance liability                 Concessionable revenue 
Surety Bond/Security Deposit        Customer Facility Charge (CFC) 

a.  Timely Payment 
We reviewed payment records to determine whether the lessee complied with the required
due date. 
b.  Insurance Liability 
To determine  compliance with insurance requirements, we reconciled insurance
requirements to the coverage reflected in the certificate of insurance in force for the audit 
period. 
c.  Surety Bond/Security Deposit 
We reviewed surety requirements as stipulated in the agreement. We agreed the
requirement to Surety Bond to determine compliance. 
d.  CPA Certified Annual Report 
We reviewed audit reports for the audit period to determine compliance with the timely and
complete submission of the report. 
e.  Concession Revenue 
To determine whether the lessee completely reported all concessionable revenues, we
selected a risk-based sample of 766 closed rental transactions. Each  transaction was 
analyzed, recalculated, and agreed to the rental agreement to determine whether the
lessee: 
Completely captured all concession items 
Properly and accurately calculated concession items 
Further, we analyzed and agreed the reported monthly concession revenue for the audit 
period to the lessee's accounting records (general ledger and detailed revenue) to ensure
complete reporting to the Port of Seattle. 
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Internal Audit 
Enterprise Holdings, LLC (DBA/Enterprise Rent-A-Car) 
November 1, 2007  October 31, 2010 

f.   Customer Facility Charge 
We reviewed each rental agreement in the risk-based sample of 766 closed rental
transactions to ensure proper charging, timely collection, and complete remittance of CFC to
the Port as required in the agreement. 

Conclusion 
Enterprise Rent-A-Car  materially complied with the terms of the Lease and Concession
agreement, as amended. However, the audit disclosed minor instances of gross revenue
deductions thereby reducing concession fee slightly. 













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