INTERNAL AUDIT REPORT 
Limited Contract Compliance Audit 
EAN Holdings, LLC 
June 1, 2016  May 31, 2019 

Issue Date: November 26, 2019 
Report No. 2019-10 




INTERNAL AUDIT

EAN Holdings, LLC 

TABLE OF CONTENTS 

Executive Summary ................................................................................................................................................ 3 
Background ............................................................................................................................................................. 4 
Audit Scope and Methodology ............................................................................................................................... 5 
Schedule of Findings and Recommendations ....................................................................................................... 6 
Appendix A: Risk Ratings ....................................................................................................................................... 7 














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EAN Holdings, LLC 
Executive Summary 
Internal Audit (IA) completed an audit of the Consolidated Rental Car Facility Lease Agreement
between EAN Holdings, LLC (EAN) and the Port of Seattle (Port). In 2007, EAN, which does business
as Enterprise Rent-A-Car (Enterprise) acquired both Alamo Rent-A-Car and National Rent-A-Car. EAN 
pays the Port approximately $12 million annually in percentage fees and an additional $14 million in
Customer Facitlity Charges (CFC). 
The period audited was June 2016 through May 2019 and was performed to determine whether EAN
complied with significant provisions of the Agreement, including whether reported gross revenues and
percentage fees were complete and accurate. 
Our audit identified one medium rated issue: 
1. (Medium)  Internal Audit identified one late payment for the Percentage Fees owed for the month
of October 2016. As a result, a late fee of $6,159 is due to the Port. 
This issue is discussed in more detail beginning on page six of this report. 
We extend our appreciation to management and staff of the Aviation Commercial Management
Department  and the Accounting and Financial Reporting Department for their assistance and
cooperation during the audit. 


Glenn Fernandes, CPA 
Director, Internal Audit 







RESPONSIBLE MANAGEMENT TEAM 
Jim Schone, Director, Aviation Commercial Management 
Lance Lyttle, Managing Director, Aviation Director's Office 

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EAN Holdings, LLC 
Background 
In 2007, EAN Holdings, which does business as Enterprise Rent-A-Car (Enterprise) acquired Alamo
Rent-A-Car (Alamo) and National Rent-A-Car (National). As a result, Enterprise Holdings, Inc. was
formed and became the parent company of Alamo, National, and Enterprise. 
In 2009, the Port of Seattle (Port) entered into a Consolidated Rental Car Facility Lease Agreement
(Agreement) with Enterprise Leasing Company, doing business as Enterprise Rent-A-Car. The Port
also entered into separate lease agreements with National and Alamo. In June 2010, the Agreements
with  both  Alamo  and  National  were  terminated  and  incorporated  into  the  Enterprise  Leasing
Agreement under Exhibit O. This ammended agreeement was between the Port and EAN Holdings,
LLC. 
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. The Percentage Fee, if
applicable, is due on or before the 20th of the following month. 
The Agreement states that the Operator must bill a daily Customer Facility Charge (CFC) of $6 on all 
vehicle rental transactions, and remit the full amount to the Port, regardless of whether or not the full
amount is actually collected. The first transaction day provides a twenty five (25) hour period and a
twenty four (24) hour period for each successive day. 
The table below reflects the Gross Revenues, Percentage Fees, and CFC fees: 
Agreement Year                Gross Revenue        Percentage Fees               CFC Fees 
June 2016  May 2017             115,246,099             11,524,610               13,896,516 
June 2017  May 2018             117,857,108             11,785,711               13,711,296 
June 2018  May 2019             124,578,911              12,457,891               14,056,128 
Total                                 $357,682,118              $35,768,212                $41,663,940 
Data Source: PeopleSoft Financials 








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EAN Holdings, LLC 
Audit Scope and Methodology 
We conducted the engagement 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 conduct an engagement to obtain sufficient, appropriate evidence
to provide a reasonable basis for our findings and conclusions based on our engagement objectives.
We believe that the evidence obtained provides a reasonable basis for our findings and conclusions
based on our engagement objectives. 
The period audited was June 2016 through May 2019 and included the following procedures: 
Revenue Completeness and Accuracy 
Traced concession payments to Port records to verify payments were received by Agreement
dates. 
Agreed revenue reported to the Port, to the Operator's monthly revenue reports, charge
sheets, and to independently audited schedules. 
Customer Facility Charge 
Agreed Operator's audited CFC counts to daily transaction records. 
Re-calculated checkout and return dates to assess the accuracy of CFC charges. 
Compliance 
Determined whether the Concessionaire submitted an "Annual Report" for each Agreement
Year no later than 90 calendar days following the last day of each Agreement Year. 
Reviewed the Annual Report prepared by the Concessionaire and signed by the Chief
Financial Officer, or their designee, attesting the amounts shown. 
Determined if the Annual Report was audited by an independent certified public accounting firm
in accordance with GAGAS, attesting that the concession fee paid was properly calculated. 
Determined whether the Operator, through the Fuel Facility Manager, hired an independent
third party to conduct an annual Environmental Audit of the Consolidated Rental Facility. 
Determined if the results of the annual Environmental Audit were reviewed with the Port, no
later than 30 days following the commencement of each Agreement Year, and any issues were
remediated. 








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EAN Holdings, LLC 
Schedule of Findings and Recommendations 
1) Rating: M edium 
Internal Audit identified one late payment for the Percentage Fees owed for the month of
October 2016. As a result, a late fee of $6,159 is due to the Port. 
Section 5.2 of Exhibit O states "If any payment of Concession Fees or other sum or charge
otherwise payable by Concessionaire is not received by the Port within ten (10) days of when due,
Concessionaire shall pay to the Port a late payment charge equal to five percent (5%) of the
overdue amount." 
The percentage fees for each month shall be paid on or before the twentieth (20th) day of the
following month. EAN paid the percentage fees for October 2016 on December 5, 2016, which is 
five days after the allowed grace period of ten days. As a result, a late fee of $6,159 is due to the
Port. 
The table below reflects the calculation of the $6,159 owed: 
Period                   Date paid          Date Due        Concession Fees        Late fee (5%) 
October 2016            12/05/16          11/20/16               $123,183              $6,159 
Recommendations: 
1. Seek and recover $6,159 in late fee. 
Management Response/Action Plan: 
Aviation Commercial Management will seek to recover the late fee for October 2016 concession fees,
which Internal Audit calculated as $6,159. Aviation Commercial Management will also reach out to the
tenant to ensure awareness that payments should be received by the due date stated in the
agreement or outstanding amounts will be subject to late fees. Currently, Port contracts have varying
terms regarding due dates and grace periods, among others, which complicates the potential for
automating the calculation of late fees. These complications contribute to the current semi-monthly
manual process, which calculates fees on prescribed dates. Thus, there is a risk of missed late fees,
such as the one identified in this audit report, due to the varying terms in the Port's agreements.
Aviation Commercial Management will work with the Port's Accounting and Financial Reporting
department, which runs the late fee process, to find opportunities to standardize agreement terms
when contracts are executed or renewed. 




DUE DATE: 12/31/2019 

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EAN Holdings, LLC 
Appendix A: Risk Ratings 
Findings identified during the audit are assigned a risk rating, as outlined in the table below. Only one
of the criteria needs to be met for a finding to be rated High, Medium, or Low. Findings rated Low will
be evaluated and may or may not be reflected in the final report. 
Financial      Internal                                               Commission/
Rating                                   Compliance      Public 
Stewardship  Controls                                         Management 
High probability
Non-compliance
Missing or not                       for external audit   Requires
with Laws, Port
High       Significant     followed                          issues and / or     immediate
Policies,
negative public     attention 
Contracts 
perception 
Partial              Potential for
Partial controls 
compliance with   external audit
Requires
Medium   Moderate                  Laws, Port       issues and / or
Not functioning                                          attention 
Policies            negative public
effectively 
Contracts          perception 
Functioning as
Low probability
intended but     Mostly complies                       Does not
for external audit
could be        with Laws, Port                       require
Low      Minimal                                    issues and/or
enhanced to     Policies,                            immediate
negative public
improve        Contracts                           attention 
perception 
efficiency 











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