U.S. Department 

of Transporta1ion 

Federal Aviation 

Administration 

September 3, 2015 

Carlene V. Mcintyre, Esq. 

Assistant General Counsel 

Office of Airport Compliance 

and Management Analysis 

Port Authority of New York and New Jersey 

225 Park Avenue South, 15th Floor 

New York, NY 10003 

Dear Ms. Mcintyre: 

800 Independence Ave., SW. 

Washington, DC 20591 

On December 10,2014, United Airlines (United) filed a 14 CFR Part 16 Complaint, FAA 

Docket No. 16-14-13, against the Port Authority ofNew York and New Jersey (PANYNJ), 

operator of Newark Liberty International Airport (EWR), New Jersey. Subsequently, both 

parties submitted pleadings as provided for in 14 CFR § 16.23 in support of their respective 

positions. 

The Director has reviewed all the submissions and has concluded that there appears to be a 

reasonable basis for further investigation. As a result, pursuant to 14 CFR § 16.29 (b )(3) and 

14 CFR § 16.11 (a), the Director is conducting a review of certain airport financial records 

and transactions concerning PANYNJ's aviation activities, including records specifically 

related to EWR. 

As part of the investigation, the Director has contracted Ernst & Young LLP (EY) to provide 

support services for the above-mentioned financial review. The Director has requested EY to 

perform the following services to include: (1) examining PANYNJ's "grandfathered" 

expenditures; (2) examining the extent ofPANYNJ's "grandfathered" status and 

methodology; and (3) examining PANYNJ's revenue use. As part of this effort, EY is 

required by their contract to visit P ANYNJ and EWR offices for the purpose of collecting 

required information, identifying compliance issues, and reporting to the Director. 

The Director proposes to begin this phase of the investigation on September 15, 2015. It will 

be necessary for EY staff members to visit the PANYNJ and EWR offices to review 

documents related to PANYNJ "grandfathering" and EWR revenue use. We would 

appreciate it if you would facilitate our efforts by notifying the appropriate officials ofEY's 

visit. Additionally, please make arrangements to ensure EY's access to the requested 

financial records and to key staff members. 
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Enclosed is FAA's data request, which lists documents EY will be reviewing. As they 

analyze the information provided, EY may request additional documents for clarification as 

required. Please have these documents available at the beginning ofEY's review, September 

15, 2015. Early electronic submission is encouraged. 

Please have your liaison contact Mr. Burton Marshall, at (202) 267-4393 or via email 

Burton.Marshall@faa.gov, to coordinate the time and location of our entrance conference, 

proposed attendees, and data request. Mr. Marshall will be attending the entrance conference 

and is also available to answer questions about this process. 

Sincerely, 

Direc or of Airport Compliance 

anagement Analysis 

cc: Robert S. Span 

Steinbrecher & Span LLP 

Marc L. Warren 

Crowell & Moring LLP 

Enclosure 
FAA Airport Compliance 

Port Authority of NY/NJ 

Data Request for all Port Authority of New York and New Jersey (PANYNJ) airports 

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uarterly reports on grandfathered cost calculations for years quarterly reports were required as part of PANYNJ "pay b

n for FY 2011 and FY 2012. 

Direct and indirect cost allocation plans detailing cost allocation methodology and calculations from police, fire, legal, fle

any administrative service departments for FY 2009 through FY 2014. During the on-site phase of the analysis, we will a

require access to personnel from these departments to explain the allocation of costs to the airports. 

List of projects, business lines, or administrative units that benefited from grandfathered funds from FY 2009 to FY 2014

Note: If documentation can be provided ahead of time, we kindly ask that you please provide it at your earliest convenience. If 

the documentation is not available please indicate such with an explanation as to why. This list is subject to change based on o

inquiries with process owners and analysis of documentation. Additional data requests may be made throughout the analysis. 

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FAA Airport Compliance 

Newark Liberty International Airport 

Data Request for Newark Liberty International Airport CEWRl 

Annual Trial Balances for FY 2009- FY 2014, and any amendments to the FY 2014 Financial Statement balances. W

be requesting assistance with reconciling FAA Form 5100-127: Operating and Financial Summary for the airport and 

5100-126: Financial Government Payment Report to the Trial Balance and then to the Port Authority of New York an

Jersey (PANYNJ) Financial Statements. In addition, the Trial Balances will be used as a basis for our account analy

3 lA schedule with supporting documentation of State and local government/ (PANYNJ) reimbursements to the airport. 

Schedules of Rates and Charges between the State and local governments/ PANYNJ and the airport. These transa

should include both direct and indirect billings from State and local governmental departments. Please include billing

4 I supporting documentation between the airport and the State and any local governments/ PANYNJ. Documentation s

include a schedule of inter-fund transfers for FY 2009 through FY 2014 between the airport proprietary fund and all o

funds. 

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FAA Airport Compliance 

Newark Liberty International Airport 

Data Request for Newark Liberty International Airport (EWRl 

Note: If documentation can be provided ahead of time, we kindly ask that you please provide it at your earliest convenience. If a

documentation is not available please indicate such with an explanation as to why. This list is subject to change based on our i

with process owners and analysis of documentation. Additional data requests may be made throughout the analysis. 

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