And they found the England boss DID make racist jokes at the expense of Aluko and Drew Spence, before issuing a grovelling apology to the two players.
Aluko, giving evidence to the Digital, Culture, Media and Sport select committee, said: "I feel vindicated and relieved".
But perhaps the most bruising exchange was when Glenn claimed an interview he gave to The Guardian last month, in which he said he picked Newton to do the review because she is black, was an "embellishment" because he was exhausted after a long day.
Aluko had claimed that Sampson had told her to be careful that her Nigerian relatives did not bring the Ebola virus with them when they came to watch a game at Wembley.
He denied that claim as well as another allegation that he asked Ms Spence, of mixed race, if she had been arrested before, then jokingly suggesting she had been arrested four times.
Newton's first review, completed in March, backed the FA verdict that there was insufficient evidence to say whether Sampson made these remarks, and cleared him of Aluko's other claims of bullying and racism.
"On August 30 Eniola tweeted: "At least we now know the FA's stance on derogatory racial remarks by an England manager".
Aluko, who previously accepted compensation of £80,000 ($105,000) from the FA, said she felt "vindicated".
In a statement responding to Newton's new report, FA chief executive Martin Glenn said: "On behalf of the Football Association I would like to sincerely apologise to Eniola Aluko and Drew Spence".
In the conclusion to her reopened investigation into Aluko's claims, Newton said: "I have concluded that on two separate occasions, (Mark Sampson) has made ill-judged attempts at humour, which, as a matter of law, were discriminatory on grounds of race within the meaning of the Equality Act 2010. Ignore, deny, endorse. In that order".
"I believed that bordered on blackmail".
Mark Sampson, 35, was found to have made "ill-judged attempts at humour" when speaking to players Eniola Aluko and Drew Spence.
"I could have come in and said, well Katharine Newton said there's no evidence of bullying, of systemic racism".
Aluko, who has not been picked for England since making the allegations, went on to question whether a similar complaint from a male player would have received the same response. I categorically refused to write any statement.
Aluko also insisted the payment was not "hush money" but payment for future loss of earnings, stating "nobody said 'how much can we pay you to be silent?' That didn't happen and I wouldn't agree to that".
"I would never say the FA are institutionally racist". Having done so, I conclude that they should.
Sampson, who guided the team to the semi-finals of the 2015 World Cup and this year's European Championships, was sacked last month after FA chiefs were alerted to what it termed an "inappropriate" relationship he had with a player in a previous job. I can not say I have been completely isolated.
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