Applying Agreed-Upon Procedures: Airport and Airway Trust Fund Excise Taxes

We assisted the Department of Transportation in ascertaining whether the net excise tax revenue distributed to the Airport and Airway Trust Fund (AATF) for the fiscal year ended September 30, 2004, is supported by the underlying records. In performing the agreed-upon procedures, we conducted our work in accordance with U.S. generally accepted government auditing standards, which incorporate financial audit and attestation standards established by the American Institute of Certified Public Accountants. The procedures we agreed to perform were (1) transactions that represent the underlying basis of amounts distributed to the AATF, (2) the Internal Revenue Service's (IRS) quarterly AATF certifications, (3) the Department of the Treasury's Financial Management Service adjustments to the AATF for fiscal year 2005, (4) IRS's precertification of receipts for the second and third quarters of fiscal year 2005, (5) certain procedures of the Department of the Treasury's Office of Tax Analysis' (OTA) estimation procedures affecting excise tax distributions to the AATF for the fourth quarter of fiscal year 2005, and other procedures including (6) the net amount of fiscal year 2005 excise taxes distributed to the AATF, (7) transactions that represent total IRS tax revenue receipts and refunds, and (8) key reconciliations of IRS records to Treasury records.