Pursuant to a legislative requirement, GAO reviewed the results of its audit of the financial statements of the District of Columbia Highway Trust Fund for the fiscal year (FY) ended September 30, 1997, and its examination of the forecasted statements of the Fund's expected conditions and operations for the next 5 years, focusing on: (1) GAO's opinion on District management's assertion regarding the effectiveness of the Fund's internal controls as of September 30, 1997; and (2) the results of GAO's evaluation of the District's compliance with laws and regulations during FY 1997 as they relate to the Fund.
Recommendations for Executive Action
|Office of Tax and Revenue||1. To address the newly reported revenue-related weaknesses discussed in this report, the Director, Office of Tax and Revenue, should establish control procedures to investigate instances in which unlicensed wholesalers submit tax returns or licensed wholesalers do not submit monthly returns.|
|Office of Tax and Revenue||2. To address the newly reported revenue-related weaknesses identified in this report, the Director, Office of Tax and Revenue, should establish control procedures to: (1) review each monthly tax return for completeness and accuracy; (2) reject incomplete and erroneous monthly tax returns; and (3) contact wholesalers if returns are rejected and follow up to ensure complete, accurate, and adequately documented monthly tax returns.|
|Office of Tax and Revenue||3. To address the newly reported-revenue related weaknesses identified in this report, the Director, Office of Tax and Revenue, should enforce implementation of the D.C. Code Ann. section 47-2303 requirement of a $5 annual license fee for a motor vehicle fuel license and implement procedures to repay licensed wholesalers who overpaid during the past 3 years.|