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

GAO-07-132R Published: Nov 03, 2006. Publicly Released: Nov 03, 2006.
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We assisted the Department of Transportation (DOT) in ascertaining whether the net excise tax revenue distributed to the Airport and Airway Trust Fund (AATF) for the fiscal year ended September 30, 2006, is supported by the underlying records. As agreed with the DOT Office of Inspector General, we evaluated fiscal year 2006 activity affecting distributions to the AATF. 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. These standards also provide guidance for performing and reporting the results of agreed-upon procedures. The adequacy of the procedures to meet DOT's objectives is the department's responsibility, and we make no representation in that respect. The procedures we agreed to perform were related to (1) detailed tests of transactions that represent the underlying basis of amounts distributed to the AATF, (2) Internal Revenue Service's (IRS) quarterly AATF certifications, (3) Department of the Treasury's Financial Management Service adjustments to the AATF during fiscal year 2006, (4) IRS's precertification of receipts for each quarter completed in fiscal year 2006, (5) certain procedures of the Department of the Treasury's Office of Tax Analysis' (OTA) process for estimating amounts to be distributed to the AATF for the fourth quarter of fiscal year 2006, and other procedures related to (6) the net amount of fiscal year 2006 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 Department of the Treasury records.

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