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

GAO-08-203R Published: Nov 02, 2007. Publicly Released: Nov 02, 2007.
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We have performed the procedures contained in the enclosure to this report, which we agreed to perform and with which the Department of Transportation (DOT) concurred, solely to assist DOT's office in ascertaining whether the net excise tax revenue distributed to the Airport and Airway Trust Fund (AATF) for the fiscal year ended September 30, 2007, is supported by the underlying records. As agreed with DOT's office, we evaluated fiscal year 2007 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 your objectives is your responsibility, and we make no representation in that respect. The procedures we agreed to perform were related to (1) transactions that represent the underlying basis of amounts distributed to the AATF, (2) the Internal Revenue Service's (IRS) quarterly AATF receipt certifications, (3) the Department of the Treasury's Financial Management Service adjustments to the AATF during fiscal year 2007, (4) the Department of the Treasury's Office of Tax Analysis's (OTA) process for estimating excise tax amounts to be distributed to the AATF for the fourth quarter of fiscal year 2007, and other procedures related to (5) adjustments to the AATF for tax on kerosene used in aviation, (6) the net amount of fiscal year 2007 excise taxes distributed to the AATF, and (7) transactions that represent total IRS tax revenue receipts and refunds.

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