Agreed-Upon Procedures

Pursuant to a legislative requirement, GAO reviewed whether the net excise tax revenue distributed to the Black Lung Disability Trust Fund (BLDTF) for the fiscal year (FY) ended September 30, 1998, is supported by the underlying records.

GAO noted that: (1) this engagement to apply agreed-upon procedures was performed in accordance with standards established by the American Institute of Certified Public Accountants (AICPA); (2) the procedures GAO agreed to perform include: (a) detailed tests of transactions that represent the underlying basis of amounts distributed to BLDTF; (b) review of the Internal Revenue Service's (IRS) quarterly BLDTF certifications; (c) review the Financial Management Service's adjustments to BLDTF for FY 1998; (d) review of the Office of Tax Analysis' process for estimating amounts to be distributed to BLDTF for the fourth quarter of FY 1998; (e) comparison of net excise tax distributions to BLDTF during FY 1998 and amounts reported in the financial statements prepared by the Bureau of Public Debt for BLDTF and the Department of Labor's consolidated financial statements; and (f) review of key reconciliations of IRS records to Treasury records; (3) GAO was not engaged to, and did not, perform an audit, the objective of which would be the expression of an opinion on the net excise taxes distributed to BLDTF; (4) in performing the agreed-upon procedures, GAO conducted its own work in accordance with generally accepted government auditing standards, which incorporate financial audit and attestation standards established by the AICPA; and (5) these standards also provide guidance when performing and reporting the results of agreed-upon procedures.