We have performed the procedures contained in the enclosure to this report, which we agreed to perform, solely to assist the Department of Labor in ascertaining whether the net federal unemployment tax (FUTA) revenue distributed to the Unemployment Trust Fund (UTF) for the fiscal year ended September 30, 2003, is supported by the underlying records. As agreed with the Inspector General, we evaluated fiscal year 2003 activity affecting distributions to the UTF.
The adequacy of the procedures to meet Labor's objectives is Labor's responsibility and we make no representation in that respect. The procedures we agreed to perform include (1) detailed tests of transactions that represent the underlying basis of amounts distributed to the UTF and (2) review of key reconciliations of the Internal Revenue Service (IRS) records to the Department of the Treasury records. The enclosure contains the agreed-upon procedures and our findings from performing each of the procedures. We were not engaged to perform, and did not perform, an audit, the objective of which would have been the expression of an opinion on the net amount of FUTA taxes distributed to the UTF. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported. We completed the agreed-upon procedures on October 31, 2003.
Click here for the full GAO Report, PDF Version, 7pgs. 47K