Applying Agreed-Upon Procedures: Fiscal Year 2010 Highway Trust Fund Excise Taxes

We have performed the procedures described in this letter, which we agreed to perform and with which the Inspector General of the U.S. Department of Transportation concurred, solely to assist the Inspector General's office in ascertaining whether the net excise tax revenue distributed to the Highway Trust Fund (HTF) for the fiscal year ended September 30, 2010, is supported by the underlying records. As agreed with the Inspector Generals' office, we evaluated fiscal year 2010 activity affecting excise tax distributions to the HTF. We conducted the engagement in accordance with U.S. generally accepted government auditing standards, which incorporate certain financial audit and attestation standards established by the American Institute of Certified Public Accountants. The Inspector General is responsible for the adequacy of these agreed-upon procedures to meet your objectives, 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 from the general fund to the HTF during fiscal year 2010, (2) the Internal Revenue Service's (IRS) quarterly HTF excise tax receipt certifications prepared during fiscal year 2010, (3) the U.S. Department of the Treasury's Financial Management Service adjustments to HTF excise tax distributions during fiscal year 2010, (4) the U.S. Department of the Treasury's Office of Tax Analysis's (OTA) estimates of excise tax amounts to be distributed to the HTF for the fourth quarter of fiscal year 2010, (5) adjustments to the HTF for tax on kerosene used in aviation during fiscal year 2010, and (6) the amount of net excise taxes distributed to the HTF during fiscal year 2010.