United States Government Accountability Office GAO November 2004 Report to the Secretary of the Treasury _part8 docx

Financial Statements Page 116 GAO-05-103 IRS’s Fiscal Years 2004 and 2003 Financial Statements Internal Revenue Service Notes to the Financial Statements For the Years Ended September 30, 2004 and 2003 - 20 - Note 10. Liabilities Not Covered by Budgetary Resources (In Millions) Liabilities not covered by budgetary resources as of September 30, 2004 and 2003, consist of the following: 2004 2003 Intra- Governmental With the Public Intra- Governmental With the Public Workers’ compensation $ 92 $ 547 $ 91 $ 533 Accrued annual leave - 456 - 434 Capital lease liability - 51 - 102 Note 11. Appropria- tions Received Appropriations received reported in the Statement of Budgetary Resources in FY 2004 and FY 2003, include $84 million and $76 million, respectively, in user fees received from the public for services provided. These funds are retained by the agency to reduce its net cost of operations. Obligated balances as of September 30, 2004 and 2003, in the Statement of Budgetary Resources are as follows: 2004 2003 Undelivered orders – unpaid $ (718) $ (678) Budgetary accounts payable (462) (606) Budgetary accounts receivable 19 18 Note 12. Obligated Balances (In Millions) Total Obligated Balances $ (1,161) $ (1,266) Note 13. Non-entity Assets (In Millions) Non-entity assets arise from the Service’s custodial duty to collect taxes, disburse tax refunds and maintain proper accounting for these activities in the books and records of the Service. Non-entity assets as of September 30, 2004 and 2003, consist of the following: 2004 2003 Intra- Governmental With the Public Intra- Governmental With the Public Due from Treasury $ 1,801 $ - $ 1,193 $ - Federal taxes receivable, net of allowance for doubtful accounts - 20,000 - 20,000 Other custodial assets - 83 - 116 Due from Treasury represents tax refunds due to taxpayers but not disbursed as of September 30, 2004 and 2003. Federal taxes receivable are transferred to Treasury upon receipt. An amount equal to federal taxes receivable has been recognized as an offsetting intragovernmental liability – Due to Treasury. Federal taxes receivable is described in more detail in Note 5. Other custodial assets, also discussed in Note 3, primarily relate to seized monies and the deposits received from taxpayers, pending application of the funds to unpaid tax assessments. This is trial version www.adultpdf.com . accounting for these activities in the books and records of the Service. Non-entity assets as of September 30, 2004 and 2003, consist of the following: 2004 2003 Intra- Governmental With the Public Intra-. covered by budgetary resources as of September 30, 2004 and 2003, consist of the following: 2004 2003 Intra- Governmental With the Public Intra- Governmental With the Public Workers’ compensation. are retained by the agency to reduce its net cost of operations. Obligated balances as of September 30, 2004 and 2003, in the Statement of Budgetary Resources are as follows: 2004 2003 Undelivered