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.
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