Report of Independent Auditor - Opinion on Financial Statements (Reissued June 30, 2005)

The HTF financial statements comprise the Highway Corpus Trust Fund, held by the Department of Treasury Bureau of Public Debt, and certain accounts of the following Operating Administrations (Agency) of DOT: Federal Highway Administration (FHWA), National Highway Traffic Safety Administration (NHTSA), Federal Transit Administration (FTA), Federal Railroad Administration (FRA), and Federal Motor Carrier Safety Administration (FMCSA), and the Bureau of Transportation Statistics (BTS).

The financial statements including the accompanying notes present fairly, in all material respects, in conformity with accounting principles generally accepted in the United States of America, HTF's assets, liabilities, and net position as of September 30, 2004 and 2003; and their related net costs; changes in net position; budgetary resources; and reconciliation of net costs to budgetary obligations for the years then ended.

As discussed in Note 1, Summary of Significant Accounting Policies, and Note 11, Excise Taxes and Associated Revenue, the accompanying financial statements reflect actual excise tax collections\revenue through March 31, 2004 and excise tax collections\revenue estimated by the Department of Treasury's Office of Tax Analysis for the two quarters ended June 30, 2004 and September 30, 2004.

As discussed in Note 14 to the financial statements, certain errors resulting in an overstatement of previously reported Unobligated Balance – Beginning of Period and Unobligated Balance Not Available, and an understatement of previously reported Appropriation Received as of September 30, 2003, were discovered by management of DOT during the current year. Adjustments to correct these errors resulted in a net reduction of Total Budgetary Resources at September 30, 2003.

As discussed in Note 15 to the financial statements, after the issuance of our report on such financial statements in November 2004, certain errors were discovered by management in the Combined Statement of Budgetary Resources (SBR) for the year ended September 30, 2004. Such errors resulted in an understatement of previously reported Total Budgetary Resources and changes to related line items in the SBR. Accordingly, adjustments have been made to correct these errors resulting in a net increase in Total Budgetary Resources of $2.966 billion at September 30, 2004. In addition, certain related information in Note 12 has been updated.