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The report accompanying these procedures was issued by BDO USA, P.C., a Virginia professional corporation and the U.S. member of BDO International Limited, a UK company limited by guarantee. Government of the United States Virgin Islands Agreed-Upon Procedures Report Gross Receipts Tax Collections Quarter Ended June 30, 2024 Government of the United States Virgin Islands Agreed-Upon Procedures Report Gross Receipts Tax Collections Quarter Ended June 30, 2024 BDO USA, P.C., a Virginia professional corporation, is the U.S. member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. BDO is the brand name for the BDO network and for each of the BDO Member Firms 2 Tel: 301-354-2500 Fax: 301-354-2501 www.bdo.com 12505 Park Potomac Ave, Suite 700 Potomac, MD 20854 Independent Accountant’s Report To the Commissioner Department of Finance Government of the United States Virgin Islands We have performed the procedures enumerated below on the gross receipts tax collections of the Government of the United States Virgin Islands (the Government) for the quarter ended June 30, 2024. The Government is responsible for its gross receipts tax collections records for the quarter ended June 30, 2024. The Government has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of assisting in evaluating the Government’s assertion that the Government’s gross receipts tax collections for the quarter ended June 30, 2024, are accurate and complete. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes. We make no representation regarding the sufficiency of the procedures described below, either for the purpose for which the report has been requested or for any other purpose. The procedures and the associated findings are as follows: 1. We read Sections 43, 44, and 45 of Subtitle 1 of Title 33 of the Virgin Islands’ Code, applicable to the imposition and collection of gross receipts taxes. 2. We obtained the monthly gross receipts tax collections for the quarter ended June 30, 2024, from the monthly "Unaudited General Fund Statement of Revenue" prepared by the Revenue Audit Division of the Government’s Department of Finance. 3. We obtained from management of the Government, the First Bank (the Collecting Agent) account statements, which include deposits of the monthly gross receipts tax revenue collected for each of the three months in the quarter ended June 30, 2024. 4. For the quarter ended June 30, 2024, we obtained the "General Fund Daily Distribution Worksheets" prepared by the Revenue Audit Division of the Government’s Department of Finance. We then added the total daily gross receipts tax collections as presented in the "General Fund Daily Distribution Worksheets" for each of the three months in the quarter ended June 30, 2024, and compared the sum of those amounts to the monthly gross receipts tax collections as presented in the monthly "Unaudited General Fund Statement of Revenue" reports and observed the following: 3 Gross Receipts Tax Collections Month 2024 Unaudited General Fund Statement of Revenue General Fund Daily Distribution Worksheets Difference April $ 20,894,065 $ 21,408,648 $ (514,583) May 20,729,425 20,778,040 (48,615) June 14,710,786 14,775,654 (64,868) $ 56,334,276 $ 56,962,342 $ (628,066) The Government has represented that the differences observed between the sum of the total daily gross receipts tax collections as presented in the "General Fund Daily Distribution Worksheets" and the monthly gross receipts tax collections presented in the "Unaudited General Fund Statement of Revenue" are due to checks returned by the banks for non-sufficient funds (NSF) and amounts appropriated for the Moderate Income Housing Fund as mandated by the Legislature that are reflected in the "Unaudited General Fund Statement of Revenue" as a reduction in the gross receipts tax collections. We compared the resulting differences presented in the above table to the total monthly NSF checks per the First Bank monthly statements, and observed the following: Month 2024 Total Difference From Above Returned Checks Deposited in First Bank Others April $ (514,583) $ (14,583) $ (500,000) ) May (48,615) (48,615) - June (64,868) (64,868) - $ (628,066) $ (128,066) $ (500,000) ) 5. For the quarter ended June 30, 2024, we compared the total daily gross receipts taxes collected as presented in the "General Fund Daily Distribution Worksheets" with the amounts deposited in First Bank (the Collecting Agent) as per the bank statements. Identified differences are documented in procedure No. 6. 4 6. We compared the total of the daily gross receipts tax collections, as derived from procedure No. 4, per the "General Fund Daily Distribution Worksheets" to the total amounts deposited in the First Bank gross receipts tax collections bank account, for each of the three months in the quarter ended June 30, 2024, and observed the following: Month 2024 General Fund Daily Distribution Worksheets First Bank Account Statements Difference April $ 21,408,648 $ 21,355,775 $ 52,873 May 20,778,040 20,745,822 32,218 June 14,775,654 14,764,607 11,047 $ 56,962,342 $ 56,866,204 $ 96,138 The Government has represented that the differences observed between the totals of the daily gross receipts tax collections per the "General Fund Daily Distribution Worksheets" and the bank statements were caused by the following: Description April Amount Interest earned during April 2024 $ 180 Amounts not related to gross receipts tax deposited in the First Bank account that are pending to be withdrawn and deposited to the correct bank account 2,855 Gross receipts tax erroneously deposited in a different bank account, which are pending to be withdrawn and deposited to the First Bank account (55,908) Total difference identified (52,873) Total difference reported 52,873 Difference unidentified by the Government $ - 5 Description May Amount Interest earned during May 2024 $ 175 Amounts not related to gross receipts tax deposited in the First Bank account that are pending to be withdrawn and deposited to the correct bank account 2,969 Gross receipts tax erroneously deposited in a different bank account, which are pending to be withdrawn and deposited to the First Bank account (35,362) Total difference identified (32,218) Total difference reported 32,218 Difference unidentified by the Government $ - Description June Amount Interest earned during June 2024 $ 127 Amounts not related to gross receipts tax deposited in the First Bank account that are pending to be withdrawn and deposited to the correct bank account 2,328 Gross receipts tax erroneously deposited in a different bank account, which are pending to be withdrawn and deposited to the First Bank account (13,502) Total difference identified (11,047) Total difference reported 11,047 Difference unidentified by the Government $ - 6 We were engaged by the Government to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the gross receipts tax collections of the Government for the quarter ended June 30, 2024. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. We are required to be independent of the Government and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed- upon procedures engagement. This report is intended solely for the information and use of the Government of the United States Virgin Islands and the Virgin Islands Public Finance Authority, and is not intended to be, and should not be, used by anyone other than these specified parties. September 13, 2024