Examination of Financial Statements of the Panama Canal Commission for the Years Ended September 30, 1981 and 1980

GAO reviewed the first 2 years of operation of the Panama Canal Commission, fiscal years (FY) 1980 and 1981. The report includes an audit of the Commission's financial transactions, schedules of property transferred by the Commission, and costs incurred by other U.S. agencies to implement the Panama Canal Treaty of 1977.

GAO found that the Commission's decision to compute interest on a portion of the U.S. investment is consistent with its predecessor agencies' practice. GAO is not certain that the United States contemplated continuation of that practice when the Panama Canal Act of 1979 was passed and is continuing to pursue the matter. The act directed that the problems faced by the Commission in FY 1980 be taken into account when evaluating the first year's financial statements and that no adverse action be taken as long as the Commission was in substantial compliance with the act. GAO believes that the Commission's financial statements represent the actual financial position of the Commission at FY 1980 and FY 1981, the results of operations and changes in U.S. investment, and the changes in financial position for the years ended.