Comptroller General of the United States United States General Accounting Office Washington, D.C. 20548 Comptroller General of the United States To the Board of Directors Panama Canal Commission Our audits of the Panama Canal Commission found the fiscal years 1995 and 1994 financial statements to be reliable in all material respects; although certain internal controls to help assure compliance with a statutory spending limitation should be improved, management fairly stated that internal controls in place on September 30, 1995, were effective in safeguarding assets from material loss, assuring material compliance with laws governing the use of budget authority and with other relevant laws and regulations, and assuring that there were no material misstatements in the financial statements; and reportable noncompliance with laws and regulations we tested for the fiscal year ended September 30, 1995. To comply with this provision, the Commission is required to identify and fully fund its liabilities by that date. Opinion on Financial Statements

The financial statements including the accompanying notes present fairly, in all material respects, in conformity with generally accepted accounting principles, the Commission’s assets, liabilities, and capital; operating revenue and expenses; changes in capital; and cash flows. Management of the Commission fairly stated that those controls in effect on September 30, 1995, provided reasonable assurance that losses, noncompliance, or misstatements material to the financial statements would be prevented or detected on a timely basis.
Why GAO Did This Study

Pursuant to a legislative requirement, GAO audited the Panama Canal Commission's financial statements for the fiscal years ended September 30, 1995 and 1994, focusing on: (1) the statements' reliability; (2) internal controls; and (3) compliance with selected applicable laws and regulations.

What GAO Found

GAO found that: (1) the financial statements presented fairly, in all material respects, the Commission's financial position as of September 30, 1995 and 1994, and the results of its operations, changes in capital, and cash flows for the years then ended, in conformity with generally accepted accounting principles; (2) although improvements are needed, the Commission's internal controls in effect as of September 30, 1995, reasonably ensured that losses, noncompliance, or material misstatements would be prevented or detected; (3) the Commission disclosed a nonmaterial violation of the Antideficiency Act and has implemented internal controls that should prevent any future violations; (4) there were no other reportable instances of noncompliance with applicable laws and regulations; (5) the Commission has improved its general controls over its computerized information systems to correct previously identified weaknesses; and (6) the Commission expects to have its liabilities fully funded by the time the Canal is transferred to Panama.