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Report on Financial Condition and Operations of the United States Section, International Boundary and Water Commission, United States and Mexico, for Fiscal Years 1963 and 1962

B-125014 Published: Mar 24, 1965. Publicly Released: Mar 24, 1965.
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Highlights

We have made a review of the financial condition and operations of the United States Section, International Boundary and Water Commission, United States and Mexico, for the fiscal years ended June 30, 1963 and 1962. We are issuing this report to advise the Congress on the corrective action taken by the United States Section on the recommendation taken in our prior report regarding the need for a firm allocation of construction costs of the Falcon Dam to power and to advise the Congress of the financial position of the United States Section. In our opinion, except for (1) the omission of interest on the Government's investment in the power facilities at Falcon Dam, the liability for employees' accrued annual leave, and certain accounts payable and (2) the overstatement of depreciation charged to the cost of power operations at Falcon Dam, the accompanying financial statements present fairly the financial position of the United States Section at June 30, 1963 and 1962, and the results of operations for the years then ended in conformity with principles and standards of accounting prescribed by the Comptroller General of the United States applied on a basis consistent with that of preceding years. Officials of the United States Section have taken corrective action to record the interest on the Government's investment in the power facilities at Falcon Dam and the liability for employees' accrued annual leave, but the cash value of accrued annual leave is not being recorded as an operating expense. We were advised by these officials that consideration would be giving to revising the basis for charging depreciation on facilities at Falcon Dam and that steps would be taken to properly record amounts payable at the close of the fiscal year.

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