Transfer of Interest of U.S. Investment in the Panama Canal
AFMD-85-63
Published: Jun 19, 1985. Publicly Released: Jun 19, 1985.
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Highlights
Pursuant to a congressional request, GAO reviewed the cash flow requirements of the Panama Canal Commission to determine the most appropriate repayment schedule for interest earned on the U.S. Government's investment in the Panama Canal.
Recommendations
Matter for Congressional Consideration
| Matter | Status | Comments |
|---|---|---|
| In FY 1986 Panama Canal appropriation legislation, Congress should require that $56.3 million collected, as of April 30, 1985, plus interest collected during the remainder of FY 1985, be transferred from the Commission's Fund to the general fund of the U.S. Treasury by October 1, 1985, or shortly thereafter. |
Closed – Not Implemented
|
Both the House and Senate versions of bills to correct the program failed. No further discussions from Congress are evident. AFMD-87-4 will discuss this issue. |
| In FY 1986 Panama Canal appropriation legislation, Congress should require that future interest earned be transferred annually to the general fund of the Treasury to prevent accumulation of interest in the Commission's Fund. |
Closed – Implemented
|
Collections of interest are being transferred to the Treasury through the amendment to the Panama Canal Act of 1979. |
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Panama Canal Commission | The Commission should discontinue recording the annual payments to Panama as new obligations. |
Closed – Not Implemented
The Commission disagreed with this recommendation. Follow-up on this issue, as part of the FY 1986 financial statement audit, revealed that this recommendation is no longer significant in view of other actions taken.
|
| Panama Canal Commission | The Commission should record obligations for defense schools and early retirement either monthly or quarterly. |
Closed – Not Implemented
The Commission disagreed with this recommendation. Follow-up on this issue, as part of the FY 1986 financial statement audit, revealed that this recommendation is no longer significant in view of other actions taken.
|
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Topics
Accounting proceduresCollection proceduresElectronic funds transferFinancial managementFunds managementInterest ratesInternational relationsInvestments abroadPaymentsFund balance