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Financial Management: Views on the Panama Canal Commission's Accounting Procedures

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Report Type Reports and Testimonies
Report Date Dec. 2, 1982
Report No. 121996
Subject
Summary:

GAO discussed the Panama Canal Commission's accounting procedures for setting aside reserves for marine accidents. The Commission collects toll fees from each Canal user to pay for ship accident claims. Since the Commission is required to recover all costs of operating the Canal, tolls are increased or decreased as these costs fluctuate. GAO believes that this practice reflects the statutory requirement that the Canal's operating and maintenance costs should not be borne by the U.S. taxpayer. GAO concluded that the Commission prudently manages the accident reserve fund to match revenues with expenses.

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