Summary: This report presents the results of GAO's audits of the Panama Canal Commission's financial statements for fiscal years 1995 and 1994. In GAO's opinion, the Commission's financial statements present fairly, in all material respects, its financial position for those fiscal years, and the results of its operations, changes in capital, and cash flows in conformity with generally accepted accounting principles. GAO believes that although improvements are needed in internal controls governing the review of the classification of obligations for consultant services under congressional spending limitations, internal controls reasonably ensured that losses, noncompliance, or misstatements material to the financial statements would be prevented or detected. GAO did find an Antideficiency Act violation related to noncompliance with a congressional spending limitation. But the noncompliance was not material to the financial statements, and management has instituted internal controls that should prevent future noncompliance.
