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ID-81-57 1 (1981-08-05)

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B-204078
                                                 AUGUST 5, 1981






The Honorable Walter B. Jones
Chairman, Committee on Merchant                        I
  Marine and Fislheries
House of Representatives                            116116

Dear Mr. Chairman:

     Subject: rPnama Canal Commission Expenditures for Entertain-
               ment, Official Residence, and Supervisory Boardj1
               (ID-81-57)

     In your March 31, 1981, letter (see enc. II) you asked us to
audit expenditures made by the Panama Canal Commission during the
period October 1, 1979 to March 31, 1981, for

     --entertainment;

     --operation and maintenance, including staffing, of the
       official residence provided for the Administrator; and

     --expenses of the Supervisory Board established by
       section 1102 of the Panama Canal Act of 1979.

     You stated that the Committee had information that costs re-
lated to these three activities are scattered throughout the bud-
get and that limitations contained in the Commission's 1981
Appropriations Act (Public Law 96-400) are applied only to the
identified line items and not to related expenses in other parts
of the budget. You further stated that your Committee had been
unable to obtain a meaningful breakdown of actual expenditures for
these activities and, in the case of the residence, the relation-
ship of expenditures to those authorized by regulations issued
pursuant to 5 U.S.C. 5913. (See enc. I for objectives, scope, and
methodology of review.)

EXPENDITURES FROM APPROPRIATIONS

     The following table shows the amounts we identified as having
been spent by the Commission from appropriations during the 18-
month period.



                                                    (487073)


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