Financial Audit: Panama Canal Commission's 1991 Management Letter

GAO reviewed several Panama Canal Commission (PCC) accounting and internal control procedures that need improvement. GAO found that: (1) the problems, although not material, warrant management's attention; (2) the Department of the Treasury should maintain adequate PCC transaction records and send them to PCC for monthly reconciliations; (3) the Office of Personnel Management should annually update the actuarial valuation of PCC pension liabilities so that PCC has sufficient time to adjust the liability and the offsetting deferred asset prior to the end of 1999; (4) PCC should use turn-around transmittal documents to track the processing of source documents and inventory issuances and comprehensive batch and error reports; (5) PCC should improve its inventory controls and procedures to resolve count discrepancies and modify its software to ensure data accuracy; (6) PCC should establish a timetable for fully documenting the methodology used to develop and maintain its application systems; (7) PCC should change its data procedures to ensure that data are not lost; (8) PCC is hiring an information security manager to consolidate its data security; and (9) PCC should enforce access security procedures at its headquarters.