THE PANAMA CANAL-Continued PANAMA CANAL COMPANY-Continued Public enterprise funds-Continued PANAMA CANAL COMPANY FUND-Ccontinued The Panama Canal Company is a wholly owned Government corporation chartered by the Act of June 29, 1948 (62 Stat. 1076), as amended by the Act of September 26, 1950 (64 Stat. 1041), for the primary purpose of maintain ing and operating the interoceanic canal at the Isthmus of Panama. In furtherance of that mission, and in consideration of the international agreements under which the canal enterprise is operated, the Company conducts. necessary supporting operations. The administration of the Company is integrated with that of the Canal Zone Government, an independent agency financed by appropriations. The Governor of the Canal Zone is ex officio president of the Company. The Company is expected to be self-sustaining and is required to reimburse the U.S. Treasury for the net cost of the Canal Zone Government, the cost of interest on the net direct investment of the United States in the Company, and for annuity payments made by the United States to the Republic of Panama pursuant only to the Treaty of 1903 as amended in 1936. Budget program-1. Transit operations. Operation and maintenance of the canal proper is the primary mission of the Company, and it is toward the successful accomplishment of that task that the transit operations are directed. Current and projected operating results, including income from tolls, are reviewed and evaluated at least annually by the Company's Board of Directors. The services performed by this activity and the funded cost of each are shown in the following table (in thousands of dollars): 1964 actual 1965 estimate 1966 estimate widening spoil as a base for the proposed $11 million dam across the Trinidad arm of Gatun Lake. 2. Supporting services.-These auxiliary activities of the Company, individually described below, provide services and materials essential to the accomplishment of the transit operations program. (a) Maritime services. This program provides for the operation of vessel repair and harbor terminal facilities. Funded costs, which are directly related to customer demand for services, and to Company floating plant overhaul schedules, are as follows (in thousands of dollars): Capital outlay costs, funded, for 1966 are estimated at $1,067 thousand and include $400 thousand for replacement housing, $115 thousand for modernizing existing quarters structures, and $277 thousand for equipment. (c) Transportation and utilities services.-The various types of service and the funded costs of each are as follows (in thousands of dollars): Railroad.. Motor transportation.. Water transportation.. Power system..... Communications system.. Water system. Central air-conditioning service.. Total funded costs. Less intra-agency recoveries.. Net funded costs. 1964 actual 1965 estimate 1966 estimate Commercial vessel transits: Number of ships (over 300 net 11.808 12,100 7,039 Tolls and toll credits at current rates. Other transit revenue..... 12,575 7,300 $69.700 $57,856 $62,546 $67.000 Capital outlay costs, funded, which will amount to $3,659 thousand in 1966, include $1.5 million for continuing the canal capacity program, and $750 thousand primarily for processing, additional hauling, and depositing cut Capital outlay costs, funded, total $5,345 thousand for 1966 including $1,970 thousand to complete a $5,250 thousand steam turbine generator for the power system, $652 thousand for additional water mains to serve Panama, $506 thousand for additions and improvements to the power transmission and substation system, $466 thousand for equipment, and $428 thousand for replacing motor vehicles. consist of the Company's construction, maintenance and (d) Other supporting services.-These activities chiefly supply functions. Funded costs, which reflect the DEPARTMENT OF DEFENSE-CIVIL Capital outlay costs, funded, for 1966 are estimated at $700 thousand principally for the replacement and addition of equipment. 3. General corporate expense.-This includes payments to the Treasury for the net cost of Canal Zone Government and interest, general and administrative expenses under statutory limitation, and other general charges. The scope of general and administrative expenses under statutory limitation includes virtually all general charges other than interest on the investment of the United States, the net cost of the Canal Zone Government, and annuity payments to non-U.S. citizens formerly employed by the Company. Funded costs are as follows (in thousands of dollars): tion of the Government's interest-bearing investment (even though the bridge replaced a ferry, the operations of which were financed as a normal cost of the Company). For 1966, language is proposed which would permit such expenditures (including depreciation but not interest) to be treated as a cost of maintaining the Panama Canal and the amount of $283 thousand has been included for maintenance and operation under transit operations (funded) and $316 thousand for depreciation under expenses of transit operations (unfunded). Revenue, Expense, and Retained Earnings (in thousands of dollars) Transit operations: 1964 1965 1966 estimate Financing. The Company is authorized to obtain appropriations for its capital needs and to cover losses. sustained in the conduct of its activities. In addition, under Public Law 86-200 (73 Stat. 428), approved August 25, 1959 the Company may borrow from the Treasury, interest-bearing amounts not exceeding a total of $10 million outstanding at any time. The latter authorization, along with available resources and anticipated revenues and receipts will enable the Company to fund its program through 1966 without recourse to appropriations. The unobligated balance is estimated at $3,927 thousand on June 30, 1966. Net operating revenue, other supporting General corporate expense: Assessment to Canal Zone Government.. General corporate expense, net. Net operating income for the year... for noncapital costs of power conversion.... Net nonoperating expense. Operating results and financial condition.-There will be an increase in retained earnings in 1965 estimated at $3,760 thousand and a further increase in 1966 estimated at $5,670 thousand wholly representing net operating Nonoperating expense: Additional provision income for those years. The Government's equity will be reduced by $240 thousand in 1965 as a result of expenditures made by the Company for maintenance and operation of the Thatcher Ferry Bridge. In accordance with Public Law 753 (84th Congress), approved July 23, 1956, such expenditures have been treated as extraordinary expenses, not related to the operations of the Panama Canal Company, and as such may be applied as a reduc Net income for the year... Retained earnings, end of year....... -10,950 -11,370 -11,665 -12,957 -13,658 -13,002 -39,326 -42,721 -42,809 2,162 3,760 5,670 -500 -500 1,662 3,760 5,670 133,068 134,730 138,490 134,730 138,490 144,160 Unpaid undelivered orders: Analysis of Government Equity and Undrawn Authorizations (in thousands of dollars) Subtotal... Less undrawn authorizations.. 11.1 11.3 11.5 11.7 Identification code 08-25-4060-0-3-502 471,981 10,000 Total Government equity... 461,981 1963 actual 2,231 8.485 26.0 Supplies and materials. 31.0 Equipment.......... 32.0 Lands and structures.. 2,067 -5.239 464,438 Personnel compensation: Positions other than permanent.. Total personnel compensation. 12.0 Personnel benefits.... 13.0 Benefits for former personnel.. 21.0 Travel and transportation of persons. 22.0 Transportation of things.... 23.0 Rent, communications, and utilities. 24.0 Printing and reproduction............ 25.1 Other services.. 25.2 Services of other agencies Total costs, funded.... 94.0 Change in selected resources.. 99.0 Total obligations....... Military: 41.0 Grants, subsidies, and contributions. 42.0 Insurance claims and indemnities.. 43.0 Interest and dividends... 93.0 Administrative expenses (see separate schedule) Note-Contingent and other liabilities. The Company has outstanding, at all times, contingent and continuing liabilities in indeterminable amounts arising principally from monthly relief payments payable to retired alien employees; benefits payable under provisions of the Federal Employees Compensation Act; commitments for construction work, supplies and services; and pending suits and claims. The annuity payments to be made to retired alien employees in fiscal year 1965 are estimated at $1.6 million. Commitments under uncompleted construction contracts and unfilled purchase orders amounted to $9.7 million at June 30, 1964. The maximum liability which could result from outstanding claims and lawsuits is estimated to be $1.4 million. 1 The changes in these items are reflected on the Program and Financing Schedule. Object Classification (in thousands of dollars) 1964 1965 actual estimate 3,154 2,386 2,896 6,510 -845 700 -5,239 -5,239 469,963 476,320 Average number... Number of military personnel at end of year.. 473.543 10,000 463,543 1964 actual 41,932 869 5,814 41 Personnel Summary 1966 estimate 8 2,386 1,474 3.927 -5,239 498,303 45,545 2,009 5,569 61 48,656 53,184 2,945 3.139 1,681 1,575 1.090 1,143 2,010 2,129 217 6 2,484 -2,828 217 6 2,510 2,684 -3,700 -3,930 23,611 23,242 3,471 4,359 2,724 21.969 5,239 10,454 85 5.115 5,305 11,066 84 11,370 10,950 8,924 11,038 84 11,665 11.169 126,286 125,030 -1.422 -5,381 10,847 117,353 -411 116,942 120,905 123,608 46,529 1.352 4,604 52 52.537 3,135 1,458 1.177 2,150 217 98 Personnel Summary-Continued Total accrued general and administrative expenses (costs—obligations) - - LIMITATION ON GENERAL AND ADMINISTRATIVE EXPENSES Not to exceed [$10,639,000] $11,169,000 of the funds available to the Panama Canal Company shall be available during the current fiscal year for general and administrative expenses of the Company, including operation of tourist vessels and guide services, which shall be computed on an accrual basis. Funds available to the Panama Canal Company for operating expenses shall be available for the purchase of not to exceed [twenty-three] twentyone passenger motor vehicles, of which eighteen are for replacement only, including one light sedan at not to exceed $2,000, and for uniforms or allowances therefor, as authorized by the Act of September 1, 1954, as amended (5 U.S.C. 2131). (Public Works Appropriation Act, 1965.) Program and Financing (in thousands of dollars) Balance lapsing... Limitation. Proposed increase in limitation due to civilian pay increases... Identification code 08-25-4060-0-3-502 Personnel compensation: Permanent positions. 11.3 11.5 11.7 Military personnel... 1964 actual 21.0 Travel and transportation of persons. 23.0 Rent, communications, and utilities. 24.0 Printing and reproduction. 25.1 Other services. 11,948 381 11,771 6.1 $6,591 4.9 $5.515 $3,620 25.2 Services of other agencies. 26.0 Supplies and materials. 42.0 Insurance claims and indemnities.. 93.0 Administrative expenses included in schedule for fund as a whole..... Total obligations.... Object Classification (in thousands of dollars) 1964 actual 1964 actual 8,924 1965 1966 estimate estimate 4,902 615 12 11,748 643 12,084 6.7 $7,453 4.9 $5,927 $3,990 79 16 176 1965 1966 estimate estimate 361 9,285 10,639 1,511 842 11,691 464 11,854 6.7 $7,528 4.9 $5,964 $4,104 3,486 1,378 1,240 10,847 11,169 1,470 872 3,558 1,416 1,234 5,470 57 60 1,275 663 3,024 This fund was authorized by the act of August 12, 1955, as amended, by Public Law 86-381, approved September 25, 1959, for the payment of death, personal injury, and property losses resulting from the disaster at Texas City, Tex., on April 16 and 18, 1947. All claims have been 1,893 2,390 2,619 adjudicated. 1,066 1,003 11,169 1965 1966 estimate estimate 5,640 718 25 126 2 304 2,828 3,700 3,930 107 131 172 222 189 201 -8,924 -10,847 -11,169 5,746 739 23 129 2 206 60 5,573 55 Relation of obligations to expenditures: 90 Expenditures.... Identification code Program by activities: 10 Conservation of game (obligations).... Financing: 21 Unobligated balance available, start of year. New obligational authority (appro- WILDLIFE CONSERVATION, ETC., MILITARY RESERVATIONS (Permanent, indefinite, special fund) Program and Financing (in thousands of dollars) Department of the Army. Relation of obligations to expenditures: 71 Total obligations (affecting expenditures).. 1964 actual 72 Obligated balance, start of year.. 74 90 Expenditures..... Department of the Army.. -4 1965 estimate 33 2 25 -4 4 1965 estimate 139 -111 110 138 100 5 33 139 7 -7 139 100 6 33 1966 estimate 1966 estimate 139 -110 109 138 100 5 33 139 7 -7 139 100 6 33 MISCELLANEOUS ACCOUNTS—Continued Object Classification (in thousands of dollars) General and special funds-Continued WILDLIFE CONSERVATION, ETC., MILITARY RESERVATIONS-Con. (Permanent, indefinite, special fund)—Continued Proceeds from the sale of fishing and hunting permits on military installations are used to carry out a program of development, conservation, and rehabilitation of fish and wildlife on military reservations. This program is carried out through cooperative plans agreed upon by the Secretary of Defense, the Secretary of the Interior, and the appropriate agency of the State in which the reservation is located. (63 Stat. 759 and 74 Stat. 1053.) |