Economic Development - Financial Problems of the JFK Center for the Performing Arts Need to Be Addressed: Ggd-84-50 (Paperback)

In response to a congressional request and in compliance with the John F. Kennedy Center Act, GAO reviewed aspects of the Kennedy Center's financial operations for fiscal years (FY) 1979 through 1982 and data for 1983 to assess the Center's ability to meet its operating costs and bond indebtedness. GAO found that the Kennedy Center has not met its bond interest debt to the U.S. Treasury, which totaled about $28.6 million at the end of FY 1983, nor has it been able to set aside funds to repay the principal, which totals $20.4 million and is due in the year 2017. Further, GAO found that the Center pays less than its full share of the building operating costs shared with the National Park Service. GAO stated that the number and the interrelation of issues involved in financial management of the Center require a comprehensive solution. Officials of the Department of the Treasury, the Office of Management and Budget, and the Center formed a working group and developed a proposal to address these problems and issues. The proposal is being discussed with appropriate congressional committees.