Maritime Administration: Efforts To Improve Data on the Federal Ship Financing Program

Highlights

In response to a congressional request, GAO examined the Maritime Administration's (MARAD) Federal Ship Financing Program and its estimated $5-billion portfolio of loan guarantees.

Recommendations

Recommendations for Executive Action

Agency Affected	Recommendation	Status
Department of Transportation	The Secretary of Transportation should direct the Administrator, MARAD, to improve the financial information in the MARAD annual report and budget documents by clearly stating that the fund is no longer self-supporting. This statement should continue to appear in future annual reports and budget documents until the fund's own revenues are sufficient to pay all expenses, including default payments, within the same fiscal year, and Treasury borrowings within the next fiscal year, without the aid of supplemental appropriations.	Closed – Implemented MARAD will state in future annual reports and budget documents that the fund is no longer self-supporting.
Department of Transportation	The Secretary of Transportation should direct the Administrator, MARAD, to document the MARAD process for compiling a list of companies that are considered to be at risk of default to ensure that each company's circumstances are reviewed thoroughly and consistently.	Closed – Implemented MARAD will document the process for compiling a list of companies considered to be at risk of default.
Department of Transportation	The Secretary of Transportation should direct the Administrator, MARAD, to document the process used to estimate MARAD liability for potential losses on outstanding loan guarantees. Documentation should include a description of how each company's circumstances and market segment were considered in preparing the estimate.	Closed – Implemented MARAD will document its process for estimating the liability for potential losses on outstanding loan guarantees.
Maritime Administration	The Administrator, MARAD, should report at the end of this calendar year to the Secretary of Transportation on those financial reporting areas identified in this report where corrective action has not been taken, including any areas in the MARAD accounting system that do not conform with the Comptroller General's principles, standards and related requirements.	Closed – Implemented MARAD will report the uncorrected areas at the end of 1987.

Full Report

Full Report (62 pages)

Media Inquiries

Sarah Kaczmarek

Managing Director

Office of Public Affairs

media@gao.gov

Public Inquiries

Topics

Business Regulation and Consumer Protection

DatabasesDelinquent loansFunds managementGovernment guaranteed loansLoan defaultsLoan repaymentsProgram managementProprietary dataSupplemental appropriationsBreach of contract