Office of Inspector General

 FY 2023 Financial Statements 

Management Letter

A24-01A

 November 2023

 FEDERAL MARITIME COMMISSION
 FEDERAL MARITIME COMMISSION

Washington, DC 20573

 November 15, 2023 

Office of Inspector General

Dear Chairman Maffei and Commissioners Dye, Sola, Bentzel, and Vekich: 

When performing an audit of an agency’s major financial systems and accounting 

processes, auditors may detect deficiencies in internal controls that do not rise to a level of 

seriousness to be reported in the auditor’s opinion. These findings are communicated to the 

auditee in a management letter. Attached is a copy of the FY 2023 Financial Statement 

Management Letter and the Managing Director’s response that reports on such findings. 

This year’s management letter contains the status of one current-year finding. The OIG 

will continue to review this area again and report any findings in next year’s audit. I am available 

to discuss the letter at your convenience.

Respectfully submitted, 

/s/

Jon Hatfield

Inspector General

Attachments 

cc: Office of the Managing Director 

Office of the General Counsel

Office of Budget and Finance 
6116 Executive Blvd • Suite 500 Dembo Jones, P.C. 8830 Stanford Blvd • Suite 290

North Bethesda, MD 20852 A Member of Allinial Global Columbia, MD 21045

P 301.770.5100 • F 301.770.5202 www.dembojones.com P 410.290.0770 • F 410.290.0774

Management Letter

Chairman Daniel B. Maffei

Federal Maritime Commission

In planning and performing our audit of the financial statements of the Federal Maritime 

Commission (the Commission) as of and for the year ended September 30, 2023, in accordance 

with auditing standards generally accepted in the United States of America, we considered the 

Federal Maritime Commission’s internal control over financial reporting (internal control) as a 

basis for designing audit procedures that are appropriate in the circumstances for the purpose of 

expressing our opinion on the financial statements, but not for the purpose of expressing an opinion 

on the effectiveness of the Commission’s internal control. Accordingly, we do not express an 

opinion on the effectiveness of the Commission’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow 

management or employees, in the normal course of performing their assigned functions, to prevent, 

or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a 

combination of deficiencies in internal control, such that there is a reasonable possibility that a 

material misstatement of the Commission’s financial statements will not be prevented, or detected 

and corrected, on a timely basis. We did not identify any deficiencies in internal control that we 

consider to be material weaknesses.

Our consideration of internal control was for the limited purpose described in the first paragraph 

and was not designed to identify all deficiencies in internal control that might be material 

weaknesses; and therefore, material weaknesses may exist that were not identified. 

A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that 

is less severe than a material weakness, yet important enough to merit attention by those charged 

with governance. We did not identify any deficiencies in internal control that we consider to be 

significant deficiencies. 

During our audit, we noted a certain matter involving other operating matters that is presented for 

your consideration. This letter does not affect our report dated November 15, 2023 on the financial 

statements. Our comment and recommendation, all of which have been discussed with appropriate 

members of management, is intended to improve the internal control or result in other operating 

efficiencies. We will be pleased to discuss these comments in further detail at your convenience. 
 Dembo Jones, P.C.

Our comments are summarized as follows:

I. Timely Submission of Travel Claims

During our performance of audit tests related to travel vouchers, we noted that 7 of the 32 travel 

claims were not submitted by the traveler to the approving official within the required number of 

working days upon completion of the trip. Federal Travel Regulations §301-52.7 state that travel 

claims must be submitted within five (5) working days after the traveler completes their trip or 

period of travel; or every 30 days if the traveler is on continuous travel status. We recommend the 

Commission clarify their commission order terms and consider delegating additional travel 

voucher responsibility to travelers or reassess/implement additional procedures to improve 

submitting the travel claims within the 5 working day window.

This communication is intended solely for the information and use of management, individuals 

charged with governance, and others within the organization, and is not intended to be, and should 

not be, used by anyone other than these specified parties.

We sincerely appreciate the opportunity to provide services to the Federal Maritime Commission

and hope you find the information included in this correspondence useful and informative. 

North Bethesda, Maryland

November 15, 2023
UNITED STATES GOVERNMENT FEDERAL MARITIME COMMISSION 

 Memorandum 

TO : Inspector General DATE: December 11, 2023 

FROM : Managing Director 

SUBJECT : Management Letter to the FY 2023 Financial Statement Audit 

I have reviewed the recommendation contained in the Management Letter to the FY 2023 

financial statement audit regarding the timely submission of travel claims. I appreciate the 

recommendation for improvement in this important effort. 

Current Commission policy complies with the Federal Travel Regulations (FTR) §301-52.7 

requirement to submit travel reimbursement claims within five (5) working days. Commission 

Order 55, Official Travel, (CO 55) states in Section 13(b) that “the traveler shall submit an 

itemized list of his/her daily expenses, together with all required supporting documents, to 

OBFM within five working days after travel is completed.” CO 55 is currently being revised. The 

planned revision will not modify this requirement. 

Commission procedures currently advise travelers of reimbursement submission requirements 

when issuing travel orders and/or tax exemption forms. Prior to travel, the Office of Budget and 

Finance (OBF) sends a detailed email requesting/reminding travelers to send in receipts and a 

detailed list of their expenses within 5 working days of the completion of their travel. Once the 

trip is completed, OBF sends a reminder email requesting the claim information to complete 

the traveler’s voucher. 

Given the significant number of late reimbursement claims, additional measures will be 

considered and implemented to improve compliance. By the end of the third quarter of FY 

2024, OBF staff will complete a review to strengthen current procedures and to educate 

travelers about the reimbursement submission requirement and to obtain traveler compliance. 

OBF will implement identified changes in the fourth quarter of FY 2024. 

My office will provide you with an update of travel procedures to be strengthened or 

implemented in the coming months, and will notify you once CO 55 has been updated and 

approved. 

Lucille L. Digitally signed by Lucille 

L. Marvin 

Marvin Date: 2023.12.11 

14:26:29 -05'00'

 Lucille L. Marvin 

cc: Office of the Chairman 

 Director, Office of Budget and Finance