FEDERAL MARITIME COMMISSION

800 North Capitol Street, N.W.

Washington, DC 20573 

Inspector General

 

 May 15, 2020 

 Submitted Electronically

The Honorable Ron Johnson, Chairman 

Committee on Homeland Security and 

 Governmental Affairs 

United States Senate 

340 Dirksen Senate Office Building 

Washington, DC 20510

The Honorable Carolyn B. Maloney,

 Chairwoman 

Committee on Oversight and Reform 

United States House of Representatives 

2157 Rayburn House Office Building 

Washington, DC 20515

The Honorable Lt. Cdr. Gary C. Peters, 

 Ranking Member 

Committee on Homeland Security and 

 Governmental Affairs 

United States Senate 

442 Hart Senate Office Building 

Washington, DC 20510 

The Honorable Russell Vought, Acting 

Director 

Office of Management and Budget 

725 17th Street, NW 

Washington, DC 20503

The Honorable Jim Jordan, Ranking Member

Committee on Oversight and Reform 

United States House of Representatives 

2105 Rayburn House Office Building 

Washington, DC 20515 

The Honorable Gene L. Dodaro 

Comptroller General of the United States 

U.S. Government Accountability Office 

441 G Street, NW 

Washington, DC 20548 

SUBJECT: Improper Payments Compliance Report

This report communicates the results of the Federal Maritime Commission (FMC) Office 

of Inspector General’s (OIG) annual review of the FMC’s compliance with reporting and 

performance requirements regarding improper payments. The OIG is required by the Improper 

Payments Information Act of 2002 (IPIA), as amended by the Improper Payments Elimination and 

Recovery Act of 2010 (IPERA) and the Improper Payments Elimination and Recovery 

Improvement Act of 2012 (IPERIA) to prepare and submit this annual compliance report within 

180 days after the agency’s Performance and Accountability Report (PAR) is published. 
2

For fiscal year (FY) 2019, the OIG concluded the FMC complied and met the requirements 

that are applicable to the agency for improper payment reporting. According to Office of 

Management and Budget (OMB) guidance, compliance with IPERA means that the agency met 

the following six requirements, as appropriate:

OMB Requirements for IPERA Compliance Complied

1 Published an AFR or PAR for the most recent fiscal year and 

posted that report required by OMB on the agency website.

Yes

2 Conducted a program specific risk assessment for each program 

that conforms with Section 3321 of Title 31 U.S.C.

Yes

3 Published improper payment estimates for all programs identified 

as susceptible to significant improper payments under its risk 

assessment.

N/A1

4 Published programmatic corrective action plans in AFR or PAR. N/A1

5 Published, and is meeting, annual reduction targets for each 

program assessed to be at risk and estimated for improper 

payments.

N/A1

6 Reported a gross improper payment rate of less than 10 percent for 

each program for which an improper payment estimate was 

obtained and published in the AFR or PAR.

N/A1

The OIG completed this annual review based on guidance contained in OMB Circular No. 

A-123, Appendix C, Requirements for Payment Integrity Improvement (as modified by OMB M18-20, June 26, 2018). Appendix C implements requirements from the following: (1) the Improper 

Payments Information Act of 2002 (IPIA); (2) the Improper Payments Elimination and Recovery 

Act of 2010 (IPERA); (3) the Improper Payments Elimination and Recovery Improvement Act of 

2012 (IPERIA); and (4) Executive Order 13520 - Reducing Improper Payments, November 20, 

2009.

The purpose of IPIA, as amended, and the related requirements, are to improve the federal 

government’s efforts to reduce and recover improper payments. An improper payment is any 

payment that should not have been made or that was made in an incorrect amount. Incorrect 

amounts are overpayments or underpayments that are made to eligible recipients. An improper 

payment also includes any payment that was made to an ineligible recipient or for an ineligible 

good or service, or payments for goods or services not received (except for such payments 

authorized by law). In addition, when an agency's review is unable to discern whether a payment 

was proper because of insufficient or lack of documentation, this payment must also be considered 

an improper payment.

Each agency inspector general is required to review improper payment reporting in their 

agency’s annual Performance and Accountability Report (PAR) or Annual Financial Report (AFR) 

1 Requirement is not applicable because FMC determined in its most recent risk assessment that the agency’s 

programs are not susceptible to significant improper payments.
3 

to determine if the agency is following IPERA. The OIG reviewed the agency’s disclosures 

contained in the FMC’s FY 2019 PAR posted on the agency’s website for compliance with IPERA

and related requirements. The FMC concluded that the agency has not identified any program that 

in and of itself constitutes a high-risk for improper payments. As a result, the FMC assessed all 

its payments to be low-risk for improper payments. 

The OIG is required to report these results to the FMC Commission; the Senate Committee 

on Homeland Security and Governmental Affairs; the House of Representatives Committee on 

Oversight and Reform; the Comptroller General; and OMB. 

If you have any questions or comments, please contact me on (202) 523-5863 or 

jhatfield@fmc.gov. Thank you. 

Sincerely,

Jon Hatfield

Inspector General