FEDERAL MARITIME COMMISSION

FY 2022 PERFORMANCE AND 

ACCOUNTABILITY REPORT

November 2022
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Federal Maritime Commission

Contents

Management’s Discussion and Analysis......................................................................................... 5

Commission Background............................................................................................................. 6

Mission Statement................................................................................................................................6

Statutory Authority ...............................................................................................................................6

Organizational Structure.......................................................................................................................6

Organization Chart................................................................................................................................7

Members of the Federal Maritime Commission...................................................................................8

Commission Bureaus and Offices..........................................................................................................9

Recent Developments............................................................................................................... 10

Ocean Shipping Reform Act of 2022...................................................................................................11

Priorities Reflecting Ocean Shipping Industry Conditions ..................................................................12

FY 2022 Performance Highlights............................................................................................... 13

Competition and Reliability Oversight................................................................................................13

Consumer Protection Oversight..........................................................................................................15

Organizational Management.................................................................................................... 17

Information Technology and Cybersecurity........................................................................................17

Strengthening Federal Hiring ..............................................................................................................17

Advancing Equity.................................................................................................................................18

Program Performance Overview .............................................................................................. 18

Achieving Strategic Goal Results.........................................................................................................18

Strategic Management of Human Capital...........................................................................................18

Competitive Sourcing..........................................................................................................................19

Expanded E-Government....................................................................................................................19

Financial Performance Overview........................................................................................................19

Source of Funds...................................................................................................................................20

Appropriations History........................................................................................................................21

Full-time Equivalent History................................................................................................................21

Uses of Funds......................................................................................................................................22

Audit Results.......................................................................................................................................22

Financial Statement Highlights................................................................................................. 22

Summary of Assets..............................................................................................................................22
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Summary of Liabilities.........................................................................................................................23

Analysis of Changes in Net Position Summary....................................................................................24

Analysis of Net Cost Summary ............................................................................................................24

Analysis of the Statement of Budgetary Resources............................................................................25

Systems, Control, and Legal Compliance Analysis.................................................................... 26

Management Assurances....................................................................................................................26

Debt Collection Improvement Act of 1996 .........................................................................................27

Digital Accountability and Transparency Act of 2014 (DATA Act) ......................................................27

Prompt Payment Act of 1982..............................................................................................................27

Performance Measure Summary........................................................................................................28

Inspector General Act and Inspector General Reform Act .................................................................28

Treasury Assurance Statement – USA Spending Reconciliation.........................................................28

Limitations of the Financial Statements .............................................................................................28

Federal Managers’ Financial Integrity Act Statement of Assurance ........................................ 29

Annual Performance Report......................................................................................................... 30

Introduction .............................................................................................................................. 31

Financial Information.................................................................................................................... 40

Message from the Chief Financial Officer/Director, Enterprise Services................................. 41

Principal Financial Statements.................................................................................................. 42

Limitations of the Financial Statements .............................................................................................42

Financial Statements & Independent Auditor Report.............................................................. 43

Independent Auditors' Report............................................................................................................45

Federal Maritime Commission Comments on Audit Report............................................................51

Federal Maritime Commission Financial Statements.....................................................................52

Other Required Information......................................................................................................... 68

Inspector General’s Statement on Management and Performance Challenges...................... 69

Comments on Inspector General’s Statement ......................................................................... 72

Financial Statement Audit Summary ........................................................................................ 73

Management Assurances Summary ......................................................................................... 73

Improper Payments Information Act........................................................................................ 74

Fraud Reduction Report............................................................................................................ 74

Civil Monetary Penalty Adjustment for Inflation...................................................................... 74

Biennial Review of User Fees.................................................................................................... 75
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Federal Maritime Commission

Federal Maritime Commission

Office of the Chairman

Washington, D.C. 20573-0001

November 15, 2022

On behalf of the Federal Maritime Commission, I am pleased to provide this Fiscal Year 2022 

(FY 2022) Performance and Accountability Report (PAR). The performance and financial data 

reported here is complete, reliable, and provides a comprehensive representation of the 

Commission’s work over the past fiscal year.

The Commission evaluated its management controls and financial management system 

pursuant to the Federal Managers’ Financial Integrity Act of 1982 prior to the preparation of 

this report. No material weaknesses were identified, and the financial management system 

used conforms to government financial system requirements. In accordance with OMB Circular

A-123, Appendix C, no improper payments were made.

This report contains the results of an independent audit of the Commission’s financial 

statements, internal controls, and management systems indicating they conform to Generally 

Accepted Accounting Principles, laws, regulations, and other requirements. The independent 

auditor’s report appears on page 45, and my statement of assurance appears on page 29. I take 

great pride in that for the 19th consecutive year, the Commission's financial statements have

earned an unmodified ("clean") opinion.

In addition, this report provides highlights of the Commission’s work, guided by its Strategic 

Plan. In accomplishing its mission, the Commission is committed to helping the Nation meet its 

current supply chain challenges and implementing the enhanced authorities of the recentlyenacted Ocean Shipping Reform Act of 2022, Pub. L. No. 117-146 (OSRA 2022). In all its 

activities, the Commission strives to ensure proper operational oversight, transparency and 

accountability to the American public while achieving its mission. You may also find this report 

online at: https://www.fmc.gov/about-the-fmc/performance-and-accountability-reports/.

Sincerely,

/s/

Daniel B. Maffei

Chairman
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Federal Maritime Commission

Management’s Discussion and Analysis
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Federal Maritime Commission

Commission Background

First constituted over 100 years ago as the U.S. Shipping Board in the Shipping Act of 1916, the 

Federal Maritime Commission (FMC or Commission) was authorized in its current form as an 

Executive Branch agency in 1961. The Commission is an independent agency, charged with 

regulating the international ocean transportation supply system. The Commission works to 

further competition and integrity for America’s ocean supply chain and protect the public from 

unlawful ocean shipping practices.

Mission Statement

Ensure a competitive and reliable international ocean transportation supply system that 

supports the U.S. economy and protects the public from unfair and deceptive practices.

Statutory Authority

The economics of U.S.-foreign oceanborne commerce and the effectiveness of the supply chain 

impact U.S. importers, exporters, and consumers. In 2022, Congress enhanced U.S. 

international ocean shipping laws with the passage of the Ocean Shipping Reform Act of 2022 

(OSRA 2022), bolstering the FMC’s jurisdiction and authorities in competition and protections 

for shippers.

The principal statutes administered by the FMC, codified at 46 U.S.C. §§ 40101-46108, are:

• The Shipping Act of 1984, 46 U.S.C. §§ 40101-44106 (Shipping Act);

• The Ocean Shipping Reform Act of 1998, Pub. L. No. 105-258 (1998) (OSRA 1998);

• The Foreign Shipping Practices Act of 1988 (FSPA);

• Section 19 of the Merchant Marine Act, 1920 (1920 Act); 

• Sections 2 and 3 of Pub. L. No. 89-777, 80 Stat. 1350; 

• Section 834 of the Frank LoBiondo Coast Guard Authorization Act of 2018 (LoBiondo Act); 

and

• The Ocean Shipping Reform Act of 2022, Pub. L. No. 117-146 (2022) (OSRA 2022).

Organizational Structure

The FMC is composed of five Commissioners nominated by the President and confirmed by the 

Senate, each serving a staggered five-year term. The Commission is a bipartisan body and no 

more than three members of the Commission may be of the same political party. One 

Commissioner, designated by the President, serves as the Chairman, Chief Executive, and Chief 

Administrative Officer of the Commission.

The Commission’s staff is mainly comprised of economists, attorneys, and other experts in 

ocean transportation, and is primarily located at its Washington, D.C. headquarters. The 

Commission also maintains a presence in locations across the country to investigate claims 

from shippers and consumers as well as FMC-initiated matters. The Commission’s 

administrative offices provide the agency’s information technology services, human resources 
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support, budget and financial planning, and procurement of goods and services to effectuate its 

mission.

Organization Chart
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Federal Maritime Commission

Members of the Federal Maritime Commission

Chairman Daniel B. Maffei

Appointed 2016 

Term Expired 2022

Commissioner Rebecca F. Dye

Appointed 2002

Term Expired 2020

Commissioner Max M. Vekich

Appointed 2022

Term Expires 2026

Commissioner Louis E. Sola

Appointed 2019

Term Expires 2023

Commissioner Carl W. Bentzel

Appointed 2019

Term Expires 2024
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Federal Maritime Commission

Commission Bureaus and Offices

Bureau of Certification and Licensing (BCL) protects the public from financial harm through its 

OTI licensing, registration, and surety bonding programs. BCL also protects the public by 

requiring passenger vessel operators (PVOs) to maintain adequate financial coverage to 

reimburse cruise cancellations or to cover liability in the event of death or injury at sea.

Bureau of Enforcement, Investigations, and Compliance (BEIC) is the prosecutorial arm of the 

Commission. Bureau attorneys serve as trial counsel in formal proceedings and protect the 

shipping public by working closely with the Commission’s investigators, to examine potential 

violations of the Shipping Act and Commission regulations. BEIC negotiates settlements and 

informal compromises of civil penalties and may act as investigative officers in formal factfinding investigations.

Bureau of Trade Analysis (BTA) analyzes and monitors the concerted activities of vesseloperating common carriers (VOCCs or carriers) and MTOs to detect and guard against possible 

anticompetitive abuse of authority contained in filed agreements which could result in 

substantial increases in transportation costs or decreases in transportation services. BTA also 

reviews and analyzes service contracts, monitors rates of foreign, government-owned 

controlled carriers; and reviews carrier-published tariff systems under the accessibility and 

accuracy standards of the Shipping Act. 

Office of the Administrative Law Judges (OALJ) presides over administrative hearings and 

independently resolves cases involving alleged violations of the Shipping Act of 1984 initiated 

by private parties or by the Commission. Through trial hearings and the issuance of decisions,

the OALJ ensures that the rights of all parties are preserved.

Office of Consumer Affairs and Dispute Resolution Services (CADRS) provides assistance to 

shippers, OTIs, cruise operators and passengers, truckers, MTOs, and carriers by providing 

alternative dispute resolution (ADR) services, ombuds assistance, mediation, and facilitation to 

resolve disputes involving cargo shipments, household goods shipments, and cruises.

Office of Equal Employment Opportunity (OEEO) advises and assists the Commission in 

carrying out its responsibilities relative to Titles VI and VII of the Civil Rights Act of 1964 (as 

amended), other laws, executive orders, and regulatory guidelines implementing affirmative 

employment; and the processing of EEO complaints.

Office of the Inspector General (OIG) is an independent oversight office created within the FMC 

by the Inspector General Act of 1978 (as amended) to conduct and supervise audits, 

inspections, and investigations relating to the FMC’s programs; to detect and prevent waste,

fraud, and abuse; to promote economy, efficiency, and effectiveness; to keep the Chairman, 

Commissioners, and Congress fully informed of serious problems and deficiencies and 

recommend corrective actions; and, as appropriate, to report violations of law to the U.S. 

Attorney General.

Office of the General Counsel (OGC) provides sound and timely legal services to the 

Commission and staff as it fulfills responsibilities, including preparing final decisions, orders, 
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Federal Maritime Commission

and regulations for Commission approval and issuance; represents the Commission in litigation 

before the courts; provides technical and policy assistance to other government agencies 

engaged in international negotiations or discussions on shipping matters; and provided legal 

opinions to the Commission, its staff, and the general public in appropriate instances. OGC also 

oversees the Commission’s international affairs activities. The General Counsel is the 

Commission’s Chief Legal Officer.

Office of the Managing Director (OMD) implements the administrative directives of the 

Chairman and manages and coordinates Commission program offices and bureaus. The 

Managing Director is the Chief Operating Officer. The Director, Enterprise Services also serves 

as the Chief Financial Officer and oversees the administrative offices of the Commission, 

including the Offices of Budget and Finance (OBF), Human Resources (OHR), Information 

Technology (OIT), and Management Services (OMS).

Office of the Secretary (OS) serves as the office through which all filings are made in 

Commission proceedings, notices of proceedings are given, and from which all official actions 

are issued by the Commission. OS prepares and maintains agenda matters and actions taken by 

the Commission; maintains official files and records of formal proceedings; ensures compliance 

with the Freedom of Information, Government in the Sunshine, and Privacy Acts; responds to 

information requests from the public; issues publications and authenticates instruments and 

documents of the Commission; maintains a public reference/law library and a docket library; 

and oversees the organization and content of the Commission’s website.

Recent Developments

The FMC has an important role in U.S. competition and consumer protection in the 

international ocean transportation shipping supply chain. Events over the past several years, 

including most obviously and most significantly, those related to the COVID-19 pandemic, have 

exposed weaknesses in the Nation’s supply chain and created increased interest in FMC 

oversight over the international ocean transportation system. In response to high rates, low 

reliability, and extreme delays due to congestion; consumers, industry stakeholders, and the 

U.S. Congress looked to the Commission to help solve the emergent issues. The Ocean Shipping 

Reform Act of 2022 (OSRA 2022) was passed in furtherance of this goal, and the Commission 

has responded by adjusting its priorities to align with the current conditions in the industry and 

OSRA 2022. Although the dire conditions that brought about this interest and legislation have 

already begun to wane, the underlying weaknesses remain, and the Commission’s emphasis on 

the issues will not relent.
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Federal Maritime Commission

Ocean Shipping Reform Act of 2022

With the passage of OSRA 2022, the FMC’s ability to safeguard competition and protect 

shippers, particularly in the U.S. agricultural export sector, was bolstered. For the benefit of the 

ocean shipping industry, the FMC is committed to timely implementation of the new law and 

has made great strides in meeting the ambitious congressional timelines it contained.

OSRA 2022 modified the Shipping Act in the following ways: 

• Strengthened the prohibition against unreasonably refusing to deal or negotiate and 

extended it to prohibit the unreasonable refusal of cargo space accommodations when 

available; 

• Expanded the prohibition against retaliation directed at shippers, including by extending 

its scope to include additional regulated entities; 

• Established minimum invoice requirements, including a mandate that all invoices must 

include a certification that the charges are reasonable, and created a provision that 

invalidates charges on noncompliant invoices;

• Created a new mechanism for shippers to submit complaints about charges to the FMC 

for investigation, potential refunds, and potential civil penalties; 

• Enabled the FMC to order refunds, in addition to civil penalties, to shippers after notice 

and opportunity for a hearing; 

• Formally established the FMC’s existing Office of Consumer Affairs and Dispute 

Resolution Services (CADRS), recognizing its important role in providing consumer 

assistance; and 

• Mandated FMC registration for any shipping exchange registry involving ocean 

transportation in the U.S. foreign commerce. 

In addition to the efforts required to implement and enforce the preceding changes, OSRA 2022 

mandated the Commission undertake the following activities: 

• Rulemaking to define what constitutes unreasonable refusals to deal or provide cargo 

space accommodations when available; 

• Rulemaking to determine whether additional minimum billing requirements are 

necessary, and if so, to establish them; 

• Creating a webpage that allows the public to submit comments, complaints, concerns, 

reports of noncompliance, requests for investigation, and requests for alternative 

dispute resolution; 

• Increasing staff by not fewer than seven positions to assist in investigations and 

oversight; 

• Collecting and publishing specified information to foster increased transparency 

surrounding movement of U.S. agricultural and other exports, practices of state-owned, 

state-controlled, and certain other foreign-owned ocean common carriers, and instances 

of improper invoicing and the resulting penalties; 

• Engaging with the National Academy of Sciences to begin a study on best practices for 

on-terminal or near-terminal chassis pools; 
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• Determining whether FMC temporary emergency authority to collect data during times 

of emergency congestion is warranted; and 

• Publishing the results of Fact Finding 29. 

Priorities Reflecting Ocean Shipping Industry Conditions

The Commission’s response to recent developments in the ocean shipping industry is focused in 

three areas: Support to U.S. Exporters, Increased Enforcement Activities, and Enhanced 

Consumer Assistance.

SUPPORT TO U.S. EXPORTERS

In addition to increasing consumer assistance, the Commission is prioritizing support of U.S. 

exporters by addressing industry conditions and best practices concerning the carriage of 

exports directly with common carriers and other regulated entities; investigating and 

prosecuting instances where a vessel-operating common carrier (VOCC) is unreasonably 

refusing to deal with an exporter or handle export cargo; and with the designation of an export 

expert in CADRS to expeditiously handle export disputes to move freight more quickly. Speed is 

particularly important for U.S. agricultural exporters because of the perishable nature of their 

commodities.

INCREASED ENFORCEMENT ACTIVITIES

The Commission is focusing enforcement resources on high-impact cases that will create a 

substantial deterrent against the most serious violations of the Shipping Act. 

Investigative and prosecutorial functions have been consolidated in a newly-created Bureau of 

Enforcement, Investigations, and Compliance (BEIC) to enable more effective and efficient 

investigations, compliance reviews, and formal enforcement actions. 

An interim process for receiving and investigating charge complaints, a new avenue for relief 

for aggrieved shippers created by OSRA 2022, is in place and investigations are underway. The 

Commission is devoting significant resources to ensure charge complaints are processed quickly 

as contemplated by the law. 

ENHANCED CONSUMER ASSISTANCE

The Commission has expanded the Office of Consumer Affairs and Dispute Resolution Services

(CADRS) to advocate for U.S. shippers, provide informational assistance, and facilitate 

expeditious and fair informal resolution of international ocean shipping disputes. CADRS offers 

ombuds assistance, mediation, facilitation, and arbitration to resolve challenges and disputes 

involving cargo shipments and household goods shipments that might otherwise be submitted 

to the Commission for costly litigation. 

In compliance with OSRA 2022, the Commission began to update its website to make it easier 

for the public to engage with the Commission. When completed, the website will allow for the 

submission of comments, complaints, concerns, reports of noncompliance, requests for 

investigation, and requests for alternative dispute resolution. 
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FY 2022 Performance Highlights

Competition and Reliability Oversight

Economic analysis of the U.S.-foreign ocean shipping trade and oversight of ocean common 

carrier and marine terminal operator operations and cooperative agreements is at the heart of 

maintaining competition and reliability in the global supply chain. Bolstered by OSRA 2022, the 

Commission’s recent work to address current supply chain challenges assists the public by 

improving supply chain efficiency and ensuring the supply chain remains competitive for U.S. 

shippers. This is also accomplished through analysis and evaluation of the competitive impact of 

the shipping industry’s practices for the benefit of U.S. exporters/importers and the U.S. 

consumer.

The Commission guards against unreasonable increases in transportation costs or decreases in 

transportation services that are attributed to anticompetitive practices under FMC-filed 

agreements. To do so, the Commission analyzes and monitors key U.S. trade lanes; and 

assesses the competitive effects of agreement parties’ activities, particularly focusing on issues 

of costs (freight rates), vessel capacity (supply), and equipment availability. Enforcement of 46 

U.S.C. §§ 41105 and 41307 preserves competition in the purchase of certain covered services 

(as defined in 46 U.S.C. § 40102(5)).

Detention and Demurrage Billing Requirements: After receiving interim recommendations 

from the Commission’s Fact Finding 29 Investigation, the Commission issued an Advance Notice 

of Proposed Rulemaking (ANPRM) to solicit public comment on detention and demurrage 

billing requirements, including certain minimum information common carriers or marine 

terminal operators should be required to include in billings, and whether common carriers 

should be required to adhere to certain practices regarding billing timing. To underscore the 

importance of ensuring the legitimacy of billing and charges, OSRA 2022 added minimum 

invoice requirements for detention and demurrage charges, as well as a provision to eliminate 

charges for invoices that do not comply. The Commission consolidated the existing billing 

requirements rulemaking with OSRA 2022’s provisions and issued a Notice of Proposed 

Rulemaking in early FY 2023. 

Vessel-Operating Common Carrier Audit Program: The Commission’s VOCC Audit Program, 

established in July 2021, assesses ocean common carriers’ compliance with the FMC’s 

interpretive rule on detention and demurrage, as well as complaints from shippers and other 

stakeholders regarding detention and demurrage practices. The VOCC Audit Team continued 

this work in FY 2022. Through quarterly review of quantitative and qualitative information from 

the ocean common carriers regarding their internal and external detention and demurrage 

practices, as well as details of substantive changes to their detention and demurrage tariff 

rules, the FMC is working to ensure compliance with shipping laws and develop best practices 

for continued improvement.

Establishment of International Ocean Shipping Supply Chain Program: The Commission 

established International Ocean Shipping Supply Chain Program within the Bureau of Trade 
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Federal Maritime Commission

Analysis to study and address the growing needs of the Nation’s supply chain. Key personnel 

have already been on-boarded, including the Director of Maritime Supply Chain Analytics and 

several data scientists.

Initiating Requirements for Compliance Officer: The Commission is working with ocean carriers 

and marine terminal operators to designate FMC Compliance Officers in their organizations. 

FMC Compliance Officers will aid in ensuring compliance with the law and Commission 

regulations and provide a direct point of contact for Commission interaction. 

Maritime Transportation Data Initiative: In December 2021, Commissioner Carl W. Bentzel

initiated a project to identify data constraints that impede the flow of ocean cargo and add to 

supply chain inefficiencies. The project aimed to evaluate the need for data standards and

investigate best practices for data access and transmission essential for a reliable and stable 

ocean transportation system. Meetings with maritime and intermodal stakeholders were held 

in FY 2022 and culminated in a data summit in June 2022. The report, expected in early FY 2023,

will inform the Commission on the current needs, and potential solutions, for improvements in 

data transparency to create greater efficiency in the movement of cargo.

National Shipper Advisory Committee: At the direction of Congress, the Commission

established the National Shipper Advisory Committee (NSAC or Committee) in 2021. The NSAC 

is comprised of members who represent entities importing and exporting cargo to and from the 

United States. The purpose of the Committee is to advise the Commission on policies relating to 

the competitiveness, reliability, integrity, and fairness of the international ocean freight 

delivery system. The Committee is responsible for identifying the scope of its work and for 

providing advice, reports, and recommendations to the Commission. The Committee has 

provided recommendations designed to bring relief to the industry which are under 

consideration. 

Agreement Review: Approximately 375 agreements, comprised of vessel-operating common 

carrier (VOCC) agreements, marine terminal operator (MTO) agreements, and assessment 

agreements, are on file with and monitored by the Commission. Approximately 75 percent of 

these are VOCC agreements. The Commission also monitors approximately 90 MTO agreements 

serving the U.S. East, Gulf, and West coasts. In addition, approximately 100 agreements 

containing joint procurement of covered services are reviewed quarterly by the FMC under 

alternative periodic reporting requirements. These reporting requirements ensure that the 

Commission is aware of and can monitor any joint negotiation or procurement activity in a 

timely manner to ensure adequate competition for U.S. providers of these services. In March 

2022, the FMC issued a final rule to modernize outdated requirements and clarify existing 

requirements for MTO schedules to assist the shipping public make time-sensitive business 

decisions.

Service Contracts: 444,448 original service contracts and 651,254 contract amendments were 

filed into the SERVCON system in FY 2022. More than 8,500 publicly available tariff locations 

are posted on the FMC’s website. Roughly 150 of these are VOCCs and the balance are nonvessel-operating common carriers (NVOCCs). 
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Federal Maritime Commission

Carrier Automated Tariffs: A Notice of Proposed Rulemaking (NPRM) was published in May 

2022 seeking public comment on revisions to the Commission’s regulations on carrier 

automated tariffs to determine if changes are needed to existing regulations that help the 

public identify ocean carriers’ rates and rules. The Commission expects to issue a final rule in 

early FY 2023.

Consumer Protection Oversight

The Commission protects the shipping public through its distinct programs: enforcement, 

including investigation and compliance; licensing and certifications; formal private party 

complaints adjudicated by the Office of the Administrative Law Judges; and alternative dispute 

resolution services provided by the Office of Consumer Affairs and Dispute Resolution Services.

OSRA 2022 expanded the FMC’s efforts and authorities in this area indicating the importance of 

this function, and the Commission has responded to grow these programs in service to the U.S. 

public.

Enforcement Actions: Enforcement efforts focused on addressing VOCC and MTO practices that 

assess unjust or unreasonable charges. Focusing the Commission’s resources on high-impact 

cases creates a substantial deterrent against similar illegal conduct. Three formal proceedings 

involving unjust and unreasonable practices and other in violation of the Shipping Act were 

initiated. One proceeding resulted in a civil penalty of $2 million and two proceedings are 

ongoing.

New Enforcement Structure: The Commission reorganized its investigative and prosecutorial 

functions by consolidating them into the Bureau of Enforcement, Investigations, and 

Compliance (BEIC). This newly established bureau provides a structure better suited to 

investigate suspected violations and pursue enforcement activity when appropriate while still 

encouraging and emphasizing compliance as a primary goal. The Commission’s Area 

Representatives were converted to Investigators and received specialized training to conduct 

investigations in the field through a systematic fact-finding approach. 

Ocean Transportation Intermediary Licensing: Over 9,200 ocean transportation intermediaries 

(OTIs) are regulated by the Commission, including approximately 5,050 licensed entities based 

in the United States. More than 4,070 foreign-based NVOCCs are registered with the 

Commission. More than 740 new and amended OTI applications were received during the fiscal

year, and approximately 1,500 OTI licenses were renewed, with most reviewed and processed 

within 48 hours of submission.

Ocean Transportation Intermediary Financial Responsibility: The Commission provides 

oversight over approximately $1 billion in surety bonds which ensure OTIs have sufficient 

financial resources to operate responsibly. In FY 2022, this included processing of over 1,000 

bond termination notices, 1,000 OTI bond riders, and 2,000 new and replacement bonds

processed. 

Passenger Vessel Operators: In FY 2022, the Commission’s Passenger Vessel Operator (PVO) 

program certified 258 vessels and 48 operators, with aggregate evidence of financial 

responsibility coverage of over $800 million for non-performance and $700 million for casualty. 
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Federal Maritime Commission

In addition, the Commission concluded its Fact Finding 30 Investigation, COVID-19 Impact on 

Cruise Industry, in January 2022 and amended the regulations governing non-performance by 

PVOs to establish new requirements for when cruise passengers should be provided refunds for 

cancelled or delayed voyages in February 2022.

Legal Proceedings before the FMC: The Commission’s Administrative Law Judges (ALJs) operate 

independently under the Administrative Procedure Act, 5 U.S.C. Subchapter II, to resolve cases 

involving alleged violations of the Shipping Act and other laws within the Commission’s 

jurisdiction. Information on proceedings can be found in the FMC Reading Room on the FMC’s 

website.

Charge Complaints: OSRA 2022 established a new avenue for relief for shippers called a charge 

complaint. The Commission must promptly investigate "information concerning complaints 

about charges assessed by a common carrier” and, if they are found to be unlawful, promptly 

issue refunds and penalties The Commission established an interim process to receive, 

investigate, and evaluate charges paid to carriers that are not in compliance with the law. Of 

101 complaints received, 37 complaints proceeded to the investigation stage. The 

investigations are ongoing, and complaints continue to come in. Guidance on this new process 

is available on the FMC website and additional education efforts will be undertaken as the 

process is refined and finalized.

Retaliation and Other Obstacles to Private Party Complaints: As recommended in the Fact 

Finding 29 Final Report, the Commission issued several policy statements to set forth its 

position on potential retaliation, awarding of attorney fees in Commission cases, and 

representational complaints filed by associations on behalf of their members. These policy 

statements were intended to clarify some uncertainties that were potentially inhibiting private 

parties from filing cases before the Commission. With the passage of OSRA 2022, the law now 

specifically prohibits retaliation against shippers who file complaints at the Commission, and 

any instances of alleged retaliation will be investigated and prosecuted swiftly and fully.

Alternative Dispute Resolution: Recently expanded and reinforced by OSRA 2022, the Office of 

Consumer Affairs and Dispute Resolution Services, assists the ocean shipping industry

stakeholders, particularly shippers, to resolve disputes on an informal basis, saving consumers 

money and time. in FY 2022, CADRS responded to 1,496 inquiries from the public. Of that total, 

302 ombuds or informal dispute resolution matters were handled: 143 related to commercial 

cargo, 34 involved household goods shipments, and 125 were cruise matters. 
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Federal Maritime Commission

Organizational Management

The Commission recognizes the importance of effective, performance-oriented management 

and prudent employment of all allocated resources. The administrative support program

required to effectuate the Commission’s mission includes information technology services, 

human resources support, budget and financial planning, and procurement of goods and 

services.

Information Technology and Cybersecurity

The FMC’s investments in its IT infrastructure, cloud tenant, and security posture allowed it to 

remain operational under maximum telework flexibilities during the ongoing COVID-19 

pandemic and to meet cybersecurity requirements. The Commission benefited from 

experiences during the COVID-19 pandemic and will use the lessons learned to continue to 

develop and improve hybrid work capability. 

FMC Systems/Applications. During FY 2022, the Commission assessed the progress of IT 

modernization initiatives to establish a new baseline for future development. The assessment 

identified emerging business requirements from internal and external stakeholders due to the 

changing use of technology. Motivated by requirements to protect against cybersecurity 

threats, the Commission began conducting a review of each system. This analysis, to be 

completed in FY 2023, will inform the decision to continue with customized applications or 

adopt other suitable commercial solutions are viable. 

Case Management. To meet the goals of OSRA 2022 and our mission, research began during FY 

2022 to upgrade antiquated internal systems and obtain new case management systems. Staff 

will use case management systems to track enforcement cases, investigatory matters, public 

inquiries, and filings. In addition to expedited response times and efficient tracking, the case 

management system that results from this research will allow the Commission to produce data 

to fulfill the various public reporting requirements of OSRA 2022. 

Website Enhancements. In FY 2022, the Commission began updating its website to improve 

interaction with the public and comply with OSRA 2022 requirements. The website project will 

enhance public interaction with the FMC in a more secure environment, as well as provide new 

tools for the Commission to manage complaints and inquiries. When completed, the new 

website will allow the public to easily submit filings and inquiries.

Strengthening Federal Hiring

The Commission has encountered difficulty in attracting the requisite talent to fill vacancies for 

economists, industry analysts, and attorney advisors. OPM’s automated USA Hire tool, which 

allows agencies to implement and use a skill and competency-based assessment to measure a 

candidate’s ability to perform the job, is being used. The Commission is also reviewing areas 

that may improve recruitment and retention efforts.

The Commission has continued its partnership with the Surface Transportation Board (STB) to 

collaborate on a shared Equal Employment Opportunity Manager. This practice has been used 

since 2019 and has proven to be beneficial for both organizations. 
FISCAL YEAR 2022 | Performance and Accountability Report | 18

Federal Maritime Commission

To leverage talent, the Commission employed four interns through its Volunteer Service 

Program in FY 2022, which provides paid education-related work assignments for students. 

Advancing Equity

The Commission supports the Administration’s efforts to promote equity and remove barriers 

from underserved populations. As an independent agency, the Commission has voluntarily 

complied with Executive Order 13985, Advancing Racial Equity and Support for Underserved 

Communities Through the Federal Government, and OMB Memo M-21-17, by conducting equity 

assessments of programs and services directed at the public. The Commission’s Equity Action 

Plan sets timelines for further equity review and action for the public’s access to FMC 

information and the FMC’s acquisitions and contracting work. The agency will continue to 

consider steps to serve underprivileged groups and to ensure that the FMC is accessible to the 

public.

The FMC is voluntarily participating in Executive Order 14035, Diversity, Equity, Inclusion, and 

Accessibility in the Federal Workforce, which is geared towards cultivating a workforce that 

draws from our Nation’s full diversity and advancing equitable employment opportunities for 

individuals from underserved communities. The Commission’s Diversity, Equity, Inclusion, and 

Accessibility (DEIA) Strategic Plan, completed in FY 2022, outlines the FMC’s strategy to support 

the people who carry out the FMC’s mission. The DEIA Strategic Plan will ensure that the FMC 

continues to seek and promote best practices and opportunities to ensure diversity, equity, 

inclusion and accessibility in the agency’s human resources practices and workforce 

composition.

Program Performance Overview

The Commission provides a performance plan to Congress, pursuant to the Government 

Performance and Results Act (GPRA). The FMC’s new Strategic Plan FY 2022-2026 (updated 

March 28, 2022) (Strategic Plan) is posted on fmc.gov. The FY 2022 Annual Performance Report 

is presented in Section Two of this Report.

Achieving Strategic Goal Results

The Commission’s Strategic Plan provides the foundation for planning and budgeting activities.

The plan sets goals and objectives for each fiscal year and contains targets and measures linked

to objectives via strategies. These objectives, strategies, targets, and measures drive the 

agency’s budgetary process. During FY 2022, the Commission exceeded ten of its eleven 

performance targets.

Strategic Management of Human Capital

In FY 2022, the Commission continued to recruit and retain a talented staff while appropriately 

managing succession in the Commission’s relatively small workforce.

Strong leadership remains a critical asset, particularly as the FMC looks to advance performance 

through organizational management, as outlined in our current Strategic Plan. The Commission 

continues to project the future needs to continue supporting mission requirements.
FISCAL YEAR 2022 | Performance and Accountability Report | 19

Federal Maritime Commission

To advance performance, the FMC continues to support succession management by expanding 

leadership opportunities under the agency’s Leadership Development Program and a newly 

created Senior Executive Leadership Development Program. The FMC also initiated a “Path to 

Leadership” program geared toward training FMC staff on the fundamentals of the Senior 

Executive Service through seminars and roundtable discussions. Additionally, functions across 

the Commission continue to be assessed to allow for career growth and advancement 

opportunities where possible. Continuous training and development in leadership 

competencies will prepare the next generation of leaders at the Commission.

Competitive Sourcing

The FMC submitted its FY 2021 Federal Activities Inventory Reform Act (FAIR Act) inventory to 

OMB in July 2022. The inventory identified 75 of the agency’s 128 positions as commercial 

activity positions. No challenges to its commercial inventories have ever been received.

Expanded E-Government

The FMC worked diligently during the fiscal year to provide the public with exceptional 

customer service. Commission news, documents, and events were posted in a timely fashion. 

The website and social media will continue to be regularly updated, providing important 

information about the Commission’s activities to the public.

Ongoing enhancement of the Commission’s IT systems continued to bring efficiencies and 

process improvements across the agency. Public-facing web applications allowed the 

Commission to remain fully operational under maximum telework flexibilities during the 

pandemic and as staff began re-entry to the workplace. During FY 2022, the Commission began 

formulating the next edition of the Information Technology Strategic Plan (IT Strategic Plan) to 

identify opportunities to use technology solutions and resource allocations for ongoing and 

future needs. The updated IT Strategic Plan will leverage digital transformation and initiatives 

for continuous improvement of public facing and internal systems, striving to stay abreast of 

technology advances and evolving cybersecurity requirements through investments in 

commercial solutions wherever possible.

The Commission continued to work with the U.S. Department of Homeland Security (DHS) in 

provisioning technology infrastructure to comply with the Federal Risk and Authorization 

Management Program (FedRAMP) and DHS continuous monitoring requirements for network 

security. Internal security tools have been deployed to effectively monitor and address network 

operations, including file integrity; password sufficiency; and probing for open ports and other 

externally visible points of attack.

Financial Performance Overview

The FMC received an unmodified (“clean”) opinion on its FY 2022 financial statements and will 

continue efforts to improve operations and achieve unmodified audit opinions in the future.

The Commission’s financial condition as of September 30, 2022, is sound. Internal controls are 

in place to ensure that funds are used efficiently and effectively, and that the budget authority 

is not exceeded. The FMC’s accounting services provider, the Department of Treasury’s Bureau 
FISCAL YEAR 2022 | Performance and Accountability Report | 20

Federal Maritime Commission

of the Fiscal Service (BFS), prepared the financial statements as required by the Accountability 

of Tax Dollars Act of 2002. The statements have been prepared from, and are fully supported 

by, the books and records of the FMC in accordance with Federal Generally Accepted 

Accounting Principles (GAAP), standards approved by the Federal Accounting Standards 

Advisory Board (FASAB), and OMB Circular A-136, Financial Reporting Requirements.

The principal financial statements provided in this document are prepared to report the 

financial position and results of the operations of the FMC, pursuant to the requirements of 31 

U.S.C. § 3515(b). Reports used to monitor and control budgetary resources are prepared from 

the same books and records.

Source of Funds

The FMC has a single source of funding for salaries and expenses, provided by an annual 

appropriation available for commitments and obligations incurred during the fiscal year in 

which the authority was granted. Congress approved FY 2022 appropriations for the FMC in the 

amount of $32,869,000 through P.L. 117-103. This is an increase of $2,569,000 over the FY 2021

appropriation level. Additionally, the Commission received reimbursements of $216,332 for 

work performed by FMC’s employees supporting other government agencies and provided 

$40,500 to reimburse another government agency for resources to support implementation of 

requirements of OSRA 2022.

The FMC collects remittances for user fees and penalties; however, it is not authorized to offset 

any of its budget authority by using these funds. Collections are deposited directly into the 

Treasury General Fund. This information is captured in the Statement of Custodial Activity 

found in the Financial Information section of this report.
FISCAL YEAR 2022 | Performance and Accountability Report | 21

Federal Maritime Commission

Appropriations History

Appropriations History

Fiscal Years 2013-2022 ($M)

Full-time Equivalent History

The FMC’s Full-time Equivalent (FTE) level is largely driven by its annual appropriation level. The 

FMC currently has its full complement of five statutorily-authorized Commissioners on board.

The continued fast pace of retirements and separations in FY 2022 resulted in a lower than 

anticipated FTE level, at 118.4 FTEs, with 122 employees on board at the fiscal year’s end. The 

Commission endeavors to fill vacancies and develop the appropriate mix of staffing and other 

available resources to ensure effective accomplishment of its mission.

Fiscal Years 2013-2022

119 113 117 123 125

118 112 111 116 118

0

20

40

60

80

100

120

140

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
FISCAL YEAR 2022 | Performance and Accountability Report | 22

Federal Maritime Commission

Uses of Funds

During FY 2022, obligations against the FMC’s appropriation totaled $32.87 million representing 

99.1 percent of the appropriation. Salaries and benefits are the single largest expense category 

at $21.5 million, or 65.41 percent of the total budget. The second largest category, rent and 

building security services, is approximately $4.4 million, or 13.4 percent of the total budget.

Other administrative expenses and the Office of the Inspector General comprise the remaining

20.6 percent of the budget. The unexpended balance of $0.484 million, or 1.4 percent of the 

total budget, will be retained for allocation to legitimate increases to existing FY 2022 

obligations.

Audit Results

The FMC again received an unmodified (“clean”) opinion on its FY 2022 financial statements 

from the auditing firm of Dembo Jones, P.C., under contract through the FMC’s Office of the 

Inspector General. Comparative statements may be found in the Financial Information section 

of this report.

Financial Statement Highlights

The financial statements were prepared to report the financial position and results of 

operations of the Commission pursuant to the requirements of 31 U.S.C. § 3515(b). The 

statements were prepared from the books and records of the Commission in accordance with 

the formats prescribed by OMB.

The FMC’s financial statements summarize the financial position and financial activity of the 

agency. The financial statements, footnotes, and the remainder of the required supplementary 

information appear in their entirety in the Financial Information section of this report. A brief 

analysis of the principal statements follows.

Summary of Assets

The FMC’s assets were $11,442,908 as of September 30, 2022. This represents an increase of 

$2,949,933 from FY 2021. The FMC’s assets reported on the balance sheet are summarized in 

the following table.
FISCAL YEAR 2022 | Performance and Accountability Report | 23

Federal Maritime Commission

The Fund Balance with Treasury of $11,361,461 represents the FMC’s largest asset and 

comprises 99 percent of the agency’s total assets. The Fund Balance with Treasury is comprised 

only of annual appropriations maintained by the Department of the Treasury to address current 

liabilities. 

Accounts Receivable, as of September 30, 2022, totaled $81,447 for outstanding receivables 

billed to both Federal and non-Federal entities. This accounts for 1 percent of the FMC’s assets.

Capital Assets, also known as Property, Equipment, and Software, account for 0 percent of the 

FMC’s total assets as of September 30, 2022. The net value of $0 accounts for the depreciation 

of all assets and represents the current book value of those assets.

Summary of Liabilities

The FMC’s liabilities totaled $3,476,822 as of September 30, 2022, a decrease of $255,092 from 

FY 2021. A portion of the decrease is due to a reduction in accounts payable. The FMC’s assets 

reported on the balance sheet are summarized in the table below.

Summary of Assets as of

September 30, 2022

2022 2021

Fund Balance with Treasury $11,361,461 $8,407,506 

Accounts Receivable $81,447 $85,469 

Capital Assets $0 $0 

Other $0 $0 

Total Assets $11,442,908 $8,492,975 

Summary of Liabilities as of

September 30, 2022

2022 2021

Accounts Payable $346,715 $725,160 

Payroll Taxes $369,431 $335,890 

Federal Employee Benefits $1,716,095 $1,719,295

Custodial Liabilities $0 $0

Accrued Liabilities $1,044,581 $951,569

Total Liabilities $3,476,822 $3,731,914 
FISCAL YEAR 2022 | Performance and Accountability Report | 24

Federal Maritime Commission

The FMC’s Accounts Payable, as of September 30, 2022, was $346,715. This represents the 

funds owed for goods and services received from vendors. The accrued liabilities of $3,476,822 

represent future costs, such as accrued annual and sick leave balances and workers’

compensation that are not covered by current budgetary resources. Accumulated leave costs 

are recognized as they are taken, and workers’ compensation costs are recognized as they are 

paid out.

Analysis of Changes in Net Position Summary

The Changes in Net Position Summary is a summary of two factors, Unexpended Appropriations 

and Cumulative Results of Operations. The total net position for FY 2022 is the result of a 

$3,205,025 increase from FY 2021.

Unexpended Appropriations represent the amount of unobligated and unexpended budget 

authority for the 5-year period ending on September 30, 2022. Unobligated budget authority is

the amount of appropriations or other authority remaining after deducting the cumulative 

obligations from the amount available for obligation for the same period. The Cumulative 

Results of Operations (the cumulative excess of financing resources over expenses) is the net 

result of FMC’s operations for all active fiscal years.

Analysis of Net Cost Summary

The Net Cost Summary represents the net cost of FMC’s Programs as identified in the Annual 

Report. 

Changes in Net Position Summary as of

September 30, 2022

2022 2021

Unexpended 

Appropriations

$9,608,620 $6,410,608

Cumulative Results 

of Operations

($1,642,534) ($1,649,547)

Total Changes in 

Net Position

$7,966,086 $4,761,061
FISCAL YEAR 2022 | Performance and Accountability Report | 25

Federal Maritime Commission

The agency’s two programs are Operational and Administrative and Office of the Inspector 

General. The Statement of Net Costs shows the net cost of operations for the agency as a whole 

and its sub-organizations. Net Costs compared to Budgetary Resources can be found in the

Financial Information section of this report. This table reflects costs attributable to all active 

fiscal years (2018-2022).

Analysis of the Statement of Budgetary Resources

The Statement of Budgetary Resources (SBR) shows the source of the agency’s budgetary 

resources, the status of those resources at the end of the reporting period, and the relationship 

between the two. Total budgetary resources should equal the status of budgetary resources at 

all times. A more detailed SBR can be found in the Financial Information section of this report. 

During FY 2022, the FMC had a total of $35,774,743 available, representing an increase in 

Net Cost Summary as of

September 30, 2022

2022 2021

Operational and 

Administrative $29,729,508 $30,224,530

Office of 

Inspector General $573,313 $526,311

Total Net Cost $30,302,821 $30,750,841

Statement of Budgetary Resources as of

September 30, 2022

2022 2021

Incurred $32,899,803 $30,247,419

Unobligated Balance 

Unavailable $2,390,486 $2,458,280

Unobligated Balance 

Available $484,454 $238,875

Total Budgetary 

Resources $35,774,743 $32,944,574
FISCAL YEAR 2022 | Performance and Accountability Report | 26

Federal Maritime Commission

budgetary resources of $2,830,169 from FY 2021. The budgetary resources represent financial 

activity during the accounting period for the five active fiscal years (2018-2022).

Systems, Control, and Legal Compliance Analysis

The Commission’s internal controls are fundamental to the systems and processes used to 

manage its operations and achieve its strategic goals. The Chairman’s Statement of Assurance in 

the following section notes that there are no material weaknesses or instances of 

nonconformance to report for FY 2022.

Additionally, in accordance with the requirements of OMB Circular A-123, Management’s 

Responsibility for Enterprise Risk Management and Internal Control, the Commission’s 

Enterprise Risk Management Committee identifies, measures, and assesses risk points across 

the agency. The Committee’s risk profile is used in conjunction with existing internal controls to 

improve the Commission’s accountability and effectiveness.

Management Assurances

The Federal Managers’ Financial Integrity Act (FMFIA or Act) mandates that agencies establish 

controls that reasonably ensure that: 

• obligations and costs comply with applicable laws,

• assets are safeguarded against waste, loss, unauthorized use, or misappropriation, and 

• revenues and expenditures are properly accounted for and recorded.

This Act encompasses program, operational, and administrative areas, as well as accounting 

and financial management. FMFIA requires that the Chairman provide a statement assuring the 

adequacy of management controls and conformance of financial systems with Governmentwide standards; that the Commission’s managers are held accountable for efficient and 

effective performance of their duties in compliance with applicable laws and regulations; and 

that maintenance of the integrity of management activities is achieved through the use of 

controls.

Chairman Maffei has provided his annual assurance statement in this report based on various 

sources, including knowledge of the daily operation of Commission programs and activities;

regular discussions with the Managing Director, the Director of Enterprise Services, the 

Directors of the Offices of Budget and Finance and Management Services; audits of the financial 

statements; and implementation of the Commission’s Strategic Plan. The Chairman also meets 

regularly with the Commission’s Senior Management Team and receives regularly-scheduled 

reports from the FMC’s Office of the Inspector General and Office of Equal Employment 

Opportunity Director. 

Deficiencies identified in management control would be addressed at the Commission’s highest 

management levels. For example, corrective actions for significant deficiencies identified in the 

IT area would be overseen directly by the agency’s Chief Information Officer (CIO).

During the fiscal year, the Office of the Inspector General (OIG) identified no significant 

deficiencies and there were no significant management decisions made on which the OIG 
FISCAL YEAR 2022 | Performance and Accountability Report | 27

Federal Maritime Commission

disagreed. Management and the OIG reached agreement on all audit recommendations. 

Management resolved or worked to address a number of recommendations and will continue 

this work during FY 2023.

Debt Collection Improvement Act of 1996

The Debt Collection Improvement Act (DCI) enhanced the ability of the government to service 

and collect debts, as it centralized the collection of non-tax delinquent debt owed to the 

government. Federal agencies are required to refer delinquent accounts in excess of 180 days 

to Treasury for collection. Collection of the Commission’s delinquent debts is conducted by the 

Bureau of the Fiscal Service through the Cross-Servicing Program and Treasury Offset Program, 

where the names and taxpayer identification numbers (TIN) of the delinquent entities are 

matched against the TINs of recipients of government payments. The balance owed to the 

government is deducted or offset from the payment to the entity to satisfy the debt. The goal is 

to minimize the amount of delinquent debt owed to the government. During FY 2022, the FMC 

effectively managed debt collection in accordance with the DCI and delinquent accounts were 

timely submitted to Treasury.

Digital Accountability and Transparency Act of 2014 (DATA Act)

The DATA Act, an amendment to the Federal Funding Accountability and Transparency Act of 

2006 (Public Law No. 109-282), required the establishment of government-wide data standards 

for spending information that agencies report to Treasury, OMB, and the General Services 

Administration (GSA). The Commission began reporting standardized spending information on 

May 9, 2017. Additionally, the DATA Act required Treasury and OMB to publish standardized

spending information for free access and download on the government’s USASpending.gov

website beginning on May 9, 2018.

Fiscal year 2022 was the fifth year of DATA Act implementation. Working closely with its 

Federal Shared Service Provider, the Administrative Resource Center (ARC) at the Bureau of the 

Fiscal Service (BFS), the FMC complied with all requirements and timely submitted all DATA Act 

certifications.

In November 2021, the OIG completed a third audit of the Commission’s DATA Act compliance.

This audit found improvement in the quality of procurement information reported and that 

error rates for completeness, accuracy, and timeliness had improved. Recommendations made 

in the 2019 audit for enhancing the Commission’s Data Quality Plan were incorporated,

implemented, and found to be effective by the OIG. Based on the results of the OIG’s testing for 

the FMC’s DATA Act audit for Q4 FY 2020, the FMC scored 97.80 points, which is a quality rating 

of excellent.

Prompt Payment Act of 1982

The Prompt Payment Act requires agencies to make timely payments to vendors for supplies 

and services, to pay interest penalties when payments are made after the due date, and to take 

cash discounts when they are economically justified. In FY 2022, the FMC maintained a 100 

percent on-time payment rate and paid $0 in interest payments.
FISCAL YEAR 2022 | Performance and Accountability Report | 28

Federal Maritime Commission

Performance Measure Summary

The Commission does not have an in-house financial accounting system and, therefore, does 

not receive a Performance Measure Summary from the Department of the Treasury. The 

Commission acquires travel, procurement, accounting, and financial services from the Bureau 

of Fiscal Services, and verifies and reconciles all financial statements and reports prior to 

submission.

Inspector General Act and Inspector General Reform Act

Section 5(b) of the Inspector General Act of 1978 requires agencies to report on final actions 

taken on OIG audit recommendations. Action was taken to close all audit recommendations 

during the year. No significant deficiencies or material weaknesses were identified during 

FY 2022.

Inspector General-Issued Audits -- FY 2022

A22-01: DATA Act Audit, 2021

Date Issued Recommendations Remediated in FY 2022

November 2021 0 N/A

A22-02: Audit of the FMC’s Compliance with the Federal Information Security Modernization Act 

FY 2021 

Date Issued Recommendations Remediated in FY 2022

October 2021 1 1

A22-03: Independent Auditors’ Report of the FMC’s FY 2021 Financial Statements

Date Issued Recommendations Remediated in FY 2022

November 2021 0 N/A

Treasury Assurance Statement – USA Spending Reconciliation

The FMC has implemented its plan to ensure data completeness and accuracy on 

www.USASpending.gov by using control totals with financial statement data and comparing 

samples of financial data to actual award documents. The prime Federal award financial data 

reported on www.USASpending.gov is correct at the reported percentage of accuracy, and the 

FMC has adequate internal controls over the underlying spending.

Limitations of the Financial Statements

The principal financial statements are prepared to report the financial position and results of 

operations of the Commission, pursuant to the requirements of 31 U.S.C. § 3515(b). The 

statements are prepared from the books and records of the Commission in accordance with 

Federal GAAP and the formats prescribed by OMB. Reports used to monitor and control 

budgetary resources are prepared from the same books and records. The financial statements 

should be read with the understanding that they are for a component of the U.S. Government.
FISCAL YEAR 2022 | Performance and Accountability Report | 29

Federal Maritime Commission

Federal Managers’ Financial Integrity Act Statement of Assurance

The Federal Maritime Commission is responsible for managing risks 

and maintaining effective internal control and financial management 

systems to meet the objectives of Sections 2 and 4 of the Federal 

Managers’ Financial Integrity Act. This includes conducting assessments 

to determine the effectiveness of internal control and conformance 

with financial system requirements. The Commission conducted its 

assessments in accordance with OMB Circular No. A-123, 

Management’s Responsibility for Enterprise Risk Management and 

Internal Control. 

These assessments considered the effectiveness of internal control 

over operations, risk management, financial reporting, and compliance 

with applicable laws and regulations. The objectives are to ensure the effectiveness and 

efficiency of operations, the reliability of reporting for internal and external use, and 

compliance with applicable laws and regulations.

Based on the results of this assessment, I can provide reasonable assurance that the 

Commission’s internal control over operations, risk management, financial reporting, and 

compliance were operating effectively as of September 30, 2022. No material weaknesses were 

found in the design or operation of internal control over financial reporting. 

The Commission assessed its financial management systems’ conformance with financial 

system requirements, in accordance with the requirements of OMB Circular No. A-123, 

Appendix D. Based on this assessment, I can provide reasonable assurance that the FMC’s

financial management systems conform to these requirements and that no material nonconformances or instances of noncompliance were identified.

/s/

Daniel B. Maffei

Chairman

November 15, 2022
FISCAL YEAR 2022 | Performance and Accountability Report | 30

Federal Maritime Commission

Annual Performance Report
FISCAL YEAR 2022 | Performance and Accountability Report | 31

Federal Maritime Commission

Introduction

The FMC’s performance management system includes specific strategic goals, performance 

measures, and targets. The strategic goals represent the FMC’s mission and reflect the overall 

outcomes and objectives the agency strives to achieve. This report describes progress towards 

performance targets in FY 2022 in furtherance of the Commission’s mission to ensure a 

competitive and reliable international ocean transportation supply system that supports the 

U.S. economy and protects the public from unfair and deceptive practices.

During 2021, the FMC engaged in a systematic strategic planning process which included 

reviewing the FY 2018-2022 Strategic Plan; assessing the mission statement; conducting a 

Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis; and assessing whether 

measures and targets under the FY 2018-2022 Strategic Plan continued to provide appropriate 

performance measures considering the changes that were being observed in the supply chain.

Based on that comprehensive process, which included the opportunity for public and 

Congressional comment, the FMC developed a new Strategic Plan covering fiscal years 2022-

2026.

This strategic planning process validated retention of the Commission’s two previous strategic 

goals as broad outcomes that the Commission should continue to achieve consistent with its 

statutory mandate. The FMC’s strategic planning process refined and focused several of the 

strategies and measures and added a stewardship objective that supports the mission activities 

across the Commission. This new objective focuses on human resources, information 

technology (IT), contracting and property management, and financial management. Each of 

these important functions are subject to their own stringent planning and measuring regimes 

pursuant to various laws and executive mandates. 

While both strategic goals from the FMC’s previous strategic plan were retained, a new 

objective and two new measures to support Strategic Goal One replaced the previous objective 

and measure under this Strategic Goal. The four objectives and associated measures under 

Strategic Goal Two were brought forward and included in the Commission’s Strategic Plan for 

FY 2022-2026. The strategic goals and objectives are as follows.

Strategic Goal 1: Maintain a Competitive and Reliable International Ocean Transportation 

Supply System.

• Ensure no unreasonable increases in transportation costs or decreases in transportation 

service are attributed to anticompetitive practices under FMC-filed agreements.

• Ensure competition is preserved in the purchase of certain covered services (46 U.S.C. §

40102(5)) through 46 U.S.C. § 40307 authorities.
FISCAL YEAR 2022 | Performance and Accountability Report | 32

Federal Maritime Commission

Strategic Goal 2: Protect the Public from Unlawful, Unfair, and Deceptive Ocean 

Transportation Practices.

• Identify and take action to end unlawful, unfair, and deceptive practices. 

• Prevent public harm through licensing and financial responsibility requirements.

• Enhance public awareness of agency resources, remedies, and regulatory requirements 

through education and outreach. 

• Impartially and timely resolve international shipping disputes through alternative dispute 

resolution and adjudication. 

Stewardship Objective: Advance the FMC’s Performance Through Excellence in Organizational 

Management.

• Strengthen infrastructure and effective resource management.

• Foster a high performing, engaged, and diverse workforce where staff understand how 

their efforts contribute to the goals of the Commission. 

Each measure, target, and actual result is reported in Table 1 and includes a description of the 

data used to measure performance and an explanation of the procedures in place to validate 

and ensure integrity of the reported result. Eleven performance measures in support of the 

strategic goals and seven stewardship objectives were quantitatively measured during the fiscal 

year. Despite adjustments made to some business processes in reaction to the COVID-19 

pandemic, the Commission exceeded 10 of its 11 FY 2022 targets. The second target under 

Strategic Goal 2 was not met. This measure will be adjusted when the Strategic Plan is reviewed 

in 2023 to align with shifted priorities due to recent industry developments as discussed in the 

previous section of this report.

Table 2 presents the Commission’s five-year performance trend data. The Commission’s 

commitment to continuously improve and streamline processes is evidenced in its year-overyear positive performance results.

Table 3 presents the first year of performance data for the Commission’s new stewardship 

objective. The Commission’s commitment to organizational excellence will guide its efforts and 

ensure that its mission is efficiently and effectively carried out, and that it serves the public. 

This Performance and Accountability Report (inclusive of this Annual Performance Report) has 

been forwarded to the President, OMB Director, appropriate Congressional committees, and 

others as dictated by OMB Circular A-136, Revised. Additionally, this report has been placed on 

the FMC’s public website to ensure that it is accessible to interested parties. All Commission 

employees have been advised to review this report.
FISCAL YEAR 2022 | Performance and Accountability Report | 33

Federal Maritime Commission

Table 1: Summary of Performance Measure Results – FY 2022

Strategic Goal No. 1:

Maintain a competitive and reliable international ocean transportation supply system.

Objectives, Performance Measures, and Validations FY 2022 

Target

FY 2022 

Actual

Objective 1.1: Ensure no unreasonable increases in transportation costs or decreases in transportation 

services are attributed to anticompetitive practices under FMC-filed agreements.

Measure: Percentage of newly-filed vessel sharing agreements and amendments to 

agreements analyzed and presented to the Commission within 32 days.

Validation: his outcome goal is measured using data from the eAgreements electronic 

filing system and tracking the time elapsed between the agreement submission and 

review. 

85% 100%

Measure: Percentage of agreement monitoring reports reviewed within 30 days of 

receipt to detect actionable information, including market-distorting behavior.

Validation: This outcome goal is measured using data contained in the eMonitoring 

system used for the electronic filing of agreement monitoring submissions. Performance 

is measured by comparing the file receipt date to the date that the filing was reviewed by 

staff analysts. 

80% 100%

Objective 1.2: Ensure competition is preserved in the purchase of certain covered services (46 U.S.C. §

40102(5)) through 46 U.S.C. § 40307 authorities.

Measure: Percentage of alternative agreement reports indicating joint contracting/ 

procurement of covered services analyzed and escalated to regular monitoring status 

within 30 days of receipt to ensure systematic analysis of data for actionable information.

Validation: This outcome is measured using regulated entities’ data. Performance is 

measured by reviewing information received and identifying whether reports indicating 

covered services are moved from this system to the eMonitoring system within 30 days.

>95% 100%

Strategic Goal No. 2:

Protect the public from unlawful, unfair and deceptive ocean transportation practices.

Objectives, Performance Measures, and Validations FY 2022 

Target

FY 2022 

Actual

Objective 2.1: Identify and take action to end unlawful, unfair, and deceptive practices.

Measure: Percentage of enforcement actions taken under the Shipping Act successfully 

resolved through compliance audits, judgments, settlements, compromise agreements, or 

issuance of default judgments, that are favorable to the FMC’s enforcement program.

Validation: This outcome goal is measured by examining enforcement case inventory and 

counting the number of cases resolved.

77.5% 77.8%

Measure: Percentage of contacted unlicensed OTIs that submit license applications within 

one year after pre-enforcement contact and education from an area representative.

Validation: This outcome goal is measured by correlating prior fiscal year area 

representatives’ approved pre-enforcement case inventories with the current fiscal year 

data and notices on the status of ocean transportation intermediary licenses. This data is 

collected and maintained by the Bureau of Certification and Licensing on the Regulated 

Persons Index and the list of FMC Licensed & Bonded OTIs.

Explanation: Generally, area representatives (ARs) would conduct outreach, education, 

and open investigations aimed at promoting higher awareness of statutory and regulatory 

requirements as well as receive complaints from the industry regarding unlicensed OTI 

activity. Due to changes in operations due to the COVID-19 pandemic, the industry and 

10% 0%
FISCAL YEAR 2022 | Performance and Accountability Report | 34

Federal Maritime Commission

Commission shifted priorities to focus on identifying operational solutions to cargo 

delivery system challenges and pursuing carrier or MTO actions leading to unjust or 

unreasonable detention and/or demurrage charges and now, with the passage of OSRA 

22 in June 2022, the new charge complaint process. Further, the AR positions have been 

redesignated as investigators, essentially eliminating their prior outreach and education 

obligation. Moreover, the entire investigative program has been restructured, with a 

mandate to focus on high-impact violations. This performance measure can no longer be 

conducted by the investigative program and should be eliminated, shifted, and re-written 

to BCL to report data related to the notices on the status of OTI licenses.

Objective 2.2: Prevent public harm through licensing and financial responsibility requirements.

Measure: Percentage of decisions on completed OTI license applications rendered within 

60 calendar days of receipt, facilitating lawful operation of OTIs with appropriate 

character and experience requirements. 

Validation: This outcome goal is measured by comparing the total number of OTI 

applications assigned to an analyst (X) and the number of applications completed by an 

analyst on or before the 60th calendar day following assignment (Y) during a specific time 

period. The outcome goal is calculated as (Y / X) x 100 = %.

75% 96%

Measure: Percentage of license renewals completed on or prior to the 3-year renewal 

deadlines to timely verify regulatory compliance.

Validation: The Completion Status Report, generated in the license renewal system, 

provides the total number of renewals completed (X) and the number of renewals 

completed on or before the renewal deadline (Y) during a specific time period. The 

outcome goal is calculated as (Y / X) x 100 = %.

75% 87%

Measure: Percentage of PVOs examined during the year that have the full financial 

coverage required by regulation to protect against loss from nonperformance or casualty.

Validation: This outcome goal is measured by comparing reported financial coverage 

amounts against required coverage amounts. Operators covered by this program file 

semi-annual, monthly, and weekly unearned passenger revenue reports. This information 

is used to compare reported coverage against required coverage amounts.

95% 96%

Objective 2.3: Enhance public awareness of agency resources, remedies, and regulatory requirements 

through education and outreach.

Measure: Percentage of Commission issuances, orders, and reports available through the 

Commission’s website within 5 working days of receipt.

Validation: This outcome goal is measured by reviewing the workflow processes for 

posting documents to the Commission’s website docket activity logs. The date that each 

docket activity log is updated with new filings or issuances is compared to the date the 

document is filed with or issued by the Commission in a particular proceeding.

90% 91%
FISCAL YEAR 2022 | Performance and Accountability Report | 35

Federal Maritime Commission

Table 1: Summary of Performance Measure Results – FY 2022 - continued

Objective 2.4: Impartially and timely resolve international shipping disputes through alternative dispute 

resolution and adjudication.

Measure: Percentage of dispute resolution matters closed within 6 months of request for 

assistance. 

Validation: This outcome goal is measured using data maintained by the Commission on 

each dispute resolution matter opened. Cases are opened upon the request of the public 

for assistance and are subject to the normal fluctuations in businesses and consumers 

seeking help from the Commission. Cases are closed upon resolution, voluntary 

termination by the parties, refusal to participate or failure to respond by a party, or when 

the CADRS mediator determines that particular issues prevent the possibility for 

successful resolution.

67% 100%

Measure: Percentage of formal complaints or Commission-initiated orders of 

investigation completed within 2 years of filing or Commission initiation. 

Validation: This outcome goal is measured by using docket activity logs maintained by the 

Commission and used for docket management, and monthly and annual reporting 

purposes.

72% 86%

Stewardship Objective – Advance the FMC’s performance through excellence in organizational management.

Objectives, Performance Measures, and Validations FY 2022 

Target

FY 2022 

Actual

Stewardship Sub-objective 1: Strengthen infrastructure and effective resource management. 

S.1.1 Manage risks and continue mission essential operations.

Measure: COOP activities, including annual training, notification exercises, and an 

annual COOP exercise are conducted throughout the year consistent with the FMC 

COOP Plan. 

Validation: Complete and document all activities between July 1 and June 30. Sources 

include annual training materials, sign-in sheets/confirmation emails, and after-action 

reports.

100% 100%

S.1.2 FMC’s financial management systems and practices demonstrate fiscal responsibility and proper 

accounting.

Measure: Achieve an unmodified (clean) opinion from the independent auditor on the 

Commission’s fiscal year’s end financial statements. (Data: Office of the Inspector 

General Independent Auditor’s Report.)

Validation: This outcome goal is an unmodified (clean) opinion by the Office of the 

Inspector General based on the findings from the independent auditor’s review of the 

FMC’s annual financial statements and internal controls over financial reporting. Each 

year, the independent auditor reviews approximately 75 processes, documents, 

procedures, checklists, transaction types, and reports that are all considered in the 

overall assessment.

100% 100%

S.1.3 Information Technology is optimized and IT systems are protected.

Measure: Percentage of overall cybersecurity compliance with mandates that are 

issued. 

Validation: This objective is measured through the report card from the Cybersecurity 

and Infrastructure Security Agency (CISA).

100% 100%
FISCAL YEAR 2022 | Performance and Accountability Report | 36

Federal Maritime Commission

S.1.4 Maintain the Commission’s cloud-based website to allow industry access to FMC resources and 

applications.

Measure: FMC website uptime percentage. 

Validation: This objective is measured through the Commission’s Azure server uptime 

report.

99.5% 99.5%

Stewardship Sub-objective 2: Foster a high performing, engaged, and diverse workforce where staff 

understand how their efforts contribute to the goals of the Commission.

S.2.1 Management promotes a culture that is open, diverse, inclusive, and engaged.

Measure: Benchmarking EEI index is above the average for small agencies; no more 

than 10% drop from the prior year. 

Validation: Annual employee responses from the Federal Employee Viewpoint Survey 

(FEVS).

>-10% 2%

Measure: Benchmarking FEVS results tied to results-oriented performance culture.

Validation: Annual employee responses from the FEVS. >75% 93%

S.2.2 Management promotes a results-oriented performance culture.

Measure: Percent of staff with the majority of (3 or more expectations per 

performance element) performance goals rated as meeting the characteristics of a 

specific, measurable, achievable, realistic, and timely (SMART) goal. Targets are for 

non-SES/non-supervisory staff. SES and supervisor targets will exceed listed staff 

targets. 

Validation: Review of performance plans each performance year.

25% 30%

Table 2: Performance Measure Trends, FY 2018-2022

Strategic Goal No. 1: Maintain a competitive and reliable international ocean transportation supply system.

Performance Measure FY 2018 FY 2019 FY 2020 FY 2021 FY 2022

Measure: Percentage of newly filed vessel sharing agreements and amendments to agreements analyzed and presented to the 

Commission within 32 days.

TARGET N/A N/A N/A N/A 85%

ACTUAL N/A N/A N/A N/A 100%

TARGET MET/UNMET N/A N/A N/A N/A MET

Measure: Percentage of agreement monitoring reports reviewed within 30 days of receipt to detect actionable information, 

including market-distorting behavior.

TARGET 65% 66% 67% 68% 80%

ACTUAL 89% 79% 91% 85% 100%

TARGET MET/UNMET MET MET MET MET MET

Measure: Percentage of alternative agreement reports indicating joint contracting/procurement of covered services analyzed 

and escalated to regular monitoring status within 30 days of receipt to ensure systematic analysis of data for actionable 

information.

TARGET N/A N/A N/A N/A >95%

ACTUAL N/A N/A N/A N/A 100%

TARGET MET/UNMET N/A N/A N/A N/A MET

Measure: Percentage of FMC-filed agreements reviewed at Commission level which are modified through negotiation to 

mitigate anticompetitive effects.

TARGET 50% 51% 52% 53% N/A

ACTUAL 100% 67% 60% 20% N/A

TARGET MET/UNMET MET MET MET UNMET N/A

Measure: Percentage share of U.S. containerized cargo moving on other agreement parties’ vessels in major U.S. trades.*

TARGET N/A N/A N/A N/A N/A

ACTUAL N/A N/A N/A N/A N/A

TARGET MET/UNMET N/A N/A N/A N/A N/A
FISCAL YEAR 2022 | Performance and Accountability Report | 37

Federal Maritime Commission

Strategic Goal No. 2: Protect the public from unlawful, unfair and deceptive ocean transportation practices.

Measure: Percentage of enforcement actions taken under the Shipping Act successfully resolved through compliance audits, 

judgments, settlements, compromise agreements, or issuance of default judgments, that are favorable to the FMC’s 

enforcement program.

TARGET N/A N/A N/A N/A 77.5%

ACTUAL N/A N/A N/A N/A 77.8%

TARGET MET/UNMET N/A N/A N/A N/A MET

Measure: Percentage of contacted unlicensed OTIs that submit license applications within one year after pre-enforcement 

contact and education from an area representative.**

TARGET N/A N/A N/A N/A 10%

ACTUAL N/A N/A N/A N/A 0%

TARGET MET/UNMET N/A N/A N/A N/A UNMET

Measure: Percentage of decisions on completed OTI license applications rendered within 60 calendar days of receipt, 

facilitating lawful operation of OTIs with appropriate character and experience requirements.

TARGET 75% 75% 75% 75% 75%

ACTUAL 97% 96% 88% 98.8% 96%

TARGET MET/UNMET MET MET MET MET MET

Measure: Percentage of license renewals completed on or prior to the 3-year renewal deadlines to timely verify regulatory 

compliance.

TARGET N/A N/A N/A N/A 75%

ACTUAL N/A N/A N/A N/A 87%

TARGET MET/UNMET N/A N/A N/A N/A MET

Measure: Percentage of PVOs examined during the year that have the full financial coverage required by regulation to protect 

against loss from nonperformance or casualty.

TARGET 95% 95% 95% 95% 95%

ACTUAL 99% 96% 96% 97.9% 96%

TARGET MET/UNMET MET MET MET MET MET
FISCAL YEAR 2022 | Performance and Accountability Report | 38

Federal Maritime Commission

Table 2: Performance Measure Trends, FY 2018-2022 continued

Measure: Percentage of Commission issuances, orders, and reports available through the Commission’s website within 5 

working days of receipt.

TARGET 84% 84% 86% 88% 90%

ACTUAL 97% 99% 100% 99% 91%

TARGET MET/UNMET MET MET MET MET MET

Measure: Percentage of dispute resolution matters closed within 6 months of request for assistance.

TARGET N/A N/A N/A N/A 67%

ACTUAL N/A N/A N/A N/A 100%

TARGET MET/UNMET N/A N/A N/A N/A MET

Measure: Percentage of formal complaints or Commission-initiated orders of investigation completed within 2 years of filing or 

Commission initiation.

TARGET 64% 66% 68% 70% 72%

ACTUAL 38% 43% 100% 75% 86%

TARGET MET/UNMET UNMET UNMET MET MET MET 

Measure: Percentage of enforcement actions taken under the Shipping Act successfully resolved through favorable judgment, 

settlement, issuance of default judgment, or compliance letter or notice.

TARGET 77.5% 77.5% 77.5% 77.5% N/A

ACTUAL 85.8% 97% 93% 90.3% N/A

TARGET MET/UNMET MET MET MET MET N/A

Measure: Percentage of Ombuds and ADR matters closed within 6 months of request for assistance. 

TARGET 60.5%* 61% 63% 65% N/A

ACTUAL 97% 98% 99.59% 100% N/A

TARGET MET/UNMET MET MET MET MET N/A

Measure: Number of cases opened and closed each fiscal year using Ombuds and ADR services assisting consumers to recover 

goods or funds.***

TARGET N/A N/A N/A N/A N/A

ACTUAL N/A N/A N/A N/A N/A

TARGET MET/UNMET N/A N/A N/A N/A N/A

* This measure was replaced by the first 2 new measures listed under Strategic Goal No. 1 in the Commission’s FY 2018-2022 

Strategic Plan. For additional historical data on this measure, see Commission PARs posted on its website.

**This measure will be adjusted to align with revised priorities when the Strategic Plan is reviewed in 2023.

***To more accurately reflect the FMC’s performance in this area, this measure was replaced in FY 2017. For additional 

historical data on this measure, see Commission PARs posted on its website.
FISCAL YEAR 2022 | Performance and Accountability Report | 39

Federal Maritime Commission

Table 3: Stewardship Objective Trends, 2022-2026

Stewardship Objective: Advance the FMC’s performance through excellence in organizational management.

Performance Measure FY 2022 FY 2023 FY 2024 FY 2025 FY 2026

Measure: COOP activities, including annual training, notification exercises, and an annual COOP exercise are conducted 

throughout the year consistent with the FMC COOP Plan.

TARGET 100% 100% 100% 100% 100% 

ACTUAL 100%

TARGET MET/UNMET MET

Measure: Achieve an unmodified (clean) opinion from the independent auditor on the Commission’s fiscal year’s end financial 

statements. (Data: Office of the Inspector General Independent Auditor’s Report.)

TARGET 100% 100% 100% 100% 100% 

ACTUAL 100%

TARGET MET/UNMET MET

Measure: Percentage of overall cybersecurity compliance with mandates that are issued

TARGET 100% 100% 100% 100% 100% 

ACTUAL 100%

TARGET MET/UNMET MET

Measure: FMC website uptime percentage.

TARGET 99.5% 99.5% 99.5% 99.5% 99.5% 

ACTUAL 99.5%

TARGET MET/UNMET MET

Measure: Benchmarking EEI index is above the average for small agencies; no more than 10% drop from the prior year.

TARGET >-10% >-10% >-10% >-10% >-10%

ACTUAL 2%

TARGET MET/UNMET MET

Measure: Benchmarking FEVS results tied to a results-oriented performance culture.

TARGET >75% >75% >75% >75% >75%

ACTUAL 93%

TARGET MET/UNMET MET

Measure: Percent of staff with the majority of (3 or more expectations per performance element) performance goals rated as

meeting the characteristics of a specific, measurable, achievable, realistic, and timely (SMART) goal. Targets are for nonSES/non-supervisory staff. SES and supervisor targets will exceed listed staff targets.

TARGET 25% 50% 98% 99% 99%

ACTUAL 30%

TARGET MET/UNMET MET
FISCAL YEAR 2022 | Performance and Accountability Report | 40

Federal Maritime Commission

Financial Information
FISCAL YEAR 2022 | Performance and Accountability Report | 41

Federal Maritime Commission

Message from the Chief Financial Officer/Director, Enterprise Services

I am pleased to present this Financial Information for Fiscal Year 2022, 

and to report that, for the 19th consecutive year, an independent 

auditor has rendered an unmodified opinion on the FMC’s financial 

statements, identifying no deficiencies in internal control over 

financial reporting considered to be material weaknesses. The 

auditor’s tests for compliance with selected provisions of applicable 

laws, regulations and contracts disclosed no instances of 

noncompliance for FY 2022 reportable under U.S. generally accepted 

government auditing standards. This demonstrates the Commission’s 

continuous record as a diligent steward of taxpayer dollars

maintaining high standards for the financial management of resources 

entrusted to it.

The financial statements and related notes were prepared in conformity with accounting principles 

generally accepted in the U.S., and requirements of OMB Circular A-136, Financial Reporting 

Requirements, revised June 3, 2022, and fairly present the Commission’s financial position.

The FMC’s financial condition is sound, and its internal controls are sufficient to ensure that its 

budget authority is not exceeded, and that funds are used efficiently and effectively. The following 

key accomplishments demonstrate the effectiveness and efficiency of the FMC’s acquisition and 

financial functions during Fiscal Year 2022:

• A continuous record of no material weaknesses, significant control deficiencies, or 

nonconformance with the FMFIA and other applicable laws and regulations;

• Collecting, in civil enforcement proceedings and user fees, $2,335,235;

• Continued focus on internal controls and risk management, as mandated by OMB Circular A123, providing budget information in concise, reliable, and understandable formats; 

• Accurate, timely issuance of financial statements as required by the Accountability of Tax 

Dollars Act of 2002, prepared from, and fully supported by, the books and records of the 

FMC in accordance with Generally Accepted Accounting Principles, standards approved by 

the Federal Accounting Standards Advisory Board, and OMB Circular A-136; and

• Successful implementation of the Digital Accountability and Transparency Act of 2014 (DATA 

Act), which provides detailed information on the FMC’s careful stewardship of resources on 

the USASpending.gov website.

I am proud of the FMC’s exemplary track record and the management of its resources. I remain 

confident that the high level of quality financial management at the Commission will continue in the 

coming fiscal years, and that we will continue to enhance operational efficiency while protecting 

the interest of the American shipping public.

/s/

Patrick M. Moore

Chief Financial Officer/Director, Enterprise Services

November 15, 2022
FISCAL YEAR 2022 | Performance and Accountability Report | 42

Federal Maritime Commission

Principal Financial Statements

The principal financial statements presented include:

• Balance Sheet – Presents the combined amounts the agency had to use or distribute 

(assets) versus the amounts the agency owed (liabilities), and the difference between the

two (net position);

• Statement of Net Cost – Presents the annual cost of agency operations determined by 

reducing gross cost by any offsetting revenue;

• Statement of Changes in Net Position – Presents the accounting activities that caused the 

change in net position during the reporting period;

• Statement of Budgetary Resources – Presents how budgetary resources were made 

available and the status of those resources at fiscal year-end; and

• Statement of Custodial Activity – Presents collections and their disposition by the agency on 

behalf of the Treasury General Fund. The FMC acts as custodian and does not have use of 

these funds.

Limitations of the Financial Statements

As stated in the previous section, the principal financial statements have been prepared to 

report the financial position and results of operations of the FMC, pursuant to the requirements 

of 31 U.S.C. § 3515(b). While the statements have been prepared from the books and records 

of the agency in accordance with GAAP for Federal entities and the formats prescribed by OMB, 

the statements are in addition to the financial reports used to monitor and control budgetary 

resources, which are prepared from the same books and records. The statements should be 

read with the understanding that they are for a component of the U.S. Government, a 

sovereign entity. Therefore, liabilities not covered by budgetary resources cannot be liquidated 

without the enactment of an appropriation, and the payment of all liabilities other than for 

contracts can be abrogated by the sovereign entity. Other limitations are included in the 

footnotes to the principal statements. The accompanying notes are an integral part of these 

statements. 

The Federal Maritime Commission’s financial statements were audited by Dembo Jones, P.C., 

under contract to the FMC’s Office of the Inspector General.
FISCAL YEAR 2022 | Performance and Accountability Report | 43

Federal Maritime Commission

Financial Statements & Independent Auditor Report

FEDERAL MARITIME COMMISSION

Washington, DC 20573

 November 15, 2022

Office of Inspector General

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

I am pleased to provide the attached audit report required by the Accountability for Tax

Dollars Act of 2002 (ATDA), which presents an unmodified (clean) opinion on the Federal

Maritime Commission’s (FMC) fiscal year (FY) 2022 and 2021 financial statements. The audit 

results indicate that the FMC has established an internal control structure that facilitates the 

preparation of reliable financial and performance information. The Office of Inspector General 

(OIG) commends the FMC for the noteworthy accomplishment of attaining an unmodified 

opinion.

The OIG contracted with the independent certified public accounting firm Dembo Jones, 

P.C. to: perform the audit of the FMC’s financial statements for the fiscal years ending September 

30, 2022 and 2021; consider internal control over financial reporting; and test the agency’s

compliance with certain provisions of applicable laws, regulations, and contracts that could have

a direct and material effect on the financial statements. The OIG contract required that the audit

be performed in accordance with U.S. Generally Accepted Government Auditing Standards and 

Office of Management and Budget (OMB) audit guidance.

In its audit of the FMC, Dembo Jones found: the financial statements were fairly 

presented, in all material respects, in conformity with U.S. Generally Accepted Accounting 

Principles; there were no material weaknesses or significant deficiencies in internal control

over financial reporting; and no reportable noncompliance issues with the laws and regulations 

tested.

In connection with the OIG’s contract, the OIG reviewed Dembo Jones’ report and related 

documentation and inquired of its representatives. Our review, as differentiated from an audit in 

accordance with U.S. Generally Accepted Government Auditing Standards, was not intended to 

enable the OIG to express, and we do not express, opinions on FMC's financial statements or 

internal control; or conclusions on compliance with laws and regulations. Dembo Jones is 

responsible for the attached auditors' report dated November 15, 2022 and the conclusions 

expressed in the report. However, our review disclosed no instances where Dembo Jones did not 

comply, in all material respects, with Generally Accepted Government Auditing Standards.
FISCAL YEAR 2022 | Performance and Accountability Report | 44

Federal Maritime Commission

The OIG would like to thank FMC staff; especially the Office of Budget and Finance, for 

their assistance in helping Dembo Jones and the OIG meet the audit objectives.

Respectfully submitted,

/s/

Jon Hatfield

Inspector General

Attachment

cc: Office of the Managing Director 

Office of the General Counsel

Office of Budget and Finance
FISCAL YEAR 2022 | Performance and Accountability Report | 45

Federal Maritime Commission

Independent Auditors' Report

INDEPENDENT Auditor’s Report

To Chairman Daniel B. Maffei 

Federal Maritime Commission

In our audits of the fiscal years 2022 and 2021 financial statements of Federal Maritime 

Commission (FMC) we found:

• FMC’s financial statements as of and for the fiscal years ended September 30, 2022, and 2021, 

are presented fairly, in all material respects, in accordance with U.S. generally accepted 

accounting principles;

• no material weaknesses in internal control over financial reporting based on the limited 

procedures we performed;1 and

• no reportable noncompliance for fiscal year 2022 with provisions of applicable laws, 

regulations, and contracts we tested.

The following sections discuss in more detail (1) our report on the financial statements, which 

includes required supplementary information (RSI)2; (2) our report on internal control over 

financial reporting; (3) our report on compliance with laws, regulations, and contracts; and (4) 

agency comments.

1

A material weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there 

is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and 

corrected, on a timely basis. 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.

2

The RSI consists of “Management’s Discussion and Analysis”, which is included with the financial statements.

6116 Executive Blvd • Suite 500 

North Bethesda, MD 20852

Dembo Jones, P.C.

A Member of Allinial Global

8850 Stanford Blvd • Suite 2000

Columbia, MD 21045

P 301.770.5100 • F 301.770.5202 www.dembojones.com P 410.290.0770 • F 410.290.0774
FISCAL YEAR 2022 | Performance and Accountability Report | 46

Federal Maritime Commission

Report on the Financial Statements

Opinion

In accordance with U.S. generally accepted government auditing standards and Office of 

Management and Budget (OMB) Bulletin No. 22-01, Audit Requirements for Federal Financial 

Statements, we have audited FMC’s financial statements. FMC’s financial statements comprise 

the balance sheets as of September 30, 2022, and 2021; the related statements of net cost, changes 

in net position, and budgetary resources for the fiscal years then ended; and the related notes to the 

financial statements. In our opinion, FMC’s financial statements present fairly, in all material 

respects, FMC’s financial position as of September 30, 2022, and 2021, and its net cost of 

operations, changes in net position, and budgetary resources for the fiscal years then ended in 

accordance with U.S. generally accepted accounting principles.

Basis for Opinion

We conducted our audits in accordance with U.S. generally accepted government auditing 

standards. Our responsibilities under those standards are further described in the Auditor’s 

Responsibilities for the Audit of the Financial Statements section of our report. We are required to 

be independent of FMC and to meet our other ethical responsibilities, in accordance with the 

relevant ethical requirements relating to our audit. We believe that the audit evidence we have 

obtained is sufficient and appropriate to provide a basis for our audit opinion.

Responsibilities of Management for the Financial Statements

FMC management is responsible for (1) the preparation and fair presentation of these financial 

statements in accordance with U.S. generally accepted accounting principles; (2) preparing, 

measuring, and presenting the RSI in accordance with U.S. generally accepted accounting 

principles; (3) preparing and presenting other information included in FMC’s documents 

containing the audited financialstatements and auditor’s report, and ensuring the consistency of that 

information with the audited financial statements and the RSI; and (4) designing, implementing, 

and maintaining effective internal control relevant to the preparation and fair presentation of 

financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are 

conditions or events, considered in the aggregate, that raise substantial doubt about FMC’s ability 

to continue as a going concern for a reasonable period of time.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whetherthe financialstatements as a whole 

are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report 

that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute 

assurance and therefore is not a guarantee that an audit of the financial statements conducted in 

accordance with U.S. generally accepted government auditing standards will always detect a 

material misstatement or a material weakness when it exists. The risk of not detecting a material 

misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve 

collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. 

Misstatements, including omissions, are considered to be material if there is a substantial 

likelihood that, individually or in the aggregate, they would influence the judgment made by a 

reasonable user based on the financial statements.
FISCAL YEAR 2022 | Performance and Accountability Report | 47

Federal Maritime Commission

In performing an audit in accordance with U.S. generally accepted government auditing standards, 

we:

• Exercise professional judgment and maintain professional skepticism throughout the audit.

• Identify and assess the risks of material misstatement of the financial statements, whether due 

to fraud or error, and design and perform audit procedures responsive to those risks. Such 

procedures include examining, on a test basis, evidence regarding the amounts and disclosures 

in the financial statements in order to obtain audit evidence that is sufficient and appropriate 

to provide a basis for our opinion.

• Obtain an understanding of internal control relevant to our audit of the financial statements in 

order to design audit procedures that are appropriate in the circumstances, but not for the 

purpose of expressing an opinion on the effectiveness of FMC’s internal control over financial 

reporting. Accordingly, no such opinion is expressed.

• Evaluate the appropriateness of accounting policies used and the reasonableness of significant 

accounting estimates made by management, as well as evaluate the overall presentation ofthe 

financial statements.

• Perform other procedures we consider necessary in the circumstances.

• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, 

that raise substantial doubt about FMC’s ability to continue as a going concern for a reasonable 

period of time.

We are required to communicate with those charged with governance regarding, among other 

matters, the planned scope and timing of the audit, significant audit findings, and certain internal 

control–related matters that we identified during the financial statement audit.

Required Supplementary Information

U.S. generally accepted accounting principles issued by the Federal Accounting Standards 

Advisory Board (FASAB) require that the RSI be presented to supplement the financial statements. 

Such information is the responsibility of management and, although not a part of the financial

statements, is required by FASAB, which considers it to be an essential part of financial reporting 

for placing the financial statements in appropriate operational, economic, or historical context. We 

have applied certain limited procedures to the RSI in accordance with U.S. generally accepted 

government auditing standards, which consisted of inquiries of management about the methods of 

preparing the RSI and comparing the information for consistency with management’s responses 

to the auditor’s inquiries, the financial statements, and other knowledge we obtained during the 

audit of the financial statements, in order to report omissions or material departures from FASAB 

guidelines, if any, identified by these limited procedures. We did not audit and we do not express 

an opinion or provide any assurance on the RSI because the limited procedures we applied do not 

provide sufficient evidence to express an opinion or provide any assurance.
FISCAL YEAR 2022 | Performance and Accountability Report | 48

Federal Maritime Commission

Other Information

FMC’s other information contains a wide range of information, some of which is not directly 

related to the financial statements. This information is presented for purposes of additional analysis 

and is not a required part of the financial statements or the RSI. Management is responsible for the 

other information included in FMC’s documents. The other information comprises the financial 

summaries but does not include the financial statements and our auditor’s report thereon. Our 

opinion on the financial statements does not cover the other information, and we do not express an 

opinion or any form of assurance thereon.

In connection with our audit of the financial statements, our responsibility is to read the other 

information and consider whether a material inconsistency exists between the other information 

and the financial statements, or the other information otherwise appears to be materially misstated. 

If, based on the work performed, we conclude that an uncorrected material misstatement of the 

other information exists, we are required to describe it in our report.

Report on Internal Control over Financial Reporting

In connection with our audits of FMC’s financial statements, we considered FMC’s internal 

control over financial reporting, consistent with our auditor’s responsibilities discussed below.

Results of Our Consideration of Internal Control over Financial Reporting

Our consideration of internal control was for the limited purpose described below, and was not 

designed to identify all deficiencies in internal control that might be material weaknesses or 

significant deficiencies or to express an opinion on the effectiveness of FMC’s internal control 

over financial reporting. Given these limitations, during our audit, we did not identify any 

deficiencies in internal control over financial reporting that we consider to be material weaknesses. 

However, material weaknesses or significant deficiencies may exist that have not been identified.

Basis for Results of Our Consideration of Internal Control over Financial Reporting

We performed our procedures related to FMC’s internal control over financial reporting in 

accordance with U.S. generally accepted government auditing standards.

Responsibilities of Management for Internal Control over Financial Reporting

FMC management is responsible for designing, implementing, and maintaining effective internal 

control over financial reporting relevant to the preparation and fair presentation of financial 

statements that are free from material misstatement, whether due to fraud or error.
FISCAL YEAR 2022 | Performance and Accountability Report | 49

Federal Maritime Commission

Auditor’s Responsibilities for Internal Control over Financial Reporting

In planning and performing our audit of FMC’s financial statements as of and for the fiscal year

ended September 30, 2022, in accordance with U.S. generally accepted government auditing 

standards, we considered FMC’s internal control relevant to the financial statement audit in order 

to design audit procedures that are appropriate in the circumstances, but not for the purpose of 

expressing an opinion on the effectiveness of FMC’s internal control over financial reporting. 

Accordingly, we do not express an opinion on FMC’s internal control over financial reporting. We 

are required to report all deficiencies that are considered to be significant deficiencies or material 

weaknesses. We did not consider all internal controls relevant to operating objectives, such as 

those controls relevant to preparing performance information and ensuring efficient operations.

Definition and Inherent Limitations of Internal Control over Financial Reporting

An entity’s internal control over financial reporting is a process effected by those charged with 

governance, management, and other personnel, the objectives of which are to provide reasonable 

assurance that (1) transactions are properly recorded, processed, and summarized to permit the 

preparation of financial statements in accordance with U.S. generally accepted accounting 

principles, and assets are safeguarded against loss from unauthorized acquisition, use, or 

disposition, and (2) transactions are executed in accordance with provisions of applicable laws, 

including those governing the use of budget authority, regulations, and contracts, noncompliance 

with which could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent, or 

detect and correct, misstatements due to fraud or error.

Intended Purpose of Report on Internal Control over Financial Reporting

The purpose of this report is solely to describe the scope of our consideration of FMC’s internal 

control over financial reporting and the results of our procedures, and not to provide an opinion on 

the effectiveness of FMC’s internal control over financial reporting. This report is an integralpart 

of an audit performed in accordance with U.S. generally accepted government auditing standards 

in considering internal control over financial reporting. Accordingly, this report on internal control 

over financial reporting is not suitable for any other purpose.

Report on Compliance with Laws, Regulations, and Contracts

In connection with our audits of FMC’s financial statements, we tested compliance with selected 

provisions of applicable laws, regulations, and contracts consistent with our auditor’s 

responsibilities discussed below.
FISCAL YEAR 2022 | Performance and Accountability Report | 50

Federal Maritime Commission

Results of Our Tests for Compliance with Laws, Regulations, and Contracts

Our tests for compliance with selected provisions of applicable laws, regulations, and contracts 

disclosed no instances of noncompliance for fiscal year 2022 that would be reportable under U.S. 

generally accepted government auditing standards. However, the objective of our tests was not to 

provide an opinion on compliance with laws, regulations, and contracts applicable to FMC. 

Accordingly, we do not express such an opinion.

Basis for Results of Our Tests for Compliance with Laws, Regulations, and Contracts

We performed our tests of compliance in accordance with U.S. generally accepted government 

auditing standards. Our responsibilities under those standards are further described in the Auditor’s 

Responsibilities for Tests of Compliance section below.

Responsibilities of Management for Compliance with Laws, Regulations, and Contracts

FMC management is responsible for complying with laws, regulations, and contracts applicable 

to FMC.

Auditor’s Responsibilities for Tests of Compliance with Laws, Regulations, and Contracts

Our responsibility is to test compliance with selected provisions of applicable laws, regulations, 

and contracts applicable to FMC that have a direct effect on the determination of material amounts 

and disclosures in FMC’s financial statements, and to perform certain other limited procedures. 

Accordingly, we did not test compliance with all laws, regulations, and contracts applicable to 

FMC. We caution that noncompliance may occur and not be detected by these tests.

Intended Purpose of Report on Compliance with Laws, Regulations, and Contracts

The purpose of this report is solely to describe the scope of our testing of compliance with selected 

provisions of applicable laws, regulations, and contracts, and the results of that testing, and not to 

provide an opinion on compliance. This report is an integral part of an audit performed in 

accordance with U.S. generally accepted government auditing standards in considering 

compliance. Accordingly, this report on compliance with laws, regulations, and contracts is not 

suitable for any other purpose.

North Bethesda, Maryland 

November 15, 2022
FISCAL YEAR 2022 | Performance and Accountability Report | 51

Federal Maritime Commission

Federal Maritime Commission Comments on Audit Report

Federal Maritime Commission

Washington, DC 20573

 Office of the 

Managing Director

November 15, 2022

Donald K. Marshall, CPA

Dembo Jones, P.C.

6116 Executive Boulevard, Suite 500

North Bethesda, MD 20852

Dear Mr. Marshall:

I have reviewed the financial statements audit report for the Federal Maritime Commission for 

fiscal year 2022. I concur with the audit report’s findings that the financial statements fairly 

present the Commission’s financial position during the fiscal year ending September 30, 2022, 

and that the financial statements are in conformity with U.S. Generally Accepted Accounting 

Principles; that the FMC has maintained, in all material respects, effective internal control over 

financial reporting; and that there were no instances of reportable noncompliance with laws 

and regulations tested by the auditors. 

The Commission appreciates Dembo Jones’ work over the past fiscal year.

Sincerely,

/s/

Patrick M. Moore

Chief Financial Officer / Director, Enterprise Services
FISCAL YEAR 2022 | Performance and Accountability Report | 52

Federal Maritime Commission

Federal Maritime Commission Financial Statements 

FEDERAL MARITIME COMMISSION

FINANCIAL STATEMENTS

FOR THE YEARS ENDED SEPTEMBER 30, 2022 AND 2021

TABLE OF CONTENTS

BALANCE SHEET...................................................................................................... 53

STATEMENT OF NET COST.......................................................................................... 54

STATEMENT OF CHANGES IN NET POSITION............................................................... 55

STATEMENT OF BUDGETARY RESOURCES.................................................................. 56

STATEMENT OF CUSTODIAL ACTIVITY........................................................................ 57

NOTES TO THE FINANCIAL STATEMENTS.....................................................................58-68

.
FISCAL YEAR 2022 | Performance and Accountability Report | 53

Federal Maritime Commission

BALANCE SHEET

AS OF SEPTEMBER 30, 2022 AND 2021

(In Dollars) 

2022 2021

Assets:

Intragovernmental:

Fund Balance with Treasury (Note 2) $ 11,361,461

$ 

8,407,506

Total Intragovernmental 11,361,461 

8,407,506

Other than Intragovernmental:

Accounts Receivable, Net (Notes 3) 81,447

 

85,469

Total Other than Intragovernmental 81,447 

85,469

Total Assets $ 11,442,908 $ 

8,492,975

Liabilities: (Note 4) 

Intragovernmental:

Accounts Payable $ 54,832

$ 

56,034

Other Liabilities (Note 5) 369,431 

335,890

Other Liabilities (Without Reciprocals) (Note 5) 75,739 

67,962

Liability to the General Fund of the U.S. Government for Custodial and Other Non-Entity Assets 

(Note 4 and 5) 75,328

 

77,760

Other Current Liabilities - Benefit Contributions Payable (Note 5) 218,364 

190,168

Total Intragovernmental 424,263 

391,924

Other than Intragovernmental:

Accounts Payable 291,883

 

669,126

Federal Employee Benefits Payable 1,716,095 

1,719,295

Other Liabilities (Notes 5) 1,044,581 

951,569

Total Other than Intragovernmental 3,052,559 

3,339,990

Total Liabilities $ 3,476,822 $ 

3,731,914

Net Position:

Unexpended Appropriations - Funds from Other than Dedicated Collections $ 9,608,620

$ 

6,410,608

Cumulative Results of Operations - Funds from Other than Dedicated Collections (1,642,534) 

(1,649,547)

Total Net Position 7,966,086 

4,761,061

Total Liabilities and Net Position $ 11,442,908 $ 

8,492,975

The accompanying notes are an integral part of these financial statements
FISCAL YEAR 2022 | Performance and Accountability Report | 54

Federal Maritime Commission

STATEMENT OF NET COST

FOR THE YEARS ENDED SEPTEMBER 30, 2022 AND 2021

(In Dollars) 

The accompanying notes are an integral part of these financial statements

2022 2021

Gross Program Costs:

Operational and Administrative:

Gross Costs $ 29,912,979 $ 30,319,630

Less: Earned Revenue (183,471) (95,100) 

Net Program Costs $ 29,729,508 $ 30,224,530

Office of Inspector General:

Gross Costs $ 573,313 $ 527,021

Less: Earned Revenue - (710) 

Net Program Costs $ 573,313 $ 526,311

Net Cost of Operations $ 30,302,821 $ 30,750,841
FISCAL YEAR 2022 | Performance and Accountability Report | 55

Federal Maritime Commission

FEDERAL MARITIME COMMISSION

STATEMENT OF CHANGES IN NET POSITION

FOR THE YEARS ENDED SEPTEMBER 30, 2022 AND 2021

(In Dollars)

2022 2021

Unexpended Appropriations:

Beginning Balance $ 6,410,608 $ 5,858,992

Appropriations Received 32,869,000 30,300,000

Other Adjustments (484,169) (233,423)

Appropriations Used (29,186,819) (29,514,961)

Net Change in Unexpended Appropriations 3,198,012 551,616

Total Unexpended Appropriations $ 9,608,620 $ 6,410,608

Cumulative Results of Operations:

Beginning Balance $ (1,649,547) $ (1,594,214)

Appropriations Used 29,186,819 29,514,961

Transfers In/Out Without Reimbursement - 26,715

Imputed Financing (Note 8) 1,123,005 1,153,832

Other 10 -

Net Cost of Operations (30,302,821) (30,750,841)

Net Change in Cumulative Results of Operations 7,013 (55,333)

Total Cumulative Results of Operations $ (1,642,534) $ (1,649,547)

Net Position $ 7,966,086 $ 4,761,061

The accompanying notes are an integral part of these financial statements
FISCAL YEAR 2022 | Performance and Accountability Report | 56

Federal Maritime Commission

FEDERAL MARITIME COMMISSION

STATEMENT OF BUDGETARY RESOURCES

FOR THE YEARS ENDED SEPTEMBER 30, 2022 AND 2021

(In Dollars)

The accompanying notes are an integral part of these financial statements

2022 2021

Budgetary Resources:

Unobligated Balance from Prior Year Budget Authority, Net $ 2,722,262 $ 2,522,049

Appropriations 32,869,000 30,300,000

Spending Authority from Offsetting Collections 183,481 122,525

Total Budgetary Resources $ 35,774,743 $ 32,944,574

Status of Budgetary Resources:

New Obligations and Upward Adjustments (total) $ 32,899,803 $ 30,247,419

Unexpired Unobligated Balance, End of Year 484,454 238,875

Expired Unobligated Balance, End of Year 2,390,486 2,458,280

Unobligated Balance, End of Year (total) 2,874,940 2,697,155

Total Budgetary Resources $ 35,774,743 $ 32,944,574

Outlays, Net and Disbursements, Net:

Outlays, Net (total) 29,430,876 29,898,167

Distributed Offsetting Receipts (253,715) (216,490) 

Agency Outlays, Net $ 29,177,161 $ 29,681,677
FISCAL YEAR 2022 | Performance and Accountability Report | 57

Federal Maritime Commission

FEDERAL MARITIME COMMISSION

STATEMENT OF CUSTODIAL ACTIVITY

FOR THE YEARS ENDED SEPTEMBER 30, 2022 AND 2021

(In Dollars)

2022 2021

Total Custodial Revenue:

Sources of Cash Collections: 

Miscellaneous $ 2,335,235

$ 

216,240

Total Cash Collections (Note 11) 2,335,235 216,240

Accrual Adjustments (2,422)

 

(1,731)

Total Custodial Revenue 2,332,813 

214,509

Disposition of Collections:

Transferred to Others (by Recipient) 2,335,235

 

216,240

(Increase)/Decrease in Amounts Yet to be Transferred (2,422) 

(1,731)

Total Disposition of Collections 2,332,813 

214,509

Net Custodial Activity $ - $ -

The accompanying notes are an integral part of these financial statements
FISCAL YEAR 2022 | Performance and Accountability Report | 58

Federal Maritime Commission

FEDERAL MARITIME COMMISSION

NOTES TO THE FINANCIAL STATEMENTS 

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING 

POLICIES 

A. Reporting Entity 

The Federal Maritime Commission (FMC or 

Commission) was established as an independent 

regulatory agency on August 12, 1961. The FMC is 

responsible for the regulation of oceanborne 

transportation in the foreign commerce of the United 

States. The principal statutes or statutory provisions 

administered by the Commission are the Shipping Act 

of 1984, as amended by the Ocean Shipping Reform Act 

of 1998, the Foreign Shipping Practices Act of 1988 

(FSPA), section 19 of the Merchant Marine Act of 

1920, and sections 2 and 3 of Public Law No. 89-777. 

The Commission monitors the activities of ocean 

common carriers, marine terminal operators (MTOs), 

agreements among ocean common carriers and/or 

MTOs, ports and ocean transportation intermediaries 

(non-vessel-operating common carriers and ocean 

freight forwarders) operating in the U.S. foreign 

commerce to ensure they maintain just and reasonable 

practices; maintains trade monitoring, enforcement and 

dispute resolution programs designed to assist regulated 

entities in achieving compliance and to detect and 

remedy malpractices and violations of the 1984 Act; 

monitors the laws and practices of foreign governments 

which could have a discriminatory or otherwise adverse 

impact on shipping conditions in U.S. trades, and 

imposes remedial action, as appropriate, pursuant to 

section 19 of the 1920 Act or FSPA; enforces special 

regulatory requirements applicable to carriers owned or 

controlled by foreign governments; processes and 

reviews agreements, service contracts, and service 

arrangements pursuant to the 1984 Act for compliance 

with statutory requirements; and reviews common 

carriers’ privately published tariff systems for 

accessibility and accuracy, as required by OSRA. 

The FMC also issues licenses to qualified ocean 

transportation intermediaries (OTIs) in the U.S., ensures 

that all OTIs are bonded or maintain other evidence of 

financial responsibility, and ensures that passenger 

vessel operators (PVOs) demonstrate adequate financial 

responsibility in case of nonperformance of voyages or 

death or injury occurring to passengers. 

The FMC is composed of five Commissioners 

appointed for five-year terms by the President with the 

advice and consent of the Senate. The President 

designates one of the Commissioners to serve as 

Chairman, who is the chief executive and administrative 

officer of the FMC. 

The FMC reporting entity is comprised of General 

Funds and General Miscellaneous Receipts. General 

Funds are accounts used to record financial transactions 

arising under congressional appropriations or other 

authorizations to spend general revenues. General Fund 

Miscellaneous Receipts are accounts established for 

receipts of non-recurring activity, such as fines, 

penalties, fees and other miscellaneous receipts for 

services and benefits. 

The FMC makes custodial collections and holds 

custodial receivables that are non-entity assets and are 

transferred to Treasury at fiscal year-end. The FMC has 

rights and ownership of all assets reported in these 

financial statements. FMC does not possess any nonentity assets. 

B. Basis of Presentation 

The financial statements have been prepared to report 

the financial position and results of operations of FMC. 

The Balance Sheet presents the financial position of the 

Commission. The Statement of Net Cost presents the 

Commission’s operating results; the Statement of 

Changes in Net Position displays the changes in the 

Commission’s equity accounts. The Statement of 

Budgetary Resources presents the sources, status, and 

uses of the Commission’s resources and follows the 

rules for the Budget of the United States Government. 
FISCAL YEAR 2022 | Performance and Accountability Report | 59

Federal Maritime Commission

The statements are a requirement of the Chief Financial 

Officers Act of 1990 and the Government Management 

Reform Act of 1994. They have been prepared from, 

and are fully supported by, the books and records of 

FMC in accordance with the hierarchy of accounting 

principles generally accepted in the United States of 

America, standards issued by the Federal Accounting 

Standards Advisory Board (FASAB), Office of 

Management and Budget (OMB) Circular A-136, 

Financial Reporting Requirements, as amended, and 

FMC accounting policies which are summarized in this 

note. These statements, with the exception of the 

Statement of Budgetary Resources, are different from 

financial management reports, which are also prepared 

pursuant to OMB directives that are used to monitor and 

control FMC’s use of budgetary resources. The financial 

statements and associated notes are presented on a 

comparative basis. Unless specified otherwise, all 

amounts are presented in dollars. 

C. Basis of Accounting 

Transactions are recorded on both an accrual accounting 

basis and a budgetary basis. Under the accrual method, 

revenues are recognized when earned, and expenses are 

recognized when a liability is incurred, without regard 

to receipt or payment of cash. Budgetary accounting 

facilitates compliance with legal requirements on the 

use of federal funds. 

D. Fund Balance with Treasury 

FBWT is an asset of a reporting entity and a liability of 

the General Fund. It is the aggregate amount of the 

FMC’s funds with Treasury in expenditure, receipt, 

revolving, and deposit fund accounts. Appropriated 

funds recorded in expenditure accounts are available to 

pay current liabilities and finance authorized purchases. 

The FMC does not maintain bank accounts of its own, 

has no disbursing authority, and does not maintain cash 

held outside of Treasury. When the reporting entity 

seeks to use FBWT or investments in Government 

securities to liquidate budgetary obligations, Treasury 

will finance the disbursements in the same way it 

finances all other disbursements, which is to borrow 

from the public if there is a budget deficit (and to use 

current receipts if there is a budget surplus). Funds are 

disbursed for the agency on demand. 

E. Accounts Receivable 

Accounts receivable consists of amounts owed to FMC 

by other Federal agencies and the general public. 

Amounts due from Federal agencies are considered 

fully collectible. An allowance for uncollectible 

accounts receivable from the public is established when, 

based upon a review of outstanding accounts and the 

failure of all collection efforts, management determines 

that collection is unlikely to occur considering the 

debtor’s ability to pay. 

F. Property, Equipment, and Software 

Property, equipment and software represent furniture, 

fixtures, equipment, and information technology 

hardware and software which are recorded at original 

acquisition cost and are depreciated or amortized using 

the straight-line method over their estimated useful 

lives. Major alterations and renovations are capitalized, 

while maintenance and repair costs are expensed as 

incurred. FMC’s capitalization threshold is $25,000 for 

individual purchases. Property, equipment, and software 

acquisitions that do not meet the capitalization criteria 

are expensed upon receipt. Applicable standard 

governmental guidelines regulate the disposal and 

convertibility of agency property, equipment, and 

software. The useful life classifications for capitalized 

assets are as follows: 

Description Useful Life (years)

Leasehold Improvements 5 

Office Furniture 5 

Computer Equipment 5 

Office Equipment 5 

Software 5 

G. Advances and Prepaid Charges 

Advance payments are generally prohibited by law. 

There are some exceptions, such as reimbursable 

agreements, subscriptions and payments to contractors 

and employees. Payments made in advance of the 

receipt of goods and services are recorded as advances 

or prepaid charges at the time of prepayment and 

recognized as expenses when the related goods and 

services are received. 

H. Liabilities

Liabilities represent the amount of funds likely to be 

paid by the FMC as a result of transactions or events 

that have already occurred. 

The FMC reports its liabilities under two categories, 

Intragovernmental and With the Public. 

Intragovernmental liabilities represent funds owed to 

another government agency. Liabilities with the Public 

represent funds owed to any entity or person that is not

a federal agency, including private sector firms and 

federal employees. Each of these categories may include 

liabilities that are covered by budgetary resources and

liabilities not covered by budgetary resources. 

Liabilities covered by budgetary resources are liabilities 

funded by a current appropriation or other funding 

source. These consist of accounts payable and accrued 
FISCAL YEAR 2022 | Performance and Accountability Report | 60

Federal Maritime Commission

payroll and benefits. Accounts payable represent 

amounts owed to another entity for goods ordered and 

received and for services rendered except for 

employees. Accrued payroll and benefits represent 

payroll costs earned by employees during the fiscal year 

which are not paid until the next fiscal year. 

Liabilities not covered by budgetary resources are 

liabilities that are not funded by any current 

appropriation or other funding source. These liabilities 

consist of accrued annual leave, actuarial Federal 

Employees’ Compensation Act (FECA), and the 

amounts due to Treasury for collection and accounts 

receivable of civil penalties and FOIA request fees. 

I. Annual, Sick, and Other Leave 

Annual leave is accrued as it is earned, and the accrual 

is reduced as leave is taken. The balance in the accrued 

leave account is adjusted to reflect current pay rates. 

Liabilities associated with other types of vested leave, 

including compensatory, restored leave, and sick leave 

in certain circumstances, are accrued at year-end, based 

on latest pay rates and unused hours of leave. Funding 

will be obtained from future financing sources to the 

extent that current or prior year appropriations are not 

available to fund annual and other types of vested leave 

earned but not taken. Non-vested leave is expensed 

when used. Any liability for sick leave that is accrued 

but not taken by a Civil Service Retirement System 

(CSRS)-covered employee is transferred to the Office of 

Personnel Management (OPM) upon the retirement of 

that individual. Credit is given for sick leave balances in 

the computation of annuities upon the retirement of 

Federal Employees Retirement System (FERS)-covered 

employees. 

J. Accrued and Actuarial Workers’ Compensation 

The FECA administered by the U.S. Department of 

Labor (DOL) addresses all claims brought by the FMC 

employees for on-the-job injuries. The DOL bills each 

agency annually as its claims are paid, but payment of 

these bills is deferred for two years to allow for funding 

through the budget process. Similarly, employees that 

the FMC terminates without cause may receive 

unemployment compensation benefits under the 

unemployment insurance program also administered by 

the DOL, which bills each agency quarterly for paid 

claims. Future appropriations will be used for the 

reimbursement to DOL. The liability consists of (1) the 

net present value of estimated future payments 

calculated by the DOL, and (2) the unreimbursed cost 

paid by DOL for compensation to recipients under the 

FECA. 

K. Retirement Plans 

FMC employees participate in either the CSRS or the 

FERS. The employees who participate in CSRS are 

beneficiaries of FMC matching contribution, equal to 

7% of pay, distributed to their annuity account in the 

Civil Service Retirement and Disability Fund. 

Prior to December 31, 1983, all employees were

covered under the CSRS program. From January 1, 

1984 through December 31, 1986, employees had the 

option of remaining under CSRS or joining FERS and 

Social Security. Employees hired as of January 1, 1987 

are automatically covered by the FERS program. Both

CSRS and FERS employees may participate in the 

federal Thrift Savings Plan (TSP). FERS employees 

receive an automatic agency contribution equal to 1% of 

pay and FMC matches any employee contribution up to 

an additional 4% percent of pay. For FERS participants, 

FMC also contributes the employer’s matching share of 

Social Security. 

FERS employees and certain CSRS reinstatement 

employees are eligible to participate in the Social 

Security program after retirement. In these instances, 

FMC remits the employer’s share of the required 

contribution. 

The FMC recognizes the imputed cost of pension and 

other retirement benefits during the employees’ active 

years of service. OPM actuaries determine pension cost 

factors by calculating the value of pension benefits 

expected to be paid in the future and communicate these 

factors to FMC for current period expense reporting. 

OPM also provides information regarding the full cost 

of health and life insurance benefits. FMC recognized 

the offsetting revenue as imputed financing sources to 

the extent these expenses will be paid by OPM. 

FMC does not report on its financial statement’s 

information pertaining to the retirement plans covering 

its employees. Reporting amounts such as plan assets, 

accumulated plan benefits, and related unfunded 

liabilities, if any, is the responsibility of the OPM, as the 

administrator. 

L. Other Post-Employment Benefits 

FMC employees eligible to participate in the Federal 

Employees' Health Benefits Plan (FEHBP) and the 

Federal Employees' Group Life Insurance Program 

(FEGLIP) may continue to participate in these programs 

after their retirement. The OPM has provided the FMC 

with certain cost factors that estimate the true cost of 

providing the post-retirement benefit to current 

employees. The FMC recognizes a current cost for these 

and Other Retirement Benefits (ORB) at the time the 

employee's services are rendered. The ORB expense is 
FISCAL YEAR 2022 | Performance and Accountability Report | 61

Federal Maritime Commission

financed by OPM and offset by the FMC through the 

recognition of an imputed financing source. 

M. Use of Estimates 

The preparation of the accompanying financial 

statements in accordance with generally accepted 

accounting principles requires management to make 

certain estimates and assumptions that affect the 

reported amounts of assets, liabilities, revenues, and 

expenses. Actual results could differ from those 

estimates. 

N. Contingencies 

Liabilities are deemed contingent when the existence or 

amount of the liability cannot be determined with 

certainty pending the outcome of future events. FMC 

recognizes contingent liabilities in the accompanying 

balance sheet and statement of net cost, when it is both 

probable and can be reasonably estimated. The FMC 

discloses contingent liabilities in the notes to the 

financial statements when the conditions for liability 

recognition are not met or when a loss from the outcome 

of future events is more than remote. In some cases, 

once losses are certain, payments may be made from the 

Judgment Fund maintained by the U.S. Treasury rather 

than from the amounts appropriated to FMC for agency 

operations. Payments from the Judgment Fund are 

recorded as an “Other Financing Source” when made. 

O. Reclassification 

Certain fiscal year 2021 balances have been reclassified, 

retitled, or combined with other financial statement line 

items for consistency with the current year presentation. 

P. Classified Activities

Accounting standards require all reporting entities to 

disclose that accounting standards allow certain 

presentations and disclosures to be modified, if needed, 

to prevent the disclosure of classified information.

NOTE 2. FUND BALANCE WITH TREASURY

Fund Balance with Treasury account balances as of September 30, 2022 and 2021, were as follows: 

No discrepancies exist between the Fund Balance reflected on the Balance Sheet and the balances in the Treasury 

accounts. 

The available unobligated fund balances represent the current period amount available for obligation or 

commitment. At the start of the next fiscal year, this amount will become part of the unavailable balance as 

described in the following paragraph.

The unavailable unobligated fund balances represent the amount of appropriations for which the period of 

availability for obligation has expired. These balances are available for upward adjustments of obligations incurred 

only during the period for which the appropriation was available for obligation or for paying claims attributable to 

the appropriations. 

The obligated balance not yet disbursed includes accounts payable, accrued expenses, and undelivered orders that 

have reduced unexpended appropriations but have not yet decreased the fund balance on hand (see also Note 9).

2022 2021

Status of Fund Balance with Treasury:

Unobligated Balance

 Available $ 484,453 $ 238,875

 Unavailable 2,390,486 2,458,280

Obligated Balance Not Yet Disbursed 8,486,522 5,710,351

Total $ 11,361,461 $ 

8,407,506
FMC FISCAL YEAR 2022 Performance and Accountability Report  62

FMC FISCAL YEAR 2019| e and Accountability Report| 62

NOTE 3. ACCOUNTS RECEIVABLE, NET 

Accounts receivable balances as of September 30, 2022 and 2021, were as follows: 

2022 2021

Other than Intergovernmental

Miscellaneous Accounts Receivable $ 80,198 $ 

84,664

Interest Receivable 315 195

Penalties and Fines Receivable 934 610

Total Accounts Receivable $ 81,447 $ 

85,469

The accounts receivable is primarily made up of services provided to the public. Historical experience has indicated 

that the majority of the receivables are collectible. There are no material uncollectible accounts as of September 30, 

2022 and 2021.

NOTE 4. LIABILITIES NOT COVERED BY BUDGETARY RESOURCES 

The liabilities for FMC as of September 30, 2022 and 2021, include liabilities not covered by budgetary resources. 

Congressional action is needed before budgetary resources can be provided. Although future appropriations to fund 

these liabilities are likely and anticipated, it is not certain that appropriations will be enacted to fund these liabilities. 

2022 2021

Unfunded Leave $ 1,675,369 $ 

1,683,770

Total Liabilities Not Covered by Budgetary Resources $ 1,675,369 $ 

1,683,770

Total Liabilities Covered by Budgetary Resources 1,726,125 1,970,384

Total Liabilities Not Requiring Budgetary Resources 75,328 77,760

Total Liabilities $ 3,476,822 $ 

3,731,914

FMC records an actuarial liability for future workers compensation claims based on the liability to benefits paid 

(LBP) ratio provided by DOL and multiplied by the average of benefits paid over three years. 

Unfunded leave represents a liability for earned leave and is reduced when leave is taken. The balance in the accrued 

annual leave account is reviewed quarterly and adjusted as needed to accurately reflect the liability at current pay 

rates and leave balances. Accrued annual leave is paid from future funding sources and, accordingly, is reflected as a 

liability not covered by budgetary resources. Sick and other leave is expensed as taken. 
FISCAL YEAR 2022 | Performance and Accountability Report | 63

Federal Maritime Commission

NOTE 5. OTHER LIABILITIES 

Other liabilities account balances as of September 30, 2022 were as follows: 

Current Total

Intragovernmental

Employer Contributions and Payroll Taxes Payable (without reciprocals) $ 75,739

$ 

75,739

Custodial Liability (to the General Fund) 75,278 

75,278

Liability for Non-Entity Assets Not Reported on the Statement of Custodial 

Activity 

(other than the General Fund) 50

 

50

Employer Contributions and Payroll Taxes Payable 218,364 218,364

Total Intragovernmental Other Liabilities $ 369,431 $ 369,431

Other than Intragovernmental

Accrued Funded Payroll and Leave $ 1,044,581 $ 1,044,581

Total Other than Intragovernmental Other Liabilities $ 1,044,581 $ 1,044,581

Total Other Liabilities $ 1,414,012 $ 1,414,012

Other liabilities account balances as of September 30, 2021 were as follows: 

Current Total

Intragovernmental

Employer Contributions and Payroll Taxes Payable (without reciprocals) $ 67,962 $ 67,962

Custodial Liability (to the General Fund) 77,700 77,700

Liability for Non-Entity Assets Not Reported on the Statement of Custodial 

Activity 

(to the General Fund) 60 60

Employer Contributions and Payroll Taxes Payable 190,118 190,118

Other Post Employment Benefits Due and Payable 50 50

Total Intragovernmental Other Liabilities $ 335,890 $ 

335,890

Other than Intragovernmental

Accrued Funded Payroll and Leave $ 951,569 $ 951,569

Total Other than Intragovernmental Other Liabilities $ 951,569 $ 951,569

Total Other Liabilities $ 1,287,459 $ 1,287,459
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Federal Maritime Commission

NOTE 6. OPERATING LEASES

FMC occupies office space in four locations, of which all four of the lease agreements are required to be accounted 

for as operating leases. Lease payments are increased annually based on the adjustments for operating cost and real 

estate tax escalations. The total operating lease expense for the periods ended September 30, 2022 and 2021, 

respectively were $3,200,121 and $3,646,836, respectively. The lease locations and terms are listed below: 

Location Term Lease Expiration Date

Iselin, NJ 10 years 3/15/2024

Tacoma, WA 10 years 10/31/2031

Houston, TX 15 years 10/1/2033

Washington, DC 15 years 10/31/2037

The operating lease amount does not include estimated payments for leases with annual renewal options. The 

schedule of future payments for the term of the leases is as follows: 

NOTE 7. COMMITMENTS AND CONTINGENCIES

FMC records commitments and contingent liabilities for legal cases in which payment has been deemed probable, 

and for which the amount of potential liability has been estimated, including certain judgments that have been issued 

against the agency. The FMC has no knowledge of any lawsuits/investigations in which payment is deemed 

probable. 

Fiscal Year Totals

2023 $ 346,475

2024 $ 1,936,126

2025 $ 3,255,930

2026 $ 3,291,205

2027 $ 3,411,747

Thereafter $ 37,079,935

Total Future Minimum Payments $ 49,321,418
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Federal Maritime Commission

NOTE 8. INTER-ENTITY COSTS 

FMC recognizes certain inter-entity costs for goods and services that are received from other federal entities at no 

cost or at a cost less than the full cost. Certain costs of the providing entity that are not fully reimbursed are 

recognized as imputed cost and are offset by imputed revenue. Such imputed costs and revenues relate to employee 

benefits and claims to be settled by the Treasury Judgement Fund. FMC recognizes as inter-entity costs the amount 

of accrued pension and post-retirement benefit expenses for current employees. The assets and liabilities associated 

with such benefits are the responsibility of the administering agency, OPM. 

For the periods ended September 30, 2022 and 2021, respectively, inter-entity costs were as follows: 

2022 2021

Office of Personnel Management $ 1,123,005 $ 

1,153,832

Total Imputed Financing Sources $ 1,123,005 $ 

1,153,832

NOTE 9. UNDELIVERED ORDERS AT THE END OF THE PERIOD 

As of September 30, 2022, budgetary resources obligated for undelivered orders were as follows: 

Federal Non-Federal Total

Unpaid Undelivered Orders $ 1,503,986 $ 5,256,410 $ 

6,760,396

Total Undelivered Orders $ 1,503,986 $ 5,256,410 $ 

6,760,396

As of September 30, 2021, budgetary resources obligated for undelivered orders were as follows: 

Federal Non-Federal Total

Unpaid Undelivered Orders $ 998,579 $ 2,741,390 $ 

3,739,969

Total Undelivered Orders $ 998,579 $ 2,741,390 $ 

3,739,969
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Federal Maritime Commission

NOTE 10. EXPLANATION OF DIFFERENCES BETWEEN THE SBR AND THE BUDGET OF THE U.S. GOVERNMENT 

The President’s Budget that will include fiscal year 2022 actual budgetary execution information has not yet been 

published. The President’s Budget is scheduled for publication in February 2023 and can be found at the OMB Web 

site: http://www.whitehouse.gov/omb/. The 2023 Budget of the United States Government, with the "Actual" column 

completed for 2021, has been reconciled to the Statement of Budgetary Resources and there were no material 

differences. 

In Millions 

New Obligations

Budgetary & Upward Net

Resources Adjustments 

(Total)

Outlays

Combined Statement of Budgetary Resources $ 33 $ 30 $ 30

Unobligated Balance Not Available (3) - -

Budget of the U.S. Government $ 30 $ 30 $ 30

NOTE 11. CUSTODIAL ACTIVITY 

FMC is an administrative agency, collecting for another entity or the General Fund of the Treasury. As a collecting 

entity, FMC measures and reports cash collections and refunds. These collections are reported as custodial revenue 

on the Statement of Custodial Activity. The type of cash collected is for fines, penalties and administrative fees. A 

small portion is for interest on the past due fines. Another component of the custodial revenue is general proprietary 

receipts (User Fees) for the application of licenses issued to qualified Ocean Transportation Intermediaries (OTI’s) 

in the U.S., FMC reviews petitions, status changes and special permission fees. FMC believes that all fines, 

penalties, administrative fees and user fees will be collected in full. There are no material uncollectible accounts as 

of September 30, 2022 and 2021. 

Custodial collections are reported on the Statement of Custodial Activity. The miscellaneous receipts are broken out 

in the general receipt funds as follows: 

2022 2021

Fines, Penalties, and Forfeitures $ 2,082,000 $ -

General Fund Proprietary Receipts (User fees) 253,715 

216,490

Refunds of Proprietary Receipts (User fees) (480) 

(250)

Total Custodial Collections $ 2,335,235 $ 

216,240
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Federal Maritime Commission

NOTE 12. RECONCILIATION OF NET COST TO NET OUTLAYS 

The reconciliation of net outlays, presented on a budgetary basis, and the net cost, presented on an accrual basis, 

provides an explanation of the relationship between budgetary and financial accounting information. 

Reconciliation of Net Cost Outlays as of September 30, 2022:

Reconciliation of Net Cost Outlays as of September 30, 2021:
FISCAL YEAR 2022 | Performance and Accountability Report | 68

Federal Maritime Commission

Other Required Information
FISCAL YEAR 2022 | Performance and Accountability Report | 69

Federal Maritime Commission

Inspector General’s Statement on Management and Performance 

Challenges

 FEDERAL MARITIME COMMISSION

Washington, DC 20573

October 14, 2022

Office of Inspector General

TO: Chairman Maffei 

Commissioner Dye 

Commissioner Sola

Commissioner Bentzel

Commissioner Vekich

FROM: Inspector General 

SUBJECT: Inspector General’s Statement on the Federal Maritime Commission’s Management and 

Performance Challenges

The Reports Consolidation Act of 2000 (Public Law 106-531) requires inspectors general to 

provide a summary and assessment of the most serious management and performance challenges facing 

Federal agencies, and their progress in addressing these challenges. The attached document responds to the 

requirements and provides the annual statement to be included in the Federal Maritime Commission’s 

(FMC) Performance and Accountability Report (PAR) for fiscal year (FY) 2022. 

The Office of Inspector General (OIG) has identified the implementation of the Ocean Shipping 

Reform Act of 2022 (OSRA) and information technology (IT) security to be management and performance 

challenges. The OIG’s assessment for these two issues is based on information derived from a combination 

of sources, including OIG evaluation work; Commission reports; Federal government reports; and a general 

knowledge of the Commission’s programs. 

The Reports Consolidation Act of 2000 permits agency comment on the inspector general’s 

statements. Agency comments, if applicable, are to be included in the final version of the FMC PAR that is 

due by November 15, 2022. 

/s/

Jon Hatfield

Attachment

Cc: Lucille L. Marvin, Managing Director

Patrick M. Moore, Director, Enterprise Services/Chief Financial Officer

Katia Kroutil, Acting General Counsel

Kathie L. Keys, Special Assistant to the Managing Director
FISCAL YEAR 2022 | Performance and Accountability Report | 70

Federal Maritime Commission

The Management Challenge

Implementation of the Ocean Shipping Reform Act of 2022 (OSRA)

On June 16, 2022, President Joseph R. Biden Jr. signed into law the Ocean Shipping 

Reform Act of 2022 (OSRA), enacted as Public Law 116-146. The Federal Maritime Commission 

(FMC) is charged with ensuring a competitive and reliable international ocean transportation 

supply system that supports the U.S. economy and protects the public from unfair and deceptive 

practices. The bipartisan OSRA intends to level the playing field for American exporters and 

importers by providing the FMC the tools it needs for effective oversight of international ocean 

carriers. These oversight and enforcement tools will help the FMC eliminate unfair charges, 

prevent unreasonable denial of American exports, and crack down on other unfair practices 

harming American businesses and consumers. 

The Inspector General (IG) has identified the implementation of OSRA as one of the 

management and performance challenges facing the FMC because of the importance and 

magnitude of the legislation’s requirements. While the IG believes the very capable and dedicated 

Commission and staff will successfully fulfill the requirements of the new law, the number of new 

requirements, timeframes, and resources required are substantial, and are in addition to the 

agency’s existing mission requirements. The FMC is a relatively small Federal agency, at the end 

of FY 2022 the agency had 122 staff on board. This number includes two long-serving former 

FMC senior executives who are reemployed annuitants specifically to assist the FMC with 

implementation of OSRA. 

The most important requirement for successful implementation and execution of OSRA is 

to ensure the agency has the necessary staff resources. Last year’s IG report identified high 

turnover in senior positions as one of the management challenges facing the agency. Specifically, 

the IG highlighted for the years 2019, 2020, and 2021, ten of the fifteen FMC offices/bureaus 

experienced turnover in the senior position. The high turnover in senior positions is particularly 

challenging for a small organization like the FMC because FMC bureaus and offices lack multiple 

management layers to draw upon when senior leadership turnover occurs. Although the FMC was 

relatively quick to fill these positions and with very qualified and competent individuals, the 

turnover of many talented and very experienced senior leaders in a relatively short period of time 

has resulted in the loss of institutional knowledge and expertise that required many years to 

develop. 

Agency Progress and the Challenge Ahead

At a September 21, 2022, Commission meeting, agency staff briefed the Commission and 

reported that substantial progress had been made in implementing many of the requirements 

established by OSRA. Specifically, progress included a Notice of Proposed Rulemaking (NPRM) 

on unreasonable refusal to deal in regard to vessel space, a scheduled NPRM on demurrage and 

detention billing requirements, progress towards establishment of a permanent process for 

handling Charge Complaints, and two requests for public comment had been issued. 
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Federal Maritime Commission

In the FMC’s FY 2023 budget justification, dated March 2022 (pre-OSRA), the FMC 

requested $34,683,500 to accomplish its statutory responsibilities and to meet the needs of 

stakeholders and the public. This level of funding represents a $1.8M (5.3 percent) increase from 

the FY 2022 enacted budget. The budget increase would support the Commission’s efforts to 

address the impact on the ocean shipping industry of unprecedented surges in cargo volumes and 

congestion at our Nation’s ports. According to the budget justification, the requested funding level 

would enable the Commission to add the appropriate resources to create a lasting capability to 

focus on supply chain issues. Specifically, the FY 2023 budget justification (request) states the 

agency would continue its hiring efforts to reach 164 full-time positions and achieve the 150 fulltime equivalent level supported by the budget justification. The agency is also working on the FY 

2024 budget justification with specific plans to request additional hiring to support the 

implementation and execution of OSRA.

The Management Challenge

Information Technology (IT) Security

Government-wide, the Government Accountability Office (GAO) has designated 

information security as a high-risk area since 1997. GAO expanded this high-risk area in 2003 to 

include protection of critical cyber infrastructure and, in 2015, to include protecting the privacy of 

personally identifiable information (PII). GAO’s high-risk program focuses attention on 

government operations that GAO identifies as high-risk due to their greater vulnerabilities to fraud, 

waste, abuse, and mismanagement or the need for transformation to address economy, efficiency, 

or effectiveness challenges. 

Over the last several years and continuing in FY 2022, the OIG’s audit work has found the 

FMC to be focused on maintaining an effective IT security program. The FMC is highly dependent 

on IT systems and electronic data to carry out agency operations and to process, maintain, and 

report essential information. Therefore, the security of these systems and data is vital to ensure the 

confidentiality, integrity, and availability of FMC systems and information. Risks to the FMC’s 

IT systems can include insider threats from witting or unwitting employees, escalating and 

emerging threats from around the globe, and new and more destructive attacks.

According to GAO, after two high-profile cyber incidents that affected Federal IT 

systems—the SolarWinds and Microsoft Exchange Server hacks—Congress and Federal agencies 

are moving with renewed urgency to take actions that would improve the security of U.S. 

government IT systems from cyberattacks. In 2022, the FMC volunteered to be an early adopter 

of the Vulnerability Disclosure Policy (VDP) Platform, a centrally managed system by the 

Cybersecurity & Infrastructure Security Agency (CISA). 

According to CISA, the objective of the VDP Platform is to promote good faith security 

research to achieve improved security and coordinated disclosure. The VDP Platform is also 

intended to improve vulnerability detection on Federal networks by enabling participating agencies 
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Federal Maritime Commission

to benefit from timely reporting that, in turn, facilitates prompt resolution. The FMC’s goal for 

early adoption of the VDP Platform was to identify and remediate any vulnerabilities that may be 

found as quickly as possible. In fact, the FMC’s early adoption of the VDP Platform resulted in 

the identification of a vulnerability. Unfortunately, according to an FMC report filed with the 

Inspector General, the CISA/contractor failed to notify the FMC of the vulnerability, and the 

CISA/contractor allegedly made an unauthorized change to an FMC database, both are apparent 

violations of the memorandum of understanding between the FMC and CISA. Although the 

CISA/contractor apparently did not follow aspects of their own ‘rules of engagement,’, ultimately 

the FMC was able to assess, remediate, and identify lessons learned to further strengthen the 

FMC’s network. 

Agency Progress and the Challenge Ahead

The Federal Information Security Modernization Act (FISMA) establishes information 

security program and evaluation requirements for Federal agencies in the executive branch, 

including the FMC. Each year, the OIG oversees an independent FISMA audit of the information 

security program and practices of the agency. The results of the audit are reported annually to the 

Office of Management and Budget (OMB); selected congressional committees; the Comptroller 

General; and the FMC’s Commission and management. 

The results of the OIG’s Fiscal Year 2022 Audit of the FMC’s Compliance with the Federal 

Information Security Modernization Act (FISMA) indicate the FMC has an effective information 

security program. The OIG’s audit concluded both prior year audit recommendations had been 

addressed by the Office of Information Technology (OIT). Specifically, the OIT corrected an issue 

related to the computer network password policy settings. OIT also developed, reviewed, and 

updated information security policies and procedures to adhere to agency and government-wide 

requirements. The 2022 audit included two new audit recommendations related to the development 

of policies and procedures to incorporate new government-wide information security 

requirements. FMC management agreed with both 2022 audit recommendations.

Comments on Inspector General’s Statement

The Commission values the Inspector General’s assessment of the serious management and 

performance challenges facing the Commission and the Federal government in general. The 

Commission intends to continue its efforts to add appropriate resources to create a lasting 

capability to focus on supply chain issues and to meet the challenge of implementing the Ocean 

Shipping Reform Act of 2022. The OIG’s annual FISMA audits and recommendations made for 

strengthening IT security controls continue to play a critical role in keeping the Commission upto-date on significant risks and challenges and are invaluable in aiding to protect its resources.
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Federal Maritime Commission

Financial Statement Audit Summary

Table 1 is a summary of the results of the independent audit of the FMC’s financial statements 

by the agency’s auditors in connection with the FY 2022 audit.

Management Assurances Summary

Table 2 is a summary of management assurances related to the effectiveness of internal control 

over the FMC’s financial reporting and operations and its conformance with financial 

management system requirements under Sections 2 and 4, respectively, of the FMFIA. This 

table also summarizes compliance with the FFMIA, which is not applicable to the Commission.

Table 1. Summary of Financial Statement Audit

Audit Opinion Unmodified

Restatement No

Material Weaknesses Beginning balance New Resolved Consolidated Ending Balance

None n/a n/a n/a n/a n/a

Total Material Weaknesses None None n/a n/a None

Table 2. Summary of Management Assurances

Effectiveness of Internal Control over Financial Reporting (FMFIA § 2)

Statement of Assurance Unmodified

Material Weaknesses Beginning Balance New Resolved Consolidated Reassessed Ending Balance

Total Material Weaknesses None n/a n/a n/a n/a None

Effectiveness of Internal Control over Operations (FMFIA § 2)

Statement of Assurance Unmodified

Material Weaknesses Beginning Balance New Resolved Consolidated Reassessed Ending Balance

[name of weakness] None n/a n/a n/a n/a None

Total Material Weaknesses None n/a n/a n/a n/a None

Compliance with Federal Financial Management System Requirements (FMFIA § 4)

Statement of Assurance Unmodified

Material Weaknesses Beginning Balance New Resolved Consolidated Reassessed Ending Balance

[name of noncompliance] None n/a n/a n/a n/a None

Total noncompliance None n/a n/a n/a n/a None

Compliance with Section 803(a) of the Federal Financial Management Improvement Act (FFMIA)

Agency Auditor

1. Federal Financial Management System Requirements FFMIA does not apply to the FMC n/a

2. Applicable Federal Accounting Standards FFMIA does not apply to the FMC n/a

3. USSGL at Transaction Level FFMIA does not apply to the FMC n/a
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Federal Maritime Commission

Improper Payments Information Act

The FMC reports its compliance with the Payment Integrity Information Act of 2019 through 

OMB’s annual data call on payment integrity. The FMC’s information is provided at 

www.paymentaccuracy.gov.

Fraud Reduction Report

The FMC has a low appetite for fraud. The FMC complies with the Fraud Risk and Data Analytics 

Act of 2015 and follows the Standards for Internal Control in the Government through its 

enterprise risk management program and financial accounting practices. The FMC’s Risk 

Committee tasked with managing risk enterprise-wide considers fraud risks on a regular basis.

Financial stewardship is an important part of the FMC’s risk management strategy. Internal 

controls and financial and accounting data are subject to multiple levels of monthly or annual 

review performed internally by the FMC and externally by the BFS. The most recent OIG risk 

assessment of the purchase card program, completed in 2022, considered several factors, 

including: effectiveness of internal controls; training requirements; policies and procedures; any 

prior problems with the program; and previous audits and reviews. The OIG concluded the risk 

of illegal, improper, or erroneous use in the FMC’s purchase card program is “low,” and as a 

result, an OIG audit or review of the FMC’s purchase card program is not planned in 2022.

The Commission has financial and administrative controls in place, including an internal 

controls policy which provides management and internal control processes for identifying and 

addressing major performance and management challenges and areas at greatest risk of fraud, 

waste, abuse and mismanagement. In 2020, the FMC’s OIG, with the assistance of independent 

financial auditors, completed a review of the Commission’s administrative control of funds. The 

Management Letter on Administrative Control of Funds, A-20-02a, determined that the 

Commission has an internal control system in place for its funds control and recommended 

additional opportunities to further strengthen the agency’s controls. The Commission’s 

administrative control of funds policy is currently in final review by the Office of Management 

and Budget.

In addition, the Commission’s acquisitions policy protects the integrity of the contracting 

process and includes ethical requirements and standards of conduct in accordance with the 

Procurement Integrity Act and Federal Acquisition Regulations.

The FMC does not oversee or have responsibility for any credit, grant, or loan programs. No 

new programs were initiated in FY 2022, and no current programs are at high risk for fraud, 

abuse, or exposure to waste.

Civil Monetary Penalty Adjustment for Inflation

The Federal Civil Penalties Inflation Adjustment Act of 1990, Pub. L. 104-410, as amended by the 

Debt Collection Improvement Act of 1996, Pub. L. 104-134, and the Federal Civil Penalties 
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Inflation Adjustment Act Improvements Act of 2015, Pub. L. 114-74, requires agencies to make 

regular and consistent inflationary adjustments of civil monetary penalties to maintain their 

deterrent effect. 

The following table shows the civil penalties that the FMC may impose, authority for imposing 

the penalty, dates of inflation adjustments, and current penalty levels. The Federal Register 

notice (86 FR 2560) may be viewed at: Federal Register :: Inflation Adjustment of Civil Monetary 

Penalties

Penalty Statutory 

Authority

Date of Previous 

Adjustment

Date of Current 

Adjustment

Maximum 

Penalty

Adverse impact on U.S. carriers by foreign 

shipping practices 46 U.S.C. 42304 January 15, 2021 January 15, 2022 $2,301,065

Knowing and Willful violation / Shipping 

Act of 1984, or Commission regulation or 

order

46 U.S.C. 41107(a) January 15, 2021 January 15, 2022 $65,666

Violation of Shipping Act of 1984, 

Commission regulation or order, not 

knowing and willful

46 U.S.C. 41107(b) January 15, 2021 January 15, 2022 $13,132

Operating in foreign commerce after tariff 

suspension 46 U.S.C. 41108(b) January 15, 2021 January 15, 2022 $131,334

Failure to provide required reports, etc. / 

Merchant Marine Act of 1920 46 U.S.C. 42104 January 15, 2021 January 15, 2022 $10,360

Adverse shipping conditions / Merchant 

Marine Act of 1920 46 U.S.C. 42106 January 15, 2021 January 15, 2022 $2,071,819

Operating after tariff or service contract 

suspension / Merchant Marine Act of 1920

46 U.S.C. 42108 January 15, 2021 January 15, 2022 $103,591

Failure to establish financial responsibility 

for non-performance of transportation* 46 U.S.C. 44102 January 15, 2021 January 15, 2022 $26,167$873

Failure to establish financial responsibility 

for death or injury* 46 U.S.C. 44103 January 15, 2021 January 15, 2022 $26,167$873

Program Fraud Civil Remedies Act / makes 

false claim

31 U.S.C. 

3802(a)(1) January 15, 2021 January 15, 2022 $12,537

Program Fraud Civil Remedies Act / giving 

false statement

31 U.S.C. 

3802(a)(2) January 15, 2021 January 15, 2022 $12,537

*These amounts are based on the penalties established in § 44104 for violations of §§ 44102 and 44103: $5,000, 

plus $200 for each passage sold. These penalties were established in 1966 and, applying the statutory inflation 

adjustment formula, amount to $26,167, plus $873 for each passage sold, in current dollars. 

Biennial Review of User Fees

Agencies are required by the Chief Financial Officers Act of 1990 to conduct biennial reviews of 

fees and other charges that they impose and to revise these fees and charges to cover program 

and administrative costs incurred, as necessary. The Commission estimates that its update to 

user fees, in a direct final rule, will publish by January 27, 2023. User fee rates will next be 

examined in CY 2024.
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