Review of Certain Aspects of the Federal Ship Financing Program--Title XI

Gao ID: CED-77-68 May 16, 1977

Certain management weaknesses and other aspects of the Maritime Administration's administration of the Title XI Federal Ship Financing Program need attention.

Program income is being reduced because of late guarantee fee collection. Required annual recertification that vessel owners and operators are U.S. citizens are not always submitted. Refinancing grantees are limited by budget ceiling to only a reasonable amount of new ship construction or where refinancing is necessary for applicant's financial viability. Processing delays cause applicants excess interest costs and preclude title XI's full contribution to the Merchant Marine Act. Documentation requirements need improvement and are a disincentive to applicants.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

Director: No director on record Team: No team on record Phone: No phone on record


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