Audit Reports

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MARAD Inactive Obligations

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We issued our final report on our audit of inactive obligations in MARAD. We found that MARAD had implemented an effective program to monitor and liquidate unneeded obligations. The number of inactive obligations had declined more than 80 percent, from 1,246 in March 1999 to 212 in December 2002. The audit identified $24.4 million in unneeded obligations, $24 million of which belonged to MARAD's Title XI Loan Guarantee Program. Letter Commitments in MARAD's Title XI Loan Guarantee Program were not subject to the Office of Accounting's review. We recommended and MARAD agreed to have the Office of Accounting review the Letter Commitments annually.