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089076 1 (1977-01-26)

handle is hein.gao/gaobacvcc0001 and id is 1 raw text is: F) E V h L .3 P? E N F I 'C (P fM-D2S'FATES GENEIRAL A(CCIUNTI NG OFFICE V.1!1i I N6 1 cDN, cU.C. Z 0! 4 eli~19 2 *7 ip The Honorable Robert J. Blackwell Assistant Secretary for Maritime Affairs Department of Coimerce Dear Mr. BIlackwell: During April 1976 we initiated a survey of the Maritime Admin- istration's (MarAd) ship sales program. Our objective was to evaluate MarAd's effectiveness in disposing of surplus Government vessels. Included in our survey w-as an examination of the progress being made *o iplement the recommendations contained in a December 1975 Depart- .ant of Commerce Office of Audits report on selected ship sales .ctivities. To assist us in this effort we review.:ed the vorkpapers .repared by the internal auditors and then proceeded to update the status of their rec;mjendations. These reccamandations wiere made after 1:he internal auditors had reviewed the policies, plans and procedures seing applied under the ship sales progrn -nd ,ere dimed at strength- aning the ianaga;ient and control of the program. Results of this ,gment of our survey are discussed in this letter. Our survey disclosed that MarAd had not adequately implemented the reco:mendations made by the Office of Audits. We believe the recommen- ation concerning on-site vessel appraisals should be formally adopted as art of the vessel sales procedures and that funds be made available to 1pl ',nt these procedures. We believe to other rcc'::endations con- srning (1) the Livelope nt of criteria use d to Latirn the loaest saceptable price, and (2) the establishm:nt of ,ritt:n policies and racedures for the sale of ships should be further implemented. The tails of these matters are discussed in the fallowing paragraphs. SITE AFPA I 7LS SC;LULD DE ROUTINELY sSED 0 ESTABLItH VESSEL WEIGHT The internal auditors stated that MarAd did not conhuct on-site :ssel ppra i als to stablish the esti, ated weipht of the vessels being :A1d 5ar crping or rentransportation se. irce wei:ht is an .u idlulluu ...... IIIII uIIIIII IIIIIIIIIII.IIIIII.I..I........I..I.I ..illsllm u i u .. . p

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