FMC Issues Management Discussion and Analysis Report for FY 2003

Highlights of FMC's FY 2003 Management Discussion and Analysis Report

The FMC's Management Discussion and Analysis Report for FY 2003 includes the following information (partial list):

FMC operates below its authorized full-time equivalent (FTE) positions. In recent fiscal years, the FMC was authorized a total of 180 full-time equivalent (FTE) positions. However since 1996, it has been required to maintain FTE positions much lower than authorized. For example, the FMC had 129 FTE positions in FY 2003.

Since 1995, FMC appropriation levels fell, then rose. The FMC states that in FY 1995 its appropriation was $18,531,000. However, in FY 1996 it was allocated $14,836,000 - which the FMC states represents a 20% decrease in funding. Despite this decrease, the FMC lost no statutorily mandated programs or functions.

After nearly straight-line budgets of approximately $14,000,000 in FY 1997 through FY 2000, the FMC states that it has achieved incrementally larger appropriations which have allowed the agency to re-establish a presence in major port cities, among other things. In FY 2003, the most recent year shown, its budget was $16,591,000.

FMC's five strategic goals. The report states that the FMC has established the following five strategic goals to carry out its statutory mandates:

Compliance - promote efficiency and fairness in U.S. foreign waterborne commerce through various means, including outreach and monitoring, to protect the public and assist stakeholders in achieving compliance with ocean transportation statutes administered by the FMC;

Balanced enforcement - foster economic efficiencies, reliance on marketplace factors and maritime security by administering U.S. shipping statutes in a balanced and equitable manner to redress excessive anticompetitive actions and other unlawful activities;

Technological efficiencies - employtechnological enhancements to improve efficiency and to facilitate the exchange of information;

Management capabilities - ensurethe FMC has the appropriate organizational framework and management systems to carry out its statutory mandates; and

Efficient regulatory process - provide a timely, efficient and decisive regulatory process, including alternative dispute resolution, to enable all segments of the industry to operate more effectively; with a minimum of regulatory costs.

FMC's program activities. In its report, the FMC illustrates the FY 2003 cost and actual FTE personnel for each of its program activities. For example, the Formal Proceedings program cost $4,431,000 and had 31 actual FTEs. Another program, Enforcement, cost $2,735,000 and had 20 FTEs in FY 2003.

FMC's plans for 2004. Looking ahead to FY 2004, the FMC states that it will (partial list):

Continue to examine parties claiming vessel-operating common carrier (VOCC) status to ensure compliance and to develop any information regarding company relationships which may become relevant to homeland security;

Plan to complete in early FY 2004 the programming and updating of various database links to provide direct public access to its library of carrier agreements via its homepage, www.fmc.gov;

Continue to participate in activities to help identify any service contract provisions which may be significant to maritime security concerns;

Continue to work to achieve the target of 30 days from receipt to completion of Ocean Transportation Intermediary (OTI, including ocean freight forwarders (OFF) and non-vessel operating common carriers (NVOCCs)) license applications. The FMC states that the current backlog is being cleared and a concerted effort is being made to process current applications between 30 and 60 days after receipt of all appropriate documentation.

See FMC's report for other details, including lists of the FMC's FY 2003 activities.

FMC's 2003 Management Discussion and Analysis (dated January 2004) available at http://www.fmc.gov/Dockets/FMC%20MD&A%20FY03.pdf