A US government watchdog agency is launching an audit of management controls at the US Maritime Administration (MarAd).

The Office of the Inspector General (OIG) for the Department of Transportation (DOT) said the review will begin this week and will assess a variety of top-level functions at MarAd, which oversees domestic shipping matters.

The audit will review planning, performance measurement, risk management, organisational structure, workforce development, programme implementation and other areas, according to a government document.

The OIG said it started the review on its own initiative as a result of changes at the agency, which is led by Maritime Administrator Paul “Chip” Jaenichen.

“In recent years, MarAd has restructured its organisation and taken on oversight for a significant influx of federal funds, pointing to the need for a comprehensive review of the agency’s controls over its operations,” wrote Thomas Yatsco, OIG’s assistant inspector general for surface transportation audits.

While within DOT, the OIG is responsible for carrying out autonomous audits and investigations of the department and the agencies under its umbrella to root out fraud, waste and abuse.

It is not the first time that the transportation department’s OIG has carried out a review of Mar­Ad. However, the latest audit has a more top-level focus than other recent audits.

The latest audit was disclosed on the same day that MarAd extended by 22 days a deadline for private contractor Premier Management to carry out a separate performance audit review of the agency’s Office of Acquisition’s procurement functions, according to government documents. A Mar­Ad spokeswoman said there was no connection to the OIG audit.

MarAd’s mandate includes US-flag and cabotage shipping, as well as shipyards and port infrastructure.

“The Maritime Administration’s core mission is to promote the entire US maritime industry, including domestic ship recycling,” said former MarAd general counsel Denise Krepp, who now advocates for the domestic recycling sector. “Unfortunately, MarAd supports foreign recyclers instead of those in Louisiana and Texas. As part of the audit, I encourage the IG to examine this shocking discrepancy and the number of US jobs that have been lost as a result of Mar­Ad’s refusal to support US workers.” (See Guest Opinion, page 10.)

A spokeswoman for MarAd referred questions to the OIG, whose spokesman could not be immediately reached for comment.

In August 2013, an OIG report said MarAd lacked effective oversight mechanisms in its port development programme, which had suffered numerous setbacks. MarAd agreed with all nine recommendations by the DOT watchdog.