(Chapter 1-Management of Fees in Selected Departments and Agencies)
Ottawa, 6 May 2008-Some federal organizations that charge fees for a good, service, or use of a facility do not adequately take into account the cost of what they are providing when they decide what to charge, says the Auditor General of Canada, Sheila Fraser, in her Report tabled today in the House of Commons.
"Cost is not the only factor, but the fee for a good, a service, or the use of a facility has to take cost into consideration," said Ms. Fraser. "We found that some organizations do use methods that capture the full costs. However, others do not know the cost of what they are providing for the fee."
In the 2006–07 fiscal year, federal departments and agencies reported collecting a total of about $1.9 billion in fees for anything from a passport to a licence for manufacturing pharmaceuticals.
The total amount collected annually from a fee for a service is normally not to exceed the cost of providing the service. At Foreign Affairs and International Trade Canada, however, the audit found that for a number of years, revenues from the consular services fee (part of the charge for an adult passport) exceeded the costs of the activities described in the Treasury Board approval.
"The Parks Canada Agency provides a good example of fee management," said Ms. Fraser. "Its entry fees are based on the full costs of the related programs."
The Report also notes that important accountability provisions of the User Fees Act do not apply to most fees in government, only to the four fees introduced or increased since the Act was passed in 2004. For the vast majority of fees, the organizations are not required to publicly report costs, performance standards, and performance information, or to reduce fees when service standards are not achieved.
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The chapter "Management of Fees in Selected Departments and Agencies" is available on the Office of the Auditor General of Canada website.
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