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U.S. Forest Service: Fees for Recreation Special-Use Permits Do Not Reflect Fair Market Value

RCED-97-16 Published: Dec 20, 1996. Publicly Released: Dec 20, 1996.
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Highlights

Pursuant to a congressional request, GAO reviewed the Forest Service's management of the recreation special-use program, focusing on whether: (1) the fees currently charged for recreation special-uses reflect fair market value; (2) application processing and review costs are recovered; and (3) fees reflect fair market value and costs are not being recovered, and if not, why.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Agriculture The Secretary of Agriculture should direct the Chief, Forest Service, to update the methods used to calculate fees for commercial and noncommercial special-use permits so they better reflect fair market values and comply with the requirements of the Independent Offices Appropriations Act of 1952 and Office of Management and Budget Circular A-25. To minimize any impact that large increases in fees could have on permittees, the Service may wish to consider phasing in new fees. In addition, once the fees are updated, the Service needs to routinely keep them up to date.
Closed – Implemented
The Forest Service has nearly completed a 5-year effort to conduct appraisals and update fees on over 15,000 recreation residences. In many cases, these appraisals were likely to result in fees increasing significantly. However, recent appropriations law directed the Forest Service to develop new appraisal guidelines. Because of this, agency officials estimate that it will be at least 3 or 4 more years before appraisal-based fees are implemented.
Department of Agriculture The Secretary of Agriculture should direct the Chief, Forest Service, to develop and issue cost recovery regulations so that the agency has the proper legal basis for recouping the administrative costs incurred in reviewing and processing special-use permit applications. In order to fully implement this recommendation, it will be necessary for the Service to develop a cost accounting system.
Closed – Implemented
The Forest Service has drafted regulations to address the recommendation. However, they have not moved towards finalizing the regulations in more than one and one-half years. No further progress is expected anytime soon.
Department of Agriculture The Secretary of Agriculture should also consider seeking legislation permitting the Forest Service to retain application and processing fees in the Forest Service unit where the costs were incurred. Permitting the Service to retain the revenues necessary to offset the costs of the program would provide additional incentive and resources for getting the necessary work done.
Closed – Implemented
The Forest Service's FY2000 appropriations authorized a 5-year pilot program giving the agency the authority to retain application and processing fees in the Forest Service unit where the costs were incurred. Once the Forest Service finalizes its cost recovery regulations, which it expects to do by December 2000, the agency can: (1) begin charging fees to recover the costs of administering permits; and (2) retain those fees.

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Topics

Administrative costsCost accountingFair market valueFederal agency accounting systemsForest managementGovernment collectionsLicensesNational forestsNational recreation areasUser fees