Effective: April 1, 2016

Applicable FAM Policies: 610 - Establishment of Fees

Applicability: GNWT Departments and Public Agencies

INTERPRETATION

GNWT Departments and Public Agencies are to ensure that fees are collected, safeguarded, and accounted for. 

A rationale for each fee charged must be kept available for audit purposes.

Rationale for each fee charged

The rationale in support of each fee charged must include:

• pricing details;
• the price/rate basis, including direct, indirect, and accounting and system costs; and,
• the time period for cyclical fee reviews

Whenever possible, charges for a service to the public should recover the full cost of the service, including all direct and indirect costs to the responsible department or Public Agency and any other Government units.

In the case of a regulatory service, a fee or charge fixed on a total cost recovery basis may not be warranted. The fee for such a service may be collected from the ultimate user or from an intermediary who considers the expense a cost of doing business.

Program managers should not levy a charge where the cost of collection would constitute an unduly large part of the revenue collected, unless the Government intends to restrict the associated licence or service. It may also be appropriate to set prices at levels that promote the achievement of social or economic goals.