Enhancing Other Revenue Collection

The federal government may not be collecting all of the revenues that it could be, and some programs that receive revenue do not have needed controls. For many years, Interior’s IG has identified revenue collection as a top management challenge for the department because of the significant potential for underpayments given that it collects, on average, more than $10 billion annually. GAO’s work also raised questions about how and when Interior is collecting authorized revenues from geothermal leases, recreational uses, and grazing and whether funds are properly controlled and accounted for.

• For example, GAO reported that, while required by law to continue to collect a certain level of revenue from geothermal leases, the department is not collecting the necessary information to do so.

  Highlights of GAO-06-629 (PDF)

• Interior agencies are authorized—and in some cases required—to collect fees for a variety of other activities, such as from air tour operators at selected national parks and from individuals and companies conducting commercial filming. However, GAO found that the agencies were not collecting such fees. For example, the National Park Service could be collecting more revenue through the permits it issues for special park uses, such as special events, but was not doing so because park units were not consistently applying criteria for charging permit fees.

  Highlights of GAO-06-468 (PDF), Highlights of GAO-05-410 (PDF), Highlights of GAO-06-1016 (PDF), and Summary of B-307319

• In addition, while mine operators are required to provide financial assurances to guarantee reclamation costs for hardrock operations on BLM lands, GAO found that the financial assurances for 48 operations are about $56 million less than needed to fully cover estimated reclamation costs.

  Highlights of GAO-08-574T (PDF), Highlights of GAO-05-377 (PDF)

• Finally, should Congress choose to authorize it to do so, BLM could be collecting more in grazing revenue, thereby bringing its fees more in line with the fees charged by other federal agencies. Ten federal agencies manage grazing on more than 22 million acres. Most agencies’ fees are designed to primarily recover the agencies’ costs or capture the fair market value of forage. BLM fees, however, are set by a formula that was originally established by a law that expired, but use of the formula has been extended indefinitely by executive order since 1986. This formula takes into account a rancher’s ability to pay and, therefore, the purpose is not primarily to recover the agencies’ costs or capture the fair market value of forage. Instead, the formula is designed to set a fee that helps support ranchers and the western livestock industry. Other federal agencies use market-based approaches to setting grazing fees.

  Highlights of GAO-05-869 (PDF)

^ Back to topWhat Needs to Be Done

As the Park Service revises its guidance on fees for special uses permits, it should ensure that the guidance reflects the resolution GAO reached with the Solicitor's Office regarding the authority for the Park Service's fee structure (see GAO's General Counsel decision on Special Park Use Fees, August 23, 2007).

Summary of B-307319

^ Back to topKey Reports

Renewable Energy

Recreation Fees

National Park Service

National Parks Air Tour Fees

Livestock Grazing

Hardrock Mining

Hardrock Mining

More Reports