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

National Park Service--Special Park Use Fees

B-307319, August 23, 2007

Summary (HTML)   Full Decision (PDF, 12 pages)   Full Decision (HTML)  

Hardrock Mining: BLM Needs to Better Manage Financial Assurances to Guarantee Coverage of Reclamation Costs

GAO-05-377, June 20, 2005

Summary (HTML)   Highlights Page (PDF)   Full Report (PDF, 98 pages)   Accessible Text   Recommendations (HTML)

Hardrock Mining: Information on Abandoned Mines and Value and Coverage of Financial Assurances on BLM Land

GAO-08-574T, March 12, 2008

Summary (HTML)   Highlights Page (PDF)   Full Report (PDF, 29 pages)   Accessible Text

National Parks Air Tour Fees: Effective Verification and Enforcement Are Needed to Improve Compliance

GAO-06-468, May 11, 2006

Summary (HTML)   Highlights Page (PDF)   Full Report (PDF, 37 pages)   Accessible Text   Recommendations (HTML)

Renewable Energy: Increased Geothermal Development Will Depend on Overcoming Many Challenges

GAO-06-629, May 24, 2006

Summary (HTML)   Highlights Page (PDF)   Full Report (PDF, 48 pages)   Accessible Text   Recommendations (HTML)

National Park Service: Revenues Could Increase by Charging Allowed Fees for Some Special Uses Permits

GAO-05-410, May 6, 2005

Summary (HTML)   Highlights Page (PDF)   Full Report (PDF, 45 pages)   Accessible Text   Recommendations (HTML)

Recreation Fees: Agencies Can Better Implement the Federal Lands Recreation Enhancement Act and Account for Fee Revenues

GAO-06-1016, September 22, 2006

Summary (HTML)   Highlights Page (PDF)   Full Report (PDF, 111 pages)   Accessible Text   Recommendations (HTML)

Livestock Grazing: Federal Expenditures and Receipts Vary, Depending on the Agency and the Purpose of the Fee Charged

GAO-05-869, September 30, 2005

Summary (HTML)   Highlights Page (PDF)   Full Report (PDF, 110 pages)   Accessible Text

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