610 - Establishment of Fees
Effective: April 1, 2016
Section: Revenue Cycle
Administrator: Office of the Comptroller General
Applicability: GNWT Departments and Public Agencies
POLICY
Where economically and administratively feasible, GNWT Departments and Public Agencies shall charge fees for licenses, permits and services rendered to the public. The authorized rates for any fee shall bear a reasonable relationship to the cost of administering the license or service or be authorized at a rate lower than full cost recovery, where appropriate.
PURPOSE
To provide guidance to GNWT Departments and Public Agencies to ensure that new or amended fee structures are not at risk of being construed as an indirect tax. This policy also establishes that charging fees is a mechanism to partially offset the costs of program delivery on the basis that users of a service that benefit directly from that service should bear a portion of the cost of providing that service, where appropriate.
SCOPE
Applies to new fees and changes to existing fees. This policy does not apply to the Northwest Territories Hydro Corporation or the Northwest Territories Power Corporation.
RESPONSIBILITIES
Deputy Head
Ensure that fees are supported by authorized and documented pricing details, including direct and indirect costs, and the periodic fee review structure is defined.
Minister
Advise the Financial Management Board of the introduction of a fee, a change to a fee, or the removal of a fee charged for any service within 60 days of the day on which the fee or a change to the fee is effective, or the fee is removed.
Office of the Comptroller General
May approve Interpretation Bulletins associated with this policy.
Financial Management Board
May issue a directive respecting the financial management or financial administration of a Public Agency.
AUTHORITIES and REFERENCES
- Financial Administration Act (FAA)
- s. 10 – Board directives
- s. 56 – Fees for Service
INTERPRETATION BULLETINS