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B-163484 1 (1972-07-13)

handle is hein.gao/gaobaagio0001 and id is 1 raw text is: 




                   UNITED STATES GENERAL ACCOUNTING OFFICE
                      X,                                         /7
                          WASHINGTON, D.C. 20548

RESOURCES AND ECONOMIC                                             Y
DEVELOPMENT DIVISION
                                                       JUL 1 3 1972

   B-163484


   Dear Mr. Secretary:                             LM096499

        We have examined into the fee assessment policies and
   practices of the Agricultural Stabilization and Conservation
 / Service (ASCS), Department of Agriculture, concerning its
   processing of price-support loans and storagfacility and 4/Z
 w equipment loans authorized under programs of the Commodity
   Credit Corporation.

        We reviewed applicable legislation, the Office of Manage-J7
   ment and Budget instruction, and ASCS records relating to the
   establishment and administration of loan-processing fees. We
   also interviewed ASCS officials. Our review was made primar-
   ily at ASCS headquarters in Washington, D.C.

        Title V of the Independent Offices Appropriation Act,
   1952 (3i U.S.C. 483a), and Circular No. A-25 of the Office of
   Management and Budget state that Government activities which
   provide identifiable recipients with special benefits or priv-
   ileges should be financially self-sustaining to the maximum
   extent possible. The act states that fair and equitable fees
   should be prescribed which take into consideration direct and
   indirect costs to the Government, value to the recipients,
   public policy or interest served, and other pertinent facts.

        Circular No. A-25 states that, in addition to those costs
   directly related to the activity, the cost to the Government
   should include a proportionate share of an agency's manage-
   ment and supervisory costs and that the cost of providing the
   service should be reviewed every year and fees should be ad-
   justed as necessary.

        Although the Government's general policy is to recover
   to the fullest extent possible the costs of providing special
   services to identifiable recipients, our review showed that
   the fees charged for processing price-support loans were not
   directly related to the costs that should have been recovered
   and that fees were not charged for processing storage facility
   and equipment loans. Further, ASCS had not made an annual re-
   view of its costs to process these loans, contrary to Circu-
   lar No. A-25.

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