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Guidelines for Setting Charges in the Public Sector -April 2017

2  Scoping and planning a cost recovery analysis

This section sets out some of the considerations to be aware of when commencing work on a cost recovery review or proposal.

2.1  What is the scope and purpose of the work?

Cost recovery analysis should always be informed by the overarching policy objectives, and the business processes that delivery those objectives.

It will not always be necessary to revisit the policy objectives, or business processes as part of setting/reviewing cost recovery charges. However, a review of a cost recovery regime should be able to demonstrate that the policy objectives are still appropriate and that business processes are operating efficiently. Effective monitoring processes should enable these to be demonstrated (refer section 6.2 for more detail).

It is worthwhile checking the scope of the analysis or review against the relevant legislation, to make sure the scope tallies with the legal parameters.

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