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Guidelines for Setting Charges in the Public Sector -April 2017

6  Implementation, monitoring and managing cost recovery regimes

This section covers the management and monitoring practices that should take place once a cost recovery regime has been implemented. Adequate management and monitoring is an important part of giving effect to the principles, in particular, the principle of transparency.

6.1  Implementation issues

Charging entities are responsible for implementing their cost recovered activities. The specifics of what this will involve will depend on the entity and the nature of the activity. Here is a list of issues that should be considered when developing an implementation plan:

  • Timing and planning. When should the charging commence? How does the time of the charge work in relation to other charges by government? Should payments be made up-front or in arrears, instalments or one-off? When should a review be scheduled? Do staff have the right mix of skills to implement the cost recovery? Do any specialist skills or equipment need to be procured? Do changes need to be made to legislation?
  • Checking in with the policy intent. Does the detailed design of the implementation meet the outcomes that are intended to be generated by the outputs?
  • Governance and management. How will the implementation project be governed? How will the cost recovery be governed once it has been implemented? What is the management structure that will be in place?
  • Performance and reporting. What are the performance and reporting measures that will be put in place? Implementation is expected to put in place performance and reporting measures, so that:
    • outputs can be measured against forecasts
    • costs can be appropriately reviewed at reasonable intervals, and
    • the CRIS can be regularly updated.

Engaging in consultation and project management disciplines will go a long way in identifying potential implementation issues. Efforts should be made to ensure that consultation with stakeholders is ongoing.

Example: Timing of charges

Car registration fees contain a few components, such as vehicle licencing fees, and risk-related ACC levies. Although these fees are for different and distinct purposes, they are collected at the same time.
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