Army Corps of Engineers: Actions Needed to Better Align Management of Real Estate Administrative Fees with Key Practices

What GAO Found

The U.S. Army Corps of Engineers (Corps) charges real estate administrative fees (administrative fees) to public and private entities that are issued leases, licenses, or easements to use Corps-managed property. These uses may include privately operated marinas on lakes and power lines crossing canals or rivers. The administrative fees cover expenses incurred by the Corps related to, for example, approving and overseeing these uses. Most of the work of managing administrative fees is handled by the Corps' division and district offices.

In reviewing division and district practices for managing administrative fees, GAO found that the Corps does not consistently follow key practices for user fees, as described below:

• The Corps uses inconsistent inputs to set fees. Selected districts generally set administrative fees by estimating the costs the Corps incurs using activity, time, and labor inputs. However, the specific inputs used to estimate costs differed across districts. For example, two selected districts include the cost of compliance inspections while the other four do not, which may result in disparate fees across districts for similar real estate transactions.
• The Corps does not regularly review and update fees. Almost none of the selected divisions and districts regularly reviewed and, as appropriate, updated administrative fees. Officials from one district noted that as a result, its fee amounts have not kept up with increases to its costs.
• The Corps does not consistently share information with the public. Less than half of the selected divisions and districts posted administrative fee information—including the amount of the fees—on their websites.

In most cases, GAO found that the Corps' agencywide policies for administrative fees lacked detail or direction to divisions and districts on how to set, review, and share information on administrative fees. By developing policies that better align with key considerations and practices, the Corps could improve the perceived equity and transparency of its administrative fees. For example, by regularly reviewing its fees, the Corps could better ensure it recovers its costs and does not significantly overcharge or undercharge payers. In addition, by sharing information on the fees on its websites, the Corps could make the purpose and amount of the fees transparent to the public.

Why GAO Did This Study

This testimony summarizes the information contained in GAO's December 2023 report, entitled Army Corps of Engineers: Better Alignment with Key Practices Would Improve Management of Real Estate Administrative Fees (GAO-24-106188).