228 



compensation generally consists of concessioners' repairs, 

 maintenance, improvements, or construction of government-owned 

 facilities--either in lieu of or in addition to paying a cash fee. 

 The Park Service has a detailed system for calculating cash fees, 

 but, to date, it has not determined what types of non-cash 

 compensation are appropriate and how they should be valued. In 

 addition, while such compensation results in needed improvements, 

 the Park Service does not have sufficient controls over the 

 doc\amentation of and accounting for this compensation to ensure 

 that the required work is adequately performed. The Park Service 

 is in the process of developing such controls. 



Forest Service Is Not Receiving Fair 

 Market Value From Ski Operators 



As you requested, Mr. Chairman, I would now like to briefly 

 comment on the fees paid by ski operators for the use of Forest 

 Service lands. You asked us to comment on these fees because one 

 of the bills before the Subcommittee would change the method used 

 to calculate ski fees. The Forest Service currently calculates the 

 ski fees using the Graduated Rate Fee System (GRFS) , which the 

 Forest Service developed in 1965. Under GRFS, fees are calculated 

 by applying a selected rate to gross sales in nine business 

 categories--restaurants and lodging, for example. The calculations 

 are further complicated because the fees are based on sales from 

 ski area operations not only on Forest Service lands but also on 

 private lands. When we last reported on ski fees,^ 143 permittees 

 had ski areas either entirely or partly on Forest Service lands. 

 Of these 143 permittees, 112 had their annual fees calculated under 

 GRFS. The gross sales of these 112 permittees amounted to about 

 $737 million. After making adjustments reflecting the revenues 

 generated from federal lands, the permittees paid $13.5 million in 



'' Forest Service: Little Assurance That Fair Market Value Fees Are 

 Collected From Ski Areas (GAO/RCED-93-107 , Apr. 16, 1993). 



