Financial Management Manual - Chapter 11.1. - Remissions under the Service Fees Act

Policy amended: 2022-09-28

1. Policy

   1. This policy is issued in accordance with the authorities indicated in Service Fees Act, section 7.
   2. This policy applies to clients who pay a fee to the RCMP for services, the use of facilities, or the granting of rights or privileges, where the application is received on or after 2021-04-01. Such fees are subject to the requirements of Service Fees Act, section 7.
   3. As outlined in Service Fees Act, subsection 3(2), this policy does not apply in situations where:
      1. the fee is fixed by contract;
      2. the person or body that fixes the fee does so by fixing a manner for determining the amount of the fee over which that person or body has no control, such as an auction or referring to a market rate;
      3. the fee is fixed under the Access to Information Act or the Privacy Act; or
      4. the fee is paid only by or on behalf of a minister or federal entity.
   4. In accordance with Service Fees Act, subsection 22(1), this policy does not apply to low-materiality fees as defined in Low-materiality Fees Regulations, sections 2 and 3.
   5. This policy is to be read in conjunction with the Treasury Board's Directive on Charging and Special Financial Authorities, sections 4.2.4. and 6.2.2.

2. Definitions

   1. Fee means an amount (also referred to as a charge or a levy) that, in relation to a federal entity, is fixed by the governor in council, the Treasury Board, a minister, or the federal entity under a power granted by an act of Parliament or a capacity to contract and is payable for:
      1. the provision of a service;
      2. the provision of the use of a facility;
      3. the granting (by means of a licence, permit, or other authorization) of rights or privileges;
      4. the provision of a product; or
      5. the recovery, in whole or in part, of costs that are incurred in relation to a regulatory scheme.
   2. Fiscal year means the period beginning on April 1 in one year and ending on March 31 in the following year.
   3. Normal circumstances means the expected level of supply and demand for regular day-to-day service operations. This differs from exceptional circumstances (refer to sec. 4.3.2.2.), where regular service standards may not apply.
   4. Reasonable attempts to remit means that the responsible authority has made their best efforts to obtain all the information required from the fee payer to issue a remission within the prescribed time frame.
   5. Remission means the reimbursement to a fee payer of a fee or portion of a fee paid for services, the use of facilities, or the granting of rights or privileges for which the RCMP determines that the service standard was not met.
   6. Service standard, also referred to as a performance standard, means a public commitment to a measurable level of performance that fee payers can expect under normal circumstances.

3. General

   1. The Service Fees Act aims to strengthen the transparency and accountability of service fees management. A key element of the Service Fees Act is the introduction of remissions (refer to sec. 2.5. for the definition of a remission).
   2. This policy is to be used by RCMP programs to determine if a remission is warranted when a service standard was not met for a fee that is subject to the Service Fees Act.
   3. Refer to the relevant program's subordinate policy for that program's service standard and remission calculation method.

4. Eligibility

   1. Effective 2021-04-01, if it is determined that the service standard in relation to a fee has not been met, the fee payer will receive a remission under Service Fees Act, section 7 before July 1 of the following fiscal year, except in the situations outlined in sec. 4.3. to 4.3.2.2.
      1. Whether a service standard is met is evaluated on an individual basis.
   2. It is the fee payer's responsibility to ensure that all requirements related to the service requested and the payment of the fee for the service are satisfied. These requirements include, but are not limited to:
      1. the submission of a complete application (for example, with up-to-date contact and financial information) within the prescribed time frame;
      2. the provision of additional information required for application processing; and
      3. the submission of the correct fee amount.

         Note

         Service standard calculation only begins once all information and requirements are received by the RCMP.

   3. A fee payer is not eligible for a remission if a service standard was not met for one of the following reasons:
      1. the fee payer did not meet requirements related to the service requested, or
         1. If any action within the fee payer's control results in the RCMP's not meeting the service standard, the fee payer is not eligible for a remission.

            Examples

            1. The fee payer decides not to comply with the requirements of the service requested.
            2. The fee payer neglects (inadvertently or otherwise) to provide complete and accurate information.
      2. exceptional circumstances arose.
         1. If it is determined that the service standard related to a paid fee is not met primarily due to exceptional circumstances, the fee payer is not eligible for a remission.
         2. Exceptional circumstances are circumstances outside the RCMP's control.

            Examples

            1. unforeseen system disruptions or failures,
            2. natural disasters,
            3. emergency situations,
            4. unforeseen office closures,
            5. labour disruptions,
            6. third-party or service provider service interruptions or delays,
            7. requirements for security investigations,
            8. major legislative or policy changes enacted by foreign governments, or
            9. any other similar circumstances.

5. Considerations

   1. The following factors are to be considered when determining whether a remission is warranted:
      1. the proportion by which the standard is not met, and
         1. Service standards are to be measurable and tracked to determine the proportion by which they were not met.
      2. the impact on the fee payer of the standard not being met.
         1. Impacts on fee payers may include, but are not limited to, lost income, a delay in being able to benefit from a service or right, or a delay in being able to benefit from a status. The impact may vary for different fee payers (for example, industries, subject-matter experts, or individuals) for a similar service.
   2. The following aspects are to be considered when determining remission amounts:
      1. the portion of a fee to be remitted, which is to be proportional to the degree that the service standard was not met. Remissions can be calculated using a scaled approach (refer to the relevant program's subordinate policy). Even if the service standard was not met, consideration should be given to the fact that costs were incurred and something was delivered;
      2. whether the rounded amount of a remission still meets the requirements of this policy (that is, the rounded amount is proportional to the degree that the service standard was not met, considers the impact on the fee payer, and so on); and
      3. whether the rounding of the remission amount is explicitly, clearly, and transparently indicated to fee payers.

6. Remission issuance

   1. Remissions are issued to a fee payer in the form of a refund, a credit, or a waiver, or in another manner acceptable to the RCMP.
   2. Remissions are taken from the RCMP's appropriations.
   3. Remissions are to be issued before July 1 of the following fiscal year to remain compliant with the Service Fees Act.
   4. Remissions are initiated by the RCMP. Fee payers do not need to apply for them.
   5. RCMP programs are to make reasonable attempts to remit the appropriate portion of the fee to the fee payer, subject to the availability of up-to-date fee payer information.

      Note

      If the RCMP cannot issue a remission because of circumstances beyond its control, it will keep a record of attempts.

   6. Remissions are issued in Canadian dollars within Canada. For fees paid in foreign currency by fee payers abroad, the remission amount is converted to local currency in accordance with the rate in effect at the date the remission is issued.
   7. Interest is not paid for remissions made under Service Fees Act, section 7.

7. Roles and responsibilities

   1. Senior manager of a fee-charging program
      1. Establish service standards for fees charged for services, the use of a facility, and the granting of rights and privileges in accordance with relevant Treasury Board policies and directives, including the Policy on Service and Digital, the Directive on Service and Digital, and the Cabinet Directive on Regulation.
      2. Ensure that service standards are meaningful and measurable.
      3. Create, maintain, and manage a repository of fees subject to this policy.
      4. Establish and implement a subordinate policy for granting remissions for fees subject to this policy. The subordinate policy is to comply with all requirements of this policy and is to include:
         1. remission applicability,
         2. service standards related to the fee charged,
         3. how performance against service standards is tracked,
         4. the approach or methodology in which the portion of the fee to be remitted is proportional to the degree by which the service standard was not met,
         5. how fee payers' information is retained,
         6. how fee payers are contacted, and
         7. how and when remissions will be issued.
      5. Ensure that the subordinate policy is made available to the public.
      6. Establish and implement processes for tracking and monitoring the charging of fees, compliance with service standards, and remissions, where applicable.
      7. Ensure that the determination of whether a service standard is not met and whether the fee payer is entitled to a remission is made on an individual basis.
      8. Provide a mechanism for fee payers to make comments about the RCMP's fees, service standards, and remissions.
      9. Ensure that corrective actions are taken to address non-compliance with the subordinate policy.
   2. Chief financial officer
      1. Implement, monitor compliance with, and review this policy.
      2. Provide advice on the interpretation and application of this policy.
      3. Ensure that this policy is made available to the public.