Agency status gives us the flexibility to move beyond delivering existing programs to developing value-added partnerships with other levels of government and other public sector organizations. We are eliminating apparent duplication across different levels of government, and leveraging our systems to provide new services for Canadians at lower costs. Canadians have clearly indicated they prefer "single window" access, whether in person, by phone, by mail, or on-line, to the fullest possible range of public services and programs. Meeting this expectation is the challenge we share with our colleagues in other federal departments, and with our counterparts in the provinces, territories, and municipalities. It is a challenge that we can only address through partnerships, and we are steadily making progress. In 2001-2002 we continued to build new service delivery arrangements with our partners, which from our clients' perspective means simpler, more convenient access to quality services. The following table summarizes the wide range of tax, customs, benefits, appeals and other programs and services that the CCRA delivers on behalf of the provinces and territories.

A key accomplishment for the 2001 tax year was that all provinces and territories, except Quebec, participated in Tax on Income (TONI), which allows participating provinces and territories to set their own tax brackets and rates. This fundamental change to the Canadian income tax process will enable the provinces and territories to implement tailored, fiscal policies within the context of federal/provincial tax agreements. We are also exploring the development of other initiatives for enhancing relations with the provinces and territories, such as developing an enhanced focus on income allocation audits, ensuring provincial input to audit coverage plans, and conducting performance measurement surveys.

We administer 17 ongoing social benefit related programs for the provinces and territories, thereby reducing government duplication, supporting important social objectives for Canadians, and making the best use of our program delivery infrastructure and expertise. We have Services Management Frameworks with seven provinces and one territory that guide us in our consultations on program delivery and performance, as well as change initiatives such as Future Directions. To more directly support provincial and territorial administration of social assistance by ensuring timely and accurate payments to those in need, we implemented the Benefit Data Sync Link project to provide on-time Internet linkage. We have strengthened our accountability to the provinces and territories by producing annual reports and holding annual meetings with their finance ministers regarding program administration. We are also developing a cost model that can more precisely determine the cost of the services we provide.

We have concluded partnership arrangements with respect to the administration of sales tax and income tax with a number of First Nations. For example, we now manage a sales tax on behalf of eight First Nations that covers alcohol, fuel, and tobacco. We also administer a First Nations income tax on behalf of seven self-governing Yukon First Nations. This arrangement can serve as a model for future income tax sharing arrangements with other First Nations.

We continue to collaborate closely with key OGD partners in the effective implementation of government policies that support Canadians' security, business, health and safety, immigration policy, and the distribution of economic and social benefits to Canadians. This year, there has been a high emphasis on security and the development of related legislation following the events of September 11. As examples of results of these working arrangements, we:

• implemented the Air Travellers Security Charge (Department of Finance);

• developed the Charities Registration (Security Information) Act (Department of the Solicitor General); and

• are developing the new Proceeds of Crime (Money Laundering and the Terrorist Financing Act), which is expected to come into force in September 2002 (Department of Finance).

We have also been working with Human Resources Development Canada (HRDC) to find better ways to ensure that all potential recipients are made aware of benefits under the Old Age Security (OAS) and Guaranteed Income Supplement (GIS) programs.

Our collaborative approach extends to our tax and customs colleagues in other countries. Since September 11, we have been extremely active in working with our U.S. colleagues in attempting to ensure people and goods move securely and quickly across the Canada/U.S. border. This collaboration will increase, as the CCRA plays an important role in implementing the Canada-U.S. Smart Border Declaration's 30-Point Action Plan.