Auditor General's Assessment

of Performance Information

To the Commissioner of the Canada Customs and Revenue Agency
and to the Minister of National Revenue

Purpose and Scope

The Canada Customs and Revenue Agency A ct requires the Auditor General of Canada to assess the fairness and reliability of the performance information in the Agency's annual report with respect to the objectives established in its corporate business plan.

The corporate business plan and the performance information in the annual report are the responsibility of Agency management. My responsibility is to provide an assessment of the fairness and reliability of the performance information in the Agency's 2002-2003 Annual Report. To do so, I assessed the information against the criteria for fairness and reliability that were discussed with the Agency and that are described in Annex I. I conducted my assessment in accordance with the standards for assurance engagements established by the Canadian Institute of Chartered Accountants. The assessment included an analysis of the information and an examination on a test basis of the evidence supporting that information, to a review level of assurance. I did not assess or comment on the Agency's actual performance.

The Canada Customs and Revenue Agency has reported its performance in the first volume of its annual report. My assessment covers the performance information in that volume, excluding the letters from the Minister, the Chair, the Commissioner and the Chief Financial Officer and Assistant Commissioner. My assessment does not cover the financial statement volume or the additional information which resides on CCRA's Web site.

Conclusion

Based on my review, the performance information in the annual report provides a fair and reliable account, in most significant respects, of the Canada Customs and Revenue Agency's performance. The Agency continues to make noteworthy advancements in improving its report as compared to the prior year. Some areas for improvement remain, such as the reporting of more tangible, outcome-oriented results and the development of clearer performance expectations. The Agency recognizes this and has put in place processes to enable it to better report on its performance in the future.

Assessment

The following presents the key findings of my assessment, organized according to the criteria used by us to assess the fairness and reliability of performance reports. These findings apply to all of CCRA's five business lines.

1. Relevance

Improved framework and program context. This year the Agency streamlined its anticipated results, reducing them from 34 to 25. This reduced duplication and overlap in the report and improved the logical flow of some anticipated results. The Agency also explained the relative importance of its two strategic outcomes. As a result, the Agency has better clarified its performance story. In addition, a more detailed explanation of the risks and challenges faced by CCRA was provided, along with an indication of how CCRA deals with those risks and challenges.

Continued effort needed to ensure all reported results are tangible and important. An extensive number of results are currently reported by the Agency. It should work towards reducing some of those reported results by focusing on those results that are tangible and important, and clearly explaining their significance.

Continued progress in reporting outcome-oriented accomplishments, but more remains to be done. A noteworthy addition to the report this year has been the inclusion of measures of employer filing and remittance compliance. The addition of these measures helps to improve the reader's understanding of some key compliance issues. As CCRA continues its efforts to enhance its performance information, it needs to ensure that the focus is on reporting outcome-oriented accomplishments.

2. Meaningful

Performance expectations need to be clear, concrete, complete and consistent. The Agency needs to continue to work towards establishing clear and concrete performance expectations (previously called success criteria). As well, the performance expectations established should address all elements of each anticipated result. This is not always the case, for example, for Tax Services Anticipated Result 1, performance expectations have yet to be developed for the reliability of service to taxpayers. It is important that the reader be able to easily compare actual performance to planned performance. The performance expectations in the report should be the same as those in the corporate business plan, or any inconsistencies explained. I recognize that this will take time to fully achieve.

More comparisons with other programs or organizations would enhance results. CCRA made a step forward this year in comparing the extent of non-compliance in Canada to levels experienced in other OECD countries, but more needs to be done. The Agency has indicated that it is continuing to explore other opportunities for comparison.

3. Attributable

A focus on the Agency's contribution. The report presents the numerous partners that work with CCRA in achieving shared outcomes and many of the factors influencing the achievement of a particular outcome. As a step forward this year, the report makes fuller disclosure of the extent to which source deductions by employers contribute to taxpayer compliance. I encourage the Agency to continue to make progress in clarifying its contribution and that of its partners with respect to the reported results.

4. Accurate

There is reasonable accuracy. The performance information was supported by appropriate corroborative data sources and other evidence, to a review level of assurance. Similar to last year, my assessment did not include a review of the “Spending Profile” section of each business line nor management's estimate of resources allocated to the compliance continuum. CCRA's current systems limit its ability to provide comprehensive costing information by business line.

When the quality or quantity of the information available to management in support of the performance story is deficient, the report adequately acknowledges this fact. Management has again this year, committed to further improve the quantity and quality of available data.

5. Balanced

The Agency continues to present a balanced report overall. All aspects of the Agency's mandate are included in the report. The Agency has described problems and challenges it has faced, and has discussed situations where performance has not met objectives. The report highlights strong and weak performance, and discusses steps being taken or planned to improve performance.

Sheila Fraser, FCA
Auditor General of Canada

Ottawa, Canada
20 October 2003

Annex I

Criteria for the Assessment of Fairness and Reliability
Office of the Auditor General

The following criteria were developed to assess the fairness and reliability of the information about the Agency's performance with respect to the objectives in its corporate business plan. Two major concerns were addressed: Has the Agency reported on its performance with respect to its objectives? Is that information fair and reliable? Performance information with respect to objectives is fair and reliable if it enables Parliament and the public to judge how well the entity or program in question is performing against the objectives it set out to accomplish.

Relevant

The performance information reports in context, tangible and important accomplishments against objectives and costs.

Meaningful

The performance information tells a clear performance story, describing expectations and benchmarks against which performance is compared.

Attributable

The performance information demonstrates, in a reasonable fashion, why the program has made a difference.

Accurate

The performance information adequately reflects the facts, to an appropriate level of accuracy.

Balanced

A representative yet clear picture of the full range of performance is presented, which does not mislead the reader.

More information on the criteria is available on our Web site at www.oag-bvg.gc.ca .

Date modified:

2003-10-29