Benefit Programs and Other Services

Expected Outcome

Performance Summary – We have mostly met this Anticipated Result, as demonstrated by the following performance against expectations:

• met internal performance standards for accurate processing of CCTB applications and account maintenance adjustments
• mostly met goal of maintaining high overall compliance in relation to our 95% benchmark
• however, we need to develop additional criteria to measure compliance

We sustained a high standard of issuing benefit payments accurately in 2002-2003, based on the information contained in our benefit records at processing time. Our most recent study showed that, when processing new applications for benefits, an estimated 99% of CCTB payments and 94% of notices were accurate. For GST/HST credits and account maintenance workload, studies showed that payments and notices were accurate an estimated 99% of the time. This is an increase in payment accuracy from 98% in 2001-2002.

To ensure that entitled clients get the proper amount—no more and no less—we devoted significant resources to our validation and controls program. Refining our criteria for selecting accounts contributed to a second consecutive increase in validation adjustments and adjustment rates, which rose to 34.1% among selected accounts in 2002-2003.

The study of CCTB clients for 2000-2001 selected in a random sample, which we reported last year, was re-evaluated using updated techniques. It indicated that our benefit rolls had complete and accurate payment and account information for over 94% of clients, compared to our overall compliance benchmark of 95%. During the year, we developed a new validation case management application—piloted in April 2003—that will track and measure our results better, for instance, by providing the dollar value of adjustments. Full implementation is scheduled for the fall. We also expect to make a validation service standard public by the end of the fiscal year.

3-1 Number of Cases Reviewed – Number and Percentage of Adjustments

Accumulated debt from CCTB overpayments since the beginning of the program in 1993 increased by $29 million (0.37% of the $7.9 billion issued during 2002-2003) to $176 million (net of write-offs). Overpayments occur when, for example, the CCTB is paid to clients who delayed telling us that they no longer have children in their care, or through our validation efforts. Overpayments can be difficult to collect, as the largest CCTB payments are directed to low-income families. This year's $29 million increase compares to an increase of $31 million in 2001-2002 (0.41% of program payments made that year), which indicates that we may have stabilized the growth in CCTB overpayment debt.

We issued 106,000 letters in 2001-2002 to clients whose disability tax credit claims were accepted before 1996, when the CCRA began administering the program. After review, approximately 63,000 clients continued to meet current eligibility requirements. This process has brought the overwhelming majority of old claims up to date. Enhancements made to our systems and our data warehouse tools during the year will also help increase our ability to validate claims and monitor program performance.

Date modified:

2003-10-29