Benefit Programs and Other Services

Expected Result - Non-compliance is identified and addressed

We attempt to ensure that clients receive the amount to which they are entitled through the activities of our validation and controls program. Our validation projects target accounts that have been identified as high-risk--for example, because of inconsistencies we note in reported marital status or other information in our records. We reviewed over 211,700 accounts in 2004-2005, with a validation adjustment rate for these selected accounts of 57.2% (see Figure 28). This adjustment rate suggests that we have effective criteria for selecting accounts for review.

Figure 28 Number of Cases Reviewed - Number and Percentage of Adjustments

We informed 98.2% of clients about the results of our reviews within 60 days, exceeding our new timeliness service standard of 90%. ¹

We are as yet unable to provide the total dollar value for the adjustments we perform. We had anticipated that this new facility would be fully functional in 2004-2005, but implementation will not be completed until 2005-2006.

Maintain high overall compliance in relation to our 95% benchmark

In contrast to our validation projects, we also conduct an annual random sample of accounts to measure overall benefits compliance. We estimate that approximately 93.2% of CCTB accounts for 2002-2003 (the benefit year of our most recent study) had complete and accurate payment and account information (see Figure 29). ² This figure falls short of our 95% benchmark, an indication that overall compliance declined somewhat from results recorded in previous years. We are developing a new compliance strategy to ensure the overall integrity of our records.

Figure 29 Percentage of Clients Receiving Proper Entitlement, Based on Random Sample

For the third consecutive year, the growth in net CCTB overpayment debt has been reduced. Overpayments are established, for example, when the CCTB has been paid to clients who belatedly report that they no longer have children in their care, or when our validation efforts uncover such a situation. Net CCTB overpayments were $8.1 million in 2004-2005, representing 0.09% of approximately $8.7 billion issued during the year (see Figure 30). This represents a significant improvement over previous years. It is largely attributable to a $13.7 million increase in the value of T1 refunds used to offset CCTB overpayment debt. The net overpayments are also well under the new ceiling of 0.4% that we have established for 2005-2006 to demonstrate proper payment control.

Figure 30 CCTB Overpayment Debt as a Percentage of Current Year Payments (and Associated Dollar Amounts)

Accumulated debt from CCTB overpayments since the beginning of the program in 1993 stands at almost $207.4 million (net of write-offs). This represents 0.27% of the $78.2 billion in payments made under the program.

¹ Internal CRA Quality Assurance Study, Activity Types 300/671 (Validation and Controls) - Processing Timeframes, January 17-28, 2005.

² Compliance Levels Exhibited by Recipients of Canada Child Tax Benefits - Final Results (April 7, 2005--target population as of November 2002).

Date modified:

2005-10-26