CRA Annual Report to Parliament 2009-2010 - Achieving Our Benefit Programs Strategic Outcome

Disclaimer

We do not guarantee the accuracy of this copy of the CRA website.

Scraped Page Content

Achieving Our Benefit Programs Strategic Outcome

Strategic Results

Income security is essential to the economic and social well-being of Canadians. As administrators of benefit and credit programs for federal, provincial, and territorial clients, we must ensure that we correctly determine eligibility for these programs and that payments are made on time. Our activities during 2009-2010 were undertaken to provide reliable support to Canadians during this difficult economic period and to bolster our ability to provide effective programs for years to come.


Strategic Outcome

Eligible families and individuals receive timely and correct benefit payments.

Our Assessment

Met

Our goal

In 2009-2010, our goal was to enable application and registration and ensure accurate payments and reliable delivery on behalf of benefit and credit programs, as well as other services that we administer. Also, we encouraged business growth and partnership, increasing our contribution to efficient government.

Our outcome

In 2009-2010, we met our targets in most cases. Our results show that we continued to provide reliable and accurate benefit services and programs while successfully introducing new initiatives and updating ongoing programs.

Our challenge

Our challenge is ensuring that all benefit recipients have and use the tools and information they need so they can receive their proper entitlements.

Spending Profile


(in thousands of $)
Total Authorities 2009-2010
$342,634
Actual Spending 2009-2010
$342,440
Variance
$194

Eligible families and individuals receive timely and correct benefit payments

The CRA has a vital role to play in supporting families and individuals across Canada. We help millions of Canadians by administering a range of ongoing and one-time programs on behalf of federal, provincial, and territorial governments. Our legislation and the adaptability of our systems enable us to use our federal infrastructure to accurately calculate and efficiently deliver benefits and credits. Legislation also enables us to provide information, in specific instances, to support the programs that government clients themselves administer. By ensuring that benefit recipients have access to timely and accurate information, we help them receive their proper entitlements. By working as a single delivery service on behalf of several levels of government, we reduce duplication and the overall cost of administering benefit programs.


Our programs have a real impact on the quality of life we all enjoy as Canadians.
Linda Lizotte-MacPherson
Commissioner and
Chief Executive Officer

We are very aware of the importance that Canadians place on fairness and transparency in all interactions with the federal government. We respond to Canadians’ expectations by taking steps to ensure that only eligible individuals receive benefits and that their entitlements are correct. This protects benefit and credit recipients from undue hardship that could be caused by underpayments or overpayments.

Our focus

When individuals provide timely and accurate information, and that information is processed by reliable systems, individuals receive timely and correct benefit payments. During 2009-2010, we focused on initiatives that provide benefit recipients with timely and accurate information, services, and easy access to benefit and credit programs. We did this to encourage individuals to apply or register for the programs they are eligible for. We followed up with consistent review and validation of information to ensure that we issue correct payments. By contacting recipients to confirm information, we encourage individuals to meet their obligations.

Reliable benefit and credit delivery depends on a number of systems. Our individual identification system is a core data source used across the CRA. Our individual credit determination system determines entitlement to benefit and credit payments and also provides information, where authorized by law, that supports other governments in delivering their own programs. To ensure that we deliver reliable benefit and credit programs now and for years to come, we have further invested in our system infrastructure.


In 2009-2010, we issued more than 88.5 million payments on time to over 11.4 million individuals and families, totalling more than $17.6 billion, on behalf of federal, provincial, and territorial governments.

Strengthening service

Service is a cornerstone of our delivery of benefits and credits to Canadians. We make clear and timely information available to make it easier for individuals to apply for their benefits and comply with legislation. We also provide several ways of applying and registering so that people find it easier to access benefit and credit programs. Benefits-related information products, tools, and services were enhanced during 2009-2010 to help Canadians better understand and access the programs available and to meet their obligations as recipients so that they could receive the payments they are entitled to on a timely basis.

The telephone has always been an important service channel for benefit recipients. Many people rely on the telephone as their main contact route for reasons such as availability and prompt access to information and services. Information that is exchanged over the telephone can be critical to timely account updates and accurate benefit and credit calculations. The number of Canada Child Tax Benefit (CCTB) and GST/HST credit callers able to reach us by telephone exceeded 90% for the second consecutive year. The increased level of service for benefit recipients was possible due to the additional resources directed into our telephone services since 2008.

We recognize that enrolment levels for some segments of the population could be improved. Groups such as persons with disabilities, First Nations, and new residents benefit from information products that are more specialized. In 2008, we developed the Communication Strategy for Benefit Programs. One of the gaps identified was in messages targeted to First Nations, particularly those in Nunavut. In 2009-2010, new communication tools were created to encourage eligible First Nations individuals and families to access these programs. We will use the results of our next program take-up study to help us measure the results of these new tools.

During 2009-2010, we launched the Automated Benefits Application (ABA) service. ABA allows parents to apply for child and family benefits when their child is born by ticking a box on their provincial or territorial birth registration forms. The provincial or territorial body that registers the birth sends the applicant’s registration information to the CRA over a secure communication network so that we can determine eligibility for benefits. Our ABA initiative was an important step to improved service by simplifying the process of applying for benefits. It was also an important addition to our compliance efforts because ABA uses data that comes directly from the provinces and territories, ensuring timely, valid, and accurate application information.


Priority: Eligible Canadians access the benefits and credits they are entitled to
Achievement: Our measurement of the time between the birth of a child and when the parent receives the first benefit payment shows that both our automated and our online application services get benefits issued faster than through paper applications.

By simplifying the benefit application process through ABA, we have reinforced our commitment to ensure that eligible Canadians can readily access the benefits and credits they are entitled to. We are measuring the response time for this new service to make sure that we are meeting our objectives. We are comparing ABA processing and payment time frames to both online and paper applications. The data to date shows that parents are receiving their first benefit payment faster with ABA. As we complete the first full year of measurement, we expect to gather consistent evidence indicating time savings as a result of this service.


Our Automated Benefits Application reduces the paperwork for new parents applying for the Canada Child Tax Benefit, Universal Child Care Benefit, and related provincial and territorial payments.

Benefits validation

Our validation work helps benefit recipients understand their legal rights and obligations and creates a credible enforcement presence to deter non-compliance. We are continuing to ensure the integrity of benefit and credit programs through strategic initiatives that focus on validation.

In 2009-2010, we contacted 212,017 recipients to confirm that their account information was accurate. The responses that we received enabled us to identify recipients who were overpaid as well as those who were underpaid. Our results indicate that our targeted reviews are successfully revealing areas of non-compliance.

Reinforcing trust

When Canadians trust the integrity of the CRA, it can positively influence their willingness to comply with legislation. This applies to both tax and benefit programs. When we measure and report each year on the accuracy and the timeliness of our payments, we are offering individuals and our government partners an indication of the reliability of our services. Our results during 2009-2010 show that we successfully met the targets that we set in most cases. A track record of consistency and dependability supports good relations and encourages benefit recipient co-operation.

A 2006 internal audit noted that our benefits quality review process varied across the country. We recognize that measurement methods must be the same nation-wide for results to be reliable. During 2008-2009, we implemented our Quality Review Strategy so we could standardize and improve our quality review process and ensure a consistent approach. By doing so, we improved our ability to measure processing accuracy and to detect and address administrative issues faster. Over the last year, we assessed the results of implementing the strategy and have scheduled another assessment in 2010-2011. The initial assessment identified best practices, developed recommendations for action, and pointed out issues to be analyzed and resolved by the CRA.

Maintaining effective relationships

When we administer programs and provide benefits and credits on behalf of client governments, we reduce the need for separate calculation and delivery systems at federal, provincial, and territorial levels. Building and maintaining effective relationships between the CRA and various client governments makes it easier for them to work with us and encourages them to use our delivery systems, as authorized by legislation, whenever possible. By working co-operatively, the overall cost of government is reduced.

During 2009-2010, we worked with Human Resources and Skills Development Canada on assessing whether the administration of the Universal Child Care Benefit is effective and efficient. Results of this review are expected during 2010-2011.

Our strategic outcome measures

Many of the indicators that we use to measure our progress toward our strategic outcomes focus on eligibility, timeliness, and accuracy. The indicators include:

  • how many eligible individuals apply for benefit programs;
  • whether payments are issued on time; and
  • how many recipients provide us with up-to-date and accurate information, enabling us to accurately calculate entitlements.

In addition, we gauge our progress as the provider of choice for benefit programs and services by volume of use. We consider this an indicator of the attractiveness of our program and service delivery infrastructure to federal, provincial, and territorial clients.


During 2009-2010, more than 3.1 million Canadian families with children under 18 received the Canada Child Tax Benefit.

Eligibility, timeliness, and accuracy

Benefit payments make up a substantial part of many Canadians’ income. These individuals and families rely on receiving payments on time to meet their household expenses. During 2009-2010, 99.7% of benefit payments were issued on time, demonstrating that recipients can rely on the delivery of their benefit and credit payments.

The correct calculation of benefits and credits relies on timely information from the recipient. It is the responsibility of each recipient to provide us with complete and accurate information to maintain their eligibility and receive the proper amount of benefits. The results of the most recent benefits measurement study indicated that 94.4% of CCTB recipients provided us with correct information and were therefore receiving their proper entitlements. This mostly meets our target of 95% and represents an improvement over the previous year’s result of 92.9%.


Our administration and delivery of timely and accurate benefits and credits affects the lives of many Canadians each year. In 2009-2010, we processed benefit and credit applications and marital status change forms on time98.8% of the time.

We consider our calculation of benefit payments to be correct when the net value of CCTB overpayments is low. Overpayments or underpayments are often due to changes that took place but are not indicated in a timely manner. Net CCTB overpayments increased by $11 million during 2009-2010, but represented only 0.1% of the $9.9 billion in CCTB payments issued during the year, well under our established target of less than 0.4%.

Our results in these areas tell us that, overall, we have been successful in meeting or surpassing our eligibility, timeliness, and accuracy targets in 2009-2010. These values tell recipients that they can depend on our providing accurate benefit and credit programs and services. Furthermore, our low level of overpayment and high level of compliance means that Canadians can be confident that we are administering programs and services with the high level of integrity that they expect from all areas of government.

Provider of choice for benefit programs and services

As we continue to add new programs and services, we continue to lower the overall cost to governments by reducing duplication. Our administration of the CCTB, which combines federal, provincial, and territorial benefits into a single payment, is just one area where our positive impact can be seen. One CCTB cheque, for example, can replace several separate payments if it includes the basic Child Tax Benefit, the National Child Benefit Supplement, the Child Disability Benefit, and one or more provincial or territorial elements.


We have enhanced our e-services and are providing more comprehensive and better integrated benefits and services that are simpler for citizens to use. This makes benefits and credits more accessible to eligible individuals and reduces processing delays.

In 2009-2010, preparations were made to deliver three new benefit programs as a result of Ontario and British Columbia’s decision to harmonize their sales tax. These are:

  • the Ontario Sales Tax Transition Benefit;
  • the Ontario Sales Tax Credit; and
  • the BC Harmonized Sales Tax Credit.


The number of programs and services administered by the CRA increased from 93 in 2008-2009 to 96 in 2009-2010 with the introduction of three new income verification programs related to Prince Edward Island student loans.

A great deal of the work for these three programs was completed during this period; however, the first payments were not issued until June and July 2010. Information about the delivery of these programs will be included in our next annual report.

Conclusion

An assessment of our results shows that, overall, we met our measurement targets. We consider this an indicator that our administration of benefit programs provided timely and correct payments to eligible families and individuals. Personnel who answer benefit enquiries lines ensured that callers received timely and accurate responses to their questions.

The fact that 99.7% of payments were issued on time shows that benefit recipients can rely on the CRA’s benefit and credit delivery system. In addition, our government clients benefited from reliable services, reduced administration costs, and CRA validation of account information.

These successes support the Government of Canada outcome of income security and employment for Canadians.

Our Benefit Programs Strategic Outcome Measures

Our Measure
Year
Performance Rating
Data
Quality
Eligible families and individuals receive timely and correct benefit payments.
2009-2010
Met
Good
2008-2009
Met
Good

Our Indicators
Current Target
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
Rating
Eligibility is established
Percentage of potential entitled recipients who receive the CCTB
95%
Not Applicable
Not Applicable
Not Applicable
94.9%
Not Applicable
Not Applicable
Payments are timely
Percentage of benefit recipients who receive payments on time
99%
99.9%
99.9%
99.9%
99.9%
99.7%
Met
Benefit payments are correct
Percentage of CCTB recipients who provide complete and accurate information and receive the proper entitlement
95%
95.1%
95.5%
95.5%
92.9%
94.4%
Mostly Met
CCTB overpayment debt as a percentage of payments issued
<0.4%
0.3%
0.2%
0.3%
0.4%
0.1%
Met
Provinces, territories, and federal departments rely on the CRA as a key service provider
Number of programs and services administered
Upward trend
67
72
77
93
96
Met
[Footnote 1] These percentages are only available for census years.



Date modified:
2010-11-02