Discussing Our Performance by Anticipated Result

We assess our performance for the Benefit Programs and Other Services business line against three anticipated results as they relate to our two expected outcomes: Canadians receive their rightful share of entitlements, and provinces, territories, and other government departments rely on the CCRA as a key service provider.

Ratings are provided for each anticipated result. They show whether our performance met (green), mostly met (yellow), or did not meet (red) the results. We provide a separate rating on the quality of the information upon which we based the assessment. As with other business lines, we assess our performance against two themes: managing the compliance continuum and innovating for the future.

Highlights

Communications – We assess the effectiveness of our efforts to communicate information about benefit programs based on the level of client satisfaction, which we gauge through surveys and focus groups. Our communications strategies aim to increase visibility of the programs we administer, and ensure that individuals are aware of their entitlements and obligations. A communications plan is in place for both the CCTB and GST/HST credit programs.

Compared to the CCRA's Baseline Study in 2000, our 2001 study suggests that client satisfaction with our performance in delivering benefits remains high. Our survey-based estimates indicate that 75% of GST/HST credit clients and 78% of CCTB clients believe that we are doing a good or very good job administering these programs (consistent with our satisfaction rating in the prior year).

Our communications product with the widest distribution is the information insert included with notices mailed each July to over three million CCTB clients. The insert developed for July 2001, “Ten Things You Should Know About Your Canada Child Tax Benefit,” specifically addressed how important it is for recipients to notify the CCRA about address changes or changes in their family situation.

A second particularly important form of communication with our clients is the computer-generated notice we send each time a change in payment occurs. The notice explains the payment, identifies the benefit programs involved, and the reasons why the change was made. It gives the client a better understanding of what benefits are being paid and by whom, as a single payment often combines the federal benefit with a provincial or territorial one. It also gives clients an opportunity to correct their account information, and provides them with a means to pursue formal recourse should they disagree with the change. The effectiveness of these notices, and the system that produces them (the Verse Management System), was scrutinized in 2001-2002. The review included focus group testing (i.e., facilitated interviews, typically with six to ten individuals representing the client group) to assess the wording, readability, format, and effectiveness of this form of communication. The review, completed in May 2002, will be used to improve the effectiveness of our notices in 2002-2003.

We have also continued our use of client satisfaction surveys, completing one in August 2001 to follow up on our initial survey of June 2000. Results shown in Exhibit 36 below indicate year-over-year improvement in client satisfaction in all areas examined, with estimated approval rates improving to 93% for ease of understanding the application, 81% for the time taken to process the application and receive the first revised payment, and 90% for the information received in the application process.

Exhibit 36: Canada Child Tax Benefit First-Time Applicants
Survey August 2001 – Satisfaction Rates

Additional measures to improve communications in 2001-2002 included:

• re-writing form letters used in our validation processes to remind clients to contact the CCRA when they move, particularly to a new province or territory, or when their family situation changes;

• targeted mail-outs in March 2001 to remind more than 129,000 habitual late filers of their obligations and entitlements (this encouraged many of them to file their tax returns in time to allow us to use up-to-date income information for an additional 4,800 clients in our annual recalculation of benefits in July 2001);

• dissemination of CCTB and GST/HST credit information and distribution of pamphlets and applications through:

• local outreach and community volunteer programs;

• Citizenship and Immigration Canada at major ports of entry; and

• two new horizontal Government of Canada publications—Government of Canada Services for Children and their Families and Government of Canada Services for You—issued by Communications Canada; and

• products such as fact sheets, tax tips, Qs and As, FAQs, news releases, and Internet postings, developed as a result of the communications strategy or on an ad-hoc basis.

In addition to client awareness and satisfaction, another indicator of the effectiveness of our communications and outreach activities is the actual take-up rate in the programs we administer. We have previously reported that as many as 95% of entitled children born within sampled population areas were enrolled for the CCTB within one year of their date of birth, with an even higher take-up rate (over 98%) among low-income families who also receive the GST/HST credit. During 2001-2002 we launched an initiative to more closely measure take-up rates and, using client profiling techniques, provide a better understanding of why some families miss out on benefits. Once we have the results of this initiative, we will be able to better focus and target our communications activities to ensure that all Canadians are aware of all of the benefits to which they are entitled, under the programs we administer.

Telephone caller accessibility – In 2001-2002, our agents answered a total of 2.2 million CCTB telephone enquiries and 2.6 million GST/HST credit and refund enquiries. In addition, our automated systems responded to 1.9 million CCTB calls and 3.6 million GST/HST credit and refund enquiries.

Significant progress was made in improving access to these telephone services. In June 2001, we expanded our national 1-800 network for CCTB enquiries. As Exhibit 37 indicates, approximately 91% of all callers were able to reach the queue to speak to an agent about CCTB issues, a substantial improvement over the 68% we achieved in 2000-2001, and exceeding our internal caller accessibility performance standard of 80-85%. (Caller accessibility is the percentage of callers who, within a day, reach an agent or get into a queue to have their enquiry answered). This means that the majority of callers were able to reach the queue for service, but it does not imply that they were successful on their first attempt. We no longer monitor the number of attempts made by callers as a performance measure. We believe that this statistic has become less meaningful with the advent of new technologies, such as automatic redial services.

Similarly, clients calling our GST/HST credit and refund enquiries line had somewhat improved access to telephone service. On average, 71% of all callers were served, compared to 68% the previous year. However, despite this improvement, we are still below the internal performance standard of 80-85% established for this program. We are continuing to explore how to reach our internal performance standard for these calls.

Exhibit 37: Telephone Caller Accessibility

For CCTB telephone enquiries, Exhibit 38 shows that in a typical month, peaks in our daily call volumes occur on the day clients expect to receive their payments (in this example, on October 19th and 22nd and November 20th), as well as one week later (e.g. October 29th and November 26th) when tracing action for lost or misdirected payments can begin. Although caller accessibility generally declined during peak periods, it tended to remain within our target range of 80% to 85%.

Exhibit 38: Daily CCTB Call Volume – October 15 to November 30, 2001

A third measure of telephone accessibility is the time it takes to reach an agent from the queue. As Exhibit 39 shows, almost 65% of CCTB callers and 72% of GST/HST credit callers reached an agent within two minutes in 2001-2002, short of our internal performance standard of 80% within two minutes. This represents a decline from the previous year's figures of 73% and 78% respectively.

Exhibit 39: Telephone Accessibility – Calls Answered by an Agent Within Two Minutes

Reducing the need to call – Our client service strategy aims to reduce the need for clients to call in the first place, by focusing on improved and more cost-efficient communications and outreach activities. In 2001-2002, we successfully increased client utilization of our alternative service channels. Our Child and Family Benefits Web page was enhanced with application forms, pamphlets, and links to Web sites on related benefits. Another innovative self-help feature we added to the page this year is a simulator (SIMNET) that allows clients to estimate the amount of monthly benefits based on hypothetical personal information and data. The SIMNET tool provides detailed calculations for the CCTB and any provincial or territorial child benefit or credit, based on address and other data input. The tool has been well received, and a simulated GST/HST credit calculation was added in July 2002. Future plans include allowing clients to file applications on-line as well as to view and validate additional personal information. By promoting and enhancing the Child and Family Benefits Web page, we were successful in significantly increasing visits from 250,000 the previous year to 314,000 in 2001-2002. At the same time, we handled over 18% fewer calls on our CCTB and GST/HST credit enquiries lines (from 12.7 million to 10.3 million), which may be an indication that our alternative service channels are reducing our clients' need to call.

Program delivery – Successful delivery of all of our benefit programs requires that we make regular and dependable payments to foster trust and meet our clients' needs. Payments made during the past year were seamlessly adjusted for revised income calculations, changes to family circumstances, and legislated changes. For example, the National Child Benefit Supplement component of the CCTB was enriched, and indexation-related increases to the CCTB as a whole were implemented starting in July 2001. The BC Family Bonus, the Saskatchewan Child Benefit, and the Newfoundland and Labrador Child Benefit were all reconfigured for the same date. The Newfoundland and Labrador Seniors' Benefit was reconfigured for October 2001.

As discussed on page to under Anticipated Result 2, virtually all of our clients received their benefit payments with regularity and dependability and applications for benefits and client-requested adjustments were processed accurately.

We maintain client identification information in a database that contains over 30 million records and supports all CCRA programs for individuals. Our most significant new service launch—in February 2002—allowed clients to change their address on-line using a real-time, user-friendly, and secure application, in accordance with the new Treasury Board addressing standard. This pathfinder project under the Government On-Line initiative is the largest Internet application implemented by the CCRA to date. In order to meet the scheduled implementation date, a bridging solution for client authentication was implemented until the secure channel using PKI (Public Key Infrastructure) that is being developed for government-wide application is available.

In July 2001, we also delivered the first of a two-phase initiative that will redesign the GST/HST credit program. Such steps, including standardizing the payment issuance date to the first Friday of each quarter and inhibiting payments to prisoners, provide some of the foundation for delivering the second phase in July 2002. Once fully implemented, the revised system will be fairer and more responsive to changes in family circumstances which occur during the benefit year. It will also provide stronger controls for benefits paid for children, improve payment accuracy, and align with the Canada Child Tax Benefit program where appropriate.

Highlights

Accuracy – In 2001-2002, several quality assurance projects measured our ability to deliver accurate benefit payments. All suggest we achieved good results. A national review showed an estimated 98% accuracy for our payments and the notices we issue when processing applications for benefits. These results meet our internal performance standards. Another three measurement projects showed that our estimated accuracy rates for account maintenance remained stable (95%, compared to 94% last year).

Substantial work was undertaken to ensure accuracy in all the provincial, territorial, and federal programs that we administer. Specifically, the work focused on the:

• amount of the benefit involved, and any adjustment to the payment caused by changes in family income or family situation, or system changes to implement legislated enrichment of the underlying benefit;

• content of computer-generated notices; and

• validity of eligibility information supporting the claim or the application.

Along with these quality assurance projects, our Systems Performance Group monitors affected programs every time we update our systems (i.e., following each systems release) and arranges monthly reviews of a random sample of payments and notices. As mentioned earlier, in 2001-2002 we also implemented a comprehensive quality review of the Verse Management System and the automated notices it produces.

To enhance our level of quality assurance, we have devoted significant resources to program validations through the use of a data warehouse and data marts. To support payment accuracy, we:

• carry out validation activities to distinguish high-risk clients from those who voluntarily comply;

• adjust individual accounts, where warranted;

• measure rates of non-compliance using statistical samples; and

• correct overpayments and underpayments.

Statistically valid random samples of clients on a national basis suggest that the vast majority (approximately 95%) of our CCTB clients have been fully compliant in recent years. To promote compliance and ensure that correct entitlements are paid, our validation program encompasses three distinct areas of work:

• general validations to reconfirm that all of the information on a client's account is correct;

• targeted validations to address high-risk situations or claims arising from contradictory information contained in our records; and

• special projects to validate a suspected area of non-compliance and to support efforts to better target non-compliant clients using profiling techniques and predictive modelling.

Although our Validation and Controls group is still relatively new, we have established a stable workforce in all areas of the country. In 2001-2002, we placed greater emphasis on targeted validations and increased the total number of accounts we reviewed. In total, we performed 168,600 reviews (18% more than our target), compared to 156,600 in 2000-2001. As Exhibit 40 indicates, the percentage of reviews resulting in either a change to client account information or the amount of benefits we pay increased to 31% from 19% the previous year. Our efforts to improve our targeting of higher-risk accounts are ongoing, and we are continuing our work to develop appropriate benchmarks against which to assess our performance.

Exhibit 40: Number of Cases Reviewed, Number and Percentage of Adjustments

The Benefit Programs Decision Support System (BPDSS) has been developed to enhance our validation programs by identifying problem areas, determining trends, and targeting areas that need more review (e.g., marital status—the basis for determining family income). As part of the BPDSS, we continue to develop a data warehouse environment that will strengthen our capacity to focus our resources on areas of greatest risk. Data marts improve our spousal account-matching program, support better business decisions, generate performance results, and supply information to the provinces and territories—often to help analyze opportunities for new CCRA business.

BPDSS is the main source for validation workloads, particularly in targeting high-risk situations. It also facilitates ad hoc queries for a variety of child and tax information, and improves the accuracy of program data.

Disability tax credit – The disability tax credit (DTC) is a very complex, sensitive program that requires a high level of accuracy and consistency. We review all claims before approval (and have done so since 1996) and deny an average of 15% of claims. An aging population and recent program enhancements have increased the number of claims. Some restructuring of the system and the new data mart have helped protect the revenues involved, while maintaining a high level of service to persons with disabilities.

During 2001-2002, we initiated a review of all claims accepted between 1985 and 1996. During that time, very few claims were subject to the current level of review. Instead, claims were accepted upon filing, and only a small percentage were later reviewed. Given the significant rejection rate since 1996 for claims subject to review before approval, claims filed between 1985 and 1996 are now being reviewed to ensure that benefits are going to the intended recipients. This is especially important since, under the DTC program, a one-time review can lead to a lifetime benefit. To that end, the CCRA sent letters in the fall of 2001 to approximately 106,000 clients whose eligibility was not clear, based on the information we have on file. The objective is to ensure these individuals still meet the eligibility criteria for 2001 and future years. There will be no reassessment of previously allowed claims.

CCTB debt – To prevent the potential hardship of an interruption of benefits, the first CCTB payment of each new benefit year in July is made to clients who file late, but who are expected, based on historical information from prior-year returns, to remain entitled. Sometimes, this practice results in a CCTB overpayment. CCTB overpayments also result when clients advise us after the fact of changes in their eligibility that result in reduced payments (for example, changes in child custody, marital status, etc.), or because of increases in the number of adjustments from the T1 Matching Program. We may also find out about overpayments through our validation and controls program.

The overall level of the overpayment debt is at $147 million, which represents about 1.9% of the total annual CCTB payments. This reflects a significant increase over 2000-2001, when the level of debt amounted to about $116 million, or 1.7% of payments. As this is a substantial amount of debt, we are continuing active debt control measures, including automatically offsetting CCTB debts against T1 refunds and other credits.

Timeliness of payments – In 2001-2002, we continued our strong performance, issuing over 99% of 34 million CCTB payments and 33 million GST/HST credit payments on time. This demonstrates that the vast majority of Canadians can depend on us for timely payments. Based on a national review, our service standard for processing CCTB applications for benefits and (in most cases) issuing the first new payment for a client was met within established timeframes an estimated 97% of the time—just short of our target of 98%. Because almost all of the provincial and territorial child benefits and credits we administer are linked to the CCTB system and are integrated with the CCTB into a single payment, we are confident that these are also paid in the same timely manner.

Account maintenance – Our internal performance standard for the CCTB, provincial/territorial programs, and the GST/HST credit is to answer 98% of the correspondence we receive from clients to correct account information, and complete the processing of adjustments initiated by our system, within 20 days. Where the activity on the account as a result of an enquiry requires that a notice be issued, our internal performance standard is to issue the client a notice within two months. Results for 2001-2002 from three separate measurement projects generated an estimated timeliness rate of 80%. While we did not meet our internal standard, performance has improved from an estimated timeliness rate of 76% in 2000-2001, and 57% in 1999-2000. The timeliness of account maintenance will become a service standard in 2002-2003, providing additional impetus to improve our performance.

Other services – We collect CPP/EI premiums and work to provide Canadians with fair, impartial, and reliable rulings and related information on the CPP and EI programs on behalf of Human Resources Development Canada (HRDC). For example, in 2001-2002, we ensured that earnings of $378 billion and CPP contributions of $10 billion were posted correctly to the record of earnings file held in HRDC.

In total, the CCRA responded to over 73,000 requests for rulings last year. Rulings are an important service and are part of the way we help ensure all Canadians are treated fairly under these social benefit programs. This service also provides the public with better program information, which in turn fosters voluntary compliance with CPP and EI legislation. Under our Memorandum of Understanding (MOU) with HRDC, we are committed to processing 85% of HRDC's approximately 27,500 annual requests for rulings within 15 days in cases where a claim is pending, and in 31 days in cases where no claim is pending. As Exhibit 41 indicates, we largely met our completion rates for 2001-2002, processing 84% of referrals where claims are pending and 87% of referrals where no claims are pending within these timeframes (for a completion rate on HRDC-related requests of 86%). We are currently working with HRDC to develop an electronic link between our operations to speed up the processing of rulings requests even further.

While the MOU with HRDC includes commitments on the timeframes for processing HRDC ruling requests, it does not set any targets for processing requests received from the public. Neither does it set targets for requests generated by other CCRA compliance actions or by the Pensionable and Insurable Earnings Review (PIER) process. However, our internal performance standards are to complete 85% of PIER requests within 90 days of receipt, and 85% of all other requests within 60 days. We were close to meeting our performance standards for PIER requests (83%), but we fell short of our standard for requests from the public (77%). Taking all three types of CPP/EI rulings requests together, our overall completion rate within established timeframes increased from 75% in 2000-2001 to 81% in 2001-2002, somewhat below our target of 85%. We are taking action to close this performance gap.

Exhibit 41: CPP/EI Ruling Requests

EI fraud – As a result of the Auditor General report on EI fraud in British Columbia, as well as recommendations made by the Standing Committee on Public Accounts, the CCRA is taking the steps necessary to enhance our ability to effectively deal with those EI claims for which HRDC suspects fraud or abuse. Complex Case and Technical Review Officer, and Complex Case Officer and Technical Advisor positions have been staffed across the country. The officers will utilize the CCRA's Forensic Document and Investigations areas and will participate in cross-training opportunities with HRDC. New procedures have been developed to improve information-sharing with HRDC without compromising the independence and impartiality of the CCRA. Joint monitoring of select cases will be undertaken to ensure the new procedures are effective.

Highlights

Our reliable infrastructures and proven expertise in planning and delivering benefit programs and one-of-a-kind payments on behalf of provincial, territorial, and federal partners help position the CCRA as the obvious choice for the delivery of new programs and data supports. Coupled with our commitment to service innovation and continuous improvement, our large and flexible processing systems help us to adapt to our partners' new and evolving requirements. They also enable us to supply necessary data in support of programs we do not administer ourselves.

Data transfers and exchanges – An important aspect of working successfully with provinces and territories to improve program delivery is our ability to provide them with key program information (such as benefit payment amounts and changes in family status) quickly and securely, through data transfers and exchanges.

In 2001-2002 we completed the implementation of the Benefit Data Synchronization Link with provinces and territories. This link provides the operational backbone for the inter-governmental National Child Benefit initiative. Exchanging data on National Child Benefit Supplement amounts that are paid to social assistance clients within the 12 participating jurisdictions supports more timely and accurate payment of provincial and territorial social assistance to families with children. By ensuring that only information on active social assistance clients is shared with each jurisdiction, the data link respects all privacy requirements. We also transfer data to four provinces where the child benefit programs we administer have replaced social assistance for children. In jurisdictions where additional interactivity is required, data feeds include a secure, immediate-response enquiries service available by both Interactive Voice Response and the Internet.

Data transfers are also in place to provide certain CCTB eligibility and entitlement information or other information collected by the CCRA to several provinces and federal departments. We share this information in support of a number of programs we do not administer ourselves, including the Ontario Child Care Supplement for Working Families, Quebec Family Allowances, and the Employment Insurance Family Supplement. We also provided data to HRDC to support targeted payment inserts designed to make sure more low-income seniors apply for the Guaranteed Income Supplement.

Provincial and territorial benefit and credit programs – We continued to develop and strengthen partnerships with the provinces and territories, successfully negotiating new agreements and adjusting our systems and processes to accommodate the increasing complexity of administering and delivering multiple programs without compromising service delivery.

Two new programs were implemented in 2001-2002. First, the Newfoundland and Labrador Mother Baby Nutrition Supplement was launched in December 2001. This is a monthly supplement for children under the age of one, delivered as a component of the existing Newfoundland and Labrador Child Benefit program. It is the first age-dependent component included in a provincial child benefit program administered by the CCRA. Second, the BC Energy Rebate was issued in May 2001 to an estimated 1.1 million clients in May 2001. This was a one-time payment for the relief of energy expenses.

We now administer the seventeen ongoing provincial and territorial benefit programs and the three provincial one-time payment programs listed in Exhibit 42 . Five of the ongoing programs administered by the CCRA were reconfigured either in July or October 2001 for the new benefit year.

Exhibit 42: Provincial and Territorial Benefit and Credit Programs (2001-2002)

We also offered provinces and territories participating in the National Child Benefit initiative the opportunity to include information about their related programs with the CCTB notices we mailed in July 2001 to every CCTB recipient in their jurisdiction. We successfully carried these inserts—at no charge—for the seven provinces and territories who accepted this offer.

One-of-a-kind payment programs – In addition to delivering the BC Energy Rebate, we have begun a two-stage process of shutting down the provincial one-time payment programs that we implemented in 2000-2001 or 2001-2002. This involves:

• ceasing calculations on behalf of late filers or those requesting adjustments; and

• closing the accounting records.

Other programs and partnerships – In 2001-2002, the CCRA successfully implemented the Nova Scotia First-Time Home Buyers' Harmonized Sales Tax Rebate, to replace the former provincial New Housing HST Rebate program. This represents the first substantive revision of this type of rebate since the harmonized sales tax was introduced. We are also continuing to develop our partnership with the Nova Scotia Workers' Compensation Board (WCB). There are plans in development to amend the 1999 Memorandum of Understanding (MOU), subject to legislated authorization, to allow for the exchange of information on all types of businesses, contractors, and sub-contractors registered with the WCB of Nova Scotia or the CCRA.

Partnerships with Ontario and Nova Scotia to allow our Business Number to be assigned for provincial business programs are being expanded to other provinces, with work well advanced in New Brunswick, Manitoba, and British Columbia. We are also pursuing partnerships with several other jurisdictions that have expressed initial interest in adopting the Business Number and integrated registration for provincial business programs.

The year 2001-2002 saw the implementation of three new First Nations sales taxes, bringing to eight the number of First Nations sales taxes that have been implemented. The CCRA continued to administer and monitor the existing five agreements through the work of the First Nations Sales Tax Steering Committee. Consultations have begun on the development of an expanded First Nations tax in conjunction with the Department of Finance. We also proceeded with the ongoing work necessary to implement the Carcross-Tagish case, which changes the tax status of certain Yukon First Nations. Furthermore, we developed a Management Framework for Aboriginal Program Delivery, which describes how the CCRA plans, manages, reports on, and reviews its activities related to Aboriginal clients.

We are still unable to precisely measure the incremental costs associated with new services. This will be addressed as part of our agency-wide Activity-Based Costing initiative.

Refund Set-Off Program – We administer the Refund Set-Off program, under which outstanding debts owed by individuals to our federal, provincial, and territorial partners are offset against income tax refunds, GST/HST credit payments, and provincial tax credits. As Exhibit 43 indicates, $105 million was offset for 2001-2002. This figure represents an increase of 5% from 2000-2001, due to the addition of new programs and partners.

Exhibit 43: Total Refund Set-Off Amounts ($millions)

Accountability – As part of the CCRA's accountability regime, we provide annual reports to each of the provinces and territories to demonstrate our performance in administering the provincial and territorial programs they have entrusted to us. In addition, the Commissioner offers to meet with each provincial or territorial Minister of Finance or his or her designate to discuss our performance. Our first annual reports covering the 1999-2000 fiscal year were issued in March 2001. The Commissioner met with nine jurisdictions during 2001-2002.

As a result of the feedback received on these first annual reports to our partners, reports covering 2000-2001 were restructured to provide a separate chapter for each major program administered on behalf of the province or territory; a list of all programs administered for all provinces and territories; and a list of the memoranda of understanding between each province or territory and the CCRA. The implementation of all of these changes resulted in a slight delay in issuing the second set of annual reports, which were printed and delivered in June 2002. An examination of mechanisms to improve timely delivery of the reports has been initiated.

Building on the progress we made last year in developing Service Management Framework agreements with our partners, we signed new agreements in 2001-2002 with Saskatchewan, British Columbia, and the Yukon, to add to the five agreements signed with Nova Scotia, Alberta, Manitoba, Prince Edward Island, and the Northwest Territories in 2000-2001. We also signed a new agreement with Newfoundland and Labrador in May 2002, and are proceeding in our discussions with New Brunswick and Nunavut. While no specific target has been set for signing such agreements, the fact that almost all jurisdictions have concluded agreements with us demonstrates that they are considered to be an important element of our enhanced accountability regime by the provinces and territories.

Our relationships with provinces and territories are summarized in Exhibit 44 .

Exhibit 44: Relationships with Provinces and Territories

Date modified:

2002-11-07