PACC Committee Report

            The Standing Committee on Public Accounts recommended:

That the Canada Customs and Revenue Agency carefully review the resources, including time and funding, needed to make thoroughly investigated insurability rulings and to handle appeals regarding employment insurance claims where abuse or fraud is suspected, adjust its budgeted time standard accordingly, and seek additional funding if required.

RESPONSE

The Government agrees with this recommendation.

The existing Memorandum of Understanding on costing and services between HRDC and the CCRA is being revised.  The resources required by the CCRA to carry out its responsibilities is being reviewed.

Any increase in resources will require the approval of the Treasury Board and any increase in the time to investigate fraud and abuse will have a direct impact on HRDC's speed of service to its clients.  A business case will be submitted to HRDC for funding based on the actual time spent in investigating these cases, or on an estimate of the time required to work these cases.

HRDC is to provide a heads-up to CCRA Rulings on any cases it believes are a potential major fraud investigation.  For this purpose, a mechanism has been developed under which a report would be generated and forwarded to CCRA Rulings as cases arise which will allow it time to forecast for any additional resources that may be required.  CCRA Rulings has agreed to provide HRDC with a list of ongoing fraud cases.  This list will also be forwarded to CCRA Appeals to keep it informed of potential appeals to the Minister of National Revenue.