PACC Committee Report
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Recommendation 7
The Standing Committee on Public Accounts recommended:
That Human Resources Development Canada make specific reference to the impact of its new payroll information system in reducing fraud and abuse under the EI Program commencing with its Performance Report for the period ending 31 March 2002.
RESPONSE
The Government agrees with this recommendation.
In order to maximize the use of our current system, HRDC is exploring the possibility of automating the required payroll data collection for all its EI Programs.
The automation will provide a timely update of earnings information and would ultimately reduce fraud and abuse.
In the interim, the current Automated Earnings Reporting System (AERS) will continue to exchange selected payroll data with HRDC on a regular basis with a limited number of employers. The data obtained from AERS is compared to EI files, which give rise to early detection of unreported earnings. Such early detection prevents large overpayment and penalty situations.