PACC Committee Report

 

 

Recommendation 1

 

            The Standing Committee on Public Accounts recommended:

 

That Human Resources Development Canada and the Canada Customs and Revenue Agency explore ways to improve information sharing during insurability rulings and appeals processes, and discuss the results in their performance reports for the period ending 31 March 2002.

 

RESPONSE

 

The Government agrees with this recommendation.

 

A joint action plan was developed by Human Resources Development Canada (HRDC) and the Canada Custom and Revenue Agency (CCRA) to deal with cases where Employment Insurance (EI) fraud or abuse is suspected and the status of the parties is in doubt.  A service agreement was drafted between HRDC and the CCRA, which outlines their respective roles and responsibilities on the handling of such cases.

 

CCRA Rulings has implemented new procedures for dealing with HRDC referrals of suspected EI fraud or abuse.  The procedures enhance cooperation between the CCRA and HRDC, and strengthen their coordination and planning activities when dealing with these cases.

 

As a first step under these procedures, HRDC provides CCRA Rulings with advance notice of pending referrals in order to ensure that appropriate resources are made available.  Once the referral is received, the Complex Case and Technical Review Officer (CCTRO) will initially meet with HRDC’s Investigation and Control Officer (ICO) to assess the information and clarify the facts of the case. 

 

Additionally, while conducting their interview with the parties to the ruling, the

CCTRO will give full consideration to the facts submitted by HRDC and question instances when information is contradictory to these facts.  Upon clarification and review of relevant evidence, should the parties’ facts be held to be true, the CCTRO will advise HRDC why the information it submitted was not accepted.

 

If in the estimation of the CCTRO, the validity of the information remains obscure or the parties are unable to provide satisfactory evidence, the parties, with the participation of the ICO, will be invited to participate voluntarily in a joint meeting.  The CCTRO will act as facilitator to resolve conflicting information.  Should this process fail, the CCTRO would make the final decision on the insurability issue based on the facts at hand.

 

In the event a ruling is appealed to the Minister of National Revenue, Complex Case Office and Technical Advisors (CCOTAs), while conducting their interview with the parties to the appeal, will give full consideration to the facts submitted by HRDC and CCRA Rulings and challenge instances where the parties provide information that is contradictory to these facts.  If upon clarification and proper evidence, the parties’ facts are held to be true, the CCOTAs will advise HRDC or CCRA Rulings why the information they submitted was not accepted.

 

Additionally, two national meetings were held by HRDC and CCRA Rulings to address the questions concerning the CCRA’s responsibilities regarding major investigations (MIs) where fraud and abuse is suspected by HRDC.  An agreement on additional procedural matters was drafted and covers:

 

·        how HRDC would provide prior notification to CCRA Rulings of potential MIs;

·        a mechanism through which HRDC would be kept informed, on a regular basis, on the status of the rulings progress;

·        a mechanism for HRDC to track MIs referred to the CCRA;

·        actions to be undertaken by the CCRA when conducting its ruling;

·        a process by which HRDC would be advised on the outcome of rulings decisions, as well as the reason; and

·        a process through which the CCTRO prior to commencing the rulings case would meet with the ICO to ensure that the facts submitted by HRDC are well understood.

 

These procedures are being developed, and will be implemented by both the CCRA and HRDC.  In addition, CCRA Appeals in consultation with HRDC are currently developing an enhanced communication process with respect to Appeals files dealing with suspected fraud and abuse.

 

Additionally, HRDC and the CCRA have retained the services of Consulting and Audit Canada (CAC) to conduct a review and evaluation of the existing processes between HRDC and the CCRA.   CAC will be assisting the CCRA and HRDC in determining whether the rulings and appeals processes carried out within the CCRA on behalf of HRDC are efficient, and where necessary, define perceived problems and the drivers behind the problems by:

 

-         reviewing the process involved;

-         identifying central problems;

-         suggesting any procedural changes that could improve the program; and

-         examining other potential solutions to problems and impacts on HRDC and the CCRA.

 

A report is expected shortly and both the CCRA and hrdc will givefull consideration to the conclusions drawn from this exercise. 

 

The CCRA and HRDC have agreed to discuss the results of these initiatives in their performance reports for the period ending March 31, 2002.