HUMA Committee appearance binder: Appearance of Deputy-Minister Flack - April 15, 2021

Opening statement

1. Opening remarks

Auditor General Report

2. Auditor General of Canada 2021 Report 6 - Canada Emergency Response Benefit
3. Management Action Plan
4. Recommendations
   1. Recommendation 6.4 Finalize and Implement plans for CERB post-payment verification work
   2. Recommendation 6.65 Conduct a Formal Assessment of CERB
5. Additional Qs and As on Integrity T

Top Issues

6. Timeline and Legislation for EI-CERB-CRB
7. Preventing applicants from receiving CERB from both SC and CRA
8. Cost of EI-ERB, CERB, and Canada Recovery Benefits (CRB, CRCB, CRSB)
9. CERB overpayments
10. CERB Integrity
11. PTs clawing back social assistance benefits
12. CERB Statistics Website – $7B variance
13. Description and costing of ESDC COVID Measures
14. CERB Gender Based Analysis Plus
15. International Monetary Fund (IMF) Report
16. Aging IT Systems and Benefits Delivery Modernization
17. CERB Performance Measurement Approach

Committee and parliamentary Information

18. Parliamentary background and analysis
19. Committee membership and biographies
20. April 13, 2021 PACP Summary - Briefing with Auditor General

Opening

Mr. Chair,

First, thank you for the invitation to appear before the committee today.

We are here to talk about the Auditor General’s Report on the design and delivery of the Canada Emergency Response Benefit, commonly known as the CERB.

The Government of Canada welcomes the Report. We recognize the importance of the findings and we accept all the recommendations. In fact, we have already started to address those recommendations.

Supporting Canadians

Before I talk about that work, I would like to take a moment to recognize the tremendous efforts by Employment and Social Development Canada – or ESDC – and the Canada Revenue Agency – or CRA to design and rollout the CERB in the matter of weeks.

The CERB helped more than 8 million workers and their families stay afloat. The quick and decisive actions taken to provide income support to millions of Canadians affected by closures and public health restrictions helped buffer the worst economic impacts.

Rapidly, ESDC and CRA created a simple and straightforward application with back-end verifications. As the benefit rolled out, adjustments were made to support even more Canadians and our economic recovery. These adjustments included an expansion of eligibility so that workers making up to $1,000 a month could still be eligible, as well as key measures to prevent fraud.

We took a never-before-seen approach to roll out support quickly during an unprecedented emergency.

On top of having to adapt to their new teleworking reality, many ESDC and CRA employees were homeschooling their kids, supporting family members and providing care to loved ones who may have been affected by COVID-19

Despite all this, they worked tirelessly to make sure Canadians would get the support they needed as fast as possible.

There are no words to express how proud I am to work with such devoted and hard-working people. They truly demonstrate what the Canadian public service is all about; respect, integrity stewardship and excellence.^{Footnote 1}

The Auditor General’s report also acknowledges the work done by Canadian public servants, and recognizes the approach taken by the Government of Canada.

Addressing Recommendations

The Report has made 2 recommendations for ESDC, both of which the Department welcomes and accepts.

The first is to finalize and implement plans for CERB post-payment verification.

I can tell you that throughout the delivery of the CERB, ESDC and CRA were actively detecting, preventing and disrupting fraudulent activity. ESDC identified over 30,000 potentially fraudulent applications, preventing approximately $42 million in payments from being issued.

A 4-year post-payment verification plan has been developed and initiated to ensure that those who received the benefit were eligible. And as you know, the Fall Economic Statement provided additional resources to both ESDC and the CRA to support this work. That boost in funding will help us take action to detect, investigate and address cases of fraud related to the benefit.

The second recommendation is around “lessons learned”.

On that front, I can tell you that we are going to complete a formal assessment of the CERB that will assist the Government of Canada in the design and delivery of future government emergency response and recovery programs. We will begin this work in collaboration with the CRA in the summer of 2021.

Closing

In closing, I would like to reiterate that we welcome and accept the Auditor General’s recommendations.

As we move ahead in our economic recovery, we will continue our work on post-payment verification, while also supporting Canadians who have been hit hardest during the pandemic.

The CERB was implemented to support Canadians and protect the economy from the impact of the global COVID-19 pandemic. The lessons learned will help in the design and delivery of future benefit programs.

Thank you for the opportunity to appear before you today.

I will now take your questions.

-30-

Report Ref. No.

NA

Report Ref. No.

Para 6.64

Report Ref. No.

Para 6.65

Issue

ESDC has a 4-year operational plan to investigate CERB related fraud.

Key facts

• On March 25, 2021, the Auditor General of Canada (OAG) released its independent report on the design and delivery of the Canada Emergency Response Benefit (CERB)
• In the report, the OAG recommended that ESDC and the CRA finalize and implement their plan for CERB post-payment verification work and the department agreed

Response

• The department agrees with the OAG’s recommendation to finalize and implement a plan for CERB post-payment verification work
• Service Canada takes the integrity of its programs very seriously and remains committed to the financial stewardship of its programs
• The Government’s Fall Economic Statement announced $260 million over 4 years for ESDC and the CRA to increase the capacity to detect, investigate and address cases of fraud or misrepresentation related to the Canada Emergency Response Benefit.
• Service Canada uses data analytics and intelligence capabilities to actively monitor and identify cases of error and fraud
• In addition, the Department has been working closely with key partners, including other government departments and law enforcement agencies, to detect and disrupt cases of possible fraud

Background

Throughout the pandemic, ESDC leveraged its analytics and intelligence capabilities to disrupt, detect and prevent fraud. As part of our work, the Department was able to identify and implement stop payments for approximately 30,000 potentially fraudulent applications for the EI ERB, preventing approximately $42 million in payments from being issued. These alerts are being investigated.

We take the integrity of our programs very seriously, and have put in place a multi-year plan for investigations focusing on the areas of highest risk, such as identity fraud. We will work closely with the CRA to ensure alignment of efforts.

Prepared by

Name: Kathleen Walford

Title: Director General

No phone number: NA

Key contact

Name: Kathleen Walford

Title: Director General

Phone number: NA

Approved by

Name: NA

Title: NA

Phone number: NA

Date

Date approved in SADMO / COO: April 9, 2021

Issue

What is the Government’s response to the Office of the Auditor General (OAG)’s recommendation to conduct a formal assessment of the delivery of the Canada Emergency Response Benefit?

Key facts

• The OAG’s independent report on the development and delivery of the Canada Emergency Response Benefit (CERB), tabled in Parliament on March 25, 2021, made 2 recommendations addressed to both the Canada Revenue Agency (CRA) and Employment and Social Development Canada (ESDC)
• The first recommendation is that ESDC and the CRA should finalize and implement their plans for the CERB post-payment verification work
• The second recommendation is that ESDC and the CRA should conduct a formal assessment of the delivery of the CERB in order to apply the findings to the design and delivery of future government emergency response and recovery benefits

Response

• In response to the COVID-19 crisis, the Government provided direct and rapid income support to millions of Canadian workers impacted by closures and public health restrictions, by introducing the Canada Emergency Response Benefit (CERB) in a matter of weeks
• The Government welcomes the Auditor General’s report on the CERB and gratefully accepts the recommendations
• The CERB was implemented to protect Canadians and the economy from the impact of the global COVID 19 pandemic, but the lessons learned could have broader application to future benefit program design and delivery
• Work is already underway to address the report’s recommendations. A post-payment verification plan has been developed and initiated to ensure that those who received the benefit were eligible
• The Department will undertake an assessment of the CERB’s design and delivery. This will help the Government of Canada apply lessons learned for the design of future emergency response benefits. This work will begin as soon as possible, taking into account the need to continue to respond to the pandemic and support the economic recovery

Background

• The Canada Emergency Response Benefit (CERB) was an important and necessary temporary emergency response to support Canadian workers, including the self-employed, who stopped working due to COVID-19
• The CERB was delivered by the Canada Revenue Agency and Service Canada and provided a weekly amount of $500 for up to 28 weeks, between March 15, 2020, and October 3, 2020. The CERB followed a simplified attestation-based design with integrity applied at the back end, to provide rapid temporary income support to Canadians whose employment was affected by the COVID-19 pandemic
• The Office of the Auditor General (OAG)’s independent report on the design and delivery of the CERB was tabled in Parliament on March 25, 2021
• As indicated in the OAG report, the quick roll-out and subsequent adjustments of the CERB helped Canadians to stay at home to avoid overwhelming the country’s health care system, while allowing them to meet their financial obligations. The report acknowledges that the decision the Government made to focus on “post-payment” rather than upfront verification helped to expedite benefit payments to Canadians when they needed them
• While there are no recommendations with respect to the design of the benefit, there are 2 recommendations with respect to controls in the report addressed to both the CRA and ESDC
• The first relates to finalizing and implementing the plans for post-payment verification for the CERB. The second calls for a formal assessment of the delivery of the CERB in order to apply the findings to the design and delivery of future government emergency response and recovery benefits
• ESDC and the CRA have responded to these recommendations in the report noting that they are in agreement.

Citations / Key quotes

“Today, we welcome the Auditor General’s report on the design and delivery of the CERB, recognize the importance of the findings and accept all recommendations. Work is already underway to address the report’s recommendations. A post-payment verification plan has been developed and initiated to ensure that those who received the benefit were eligible. Additionally, work will begin on an assessment of the CERB’s design and delivery. This will help the Government of Canada apply lessons learned for the design of future emergency response benefits.” ESDC and CRA joint statement, March 25th, 2021

Prepared by

Name: Christina Abbass

Title: Policy Analyst

Key contact

Name: Steven Coté

Title: A/ Executive Director

Phone number: 819-654-8775

Approved by

Name: Elisha Ram

Title: AADM, Skills and Employment Branch

Phone number: 819-654-5212

Date

1. The Canada Emergency Response Benefit

Start date: March 15, 2020

End date: October 3, 2020

The Canada Emergency Response Benefit (CERB) was an important and necessary temporary response to support Canadian workers, including the self-employed, who stopped working due to COVID-19. The CERB provided a weekly amount of $500 for up to 28 weeks, between March 15, 2020, and October 3, 2020. The deadline to retroactively apply for CERB was December 2, 2020.

2. Temporary Enhancements to Employment Insurance

Start Date: September 27, 2020

End Date: September 25, 2021

As part of COVID-19: Financial support, the Government transitioned from the CERB to a simplified Employment Insurance (EI) program, effective September 27, 2020, to provide income support to eligible workers who remain unable to work. Recognizing that many workers impacted by the COVID-19 pandemic will have lost their jobs or are working reduced hours, a set of temporary measures have been introduced to facilitate access to EI benefits. Measures include:

• a minimum unemployment rate of 13.1% applies to all regions across Canada since August 9, 2020 and until September 11, 2021
• allowing workers with 120 insurable hours to qualify for benefits because of a one-time credit of:
  • 300 insured hours if applying for regular benefits; and
  • 480 insured hours if applying for sickness, maternity, parental or caregiving benefits, and;
• a minimum weekly benefit of $500 per before taxes, or $300 before taxes for extended parental benefits

These measures allow Canadians to qualify for EI with a one-time eligibility of 120 hours of work, establish a minimum benefit rate of $500 per week and provide a minimum entitlement of 26 weeks of regular benefits (extended to a maximum of 50 weeks on March 18, 2021) for claims established between September 27, 2020 to September 25, 2021.

To support small businesses and workers, the Government of Canada has also frozen the EI premium rate for 2 years at the current 2020 rate.

In early January 2021, Canada experienced an increase in COVID-19 infections, which resulted in additional public health measures and increased financial pressure on workers. In response, the Government of Canada waived the waiting period for all new EI claims established from January 31, 2021 until September 25, 2021. This enables eligible workers to be paid for the first week of unemployment.

3. Recovery Benefits

Start date: September 27, 2020

End Date: September 25, 2021

The Government introduced 3 temporary Recovery Benefits to provide income support to those Canadian workers who are not eligible for EI and those who require tailored support when their employment is affected by COVID-19. These include the:

• Canada Recovery Benefit

The new Canada Recovery Benefit (CRB) provides a benefit amount of $500 per week (available in 2-week periods) for up to 26 weeks (extended to 38 weeks on March 18, 2021) for those who are not eligible for EI and are not employed or self-employed due to COVID-19, or have had their employment/self-employment income reduced by at least 50% due to COVID-19.

• Canada Recovery Sickness Benefit

The Canada Recovery Sickness Benefit (CRSB) provides a benefit amount of $500 per week (available in one-week periods), for up to 2 weeks (extended to 4 weeks on March 18, 2021) for those who are unable to work because they are sick or must self-isolate due to COVID-19, or have underlying conditions would make them more susceptible to COVID-19.

• Canada Recovery Caregiving Benefit

The Canada Recovery Caregiving Benefit (CRCB) provides a benefit amount of $500 per week (available in one-week periods) for up to 26 weeks (extended to 38 weeks on March 18, 2021) for those who are unable to work because they must care for their child under the age of 12 or family member who needs supervised care.

Issue

Instances where individuals applied to both the Service Canada and the Canada Revenue Agency for the Canada Emergency Response Benefit

Key facts

• Service Canada and the Canada Revenue Agency (CRA) jointly administered the Canada Emergency Response Benefit (CERB) to ensure that Canadians received the money they were entitled to as quickly as possible
• As 2 organizations were administering the CERB independently, at the outset, there were situations where clients mistakenly applied for the benefit through both Service Canada and CRA, which resulted in a double payment
• Service Canada and CRA worked together to ensure that these situations were addressed and payments to eligible clients did not exceed the maximum allowable benefit of 28 weeks or $14,000
• Within one week of the launch of the CERB, Service Canada and CRA introduced pre-payment controls to stop applicants from receiving duplicate benefits
• Due to quick action taken to rectify the problem, this amount represented less than 1% of total CERB payments

Response

• Service Canada takes the integrity of its programs very seriously and remains committed to the financial stewardship of its programs
• The CERB, jointly delivered by Service Canada and the Canada Revenue Agency, was an important and necessary temporary emergency response implemented to protect Canadians and the economy from the impacts of the global COVID-19 pandemic
• To stop applicants from receiving duplicate benefits, our Department and Canada Revenue Agency quickly introduced, within one-week of the launch of CERB, pre-payment controls
• The Government’s Fall Economic Statement announced $260 million over 4 years for our Department and the Canada Revenue Agency to increase the capacity to detect, investigate and address cases of fraud or misrepresentation related to the CERB
• While there will not be any penalty for Canadians if they have received a payment in error, they will be required to repay the CERB benefits for which they are not eligible

Background

As the COVID-19 pandemic began, the Government needed to provide direct and rapid income supports to Canadians whose jobs were impacted by closures and public health restrictions. It was determined that, due to the expected volume of applications, usual processing rules would result in significant delays in issuing the benefit. The Canada Emergency Response Benefit (CERB) was introduced, and jointly administered by ESDC (Service Canada) and the Canada Revenue Agency (CRA) to ensure that Canadians received the money they were entitled to as quickly as possible.

As the 2 organizations were administering the CERB independently, at the outset, there were situations where clients mistakenly applied for the benefit through both streams, which resulted in a double payment from Service Canada and the CRA. Within 1-week of the launch of CERB, pre-payment controls were introduced to stop applicants from receiving duplicate benefits.

Service Canada and the CRA worked together to ensure that those situations were addressed and payments to eligible clients did not exceed the maximum allowable benefits. To prevent these situations from continuing, CRA conducted a validation check at the application stage. If the applicant had already been approved for benefits with Service Canada, they would not have been able to continue further with the CRA-CERB application.

While there will not be any penalty for Canadians if they received a payment in error, they will be required to repay the CERB benefits for which they were not entitled and may have already received a letter from CRA providing them with further information about the repayment process. Specifically, if they have received the CERB twice for the same benefit period, they are requested to return one of the payments to the CRA. Canadians are strongly encouraged to file their 2020 tax returns by the filing deadline.

As new data sources such as tax returns and records of employment become available, Service Canada and CRA will be identifying additional individuals who may have been ineligible for the benefit.

Service Canada uses data analytics and intelligence capabilities to actively monitor and identify cases of fraud.

In addition, the Department has been working closely with key partners, including other government departments and law enforcement agencies, to detect and disrupt cases of possible fraud.

Verification of eligibility will follow the tax season to determine next steps. The first priority will be to identify and take measures against those who may have knowingly engaged in fraud/abused the system. Part of the plan includes providing relief to vulnerable individuals who may be adversely impacted. Upon further review, tailored repayment solutions may be required to address various circumstances where benefit repayment may affect in particular, low-income individuals.

Additionally, ESDC is actively working on investigating cases linked to potential fraudulent claims of the CERB. The time it takes to conduct and complete an investigation of a fraudulent claim will vary based on individual circumstances. As a result, it is difficult to estimate the time it will take to complete the investigations linked to fraudulent claims.

The 2020 Fall Economic Statement announced multi-year funding to address CERB fraud for ESDC and the Canada Revenue Agency. ESDC has put in place a multi-year plan for investigations focusing on areas of highest risk.

Prepared by

Name: Jonathan Larocque

Title: Director, Strategic Directions, Benefits and Integrated Services Branch

Key contact

Name: Michael MacPhee

Title: Director General, Employment Insurance Benefits Processing, Benefits and Integrated Services Branch

Phone number: 819-654-7571

Approved by

Name: Cliff Groen

Title: Senior Assistant Deputy Minister, Benefits and Integrated Services Branch

Phone number: (819) 654-6944

Date

Date approved in SADMO / COO: 2021/04/09

Issue

What is the latest website information for EI-ERB, CERB, CRB, CRCB, and CRSB (spend-to-date, number of unique applicants)?

Key facts

• The CERB benefits statistics are updated on the following website:
  https://www.canada.ca/en/services/benefits/ei/claims-report.html
• The Canada Recovery Benefits statistics are updated by CRA on the following websites:
  CRB: https://www.canada.ca/en/revenue-agency/services/benefits/recovery-benefit/crb-statistics.html
  CRCB: https://www.canada.ca/en/revenue-agency/services/benefits/recovery-caregiving-benefit/crcb-statistics.html
  CRSB: https://www.canada.ca/en/revenue-agency/services/benefits/recovery-sickness-benefit/crsb-statistics.html
• Note - This document should be used as a reference to report cumulative costs related to EI-ERB, CERB, CRB, CRCB, and CRSB. To avoid reconciliation and timing issues, it should supersede any previous house cards with cost information. This document contains publically available information and will be updated as required.

Response

The following CERB data is from the website listed above as of October 4, 2021:

• the total dollar value of CERB benefit payments is $74.08B, with 8.9M unique applicants
• of this total, $45.04B is CERB (CRA administered) and $29.04B is EI-ERB (ESDC administered)

The following CRB data from the websites listed above is as of March 28, 2021:

Issue

Employment and Social Development Canada’s response to CERB overpayments.

Key facts

• In March 2020, ESDC put a pause on collection activities for all ESDC debts, including Notice of Debts for all programs
• Issuance of Notice of Debts and Monthly Statements of Accounts (MSA) for ESDC debts resumed on November 1, 2020. A minimal number of Notice of Debts and MSAs were issued by ESDC for CERB overpayments. These statements were mainly addressed to clients who had provided a full or partial reimbursement of their overpayment
• On February 9, 2021, the Government announced that it is allowing self-employed individuals who applied for the CERB through the Canada Revenue Agency or ESDC, and whose net self-employment income was less than $5,000, to keep their CERB payments provided they meet all other eligibility requirements
• While clients can voluntarily pay amounts owing, no active collection activity of CERB overpayments is planned until late Fall 2021. For those affected, ESDC will offer flexibility to clients in establishing a payment plan

Response

• The federal government is committed to continuing to support Canadians throughout this crisis
• The Government understands there may be situations in which Canadians received a CERB payment to which they were not eligible
• ESDC takes the integrity of its programs very seriously and remains committed to the financial stewardship of its programs
• While there will not be any penalty for Canadians if they have received a payment in error, they may be required to repay the CERB benefits for which they are not eligible
• Clients in this situation may have received a letter providing them with further information to make arrangements to repay any applicable amounts
• We would like to reassure Canadians that there is a continued pause of collection activities of EI emergency response benefit debts for the coming months

Background

On April 6, 2020, the Government launched the Canada Emergency Response Benefit (CERB) to provide temporary income support to workers who had stopped working and were without employment or self-employment income, for reasons related to COVID-19. Through this benefit, eligible workers who lost their job or were unable to work due to COVID-19 received $500 per week.

ESDC and the Canada Revenue Agency (CRA) jointly administered the CERB to ensure that Canadians received the money they were entitled to as quickly as possible. However, there may be situations in which Canadians received a CERB payment to which they were not eligible.

Claimants may need to return or be required to repay the CERB if they:

• returned to work earlier than expected, including being paid retroactively
• applied for CERB but later realized they were not eligible, or
• applied for and received the CERB from both ESDC and CRA for the same period

While there will not be any penalty for Canadians if they received a payment in error, they may be required to repay the CERB benefits for which they were not entitled and may have already received a letter providing them with further information about the repayment process. Specifically, if they have received the CERB twice for the same benefit period, they are requested to return one of the payments to the CRA. To support this process, Canadians are strongly encouraged to file their 2020 tax returns by the filing deadline.

ESDC and the CRA worked together to ensure that those situations were reconciled and payments to eligible clients did not exceed the maximum allowable benefits. To prevent these situations from continuing, CRA conducted a validation check at the application stage. If the applicant had already been approved for benefits with ESDC, they would not have been able to continue further with the CRA-CERB application.

In March 2020, ESDC put a pause on collection activities for all of ESDC debts, including Notice of Debts for all programs. This decision was made to focus on supporting Canadians rather than establishing new overpayments.

On September 27, 2020, ESDC began transitioning clients from CERB to a simplified EI program, and put in place new temporary measures for 1 year to facilitate access to the EI program.

Issuance of Notice of Debts and Monthly Statements of Accounts for ESDC debts resumed on November 1, 2020. A minimal number of Notice of Debts and Monthly Statements of Accounts were issued for CERB overpayments issued by ESDC, mainly for clients who had provided a full or partial reimbursement of their overpayment. No active collection activity of CERB overpayments is planned until late fall 2021.

The information provided in this card is specific to ESDC only. Issues pertaining to CRA collection activities should be addressed to CRA.

If pressed on net vs. gross income for self-employment income:

On December 6, 2020, articles in the media raised questions on whether the $5,000 in income required to be eligible for CERB is net or gross for the purposes of self-employed individuals.

The CRA website for CERB eligibility included the following information.

Small Business owners can receive income from their business in different ways, including as salary, business income or dividends. In determining their eligibility for the CERB:

• owners who take a salary from their business should consider their pre-tax salary
• owners who rely on business income should consider their net pre-tax income (gross income less expenses)
• owners who rely on dividend income should consider this as self-employment income provided it comes from non-eligible dividends (generally, those paid out of corporate income taxed at the small business rate)

In some cases, self-employed individuals had declared their total business revenue, rather than their personal self-employment income in attesting that they made $5,000 in 2019. These individuals subsequently received education letters from the CRA indicating that they may not have met the requirements for the benefit.

On February 9, 2021 the Government announced that it is allowing self-employed individuals who applied for the CERB through the CRA or ESDC, and whose net self-employment income was less than $5,000, to keep their CERB payments provided they meet all other eligibility requirements.

Some self-employed individuals whose net self-employment income was less than $5,000 may have already voluntarily repaid the CERB. The CRA and ESDC will return the repaid amounts to impacted individuals. The exact process by which this will occur and the timelines within which it will be implemented are still being determined.

This approach provides a targeted resolution specifically for self-employed individuals who applied in good faith and received benefits based on unclear eligibility information provided by the Government.

Prepared by

Name: Jonathan Larocque

Title: Director, Strategic Directions Directorate

Key contact

Name: Nisa Tummon

Title: Director General, Strategic Directions Directorate

Phone number: 873-396-1062

Approved by

Name: Cliff Groen

Title: Senior Assistant Deputy Minister, Benefits and Integrated Services Branch

Phone number: 819-654-6944

Date approved in COOO: April 9, 2021

Issue

The Auditor General has stated that the Government should have ways to identify fraud and recoup money for the Canada Emergency Response Benefit (CERB) and employment-insurance (EI) benefits during the pandemic.

Suggested Response

• Service Canada takes the integrity of its programs very seriously
• We know that in time of crisis, the risk of fraud is heightened and we continue to conduct investigations to identify and address cases of fraud
• Service Canada uses data analytics and intelligence capabilities to actively monitor and identify cases of fraud
• In addition, the Department has been working closely with key partners, including other government departments and law enforcement agencies, to detect and disrupt cases of possible fraud
• In cases where claimants are found to be ineligible to receive the Canada Emergency Response Benefit, they will be required to reimburse the overpayment
• The Government's Fall Economic Statement announced $260 million over 4 years for ESDC and the CRA to increase the capacity to detect, investigate and address cases of misrepresentation or fraud related to the Canada Emergency Response Benefit
• This investment will ensure the proper stewardship of the program

Background

In order to deal with the high volumes of applications and get money to eligible Canadians as quickly as possible during the pandemic, a number of temporary measures were implemented to simplify policy and processes while maintaining the integrity of the EI program through largely post-payment verification. Simplification measures included moving to a flat rate and the use of attestations over the requirement for documentation.

Post-payment verification reviews will help us develop accurate estimates of fraud.

The Government's Fall Economic Statement announced $260.4 million over 4 years for Employment and Social Development Canada (ESDC) and the Canada Revenue Agency (CRA) to increase the capacity to detect, investigate and address cases of fraud or misrepresentation related to the Canada Emergency Response.

From this, $114.3 million is to ensure that ESDC continues to have the capacity to effectively detect, investigate and address high-risk cases of abuse, misrepresentation and fraud in the Employment Insurance Emergency Response Benefit (EI ERB); and $146.1 million for the CRA to ensure it has continued capacity to advance compliance, verification and collections activities with respect to the Canada Emergency Response Benefit (CERB).

Prepared by

Name: Donna Blois

Title: Executive Director, National Enforcement and Intelligence Division

Key contact

Name: Kathleen Walford

Title: Director General, Integrity Operations

Approved by

Name: Lori MacDonald

Title: COO

Date

Date approved by COOO: April 8, 2021

Issue

Most provincial/territorial governments deduct amounts from Social Assistance benefits to reflect clients receiving certain federal benefits such as Employment Insurance and other emergency federal COVID-19 income supports.

Response

• Collaboration between different orders of government has been a keystone of Canada's approach to this global pandemic
• The Government of Canada has taken immediate, significant and decisive actions to help Canadians facing hardship as a result of the COVID-19 pandemic
• It is also important to recognize that the provinces and territories have full jurisdiction over how federal benefits are treated within their own programming, including social assistance
• We will continue to work with provincial and territorial governments to help Canadians through this crisis

Background

Most Provincial/Territorial (P/T) governments allow Social Assistance (SA) recipients to earn a certain amount of additional income through work while remaining eligible for SA benefits. Some SA recipients (including some recipients with disabilities) would have met the earnings requirements for federal emergency/recovery benefits, as well as for Employment Insurance benefits. However, P/T governments have the authority to deduct federal emergency/recovery benefit income from SA benefits because the administration of SA programs is under their jurisdiction.

In April 2020, Ministers Qualtrough and Hussen wrote letters to their P/T counterparts requesting that Canada Emergency Recovery Benefit income be fully exempt when determining eligibility and benefits under social assistance in order to maximize support to vulnerable Canadians.

Prepared by

Eric Dugas

Policy Analyst

Key contact

Richard Archambault

Manager, Strategic Policy

873-355-3951

Approved by

Poppy Vineberg

A/Senior Director 613-324-2433

Date

April 9, 2021

Training/Transfer to PTs

Employment Insurance

Non-EI Eligible

Temporary Foreign Workers

Students

Youth

Early Learning and Child Care

Seniors

News release

March 18, 2021 - Ottawa, Ontario - Department of Finance Canada

Today, the Department of Finance Canada welcomed the International Monetary Fund (IMF)'s Staff Report for the 2021 Article IV Consultation to conclude its annual Article IV mission to Canada. The report, which is consistent with the IMF's preliminary findings released last month, continues to highlight Canada's "decisive actions and unprecedented fiscal support," which has helped to limit economic scarring and protect jobs while supporting Canadians and businesses through the pandemic.

The report observed that "Canada's strong history of prudent policymaking afforded it the policy space to respond forcefully to the crisis, helping it to contain the socio-economic impact of the pandemic." The IMf estimates that without COVID-19: Financial support, "real output would have declined by an additional 7.8 percentage points in 2020 and the unemployment rate would have been 3.2 percentage points higher." The IMF currently projects Canada's real GDP to expand by 4.4% in 2021 and 4.1% in 2022.

The IMF conducted analysis which shows that had the federal government not acted with its decisive and substantial support, Canada would have reached a similar level of gross debt-to-GDP ratio from reduced output, but there would have been a much broader loss of jobs and GDP.

The IMF acknowledged that Canada's net debt remains low and that "Canada still does not have substantial fiscal vulnerabilities, partly due to its strong pre-crisis fiscal position and its sizable asset position."

The report noted that "public health policies and spending were instrumental in containing the initial spread of the virus. . . Crucially, the public health response has been guided by science and expert advice." The IMF advised that "As the economy transitions from crisis mode to recovery, it is vitally important to keep the spread of COVID-19 under control, and to avoid premature withdrawal of fiscal and monetary support."

Canada - Staff Concluding Statement of the 2021 Article IV Mission February 16, 2021

A Concluding Statement describes the preliminary findings of IMF staff at the end of an official staff visit (or 'mission'), in most cases to a member country. Missions are undertaken as part of regular (usually annual) consultations under Article IV of the IMF's Articles of Agreement, in the context of a request to use IMf resources (borrow from the IMF), as part of discussions of staff monitored programs, or as part of other staff monitoring of economic developments.

The authorities have consented to the publication of this statement. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF's Executive Board. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF Executive Board for discussion and decision.

Washington, DC: The Canadian economy was operating at close to capacity and had strong policy buffers when the COVID-19 pandemic hit. The authorities took strong and well-coordinated policy actions at the onset of the pandemic that provided crucial support to the economy and the functioning of financial markets, and helped protect lives and livelihoods. The nascent recovery that started when virus-related restrictions began to be eased last Spring has slowed as renewed restrictions were deployed to mitigate a second wave of the virus. Going forward, as the vaccination program proceeds and the economy transitions from crisis mode to recovery, it would be vitally important to contain the spread of COVID-19, and to avoid a premature withdrawal of policy support. The federal government's approach to the withdrawal of policy stimulus is a step in the right direction, but clear and credible communication about the path to normalcy will be key. Beyond the pandemic, it remains necessary to continue implementing structural reforms to increase the productive capacity of the economy and promote sustainable and inclusive growth.

Background

Employment and Social Development Canada (ESDC) is the largest federal service delivery organization in Canada, providing $136B in direct benefits to Canadians in 2019 to 2020 through the Employment Insurance (EI), Canada Pension Plan (CPP), and Old Age Security (OAS) programs. These benefits are essential to maintain a safety net for economically vulnerable Canadians, including low-income seniors, persons with disabilities, and workers who have lost their jobs through no fault of their own.

As a result of a succession of Budget investments, ESDC has made progress in addressing technical debt on EI, CPP and OAS and ensuring benefit payments continue to flow. The BDM Programme will ensure that ESDC can continue to deliver our mandate in the future.

The BDM Programme is a modern service delivery model that will standardize technology, process and operational models across EI, OAS and CPP. The BDM Programme goals are service excellence, policy agility and a transformed organization.

The BDM Programme benefits from industry expertise and lessons learned from other large IT transformation projects, including taking advantage of commercial off-the-shelf technology and agile project management practices. BDM's governance structure is well established, with clear decision-making authorities and escalation processes in place to effectively lead and govern the Programme.

BDM will improve processing speed and accuracy of payments, enhance program integrity, centralize program data and decrease operational costs. Regardless of channel, region or function, the enhanced functionalities of the new BDM solution will enable the Department to provide services that meet client needs and expectations.

The modernized platform is being implemented incrementally in 4 phases, over 10 years.

N/A

Key contact

Name: Ree Schwartz

Title: Manager, BDM Strategic Communications

Phone number: 613-406-8763

Approved by

Name: Susan Ingram

Title: DG, Enterprise Major Projects Execution

Phone number: 819-654-6163

Date

Date approved in SADMO / COO: April 07, 2021

Issue

What performance measurement approach has the Government taken to assess the Canada Emergency Response Benefit (CERB)?

Key facts

• On April 6, 2020, the Government of Canada launched the Canada Emergency Response Benefit (CERB) to provide temporary income support to workers who stopped working or had their employment or self-employment income reduced for reasons related to COVID-19. Through this benefit, eligible workers who lost their job or were unable to work due to COVID-19 received $500 per week, for up to 28 weeks, between March 15, 2020, and October 3, 2020
• Service Canada and the Canada Revenue Agency (CRA) jointly administered the CERB to ensure that Canadian workers received the money they were entitled to as quickly as possible
• As of October 4, 2020, the total dollar value of CERB benefit payments is $74.08B, with 8.9M unique applicants. Between ESDC and the CRA, 27.56M CERB applications were processed over the duration of the CERB program
• On March 25, 2021, the Office of the Auditor General (OAG) tabled its independent report on the development and delivery of the CERB in Parliament. This report presents the results of the OAG's CERB performance audit, which includes 2 recommendations that the Government has accepted. The first relates to finalizing and implementing post-payment verification for the CERB. The second calls for a formal assessment of the delivery of the CERB to apply the findings to the design and delivery of future government emergency response and recovery benefits

Response

• In response to the COVID-19 crisis, the Government provided direct and rapid income support to millions of Canadian workers impacted by closures and public health restrictions, by introducing the Canada Emergency Response Benefit (CERB) in a matter of weeks
• While the Department of Employment and Social Development is finalizing its performance measurement approach to assess the CERB, there are some key metrics currently available for the program. As of October 4, 2020, the total dollar value of CERB benefit payments is $74.08B, which supported 8.9M unique applicants. Between ESDC and the CRA, 27.56M CERB applications were processed over the duration of the CERB program. Further information on the performance measurement of the CERB program will be available in the coming months
• The Office of the Auditor General has undertaken a performance audit of the design and delivery of the CERB. The Government welcomes the Auditor General's report on the CERB. We are pleased with the findings that the rapid roll-out of income support through the CERB enabled Canadian workers to follow public health guidelines, and that focusing on post-payment verification helped to expedite benefit payments to Canadians when they needed them
• The Government also gratefully accepts the recommendations in the Auditor-General's report. Work is already underway to address the report's recommendations. A post-payment verification plan has been developed and initiated to ensure that those who received the benefit were eligible 
• To support this work, the Government's Fall Economic Statement announced $260 million over 4 years for ESDC and the CRA to help detect, investigate and address cases of fraud or misrepresentation related to the CERB
• Additionally, work will begin on an assessment of the CERB's design and delivery. This will help the Government of Canada apply lessons learned for the design of future emergency response benefits

Background

The Canada Emergency Response Benefit (CERB) was an important and necessary temporary emergency response to support Canadian workers, including the self-employed, who stopped working due to COVID-19.

The CERB was delivered by the Canada Revenue Agency and Service Canada and provided a weekly amount of $500 for up to 28 weeks, between March 15, 2020, and October 3, 2020. The CERB followed a simplified attestation-based design with integrity applied at the back end, to provide rapid temporary income support to Canadians whose employment was affected by the COVID-19 pandemic.

While the Department of Employment and Social Development Canada is finalizing its performance measurement approach to assess the CERB, the Office of the Auditor General (OAG)’s independent report on the design and delivery of the CERB was tabled in Parliament on March 25, 2021.

As indicated in the OAG report, the quick roll-out and subsequent adjustments of the CERB helped Canadians to stay at home to avoid overwhelming the country’s health care system, while allowing them to meet their financial obligations. The report acknowledges that the decision the Government made to focus on "post-payment" rather than upfront verification helped to expedite benefit payments to Canadians when they needed them.

While there are no recommendations with respect to the design of the benefit, there are 2 recommendations with respect to controls in the report addressed to both the CRA and ESDC.

The first relates to finalizing and implementing the plans for post-payment verification for the CERB. The second calls for a formal assessment of the delivery of the CERB in order to apply the findings to the design and delivery of future government emergency response and recovery benefits.

ESDC and the CRA have responded to these recommendations in the report noting that they are in agreement.

Key quotes

“Since the very beginning of this pandemic, our government’s number one priority has been to keep Canadians safe. At a time when we were asking people to stay home and flatten the curve, the CERB helped more than 8 million workers and their families stay afloat. The quick and decisive actions we took to provide income support to millions of Canadians affected by closures and public health restrictions helped buffer the worst economic impacts.”

“The Auditor General’s report highlights the incredible work done by the Canadian public service, and recognizes the approach taken by our government to roll out support quickly during an unprecedented emergency.”

Prepared by

Name: Marina Makris

Title: Policy Analyst

No phone number

Key contact

Name: Steven Coté

Title: A/Executive Director

Phone number: 819-576-2722

Approved by

Name: Elisha Ram

Title: AADM, Skills and Employment Branch

Phone number: 819-654-5212

Date

Date approved in SADMO / COO: April 13, 2021

1. Background

On March 25, 2021, the Auditor General (AG) of Canada, Karen Hogan, tabled the first 3 audits on the Government's response to the COVID-19 pandemic. Report 6 - Canada Emergency Response Benefit (CERB) will be the focus of the Public Accounts Committee (PACP) meeting of April 15, 2021.

The AG concluded that ESDC, the Department of Finance and the Canada Revenue Agency (CRA) rose to the challenge presented by the pandemic by quickly analyzing, designing and delivering CERB to Canadians. The AG will later audit the results of the Government's post-payment verification efforts.

The meeting will provide Committee Members with the opportunity to query you, as Accounting Officer, on the conclusions and recommendations found in the audit. The Commissioner of the CRA, Bob Hamilton, and the Deputy Minister of Finance Canada, Michael Sabia, will also appear on April 15. The AG will also be present.

Of note, the AG and senior principals responsible for the CERB audit are scheduled to testify before PACP on April 13, where the AG will present the audit findings to the Committee, as well as Reports on the Canada Emergency Wage Benefit, the Pandemic Preparedness and Response and the Report on infrastructure: Investing in Canada Plan.

2. Committee proceedings

On April 15th, 2021, the AG will be provided with 5 minutes for an opening statement. The AG will typically share her remarks with witnesses in advance of the meeting.

You and your counterparts will each have 5 minutes for remarks. Furthermore, ESDC is required to provide a detailed action plan, in both official languages, to the Committee and the Office of the Auditor General of Canada 48 hours in advance of the meeting, which will also be posted on the Committee website. The Action Plan must address the audit recommendations by including specific actions, and timelines for completion.

PACP is 1 of 4 committees where the chair is a member of the official opposition. The Chair is Ms. Kelly Block, a member of the Conservative Party of Canada (CPC). The 2 Vice-Chairs are Liberal MP Lloyd Longfield and Bloc Québécois (BQ) MP Maxime Blanchette-Joncas. During a minority Parliament, the Government does not hold the majority at Committee.

Other members include:

• Luc Berthold (CPC)
• Kody Blois (Liberal)
• Greg Fergus (Liberal)
• Matthew Green New Democratic Party (NDP)
• Philip Lawrence (CPC)
• Francesco Sorbara (Liberal)
• Len Webber (CPC)
• Jean Yip (Liberal)

PACP has agreed that questioning of witnesses would be allocated as follows:

Round 1: 6 minutes for the first questioner of each party as follows:

• Conservative Party
• Liberal Party
• Bloc Québécois
• New Democratic Party

For the second and subsequent rounds, the order and time for questioning is as follows:

• Conservative Party, 5 minutes
• Liberal Party, 5 minutes
• Bloc Québécois, 2 and a half minutes
• New Democratic Party, 2 and a half minutes
• Conservative Party, 5 minutes
• Liberal Party, 5 minutes.

3. Parliamentary and media analysis

The 3 AG Audit Reports were tabled in the House of Commons on March 25 at 2:00 p.m. before Question Period. There were no questions on CERB. However, since the implementation of CERB, concerns related to fraud and abuse have been repeatedly raised in Committees and during Question Period. The timeline and cost of the post-payment verification will likely be raised during the April 15th Committee meeting.

Standing Committee on Public Accounts (PACP)

Mandate of the committee

When the Speaker tables a report by the Auditor General in the House of Commons, it is automatically referred to the Public Accounts Committee. The Committee selects the chapters of the report it wants to study and calls the Auditor General and senior public servants from the audited organizations to appear before it to respond to the Office of the Auditor General's findings. The Committee also reviews the federal government's consolidated financial statements – the Public Accounts of Canada – and examines financial and/or accounting shortcomings raised by the Auditor General. At the conclusion of a study, the Committee may present a report to the House of Commons that includes recommendations to the government for improvements in administrative and financial practices and controls of federal departments and agencies.

Government policy, and the extent to which policy objectives are achieved, are generally not examined by the Public Accounts Committee. Instead, the Committee focuses on government administration – the economy and efficiency of program delivery as well as the adherence to government policies, directives and standards. The Committee seeks to hold the government to account for effective public administration and due regard for public funds.

Pursuant to Standing Order 108(3) of the House of Commons, the mandate of the Standing Committee on Public Accounts is to review and report on:

• the Public Accounts of Canada
• all reports of the Auditor General of Canada
• the Office of the Auditor General's Departmental Plan and Departmental Results Report, and
• any other matter that the House of Commons shall from time to time refer to the Committee

The Committee also reviews:

• the federal government's consolidated financial statements
• the Public Accounts of Canada
• makes recommendations to the government for improvements in spending practices; and
• the Estimates of the Office of the Auditor General

Other Responsibilities:

• the economy, efficiency and effectiveness of government administration
• the quality of administrative practices in the delivery of federal programs
• Government's accountability to Parliament with regard to federal

Committee Members

Chair

Kelly Block, Conservative, Carlton Trail—Eagle Creek, PACP Member and Chair since Oct 2020

Vice-chair

Lloyd Longfield, Liberal, Guelph, PACP Member and Vice-Chair since Feb 2020

Maxime Blanchette-Joncas, Bloc Québécois, Rimouski-Neigette—Témiscouata—Les Basques, PACP Member and Vice-Chair since Feb 2020, Public Accounts Critic

Members

Luc Berthold, Conservative, Mégantic—L'Érable, PACP Member since Oct 2020, TBS Critic

Philip Lawrence, Conservative, Northumberland—Peterborough South, PACP Member since October 2020, National Revenue Critic

Len Webber, Conservative, Calgary Confederation, PACP Member since Oct 2020

Matthew Green, New Democratic Party, Hamilton Centre, PACP Member since Feb 2020, TBS Critic

Kody Blois, Liberal, Kings—Hants, PACP Member since Feb 2020

Greg Fergus, Liberal, Hull—Alymer, PACP Member since May 2019, Parliamentary Secretary TBS and Digital Government

Francesco Sorbara, Liberal, Vaughan—Woodbridge, PACP Member since Feb 2020

Jean Yip, Liberal, Scarborough—Agincourt, PACP Member since Jan 2018

Kelly Block (Saskatchewan - Carlton Trail—Eagle Creek), Conservative, Chair

• Elected as the Member of Parliament in 2015 for Carlton Trail—Eagle Creek, previously for Saskatoon—Rosetown—Biggar from 2008 to 2015
• Served as vice-chair on the Standing Committee on Transport, Infrastructure and Communities in the 42nd Parliament
• Member of the Liaison Standing Committee
• Previous member of the Standing Committee of Government Operations and Estimates in the 43rd and 41st Parliament, the Standing Committee of Finance in the 40th Parliament
• Served as the Opposition critic for Public Services and Procurement Canada (appointed by Andrew Scheer)
• Prior to her election, Mrs. Block served 2 terms as the first female mayor of Waldheim, Saskatchewan, as chairperson of the Gabriel Springs Health District, and was awarded the Maclean's Parliamentarian of the Year – Rising Star – Award in June 2010

Lloyd Longfield (Ontario—Guelph), Liberal, First Vice-Chair

• Elected as the Member of Parliament for the riding of Guelph in 2015
• Former member of the Public Accounts Committee (PACP) in the 43rd Parliament and is a standing Member of the Environment and Sustainable Development Committee (ENVI)
• Former Executive Director of the Guelph Chamber of Commerce, and former business executive

Maxime Blanchette-Joncas (Québec—Rimouski-Neigette – Témiscouata – Les Basques), Bloc Québécois, Second vice-chair

• Elected as the Member of Parliament for Rimouski-Neigette—Témiscouata—Les Basques in the 2019 federal election
• BQ Critic for Public Accounts
• Preceded in his riding by Guy Caron who served as the leader of the NDP from 2017 to 2019
• Business Administration graduate from the University of Quebec in Rimouski and former administrative officer at the Business Development Bank of Canada
• Was regional president of the Youth Forum of the Bloc Québécois

Luc Berthold (Mégantic—L'Érable), Conservative, Member

• Elected as the Member of Parliament for Mégantic—L'Érable in 2015
• Critic for Treasury Board
• Previously the Vice-Chair of the Standing Committee on Transport, Infrastructure and Communities, and the Standing Committee on Agriculture and Agri-Food
• Prior to his election, Mr. Berthold was Nathalie Normandeau's Political Assistant, and communications advisor for the Leader of the Official Opposition in 1999, the Interim Director of communications for Quebec's Liberal Party in 2006, and worked as a speaker, coach and gave leadership training sessions

Philip Lawrence (Northumberland—Peterborough South), Conservative, Member

• Elected as the Member of Parliament for the riding of Northumberland—Peterborough South in the 2019 federal election
• Shadow Minister of National Revenue
• Former member of Standing Committee of Justice and Human Rights
• Prior to his election, Mr. Lawrence received his BA from Brock University in Political Science, he attended Osgoode Hall Law School and the Schulich School of business to obtain his law degree and MBA and volunteered at the Financial Planning Standards Council

Len Webber (Calgary Confederation), Conservative, Member

• Elected as the Member of Parliament for the riding of Calgary Confederation in 2015
• Former Vice-Chair of the Standing Committee on Health in the 42nd Parliament
• Previously a member on the Standing Committee on Health, the Subcommittee on Sports-Related Concussions in Canada of the Standing Committee on Health and the Subcommittee on Agenda and Procedure of the Standing Committee on Health
• Prior to his election, Mr. Webber was a Member of the Legislative Assembly of Alberta, representing the constituency of Calgary-Foothills from 2004 to 2014, work as an apprentice electrician and managed his own contracting company for 10 years, and served as vice president and director of the Webber Academy, a private, non-profit school in southwest Calgary for children from junior kindergarten to grade 12 founded by his father.

Matthew Green (Ontario—Hamilton Centre), NDP, Member

• Elected as the Member of Parliament foe Hamilton Centre in the 2019 federal election in the riding formerly held by NDP MP David Christopherson
• NDP Critic for National Revenue/CRA, Public Services and Procurement
• Former Councillor for the City of Hamilton (2014 to 2018)
• Member of the House of Commons Standing Committee on Public Accounts (PACP), the Standing Committee on Government Operations and Estimates (OGGO), and the Subcommittee on Agenda and Procedure of the Standing Committee on Government Operations and Estimates
• Member of the Canada-Africa Parliamentary Association (CAAF) and the Canadian Section of ParlAmericas (CPAM)

Kody Blois (Kings—Hants), Liberal, Member

• Elected as the Member of Parliament for the riding of Kings—Hants in the 2019 federal election, in the riding formerly held by former TBS President Scott Brison
• Current member of the Standing Committee for Agriculture and Agri-Food, and the Subcommittee on Agenda and Procedure of the Standing Committee on Agriculture and Agri-Food
• Former member of the Standing Committee for Agriculture and Agri-Food, and the Standing Committee on Public Accounts
• Blois completed degrees in commerce, law, and public administration - which sparked his interest in serving his community

Greg Fergus (Hull—Alymer), Liberal, Member, Parliamentary Secretary to the President of the Treasury Board and Minister of Digital Government

• Elected as the Member of Parliament for the riding of Hull—Aylmer in 2015
• Member of the Standing Committee on Access to Information, Privacy and Ethics
• Former member of the Standing Committee on Finance, and the Standing Committee on Public Accounts
• Current and Former Parliamentary Secretary to the President of the Treasury Board and Minister of Digital Government. Former Parliamentary Secretary to the Minister of Innovation, Science and Economic Development
• Former National Director of the Liberal Party of Canada and former political staffer in various Ministerial offices

Francesco Sorbara (Vaughn—Woodbridge), Liberal, Member

• Elected as the Member of Parliament for the riding of Vaughan—Woodbridge in 2015
• Member of the Standing Committee on Access to Information, Privacy and Ethics
• Former member of the Standing Committee on Finance, as well as the Subcommittee on Agenda and Procedure of the Standing Committee on Finance, and the Standing Committee on Public Accounts
• Parliamentary Secretary to the Minister of National Revenue
• Sorbara is a chartered financial analyst and worked in the global financial markets for nearly 20 years in both Canada and the United States for Scotiabank, JPMorgan Chase, and global credit rating agency DBRS

Jean Yip (Scarborough—Agincourt), Liberal, Member

• First elected in a by-election on December 11, 2017 as the Member of Parliament for the riding of Scarborough—Agincourt. Elected in 2019 as the Member of Parliament for the riding of Scarborough—Agincourt
• Current member of the Special Committee on Canada-China Relations
• Former member of the Public Accounts committee, and the Government Operations and Estimates Committee

Topic of Meeting

Briefing with the Auditor General concerning the reports tabled in the House on Thursday, March 25, 2021

Members in Attendance

LPC: Lloyd Longfield (Vice-Chair), Kody Blois, Greg Fergus, Francesco Sorbara, Jean Yip

CPC: Kelly Block (Chair), Luc Berthold, Phillip Lawrence, Len Webber

NDP: Matthew Green

BQ: Maxime Blanchette-Joncas (Vice-Chair) replaced by Julie Vignola

Witnesses

Office of the Auditor General

• Karen Hogan, Auditor General of Canada
• Nicholas Swales, Principal
• Carol McCalla, Principal
• Chantal Richard, Principal
• Philippe Le Goff, Principal
• Jo Ann Schwartz, Principal

Summary

The first hour of the meeting (11 am to noon) took place in camera, with a briefing with the Auditor General on motion concerning news articles.
The second hour with the Auditor General dealt with the 4 reports tabled on March 25:

• Report 6—Canada Emergency Response Benefit
• Report 7—Canada Emergency Wage Subsidy
• Report 8—Pandemic Preparedness, Surveillance, and Border Control Measures
• Report 9—Investing in Canada Plan

Members focused their questions on PHAC's handling of the pandemic and the findings in the AG's report on Investing in Canada Plan as these reports elicited the most criticism. There were no questions on the CERB.

Opening Remarks

The Auditor General outlined the findings in Reports 6, 7, 8 and 9 and was critical of the Investing in Canada Plan (Report 9) and pandemic preparedness, surveillance, and border control measures (Report 8). While the OAG found that the government was not as ready as it could have been for a pandemic of this magnitude, the public service mobilized, prioritized the needs of Canadians and quickly delivered support and services. She noted that Finance, ESDC and CRA rose to the challenge and quickly analyzed, designed and delivered the Canada Emergency Response Benefit (CERB) (Report 6). However, with the decision to rely on personal attestations, post-payment verification becomes very important. The AG is aware that ESDC and CRA are working to start their post-payment verification efforts relating to the CERB later this year. She remarked that work in this area, will be the subject of a future audit.

The AG also commented on the Canada Emergency Wage Subsidy (CEWS) (Report 7), of which she observed a similar focus on getting help out quickly, in this case to businesses, and that Finance and CRA worked together within short timeframes to support the development and implementation of the program. However, she noted that the design and rollout of the subsidy have highlighted pre-existing weaknesses in CRA's systems, approaches and data. She is also expecting a follow up audit on the CEWS.

She ended her opening remarks by noting that the pandemic has highlighted the importance of dealing with known issues, whether it's agreeing on which organization has the lead, who will do what when, who will report what to whom, or replacing outdated systems or processes and addressing issues in data quality and that Government organizations need to do collaboration better.

Overview of Q and A

CPC – Len Webber asked about the Investment in Canada Plan's absence of clear and complete reporting, any privacy breaches found in audits during the pandemic.

LPC – Lloyd Longfield inquired about awareness and reporting of infrastructure projects by various orders of governments, whether the AG works with her provincial and municipal counterparts; and vaccine rollout in Canada.

BQ – Julie Vignola raised questions regarding the country's pandemic preparedness following the SARS outbreak in 2002; delay due to bureaucracy or PHAc scientists let go by previous Governments; and challenge for the OAG to take on a comprehensive audit on Investment in Canada Plan.

NDP – Matthew Green asked about PHAC's inadequate pandemic preparedness after SARS and H5N1 outbreaks in the past and National Emergency Strategic Stockpile.

CPC – Len Webber sought the AG's clarification and comments on the CEWS and not requesting the SIN in the application forms, and whether CRA applied controls in pre-payment. He commented that his constituents benefited from the CERB but may have to return some of that money.

LPC – Jean Yip sought explanations and comments on PHAC's lack of progress in pandemic preparedness in the past 2 decades; size of bureaucracy in causing delays; collaboration between PHAC and CBSA on quarantine measures; and specific report that stood out (A: focus on service instead of process was the most outstanding, as seen with CERB and CEWS).

BQ – Julie Vignola asked the AG whether she is satisfied with the resources provided to the OAG for their multitude pandemic audit work, and whether departments' and agencies' collaborated with the OAG in their audits.

NDP – Matthew Green asked for the AG's comments on PHAC's failure in their risk assessment and preparedness for the pandemic.