Canada Education Savings Grant
Disclaimer: RESP promoters
The information contained on this page is technical in nature and is intended for Registered Education Savings Plan (RESP) and Canada Education Savings Program promoters. For general information, visit the RESP section.
Official title: Clarification of Promoter Agreement - Audit of Books and Records
- February 19, 2010
- Notice #380 - Clarification of Promoter Agreement - Audit of Books and Records
The purpose of this information bulletin is to provide further information on the last changes to the Promoter Agreements (April 2009) pertaining to paragraph 3.8 (e) and how it relates to the compliance review process.
In April 2009 all Promoter Agreements with Human Resources and Skills Development Canada were renewed. These agreements contained a new clause under the Audit Books and Records section.
This addition is part of the program's continuing efforts to improve the accountability and stewardship of the incentives we administer.
The new clause confirms the promoter's commitment to address observations made during a compliance review and HRSDC's right to take appropriate action should compliance issues not be addressed.
Compliance Review Process
The Canada Education Savings Program (CESP) conducts regular compliance reviews of all RESP promoters. The purpose of these reviews is to ensure that promoter practices and procedures related to the administration of Canada Education Savings Grants, Canada Learning Bonds and Alberta Centennial Education Savings Grants comply with the related legislation, regulations, policies and agreements.
CESP provides a compliance review report to an RESP promoter within 60 days following a review, and the promoter has 30 days to provide a detailed corrective action plan.
CESP will follow-up with the promoter to validate if the action plan has been implemented within the agreed upon time frame. Should the corrective measures identified in the promoter's action plan not be addressed within the agreed upon time frames, HRSDC would consider the promoter to be in breach of the Promoter Agreement.
In this case, HRSDC will formally notify senior management within the organization to address the outstanding corrective measures. The promoter will have 60 days to correct the breach or another period specified by the Minister.
If the corrective measures are still not addressed, the promoter would be considered to be in default of the Promoter Agreement and HRSDC has the option to invoke the suspension of payments until the situation is remedied under section 5.4 of the Promoter Agreement. In this case, HRSDC will provide a written notice of its intention to suspend payments by registered mail to the signatory of the Promoter Agreement at the address currently on file. If corrective actions are not taken within 60 days, grant payments will be suspended.
It is HRSDC's intention to work together with RESP promoters to improve the administration of education savings incentives while at the same time, maintaining the integrity and stewardship of the government's investment in the future education of Canada's children.
If you have any questions regarding this Information Bulletin, please send your inquiries to the CESP general delivery mailbox firstname.lastname@example.org
References to Promoter Agreement:
3.8 (e) "The Promoter agrees that any observation made during an audit or compliance review must be addressed. The Promoter will provide the Minister with detailed corrective plans and implementation timelines to resolve the audit or compliance observations within 30 calendar days. Should the corrective measures not be implemented within the agreed timelines, the Minister may invoke the measures described under section 5.4 of this Promoter agreement".
5.4 "The Promoter acknowledges that in the event the Minister gives the Promoter written notice of default pursuant to paragraph 5.2(b), the Minister may suspend any further payment of the CES Grant or the CLB, or both, as the case may be, in the RESPs administered by the Promoter until the end of the period given to the Promoter to remedy the Event of Default".
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