OAG Recommendation

PARLIAMENTARY TEMPLATE

FOR THE STANDING COMMITTEE ON PUBLIC ACCOUNTS:

Detailed Canada Revenue Agency Action Plan to Address OAG Recommendations

Tabling Date: April 3, 2012

Chapter Number: 4

Title: Non-Filers and Non-Registrants Performance Audit

OAG Recommendation	CRA Response	Action Plans / Status / Comments
4.29 Recommendation. The Agency should determine the effectiveness of both its file selection and rejection process for the total population of potential non-filers and non-registrants.	Agreed. The Agency will develop a methodology for determining the effectiveness of the file selection and rejection process. It is expected that this methodology will be applied to the non-filer/non-registrant population in 2013-14; and in 2014-15, the file selection and rejection process will be adjusted, as required, based on the evaluation of the testing results from previous years.	· The Agency recognizes the need for an effective file selection and rejection process for dealing with non-filers and non-registrants who do not file their tax return promptly or register for GST/HST when required to do so. · Starting in 2012-13, steps will be taken to develop the appropriate methodology for determining the effectiveness of its the file selection and rejection process. · Subsequently, in 2014-15, the Agency will make the appropriate adjustments to its processes based on an evaluation of data gathered from test results.

OAG Recommendation

CRA Response

Action Plans / Status / Comments

4.29 Recommendation. The Agency should determine the effectiveness of both its file selection and rejection process for the total population of potential non-filers and non-registrants.

Agreed. The Agency will develop a methodology for determining the effectiveness of the file selection and rejection process. It is expected that this methodology will be applied to the non-filer/non-registrant population in 2013-14; and in 2014-15, the file selection and rejection process will be adjusted, as required, based on the evaluation of the testing results from previous years.

· The Agency recognizes the need for an effective file selection and rejection process for dealing with non-filers and non-registrants who do not file their tax return promptly or register for GST/HST when required to do so.

· Starting in 2012-13, steps will be taken to develop the appropriate methodology for determining the effectiveness of its the file selection and rejection process.

· Subsequently, in 2014-15, the Agency will make the appropriate adjustments to its processes based on an evaluation of data gathered from test results.

OAG Recommendation	CRA Response	Action Plans / Status / Comments
4.37 Recommendation. The Agency should implement a robust risk assessment system to prioritize its selection of files.	Agreed. As noted in this report, the Agency’s current effort towards improving file selection through data analysis is encouraging. The Agency is committed to developing and applying new risk assessment methodologies and business intelligence solutions to improve the selection of both low and high-complexity files. The Agency will continue this work in 2012-13 so that a more robust risk assessment process can be implemented by 2015-16.	· The Agency recognizes the need to have the most robust risk assessment system possible in place to prioritize all aspects of its work selection process. · To that end, the Agency will continue to develop and apply new risk assessment methodologies and business intelligence solutions to improve file selection activities. · The Agency will continue its research in 2012-13 and 2013-14 and pilot and test new criteria in 2014-15 so as to have a more robust risk assessment system in place by 2015-16.

OAG Recommendation

CRA Response

Action Plans / Status / Comments

4.37 Recommendation. The Agency should implement a robust risk assessment system to prioritize its selection of files.

Agreed. As noted in this report, the Agency’s current effort towards improving file selection through data analysis is encouraging. The Agency is committed to developing and applying new risk assessment methodologies and business intelligence solutions to improve the selection of both low and high-complexity files. The Agency will continue this work in 2012-13 so that a more robust risk assessment process can be implemented by 2015-16.

· The Agency recognizes the need to have the most robust risk assessment system possible in place to prioritize all aspects of its work selection process.

· To that end, the Agency will continue to develop and apply new risk assessment methodologies and business intelligence solutions to improve file selection activities.

· The Agency will continue its research in 2012-13 and 2013-14 and pilot and test new criteria in 2014-15 so as to have a more robust risk assessment system in place by 2015-16.

OAG Recommendation	CRA Response	Action Plans / Status / Comments
4.76 Recommendation. The Agency should follow through on its previous commitments to develop meaningful performance measures and indicators.	Agreed. Performance indicators should evolve and adapt to changes in the program. Existing indicators continue to provide relevant information on program activities, expenditures and results. New indicators, however, can provide even more meaningful information if the systems to collect and report on the data can be created. System changes will be governed by Agency and Government of Canada funding and expenditure policies. Beginning in 2012-13, the Agency will, in line with the OAG recommendation, review the relevant performance indicators to ensure they further support program reporting requirements.	· The Agency recognizes the need for the development of improved performance indicators that should evolve and adapt to changing reporting needs. · Although existing indicators provide relevant information on program activities, expenditures and results, the Agency will evaluate performance indicators in 2012-13 to ensure that they continue to support program reporting requirements.

OAG Recommendation

CRA Response

Action Plans / Status / Comments

4.76 Recommendation. The Agency should follow through on its previous commitments to develop meaningful performance measures and indicators.

Agreed. Performance indicators should evolve and adapt to changes in the program. Existing indicators continue to provide relevant information on program activities, expenditures and results. New indicators, however, can provide even more meaningful information if the systems to collect and report on the data can be created. System changes will be governed by Agency and Government of Canada funding and expenditure policies. Beginning in 2012-13, the Agency will, in line with the OAG recommendation, review the relevant performance indicators to ensure they further support program reporting requirements.

· The Agency recognizes the need for the development of improved performance indicators that should evolve and adapt to changing reporting needs.

· Although existing indicators provide relevant information on program activities, expenditures and results, the Agency will evaluate performance indicators in 2012-13 to ensure that they continue to support program reporting requirements.

OAG Recommendation	CRA Response	Action Plans / Status / Comments
4.83 Recommendation. The Agency should include its research findings in its planning and reporting process, to effectively manage the risk of non-filers and non-registrants.	Agreed. The Agency has made significant progress in conducting research and gathering business intelligence through the acquisition of data, technology and the Agency research agenda. The Agency recognizes that there are opportunities to improve how this intelligence is incorporated into the planning and reporting processes. By 2013-14, the Agency will develop and implement a formal process to achieve this goal.	· The Agency will build on the progress that it has made in conducting research and gathering business intelligence, as it recognizes the need to fully incorporate research findings into its planning and reporting processes. · Beginning in 2012-13 through 2013-14, the Agency will perform an analysis of how it currently incorporates research into its planning process and implement a more formalized approach governing how research findings are incorporated into the planning and reporting processes.

OAG Recommendation

CRA Response

Action Plans / Status / Comments

4.83 Recommendation. The Agency should include its research findings in its planning and reporting process, to effectively manage the risk of non-filers and non-registrants.

Agreed. The Agency has made significant progress in conducting research and gathering business intelligence through the acquisition of data, technology and the Agency research agenda. The Agency recognizes that there are opportunities to improve how this intelligence is incorporated into the planning and reporting processes. By 2013-14, the Agency will develop and implement a formal process to achieve this goal.

· The Agency will build on the progress that it has made in conducting research and gathering business intelligence, as it recognizes the need to fully incorporate research findings into its planning and reporting processes.

· Beginning in 2012-13 through 2013-14, the Agency will perform an analysis of how it currently incorporates research into its planning process and implement a more formalized approach governing how research findings are incorporated into the planning and reporting processes.