ASSISTANT AUDITOR
GENERAL
OFFICE OF THE
AUDITOR GENERAL OF CANADA
BEFORE THE STANDING COMMITTEE ON PUBLIC ACCOUNTS
2021 SPRING REPORTS OF THE AUDITOR GENERAL OF
CANADA
REPORT 4—CANADA CHILD BENEFIT—CANADA REVENUE AGENCY
4 May 2021
1. Madam Chair, thank you for this opportunity to discuss our report on the Canada Child Benefit, which was tabled in Parliament on February 25, 2021. Joining me today are Philippe Le Goff, who was the principal responsible for the audit, and Lucie Després, who led the audit team.
2.
The Canada Child Benefit
provides a non-taxable monthly payment to eligible families, based on their net
family income. In the 2019–2020 fiscal year, the program
allocated $24.5 billion to parents in Canada who were responsible for 5.9
million children under the age of 18. The Canada Child
Benefit is a key public policy tool for reducing inequalities and poverty among
low‑income families.
3. Overall, we found that the Canada Revenue Agency ensured that the payments to millions of eligible families were accurate and timely. The agency had effective systems and processes to assess the eligibility of recipients. However, we found opportunities to improve the program’s efficiency and prevent its misuse. For example, requiring proof of birth at the time of application for children under the age of 11 months who were born in Canada would help agency staff verify a family’s eligibility.
4.
We also found that the agency
sometimes lacked the latest information when it determined applicants’ eligibility
for the program and when it calculated payments. For example, in the sample we
analyzed, we found that the agency was not always informed of changes, such as when
a recipient left Canada. Payments continued until the agency received updated
account information or until a parent ceased filing a Canadian income tax
return.
5.
Our audit
also examined the one-time payment made to support more families at the
beginning of the pandemic in May 2020. We found that the modified formula extended
the benefit to an additional 265,000 families. The one-time payments were found
to be accurate.
6.
Finally, we
found that the female presumption concept presented a challenge for the administration
of the program, especially because of the diversity of families in Canada today.
According to the program’s conditions, benefit payments go to the parent who is
the primary caregiver. By law, the primary caregiver is presumed to be the
female parent. We found that in some cases, the parent who in
reality had primary responsibility for the care of the child did not receive
the payment initially. In our view, the administration of the program would
gain in efficiency by enhancing its procedures and communications to mitigate
the confusion and sensitivities caused by this concept.
7.
The Canada
Revenue Agency agreed with both of our recommendations.
8.
Madam Chair, this
concludes my opening remarks. We would be pleased to answer any questions the committee
may have. Thank you.