Tuesday, April 7, 2020

AG REPORTS ON GOVERNMENT CHEQUE WRITING

The reviews of the social insurance number (SIN) system, which underpins much of the income transfer system in Canada is particularly interesting. The evaluation in 1998 raised enormous concerns about the integrity of the SIN system and its vulnerability to fraud. For instance, the AG noted that there were 3.8 million more SINs for Canadians 20 years and older than actual people in that age group; there were 100 times as many active SINs for those over the age of 100 as living Canadians over that age; and that over 50 per cent of SINs had no supporting documentation.
A follow-up report was completed in 2002 that noted many problems had persisted. The AG concluded there were five million more SINs for people over the age of 20 than there were Canadians of those ages and that since 1998 more than half of all SINs were not properly verified with the applicant’s identity and citizenship status. A subsequent report in 2007 concluded that progress on previously identified problems with the SIN system was “unsatisfactory,” largely because outstanding issues of concern had not been resolved.
The AG reports also include specific program evaluations that are enlightening. For instance, the AG reviewed the government’s heating relief program in 2001. The program was intended to provide money to low and modest income households impacted by an increase in heating costs. Seems straightforward but the AG’s report found at least 40 per cent of recipients were not low-income or did not incur increased heating costs, approximately 90,000 Canadians in need of assistance received no relief due to a technicality in eligibility, and between 25 per cent to 35 per cent of individuals received money despite having heating included in their rent or heating with electricity. The report also found that at least 4,000 taxpayers not living in Canada received money, up to 1,600 prisoners may have received money and at least 7,500 deceased people received payments.

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