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2009-10
Departmental Performance Report

Canada Revenue Agency

Supplementary Information (Tables)

Sources of Respendable and Non-Respendable Non-Tax Revenue

By virtue of its mandate, the Canada Revenue Agency (CRA) is responsible for collecting tax revenue as described earlier in the Audited Financial Statements – Administered Activities. Similar to other government departments and agencies, the CRA also collects non-tax revenue that includes interest, penalties and other charges applied under the Customs, Excise/GST and Taxation laws as well as revenues from the refund of previous year’s expenditures and from the provision of goods and non-tax services. As detailed below, non-tax revenues are further divided between respendable and non-respendable. Respendable non-tax revenues are received by the CRA for services provided to individuals or organizations that have not been funded by Parliament, e.g., costs recovered under Tax Collection Agreements with the provinces. Non-respendable non-tax revenues are those received by the CRA for which the Agency does not have the authority to re-spend, e.g., recovery of employee benefits.

Respendable Non-Tax Revenue1

(in thousands of dollars)					2009-2010
Program Activity			Actual 2007-2008	Actual 2008-2009	Planned Revenues	Total Authorities	Actual
Taxpayer and Business Assistance			40,106	43,405	45,023	47,763	47,763
Assessment of Returns and Payment Processing			42,911	52,046	50,326	59,642	59,642
Accounts Receivable and Returns Compliance			108,760	110,212	113,254	133,680	133,680
Reporting Compliance			2,572	6,157	7,282	12,618	12,618
Appeals			12,419	13,553	15,539	15,581	15,581
Benefit Programs			1,431	7,267	1,181	2,671	2,671
Internal Services^{[Footnote 1]}			226,261	258,661	249,804	242,918	242,918
Taxpayers’ Ombudsman			-	-	-	-	-
Total			434,460	491,301	482,409	514,872	514,872

Respendable Revenue pursuant to Section 60 of the *Canada Revenue Agency Act* (cash receipts)
	Refund of Previous Year’s Expenditures		508	3,219	498	786	786
	Ruling Fees^{[Footnote 2]}		2,117	1,990	2,000	1,531	1,531
	Advance Pricing Agreement		528	745	803	849	849
	Other Services of a Regulatory Nature		27	23	10	22	22
	Administration of Provincial Programs^{[Footnote 3]}		30,472	62,816	56,315	64,845	64,845
	Other Services of a Non-Regulatory Nature		434	354	558	324	324
	Sales of Goods and Information Products		120	120	140	120	120
	Other Fees & Charges		49	189	40	204	204
	Services to Other Government Departments (OGD)^{[Footnote 4]}		142,069	159,193	155,340	155,163	155,163
		Sub-total	176,324	228,649	215,704	223,844	223,844
Less: Amounts Recovered on behalf of OGDs^{[Footnote 5]}			4,561	9,064	10,901	9,924	9,924
Total Respendable Revenue pursuant to Section 60 of the *Canada Revenue Agency Act* (cash receipts)			171,763	219,585	204,803	213,920	213,920
Proceeds from the Disposal of Surplus Crown Assets			126	785	–	111	111
Revenues Credited to Vote [note 1]
	Canada Pension Plan administration work		122,227	127,512	130,108	133,774	133,774
	Employment Insurance administration work		140,344	143,419	147,498	167,067	167,067
Total Revenues Credited to Vote [note 1]			262,571	270,931	277,606	300,841	300,841
Total Respendable Non-Tax Revenue			434,460	491,301	482,409	514,872	514,872

^{[Footnote 1]} Commencing in the 2009-2010 Estimates cycle, the resources for Program Activity Internal Services are displayed separately from other program activities; they are no longer distributed among the remaining Program Activities. 2007-2008 and 2008-2009 Actuals have been restated to more accurately reflect the total revenue attributable to each Program Activity and to provide a better comparison of revenue information by Program Activity between fiscal years.

^{[Footnote 2]} CRA charges taxpayers (based on a regulated user fee) for providing tax rulings in advance of a transaction taking place (to provide tax certainty).

^{[Footnote 3]} Comprised mainly of an administration fee charged to the provinces for recoveries provided under the tax collection agreements (TCA) ($23.7M) and other provincial cost recovery initiatives e.g., Corporate Tax Administration for Ontario ($20.4M), provincial benefit programs ($19.5M), and refund setoffs ($1.2M).

^{[Footnote 4]} Comprised mainly of information technology services provided to the Canada Border Services Agency ($134.6M) and to Service Canada ($16.7M).

^{[Footnote 5]} Comprised mainly of amounts recovered on behalf of Public Works and Government Services Canada and Treasury Board of Canada Secretariat (e.g., contributions to Employee Benefit Plans).

Non-Respendable Non-Tax Revenue^{^{[Footnote 1]} , ^{[Footnote 2]}}

(in thousands of dollars)					2009-2010
Program Activity			Actual 2007-2008	Actual 2008-2009	Planned Revenues	Actual
Taxpayer and Business Assistance			5,898	8,376	871	8,395
Assessment of Returns and Payment Processing			6,760	10,402	3,151	10,043
Accounts Receivable and Returns Compliance			15,355	19,413	213	22,108
Reporting Compliance			113	1,126	1,229	2,853
Appeals			2,412	2,893	1,393	3,729
Benefit Programs			426	1,411	2,734	261
Internal Services			13,050	7,453	44,592	8,287
Taxpayers’ Ombudsman			-	-	-	-
Total			44,014	51,074	54,183	55,676
Details of Non-Respendable Non-Tax Revenue
Refunds of previous year’s expenditures
	Adjustments to prior year’s payables				712
Sales of goods and services
	Public building and property rental				133
		Lease and use of public property	126	92		88
Other fees and charges
	Recovery of contributions to employee benefit plans		41,650	48,565	48,511	53,248
Miscellaneous			2,238	2,417	4,827	2,340
Total Non-Respendable Non-Tax Revenue			44,014	51,074	54,183	55,676

^{[Footnote 1]} This table reflects the approach taken in the Agency’s Audited Financial Statements where a clear distinction is made between Agency activities and administered activities. Interest and penalties collected for personal, corporate and other taxes, which are part of the Agnecy’s administered activities rather than Agency’s activities, are excluded.

^{[Footnote 2]} Commencing in the 2009-2010 Estimates cycle, the resources for Program Activity Internal Services are displayed separately from other program activities; they are no longer distributed among the remaining Program Activites. 2007-2008 and 2008-2009 Actuals have been restated to more accurately reflect the total revenue attributable to each Program Activity and to provide a better comparison of revenue information by Program Activity between fiscal years.

User Fees/External Fees

User Fees Act – Advance Income Tax Ruling Fee
A. User Fee	Advance Income Tax Ruling Fee
Fee Type	Regulatory (R)
Fee Setting Authority	Financial Administration Act – 19(b)
Date Last Modified	2000-2001
Performance Standards	The key service standard target is to issue advance income tax rulings to taxpayers within an average of 60 calendar days of receipt of all essential information. The Canada Revenue Agency (CRA) Quality Management System requires a telephone acknowledgement of receipt of the request within 24 business hours. Within 14 days, a review of the file for completeness is conducted and an acknowledgement letter, complete with a contact name and request for any missing information (if required) is sent to the client. The client is again contacted by telephone when the file is assigned for processing. Where a delay is unavoidable, clients are contacted and delays are discussed with them.
Performance Results	Actual 2009-2010 results: 98 days
(in thousands of dollars)
2009-2010			Planning Years
Forecast Revenue	Actual Revenue	Full Cost	Fiscal Year	Forecast Revenue	Estimated Full Cost
2,000	1,531	4,036	2010-2011	2,000	4,036
			2011-2012	2,000	4,036
			2012-2013	2,000	4,036
B. Other Information:
As a result of the latest Management Accountability Framework VII assessment, the CRA will be creating a user fee policy instrument outlining how user fees are to be determined, applied and managed. This will include a standard review cycle to evaluate how external user fee practices are being managed, to ensure that they are still relevant, and determine if they need to be updated to reflect current operating environment requirements.

Policy on Service Standards for External Fees – Advance Income Tax Ruling Fee
A. External Fee	Advance Income Tax Ruling Fee
Service Standard	The key service standard target is to issue advance income tax rulings to taxpayers within an average of 60 calendar days of receipt of all essential information. The Canada Revenue Agency (CRA) Quality Management System requires a telephone acknowledgement of receipt of the request within 24 business hours. Within 14 days, a review of the file for completeness is conducted and an acknowledgement letter, complete with a contact name and request for any missing information (if required) is sent to the client. The client is again contacted by telephone when the file is assigned for processing. Where a delay is unavoidable, clients are contacted and delays are discussed with them.
Performance Results	Actual 2009-2010 results: 98 days
Stakeholder Consultation	Client feedback is largely received informally during the CRA’s attendance at major tax conferences. Generally, there is a very high degree of satisfaction with the quality of advance income tax rulings albeit the clients would like to receive them faster. The CRA will be conducting a comprehensive study of all aspects of the rulings program in an effort to be able to come up with efficiencies and meet the service standard. This study will be completed by the end of 2010-2011.
B. Other Information: As a result of the latest Management Accountability Framework VII assessment, the CRA will be creating a user fee policy instrument outlining how user fees are to be determined, applied, and managed. This will include a standard review cycle to evaluate how external user fee practices are being managed, to ensure that they are still relevant, and determine if they need to be updated to reflect current operating environment requirements.

*User Fees Act* – Taxation Statistical Analyses and Data Processing Fee
A. User Fee	Taxation Statistical Analyses and Data Processing Fee
Fee Type	Regulatory (R)
Fee Setting Authority	Financial Administration Act 19(b)
Date Last Modified	1992
Performance Standards	Provide statistical data to taxpayers within an average of 30 calendar days of receipt of all essential information.
Performance Results	Average time to provide the requested data is 22 days
(in thousands of dollars)
2009-2010			Planning Years
Forecast Revenue	Actual Revenue	Full Cost	Fiscal Year	Forecast Revenue	Estimated Full Cost
10	22	22	2010-2011	17	17
			2011-2012	17	17
			2012-2013	17	17
B. Other Information: As a result of the latest Management Accountability Framework VII assessment, the CRA will be creating a user fee policy instrument outlining how user fees are to be determined, applied, and managed. This will include a standard review cycle to evaluate how external user fee practices are being managed, to ensure that they are still relevant, and determine if they need to be updated to reflect current operating environment requirements.

Policy on Service Standards for External Fees – Taxation Statistical Analyses and Data Processing Fee
A. External Fee	Taxation Statistical Analyses and Data Processing Fee
Service Standard	Provide statistical data to taxpayers within an average of 30 calendar days of receipt of all essential information.
Performance Results	Average time to provide the requested data was 22 days.
Stakeholder Consultation	Client satisfaction surveys were sent to external clients. The responses received indicated a satisfaction rate of 100%.
B. Other Information: As a result of the latest Management Accountability Framework VII assessment, the CRA will be creating a user fee policy instrument outlining how user fees are to be determined, applied, and managed. This will include a standard review cycle to evaluate how external user fee practices are being managed, to ensure that they are still relevant, and determine if they need to be updated to reflect current operating environment requirements.

*User Fees Act* – Access to Information Processing Fee
A. User Fee	Fees charged for the processing of access requests filed under the Access to Information Act
Fee Type	Other Products and Services (O)
Fee Setting Authority	Access to Information and Privacy Act
Date Last Modified	1992
Performance Standards	Processing time of 30 calendar days for the Access to Information Act, with no time limit for the extension period. The Canada Revenue Agency’s (CRA) internal processing standard is to complete 90% of filed requests within the legislative deadline.
Performance Results	77% of the requests made under the Access to Information Act were processed within the legislative timeframe. In 2010-2011, the CRA will continue to focus attention on streamlining processes, procedures and practices to meet its obligations and responsibilities under the Access to Information Act. The Access to Information and Privacy Directorate has developped and is in the process of implementing a comprehensive plan to address challenges and expedite the processing of files.
(in thousands of dollars)
2009-2010			Planning Years
Forecast Revenue	Actual Revenue	Full Cost	Fiscal Year	Forecast Revenue	Estimated Full Cost
40	52	2,447	2010-2011	46	2,447
			2011-2012	46	2,447
			2012-2013	46	2,447
B. Other Information: It is the Canada Revenue Agency’s practice to waive reproduction fees where the total owing per amount is less than $25.

Policy on Service Standards for External Fees – Access to Information Processing Fee
A. External Fee	Access to Information Processing Fee
Service Standard	Processing time of 30 calendar days for the Access to Information Act, with no time limit for the extension period.
Service Standard	The Canada Revenue Agency’s (CRA) internal processing standard is to complete 90% of filed request within the legislative deadline.
Performance Results	77% of the requests made under the Access to Information Act were processed within the legislative timeframe. In 2010-2011, the CRA will continue to focus attention on streamlining processes, procedures and practices to meet its obligations and responsibilities under the Access to Information Act. The Access to Information and Privacy Directorate has developped and is in the process of implementing a comprehensive plan to address challenges and expedite the processing of files.
Stakeholder Consultation	The service standard is established by the Access to Information Act and the Access to Information Regulations. Consultations with stakeholders were undertaken for amendments done in 1986 and 1992.
B. Other Information: It is the Canada Revenue Agency’s practice to waive reproduction fees where the total owing per amount is less than $25.

Details on Project Spending

(in thousands of dollars)					2009-2010
Initiative Name			2008-2009 Actual	Prior Years’ Expenditures to March 31, 2009	Planned Spending	Actual
Assessment and Benefit Services Branch
	Secure Channel - External Credential Management Services		1,617	1,617	1,024	1,014
	Individual Identification Renewal		6,359	14,949	9,576	8,997
	T3 Redesign		800	1,559	1,110	747
		Sub-total	8,776	18,125	11,710	10,758
Taxpayer Services and Debt Management Branch
	Integrated Revenue Collections - Phase I		20,950	88,501	15,364	14,768
	Integrated Revenue Collections - Phase II				7,874	7,142
	Payroll Deductions Accounting and Collections Renewal		3,452	7,702	5,815	5,272
		Sub-total	24,402	96,203	29,053	27,182
Compliance Program Branch
	Compliance Systems Redesign^{[Footnote 1]}		18,000	63,429	22,235	18,600
		Sub-total	18,000	63,429	22,235	18,600
Appeals Branch
	Taxpayer Relief Registry Redesign		1,098	2,233	222	226
	Taxpayer Relief Business Transformation		0	0	484	590
		Sub-total	1,098	2,233	706	816
Public Affairs Branch
	Intranet Renewal		4,601	9,796	5,052	4,936
	Publishing Content Management Solution		1,831	7,666	550	558
		Sub-total	6,432	17,463	5,602	5,494
Information Technology Branch
	Application Sustainability		2,000	2,000	3,971	3,680
	Security Modernization Program - IDS		1,766	19,696	2,300	2,286
	Data Centre Co-Location		175	175	1,200	1,094
	Data Centre Facilities		962	7,579	5,030	3,711
	Corporate Administrative Systems Sustainability		9,999	11,870	11,379	10,680
	Network Access Control, Anti-Spyware and Host Intrusion		0	0	820	671
	Network Encryption		0	0	88	57
	Encryption of Back-Up Tapes		0	0	60	53
	Denial of Service Defence		0	0	108	65
		Sub-total	14,902	41,320	24,956	22,297
Finance and Administration Branch
	Identity and Access Management		0	0	610	465
		Sub-total	0	0	610	465
Human Resources Branch
	Migration to End-State Pre-Qualified Processes		0	0	7,226	6,871
		Sub-total	0	0	7,226	6,871
Legislative Policy and Regulatory Affairs Branch
	Charities Regulatory Reform		0	0	2,863	2,792
		Sub-total	0	0	2,863	2,792
Corporate Strategies and Business Development Branch
	Agency-Wide Information Classification Scheme		0	0	458	346
		Sub-total	0	0	458	346
Total			73,610	238,773	105,419	95,621

^{[Footnote 1]} Prior Years’ Expenditures of Compliance Systems Redesign includes Enterprise Work Management costs.

Details on Transfer Payment Programs

Two transfer payment programs with payments in excess of $5 million were administered by the Canada Revenue Agency in 2009-2010. These are:

Children’s Special Allowance Payments (Statutory); and
Disbursements to the Provinces under the Softwood Lumber Products Export Charge Act, 2006 (Statutory)

Children’s Special Allowance Payments (Statutory)

Start Date: Aug. 28, 1995^{[Footnote 1]}
End Date: Ongoing
Description of Transfer Payment Program: Tax-free monthly payments made to agencies and foster parents who are licensed by provincial or federal governments to provide for the care and education of children under the age of 18 who physically reside in Canada and who are not in the care of their parents. Children’s Special Allowance (CSA) payments are equivalent to Canada Child Tax Benefit payments. CSA payments are governed by the Children’s Special Allowances Act which provides that this allowance be paid out of the Consolidated Revenue Fund.
Strategic Outcome: Eligible families and individuals receive timely and correct benefit payments
Results Achieved: Monthly payments were made to 284 agencies and foster parents on behalf of 53,844 children. Payments were issued on schedule, no delays were reported.
Program Activity: Benefit Programs
(in thousands of dollars)
	2007-2008	2008-20092	2009-2010^{[Footnote 2]}
	Actual Spending	Actual Spending	Planned Spending	Total Authorities	Actual Spending	Variance(s) Planned/Actual
Total Grants*	208,163
Total Contributions
Total Other Transfer Payments*		211,848	221,000	215,264	215,264	5,736
Total	208,163	211,848	221,000	215,264	215,264	5,736
Comment(s) on variance(s): Not Applicable
Significant Evaluation Findings and URL(s) to Last Evaluation(s): Not Applicable

^{[Footnote 1]} Responsibility for CSA Statutory Vote payment was transferred effective August 28, 1995 from Human Resources and Social Development Canada (P.C. Order 1995-342)

^{[Footnote 2]} Starting in 2008-2009, the CSA Statutory payment was reclassified from a Grant to an Other Transfer Payments

* A grant is an unconditional transfer payment where the government chooses to further policy or program delivery by issuing payments to individuals or organizations. Eligibility criteria and applications received in advance of payment provide sufficient assurance that the objectives of payment will be met, therefore specific conditional agreements with the recipient are not required. The government must list a grant in the Estimates but may withhold the grant(s) if eligibility criteria are not met.

** Other Transfer Payments is a transfer payment based on legislation or an arrangement that normally includes a formula or schedule as one element used to determine the expenditure amount. However, once a payment is made, the recipient may redistribute the funds among several categories of expenditure in the arrangement.

Disbursements to Provinces under the Softwood Lumber Products Export Charge Act, 2006 (Statutory)

Start Date: October 12, 2006
End Date: October 12, 2013 with an option for an additional 2 years
Description of Transfer Payment Program: The export charge, to be levied by Canada on exports of softwood lumber products to the United States, is collected and administered by the Canada Revenue Agency (CRA) with support from the Department of Foreign Affairs and International Trade on behalf of the provinces. Under the Softwood Lumber Products Export Charge Act, 2006, the CRA is responsible for making statutory disbursements to the provinces of a portion of the charge collected over the course of the application of the Softwood Lumber Agreement, 2006. These disbursements are reduced by several factors: refunds paid to the industry, costs for the administration and implementation of the Agreement and the Act as well as the costs incurred for certain litigation resulting from the Agreement or Act. The Act applies to the following regions: British Columbia Interior, British Columbia Coastal, Alberta, Saskatchewan, Manitoba, Ontario and Quebec. Exports from the remaining provinces and territories are excluded.
Strategic Outcome: Taxpayers meet their obligations and Canada’s revenue base is protected
Results Achieved: Disbursements will continue on a quarterly basis until the termination of the Agreement, unless lumber market prices increase to the point where no export charge is applicable for that period.
Program Activity: Taxpayer and Business Assistance
(in thousands of dollars)
	2007-2008	2008-2009	2009-2010
	Actual Spending	Actual Spending	Planned Spending	Total Authorities	Actual Spending	Variance(s) Planned/Actual
Total Grants	–	–	–	–	–	–
Total Contributions	–	–	–	–	–	–
Total Other Transfer Payments*	603,602	180,495	429,000	205,545	205,545	223,455
Total	603,602	180,495	429,000	205,545	205,545	223,455
Comment(s) on variance(s): Not Applicable
Significant Evaluation Findings and URL(s) to Last Evaluation(s): Not Applicable

* Other Transfer Payments is a transfer payment based on legislation or an arrangement that normally includes a formula or schedule as one element used to determine the expenditure amount. However, once a payment is made, the recipient may redistribute the funds among several categories of expenditure in the arrangement.

Green Procurement

Meeting Policy Requirements

1. Has the department incorporated environmental performance considerations in its procurement decision-making processes?

Yes

2. Summary of initiatives to incorporate environmental performance considerations in procurement decision-making processes:

The Canada Revenue Agency (CRA) continues to implement concrete measures to incorporate environmental performance considerations in procurement decision-making processes. These measures, which include policy support, technology enhancements, and training, support the Government of Canada’s Green Procurement Policy. This is realised through the framework established in the CRA Sustainable Development (SD) Strategy 2007-2010, and the annual Environmental Management Program (EMP) for Green Procurement.

The CRA established its own in-house Green Procurement Guidelines. These guidelines, which support the Government of Canada's Green Procurement Policy, apply to the procurement of goods and services and are intended to help reduce the environmental impacts of CRA operations. They also promote environmental stewardship by integrating environmental performance considerations in the procurement process. The guidelines apply to all CRA employees.

The Agency continues to include sustainable development clauses and environmental specifications in all new strategic sourcing contracts. These national procurement instruments establish long-term agreements with vendors to supply goods and/or services on a best value basis.

The Agency continues to improve the efficiency of its procurement processes by integrating SD and environmental considerations into existing procurement tools. The CRA online purchasing system, Synergy, for example, reduces paperwork requirements, identifies environmentally friendly product options, and enables accurate tracking of CRA green procurement performance.

Members of the Executive Cadre (ECs), MG managers and functional heads are encouraged to integrate SD commitments into their performance agreements and expectations each year. This raises green procurement and sustainable development awareness levels among senior managers, and holds them accountable for supporting these objectives in their jobs.

Support for green procurement also includes a strong commitment to training. Green procurement training is made available to all procurement officers and their managers.

3. Results achieved:

Overall, CRA senior management continued to demonstrate strong support for sustainable development and green procurement. Within the Executive Cadre, 99% of its members included SD measures in their performance agreements for 2009-2010. Managers and functional heads (MGs) also included SD measurement criteria in their core performance expectations.

Procurement officers and their managers were encouraged to take an online green procurement training course. Of the 93 employees identified in 2009-2010, a total of 47 employees indicated that they had completed the course (51%). Support for this initiative will continue indefinitely until all employees in these positions have received the training.

In 2009-2010, all nine, or 100%, of strategic sourcing contracts issued contained environmental specifications/criteria. These included:

Headsets and handsets
Battery recycling services
Enterprise content management software
Telephone set cleaning and refurbishing services
Office and boardroom chairs
End user devices
Media monitoring services
Primary rate interface services
Commercial/consumer credit reports

The CRA also included environmental specifications in other strategic sourcing contracts that are expected to be issued in 2010-2011. They are:

Short run printing
Cut sheets
IT supply chain
Non-T1 envelopes
Filing cabinets
Real estate (access to databases)

4. Contributions to facilitate government-wide implementation of green procurement:

Not applicable. The CRA does not have responsibilities under Section 8 of the Policy on Green Procurement.

Green Procurement Targets

5. Has the department established green procurement targets?

Yes

6. Summary of green procurement targets:

The CRA’s SD Strategy for 2007-2010 has established the following targets related to green procurement:

Target 1.1.2: Expand the green procurement program to achieve the following results:

By March 31, 2008, green products account for 10% of total product spending
By March 31, 2009, green products account for 15% of total product spending
By March 31, 2010, green products account for 20% of total product spending

Under the framework outlined in the Agency's SD Strategy for 2007-2010 and annual EMP for Green Procurement, the CRA continues to explore new ways to improve efficiency, conserve resources, and implement environmentally responsible procurement practices. The activities included in the CRA’s SD National Action Plan (2007-2010) that support green procurement are as follows:

Activity 1.1.2.1: Include SD clauses and environmental specifications in all new strategic sourcing contracts.

Activity 1.1.2.2: Develop a management plan to expand the scope of green procurement to include IT hardware and software.

Activity 1.1.2.3: Review and improve the efficiency of the CRA procurement process, such as the bidding process, ordering systems, e-capabilities, green procurement tracking, and any new contracting tools, when working with suppliers.

Activity 1.1.2.4: Explore opportunities to green services procured by the CRA.

Activity 1.1.2.5: Implement a Printer Consolidation Strategy that will establish appropriate user-to-printer ratios and update acquisition, renewal, and disposal policies and procedures to achieve these ratios.

Activity 1.1.2 6: Provide green procurement training to 100% of procurement officers and their managers.

Over the course of the SD Strategy 2007-2010, activities 1.1.2.1 through 1.1.2.4 were completed, while activities 1.1.2.5 and 1.1.2.6 remain in progress.

7. Results achieved against green procurement targets:

In 2008-2009, the CRA determined that 6.2% of goods purchased were green products. However, the $17.8 million spent on green products in 2008-2009 was the CRA’s highest annual total since the Agency began tracking green procurement spending.

In 2009-2010, 28.0% ($2,798,197 of $9,997,421) of products purchased through CRA’s online purchasing system (Synergy) were green.^{[Footnote 1]}

The CRA augmented the proportion of green vehicles in its fleet by acquiring hybrid and alternative fuel vehicles instead of traditional vehicles, where operationally feasible. In 2009-2010 the CRA fleet was 47.4% green – an increase of 11% over 2008-2009.

In 2009-2010, the Agency continued to reduce the amount of office paper purchased. By leveraging technology and communicating to employees, each CRA employee used an average of 5,147 sheets of office paper in their job. This is down from 5,385 sheets per employee (4.4%) in the previous year, and a recorded high of 7,399 sheets of office paper used per employee in 2003-2004.

^{[Footnote 1]} The overall proportion of green product purchases from all CRA sources is not yet available for 2009-2010.

Response to Parliamentary Committees and External Audits

Response to Parliamentary Committees

[Parliamentary Committees have continually called for improved reporting by departments and agencies in their reports to Parliament on follow-up to committee recommendations. As a result, departments and agencies are encouraged to discuss progress made to address Parliamentary Committee recommendations and provide further information on significant corrective actions achieved.]

1. Government Responses (GR)

Government Responses (GR) are requested by Parliamentary Committees under House of Commons Standing Order 109 or under Rules of the Senate 131(2). Such requests are included in the reports tabled by the respective Parliamentary Committee.

The Minister of National Revenue did not table a GR to a Parliamentary Committee report in fiscal year 2009-2010.

In its Spring 2009 Report, the Office of the Auditor General of Canada included a chapter on “Interest on Advance Deposits from Corporate Taxpayers – Canada Revenue Agency” (Chapter 4). The Standing Committee on Public Accounts (PACP) held a meeting on October 26, 2009 to study this chapter. PACP tabled its Seventh Report on Chapter 4 on April 14, 2010.* A GR was requested in the Seventh Report, and will be presented in fiscal year 2010-2011. Further information on this GR will be included in the Departmental Performance Report 2010-2011 for the Canada Revenue Agency.

(* N.B.: Parliament was prorogued between December 30, 2009 and March 3, 2010).

Please see section 3 for more information.

2. Standing Committee on Public Accounts (PACP)

Follow-up requests from PACP regarding Government Responses (GR) and Other Information

In March 2010, PACP tabled its First Report entitled “Following up on Recommendations made by the Standing Committee on Public Accounts in the 39th Parliament, Second Session”. In that document, PACP explains the process by which it tracks the progress of Government actions, as provided in various GRs to Reports tabled by PACP. Excerpts from PACP’s First Report explain its approach and should provide context for the impacts on CRA reporting:

“[PACP] has a mandate to examine the reports of the Auditor General, the Public Accounts of Canada, and the management and performance of the Office of the Auditor General (OAG) … [PACP] has the power to hold hearings on the subjects within its mandate and subsequently present a report to the House of Commons on its findings. As most of the Committee’s reports contain recommendations to the government, the Committee usually requests a response from the government, which must be tabled in the House within 120 days. …Issuing a report with recommendations and asking for a government response serve to highlight specific issues and add a parliamentary voice to further encourage government action to address problems raised by the OAG ... [PACP] decided to develop and implement a process to follow-up on its recommendations. Such a process keeps the Committee aware of the progress being made in specific areas and helps to ensure the Committee’s recommendations are taken seriously by the government and are not ignored once the Committee’s report is presented to the House … It is the Committee’s intention that this will be an annual process.”

Please note that the 39th Parliament, 2nd session referred to in the above-noted report corresponds to the period October 16, 2007 to September 7, 2008. No follow-up requests were received in fiscal year 2009-2010 with respect to reports or responses originally tabled in the 39th Parliament, 2nd Session, or the 40th Parliament (please see Section 3. Reference to the CRA in Committee Reports’ for further information.)

PACP Requests for Departmental Action Plans and Progress Reports

On March 25, 2010, PACP adopted a motion requiring departments and agencies that have been subject to a performance audit by the Office of the Auditor General of Canada to provide the Committee with their action plans to address the audit recommendations which have been agreed to.

As noted in the Departmental Performance Report 2008-2009 for the Canada Revenue Agency, the CRA was the subject of several chapters contained in various Auditor General Reports tabled in 2008-2009. However, given the timing of the adoption of the original motion (March 5, 2009, and an amendment to the original motion on October 28, 2009), and given that the motion was made retroactive to the Auditor General Report of December 2008, action plans were available for submission to PACP only in fiscal year 2009-2010.

The following Action Plan was presented to PACP on October 25, 2009:

Relating to the study of Chapter 4, Interest on Advance Deposits from Corporate Taxpayers – Canada Revenue Agency of the Spring 2009 Report of the Auditor General of Canada (CRA officials appeared before PACP on October 26, 2009).

The following Action Plans were provided to PACP on November 13, 2009:

In respect of Chapter 6, Use of New Human Resources Authorities – Canada Revenue Agency of the December 2008 Report of the Auditor General of Canada (no Committee study).
In respect of Chapter 5, Managing Information Technology Investments – Canada Revenue Agency of the December 2008 Report of the Auditor General of Canada (no Committee study).
In respect of Chapter 3, Auditing Small and Medium Enterprises – Canada Revenue Agency of the 2009 Status Report of the Auditor General of Canada (no Committee study).
In respect of Chapter 3, Health and Safety in Federal Office Buildings of the Spring 2009 Report of the Auditor General of Canada (no Committee study).

The following Action Plan was provided to PACP on March 22, 2010:

Relating to the study of Chapter 3 Income Tax Legislation of the Fall 2009 Report of the Auditor General of Canada (CRA officials appeared on March 23, 2010).”

3. Reference to the CRA in Committee Reports

In 2009-2010, various Parliamentary Committees did table reports wherein the CRA is mentioned. These include:

Standing Committee on Finance (FINA)

FINA undertook a study of the treatment and characterization of Personal Services Businesses. The Committee met to study this topic on December 3, 2009. CRA officials were invited to appear. Due to the prorogation of Parliament, FINA tabled its report on June 10, 2010, entitled “Servant or Master: Differing Interpretations of a Personal Services Business”. FINA has requested a GR to its recommendations. As the Report was tabled in fiscal year 2010-2011, and the GR will be presented in fiscal year 2010-2011, further information will be included in the Departmental Performance Report 2010-2011 for the Canada Revenue Agency.

Standing Committee on Veterans Affairs (ACVA)

On June 17, 2009, ACVA tabled a report entitled “Shared Experiences: Comparisons of Veterans Services Offered by Members of the Commonwealth and the G8”. The report contained a recommendation for Veterans Affairs Canada (VAC) which made reference to the CRA. A GR was tabled by the Minister of Veterans Affairs on October 19, 2009.

The Standing Committee on Public Accounts (PACP)

Eleventh Report (The Public Accounts of Canada 2007) – Tabled March 5, 2008

Recommendation 2: “The Canada Revenue Agency modify its tax revenue estimation methodology by 30 September 2008. If this cannot be done by this date, the Canada Revenue Agency should explain to the Public Accounts Committee the reasons for the inability to meet this deadline and provide the Committee with a date by which this modification will be done.”

http://www2.parl.gc.ca/HousePublications/Publication.aspx?DocId=3320946&Language=E&Mode=1&Parl=39&Ses=2

Government Response (presented July 16, 2008, by the President of the Treasury Board)

On March 29, 2010, PACP’s First Report “Following up on Recommendations made by the Standing Committee on Public Accounts in the 39th Parliament, Second Session” was presented in Parliament. It included an assessment by PACP as to whether or not the specific recommendation was adequately addressed in the GR. On page 102, PACP considers this recommendation to have been addressed.

Sixth Report – Public Accounts of Canada 2008 – Tabled March 24, 2009

Recommendation 1: “That the Canada Revenue Agency provide the Public Accounts Committee a detailed plan with timelines by 31 May 2009 of how it will improve its methodology to calculate the allowance for doubtful tax receivables.”

http://www2.parl.gc.ca/HousePublications/Publication.aspx?DocId=3731039&Language=E&Mode=1&Parl=40&Ses=2

Government Response (presented August 19, 2009, by the President of the Treasury Board)

Auditor General – Fall 2009 Report – Chapter 3 – Income Tax Legislation

On March 23, 2010, PACP held hearings on its study of this chapter. On April 28, 2010, PACP tabled its report and recommendations. A Government Response is expected. As the Report was tabled in fiscal year 2010-2011, and the Government Response will be presented in fiscal year 2010-2011, further information will be included in the Departmental Performance Report 2010-2011 for the Canada Revenue Agency.

Response to the Auditor General

2009 Spring Report of the Auditor General of Canada (Tabled in May 2009)

Chapter 3 – Health and Safety in Federal Office Buildings

http://www.oag-bvg.gc.ca/internet/English/parl_oag_200905_03_e_32516-eng.html

Chapter 4 – Interest on Advance Deposits from Corporate Taxpayers – Canada Revenue Agency

http://www.oag-bvg.gc.ca/internet/English/parl_oag_200905_04_e_32517-eng.html

2009 Fall Report of the Auditor General of Canada (Tabled in November 2009)

Chapter 3 – Income Tax Legislation – Department of Finance Canada and Canada Revenue Agency

http://www.oag-bvg.gc.ca/internet/English/parl_oag_200911_03_e_33204-eng.html

Internal Audits and Evaluations

Internal Audits

Name of Internal Audit	Audit Type	Status	Completion Date
Audit of Horizontal Case Management	Assurance	Completed	April 2009
Internal Audit of the CPP/EI Rulings Program	Assurance	Completed	June 2009
Information Technology Security	Assurance	Completed	October 2009
2008-2009 Selected Fiscal Year-End Procedures Audit	Financial	Completed	October 2009
Non-Resident Tax and Excise/Other Levies Transaction Flow-Through	Financial	Completed	October 2009
Follow-Up of 2006-2007 Internal Audit Reports	Follow-Up	Completed	January 2010
Information Received Under the Memorandum of Understanding With Service Nova Scotia and Municipal relations	Assurance	Completed	January 2010
Electronic Link to Evaluation Plan: http://www.cra-arc.gc.ca/gncy/ntrnl/menu-eng.html

Evaluations

Name of Evaluation	Program Activity	Evaluation Type	Status	Completion Date
Program Evaluation Study GST/HST Delinquent Filing and Remitting	Accounts Receivable and Returns Compliance	Summative	Completed	April 2009
Headquarters – Region Managers Exchange Pilot Program	Internal Services	Summative	Completed	June 2009
Electronic Link to Evaluation Plan: http://www.cra-arc.gc.ca/gncy/ntrnl/menu-eng.html