Public Presentation to the Board of Directors

1. Public Presentation to the Board of Directors Ontario Works February 14, 2007

2. OW Overpayment Recovery Pilot • Since August 2006 DNSSAB’s Ontario Works department has been running a pilot to validate outstanding overpayments on cases that have terminated; • This project was supported by the North East Regional Office of the Ministry of Community & Social Services (no municipal contribution required); • Purpose of the pilot included determining whether a business case can be made for resources to collect these monies owed.

3. Results of Pilot • SDMT information indicates $3.5 million in mainly unverified outstanding overpayments; this includes amounts rolled up from provincial systems used prior to Service Delivery Model Technology; • Verification and validation of overpayment amounts is a labour-intensive process. • Only overpayments incurred in 2006 were able to be validated under this pilot.

4. Results (Continued) • The amount validated as outstanding for 2006 is $177 thousand; • Concurrent to the validation process, collection letters were sent to former clients (30, 60, 90 day letters); • This contributed to an increase in monthly inactive file overpayment recoveries first reported in August, 2006 [average Jan - Jun $29.8K/mo.; average Jul-Nov $55.8K/mo.]

5. Changes in Provincial Legislation • The Ontario Works Act, 1997 has been amended to provide that overpayments by delivery agent are debts due to the delivery agent and may also be deemed to be a debt due to the crown. • This amendment came into affect on June 22, 2006, the day the Good Government Act, 2006 received Royal Assent.

6. Canada Revenue Agency Refund Set Off Program • Allows individuals’ tax refunds and credits to be “set-off” to pay outstanding debts owed to the Crown; • refunds available for set-off purposes include: • Regular individual income tax refunds; and • The Goods and Services Tax credit; • A 37 calendar day grace period is allowed for debtors to resolve their debt before RSO is applied

7. Provincial Collection of Debts Owed to the Crown • Ontario establishes a central Overpayment Recovery Unit (ORU) that is responsible for pursuing all outstanding debts owed to Provincial Ministries, including participation Canada Revenue Agency’s Refund Set Off program.

8. Ontario programs currently participating in the RSO program The ORU currently pursues collection through the RSO program on behalf of the following: • Ontario Disability Support Program; • Immigration Sponsorship debt collection for Ontario Works and ODSP programs; • Ontario Student Assistance Plan; • Ontario Child Care Supplement for Working Families; • Land Transfer Tax; • Ontario Home Ownership Program; and • Employer Health Tax for Self-Employed.

9. CMSMs/DSSABS will: • Retain ownership of the social assistance file; • Review and validate overpayment accounts as per ministry criteria; • Send notification letter to the former recipient (and spouse) advising that their account may be referred to the ministry and providing the option to contact the Overpayment Recovery Unit (ORU) to make arrangements for a voluntary repayment plan; • Forward the account information to the ORU if there is no response from former participant within the time specified in the notification letter. • Address any client inquiries received at the ORU that require further review or intervention.

10. The Overpayment Recovery Unit will: • Send the overpayment account to the Ministry of Finance for Canada Revenue Agency Refund Set Off; • If contacted by a former participant/recipient, negotiate a voluntary payment plan; • Track and post repayments to SDMT; • Notify DNSSAB of the repayment of the debt; • Address inquiries related to collection activity, including providing the reason and the amount of the overpayment and notification; • Return accounts to DNSSAB where there are debtor inquiries that require further exploration or intervention; • Cease collection activity and recall the account from CRA where required.

11. Canada Revenue Agency will: • Issue CRA’s notification letter to the former Ontario Works participant to confirm receipt of the overpayment account; • Apply Refund Set Off to the account if the former participant fails to respond within the 37 day grace period (commences the date the account is uploaded into the CRA database); • Notify MCSS of funds paid to the Ministry (the Ministry will, in turn, notify DNSSAB directly through SDMT).

12. Reconciliation and Cost Sharing • All revenues collected by the ORU through this process will be cost shared at 20% with DNSSAB. • The ORU will reconcile all OW recoveries to the Ontario Public Service’s financial system and the Service Delivery Model Technology (SDMT). • The provincial/municipal cost sharing is initiated when the ORU posts its recoveries to DNSSAB cases in the SDMT. These recoveries are reflected in the SDMT reports used by DNSSAB financial staff in the preparation of monthly subsidy claims. • The ORU will forward monthly cost-sharing reports to DNSSAB through the Ministry’s Regional Offices, that reflect 100% of the OW overpayment recoveries posted in the SDMT.

13. Validation of Debts • An e-mail protocol has been established to recall or adjust accounts where immediate action is required i.e. a former participant enters into a voluntary repayment plan with the OW delivery site, new information is presented to the ORU to support a determination of hardship; • Under certain circumstances, the OW delivery sites may recall or adjust overpayment accounts, and/or the ministry may return accounts to the OW delivery sites.

14. New Overpayment Collection Pilot • MCSS has invited municipal participation in pilot to establish linkages between the ORU and OW offices; • Ministry support will enable DNSSAB to continue verification and validation work already begun until December 31, 2007; • Municipal share of funds recovered will be flowed directly to DNSSAB; • Opportunity to determine actual rate of return and to evaluate cost benefits of overpayment collection under new model.