![]() |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
![]() |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
National Audit of the Implementation of the Appeals Timeliness Action PlanCorporate Audit and Evaluation Branch
|
LOE |
Action Plan Item |
Significance |
Service Standards |
Volumetrics Study - ITA/GST Objections |
Major |
Implement and meet new performance standards - CPP/EI Appeals |
Major |
|
Performance objectives for first level Fairness Requests |
Minor |
|
Policy & Procedure |
Updating the Appeals Manual or Taxation Operating Manual with fast-tracking guidelines |
Minor |
Review of the current assignment processes |
Minor |
|
GST Redesign project to streamline reassessment process |
Minor |
|
Gather field data on number of first-level Fairness requests erroneously sent to Appeals |
Minor |
|
Resources & Efficiency |
Develop new VDP Budget Process and obtain interim Funding |
Minor |
Fairness Registry Updates to allow exclusion of non-workable days in calculation of processing times |
Minor |
|
Quality Assurance & Monitoring |
VDP included in Case Management Software |
Minor |
As inventories are reduced, resources will be able to target new intakes and achieve the timeliness targets with the continued emphasis on quality decisions.
Monitoring of Inventory
The Southern Ontario Region monitored the increasing inventory of Fairness cases. A project was undertaken to review the Fairness entries and ensure accurate information on older cases appeared in the registry. This resulted in the number of open cases going from 18,000 to 11,000 in nine months (38.9% reduction). Consideration should also be made for all remaining regions to conduct a similar "clean-up" project so that an accurate inventory may be ascertained.
The Appeals Branch has quality assurance processes and inventory tracking mechanisms in place to monitor the status of files, completion of files for accuracy and time taken to complete workloads in all business lines.
The results achieved through the implementation process and changes to procedures and policies are measured on an ongoing basis through statistical analysis of inventories, both workable and non-workable.
The Appeals Branch has completed conversion of all workable and non-workable inventory from the previous inventory management system, Appeals Information and Reporting System (AIRS), to Globus (a case management system that is used by different workflows). The regions indicated there was an issue during the conversion with reporting functionality, e.g. "canned" reports, thus affecting the monitoring abilities of the managers. The Branch has taken steps to improve the functionality and reporting ability of this new system by implementing a Web infrastructure for Intranet based queries. Management at all levels can now produce customized reports for inventory and performance measurement, allowing the Branch to better measure and report on program results.
ITA/GST Objections Business Line
The Tax Appeals Directorate (TAD) was to undertake a study, to better understand the exact nature and volumetrics of delays in the processing of objections and reassessments, in year two of the three-year Implementation Plan (2003-2004). At the time of the audit, TAD had not initiated this study, and the regional offices had not been solicited for their input or involvement with regards to gathering data as per the Action Plan. The effect on the Branch is that the root cause of the delays cannot be determined, and therefore, corrective action(s) cannot be implemented. This has impacted the Branch's ability to meet service standards and consequently impacts client satisfaction.
Recommendation - Volumetrics Study
The Appeals Branch, ITA/GST Objection Business Line, should conduct the volumetrics study that was scheduled for fiscal year 2003-2004 to better understand the exact nature of delays in the processing of objections and reassessments. An action plan to effectively address the identified issues should then be developed and implemented.
Action Plan
The Policy Section of Tax Appeals Directorate (TAD) will develop a new plan in April 2005 and will execute it during the first quarter of fiscal 2005-2006. The results of the study may impact other areas accountable for monitoring processing timeframes, standards, statistics, etc.; therefore, work will be conducted in conjunction with the Programs Initiative Section and the Quality Assurance and Review Section of the Programs and Fairness Coordination Directorate (PFCD).
The CPP/EI Appeals Division implemented performance standards based on a graduated scale for reducing the turnaround time for processing CPP/EI files (benefit pending, benefit non-pending and assessment) to facilitate the reduction of the inventory backlog.
Table 2 - CPP/EI Appeals Performance Standards - Targeted Levels
2001-2002 |
Reduce average turnaround times to: |
EI Benefit Pending |
90 days in 85% of files |
EI Benefit Non-Pending |
90 days in 85% of files |
Assessment and Other files |
120 days in 85% of files |
2002-2003 |
Reduce average turnaround times to: |
EI Benefit Pending |
75 days in 85% of files |
EI Benefit Non-Pending |
90 days in 85% of files |
Assessment and Other files |
105 days in 85% of files |
2003-2004 |
|
EI Benefit Pending |
Meet 60-day performance standard |
EI Benefit Non-Pending |
Meet 75-day performance standard |
Assessment and Other files |
Meet 90 day performance standard |
HQ management reported that the program has seen a significant number of changes in the caseload that has adversely impacted the turnaround times, resulting in increased inventories and an inability to meet performance targets. Therefore the performance standards outlined in the Action Plan were reduced.
Both regions and HQ indicated to Internal Audit the three main causes of changes to the caseload are:
Recommendations - Volumetrics Study and Workload Tracking & Process Analysis
The CPP/EI business division should conduct its own volumetrics study, along with the workload tracking project and process review to determine the exact nature of workload changes, causes of delays, regional trends, the root cause of the growing "workable" inventory levels, etc. An action plan to effectively address the identified issues should then be developed and implemented.
The Appeals Branch, CPP/EI Division, should collaborate with the TAD when planning and conducting the volumetrics study planned for the ITA/GST Objections division.
Action Plan
To specifically deal with the aged inventory, a business case for additional funding was submitted in April 2004 and approved in January 2005. Additional resources will be provided over a two-year period to reduce the inventory to optimal levels. Regular monitoring of intakes and inventory levels between the Chiefs of Appeals and HQ, through monthly/quarterly telephone conferences, will help ensure the workload is properly managed amongst the regions.
A Review of the CPP/EI Appeals redress process began in March 2004 with the focus on addressing timeliness and procedural issues. This review is being undertaken in conjunction with our program partners, including Revenue Collections Branch, Department of Justice and Human Resources and Skills Development Canada. An interim report was issued in January 2005, and four initiatives will be given priority to address our two biggest challenges: inventory levels and timeliness issues.
An analysis of the work processes of the CPP/EI Appeals Division is currently underway in order to identify the most effective and efficient processes, and further, to identify and eliminate duplication of work, and to make recommendations that will optimize the use of resources and enhance program delivery at the local and national level. The results of these studies will provide a basis to revisit the funding model and to establish feasible performance targets.
CPPEI Appeals will consult with TAD to discuss common issues and methodologies prior to starting a CPP/EI volumetric study.
The Action Plan outlined a two-phased approach to address inventories and increasing intakes to meet performance standards; obtain interim funding and develop a new budget process. Compliance Programs Branch transferred funding of $3.222 million in 2002-2003 and $4 million for each of 2003-2004 and 2004-2005. However Inventories continue to increase. The establishment of a new budget process was not completed by the target date of 2003-2004 fiscal. All regions indicated that an increase in resources is required to meet the volume and standards set for this program.
To increase the up-take of the VDP, discussions have taken place around the idea of a marketing initiative. Should an initiative be launched, intakes will increase further and compound current inventory levels and the strain on resources.
Recommendation - VDP
The Appeals Branch should review the current expenditures for the VDP, and ensure the current funding is adequate. The Branch should complete this review before undertaking the planned marketing campaign.
Action Plan
Implementation of the VDP action plan began in February 2004 and included VDP specific time codes and the inclusion of VDP in GLOBUS (a new case management system used by different workflows for tracking inventory). The data collection phase is currently underway to assist in determining the true costs of the VDP, the efficiencies that can be generated, and a model to forecast future costs for budgeting purposes. Program management will analyse relevant statistics for the current and past two years to determine if the field offices are fully utilizing existing budgets for the VDP. If additional funds are required, a business case to Treasury Board Secretariat will be prepared.
The development of new policies and procedures that were identified in the Action Plan has been completed. With the use of the Infozone there is an increased reliance on employees to enter and check the "What's New" section to remain informed. Discussions with the regional employees indicated inconsistency in the awareness level of new protocols, policies, guidelines and the Timeliness Project itself. Although there is a "What's New" section on the Appeals' InfoZone, Appeals officers are not aware when new information relevant to their workloads, such as changes in policy, has been posted.
Recommendation - Communication
The Appeals Branch should review the current communication methods to ensure all employees are up-to-date with policy and procedure changes and the initiatives being undertaken by the Branch and/or Agency.
Action Plan
Branch management supports the use of InfoZone rather than email, therefore all Appeals employees will be encouraged to access regularly the branch's intranet site for new information. The Policy Section has visited the local Appeals Divisions of four regions and will conclude the two other regions by the end of April 2005. During these visits, the Policy Section stressed the importance of verifying the "What's New" of the Appeals Intranet Site to remain informed.
The Timeliness Project and changes to performance standards and targets have resulted in an increased profile for "timeliness" while maintaining the focus on quality. The Action Plan consisted of 90 action items in the four business lines covering both Headquarters and the Regions. Of the initial 90 items, the Region-specific items are completed, four others are no longer applicable due to business changes, and there are ten HQ-specific action items remaining for which action plans are in place. Completion of the two most significant action items remaining should lead to further improvement in the timely delivery of the programs.
The Appeals Branch has quality assurance processes and inventory tracking mechanisms in place to monitor: status of files, time taken to complete workloads, and accuracy to ensure quality is not traded for timeliness. During the audit, the conversion to a new inventory tracking system was taking place. The new web-based functionality allows HQ and field management to monitor changes in inventories in real-time and has addressed concerns regarding management reporting ability.
Some employees interviewed were unaware of newly developed policies, procedures, intra-branch protocols and the Timeliness Project itself. For example, adherence to timeframes outlined in the protocol could not be ensured, nor the consistent usage of new inventory status codes. Steps are required to ensure all staff are encouraged to access regularly the branch's intranet site for new information.
The Branch has indicated that the overall timeliness in the larger business lines has improved since the implementation of the timeliness action plan. However timeliness remains an issue with the CPP/EI business line. The Branch is working with their program partners to identify inefficiencies in the redress process, risk management of files real-time requirements to complete files, and where files should be handled.
![]() |
||
Date modified: 2005-09-12 |
![]() Top of page |
Important notices |