Review of the Handling of Public
Money Project — Final Report

4.3 Workability of the System

This section looks at the non-technical factors surrounding HPM. HPM has permitted faster, centralized processing of applications and payments, and has created efficiencies of scale. A huge benefit of HPM that CPC staff stressed was the fact that it has greatly reduced cash handling and virtually eliminated risks related to cash management, such as fraud, malfeasance and negligence. Staff security is enhanced, as there is less cash on hand at the CPCs, and the audit trail is better. HPM eliminates the need to use a credit card machine to process payments. It also reduces stress on employees, who no longer need to worry about accidentally losing a money order or cheque. HPM also reduces costs for clients, who no longer need to pay a charge of $4.50 to $7.00 to a bank for a bank order for a CIC payment.

A survey in February 2000 revealed that CPCs received 94 percent of applicants’ kits within three days and 100 percent within eight days. These statistics are improving as more people are using courier services to send their applications to the CPCs.

Clients’ names and addresses almost always appear on the back of the HPM receipts. When they do not, however, CPC staff may need to do additional work to match an application with a receipt. This situation can become even more problematic if, for some reason, the funds do not show up in the system or a refund is required.

CPCs return the application kit to the client if the client does not pay through HPM or pays the wrong amount. In some instances, such mistakes may occur because clients are not reading the application kit carefully or because they are experiencing language barriers. There are added costs to the Department and the client in the mailing of an incomplete application back and forth. With regard to incorrect HPM payment amounts, the CPCs argue that allowing them to accept credit cards over the phone to make up the difference would not only decrease processing delays but would also improve client service and decrease mailing costs.

The compliance rate and the impact of bank deposits on the CPCs, since HPM has been in existence, are worth noting. As mentioned above, HPM has considerably decreased the amount of negotiable instruments received by the CPCs. Before HPM, CPC Sydney handled and deposited, on average, $2.275 million per month in citizenship fees. Since HPM, monthly deposits have significantly decreased (see table 2). However, CPC Sydney (Section Removed) it still allows clients to pay application fee shortages by credit card and accepts cheques (apart from exceptions to HPM, such as applications from abroad). (Section Removed)

Initially, CPC Sydney permitted employees to use these processes in order to reduce the backlog; however, CPC Sydney’s amounts of non-HPM payments continue to be high. A study conducted by CPC Sydney for a one-week period in February 2001 indicated that 1.84 percent of all applications received were paid through non-HPM methods (credit card or money order). Overall in fiscal 2000–01, there were 6,872 applications at CPC Sydney paid with a non-HPM form of payment (or 2.66 percent of the total applications received for the year).

There needs to be a balance between providing client service and maintaining the rationale behind HPM. (Section Removed) It should be noted that the application fees for a Sydney business line are considerably lower than fees for business lines in Mississauga and Vegreville. Therefore, the actual number of applications and transactions being processed using non-HPM forms of payment is notably higher in Sydney.

Table 2
Bank Deposits – CPC Sydney
January 2000 to December 2000

Before HPM, CPC Mississauga’s daily deposits ranged from $250,000 to $350,000 per day. Today, the amount of negotiable instruments and cash being collected has decreased substantially; as a result, CPC only makes weekly deposits to the bank (see table 3). The exceptions to HPM at Mississauga are fees for family class sponsorships from abroad and for adoptions.

Table 3
Bank Deposits – CPC Mississauga
January 2000 to December 2000

Before HPM, daily deposits at CPC Vegreville ranged between approximately $300,000 and $400,000 per day. As shown in table 4, bank deposits have almost been eliminated.

Table 4
Bank Deposits – CPC Vegreville
January 2000 to December 2000

Recommendation 5

(Section Removed)

Management Response

(Section Removed)

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