February 28, 2002

Mr. Pierre Lalonde

Regional Director

Eastern Regional Office

Ministry of Community and Social Services

10 Rideau Street
Ottawa, Ontario KIN 9J1

Re: ODSP Delivery and Welfare Fraud Control Delivery Expenditures for 2002

Dear Mr. Lalonde:

I have received your letter dated January 17, 2002 relating to ODSP Program Delivery and Fraud Control Expenditures. As you may know, the 2002 City Budget has now been tabled with Council and at the time your letter was received, we were unable to make adjustments to the submitted budget. This delay in receiving important 2002 Budget information is even more disconcerting when we know that the total projected 2002 ODSP expenditures were available in early fall and could have been communicated to municipalities in a timely manner.

Obviously the City’s share of ODSP administration costs has increased well above the 2001 levels. For Ottawa the amount is $1,092,000 over our 2001 ODSP allocated costs. We now understand that these costs include Welfare Fraud Control Measures (which mostly includes SDMT costs) and we had budgeted an additional $500,000 to cover this increase based on information provided by your staff. We find ourselves in the position of having to internally fund from other sources approximately $500,000 of increased ODSP administration costs. We are currently inquiring into the billing and allocation process of Go-Net charges to the City of Ottawa relative to the Provincial information transmission system. As a funding partner, we expect full disclosure to substantiate public accountability of this item.

SDMT was implemented as a process which would reduce administration costs and bring efficiencies. Instead we are faced with a 1.1 million cost increase in 2002 and a further $825,000 cost increase for 2003 while we are obliged to accept claw-backs of administration subsidies starting at 6% in 2002.

Although the letter sent this year by the Ministry provides more information on expenditures, as a representative of City management, I would expect a much greater level of accountability and reporting with regards to this overall expenditure item which is totally controlled and administered by the Province.

Yours truly,

Dick Stewart
General Manager

People Services Department

c.c. Bruce Thom, City Manager, City of Ottawa

Cynthia Lees, ADM, Ministry of Community and Social Services

Danielle Massé, Director, Employment and Financial Assistance