Ministry of Children, Community and Social Services
Social Assistance Programs Division
Social Assistance Program Policy Branch
Director's Office
2 Bloor Street West, 4th Floor
Toronto ON M7A 1E9
Tel: (289)927-5801
January 20, 2025
MEMORANDUM TO: Donna Stewart
Ontario Works Administrator
Manitoulin-Sudbury District Services Board
FROM: Cam MacMillan
A/Director
Social Assistance Program Policy Branch
RE: Ontario Works Debts Declared Due to the Crown in Right of Ontario
The Ministry of Children, Community and Social Services (MCCSS) is expanding its overpayment collection efforts. Effective January 27, 2025, the following Ontario Works offices will refer “new inactive” Ontario Works overpayments to the Financial Services Unit (FSU) within MCCSS’ Social Assistance Central Services Branch:
- Algoma District Service Administration Board
- District of Cochrane Social Services Administration Board
- City of Greater Sudbury
- Kenora District Services Board
- Manitoulin-Sudbury District Services Board
- City of Ottawa
- District of Parry Sound Social Services Administration Board
- Rainy River District Social Services Board
- District of Sault Ste Marie Social Services Administration Board
- District of Timiskaming Social Services Administration Board
“New inactive” overpayments include any debts owed by an Ontario Works recipient who terminates from the program on or after January 27, 2025. This includes all pre-existing overpayments on their file. An overpayment owed by an Ontario Works recipient who was terminated from the program prior to this date will not be accepted for collection by the FSU at this time.
This change aligns with:
- ministry efforts to strengthen program integrity by enhancing collection efforts;
- recommendations of the Auditor General of Ontario to expand the use of the Canada Revenue Agency Refund Set Off Program (CRA RSO) to municipalities; and
- the ministry’s designation as a Delivery Agent for Centralized Intake Expansion sites.
Pursuant to section 19(2.1) of the Ontario Works Act, 1997 (see Appendix A), the Director declares that debts owed to the previous delivery agent that meet the following criteria are declared debts due to the Crown in Right of Ontario:
- the overpayments are owed by an Ontario Works recipient whose Ontario Works case terminates on or after January 27, 2025, and
- the overpayment was validated and determined to be collectible, and
- the case has been closed for at least 60 days and notice was sent to the recipient to advise of the outstanding overpayment and the right to appeal, and
- the period to request an Internal Review and/or the appeal to the Social Benefits Tribunal related to the overpayment has expired and all decisions made were final, and
- the overpayment qualifies for the Canada Revenue Agency Refund Set Off (CRA RSO) program as outlined in Ontario Works Policy Directive 9.3 Recovery of Overpayments.
Overpayments that were owed by a former Ontario Works recipient who terminated from the program prior to January 27, 2025 are historical debts and continue to be owed to, and remain collectable by, the municipality.
Also, effective January 27, 2025, all new Ontario Works overpayments (active and inactive) in the above noted areas where the ministry is designated as Delivery Agent, will be debts owed to the Crown in Right of Ontario, and will be recorded and reported in Public Accounts going forward.
Ontario Works offices are expected to continue the collection of active overpayments as per current business processes. New business processes have been developed to support the referral of the new inactive overpayments to the ministry for collection.
This declaration is in accordance with the provisions under the Ontario Works Act, 1997, S.O. 1997, c. 25, Sched. A (see Appendix A for reference).
If you have any questions, please contact me at (289) 927-5801.
Cam MacMillan
c. Jeffrey Bowen, Director, Social Assistance Performance and Accountability Branch
Dr. Andres Laxamana, Director, Social Assistance Central Services Branch
APPENDIX A: Ontario Works Act, 1997, S.O. 1997, c. 25, Sched. A
Overpayment as Debt
19 (2.1) An overpayment by a delivery agent under this Act is a debt due to the delivery agent and may also be declared in writing by the Director to be a debt due to the Crown in right of Ontario. 2021, c. 25, Sched. 21, s. 4.
Debt due to Ministry as delivery agent
19 (2.2) For greater certainty, a debt due to the Ministry as a delivery agent is a debt due to the Crown in right of Ontario. 2021, c. 25, Sched. 21, s. 4.
Method of recovery, debt due to the Crown
19 (22.1) The Crown in right of Ontario may recover an overpayment that is a debt due to the Crown or that has been deemed or declared to be a debt due to the Crown by any remedy or procedure that is available to the Crown by law if the administrator has given a recipient a notice in writing under section 21 and,
(a) the time for commencing an appeal to the Tribunal has expired and no appeal has been commenced; or
(b) the decision is appealed and an overpayment is determined by the decision of the Tribunal. 2006, c. 19, Sched. E, s. 3 (2); 2021, c. 25, Sched. 21, s. 5.