MCSS DOG/WEG REPAYMENT REQUEST  (January 2001)

Many childcare centres received on December 22, 2000 a demand from The Ministry of Community and Social Services (“MCSS”) for alleged undistributed pay equity funding received in 1999.  The demands came, for many centres, on the last day before the holidays.  The timing was unfortunate to say the least.

It seems that the demands result from the design of the original 1999 Grant Utilization Form (“GUF”) used by MCSS and completed by centres to report on distribution of DOG/WEG received in 1999.  The forms did not request or require that the lump sum pay equity amount received in March 1999 for 1995 through 1998 be included in the “grants received” line on the form.  As a result, many centres did not report to MCSS that the lump sum pay equity payment was fully paid out.  The MCSS demand letter requests that either a new revised GUF form be completed or that undistributed pay equity grants be refunded immediately.

Assuming that the requested “underpayment” results from not reporting the pay equity lump sum payment in 1999 and that your lump sum payment has been fully distributed, the problem is easy to fix.  On the new GUF form sent with the demand letter:

1.       enter the alleged undistributed grant amount to line #2 of the new form. 

2.       This same amount should also be added to the original Amount Used For Salaries (old line     #3, new line #4).  

3.       The other amounts originally reported on the GUF form should be copied onto lines #1, #5, #6, #8 and #9. 

4.       Complete the arithmetic on the form.

The variance, line #11, should now be the same as originally reported to MCSS.  Mail in the form and the issue will hopefully be dealt with.

If you have any questions please do not hesitate to email us.