CWB wants money back for EPO

[Ron]

Just got a letter from CWB, says they didnt deduct enough money from 2004 crop for my EPO. They want another 7000 (they were nice when I phoned, will arrange payment plan, didnt think they would charge interest, can deduct it from future CWB payments).
Anybody else get this letter (they said it was a computer software problem with the final payment, nothing to do with the elevator, actually they blamed it on the computers not themselves either)

[food4u]

My sister works for a large oil based orginization in north eastern Alta. and she has told me many times---Computers do not make mistakes JUST the people inputting the data cause the problems.

[food4u]

Glad to see I am not the only one having problems with CWB. Trying to get info from them about producer cars after unload(also get paid for said grain)is like pulling hens teeth. They have a thousand and one reasons but it all points back at them.

[melvill]

This thread got my curiosity up.

I talked to the EPO administrator to get the straight goods. Here's how it goes. Due to a CWB computer programming error, the EPO top-up payment - the difference between the initial prices and the EPO value - was calculated incorrectly for producers' EPOs on grain deliveries between August 1, 2005 and the end of November, 2005. This means this mistake applies to grain delivered early in the 05-06 crop year. In some cases the EPO top-up wasn't big enough and in some cases the EPO top-up was too large. The top-ups that were too low were dealt with relatively quickly but the overpayments had to be recalculated manually. In cases of overpayment, producers were recently informed that they owe the Board the overpaid amount.

Of course, the Board wants its money back. It has agreed to deduct the money from future payments - adjustment and final payments - for the 05-06 crop year. No interest will be charged on the overpayment.

[charliep]

Just curious as to what documentation was shown regarding how the overpayment was calculated? Was it simply a bill for an amount or was some further information provided?

Is there any possibility this money will be deposited into the overall pool accounts versus held in the contingency fund?

[charliep]

Must be summer/brain's on holiday. On the last point, my suspicision is will simply be shown as an adjustment to the overall final payment (money was paid out when it shouldn't have been) so no impact on the contingency. I will find it interesting to see how the contingency fund is handled for the 2005/06 crop year given the fund is at it maximum.

[Ron]

Yeah, what if I have a CAIS claim for 2005, is this income?
What about the new options program, do I refile tax? This is a pain in the #%^#
There is enough paperwork in farming without the CWB screwing up.

[charliep]

Ron

Just a couple of questions.

Was the refund request for the 2004 crop or the 2005?

How much documentation was made around the refund request? Did the CWB show where the number came from?

[melvill]

My understanding is that this excess payout and claim-back is for grain delivered in the fall of 2005 prior to the end of November.

Again, as Charlie asked, was there any detailed documentation with the request for claim-back?

[melvill]

Oh, oh, I had it wrong!! My apologies.

This EPO overpayment was for wheat delivered during the 04-05 crop year. When the final payment was calculated for the 04-05 crop year, some producers, who had used the EPO, received too high a final payment. Those are the producers being asked to refund some money to the CWB. Also, some producers received too low a final payment and those producers have already received the additional funds.

According to my contact at the Board, producers, especially the ones who have been asked for refunds, and who have CAIS and income tax impacts, will have their refunds adjusted by the impact on CAIS and tax - if they provide verification of the amount of the impact. That likely won't be easy.

The Board won't be charging interest to those producers who received too high a final payment and now have to refund it to the Board.

Again my apologies for earlier posts that weren't correct.

[TOM4CWB]

Ron,

The CWB is arrogant ask for this money back after they made a mistake... IMHO.

Only a monopoly could demand the funds back.

One must really ask what kind of audit the CWB has done... if it took this long to find and request the money back.

THe CWB AUdit the private auditor does isn't worth the paper it is written on.

How many more mistakes are made that if they are is the CWB's favour we never hear about?

I have a hard time believing that we are getting the full story on this.

In finding the producers that were short... it was obvious that a normal audit would have picked up the other side on overpayments in a system analisis of accounts.

The CWB is obviously not a commercial company who cares about it's reputation or good will value.

[Ron]

The request was for the 2004 crop year, I delivered grain in Feb 2005 on an EPO contract. I received a letter with a reference to the contract # and a total amount owing. No breakdown of what actually happened.
I am waiting to hear from my accountant (he is on holidays) as to whether this is treated as income or if I can treat it like my CWB advance. It makes a real difference in my tax/CAIS/and the new CFFOP.
I wish they could have figured this out before the end of the year.

[Ron]

Tom, you posted as I was replying to Charlie.
Why do they bother calling it a request for the money as we both know they are going to take it from somewhere regardless of what I say (2005 final payment or 2006 payments, they will get their money. Thats the beauty of their scam, I mean monopoly).

[melvill]

Ron,when you hear from your accountant, please let us know what he says about this interms of tax/CAIS.

Thanks.

[Ron]

Forgot about this, my accountant checked into it and said to treat it as a CWB advance. Not income. I have to amend both income tax and CAIS. Filing for the options program and hoping to get have amendment done before Oct 31 deadline. If not?