*Explanatory Notes from the Ministry of Employment and Income Assistance:

1. The number of criminal convictions each year varies as there is a lag time between the allegation, approval for charges to be laid and moving the case through the court system to conviction and sentencing.
2. The number of orders/judgements in Small Claims Court has decreased over the past fiscal year due in large part to a court ruling that a lawyer must act on behalf of the Ministry, where previously EIA Investigation Officers would attend court and represent the Ministry.
3. The value of the court orders/judgements is not necessarily the amount paid or collected.
4. EIA is committed to providing income assistance to people most in need and its Accountability to taxpayers in doing so.
5. The Ministry, therefore, does not tolerate any abuse of the system and actively pursues all allegations or suspicions of fraud.
   1. The Ministry is now placing a much greater emphasis on prevention and compliance in our effort to reduce fraud.
   2. Staff are working more proactively to deter individuals and prevent fraud from occurring in the first place as well as working to increase the level of compliance of individuals who owe the ministry money, rather than attempting to recoup monies later through collections and the court system.
   3. The Ministry has new sanctions in place to encourage clients to accurately and completely report their circumstances including income and assets, employment and family unit status.
6. These proactive measures help ensure funds are going to those most in need and that we are fiscally accountable to BC taxpayers.

**Explanatory Notes from the Ministry of Forest and Range:

1. Individuals or firms that harvest Crown timber without authority are required to pay stumpage (a fee to the Crown) on that timber. As a result, the only confirmed revenue loss from unauthorized timber harvest involves cases where officials have been unable to identify the individual or firm responsible for harvesting. The $135,722 figure consists of the estimated stumpage loss resulting from that unauthorized harvest, as well as an estimate of the loss resulting from unauthorized harvest that officials have not discovered. Officials estimate that they discover 90% of cases of unauthorized harvest in the Province, so the $135,722 figure includes an amount equal to 10% of all cases of unauthorized harvest. Similarly, the estimated number of incidents of unauthorized harvest was derived based on the estimate that known incidents account for 90% of all incidents, and undiscovered incidents account for the remaining 10%.