2015-2016 - 3rd Quarter - Quarterly Financial Report

For the quarter ended December 31, 2015

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I. Statement outlining results, risks and significant changes in operations, personnel and program for the quarter ended December 31, 2015

1. Introduction

This quarterly report has been prepared by management as required by section 65.1 of the Financial Administration Act (Opens a New Window) and in the form and manner prescribed by the Treasury Board. This quarterly report should be read in conjunction with the Main Estimates.

The Veterans Review and Appeal Board (VRAB) is the arm’s-length administrative tribunal that provides an independent avenue of redress for disability benefits decision made by Veterans Affairs Canada. The Board supports Veterans, Canadian Armed Forces and RCMP members, and their families in obtaining the benefits they are entitled to for service-related disabilities. The Board gives Veterans their only opportunity to appear before decision-makers to tell their story. The Board’s program is not only essential to fairness in the disability benefits adjudication system, it is important to the well-being of Veterans and their families. Board Members and staff keep this front of mind as we work together to deliver the appeal program and look for ways to serve Veterans and their families better.

The Board offers two levels of redress for disability benefits decisions: a Review hearing; and, if the Veteran remains dissatisfied, a subsequent Appeal hearing. It also provides the final level of appeal for War Veterans Allowance decisions. The Board is a micro-organization with a small, dedicated staff. The Board has up to 25 full-time Members who hear cases brought forward for redress at the Board, and decide whether the evidence meets the requirements of the legislation to award new or increased levels of disability benefits. In deciding cases, they conduct a thoughtful analysis of all available information (i.e. oral testimony, medical reports, opinion evidence from experts, written statements, etc.) and discuss the merits of the case, bearing in mind the requirement to resolve any doubt in the weighing of evidence in favour of the Veteran.

A summary description of the Veterans Review and Appeal Board program activities can be found in Part II of the Main Estimates.

Basis of Presentation

This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities includes the Board’s spending authorities granted by Parliament and those used by the Board, consistent with the Main Estimates for the 2015-16 fiscal year. This quarterly report has been prepared using a special purpose financial reporting framework designed to meet financial information needs with respect to the use of spending authorities.

The authority of Parliament is required before monies can be spent by the Government. Approvals are given in the form of annually approved limits through appropriation acts or through legislation in the form of statutory spending authority for specific purposes.

As part of the departmental performance reporting process, the Board prepares its annual departmental financial statements on a full accrual basis in accordance with Treasury Board accounting policies, which are based on Canadian generally accepted accounting principles for the public sector. However, the spending authorities voted by Parliament remain on an expenditure basis.

The quarterly report has not been subject to an external audit or review.

2. Highlights of Fiscal Quarter and Fiscal Year-to-Date (YTD) Results

Statement of Authorities

As of December 31, 2015, the Board’s total authorities available for use has decreased when compared to the same quarter of 2014-15 to $11.37 million. Actual YTD expenditures at the end of the third quarter showed a decrease of 5.5%, from $2.75 million in 2014-15 to $2.60 million in 2015-16. Expenditures in all categories have decreased with the exception of Utilities, materials and supplies.

Figure 1 - Third Quarter Expenditures Compared to Annual Authorities

 

  

Text Version

Comparison of Net Budgetary Authorities and Expenditures as of December 31, 2014 and December 31, 2015. This image consists of a bar chart with the y axis broken down into two million dollar increments, the y axis indicating two fiscal years, 2014-15 and 2015-16, a blue rectangular bar representing net budgetary authority and the red rectangular bar representing expenditures for the quarter ending December 31. The chart shows that VRAB's budget was 11.39 million in 2014-15 and is 11.37 million in 2015-16 and that the expenditures for the quarter ending December 31 were 2.75 million in 2014-15 and 2.60 million in 2015-16.

 

Statement of Departmental Budgetary Expenditures by Standard Object

In general, VRAB’s expenditures are distributed equally throughout the year. This trend is consistent in this fiscal year, given that expenditures at the end of the third quarter are equivalent to 70% of authorities available for use.

Most standard object category expenditures are equal to or lower than prior year spending trends.

3. Risks and Uncertainties

The Veterans Review and Appeal Board is funded through annual appropriations. As a result, its operations are impacted by any changes in funding approved through Parliament.

Context: The Board provides a national appeal program. It holds hearings and issues decisions for Veterans and their families. As a service-oriented agency, the majority of VRAB’s operating expenditures are salary based and demand-driven. Managing the demand for hearings is driven by a variety of factors over which VRAB has limited control.

The Board has an Integrated Business and Human Resources Plan and holds quarterly meetings to take into account operational priorities, human and financial resources, and performance measures. VRAB recruits new employees, as required, to replace departing staff to ensure adequate operational support to the redress process. Authorities and expenditures are monitored regularly with senior management.

4. Significant changes in relation to operations, personnel and programs

There have been no significant changes in relation to operations, personnel and programs over the last year.

Approved by:

II. Statement of Authorities (unaudited)

Quarterly Financial Report for the Quarter Ended December 31, 2014

Fiscal year 2014-15

(in thousands of dollars)	Planned expenditures for the year ending March 31, 2015*	Expended during the quarter ended December 31, 2014	Year to date used at quarter-end
Vote 1 - Veterans Review and Appeal Board Operating expenditures	9,979	2,401	7,177
Statutory authorities - Contributions to Employee Benefit Plans - Program	1,410	352	1,057
Total Budgetary authorities	11,389	2,753	8,234
Non-budgetary authorities	-	0	0
Total Authorities	11,389	2,753	8,234

*Includes only Authorities available for use and granted by Parliament at quarter-end.

Quarterly Financial Report for the Quarter Ended December 31, 2015

Fiscal year 2015-16

(in thousands of dollars)	Planned expenditures for the year ending March 31, 2016	Expended during the quarter ended December 31, 2015	Year to date used at quarter-end
Vote 1 - Veterans Review and Appeal Board Operating expenditures	9,934	2,243	6,827
Statutory authorities - Contributions to Employee Benefit Plans - Program	1,436	359	1,077
Total Budgetary authorities	11,370	2,602	7,904
Non-budgetary authorities	0	0	0
Total Authorities	11,370	2,602	7,904

*Includes only Authorities available for use and granted by Parliament at quarter-end.

 

Departmental budgetary expenditures by Standard Object (unaudited)

Quarterly Financial Report for the Quarter Ended December 31, 2014

Fiscal year 2014-15

Expenditures (in thousands of dollars)	Total available for use for the year ending March 31, 2015*	Used during the quarter ended December 31, 2014	Year to date used at quarter-end
01 Personnel	9,956	2,463	7,119
02 Transportation and communications	609	201	600
03 Information	8	1	6
04 Professional and special services	337	67	146
05 Rentals	15	1	12
06 Repair and maintenance	28	3	4
07 Utilities, materials and supplies	65	11	32
08 Acquisition of land, buildings and works	0	0	0
09 Acquisition of machinery and equipment	71	6	21
10 Transfer payments	0	0	0
11 Public debt charges	0	0	0
12 Other subsidies and payments	300	0	294
Total gross budgetary expenditures	11,389	2,753	8,234
Less Revenues netted against expenditures
Total Revenues netted against expenditures:	0	0	0
Total net budgetary expenditures	11,389	2,753	8,234

Quarterly Financial Report for the quarter ended December 31, 2015

Fiscal year 2015-16

Expenditures (in thousands of dollars)	Total available for use for the year ending March 31, 2016*	Used during the quarter ended December 31, 2015	Year to date used at quarter-end
01 Personnel	9,982	2,367	7,258
02 Transportation and communications	757	172	425
03 Information	4	0	0
04 Professional and special services	420	41	142
05 Rentals	50	1	34
06 Repair and maintenance	26	1	1
07 Utilities, materials and supplies	51	14	31
08 Acquisition of land, buildings and works	0	0	0
09 Acquisition of machinery and equipment	80	6	13
10 Transfer payments	0	0	0
11 Public debt charges	0	0	0
12 Other subsidies and payments	0	0	0
Total gross budgetary expenditures	11,370	2,602	7,904
Less Revenues netted against expenditures
Total Revenues netted against expenditures:	0	0	0
Total net budgetary expenditures	11,370	2,602	7,904

^*Includes only Authorities available for use and granted by Parliament at quarter-end.