ISSN: 2818-1115
For the quarter ended September 30, 2021
Contents
Statement outlinig results, risks and significant changes in operations, personnel and program for the querter ended september 30, 2021
Introduction
This quarterly report has been prepared by management as required by section 65.1 of the Financial Administration Act 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.
On behalf of the Veterans Review and Appeal Board, I am pleased to present the 2020-21 annual report to Parliament on the administration of the Privacy Act.
This legislation gives Canadian citizens the right to access and correct personal information held by the Government of Canada. It also protects the individual’s right to privacy by strictly controlling how the government collects, uses, discloses and disposes of this information.
In 2020-21, the Board’s Access to Information and Privacy (ATIP) Unit experienced an increase in formal access requests and a decrease in privacy requests. Formal access requests increased to 12 from 8 in 2019-20, and formal privacy requests decreased to 21 from 50 in 2019-20. The Board has fully adapted to working and operating remotely during the COVID-19 pandemic.
During the past fiscal year, we had full capacity to receive and respond to access to information and personal information requests while meeting legislated timelines.
The Board’s ATIP Unit continued to make efforts to ensure that staff work with the assurance of privacy at the forefront of everything they do.
The VRAB ATIP Unit successfully held two virtual ATIP training sessions for 27 new employees and Board Members.
In 2020-21, the Board continued to provide applicants with an independent avenue of appeal for their disability benefits decisions. In fulfilling this mandate, we are committed to protecting individual rights and developing our capacity in matters of access to information and privacy.
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 2020-21 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.
When Parliament is dissolved for the purposes of a general election, section 30 of the Financial Administration Act authorizes the Governor General, under certain conditions, to issue a special warrant authorizing the Government to withdraw funds from the Consolidated Revenue Fund. A special warrant is deemed to be an appropriation for the fiscal year in which it is issued.
The Board uses the full accrual method of accounting to prepare and present its annual financial statements that are part of the departmental results reporting process. 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.
Highlights of Fiscal Quarter and Fiscal Year-to-Date (YTD) Results
Statement of Authorities
As of September 30, 2021, the Board’s total authorities available for use (ie. Budget) at quarter end were $2.69 million more when compared to amounts available at the same quarter-end the previous year from $8.92M in 2020-21 to $11.61M in 2021-22. Much of the increase can be attributed to the fact that full supply of Main Estimates in 2020-21 was not received until December due to the COVID-19 pandemic and limited session in the spring for Parliament to study supply.
Actual YTD expenditures at the end of the second quarter showed an increase of $456K (20%) when compared to the same timeframe in 2020-21. This increase is mainly due to increased spending on salary for an additional 10 board members appointed during the third quarter in 2020-21.
In addition, the large discrepancy in Acquisition of Machinery and Equipment is due to coding structure changes from last to current fiscal year reporting.
Figure 1 - Second Quarter Expenditures Compared to Annual Authorities
Text version
Comparison of Net Budgetary Authorities and Expenditures as of September 30, 2020 and September 30, 2021.
This image consists of a bar chart with the y axis broken down into two million dollar increments, the x axis indicating two fiscal years, 2020-21 and 2021-22, each with a blue rectangular bar representing net budgetary authority and a green rectangular bar representing expenditures for the quarter ending September 30. The chart shows that VRAB's budget was 8.92 million in 2020-21 and is 11.61 million in 2021-22 and that the expenditures for the quarter ending September 30 were 2.27 million in 2020-21 and 2.73 million in 2021-22.
Statement of Departmental Budgetary Expenditures by Standard Object
In general, VRAB’s expenditures are distributed equally throughout the year. Expenditures at the end of the second quarter of $5.38K (equivalent to 46% of authorities available for use) are generally consistent with this trend.
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 holds regular 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.
Significant changes in relation to operations, personnel and programs
As the COVID-19 Pandemic continues, the Board is expecting to have very few in person hearings in 2021-22 but is anticipating in-person hearings to resume in 2022-23.
Approved by:
________________________________
Christopher J. McNeil, Chair
Veterans Review and Appeal Board
Charlottetown, PE
________________________________
Sara Lantz, A/Chief Financial Officer
Veterans Affairs Canada
Charlottetown, PE
Financial Statements
Veterans Review and Appeal Board Statement of Authorities (unaudited)
Quarterly Financial Report for the Quarter Ended September 30, 2020
Fiscal year 2020-2021 (in thousands of dollars)
| Planned expenditures for the year ending March 31, 2021* | Expended during the quarter ended September 30, 2020 | Year to date used at quarter-end | |
|---|---|---|---|
| Vote 1 - Veterans Review and Appeal Board Operating expenditures | 7,625 | 1,950 | 3,789 |
| Statutory authorities - Contributions to Employee Benefit Plans - Program | 1,297 | 324 | 648 |
| Total Budgetary authorities | 8,922 | 2,274 | 4,437 |
| Non-budgetary authorities | 0 | 0 | 0 |
| Total Authorities | 8,922 | 2,274 | 4,437 |
*Includes only Authorities available for use and granted by Parliament at quarter-end.
Veterans Review and Appeal Board Statement of Authorities (unaudited)
Quarterly Financial Report for the Quarter Ended September 30, 2021
Fiscal year 2021-2022 (in thousands of dollars)
| Planned expenditures for the year ending March 31, 2022* | Expended during the quarter ended September 30, 2021 | Year to date used at quarter-end | |
|---|---|---|---|
| Vote 1 - Veterans Review and Appeal Board Operating expenditures | 10,276 | 2,397 | 4,716 |
| Statutory authorities - Contributions to Employee Benefit Plans - Program | 1,331 | 333 | 665 |
| Total Budgetary authorities | 11,607 | 2,730 | 5,381 |
| Non-budgetary authorities | 0 | 0 | 0 |
| Total Authorities | 11,607 | 2,730 | 5,381 |
*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 September 30, 2020
Fiscal year 2020-2021 (in thousands of dollars)
| Expenditures | Total available for use for the year ended March 31, 2021* | Used during the quarter ended September 30, 2020 | Year to date used at quarter-end |
|---|---|---|---|
| 01 Personnel | 8,242 | 2,216 | 4,322 |
| 02 Transportation and communications | 330 | 3 | 9 |
| 03 Information | 4 | 2 | 2 |
| 04 Professional and special services | 209 | 19 | 27 |
| 05 Rentals | 13 | 1 | 6 |
| 06 Repair and maintenance | 19 | - | 0 |
| 07 Repair and maintenance | 36 | 17 | 32 |
| 08 Acquisition of land, buildings and works | 0 | - | 0 |
| 09 Acquisition of machinery and equipment | 69 | 3 | 20 |
| 10 Transfer payments | 0 | - | 0 |
| 11 Public debt charges | 0 | - | 0 |
| 12 Other subsidies and payments | 0 | 13 | 19 |
| Total gross budgetary expenditures | 8,922 | 2,274 | 4,437 |
| Less Revenues netted against expenditures | |||
| Total Revenues netted against expenditures: | 0 | 0 | 0 |
| Total net budgetary expenditures | 8,922 | 2,274 | 4,437 |
*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 September 30, 2021
Fiscal year 2021-2022 (in thousands of dollars)
| Expenditures | Total available for use for the year ended March 31, 2022* | Used during the quarter ended September 30, 2021 | Year to date used at quarter-end |
|---|---|---|---|
| 01 Personnel | 10,660 | 2,662 | 5,264 |
| 02 Transportation and communications | 237 | 2 | 4 |
| 03 Information | 12 | 0 | 0 |
| 04 Professional and special services | 252 | 52 | 77 |
| 05 Rentals | 28 | 3 | 5 |
| 06 Repair and maintenance | 13 | 0 | 0 |
| 07 Utilities, materials and supplies | 92 | 12 | 17 |
| 08 Acquisition of land, buildings and works | 0 | 0 | 0 |
| 09 Acquisition of machinery and equipment | 313 | 0 | 0 |
| 10 Transfer payments | 0 | 0 | 0 |
| 11 Public debt charges | 0 | 0 | 0 |
| 12 Other subsidies and payments | 0 | -1 | 14 |
| Total gross budgetary expenditures | 11,607 | 2,730 | 5,381 |
| Less Revenues netted against expenditures | |||
| Total Revenues netted against expenditures: | 0 | 0 | 0 |
| Total net budgetary expenditures | 11,607 | 2,730 | 5,381 |
*Includes only Authorities available for use and granted by Parliament at quarter-end.