2024-2025 - 1st Quarter - Quarterly Financial Report

Quarterly Financial Reports

ISSN: 2818-1115
GCCN: V97-3E-PDF

Veterans Review and Appeal Board Quarterly Financial Report

For the quarter ended 30 June 2024

Table of contents

Statement outlining results, risks and significant changes in operations, personnel and program for the quarter ended 30 June 2024

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 better serve Veterans and their families.

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 currently has 20 full-time Members (five less than the maximum of 25) 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 favor 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 2024-25 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 30 June 2024, the Board’s total authorities available for use (i.e. budget) at quarter end are $6.81M more (43% increase) when compared to amounts available at the same quarter-end the previous year, from $15.77M in 2023-24 to $22.58M in 2024-25. Much of the increase in total authorities can be attributed to temporary funding received through Budget 2023 to help address the increased workload being brought forward to the Board and improve service to Veterans and their families.

Actual year to date expenditures at the end of the first quarter showed an increase of $1.39M (43% increase), when compared to the same timeframe in 2023-24. The first quarter of 2024-25 saw an increase in spending on personnel as the Board increased their production capacity, in line with the Budget 2023 initiative, to reduce the growing backlog at the Board and issue decisions to Veterans sooner.

Figure 1 - First Quarter Expenditures Compared to Annual Authorities

Nature of applications chart for 2023-24

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 first quarter (equivalent to 21% of authorities available for use) are 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 noted, the Board has had an increase in personnel. This increased capacity will continue to assist the Board in its top priority of reducing hearing and decision wait times for Veterans. Through funding committed in Budget 2023, the Board has and continues to reduce wait times for Veterans and their families through increased capacity, integration and innovation.

Approved by:

________________________________
Christopher J. McNeil
Chair
Veterans Review and Appeal Board
Charlottetown, PE

________________________________
Sara Lantz
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 30 June 2023

Fiscal year 2023-24 (in thousands of dollars)
  Planned expenditures for the year ending March 31, 2024Footnote 1 Expended during the quarter ended June 30, 2023 Year to date used at quarter-end
Vote 1 - Veterans Review and Appeal Board Operating expenditures 13,838 2,743 2,743
Statutory authorities - Contributions to Employee Benefit Plans - Program 1,932 483 483
Total Budgetary authorities 15,770 3,226 3,226
Non-budgetary authorities 0 0 0
Total Authorities 15,770 3,226 3,226

Quarterly Financial Report for the Quarter Ended 30 June 2024

Fiscal year 2024-25 (in thousands of dollars)
  Planned expenditures for the year ending March 31, 2025 Footnote 2 Expended during the quarter ended June 30, 2024 Year to date used at quarter-end
Vote 1 - Veterans Review and Appeal Board Operating expenditures 20,045 3,985 3,985
Statutory authorities - Contributions to Employee Benefit Plans - Program 2,530 633 633
Total Budgetary authorities 22,575 4,618 4,618
Non-budgetary authorities 0 0 0
Total Authorities 22,575 4,618 4,618

Departmental budgetary expenditures by Standard Object (unaudited)

Quarterly Financial Report for the quarter ended 30 June, 2023

Fiscal Year 2023-24 (in thousands of dollars)
Expenditures Total available for use for the year endedFootnote 3 Used during the quarter ended June 30, 2023 Year to date used at quarter-end
01 Personnel 14,646 3,068 3,068
02 Transportation and communications 74 56 56
03 Information 15 0 0
04 Professional and special services 644 44 44
05 Rentals 38 13 13
06 Repair and maintenance 1 0 0
07 Utilities, materials and supplies 110 25 25
08 Acquisition of land, buildings and works 0 0 0
09 Acquisition of machinery and equipment 239 12 12
10 Transfer payments 0 0 0
11 Public debt charges 0 0 0
12 Other subsidies and payments 3 8 8
Total gross budgetary expenditures 15,770 3,226 3,226
Less Revenues netted against expenditures
Total Revenues netted against expenditures: 0 0 0
Total net budgetary expenditures 15,770 3,226 3,226

Quarterly Financial Report for the quarter ended 30 June, 2024

Fiscal Year 2024-25 (in thousands of dollars)
Expenditures Total available for use for the year ended March 31, 2025 Footnote 4 Used during the quarter ended June 30, 2024 Year to date used at quarter-end
01 Personnel 20,865 4,265 4,265
02 Transportation and communications 543 109 109
03 Information 10 8 8
04 Professional and special services 713 102 102
05 Rentals 143 8 8
06 Repair and maintenance 1 0 0
07 Utilities, materials and supplies 246 19 19
08 Acquisition of land, buildings and works 0 0 0
09 Acquisition of machinery and equipment 53 104 104
10 Transfer payments 0 0 0
11 Public debt charges 0 0 0
12 Other subsidies and payments 1 3 3
Total gross budgetary expenditures 22,575 4,618 4,618
Less Revenues netted against expenditures
Total Revenues netted against expenditures: 0 0 0
Total net budgetary expenditures 22,575 4,618 4,618