1.0 Background

The Institute of Internal Auditors (IIA) International Standards for the Professional Practice of Internal Auditing defines governance as "the combination of processes and structures^{Footnote 1} implemented by senior management to inform, direct, manage, and monitor the activities of the organization toward achievement of its objectives.” An effective governance framework sets the organization’s strategic direction, and manages and oversees its activities or supports the organization’s strategic direction. Governance bodies should have clearly communicated mandates that include, as appropriate, roles with respect to both oversight and strategic direction.

Veterans Affairs Canada (VAC) values the contribution that Veterans have made to the development of our nation and honour the sacrifices they have made. The Department exists to repay the nation's gratitude toward those efforts which have contributed to our growth as a nation. The Department meets its responsibilities through its various programs. These include programs for disability pensions, veteran’s allowances, pension advocacy, health care, and commemoration^{Footnote 2}.

To assist in achieving these goals, the Department has been divided into four branches which report directly to the Deputy Minister. These branches are:

• Service Delivery;
• Strategic Policy and Commemoration;
• Chief Financial Officer and Corporate Services; and
• Strategic Oversight and Communications.

Figure 1 – VAC's Four Branches

Figure 1 – The Department's four branches

• Deputy Minister
  • Associate Deputy Minister
    • Assistant Deputy Minister, Service Delivery
    • Assistant Deputy Minister, Strategic Policy and Commemoration
    • Assistant Deputy Minister, Chief Financial Officer and Corporate Services
    • Assistant Deputy Minister, Stretegic Oversight and Communications

The above-noted organizational structure is supported by three senior level management committees:

• Senior Management Committee (SMC);
• Corporate Management Committee (CMC); and
• Director General Policy and Program Review Committee (DGPPRC).

Figure 2 – VAC's Senior Level Management Committees

Figure 2 – The Department's Three Senior Level Management Committees

• Senior Management Committee (SMC)
  Chair – Deputy Minister
  • Director General Policy and Program Review Committee (DGPPRC)
    Chair – ADM, Strategic Policy and Commemoration
  • Corporate Management Committee (CMC)
    Chair – ADM, Chief Financial Officer and Corporate Services