6.0 Program economy

6.1 Funeral and Burial Program – operating and administration efforts

The cost of funerals and burials can vary, depending on personal preference and location. The eligible Funeral and Burial benefit amounts are deemed to be appropriate. From 2017-18 to 2020-21, average funding approved per case ($6,540) is under the maximum eligible amount of $7,376. Feedback from interviewees indicates funding is sufficient, and there are no indications from Last Post Fund survey respondents that the funding is insufficient.

Similar to the decrease in Funeral and Burial Program recipients, the program expenditures have decreased between 2017-18 and 2020-21. Overall, program expenditures have declined 45% over this period.

Source: AED analysis of Last Post Fund financial data.

As can be seen in Table 14, the Last Post Fund administrative costs range from 18% to 20% annually. The evaluation team considers this range appropriate given the organizations efforts to reduce operating costs in previous years, while maintaining service standards. Furthermore, a base level of administrative support is required in order to deliver a hands-on program in order to ensure care, compassion, and respect during a significant life event. The evaluation finds that the Last Post Fund provides expertise in administering the program as well as maintaining relationships across the country with Last Post Fund branches, funeral homes, and grave marker suppliers.

Traditionally, VAC used a standard model to distribute salary and operations and maintenance (O&M) costs across Commemoration programs. This model was based on percentage allocation. During the evaluation period the way that administrative costs are allocated switched to a direct allocation of costs (salary and O&M) tied to program level activity codes. It is expected that this new model will be more accurate and will enable a more thorough trend analysis in the future.

During the first nine months of fiscal year 2021-22 (1 April 2021 to 31 December 31 2021), the Last Post Fund approved 595 unmarked grave applications. This compares to 605 for the entire 2020-21 fiscal year. An additional 840 applications are pending Last Post Fund review.^{Footnote 26}

The Last Post Fund is forecasting approval of approximately 980 unmarked grave applications in 2022-23. To put this into perspective, this is more than triple the number approved in 2016-17. Approval levels should continue to be monitored to ensure adequate funding is available.

6.2 Cemetery and Grave Marker Maintenance Program – operating and administration efforts

Administrative and operating costs for the Cemetery and Grave Marker Maintenance Program can be broken into two streams: costs associated with the inspection and maintenance of graves (backlog project) and costs associated with the operation of VAC owned cemeteries.

6.2.1 Backlog project operating and administration

As discussed in section 4.1.2.2, the backlog project is trending to be on time and on budget with a completion date of March 2023. Financial expenditures show that approximately $14.27 million of the $24.4 million project budget was spent as of 31 March 2021.

6.2.2 Post backlog project

While five-year funding for the backlog project has allowed the grave marker maintenance team to reduce the backlog of repairs significantly, maintaining an adequate inspection cycle post-project will be challenging. The evaluation finds that the current $1.25 million allocated to the Cemetery and Grave Marker Maintenance Program is insufficient to prevent a future maintenance backlog. As per the departmental responsibilities and legislative requirements identified in section 3.2, VAC has an obligation to maintain Veteran grave markers placed by the department in perpetuity. Based on current funding levels and associated inspection cycle, there is a risk of not adequately fulfilling this obligation.

The program’s current funding reference level has not changed substantially since 2009, yet the number of graves VAC is maintaining has grown significantly over that period.^{Footnote 27} The number of graves tracked and maintained will grow more than 40% (from 177,366 to 250,000^{Footnote 28} over the ten-year period 2012-13 to 2022-23. In addition, a portion of the program funding (approximate 14%) is dedicated to the operation of two VAC owned cemeteries (see section 6.2.3 for more information).

For the duration of the backlog project, the Commonwealth War Graves Commission contract was amended in order to divide the workload. During the project the Commonwealth War Graves Commission is responsible for inspecting and coordinating maintenance of 30% of the grave marker inventory at a cost of up to $1.85 million annually. This is more than the total Cemetery and Grave Marker Maintenance budget for the remaining 70% of the grave marker inventory, plus the care and maintenance of the two departmental cemeteries ($1.25 million).

Interviews conducted with Cemetery and Grave Marker Maintenance staff, representatives of the Commonwealth War Graves Commission, and Commemoration Division management indicate that returning to the financial status quo after the backlog project will result in a situation where grave markers cannot be inspected and maintained within the current 12-year cycle. Further, the 12-year inspection cycle itself was adopted in response to funding levels, not as a best practice. The Commonwealth War Graves Commission currently inspects the graves it is responsible for on a 6-year basis. Interviews suggest that inspections should occur (optimally) somewhere between the 6–12-year mark (the Commonwealth War Graves Commission is exploring moving to an 8-year cycle).

Recommendation #1

It is recommended that the Director General, Commemoration explore opportunities to seek ongoing funding to address the increasing cost of maintaining the grave marker inventory and to develop and implement an appropriate grave inspection/maintenance cycle.

Management response: Veterans Affairs Canada agrees with this recommendation.

6.2.3 Departmental cemeteries

VAC owns and operates two Veterans cemeteries: Fort Massey Cemetery in Halifax, Nova Scotia and Veterans Cemetery (more commonly known as God’s Acre Cemetery) in Esquimalt, British Columbia. These two cemeteries and the buildings attached to them constitute the entirety of VAC real property owned and maintained in Canada.

The operation of Fort Massey Cemetery and God’s Acre Cemetery is funded through the Cemetery and Grave Marker Maintenance Program. Approximately 14% of the program’s $1.25 million annual budget is allocated between the two cemeteries. However, during the period of the evaluation, additional funds from the program’s annual allotment were distributed to each cemetery for capital improvements (discussed in sections 6.2.3.1 and 6.2.3.2)

6.2.3.1 Fort Massey Cemetery

Located in Halifax, Fort Massey Cemetery is situated on 2.6 acres of land containing approximately 1,600 interments. As previously mentioned, the cemetery is closed to new burials, with the exception of spouses of buried Veterans. Within the cemetery, there are several historical/cultural assets including the Cross of Sacrifice, the Halifax (Fort Massey) Memorial, and many historical grave markers (the cemetery dates back to 1778).

VAC contracts with a part-time caretaker to arrange spousal burials at Fort Massey (on rare occasions) and to oversee day-to-day operations at the cemetery. Public Services and Procurement Canada, under contract with VAC, tenders general maintenance, snow removal, and lawn care for the cemetery. As Figure 3 indicates, yearly operating expenditures throughout the evaluation period ranged from approximately $43,000 to $55,000.

Figure 3 – Fort Massey Cemetery operating expenditures

Source: AED analysis of program area data

While expenditures are relatively stable at Fort Massey, investment to prevent a retaining wall from collapsing accounted for $18,000 in expenditures in 2020-21 and is forecasted to add approximately $100,000 to operating costs in 2021-22.

Interviews and program documentation reveal that while Fort Massey Cemetery is essentially closed to new interments, several concerns have been identified that need to be addressed:

1. An operational plan does not exist for the cemetery. Annual/regular site inspections should be based on a formal plan.
2. There is difficulty finding people/companies with the expertise to maintain heritage markers at the site.
3. A heritage review and plan for presentation of the site to the public has not been updated since the early 2000s.
4. There may be up to 2,500 unmarked graves in the cemetery, however, the cemetery was established in the 1700s and there is uncertainty as to how many of those are Veteran graves.

While ongoing maintenance of the cemetery is relatively straight forward, when unexpected or larger projects must be undertaken, there is little room for additional expenses within the current annual allocation of $1.25 million for the entire program.

6.2.3.2 God’s Acre Cemetery

Cemetery operations at God’s Acre Cemetery in Esquimalt, British Columbia are more complex than at Fort Massey. God’s Acre is an active cemetery that has been in operation since 1868. More than 2,500 military personnel and their family members are buried on approximate 2.7 acres of land. The cemetery is part of the Esquimalt Naval Sites National Historic Site of Canada, a historic district that incorporates four important naval station sites that form a ring around Esquimalt harbor:

• Her Majesty’s Canadian (HMC) Dockyard;
• the former Royal Navy Hospital;
• the Veterans’ Cemetery (God’s Acre); and
• the Cole Island Magazine.

Like Fort Massey, God’s Acre has national historic value. A small chapel at the cemetery was designated as a Recognized Federal Heritage Building in 1996 because of its historical associations, its architecture, and environmental value. The chapel is still in use, with special permission, for marriages, christenings, memorial services, and other special events.

VAC contracts with a local caretaker to provide year-round maintenance services and to coordinate burials in the cemetery. Yearly operating expenditures at God’s Acre average approximately $123,000 (including the caretaker’s salary). As Figure 4 shows, expenditures can fluctuate depending on additional maintenance and equipment needed (e.g., tree removal, updating sprinklers, maintenance equipment updates, etc.).

Figure 4 – God’s Acre Cemetery operating expenditures

*Excludes project expenditures to expand the cemetery and construct new buildings.

Source: AED analysis of program area data

In 2015, VAC began expanding God’s Acre as the cemetery was nearing full capacity. The Department purchased a .65-acre piece of land adjacent to the cemetery to create a new Columbarium Garden with room for an additional 1,500 interment spaces. Project work was completed during the 2018-19 fiscal year (within the evaluation time frame) at a total cost of $2.25 million ($450,000 for land purchase and $1.8 million for the Columbarium Garden).

A second project to replace the existing garage building and to repave roads and trails was completed in 2019-20 at a cost of $1.5 million. The upgraded facilities were supposed to allow for on-site staffing to facilitate increased burials at the cemetery. However, health and safety concerns with the structure have restricted on-site activities. The evaluation finds that a thorough health and safety plan has not been completed for God’s Acre nor has there been a plan developed that takes into consideration cemetery operations post-expansion. The evaluation team could find no evidence that formal policies have been developed to define who can be interred at God’s Acre (e.g., Veterans versus family members), how plots are obtained and reserved (e.g., presale of lots) or plot pricing. In addition, no business processes are in place for the handling of funeral payments and the storing of cemetery information.

The evaluation also finds that, like Fort Massey Cemetery, there is no plan in place to protect the cultural and historical integrity of God’s Acre. Interviews with staff point to a need for expertise in this area as the cemetery has been designated as a National Historic Site. In addition, there is a high standard set by the level of care of war dead graves and cemeteries in Europe.

Interviews and documentation review conclude that up-to-date operational plans do not exist for God’s Acre Cemetery and Fort Massey Cemetery. Policies and procedures have not been created to formalize operations at each site. Therefore, the evaluation makes the following recommendations:

Recommendation #2

It is recommended that the Director General, Commemoration, conduct a comprehensive operations and maintenance review at God’s Acre Cemetery in Esquimalt, British Columbia and Fort Massey Cemetery in Halifax, Nova Scotia. The review should identify areas where plans, policies, and procedures need to be formalized and take into consideration environmental and long-term preservation requirements.

Management response: Veterans Affairs Canada agrees with this recommendation.

Recommendation #3

Building on recommendation #2, it is recommended that the Director General, Commemoration, develop and implement an operations and maintenance plan for God’s Acre Cemetery and Fort Massey Cemetery, and pursue stable long-term resources to allow for efficient implementation.

Management response: Veterans Affairs Canada agrees with this recommendation.