Actual expenditures
| 2016–17 | 2017–18 | 2018–19 | 2019–20 | 2020–21 | 2021–22 | |
|---|---|---|---|---|---|---|
| Statutory | 37 | 33 | 33 | 38 | 35 | 34 |
| Voted | 3,734 | 4,741 | 4,657 | 4,306 | 4,294 | 4,365 |
| Total | 3,771 | 4,774 | 4,690 | 4,344 | 4,328 | 4,399 |
Budgetary performance summary for Core Responsibilities and Internal Services (dollars)
| Core Responsibilities and Internal Services | 2018–19 Main Estimates | 2018–19 Planned spending | 2019–20 Planned spending | 2020–21 Planned spending | 2018–19 Total authorities available for use | 2018–19 Actual spending (authorities used) | 2017–18 Actual spending (authorities used) | 2016–17 Actual spending (authorities used) |
|---|---|---|---|---|---|---|---|---|
| Benefits, Services and Support | 4,263,463,384 | 4,263,463,384 | 4,205,757,171 | 4,203,586,328 | 4,628,904,114 | 4,528,562,537 | 4,627,278,058 | 3,629,832,295 |
| Commemoration | 42,409,890 | 42,409,890 | 44,916,250 | 42,956,187 | 46,546,511 | 45,032,805 | 56,866,415 | 55,553,811 |
| Veterans Ombudsman | 5,386,623 | 5,386,623 | 5,502,468 | 5,502,531 | 5,360,084 | 3,735,430 | 4,960,234 | 4,630,182 |
| Subtotal | 4,311,259,897 | 4,311,259,897 | 4,256,175,889 | 4,252,045,046 | 4,680,810,709 | 4,577,330,772 | 4,689,104,707 | 3,690,016,288 |
| VAC’s Internal Services | 83,294,535 | 83,294,535 | 87,875,420 | 76,061,838 | 115,087,113 | 113,132,181 | 84,786,373 | 80,792,453 |
| Total | 4,394,554,432 | 4,394,554,432 | 4,344,051,309 | 4,328,106,884 | 4,795,897,822 | 4,690,462,953 | 4,773,891,080 | 3,770,808,741 |
VAC builds its annual budget to be responsive to Veterans’ needs. Accurate forecasting is important, as it helps ensure enough funding for all eligible Veterans who need help in a given year. The Department's budget fluctuates each year because most programs are based on Veterans’ needs and entitlements. Despite spending forecasts, all program and internal budgets are monitored closely to ensure Veterans and their families receive the care and support they need. Simply put, a Veteran who is entitled to a benefit will be paid that benefit, no matter how many Veterans come forward in a given year.
As shown in the financial tables, VAC spent $4.7 billion in 2018–19. Of that budget, more than 90% covered payments to or on behalf of Veterans, their families, and other program recipients. When comparing actual spending to planned spending for 2018–19 fiscal year, actual spending was higher by approximately $296 million. The increase in spending occurred due to the demand for certain programs being higher than forecasted as well as an increase in the number of claims completed over the previous year. Programs such as Disability Awards, Career Impact Allowance and Veterans Emergency Fund, saw an increase in applications. As well, additional operational funding was received to implement Pension for Life programs, to increase service delivery capacity, and to expedite repairs to graves cared for by VAC.
Planned spending for 2019–20 was originally forecasted to decrease from the previous year primarily due to the transition to Pension for Life. Beginning in 2019, the default option of a monthly benefit through Pension for Life will spread payments over the course of Veterans’ lives, resulting in lower near-term cash payments, but increasing the lifetime value of Veterans’ benefits. However, current Departmental forecasts are predicting higher program payment expenditures by the end of 2019–20 as compared to last fiscal year (2018–19) due to higher-than-expected uptake of lump sum benefit payments, reflecting Veterans’ ability to choose the financial arrangement that best suits their individual circumstances.
In fiscal year 2020–21, planned spending is forecasted to decrease by approximately $16 million when compared to planned spending of fiscal year 2019–20. This reflects the end of temporary funding for PFL implementation and Budget 2018 initiatives.
In fiscal year 2021–22, planned spending is forecasted to increase by $71 million to $4.4 billion when compared to planned spending in fiscal year 2020–21.
Increased demand is anticipated in fiscal years 2020–21 and 2021–22 for many programs and services as recent trends in client demand for the new Pension for Life benefits and services show an increase in demand and costs. Investment in innovation is also expected to increase productivity, which will translate to enhanced services for Canada’s Veterans and their families. Any additional funding required for this increased demand will be sought through future Estimates cycles to ensure all eligible Veterans receive the benefits and supports they require, regardless of the number that come forward.
It is important to note, that all program and internal budgets will be monitored closely to ensure that the necessary resources are available so that Veterans and their families receive the care and support they need.
Actual human resources
Human resources summary for Core Responsibilities and Internal Services (full-time equivalents)Footnote 9
| Core Responsibilities and Internal Services | 2016–17 Actual | 2017–18 Actual | 2018–19 Planned | 2018–19 Actual | 2019–20 Planned | 2020–21 Planned |
|---|---|---|---|---|---|---|
| Benefits, Services and Support | 1,887.2 | 1,961.4 | 1,951.1 | 2,076.4 | 2,310.5 | 2,048.6 |
| Commemoration | 91.0 | 88.4 | 89.6 | 86.0 | 95.4 | 92.6 |
| Veterans Ombudsman | 32.0 | 34.1 | 38.0 | 34.3 | 38.0 | 38.0 |
| Subtotal | 2,010.2 | 2,083.9 | 2,078.7 | 2,196.7 | 2,443.9 | 2,179.2 |
| VAC’s Internal Services | 626.0 | 645.8 | 646.1 | 671.0 | 723.1 | 697.0 |
| Total | 2,636.2 | 2,729.7 | 2,724.8 | 2,867.7 | 3,167.0 | 2,876.2 |
VAC hired 6% more service delivery staff in 2018–19 (125.3 FTEs in total for Benefits Services and Support) than planned. This is primarily a result of funding announced in Budget 2018 in support of Service Excellence and Pension for Life implementation.
Going forward, these new employees will strengthen capacity within the core responsibility of Benefits, Services and Support. Improvements to these programs will help ensure long-term financial security for disabled Veterans while providing compensation for pain and suffering.
The number of full-time equivalent staff members for the Benefits, Services and Support core responsibility (specifically disability benefit programs) has increased steadily since 2015–16. These employees directly contribute to the delivery of VAC’s programs and front-line services across the country.
The number of employees in the Canada Remembers Program and in the Office of the Veterans Ombudsman remained relatively stable in 2018–19 when compared to 2017–18.
In 2018–19, the number of employees within the Internal Services category increased by approximately 4% compared to what was planned. This is in-line with VAC’s overall increases to improve the service delivery capacity and to support the implementation of the new PFL suite of programs, which continues into 2019–20.
In 2020–21, planned FTEs are expected to decrease in line with the initial Pension for Life implementation and Budget 2018 initiatives. However, this will be monitored to ensure staffing levels meet the needs of Veterans and their families.
Financial and human resources information for Veterans Affairs Canada’s Program Inventory is available in the GC InfoBase.
Expenditures by vote
For information on Veterans Affairs Canada’s organizational voted and statutory expenditures, consult the Public Accounts of Canada 2018–19.
Government of Canada spending and activities
Information on the alignment of Veterans Affairs Canada’s spending with the Government of Canada’s spending and activities is available in the GC InfoBase.
Financial statements and financial statements highlights
Financial statements
VAC’s financial statements (unaudited) for the year ended 31 March 2019, are available on the departmental website.
Financial statements highlights
Condensed statement of operations (unaudited) for the year ended 31 March 2019 (dollars)
| Financial information | 2018–19 Planned results |
2018–19 Actual |
2017–18 Actual |
Difference (2018–19 actual minus 2018–19 planned) | Difference (2018–19 actual minus 2017–18 actual) |
|---|---|---|---|---|---|
| Total expenses | 4,404,601,616 | 4,775,833,613 | 4,789,380,985 | 371,231,997 | (13,547,372) |
| Total revenues | – | 5,255 | 9,380 | 5,255 | (4,125) |
| Net cost of operations before government funding and transfers | 4,404,601,616 | 4,775,828,358 | 4,789,371,605 | 371,226,742 | (13,543,247) |
Total Departmental expenses were approximately $371.2 million higher than originally planned in the 2018–19 fiscal year as demand and productivity were higher than originally predicted. Parliament therefore authorized additional funding during the fiscal year. This funding was primarily directed toward Veteran program payments, such as Disability Awards and Earnings Loss and Supplementary Retirement Benefits, which increased as a result of significant engagement prior to the implementation of Pension for Life. More operational funding was also required to support the implementation of the Pension for Life suite of programs, which launched on 1 April 2019.
When comparing the overall expenditures for the 2018–19 fiscal year against the previous year, expenses decreased slightly by $13.5 million. This decrease is primarily due to retroactive top-up payments in 2017–18 to all Veterans who received a Disability Award since 1 April 2006, with the Budget 2016 increase of the disability award to $360 thousand. These payments were mostly finalized in 2017–18, leading to higher than usual expenses in that fiscal year. Excluding these top-up payments results in an increase in Disability Award expenditures in 2018–19 when compared to 2017–18. Expenditures in the Disability Pension program and Commemorative Partnership Program also decreased in the 2018–19 fiscal year. These decreases were partially offset by increased expenditures in Earnings Loss Benefits, Retirement Benefits and the Career Impact Allowances, as well as increases from the implementation of new programs, notably the Education and Training Benefit, Caregiver Relief Benefit and the Veteran and Family Well-Being Fund. In addition, operating expenditures within the Department increased overall due to Pension for Life implementation, as well as recording an accrued liability for the Toth Class Action lawsuit. This case challenged the deduction of disability benefits from income support programs under the Canadian Forces Members and Veterans Re-establishment and Compensation Act (currently the Veterans Well-Being Act) and the War Veterans Allowance Act.
Condensed Statement of Financial Position (unaudited) as of 31 March 2019 (dollars)
| Financial information | 2018–19 | 2017–18 | Difference (2018–19 minus 2017–18) |
|---|---|---|---|
| Total net liabilities | 264,690,816 | 160,981,234 | 103,709,582 |
| Total net financial assets | 160,428,417 | 147,680,729 | 12,747,688 |
| Departmental net debt | 104,262,399 | 13,300,505 | 90,961,894 |
| Total non-financial assets | 12,498,490 | 13,402,972 | (904,482) |
| Departmental net financial position | 91,763,909 | (102,467) | 91,866,376 |
Total net liabilities have increased by $103.7 million in 2018–19 compared to 2017–18. This variance is due to a decrease in the liability associated with the transfer of Ste. Anne’s Hospital and an increase in accounts payable and accrued liabilities, primarily related to the recording of an accrued liability relating to the Toth Class Action lawsuit, as explained above.
In 2018–19, total net financial assets increased by $12.7 million when compared to 2017–18 due to an increase in accounts payables with other government departments.
Departmental net debt, which is the difference between net liabilities and net financial assets as explained previously, has increased by $91.0 million in 2018–19 compared to 2017–18.
A decrease of $904 thousand was observed in the total non-financial assets during 2018–19 when compared to 2017–18 due to the amortization of tangible capital assets.