Actual expenditures
We build our annual budget in order to respond to eligible Veterans in need of benefits and services. A key part of this process is forecasting, which helps ensure there is enough funding for all eligible Veterans who are likely to need help in a given year. Naturally, our budget fluctuates each year due to the demand-driven nature of its programs, which are based on Veterans’ needs and entitlements. In other words, a Veteran who is entitled to a benefit is paid that benefit, whether 10 or 10,000 come forward.
While forecasting helps ensure enough funding is available, expenditures are only incurred for Veterans who in fact come forward to use the program or service. The Government’s budget process is designed to account for these fluctuations, which is why there will be changes to both forecasted and actual spending from one year to the next. Fluctuations in spending are normal, given that initial forecasting is typically done many months in advance of the reporting period and adjusted throughout the year based on actual results.
| 2017–18 | 2018–19 | 2019–20 | 2020–21 | 2021–22 | 2022–23 | |
|---|---|---|---|---|---|---|
| Statutory | 33 | 33 | 37 | 34 | 34 | 34 |
| Voted | 4,741 | 4,657 | 4,796 | 5,203 | 5,178 | 5,237 |
| Total | 4,774 | 4,690 | 4,832 | 5,238 | 5,213 | 5,271 |
Budgetary performance summary for Core Responsibilities and Internal Services (dollars)
| Core Responsibilities and Internal Services | 2019–20 Main Estimates | 2019–20 Planned spending | 2020–21 Planned spending | 2021–22 Planned spending | 2019–20 Total authorities available for use | 2017–18 Actual spending (authorities used) | 2018–19 Actual spending (authorities used) | 2019–20 Actual spending (authorities used) |
|---|---|---|---|---|---|---|---|---|
| Benefits, Services and Support | 4,205,757,171 | 4,205,757,171 | 5,106,760,246 | 5,085,853,568 | 5,045,620,982 | 4,627,278,058 | 4,528,562,537 | 4,625,183,299 |
| Commemoration | 44,916,250 | 44,916,250 | 42,966,357 | 43,057,917 | 84,184,571 | 56,866,415 | 45,032,805 | 81,485,684 |
| Veterans Ombudsman | 5,502,468 | 5,502,468 | 5,483,671 | 5,483,660 | 5,370,414 | 4,960,234 | 3,735,430 | 4,115,575 |
| Budget Implementation vote (unallocated authorities) |
— | — | — | — | 31,836,037 | — | — | — |
| Subtotal | 4,256,175,889 | 4,256,175,889 | 5,155,210,274 | 5,134,395,145 | 5,167,012,004 | 4,689,104,707 | 4,577,330,772 | 4,710,784,557 |
| Internal Services | 87,875,420 | 87,875,420 | 82,491,980 | 78,223,017 | 121,753,731 | 84,786,373 | 113,132,181 | 121,589,799 |
| Total | 4,344,051,309 | 4,344,051,309 | 5,237,702,254 | 5,212,618,162 | 5,288,765,735 | 4,773,891,080 | 4,690,462,953 | 4,832,374,356 |
Variance between 2019–20 Actual Spending and 2019–20 Planned Spending
As shown in the financial tables, we spent $4.8 billion in 2019–20, of which over 90% were payments to Veterans, their families, and other program recipients. Our actual spending for fiscal year 2019–20 was $488 million higher compared to planned spending, due mainly to the following items:
Benefits Services and Support
- Increased demand for certain programs and services, specifically those relating to the PFL suite of programs;
- Increase in Pain and Suffering Compensation due to an increase in Veterans choosing lump sum payments over monthly payments;
- Payments made during the year relating to the correction of indexation of Disability Pensions; and
- Payments made to fulfill our legal obligation as set in the Toth Class Action Final Settlement.
Budget Implementation Vote
- Implementation of Budget 2019 initiatives, including recognition of Métis Veterans, supporting Veterans as they transition to post-service life, commemorating Canada's Veterans and supporting research on Military and Veterans Health.
Internal Services
- The continued efforts to reduce wait times and improve the delivery of services and programs to Veterans and their families, particularly through the implementation of the new PFL initiatives.
Funding for the above items was not included in the planned spending figures at the start of fiscal year 2019–20.
Planned spending 2020–21 to 2022–23
Over the next three years, planned spending will fluctuate due to increased demand for certain programs and services, while temporary funding for certain initiatives concludes.
Planned spending for fiscal year 2020–21 is increased when compared to actual spending in 2019–20. This increase is primarily attributable to the increased demand for benefits and services, specifically the PFL suite of programs. In addition, it is forecasted that more Veterans will continue to choose the lump sum payment option for the Pain and Suffering Compensation benefit.
In fiscal year 2021–22, planned spending is forecasted to decrease by approximately $25 million when compared to planned spending of fiscal year 2020–21. The planned spending fluctuations reflect annual adjustments based on updated client participation and program expenditures. We continue to see growth in the PFL suite of programs as well as other programs. In addition, an increasing number of Veterans are choosing lump sum payments over monthly payments for the Pain and Suffering Compensation benefit. These increases are offset however, with the concluding of funding received in 2020–21 to allow us to make Disability Pension Corrective adjustments (Escalation). This has resulted in an overall decrease in 2021–22 planned spending.
In fiscal year 2022–23, planned spending is forecasted to increase by $58 million when compared to planned spending in fiscal year 2021–22. As mentioned above, we anticipate an overall increased demand for many of its programs and services. This increase translates to more and better services for Canada’s Veterans and their families.
Actual human resources
Human resources summary for Core Responsibilities and Internal Services (full-time equivalents)Footnote 17
| Core Responsibilities and Internal Services | 2017–18 Actual | 2018–19 Actual | 2019–20 Planned | 2019–20 Actual | 2020–21 Planned | 2021–22 Planned |
|---|---|---|---|---|---|---|
| Benefits, Services and Support | 1,961.4 | 2,076.4 | 2,310.5 | 2,326.4 | 2,070.3 | 2,068.7 |
| Commemoration | 88.4 | 86.0 | 95.4 | 90.0 | 92.6 | 92.6 |
| Veterans Ombudsman | 34.1 | 34.3 | 38.0 | 32.5 | 38.0 | 38.0 |
| Subtotal | 2,083.9 | 2,196.7 | 2,443.9 | 2,448.9 | 2,200.9 | 2,199.3 |
| Internal Services | 645.8 | 671.0 | 723.1 | 749.1 | 707.4 | 701.6 |
| Total | 2,729.7 | 2,867.7 | 3,167.0 | 3,198.0 | 2,908.3 | 2,900.9 |
As a result of funding received through Budget 2019, we were able to hire additional resources to improve service and support Veterans as they transition to post-service life. This resulted in an increase of 1% over the human resource level planned for fiscal year 2019–20.
Going forward, the government invested $192 million starting in 2020–21 to extend case management and disability adjudicative resources provided in Budget 2018 to keep pace with incoming applications, innovate adjudicative processes and hire new teams dedicated to reducing the backlog. Future budget levels will reflect this investment.
When compared to actual results of fiscal year 2018–19, the number of employees increased by 11.5% as the result of funding received in Budget 2018 in support of Service Excellence and the implementation of the PFL suite of programs. The majority of this increase was within the Benefits, Services and Support core responsibility.
The number of employees in the Commemoration core responsibility remained stable in 2019–20 when compared to plans for 2019–20 and 2018–19 actual results.
Additionally, the number of employees within the Veterans Ombudsman core responsibility was slightly lower than planned for fiscal year 2019–20, due to delays in planned staffing.
We slightly increased the number of employees within the Internal Services core responsibility by approximately 4% to correspond with our overall increases to front-line human resources and to support the implementation of the new PFL suite of programs during 2019–20.
Financial and human resources information for our Program Inventory is available in GC InfoBase.
Expenditures by vote
For information on our organizational voted and statutory expenditures, consult the Public Accounts of Canada 2019–20.
Government of Canada spending and activities
Information on the alignment of our spending with the Government of Canada’s spending and activities is available in GC InfoBase.
Financial statements and financial statements highlights
Financial statements
Our 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 2020 (dollars)
| Financial information | 2019–20 Planned results |
2019–20 Actual |
2018–19 Actual |
Difference (2019–20 actual minus 2019–20 Planned results) | Difference (2019–20 actual minus 2018–19 Actual results) |
|---|---|---|---|---|---|
| Total expenses | 4,366,340,750 | 4,723,863,087 | 4,775,833,613 | 357,522,337 | (51,970,526) |
| Total revenues | – | 20,727 | 5,255 | 20,727 | 15,472 |
| Net cost of operations before government funding and transfers | 4,366,340,750 | 4,723,842,360 | 4,775,828,358 | 357,501,610 | (51,985,998) |
Our total Departmental expenses were approximately $357.5 million higher than planned in 2019–20 as Parliament authorized additional funding during the fiscal year. This funding was for Veteran program payments such as Disability Pensions, as well as additional funding for the Pension for Life suite of programs, which began on April 1, 2019.
When comparing our overall actual expenditures for 2019–20 against those for the previous year, expenses decreased by $52 million. This reduction is the result of an overall decrease in our Grants and Contributions programs. In 2019–20, when comparing expenses from the previous fiscal year, there was a decrease in expenditures in the Disability Awards and Allowances, Earnings Loss Benefit and Retirement Income Security Benefit. These decreases were partially offset by an increase in expenditures in Disability Pensions, Education and Training Benefit and Caregiver Recognition Benefit. There were increases from the implementation of new programs, notably the Income Replacement Benefit and Pain and Suffering Benefit. In addition, operating expenditures within the Department decreased overall.
Condensed Statement of Financial Position (unaudited) as of 31 March 2020 (dollars)
| Financial information | 2019–20 | 2018–19 | Difference (2019–20 minus 2018–19) |
|---|---|---|---|
| Total net liabilities | 178,562,746 | 264,690,816 | (86,128,070) |
| Total net financial assets | 183,109,620 | 160,428,417 | 22,681,203 |
| Departmental net debt | (4,546,875) | 104,262,399 | (108,809,274) |
| Total non-financial assets | 12,728,633 | 12,498,490 | 230,143 |
| Departmental net financial position | 17,275,508 | (91,763,909) | 109,039,417 |
There was a decrease of $86.1 million in total net liabilities when compared to 2018–19. This variance is due to a decrease in the liability associated with the Toth Class Action lawsuit.
In 2019–20, total net financial assets increased by $22.7 million when compared to 2018–19, due to an increase in accounts receivables for overpayments.
Departmental net debt, which is the difference between net liabilities and net financial assets as shown above, decreased by $108.8 million in 2019–20 compared to 2018–19.
Total non-financial assets increased in 2019–20 by $230 thousand when compared to 2018–19 due to the construction of a new center in Esquimalt, BC. This addition was offset by the amortization of tangible capital assets.