2021-2022 - 1st Quarter - Quarterly Financial Report

ISSN: 2818-1115

For the quarter ended June 30, 2021

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I. Statement outlining results, risks and significant changes in operations, personnel and program for the quarter ended June 30, 2021

1. 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 24 full-time Members (one 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 favour 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 2021-22 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.

2. Highlights of Fiscal Quarter and Fiscal Year-to-Date (YTD) Results

Statement of Authorities

As of June 30, 2021, the Board’s total authorities available for use (i.e. budget) at quarter end were $2.68 million more when compared to amounts available at the same quarter-end the previous year, from $8.54M in 2020-21 to $11.22M in 2021-22. Much of the increase can be attributed to the fact that full supply of Main Estimates in 2020-21 was not received until December due to the COVID-19 pandemic and limited session in the spring for Parliament to study supply. Actual YTD expenditures at the end of the first quarter showed an increase of almost $500K ( 23% increase), when compared to the same timeframe in 2020-21. While there was a decrease in spending on travel due to COVID-19 restrictions, this was more than offset by an increase in salary spending for the 10 additional board members appointed during the third quarter in 2020-21 fiscal.

Figure 1 - First Quarter Expenditures Compared to Annual Authorities

Text version

Comparison of Net Budgetary Authorities and Expenditures as of June 30, 2020 and June 30, 2021.

This image consists of a bar chart with the x axis broken down into two million dollar increments, the y axis indicating two fiscal years, 2020-21 and 2021-22, a green rectangular bar representing net budgetary authority and blue rectangular bar representing expenditures for the quarter ending June 30. The chart shows that VRAB's budget was 8.54 million in 2020-21 and is 11.22 million in 2021-22 and that the expenditures for the quarter ending June 30 were 2.16 million in 2020-21 and 2.65 million in 2021-22.

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 24% of authorities available for use) are consistent with this trend.

3. 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.

4. Significant changes in relation to operations, personnel and programs

With the anticipated return to in person hearings in the fall of 2021, there will be an increase in Member travel across the country, as appropriate. There may be additional expenses related to facility rentals for in person hearings as, due to COVID-19, we may not be using our regular hearing locations until federal government spaces are reoccupied, which is in line with Public Health Guidance.

Approved by:

II. Financial Statements

Veterans Review and Appeal Board
STATEMENT OF AUTHORITIES (unaudited)
Quarterly Financial Report for the Quarter Ended June 30, 2020
Fiscal year 2020-21

(in thousands of dollars)	Planned expenditures for the year ending March 31, 2021*	Expended during the quarter ended June 30, 2020	Year to date used at quarter-end
Vote 1 - Veterans Review and Appeal Board Operating expenditures	7,246	1,839	1,839
Statutory authorities - Contributions to Employee Benefit Plans - Program	1,297	324	324
Total Budgetary authorities	8,543	2,163	2,163
Non-budgetary authorities	-	0	0
Total Authorities	8,543	2,163	2,163

*Includes only Authorities available for use and granted by Parliament at quarter-end.

 

 

Quarterly Financial Report for the Quarter Ended June 30, 2021
Fiscal year 2021-22

 

 

(in thousands of dollars)	Planned expenditures for the year ending March 31, 2022*	Expended during the quarter ended June 30, 2021	Year to date used at quarter-end
Vote 1 - Veterans Review and Appeal Board Operating expenditures	9,885	2,319	2,319
Statutory authorities - Contributions to Employee Benefit Plans - Program	1,330	332	332
Total Budgetary authorities	11,215	2,651	2,651
Non-budgetary authorities	0	0	0
Total Authorities	11,215	2,651	2,651

*Includes only Authorities available for use and granted by Parliament at quarter-end.

Veterans Review and Appeal Board

Departmental budgetary expenditures by Standard Object (unaudited)
Quarterly Financial Report for the Quarter Ended June 30, 2020
Fiscal year 2020-21

Expenditures (in thousands of dollars)	Total available for use for the year ending March 31, 2021*	Used during the quarter ended June 30, 2020	Year to date used at quarter-end
01 Personnel	7,871	2,107	2,107
02 Transportation and communications	330	7	7
03 Information	4	0	0
04 Professional and special services	201	8	8
05 Rentals	13	4	4
06 Repair and maintenance	19	0	0
07 Utilities, materials and supplies	36	14	14
08 Acquisition of land, buildings and works	0	0	0
09 Acquisition of machinery and equipment	69	17	17
10 Transfer payments	0	0	0
11 Public debt charges	0	6	6
12 Other subsidies and payments	0	0	0
Total gross budgetary expenditures	8,543	2,163	2,163
Less Revenues netted against expenditures
Total Revenues netted against expenditures:	0	0	0
Total net budgetary expenditures	8,543	2,163	2,163

*Includes only Authorities available for use and granted by Parliament at quarter-end.

 

Quarterly Financial Report for the quarter ended June 30, 2021
Fiscal Year 2021-22

 

Expenditures (in thousands of dollars)	Total available for use for the year ended March 31, 2022*	Used during the quarter ended June 30, 2021	Year to date used at quarter-end
01 Personnel	10,320	2,602	2,602
02 Transportation and communications	237	2	2
03 Information	12	-	0
04 Professional and special services	200	25	25
05 Rentals	28	2	2
06 Repair and maintenance	13	-	0
07 Utilities, materials and supplies	92	5	5
08 Acquisition of land, buildings and works	0	-	0
09 Acquisition of machinery and equipment	313	-	0
10 Transfer payments	0	-	0
11 Public debt charges	0	15	15
12 Other subsidies and payments	0	0	0
Total gross budgetary expenditures	11,215	2,651	2,651
Less Revenues netted against expenditures
Total Revenues netted against expenditures:	0	0	0
Total net budgetary expenditures	11,215	2,651	2,651

*Includes only Authorities available for use and granted by Parliament at quarter-end.