Question Period Note: PUBLIC ACCOUNTS

PUBLIC ACCOUNTS

• Our priority is to help Veterans. In fact, over 90% of the department’s budget goes to funding Veterans’ programs and benefits.

• Last year alone, we spent $4.4 billion directly on benefits and services for Veterans, their families and other eligible recipients.

• Our budget is based on estimates and the process guarantees that whenever a Veteran comes forward—this year, next year, or beyond—they will receive benefits.

BACKGROUND – PUBLIC ACCOUNTS
The majority of Veterans Affairs Canada’s programs and 90% of the expenditures in fiscal year 2020-21 are quasi statutory based on the fact that these programs (e.g. Pain and Suffering Compensation, Income Replacement Benefit, Veterans Independence Program) are demand driven and non-discretionary.
For these quasi-statutory programs, Veterans Affairs Canada annually estimates how many Veterans will come forward and receive program benefits, and how much funding will be required to meet that forecasted demand.
If, during the year, more Veterans require benefits and services than forecasted under a specific Veteran program, Veterans Affairs Canada has the ability to increase budgets accordingly redacted.
At the beginning of the next fiscal year, the process repeats itself with a new budget established through the Main Estimates based on the updated forecast for demand.

Volume I –Summary Report and Consolidated Financial Statements
• Expenditures for 2020-21 totaled $4.8B.
o Payments to Veterans, and their families was $4.4B.
o Operating costs in support of Veteran’s programs was $375M.
• Overall, the Budget Allocation in 2020-21 was $214M higher than the Budget allocation in 2019-20, related to an increase in Pension for Life programs

Volume II – Details of Expenses and Revenues
• Lapsed funding for 2020-21 was $635M
o $352M - Pension for Life Programs where production did not meet projections,
o $111M – Disability Pension and Awards Programs, which included $40M in Frozen Funds related to estates who never came forward as part of the one time retroactive corrective payment.
o $141M – normal amounts of unspent funds in 20 Quasi Stat programs
o $7M – Operating Budget Carry Forward (within the max limit of $16M)
o $24M related to Frozen Funds for Service Excellence.

Volume III –Additional Information and Analyses
• VAC reported 4,152 claims against the Crown with a value of $14M
o 1,415 of these cases and $9M related to TOTH.
o 2,724 of these cases and $5M related to compensation agreement with employees impacted by Phoenix pay system.
• Minister’s Office operating expenditures totaled $1.4M
o This aligns with spending in previous year and is only $39K more than 2019-20.

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