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2008-09
Departmental Performance Report

Veterans Affairs

Supplementary Information (Tables)

Table 1: Sources of Non-Respendable Revenue

**Sources of Non-Respendable Revenue($ millions)**
($ millions)	Actual 2006-2007	Actual 2007-2008	2008-2009
($ millions)	Actual 2006-2007	Actual 2007-2008	Main Estimates	Planned Revenue	Total Authorities	Actual
Health Care and Re-establishment Benefits and Services
Ste. Anne's Hospital: In-Patient Charges to the Quebec Provincial Plan (Other Goods and Services)	14.2	13.2	13.7	13.7	13.7	14.3
Ste. Anne's Hospital: Dietary Meals (Other Goods and Services)	0.4	0.4	0.4	0.4	0.4	0.4
Ste. Anne's Hospital: Domiciliary Care (Regulatory Care)	3.6	3.5	3.6	3.6	3.6	3.7
Pensions, Awards, Allowances for Disability and Death; and Financial Support
Recovery of pensions from foreign governments	2.7	2.2	3.2	3.2	3.2	2.2
Refund of previous years' expenditures	7.7	9.3	9.3	9.3	9.3	12.6
Other	1.2	1.4	0.5	0.5	0.5	1.5
Total Non-Respendable Revenue	29.8	30.0	30.7	30.7	30.7	34.7

Table 3: Details on Project Spending

**Details on Project Spending ($ millions)**
($ millions)	Current Estimated Total Cost	Actual 2006-2007	Actual 2007-2008	2008-2009
($ millions)	Current Estimated Total Cost	Actual 2006-2007	Actual 2007-2008	Main Estimates	Planned Spending	Total Authorities	Actual
Ste. Anne's Hospital Renovation	114.3	11.9	26.4	22.8	22.8	22.8	22.8
Total	114.3	11.9	26.4	22.8	22.8	22.8	22.8

Table 5: Details on Transfer Payments Programs (TPPs)

($ millions)	Actual Spending 2006-2007	Actual Spending 2007-2008	Planned Spending 2008-2009	Total Authorities 2008-2009	Actual Spending 2008-2009	Variance Between Planned Spending and Actual Spending 2008-2009
Name of Transfer Payment Program: Pensions, and Allowances for Disability and Death
Start Date: September 1, 1919				End Date: Ongoing
Description: Provide pensions for disability or death and economic support in the form of allowances to: members of the Canadian Forces and Merchant Navy Veterans who served in the First World War, the Second World War or the Korean War; certain civilians who are entitled to benefits because of their wartime service; former and serving members of the Canadian Forces (including those who served in Special Duty Areas); survivors and dependants of military and civilian personnel.
Strategic Outcome: Eligible Veterans and other clients achieve their optimum level of well-being through programs and services that support their care, treatment, independence, and re-establishment.
Summary of Results Achieved: Successfully met
Pensions, Awards, Allowances for Disability and Death; and Financial Support
Total Grants	1,740.8	1,737.8	1,755.9	1,755.9	1,734.7	21.2
Total Program Activity	1,740.8	1,737.8	1,755.9	1,755.9	1,734.7	21.2
Comment on Variance(s):	The variance is primarily due to a lower average cost per Canadian Forces pensioner than originally forecast for 2008-09
Audit completed or planned:

($ millions)	Actual Spending 2006-2007	Actual Spending 2007-2008	Planned Spending 2008-2009	Total Authorities 2008-2009	Actual Spending 2008-2009	Variance Between Planned Spending and Actual Spending 2008-2009
Name of Transfer Payment Program: Earnings Loss and Supplemental Retirement Benefit
Start Date: April 1, 2006				End Date: Ongoing
Description: The Earnings Loss benefit provides temporary income replacement benefits while the Canadian Forces Veteran participates in rehabilitation in preparation for employment in civilian life. Ongoing long-term income replacement benefits are provided to age 65 when the Veteran is unable to engage in any suitable employment due to total and permanent incapacity. At age 65, recipients of long-term income replacement benefits receive a lump-sum retirement benefit to compensate for lost opportunity to contribute to a retirement pension due to a career-ending or service-related disability.
Strategic Outcome: Eligible Veterans and other clients achieve their optimum level of well-being through programs and services that support their care, treatment, independence, and re-establishment.
Summary of Results Achieved: Successfully met
Pensions, Awards, Allowances for Disability and Death; and Financial Support
Total Grants	3.5	11.7	33.8	20.8	19.1	14.7
Total Program Activity	3.5	11.7	33.8	20.8	19.1	14.7
Comment on Variance(s):	The variance is due to actual client numbers in receipt of Earnings Loss Benefits being less than forecast for 2008-09
Audit completed or planned:

($ millions)	Actual Spending 2006-2007	Actual Spending 2007-2008	Planned Spending 2008-2009	Total Authorities 2008-2009	Actual Spending 2008-2009	Variance Between Planned Spending and Actual Spending 2008-2009
Name of Transfer Payment Program: Disability Awards and Allowances
Start Date: April 1, 2006				End Date: Ongoing
Description: Provide disability awards for disability or death and economic support in the form of allowances to former and serving members of the Canadian Forces, and in some cases to survivors and dependants, for the non-economic effects of a service-related disability, including pain and suffering, functional loss and the effects of permanent impairment on the lives of members, Veterans and their families.
Strategic Outcome: Eligible Veterans and other clients achieve their optimum level of well-being through programs and services that support their care, treatment, independence, and re-establishment.
Summary of Results Achieved: Successfully met
Pensions, Awards, Allowances for Disability and Death; and Financial Support
Total Grants	50.0	157.0	190.4	245.4	238.5	(48.1)
Total Program Activity	50.0	157.0	190.4	245.4	238.5	(48.1)
Comment on Variance(s):	The variance is due to a greater number of existing pension clients coming forward with new conditions than originally forecast for 2008-09, and due to the allocation of additional resources to the disability award adjudication process to reduce both pending applications and approved applications awaiting payment.
Audit completed or planned:

($ millions)	Actual Spending 2006-2007	Actual Spending 2007-2008	Planned Spending 2008-2009	Total Authorities 2008-2009	Actual Spending 2008-2009	Variance Between Planned Spending and Actual Spending 2008-2009
Name of Transfer Payment Program: War Veterans Allowance/Civilian War Allowance
Start Date: September 1, 1930				End Date: Ongoing
Description: The War Veterans Allowance (WVA) is a form of financial assistance available to eligible Veterans, qualified civilians and their survivors, dependants and orphans. In recognition of war service, qualified persons are provided with regular, monthly income to meet basic needs. WVA is based on income, domestic status and number of dependants. Recipients are paid at a single, married or orphan's rate. Payments are indexed annually to the CPI. Eligibility for WVA is determined by the wartime service of a Veteran or qualified civilian, age or health, income or residency.
Strategic Outcome: Eligible Veterans and other clients achieve their optimum level of well-being through programs and services that support their care, treatment, independence, and re-establishment.
Summary of Results Achieved: Successfully met
Pensions, Awards, Allowances for Disability and Death; and Financial Support
Total Grants	18.5	16.4	16.2	16.2	14.6	1.6
Total Program Activity	18.5	16.4	16.2	16.2	14.6	1.6
Comment on Variance(s):	The variance is due to a slightly lower than expected number of clients receiving benefits.
Audit completed or planned:

($ millions)	Actual Spending 2006-2007	Actual Spending 2007-2008	Planned Spending 2008-2009	Total Authorities 2008-2009	Actual Spending 2008-2009	Variance Between Planned Spending and Actual Spending 2008-2009
Name of Transfer Payment Program: Veterans Independence Program
Start Date: 1981				End Date: Ongoing
Description: The Department's Veterans Independence Program is a national home care program that assists eligible clients to remain independent in their own homes or communities by offering a variety of programs and services, such as housekeeping, grounds maintenance, and personal care.
Strategic Outcome: Eligible Veterans and other clients achieve their optimum level of well-being through programs and services that support their care, treatment, independence, and re-establishment.
Summary of Results Achieved: Successfully met
Health Care and Re-establishment Benefits and Services
Total Contributions	286.7	303.2	325.4	332.3	320.0	5.4
Total Program Activity	286.7	303.2	325.4	332.3	320.0	5.4
Comment on Variance(s):	The variance is due to lower than expected nursing home care expenditures, primarily due to changes in provincial coverage in New Brunswick.
Audit completed or planned:

($ millions)	Actual Spending 2006-2007	Actual Spending 2007-2008	Planned Spending 2008-2009	Total Authorities 2008-2009	Actual Spending 2008-2009	Variance Between Planned Spending and Actual Spending 2008-2009
Name of Transfer Payment Program: Last Post Fund
Start Date: N/A				End Date: Ongoing
Description: The Last Post Fund is a non-profit corporation which administers funeral, burial, and grave marking services for Veterans Affairs Canada. Canada Remembers provides eligible Veterans and civilians with a dignified funeral and burial through the Last Post Fund.
Strategic Outcome: Canadians remember and demonstrate their recognition of all those who served in Canada's efforts during war, military conflict and peace.
Summary of Results Achieved: Successfully met
Remembrance Programming
Total Grants	11.0	9.6	14.8	14.8	10.0	4.8
Total Program Activity	11.0	9.6	14.8	14.8	10.0	4.8
Comment on Variance(s):	The variance is due to a lower number of payments for funeral and burial costs than provided for in reference levels.
Audit completed or planned:

($ millions)	Actual Spending 2006-2007	Actual Spending 2007-2008	Planned Spending 2008-2009	Total Authorities 2008-2009	Actual Spending 2008-2009	Variance Between Planned Spending and Actual Spending 2008-2009
Name of Transfer Payment Program: Commonwealth War Graves Commission
Start Date: N/A				End Date: Ongoing
Description: The Commonwealth War Graves Commission was established by Royal Charter in 1917. It's duties are to mark and maintain the graves of the members of the forces of the Commonwealth who were killed in the two World Wars, to build memorials to those who have no known grave and to keep records and registers of Canadian war dead. Canada Remembers maintains Canadian war graves and cemeteries through a partnership with the Commonwealth War Graves Commission.
Strategic Outcome: Canadians remember and demonstrate their recognition of all those who served in Canada's efforts during war, military conflict and peace.
Summary of Results Achieved: Successfully met
Remembrance Programming
Total Grants	8.8	9.2	8.6	8.9	8.6	-
Total Program Activity	8.8	9.2	8.6	8.9	8.6	-
Comment on Variance(s):
Audit completed or planned:

Table 8: Sustainable Development Strategy

Veterans Affairs Canada remains committed to Sustainable Development. We have exceeded many of our targets as laid out in the 2007-2009 Sustainable Development Strategy. With the introduction of a Federal Sustainable Development Strategy (FSDS), we look forward to working together with other Departments to meet federal targets, as will be outlined in the FSDS. We will be ensuring that the necessary data sources are established to report on the targets.

In this reporting cycle we have adjusted some of our targets to ensure that we are consistently reporting each year from a baseline year rather than reporting based on each previous year, thus building on our commitments to greening government operations.

Although the Federal Sustainable Development Act has repealed the original Auditor General's act which established the requirement for Sustainable Development reporting, we will continue to report on those commitments listed in the strategy during the gap period between the new act and the tabling of the FSDS.

**Sustainable Development Strategy**
	SDS Departmental Commitment	Federal SD Goal(s) including Greening Government Operation (GGO) Goals (if applicable)	Supporting Performance Measure	2008-2009
	SDS Departmental Commitment		Supporting Performance Measure	Target	Actual Value
1	100% of material managers and procurement personnel take green procurement training by 2010. (GGO Government-wide target)	Governance for Sustainable Development	Report annually on the percentage of materiel managers and procurement community trained. (GGO Government-wide performance measure)	30% of materiel managers and procurement community trained	25% of materiel managers and procurement community trained
2	Quantity of green products purchased is increased by 15%	Governance for Sustainable Development	Report annually on the dollar value spent on green procurement (GGO Government-wide performance measure)	10% increase in green products purchased	$5.2 M was spent. This includes obtaining products from mandatory standing offers
3	Conduct an analysis of paper usage and implement strategies to reduce paper usage		Decrease in quantity of paper purchased	10% decrease	28% decrease
4	Conduct an analysis of printer/photocopier inventory and implement strategies to pool resources and explore use of multi-functional equipment		Report annually on reduced number of non-duplex printers and photocopiers	10% decrease	Not available
5	Reduce by 15% from 2002-2003 levels, GHG emissions per vehicle kilometre from Veterans Affairs' fleet by 2010 (GGO government-wide target)	Reduce greenhouse gas emissions	Annual average GHG emissions per vehicle kilometre (GGO Government-wide performance measure)	10% decrease	10.6% decrease from 2002-2003
6	All gasoline purchased for federal road vehicle will be ethanol-blended, where available. (GGO government-wide target)	Reduce greenhouse gas emissions	Percentage of litres of gasoline purchased for federal road vehicles that is ethanol-blended (GGO Government-wide performance measure)	5% increase	7.9% increase
7	Conduct an analysis of vehicle (fleet, personal, rental) usage by staff and implement strategies to reduce GHG emissions		Analysis of vehicle usage has been conducted and next steps have been identified	N/A	Next steps have been identified.
8	In support of the overall Federal House In Order target of 31%, reduce GHG emissions by 2010 at Ste. Anne's Hospital (GGO government-wide target)	Reduce greenhouse gas emissions	Report annually the percent reduction in GHG emissions at Ste. Anne's Hospital (GGO Government-wide performance measure)	25% reduction	45.4% reduction since 1991
9	Raise awareness on sustainable development issues and solutions through communication to all staff.		Number of communications delivered to staff	24 messages (2 per month)	19 messages
10	A high percentage of all Client Service Teams (CST) to have undergone certification through Veterans Affairs Canada's National Certification Program by 2010		Report annually on percentage of Client Service Teams that have undergone certification	33%	75% of Client Service teams have undergone a certification review
11	Based on applied research evidence, implement continuing care strategies to improve supportive services for Veterans, seniors, and their families		Report annually on decisions made as a result of continuing care studies	N/A	Complete. Dissemination of finds to federal and provincial stakeholders completed
12	Comply with applicable Federal environmental regulatory obligations at Ste. Anne's Hospital		Increase compliance with environmental regulatory clauses	100%	100%
13	Increase amount of waste recycled by 15% at Ste. Anne's Hospital by 2009		Increase amount of material recycled at Ste. Anne's Hospital by 2009	10% increase	31% increase
14	Reduce water consumption per square foot by 5% at Ste. Anne's Hospital by 2009	Clean Water	Decrease in litres of water consumed.	3% decrease	1.3% increase

Table 9: Green Procurement

Meeting Policy Requirements

1. Has the Department incorporated environmental performance considerations in its procurement decision-making process?

Yes.

2. Summary of initiatives to incorporate environmental performance considerations in procurement decision-making processes:

VAC procurement personnel are required to complete Green Procurement Training. All personnel issued acquisition cards have been advised of the Departmental Green Procurement Policy, and the availability of the Green Procurement Training (Course) available through Campus Direct.

VAC Procurement personnel and Materiel Services Agent considers environmental performance in all acquisitions by taking into consideration the full life cycle management of the products (goods) we are acquiring. We consider how we can recycle and/or reuse the products and ensure that the products we acquire can be disposed of in an environmentally friendly manner giving priority to disposal through transfer to other government departments, other levels of government, and to non-profit organizations and charity organizations thus reducing the amount of waste.

3. Results achieved:

Procurement Personnel are more aware and conscientious of the impact of the environment on all procurement as well as the impact of full life cycle management including storage and disposal of materiels.

By disposing of equipment through environmentally responsible methods we have reduced the amount of waste being put in landfills. For example, we donated 530 surplus computers, 20 printers and 30 laptops to the Computer For Schools Program in fiscal year 2008-09. Surplus computers which were not suitable for the Computers for School Program were donated to Non-profit organizations (15 complete units, 6 laptops and 2 computers).

4. Contributions to facilitate government-wide implementation of green procurement:

Adhering to the Computers For School Program for disposal of surplus computers and peripherals;
Sharing use of Departmental Vehicles with other government departments;
Donations of surplus equipment such as computers, laptops, printers and projectors, and cell phones to support National Games (i.e. Canada Games, Special Olympics); and
Purchasing items identified as Green Products first and foremost.

Green Procurement Targets

5. Has the Department established green procurement targets?

Yes.

6. Are these green procurement targets the same as those identified in your Sustainable Development Strategy ?

Yes.

7. Summary of Green Procurement targets:

Increasing quantity of green products purchased by 15%

Through the use of the mandatory standing offers put in place by PWGSC VAC increased its acquisition of green products. Through 1,534 acquisitions using mandatory standing offers wherein environmental considerations have been applied we purchased $5.2 M in products on a national basis.

8. Results Achieved:

Met and exceeded the target as indicated above.

Table 10: Response to Parliamentary Committees

House of Commons

Standing Committee on Veterans Affairs

On May 28, 2008, the House of Commons Standing Committee on Veterans Affairs tabled a report, Resetting the Bar for Veterans Health Care: Veterans Independence Program and Veterans Health Care Review. The report pointed out that redesigning VAC's health care programs and services for older clients would help pave the way for better health care for young Veterans of peacekeeping and Canadian Forces operations, especially those dealing with psychological injuries. Although the Committee requested an official government response, Parliament was dissolved before the response could be tabled.

Standing Committee on National Defence

On May 15, 2008, the House of Commons Standing Committee on National Defence adopted a motion recommending that the Auditor General of Canada immediately conduct a thorough review of all Canadian Forces Bases to evaluate the available services, treatments and care for mental health injuries provided by the Department of National Defence. This recommendation was made at an early stage of the Committee's study of Health services provided to Canadian Forces personnel with an emphasis on post-traumatic stress disorder. No official Government Response was requested and the Auditor General did not pursue the study.

Senate

Sub-Committee on Veterans Affairs (to the Standing Committee on National Security and Defence)

On June 18, 2008, the Senate sub-Committee on Veterans Affairs released an interim report on Reductions of Service Income Security Insurance Plan Long Term Disability (SISIP LTD) benefits. Their recommendation called for the government to immediately cease the practice of reducing SISIP LTD benefits awarded to Veterans, by the amount received in a Pension Act disability pension.

Senate Special Committee on Aging

In March 2008, the Senate Special Committee on Aging released their Second Interim Report: Issues and Options for an Aging Population. Of the 84 Options proposed, several intersected with VAC's program areas. Most notably, Option 70, to "create a needs-based 'Seniors Independence Program' for all Canadian seniors, modelled after the Veterans Independence Program".

Bills

Bill C-287 An Act to recognize National Peacekeeper's Day received Royal Assent on June 16, 2008.

On March 12, 2009, Bill C-17 An Act to recognize Beechwood Cemetery as Canada's National Cemetery was referred to the Senate Standing Committee on Social Affairs, Science and Technology.

Table 11a: Internal Audits (reporting period 2008-09)

Veterans Affairs Canada develops its annual Audit and Evaluation Plan using a risk-based approach. This Plan was approved by the Audit and Evaluation Committee, chaired by the Deputy Minister. The intent of the Audit and Evaluation Plan is to ensure that the projects are clearly aligned with Veterans Affairs Canada's Five-year Strategic Plan, Program Activity Architecture, and Management Accountability Framework. The Department undertakes audit and evaluation projects that are deemed the highest risk. To focus attention on those areas, where use of the available resources would best achieve the objectives of Audit and Evaluation, the following criteria are considered during project selection: materiality, likelihood, complexity and sensitivity/reputation. During the ranking of the proposed engagements, consultations are held with senior managers, program managers, and Audit and Evaluation staff. Findings and recommendations of previous audits, evaluations and reviews, as well as the extent of follow-ups and corrective actions taken by management are also used to assess potential projects. Audit and Evaluation schedules are compared with those of the Office of the Auditor General, the Commissioner for the Environment and Sustainable Development and the Office of the Comptroller General in order to prevent overlapping visits and undue interference with operations. Consultation with partners is conducted on an ongoing basis.

The long range plan attempts to provide some balance, so that some functions, activities and organizational entities are covered annually through cyclical projects (e.g., Organizational Governance and Residential Care). Follow-ups to findings also contribute to current and future year planning. The Plan has some flexibility to allow for requests from management for special studies demanded by unforeseeable circumstances, from Central Agencies for the Transfer Policy requirements, and for follow-up reviews on the actions taken on recommendations.

It is important to note that the Audit and Evaluation Plan is effective only to 2009-2010 and is re-evaluated on an annual basis.

Name of Internal Audit	Audit Type	Status	Completion Date	Electronic Link to Report
Post-payment Verification Audit	Internal Audit	Completed	August 2008	www.vac-acc.gc.ca/general/sub.cfm?source=department/reports/deptaudrep/post-payment-audit
Financial Management and Controls, Phase II	Internal Audit	Completed	September 2008	www.vac-acc.gc.ca/general/sub.cfm?source=department/reports/deptaudrep/fin_manag_aud_sep08
Follow-up to the 2006 Audit of Outsourcing of Health Claims Administration	Targeted Follow-up Audit	Completed	December 2008	www.vac-acc.gc.ca/general/sub.cfm?source=department/reports/deptaudrep/follow-ohcd-dec08
Task Force Follow-up Report	Follow-up of Previous Audits	Completed	January 2009	www.vac-acc.gc.ca/general/sub.cfm?source=department/reports/deptaudrep/foup2009
Federal Health Claims Processing System Program of Choice Analysis Audit	Internal Audit	Completed	June 2009	www.vac-acc.gc.ca/general/sub.cfm?source=department/reports/deptaudrep/2009/june-pcaa
Control of Large Program Expenditures Items	Internal Audit	Completed	May 2009	www.vac-acc.gc.ca/general/sub.cfm?source=department/reports/deptaudrep/2009-june-lpe
Ste. Anne's Hospital – Capital Renovation Project Audit	Internal Audit	In Progress	planned June 2009
Residential Care – Phase II Atlantic Region	Internal Audit	In Progress	planned July 2009
Core Management Controls	Assessment and support to holistic opinion	In Progress	planned November 2009
Adequacy of Corporate Risk Management	Internal Audit	In Progress	planned February 2010
Audited Financial Statements Readiness	Assistance to Audited Financial Statement Readiness	In Progress	planned April 2010
Management of Medications at Ste. Anne's Hospital	Internal Audit	Deferred to 2010-11 by 2009 Risk-based Internal Audit Plan	N/A
Organizational Governance Phase III Audit/Evaluation	Combined audit and evaluation project	Cancelled by 2008 Risk-based Internal Audit Plan	N/A
Other Health Purchased Services (OHPS) – Ste. Anne's Hospital and Other OHPS Charges	Internal Audit	Cancelled by 2008 Risk-based Internal Audit Plan	N/A
Equipment Recycling Program	Internal Audit	Cancelled by 2009 Risk-based Internal Audit Plan	N/A
Residential Care Phase III Audit	Internal Audit	Cancelled by 2009 Risk-based Internal Audit Plan	N/A
Business Continuity Planning Audit	Internal Audit	Cancelled by 2009 Risk-based Internal Audit Plan	N/A
Conflict of Interest Audit	Internal Audit	Cancelled by 2009 Risk-based Internal Audit Plan	N/A

Electronic Link to Report: Audit and Evaluation Reports are posted on the Veterans Affairs Canada Web site upon completion.

Note: The above list is based on a risk-ranking priority exercise and was approved by the Audit and Evaluation Committee on April 2, 2007. The Audit and Evaluation Plan is revisited annually and the order of priority and/or necessity of the work is subject to change due to changing Departmental or governmental priorities.

Significant findings from Audits

Post Payment Verification Assurance Audit

The purpose of the Post Payment Verification Assurance Audit was: to provide assurance that VAC's management frameworks and practices regarding post payment verification procedures were compliant with Treasury Board Account Verification Policy, Financial Administration Act, and the Payments and Settlements Requisitioning Regulations, 1997.

This report outlined observations and findings from the review of VAC's Quality Assurance Framework of the Account Verification Process. Contained within this report are ten important recommendations relating to the Department's need to clarify its definition of critical errors, improve the accuracy and consistency of its post payment verification reviews, implement a follow-up process for identified errors, provide additional training for staff and develop a quality assurance process.

Financial Management and Controls Audit, Phase II

This internal audit was conducted to assess whether VAC's financial control framework was adequate, and ensure that: allocated funds are spent for their intended purposes and within approved limits; financial information is accurate, and; appropriate controls are maintained over expenditures. Significant recommendations made by this audit are:

Ensure finance and administration staff receive training and development similar to the discontinued financial modules of the middle management and supervisors orientation training program.
Circulate updated financial policies and bulletins and provide staff explanatory briefings as necessary.
Complete and promulgate a comprehensive financial management control framework.
Enhance controls associated with the release of program, procedural and policy information.
Identify, promote and monitor the training required by all financial officers and administrative staff.
Ensure adequate training is provided to all delegated staff on authorities under FAA specifically Sections 32, 33 and 34.

Federal Health Claims Processing System Program of Choice Analysis Audit

The focus of the audit was on VAC's overall administration of the Treatment Benefits Program which provides treatment benefits and services to eligible veterans. The audit identified a number of opportunities to improve the administration of the program, including: fully implementing the recently adopted management framework for the Treatment Benefits Program; completing the Benefit Grid Review and initiating reviews of the Dental Services and Prescription Drug Programs; making greater use of the Benefit Review and Formulary Review Committees; and conducting quality reviews of the program to ensure compliance with legislative and policy requirements.

The audit observed that specific systems edits must be established for benefits on a province/territory basis, and that VAC has not dedicated sufficient resources to this activity. For some of the Programs of Choice, the edits had not been updated for a number of years. Dollar limit edits had not been established for all benefits covered by the program.

Policies require significant updating and consolidation, and improvements are required to management processes used to monitor program delivery's compliance with policy. The audit contains recommendations to update and consolidate policies and procedures for the program. Improvements are also required to the provision of information and regular reporting to operational, functional and senior managers.

Control of large program expenditures Items Audit

The objectives of the audit were to: review large program expenditure transactions and assess the internal control framework applicable to those transactions; assess the accuracy of accounting (classification of transactions) for those transactions; evaluate the appropriateness of the delegated authorities of positions which approved these payments; analyse and validate the post or pre-payment verification process for selected large transactions; and analyse accounts used to process capital expenditures and capital contributions. This audit made essential recommendations in the following areas:

Introducing stronger and more consistent controls for handling changes to clients' direct deposit profile.
Strengthening the policies and business processes applicable to the verification of client income, for the Earnings Loss program.
Implementing measures to ensure that, as demand for contract beds diminishes, Veterans Affairs Canada does not incur costs for long-term care beds that are not needed.
Clarifying the roles and responsibilities associated with the conduct of operating cost reviews, improve the policies and procedures for conducting these operating cost reviews, and improve their timeliness.

Table 11b: Evaluations (reporting period 2008-09)