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Minister’s Message

We have reached an historic crossroad. For the first time in the Department’s 68-year history, we are caring for and supporting more modern-day Veterans than we are traditional Veterans from the Second World War and Korean War. The health and social needs of these Veterans are growing more complex and diverse than ever before. Many Veterans want to see the Department improve services and provide faster, online access to information at any time of the day or night.

These new realities bring with them substantial challenges and opportunities. These new realities also illustrate why our Government is determined to re-invent the Department to better serve our modern-day Veterans. Employees of Veterans Affairs Canada play a crucial role in the Department’s modernization while remaining strongly committed to delivering the best possible service to Veterans and their families.

We have made great progress over the past year. We improved the New Veterans Charter to provide greater help to seriously ill and injured Veterans. With these enhancements, our Government has committed $189 million between 2011-12 and 2015-16 and $2 billion over the life of the program to ensure that Canadian Force Veterans receive adequate financial support. Additionally, our Government’s commitment has been further illustrated by the fact that Budget 2012 has maintained the budget for Veterans benefits.

As outlined in this Report on Plans and Priorities, we will deliver real and meaningful results. We will improve the quality and timeliness of the care and support provided to Veterans and their families. My priorities include:

• simplifying complex policies and programs;
• modernizing business practices and investing in new technologies to provide better service, faster answers, and a more hassle-free environment for both Veterans and staff; and
• realigning the Department to ensure our employees are in the right places, with the right skills including a stronger understanding of the military culture to serve Veterans better.
• engaging Canadians, especially youth, in commemorating Canadian military accomplishments.

We will be cutting red tape to create a more responsive department that is better positioned to deliver on its mandate. While we have come a long way in a very short period of time, there is still much to do. We will also work to eliminate the unnecessary layers of bureaucracy that have developed over time. We will also strengthen our communication with Veterans by using clear, plain language and will develop more convenient ways for Veterans to communicate with the Department, whether it is a click, a call or a visit. Employees of Veterans Affairs Canada play a crucial role in the Department’s modernization while remaining strongly committed to delivering the best possible service to Veterans and their families.

As a final note, I continue to maintain my commitment to commemorating those who served and died for our country and those who continue to serve today. I have recently been to France where we commemorated the 95^th anniversary of the Battle of Vimy Ridge, a battle which defined Canada as a nation. . I witnessed first hand how the commemoration of this battle still connects with Canada’s youth. I look forward to working diligently on other upcoming commemorative events including the 70^th anniversary of the Dieppe Raid, the 60^th anniversary of the Korean Armistice as well as the preparation for the centennial anniversary of the First World War.

We will also actively communicate with Canadians, especially with our country's youth through social media and use new and innovative strategies to increase their engagement in commemoration.

As we pursue this ambitious agenda, Canadians should know that this Government will stand its ground when it comes to serving our nation’s heroes.

This section provides high-level information on the Veterans Affairs Portfolio.

Raison d’être

Canada’s development as an independent country with a unique identity stems partly from its achievements in times of war. Veterans Affairs Canada (VAC) exists to assist and help those whose courageous efforts gave us this legacy and contributed to our growth as a nation.

VAC’s mandate is set out in the Department of Veterans Affairs Act. It charges the Minister of Veterans Affairs with responsibility for “the care, treatment, or re-establishment in civil life of any person who served in the Canadian Forces or Merchant Navy or in the naval, army, air forces or merchant navies of Her Majesty, of any person who has otherwise engaged in pursuits relating to war, and of any other person designated ... and the care of the dependants or survivors of any person referred to.” Through an Order-in-Council, VAC has responsibility for keeping alive the achievements and sacrifices of those who served Canada in times of war and peace.

Responsibilities

Veterans Affairs Canada

Veterans Affairs Canada achieves its mandate by providing services and benefits that respond to the needs of Veterans, other individuals and their families.

VAC has three main roles:

Provider of disability compensation and financial support - VAC administers programs which recognize and compensate for the pain and suffering of service-related disabilities. The Department also provides financial support and assistance when career-ending or service-related disabilities affect one’s ability to earn income.

Funder for health care and re-establishment services – The Department works with other levels of government—federal, provincial and territorial—to provide access to health programs that enhance the well-being of Veterans and other eligible individuals, promote independence and ensure continued care. The Department also provides support to Canadian Forces Veterans and their families to ease their transition to civilian life.

Catalyst for national and international remembrance – The Department keeps alive the achievements and sacrifices of those who served Canada in times of war, military conflict and peace, and promotes the importance of these efforts on Canadian life as we know it today. VAC fosters remembrance of the contributions made by Canada’s war dead and Veterans through its Canada Remembers Program. It also maintains and operates 14 memorial sites in Europe.

Veterans Ombudsman

The Office of the Veterans Ombudsman helps Veterans and their families address concerns related to VAC and the Veterans Bill of Rights. As an impartial and independent officer, the Veterans Ombudsman reports directly to the Minister of Veterans Affairs and works to ensure that Veterans, their representatives and their families are treated fairly.

Program Activity Architecture

Veterans Affairs Canada works to achieve three strategic outcomes (SOs). The following chart outlines these strategic outcomes as well as the program activities and sub activities that flow from them.

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Organizational Priorities

This section provides an overview of the priorities that the Department has chosen to focus its attention and resources on in 2012-2013. The priorities outlined are not an exhaustive list of the Department’s initiatives, but rather focus on the strategic activities that have been identified as crucial to the Department’s success.

Priority	Type	Strategic Outcome(s) and/or Program Activity(ies)
Modernization of the Department	New in 2012-2013	Contributing to: all strategic outcomes and program activities
Status
Why is this a priority? The Veteran population being served by VAC is changing and so too are the needs and expectations of Veterans and their families. If VAC is to meet the increasingly complex needs and higher service expectations of this evolving group, it must fundamentally change its existing processes, systems and culture. Modernizing VAC as a whole will result in a revitalized, streamlined and responsive Department that is better positioned to deliver on its mandate. Plans for meeting the priority Department wide re-engineering aimed at improving operations and refocusing on core business. Modernize internal services in order to reduce bureaucracy, red tape and redundancy. Increase the use of technology to reduce inefficient paper-based processes. Conduct a policy renewal exercise to simplifying existing policies. Improve integration throughout the Department in order to improve efficiency and responsiveness. Support Government of Canada initiatives aimed at modernizing and improving the public service.

Priority	Type	Strategic Outcome(s) and/or Program Activity(ies)
Improving Service Delivery	Ongoing since 2011	Contributing to: Strategic Outcome 1 PA(s) - 1.1, 1.2 & 1.3
Status
Why is this a priority? Veterans expect easier access to programs, faster service and appropriate levels of support. VAC will take additional steps to respond to the diverse and changing needs of all Veterans over the coming years to provide them and their families with faster and easier access to benefits and services delivered by employees who are equipped to do their job and who understand the military culture. Plans for meeting the priority Work with the CF to improve departmental policy integration, improve shared forecasting and better align transition support services. Increase access to information on VAC's programs and services. Improve case management capacity to better support individuals with complex needs. Continue to streamline decision-making processes to further reduce wait times. Expand the use of technology in delivering benefits and services to Veterans. Continue engagement of stakeholders and committees such as the Scientific Advisory Committee to promote open dialogue and information sharing. Establish partnerships with both private and public sector partners on initiatives such as Helmets to Hardhats to improve services for Veterans and their families.

Priority	Type	Strategic Outcome(s) and/or Program Activity(ies)
Transfer of Ste. Anne’s Hospital	Ongoing since 2009	Contributing to: Strategic Outcome 1 PA(s) - PA 1.3
Status
Why is this a priority? It has been a long-standing policy of the Government of Canada to transfer hospitals to provinces. In 1963, the Glassco Commission completed a study and recommended to Cabinet that departmentally operated hospitals be transferred to the provinces. In response, all hospitals owned by VAC were transferred to the provinces with the exception of Ste. Anne’s Hospital, the last remaining federally owned Veterans hospital. There is a declining demand for long-term care beds for traditional Veterans at the Hospital. Transferring Ste. Anne’s to the Government of Quebec would ensure that most employees would be retained, would maximize the Hospital’s expertise in geriatrics and psycho-geriatrics, and increase bed availability for other Canadians in need. Plans for meeting the priority Continue negotiations with the Government of Quebec aimed at reaching an agreement for the transfer of Ste. Anne’s Hospital. Ensure that priority access to care and services for Veterans, the interests of employees and official languages are key considerations in discussions for the transfer. Continue to communicate regularly with Veterans, employees and other key stakeholders to keep them informed on the future of Ste. Anne’s Hospital. Ensure that bed capacity is maximized to allow Ste. Anne’s Hospital to continue to provide care and services to Veterans and to maintain staff expertise.

Priority	Type	Strategic Outcome(s) and/or Program Activity(ies)
Workplace Renewal	New in 2012-2013	Contributing to: all strategic outcomes PA(s) - Internal Services
Status
Why is this a priority? VAC is in the midst of a period of significant change. In order to ensure its success, the Department must create a work environment that encourages and supports employees while ensuring that its workforce is properly aligned with Veteran demographics. VAC will also work to enhance opportunities for Veterans to obtain positions in the Public Service. Plans for meeting the priority Provide employees throughout the Department with new tools, skills and simplified procedures. Support employees in changing the culture within the Department to enhance service levels for Veterans while improving the workplace for employees. Create a workplace that supports the well-being, health and productivity of employees. Realign employee resources with changing Veteran demographics, IT advancements and simplification of policies and processes. Provide an environment that fosters creativity and innovation moving into the future. Broaden staff knowledge of the CF and military experience. Open all VAC staffing processes to CF members and treat CF experience as an asset qualification as part of our robust Hiring of Veterans Action Plan. Effectively manage the Department’s workforce as we work through departmental transformation.

Office of the Veterans Ombudsman

Priority	Type	Strategic Outcome(s) and/or Program Activity(ies)
Advance the fair treatment of the Veteran community Ongoing since 2009 and to uphold the rights articulated in the Veterans Bill of Rights	Ongoing since 2009	Contributing to: Strategic Outcome 3 PA(s) - PA 3.1
Status
Why is this a priority? Parliamentarians and Canadians firmly believe that Canada has the obligation to provide the very best support to the men and women who put their lives at risk defending our country and the values that we hold dear. As such, the Office is committed to act as an independent voice to the fair treatment of all Veterans, those still in uniform and their families who are entitled to receive from Canada compensation and/or services for serving our country. The Office views fairness as an outcome that can be objectively measured in terms of the adequacy, sufficiency and accessibility of the benefits and services in place to address their needs. Plans for meeting the priority Provide direct assistance through early intervention activities so that complaints, information requests and referrals are resolved in a timely and appropriate manner. Focus on initiating and investigating systemic issues, along with assessing and contributing to the resolution of complex Veterans issues. Maintain public consultation initiatives (including Web-based approaches, town halls and speaking platforms) aimed at engaging Veterans and other stakeholders to identify and to inform on issues of concerns and priorities.

Risk Analysis

Operating Environment

Veterans Affairs Canada is in the midst of the most significant transformation in the Department’s 68-year history. The composition of the Veterans and Canadian Forces members being served is changing rapidly—both in terms of their demographics and the complexity of their needs and expectations. As a result, VAC is modernizing how its programs and services are being provided.

Demographic Trends

The demographics of those served by VAC continue to evolve. Traditional war Veterans are now outnumbered by Canadian Force Veterans. At the same time, the overall number of Veterans is decreasing, although at a slower pace than was initially anticipated for the following reasons:

• More war service Veterans than was originally projected;
• Expanded eligibility for benefits to Allied Veterans;
• More Canadian Forces Veterans participating in VAC programs as a result of enhancements made to the New Veterans Charter; and
• Increased outreach and communication efforts by the Department to reach Veterans and their families who may not be aware of VAC services and benefits.

Service Expectations

Veterans’ expectations for service continue to be high and diverse as they seek support to meet needs ranging from complex health matters to end of life issues. This increasing complexity and diversity of Veterans’ needs is expected to continue as the needs of those who were involved in the Afghanistan mission emerge.

VAC Workload

These changing needs and increasing service expectations are adding more pressures on employees. VAC’s workload requires careful management to ensure that resources are used as efficiently as possible and that key business priorities are met. The Department will manage its priorities by realigning resources; simplifying business processes; leveraging technology; defining roles and responsibilities more clearly; and delivering services in a more targeted and efficient way.

For example, VAC has already made some progress in managing workloads, most notably in the area of case management. With approximately 10,000 Veterans being actively case managed, VAC has been able to maintain a ratio of 1 case manager for every 40 Veterans. Veterans presenting with less complex needs are supported largely by client service agents. This approach has allowed staff to better manage their workloads while providing Veterans with more appropriate levels of service.

As the number of Veterans we serve declines, and changes in business processes and technology make us more efficient, the Department anticipates it will need fewer employees. Between 2011-2012 and 2015-2016, VAC is expecting a reduction of about 500 FTEs. With a significant number of VAC’s workforce eligible to retire in this same timeframe, the Department will try to manage these reductions largely through retirements and other departures.

Risks

At Veterans Affairs Canada, risk management is a fundamental underpinning of good management and decision making. VAC’s approach to risk management is designed to address risk in any area or level within the Department in order to provide reasonable assurance that corporate objectives and desired outcomes will be achieved.

The Department has developed a Corporate Risk Profile (CRP) as an element of its risk management framework. The CRP is the formal mechanism to identify and mitigate against both internal and external corporate risks and opportunities. Well managed risks create opportunities for VAC. A number of opportunities have been identified within risk assessments conducted throughout the organization.

Successful management of risks and opportunities strongly contribute to realizing efficiencies and effectiveness in improving overall performance and outcomes in the delivery of services and benefits to Veterans.

The following risks have been identified as having the potential to impact the Department’s ability to achieve its strategic outcomes.

Managing Change

There is a risk that the magnitude and pace of change occurring within VAC over the coming years could have an impact on the Department’s ability to meet the needs of Veterans and other individuals during the transition period and that is why VAC is working to mitigate this risk.

By continuing to strengthen its governance structures, senior management is able to provide the oversight necessary to support transformation with sound decision-making. In addition, VAC is fostering a culture of change throughout the Department through the implementation of a change management framework aimed at supporting employees through the transition to a new working environment.

The Department is realigning organizational resources to better support its evolving model and footprint while ensuring that employees are provided with appropriate training and skill development opportunities. VAC is working to improve and increase communications in order to ensure clarity, consistency and quality in transformation-related messaging.

Programs and Service Delivery

There is a risk that large-scale, government-wide strategic changes may impact the Department’s ability to deliver its programs and services while maintaining strong partnerships and stakeholder relations.

In order to mitigate this risk, VAC is conducting a review of its business processes and procedures to improve efficiency in program delivery. The Department is continuing to implement an outreach plan to strengthen relations with Veterans, stakeholders and CF members. This will increase opportunities to provide them with accurate and relevant information about VAC’s benefits and services and gain insights into how they meet their needs.

VAC is also working with Veterans’ organizations to better understand how best to honour and serve Veterans and their families. The Department will continue to train employees and introduce new technology to assist with knowledge transfer and performance management.

Ste. Anne’s Hospital

The risks associated with the transfer of the Ste. Anne’s Hospital to the Government of Quebec are complex in nature given the scope of the project. Mitigation strategies have been put in place to ensure ongoing monitoring and the provision of flexibility for adjustment when necessary. Mitigation strategies include, but are not limited to, a detailed and comprehensive project plan; regular communication/consultation updates with various stakeholders including employees, unions, Veterans and their families; as well as a commitment to ensure Veterans continue to receive priority access to high level of care.

Planning Summary

The following table presents the Department’s planned financial and human resources over the next three fiscal years.

Financial Resources ($ millions)

	2012-13	2013-14	2014-15
Veterans Affairs Canada	3,562.2	3,315.2	3,318.2
Office of the Veterans Ombudsman	5.9	5.9	5.9

Human Resources (FTEs)

	2012-13	2013-14	2014-15
Veterans Affairs Canada	3,461	3,302	3,030
Office of the Veterans Ombudsman	40	40	40

Note: The Department’s planned spending as outlined above is based in part on reference levels that were established in 2007. This approach to budget planning causes future year projections (i.e., 2013 -2014 and 2014-2015) to be generally understated. This is not due to a reduction in Veterans programs. It is simply a reflection of the government’s planning process, which does not adjust planned spending beyond the upcoming year (2012-2013).

Strategic Outcome 1: Financial, physical and mental well-being of eligible Veterans

Performance Indicators	Targets
Percentage of eligible Canadian Regular Force Veterans with family incomes which fall below the Low Income Measure.	The rate of low income among eligible Canadian Force Veterans will not exceed that of the Canadian population.
Comparison of the mortality rate of Canadian Regular Force Veterans with the general Canadian population.	The mortality rate of Canadian Forces Veterans will not exceed that of the Canadian population.
Percentage of eligible Canadian Regular Force Veterans who report they are "satisfied" or "very satisfied" with their life in general.	The rates of life satisfaction among eligible Canadian Force Veterans will be comparable to the Canadian population.

Planning Summary Table
($ millions)

Program Activity	Forecast Spending 2011-12	Planned Spending ($ millions)			Alignment to Government of Canada Outcomes
		2012-13	2013-14	2014-15
Disability and Death Compensation	2,132.5	2,244.5	1,962.4	1,960.5	Income Security and Employment for Canadians
Financial Support Program	136.1	99.8	86.0	93.7	Income Security and Employment for Canadians
Health Care Program and Re-establishment Services	1,127.3	1,100.0	1,155.7	1,153.4	Healthy Canadians
Total for SO1	3,395.9	3,444.3	3,204.1	3,207.6

Strategic Outcome 2: Canadians remember and demonstrate their recognition of all who served in Canada’s efforts during war, military conflict and peace

Performance Indicators	Targets
Percentage of Canadians who participate in remembrance activities	35%

Planning Summary Table
($ millions)

Program Activity	Forecast Spending 2011-12	Planned Spending ($ millions)			Alignment to Government of Canada Outcomes
		2012-13	2013-14	2014-15
Canada Remembers Program	44.3	47.4	46.1	45.6	A Vibrant Canadian Culture and Heritage
Total for SO2	44.3	47.4	46.1	45.6

Strategic Outcome 3: Veteran’s rights to services and benefits that address their needs are considered in an independent and impartial way

Performance Indicators	Targets
Percentage of Veterans and other clients who feel that the Ombudsman has raised issues, which ensure fair and equitable treatment by the Department	80%

Planning Summary Table
($ millions)

Program Activity	Forecast Spending 2011-12	Planned Spending ($ millions)			Alignment to Government of Canada Outcomes
		2012-13	2013-14	2014-15
Veterans Ombudsman	6.8	5.9	5.9	5.9	Income Security and Employment for Canadians
Total for SO3	6.8	5.9	5.9	5.9

Program Activity Supporting all Strategic Outcomes

Program Activity	Forecast Spending 2011-12	Planned Spending ($ millions)			Alignment to Government of Canada Outcomes
		2012-13	2013-14	2014-15
Internal Services	98.0	70.4	65.0	65.0
Total	98.0	70.4	65.0	65.0

Notes: Forecast Spending has been reduced by $6.8 million for 2011-2012, $20.5 million for 2012-2013, $18.7million for 2013-2014 and $17.7 million per year thereafter to reflect the transfer of resources to Shared Services Canada, which is now responsible for e-mail, data centre and network services for the Government of Canada.

Totals may not add due to rounding.

Contribution to the Federal Sustainable Development Strategy

The Federal Sustainable Development Strategy (FSDS) outlines the Government of Canada’s commitment to improving the transparency of environmental decision-making by articulating its key strategic environmental goals and targets. Veterans Affairs Canada ensures that consideration of these outcomes is taken into account in its decision-making processes. In particular, through the federal Strategic Environmental Assessment (SEA) process, any new policy, plan, or program initiative includes an analysis of its impact on attaining the FSDS goals and targets. The results of SEAs are made public when an initiative is announced, demonstrating the Department’s commitment to achieving the FSDS goals and targets.

Veterans Affairs Canada contributes to Theme IV - Shrinking the Environmental Footprint – Beginning with Government as denoted by the visual identifier below.

Theme IV: Shrinking the Environmental Footprint - Beginning with Government

These contributions are made through the Internal Services Program Activity and are further explained in Section II.

For additional details on Veterans Affairs Canada’s activities to support sustainable development, please see Section II of this RPP and our departmental website. For complete details on the Federal Sustainable Development Strategy, please see the following website.

Expenditure Profile

Veterans Affairs total planned spending for the 2012-2013 fiscal year is $3,568.0 million. The majority of planned spending will be used to meet the expected results of the three strategic outcomes with only 2.0% being allocated to Internal Services.

Planned Spending Breakdown by Strategic Outcome 2012-13 ($ millions)

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VAC’s reference levels for program expenditures are adjusted on a year-by-year basis.

The Department anticipates that over the next three years, the number of individuals accessing VAC’s traditional programs—that is, Disability Pensions, War Veterans Allowance, the Veterans Independence Program (VIP), and Treatment Benefits—will decrease.

Overall, the number of individuals accessing VAC programs is expected to decrease approximately 4% by March 2014. Projected decreases will vary by Veteran group with the most notable changes over the next three years being:

• a decrease in war service Veterans by approximately 35%;
• a decrease in survivors of war service Veterans by approximately 9%; and,
• an increase in Canadian Forces Veterans by approximately 30%.

Over the longer term, the resulting shift in program usage is expected to result in:

• a decline in the proposed reference levels for VAC’s traditional programs which support primarily war service Veterans and their families;
• an increase in proposed reference levels for VAC’s programs under the New Veterans Charter which support Canadian Forces Veterans and their families; and
• an increase in proposed reference levels for many programs as a result of inflationary adjustments.

It is important to note that VAC’s funding projections fluctuate from year to year because of the non-discretionary nature of its programs which are driven by the needs of Veterans. To address these fluctuations, the Department prepares an annual submission during the year requesting that its program funding level be increased (both for the current year and for the next fiscal year) as part of the government’s planning cycle.

As a result of this process, the planned spending levels noted in this report for 2013-14 and beyond are not a true reflection of the changing demographic profile and needs of the individuals VAC serves. Instead, the planned spending figures are based in part on reference levels which need to be updated or corrected each year through the “estimates” process. As noted in the chart below, VAC’s budget over the past two years has increased by an average of $150 million through the in-year “supplementary estimates” process.

Departmental Funding Levels

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As Veterans Affairs Canada is a needs-based department, requests for supplementary funding ensures that the Department has the funds required to meet the needs of Veterans. In short, a Veteran who is entitled to a benefit is paid that benefit, whether 10 Veterans come forward, or 10,000.

Departmental Spending Trend ($ millions)

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Veteran demographics are a major factor in forecasting budget requirements—from preparation of initial forecasts through to the approval of planned spending.

The increase in the Department’s planned spending for 2012-2013 demonstrates the Government of Canada’s commitment to maintaining Veterans’ benefits and services. As noted previously, planned spending for 2013-2014 and beyond is generally understated throughout this report. This is not due to a reduction in Veterans programs. It is simply a reflection of a planning process which does not adjust planned spending beyond the upcoming year (2012-2013).

Voted and Statutory Items

For information on our organizational appropriations, please see the 2012-13 Main Estimates publication.

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