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1.0 Background

1.0 Background

The Veteran and Family Well-Being Fund (VFWBF, the Fund, or the Program) is a relatively new Veteran Affairs (VAC) grant and contribution program. A December 2017 Order in Council authorized VAC to pursue the Program.

The Fund provides grants and contributions to private, public or academic organizations to conduct research and implement initiatives and projects that support the well-being of Veterans and their families. Funding agreements are to a maximum of $250,000 per fiscal year for grants and up to $1 million per fiscal year for contributions.

The objectives of the Fund are to:

  • Drive progress on new knowledge and understanding of Veteran and family well-being using the determinants of health model;
  • Build capacity within the non-profit and volunteer sectors on issues specific to Veterans and their families such as homelessness, careers and employment, transition to civilian life, etc.;
  • Encourage coordination between multiple players: agencies, institutions, associations and other levels of government; and
  • Support new ideas for adapting existing programs and/or forming new programs and services to address ill-and-injured Veterans’ treatment and care needs.

VAC’s annual budget is around $5 billion. The Fund has an annual budget of $3M and is managed by the department’s Strategic Policy and Commemoration Branch. It’s first two rounds of funding had been administered by the Veterans Priority Program Secretariat. The Fund’s management now rests with the Program Policy and Litigation Coordination division. At the time of writing, a third call for applications had commenced in January, 2021. This round of funding is not included in the scope of this audit.

The Fund receives applications online after VAC puts out a call for applications. There have been two rounds of funding

  • First round: Call for applications in May 2018 which resulted in 155 applications and 21 projects selected for funding totaling $7.6M over 5 years.
  • Second round: Call for applications in February 2019 which resulted in 114 applications and 22 projects selected for funding totaling $7.3M over 5 years

Treasury Board Secretariat (TBS) has issued guidance to help departments administer grant and contribution programs: Policy on Transfer Payments and Directive on Transfer Payments. Through this guidance, government directs that grant and Audit of the Veteran and Family Well-Being Fund 2 January 2021 contribution payments are managed in a manner that respects sound stewardship and with the highest level of integrity, transparency, and accountability. Further, it dictates that transfer payment programs are designed, delivered and managed in a manner that is fair, accessible and effective for all involved – departments, applicants and recipients.

The TBS guidance requires that transfer payments be managed in a way that is sensitive to risks, that strikes an appropriate balance between control and flexibility. Departments should also have the right combination of good management practices, streamlined administration, and clear requirements for performance.

VAC staff are responsible to communicate the Program, accept and assess applications, make funding decisions, enter into funding agreements with successful applicants, manage payments, monitor projects, and measure results in accordance with the Terms and Conditions of the Program and financial authorities.