The Ex Gratia Payments Audit was recommended for inclusion in the Veterans Affairs Canada (VAC) Multi-Year Risk-Based Internal Audit Plan 2010-2013 by VAC’s Departmental Audit Committee (DAC) on March 18, 2010. The purpose of the audit was to examine the adequacy of controls put in place for the processing of applications for ex gratia payments. The audit fieldwork was substantially completed on December 15, 2010.
Ex gratia payments are one-time payments for a fixed duration of time and stringent pre-set eligibility and entitlement criteria are applied. In recent years, VAC has budgeted $135M for these programs. The majority of the work in this audit focused on the most recent payment, i.e., Agent Orange ex gratia payments. In September 2007, the Minister of Veterans Affairs announced a $20,000 ex gratia payment related to the testing of unregistered US military herbicides, including Agent Orange, at Canadian Forces Base Gagetown in 1966 and 1967.