Archived — 2010–2011 Report on Plans and Priorities

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Section I: Agency Overview

Raison d'être and Responsibilities

The Economic Action Plan introduced in Budget 2009 provided $1B over five years for a new Southern Ontario development agency to support restructuring, community and business development, innovation and commercialization initiatives, and other measures to promote economic diversification in Southern Ontario. The Federal Economic Development Agency for Southern Ontario (FedDev Ontario) was formally established on August 13, 2009. In launching FedDev Ontario, Prime Minister Harper said:

"The global recession has created challenges in every region of our country, including Southern Ontario. This is a region with distinct needs, and the people of Southern Ontario deserve economic programs delivered in ways specifically tailored to their own priorities. FedDev Ontario is one more tool to ensure that workers and businesses in Southern Ontario have the resources they need to succeed."

This Agency is charged with delivering federal government economic development programs tailored to the specific priorities of workers, businesses and communities in Southern Ontario.

Mandate

The mandate of FedDev Ontario is to help support excellence by making the Southern Ontario economy and its communities more competitive, innovative and diversified.

Scope of Operations

FedDev Ontario is headquartered in Kitchener and has offices in Stratford, Peterborough, Toronto and Ottawa.

The designated geographic area for the Agency consists of the following 37 Statistics Canada census divisions:

1 Stormont, Dundas and Glengarry
2 Prescott and Russell
6 Ottawa
7 Leeds and Grenville
9 Lanark
10 Frontenac
11 Lennox and Addington
12 Hastings
13 Prince Edward
14 Northumberland
15 Peterborough
16 Kawartha Lakes
18 Durham;

19 York
20 Toronto
21 Peel
22 Dufferin
23 Wellington
24 Halton
25 Hamilton
26 Niagara
28 Haldimand-Norfolk
29 Brant
30 Waterloo
31 Perth

32 Oxford
34 Elgin
36 Chatham-Kent
37 Essex
38 Lambton
39 Middlesex
40 Huron
41 Bruce
42 Grey
43 Simcoe
46 Haliburton
47 Renfrew


A map of southern Ontario (the long description is located below the image)
Description of Figure

A map of southern Ontario that shows FedDev Ontario's scope of operations, from Cornwall in the east to Owen Sound in the west, and from Pembroke in the north to Windsor in the south.

According to the 2006 Census, this area has a population of over 11 million, representing approximately 93% of Ontario's total population and 36% of the total population of Canada.

Governance

FedDev Ontario is part of the Industry portfolio. Its President oversees Agency operations and resources, and reports to the Honourable Gary Goodyear, Minister of State (Science and Technology) (Federal Economic Development Agency for Southern Ontario).

The Executive Committee is the Agency's main governing body. It sets strategic directions and develops, reviews and approves strategic plans, budgets and any other documents or submissions of strategic importance. The Executive Committee is composed of the Agency President (who also acts as chair), the Vice President of Infrastructure, the Vice President of Business and Community Programs, the Director of Audit and Evaluation, the Director General of Communications, the Chief Financial Officer, the Director General of Strategic Policy and the Director of Human Resources.

Organization Chart (the long description is located below the image)
Description of Figure

An organization chart that shows the seven executive positions that report directly to the President: Vice President, Business Innovation and Community programs; Vice President, Infrastructure; Director, General Strategic Policy; Chief Financial Officer; Director General, Communications; Director, Human Resources; and Director, Audit & Evaluation.

Strategic Outcome and Program Activity Architecture (PAA)

The Strategic Outcome and Program Activity Architecture are used to guide planning and reporting for the Agency.

A graphic of the program activity architecture (the long description is located below the image)
Description of Figure

A graphic of the program activity architecture showing that the agency has one strategic objective—"The economy of Southern Ontario is competitive and diversified"—and three program activities: Internal Services; Community and Business Development; and Infrastructure.

PAA Crosswalk

To achieve its strategic outcome, FedDev Ontario administers and delivers programs that receive funding from various sources. The table below shows the origin of each program and where it is found in FedDev Ontario's Program Activity Architecture (PAA). For example, the Community Adjustment Fund of Canada's Economic Action Plan is found under sub-program activity 1.1.7, "Development Projects for Communities and Businesses," while the Recreational Infrastructure Fund falls under program activity 1.2, "Infrastructure."

All program expenditures are reported according to the structure and coding of the officially approved FedDev Ontario PAA.

Structure and Coding of the Approved FedDev Ontario Program Activity Architecture
Origin of FedDev Ontario Program Program Program/Sub-program in PAA
Canada's Economic Action Plan (Budget 2009) Community Adjustment Fund 1.1.7
Recreational Infrastructure Fund 1.2
Eastern Ontario Development Program 1.1.2
FedDev Ontario Southern Ontario Development Program 1.1.1
Former Industry Canada Programs Transferred to FedDev Ontario Community Futures Program 1.1.3
Ontario Potable Water Program 1.1.5
Economic Development Initiative 1.1.4
Brantford Greenwich-Mohawk Remediation Project 1.1.6
Infrastructure Canada Canada-Ontario Infrastructure Program 1.2
Building Canada Fund 1.2
Canada Strategic Infrastructure Fund 1.2
Canada-Ontario Municipal Rural Infrastructure Fund 1.2
Municipal Rural Infrastructure Top-Up Fund 1.2

Planning Summary

Financial and Human Resources

Financial and Human Resource Allocations for FedDev Ontario, from 2010–11 to 2012–13
  2010–11 2011–12 2012–13
Financial Resources ($ millions) 507.0 216.0 214.2
Human Resources (Full-time equivalents – FTEs) 200 250 250

The reduction in Financial Resources in 2011–2012 results from the sunsetting of current authorities for the Community Adjustment Fund (CAF), the Recreational Infrastructure Canada Fund (RInC), the Eastern Ontario Development Program (EODP), the Ontario Potable Water Program (OPWP) and the Building Canada Fund (BCF).

In contrast, the growth in the FTE count reflects a fully staffed FedDev Ontario as of 2011–2012. In 2010–2011, some work will be managed using temporary staff and other contractual arrangements until permanent staffing can be completed.

Summary Tables by Strategic Outcome

Summary Tables by Strategic Outcome
Performance Indicator Targets
Annual GDP growth rate for Southern Ontario 3%
Program Activity Forecast Spending
2009–10
Planned Spending Alignment to Government of Canada OutcomesFootnote *
2010–11 2011–12Footnote ** 2012–13Footnote **

Footnotes

Footnote *

Canada-Ontario Infrastructure Program

Return to footnote * referrer

Footnote **

Infrastructure spending for the years 2011–2012 and 2012–2013 does not include expenditures on behalf of Infrastructure Canada.

Return to first footnote ** referrer

Community and Business Development 299.8 395.0 204.5 202.8

An innovative and knowledge-based economy

Strong economic growth

Infrastructure 113.7 98.4 0.2 0.1

Strong economic growth

Internal Services 14.9 13.6 11.3 11.3 Not applicable
Total Planned Spending 507.0 216.0 214.2  

The change in Internal Service expenditures after 2010–2011 reflects reduced start-up costs and lower program expenditures. Expenditures under the Community and Business Development program will change after the 2010–2011 fiscal year as the CAF and EODP sub-programs sunset. The major factor impacting infrastructure spending in 2011–2012 will be the sunsetting of the RInC program. Projected expenditures for 2011 through 2013 are largely attributable to the five-year Southern Ontario Development Program (SODP)

Contribution of Priorities to Strategic Outcome

Agency Priorities for 2010–2011

Agency Priorities for 2010–2011
Strategic Outcome Management Priorities (New) Description
The economy of Southern Ontario is competitive and diversified Establish the Agency's internal services Build an internal service structure and capability that allows the Agency to effectively manage its affairs and minimize the amount of services procured under Memoranda of Understanding (MOU) and contractual arrangements
Develop the Agency's organizational structure, plans, procedures and processes Adopt a proactive approach to planning and introduce efficient processes and policies for effective management
Develop the Agency's research and policy capacity Ensure the Agency has the capacity to undertake research and policy analysis to help guide its programs and priorities
Develop program delivery capacity, such as fully trained staff, databases etc. Build community and business development program capacity to a level comparable to established infrastructure program delivery capacity
Operational Priorities (Ongoing) Description
Conduct outreach and consultations Champion dialogue with key stakeholders and citizens across Southern Ontario, focusing on emerging opportunities and challenges in the region
Develop effective program delivery mechanisms Continue to develop program delivery approaches that maximize benefits to Southern Ontario clients, e.g., broadening the scope of potential program delivery partners
Manage EAP initiatives Since RInC and CAF expire in March 2011, give additional attention to performance and results measurement
Continue to deliver legacy programs Deliver programs on behalf of Infrastructure Canada through the FedDev Ontario regional network

Operating Environment and Risk Analysis

External Operating Environment

The financial crisis, the resulting sharp economic downturn, and weakening U.S. demand for Southern Ontario goods and services have intensified the need for adjustment in the region to stem job losses and economic distress.

Despite signs of economic recovery in Canada, growth is likely to remain subdued according to the International Monetary Fund (IMF)Footnote 1. Many Canadians will face financial challenges as the unemployment rate reaches the 9% level for 2010Footnote 2. Certain distressed communities in Southern Ontario are likely to see unemployment rates several percentage points above 9%. Sustained growth partly depends on the strength of Southern Ontario's export industries, which are affected by the economic challenges facing Canada's trading partners and by the strength of the Canadian dollar.

In pursuit of its mandate, FedDev Ontario is engaged in outreach and consultations with the most vulnerable communities and businesses in the Southern Ontario economy. Agency program activities are diverse and highly dependent on partnerships for delivery. Internal audits and reviews are planned to ensure the efficiency and effectiveness of these programs.

Internal Operating Environment

Risk and mitigation strategies for 2010–2011 and beyond are described below. Risks are ranked according to the product of their impact and likelihood of occurrence.

Risk and mitigation strategies for 2010–2011 and beyond
Key Risks Mitigation Strategies

Compliance: The Agency must have experienced resources in place to ensure the compliance of all recipients with program terms and conditions due to the large number of specific projects and associated reporting requirements.

Experienced resources in the Toronto office have been transferred from Industry Canada to the Agency to assist with program delivery. The Atlantic Canada Opportunities Agency (ACOA) is providing FedDev Ontario with additional experienced resources under an MOU arrangement.

Performance Measurement: The Agency will ensure that it meets the challenges in reporting on results for short-term programs due to the large number of recipients.

FedDev Ontario has worked to develop an appropriate short-term performance measurement strategy. With the RInC program, for example, the province has prime responsibility for ensuring projects are completed "on time, on budget." The province has a clear understanding of the reporting requirements involved.

Delivery Capacity: As a new organization, FedDev Ontario is addressing a number of administrative and operational challenges.

The Agency will continue to draw on experienced resources through Memoranda of Understanding and other contractual arrangements until sufficient internal capacity is developed.

Excess Demand: High demand for funding might be a program management challenge.

Proposals will be assessed and given priority based on program eligibility criteria.

Canada's Economic Action Plan (EAP)

In its 2009 Budget the Government of Canada announced Canada's Economic Action Plan. Under the headingFootnote 3 "Action to Support Businesses and Communities," Budget 2009 addressed the short-term economic challenges facing different sectors, regions and communities as a result of the global financial crisis and helped position them for long-term competitiveness. As part of this initiative, $1 billion over five years was earmarked for the creation of a Southern Ontario development program to help workers, communities and businesses in the region.

Following the Budget 2009 announcement, Industry Canada used various tools within its Portfolio, including agreements with the National Research Council of Canada and the Business Development Bank of Canada, to support projects encouraging economic development in Southern Ontario. These initiatives were undertaken while government officials worked to establish the policy and governance mechanisms of FedDev Ontario.

Economic Action Plan program initiatives also included the Community Adjustment Fund, the Eastern Ontario Development Program and the Recreational Infrastructure Canada program. FedDev Ontario administers these programs in addition to its core Southern Ontario Development program.

Since its inception, FedDev Ontario has provided 2009–2010 and multi-year funding to many Ontario municipalities, including Welland, Orillia, Oshawa, Oxford County and Kingston. Several industry sectors also received funding, including Ontario food & beverage processors and the micro-satellite technology industry.

Expenditure Profile

The chart below shows FedDev Ontario program spending in 2010–2011 as divided among Canadian Economic Action Plan (EAP) initiatives, programs transferred to FedDev Ontario from Industry Canada, FedDev Ontario's core program, SODP and legacy programs delivered on behalf of Infrastructure Canada.

Program initiatives shown in the chart below are EAP, SODP, former Industry Canada programs and the delivery of infrastructure programs for Infrastructure Canada

Planned 2010–2011 Spending by Program Initiative

A pie chart that shows the percentages of 2010–2011 (the long description is located below the image)
Description of Figure

A pie chart that shows the percentages of 2010–2011 planned spending by program initiative: 52% from Canada's Economic Action Plan; 40% from the Southern Ontario development program; 7% from former Industry Canada programs and; 1% from Infrastructure.

Spending Trend ($millions)

A line chart that shows the profile of FedDev Ontario's forecast spending for 2009–2010 (the long description is located below the image)
Description of Figure

A line chart that shows the profile of FedDev Ontario's forecast spending for 2009–2010 and planned spending for fiscal years 2010 through 2012. Spending starts in August 2009 when the Agency was launched, rises to a peak in 2010-2011 boosted by Economic Action Plan spending, and changes to SODP spending levels for the remainder of the period.

Significant variations in FedDev's Ontario's expenditure profile over the planning period are attributable to sunsetting funds.

Voted and Statutory Items displayed in the Main Estimates
($ millions)

Footnotes

Footnote *

The Agency was not created until August 13, 2009.

Return to footnote * referrer

Vote # or Statutory Item (S) Truncated Vote or Statutory Wording 2009–2010Footnote *
Main Estimates
2010–2011
Main Estimates

1

Operating expenditures

NA

34.0

5

Grants and contributions

NA

469.5

(S)

Contributions to employee benefit plans

NA

3.4

Total

NA

507.0

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