Archived — Departmental Performance Report 2011-12

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Section II: Analysis of Program Activities by Strategic Outcome

Strategic Outcome

The Economy of Southern Ontario is Competitive and Diversified

Through its four program activities (Business and Innovation Development; Economic Regional Development and Infrastructure; Policy, Advocacy and Coordination; and Internal Services), FedDev Ontario has worked to build the competitive advantages of southern Ontario and engage with stakeholders to respond to the economic challenges and improve the competitiveness and diversification of the region's economy. The achievements by program activity that follow have supported FedDev Ontario's target of contributing to 2 percent annual growth rate of GDP in Ontario.

Program Activity 1.1: Business and Innovation Development

Program Activity Description

FedDev Ontario supports communities and businesses in southern Ontario, particularly those affected by structural economic change, by making the southern Ontario economy more competitive, innovative and diversified. FedDev Ontario works to improve the region's capacity for economic growth by assisting enterprises, particularly small- and medium-sized enterprises, to enhance their productivity and improve their competitiveness and by strengthening innovation capacity and the commercialization of knowledge. Through this program activity, FedDev Ontario delivers and administers contributions with businesses, not-for-profit organizations, and other levels of government. Transfer payments in support of this program are made under the authority of Southern Ontario Development Program (SODP).

2011–12 Financial Resources ($ millions)Footnote 5
2011–12 Financial Resources ($ millions)
Planned Spending Total AuthoritiesFootnote * Actual SpendingFootnote *
Footnotes

Footnote * Excludes amount deemed appropriated to Shared Services Canada, if applicable. (Return to footnote * referrer)

134.5 176.6 169.5
2011–12 Human Resources (FTEs)Footnote 6
2011–12 Human Resources (FTEs)
PlannedFootnote * Actual DifferenceFootnote *
Footnotes

Footnote * FedDev Ontario's 2011-12 Report on Plans and Priorities did not contain a planned FTE amount by program activity. (Return to footnote * referrer)

n/a 75 n/a
Program Activity Performance Summary
Program Activity Performance Summary
Expected Results Performance Indicators Targets Actual Results
Improved growth and competitiveness of southern Ontario small- and medium-sized enterprises (SMEs) % of SMEs assisted that maintained or increased their sales 40% 100%Footnote 7

Performance Summary and Analysis of Program Activity

Activity Overview:

Through the Business and Innovation program activity, FedDev Ontario worked collaboratively with key economic stakeholders (businesses, start-up companies, not-for-profit organizations, post-secondary institutions and other levels of government) to create the conditions necessary to make the southern Ontario economy more competitive, innovative and diversified.

This was achieved by providing repayable and non-repayable contributions under the Program Sub-Activities: Business Financing Support; Innovation and Commercialization; and Enterprise Productivity. Investments under these Program Sub-Activities supported projects that provide increased access to capital, support science, technology, engineering and mathematics (STEM) graduates with business skill training and financing for start-up businesses, stimulate the development of industry clusters, commercialize new innovations and improve business productivity.

In many instances the results that were achieved intersect with several sub-activities that contribute to the Agency's overall strategic outcome.

Results Achieved

Business Financing Support

Two of FedDev Ontario's SOAIs are targeted to support start-up businesses. They are the Investing in Business Innovation (IBI) and Scientists and Engineers in Business (SEB) initiatives.

IBI was successful in its objectives to encourage collaboration between entrepreneurs and angel and venture capital investors and to increase private sector investment in start-up enterprises. Thirty-seven start-up enterprises were supported in 2011-12. The Agency investment of $11.3 million is expected to leverage a further $68.5 million in private investment in these firms during the life of the projects.

IBI also supported investment attraction activities for eight angel investor networks in southern Ontario and two organizations that represent networks. Increased angel investor membership will enable these networks to support greater numbers of start-up enterprises in the future.

SEB established partnerships with seven not-for-profit organizations and PSIs that are investing in commercializing the ideas of graduates and graduate students in the STEM fields. SEB assisted 30 STEM graduates to develop their innovative products and services, mentored nine STEM entrepreneurs in business and technical skills, and supported eight STEM graduate students through commercialization fellowships at McMaster University.

Innovation and Commercialization

Two of the Agency's SOAIs, the Applied Research and Commercialization (ARC) Initiative and the Technology Development Program (TDP), support increased innovation capacity in southern Ontario by encouraging collaborations between the private sector and post-secondary institutions.

The ARC initiative provided $12.4 million to support 24 universities, colleges and polytechnics in sharing their applied research expertise with small- and medium-sized enterprises (SMEs) with pre-commercialization needs. The initiative drew substantial demand from southern Ontario SMEs, resulting in 309 collaboration agreements between the 24 post-secondary institutions and SMEs, of which more than 80 percent were new relationships.

Seventy percent of SMEs participating in ARC belong to one of the "top 10" industry sectors in southern OntarioFootnote 8 as determined by the number of business establishments, revenues, exports, employment and other factors by sector.

The TDP provided multi-year investments of $58.4 million in five leading-edge collaborations involving a total of 87 research and innovation organizations, PSIs and businesses. This investment leveraged a further $65.9 million in private-sector investments toward projects that will accelerate the development of large-scale, advanced technologies. For example, one project is developing solvent technologies that consume less energy in the process of plastic, bitumen and drilling tailings recycling and remediation. While innovations like this one are often years from market, they have the potential for high economic impacts in southern Ontario, including new and improved market opportunities for southern Ontario businesses.

Additionally, contributions under the Prosperity Initiative's Building a Competitive Advantage objective provide support to businesses, post-secondary institutions and not-for-profit organizations to undertake projects that will enhance key economic clusters that have, or are developing, significant positions in producing products or services that are competitive within the global economy.

Contributions under the Prosperity Initiative's Building a Competitive Advantage objective supported 18 projects for a total Agency commitment in 2011-12 of $31.4 million, which is expected to contribute to leveraging $362.5 million in investment in these firms over the life of the projects. These projects will develop and expand key economic clusters in southern Ontario in areas such as high performance computing, medical devices, food processing, bio-technology, green automotive technologies, and bio-chemicals. For example, Conestoga College Institute of Technology and Advanced Learning developed a new food processing centre and formed collaborations with SMEs to train employees in advanced food processing operations. The project brings new ideas and entrepreneurial resources together in a focused effort aimed at providing employees with the skills required to compete within the global economy.

Enhanced Enterprise Productivity

Contributions under the Prosperity Initiative's Productivity Enhancement objective have resulted in four projects led by third-party program delivery agents that in turn support businesses to invest in new technologies, increase capacity utilization and improve their flexibility to respond to changes in economic conditions.

Although most projects funded through the Prosperity Initiative's Productivity Enhancement objective are multi-year endeavours, one project has been completed with a contribution of $4.2 million from FedDev Ontario to the Canada Manufacturing and Exporters Alliance's SMART Program (CME SMART). Through CME SMART FedDev Ontario supported 86 SMEs to adapt and adopt new technologies, processing, and skills development that will enhance business productivity while maintaining a significant amount of long-term employment. The project created 7,872 person months of employment and maintained 10,776 person-months of employment while leveraging $10.6 million in private sector financing and contributing to the improved competitive performance of participating companies in markets at home and abroad.

FedDev Ontario also continued to deliver projects funded through the SODP General Intake, a program launched in 2009 as part of Canada's Economic Action Plan. The program's objective was to promote economic development, diversification and innovation. Seven multi-year SODP projects received a total of $17 million in 2011-12, their final year. These projects created 64,379 person-months of employment, maintained an additional 22,668 person-months of employment, and leveraged $72.6 million against a total multi-year Agency contribution of $54.2 million.

Overall, the Agency's performance targets for SODP were met and exceeded in 2011-12. SODP projects assisted 836 SMEs, created 29,801 person months of employment and maintained another 39,229 person months of employment. More than 14,175 workers received skills upgrade training as a result of SODP assistance. Additionally, funding provided to Mathematics of Information Technology and Complex Systems Inc. (MITACS), a national not-for-profit research centre that offers research and training programs to equip the next generation of innovators with scientific and business skills, supported 200 research partnerships with SMEs and PSIs across southern Ontario and 100 placements for interns from outside Canada. These program measurements indicate the SODP's contribution toward viable southern Ontario communities and competitive businesses.

Lessons Learned

One of the key lessons learned under this program activity is that continuous stakeholder feedback and collaboration is essential when implementing programs that respond to Canadians' needs and to effectively and efficiently maximize the impact of Government of Canada funding. While the Agency's new initiatives under the Business and Innovation Development Program Activity were underway, it continued to listen to stakeholder feedback and adapt initiative requirements as needed. This resulted in a slight shift in SEB to focus contributions toward a higher level of seed financing for start-up businesses, while continuing to provide support for business skills training for entrepreneurs. This shift achieved significantly greater interest and support from stakeholders.

Post-secondary institutions (PSIs) have proven to be a very efficient and cost-effective mechanism to encourage investment in innovation by SMEs. The Agency has worked to develop strong and open relationships with PSIs through the ARC initiative, supporting high-performing PSIs to reach more SMEs and encouraging outreach to regions that are not in geographic proximity to PSIs. The positive contributions of PSIs to investment and innovation in the region contributed to the Agency's decision to extend the ARC initiative.

The Agency has also found collaboration with angel investors to be a key means to accelerating investments in start-up enterprises. By matching a portion of angel investments, the Agency lowers the risk to investors who are able to deploy their capital across a larger number of companies. Start-up enterprises also benefit from less dilution of their existing investors' share of the companies.

It is important to note that for many of the initiatives within the Business and Innovation Development Program Activity, it is still too early to draw conclusions about their impact on the growth and competitiveness of southern Ontario SMEs, as only a handful of projects have been completed and reported results. However, their impact will become apparent in the coming years.

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Program Activity 1.2: Economic Regional Development and Infrastructure

Program Activity Description

FedDev Ontario supports Southern Ontario communities, particularly those most affected by changes in the economy and those whose economies are less diversified or are reliant on single employers. It will assist communities to transform and diversify their economies through investments that stimulate economic development, promote conditions that foster sustainable communities, increase economic opportunities and increase community capacity to respond to challenges. Through this program activity, FedDev Ontario delivers and administers contributions with not-for-profit organizations, other levels of government, businesses and business associations. These funds are used to support community economic planning, development and diversification initiatives. Transfer payments in support of this program are made under the authority of the SODP, the Eastern Ontario Development Program (EODP), and the Community Futures Program (CFP). FedDev Ontario also works with Infrastructure Canada and the provinces to oversee the flow of federal funds allocated to Ontario through various infrastructure funding streams.

2011–12 Financial Resources ($ million)Footnote 9
2011–12 Financial Resources ($ million)
Planned Spending Total AuthoritiesFootnote * Actual SpendingFootnote *
Footnotes

Footnote * Excludes amount deemed appropriated to Shared Services Canada, if applicable. (Return to footnote * referrer)

68.8 84.0 43.1
2011–12 Human Resources (FTEs)Footnote 10
2011–12 Human Resources (FTEs)
PlannedFootnote * Actual DifferenceFootnote *
Footnotes

Footnote * FedDev Ontario's 2011-12 Report on Plans and Priorities did not contain a planned FTE amount by program activity. (Return to footnote * referrer)

n/a 31 n/a
Program Activity Performance Summary
Program Activity Performance Summary
Expected Results Performance Indicators Targets Actual Results
Southern Ontario communities have increased economic opportunities and higher capacity to respond to challenges Leveraging of Agency funds invested against other sources of funding 1:2 1:5Footnote 11

Performance Summary and Analysis of Program Activity

Activity Overview:

The Economic Regional Development and Infrastructure Program Activity aims to develop and diversify southern Ontario economies and respond to the long-term challenges facing southern Ontario as it transitions toward an innovation-focused economy, and to create strong, safe, and modern communities for long-term competitiveness and prosperity. Some of the key challenges facing the southern Ontario economy are labour and skills shortages in fields related to science, technology, engineering and mathematics (STEM); attraction of new business investment; decreased access to capital; aging infrastructure; and the capacity of communities to respond to local conditions while recognizing the benefits of operating in a regional economy.

The Agency worked collaboratively with economic stakeholders such as businesses, start-up companies, not-for-profit organizations, Community Futures Development Corporations (CFDCs) and other levels of government, to address these challenges. FedDev Ontario provided repayable and non-repayable contributions toward projects that will encourage young people to pursue education and careers in the STEM fields, provide STEM graduates and graduate students with internship opportunities in southern Ontario SMEs, stimulate economic development in regions and official language minority communities, and develop and renew strategic infrastructure investments.

Results Achieved

Human Capital and Skills Development

FedDev Ontario's Youth STEM initiative partnered with 12 not-for-profit organizations to provide children and youth from kindergarten to grade 12 with opportunities to discover the exciting opportunities offered in science, technology, engineering and mathematics (STEM). The initiative aims to encourage youth to enter STEM fields of study and work, but its impact on participants' pursuit of studies and careers in STEM fields will not be felt for many years. However, in 2011-12, 272,744 children and youth across southern Ontario participated in STEM enrichment programs as a result of FedDev Ontario's $2.8 million in support, which may lead to a higher number of skilled STEM workers in southern Ontario in years to come.

The main objective of FedDev Ontario's Graduate Enterprise Internship (GEI) is to build the next generation of potential managers to lead business innovation in the future. The program supports post-secondary institutions and not-for-profit organizations to offer graduate students and recent graduates of STEM programs internships with structured mentoring opportunities in southern Ontario SMEs. Funding under this initiative enables businesses to hire graduates to foster their use of new technology and new approaches.

In the first year of GEI, projects were just getting underway, reaching out to potential interns and SMEs that would both benefit from their skills and mentor them in business and management skills. Sixty-four interns have since been placed and are contributing their STEM expertise to southern Ontario SMEs, while gaining skills that will potentially result in full-time, high-quality positions in technology and innovation businesses.

Regional Economic Diversification

Contributions under the Prosperity Initiative's Regional Diversification objective support businesses and communities in identifying and pursuing opportunities for economic development and diversification. The initiative has supported projects across southern Ontario that assist SME applicants starting or expanding business operations in new locations, diversifying product offerings, or branching into new industry sectors. Through the Southern Ontario Fund for Investment in Innovation (SOFII), a project funded through the Prosperity Initiative, CFDCs are providing loans via a wide geographic network to respond to opportunities to grow small- and medium-sized innovative enterprises across southern Ontario.

In 2011-12 the Prosperity Initiative's Regional Diversification objective supported 12 projects that received a total investment of $10.8 million in 2011-12. These projects are expected to leverage $241.7 million in investments in SMEs over the life of the projects and create up to 548 new jobs.

The CFP supports economic development and builds capacity in non-metropolitan communities in southern Ontario by providing funding to 37 CFDCs in the region. Through this operational funding, the CFDCs provide services to their communities including strategic planning for community economic development and support to local businesses. This support includes administration of business loans from locally managed investment funds. In 2011-12 the CFDCs administered 555 new loans. The CFP created, expanded or maintained 2,020 businesses and organizations in rural southern Ontario in 2011-12.

The EODP was renewed in Budget 2011. As such, the program did not appear in the 2011-12 Report on Plans and Priorities. During the year, new Terms and Conditions were approved for the program and it was re-launched in the fall of 2011 with a budget of up to $30 million over three years. Contribution Agreements were successfully put in place with 15 CFDCs in eastern Ontario to deliver the program in their service areas on behalf of the Agency with a focus on business development and community innovation. In the first year of the renewed EODP, the CFDCs invested in local and regional projects to develop a competitive and diversified economy, create jobs, and ensure the region's long-term growth and prosperity.

Official Language Minority Communities Development Program

As part of the Government of Canada's Roadmap for Linguistic Duality, the Economic Development Initiative (EDI) supports Francophone communities in southern Ontario and directly contributes to the region's rich diversity and economy. Since 2008, 30 projects have been approved in southern Ontario. At the end of 2011-12, 14 projects were completed that have directly enhanced the vitality of French-speaking minority communities across Canada. As part of these projects, FedDev Ontario invested in three strategic projects that focus on business counseling, micro credit lending and youth internships.

Brantford Greenwich-Mohawk Remediation Project

One of FedDev Ontario's 2011–12 objectives was to provide funding for the redevelopment of a brownfield site in Brantford, Ontario. However, there were no expenditures in 2011-12 on this project as the project plan was undergoing review.

Infrastructure

Strategic infrastructure investments can be a catalyst for economic growth and quality of life. To that end, the programming that FedDev Ontario delivers ensures that throughout Ontario, infrastructure is built and renewed in partnership with local communities in a variety of investment categories such as: water, wastewater, sewage, transportation, and recreation. In 2011–12, FedDev Ontario continued to partner with Infrastructure Canada, the Province of Ontario, communities and other funding recipients, to support infrastructure investments throughout Ontario.

FedDev Ontario, on behalf of Infrastructure Canada delivers the Canada Strategic Infrastructure Fund, the Canada Ontario Municipal Rural Infrastructure Fund Program, the Municipal Rural Infrastructure Fund, the Municipal Rural Infrastructure Fund Top-Up, and the Building Canada Fund-Communities Component.

FedDev Ontario administered 2,610 projects across the suite of infrastructure programming it delivers. This represented a total investment of $7.6 billion in infrastructure projects across all of Ontario, which included a federal investment of $1.9 billion (approximately 4:1). More than 3,300 claims were processed in this reporting period, representing payments of more than $276 million to clients.

Since 2009-10, FedDev Ontario has been administering the delivery of 757 projects under the RInC program that have been allocated up to $183 million in investments across multiple years in key community recreational assets and facilities. This federal investment, matched by the Province of Ontario, with the balance funded by recipients, leveraged more than $652 million in total projects costs.

In 2011-12, some projects received an extension to the construction completion deadline from March 31, 2011 to October 31, 2011, which resulted in $35 million in additional authorities being made available for the RInC program. FedDev Ontario continued to work with these clients to close-out the RInC project files. To date, 755 RInC projects have been completed. More than 260 of these projects were completed in 2011-12. The remaining two recipients are committed to completing and funding the outstanding work in the 2012 calendar year.

The Agency also continued to work with recipients to close out project files under the Building Canada Fund-Communities Component Top-Up Intake.

FedDev Ontario continued to support eighteen projects that were initiated with Community Adjustment Fund support in 2010-11.

Lessons Learned

In order to maximize the impact of Government of Canada funding, continuous stakeholder feedback and collaboration is essential to supporting the implementation of programs that respond to Canadians' needs. While many initiatives under the economic regional development and infrastructure activity were well under way, the Agency continued to listen to stakeholder feedback and adapt initiative requirements when needed.

Projects funded under the Graduate Enterprise Internship (GEI) got underway several months after graduations from post-secondary institutions took place in 2011. Feedback from the Agency's stakeholders in post-secondary institutions has suggested that future funding to support internships be made available in conjunction with spring graduations. This ensures large graduating classes are not missed before graduates lose contact with their educational institutions.

To ensure greater support to rural-based businesses and the retention of youth in their home communities, recipients of funding under GEI will be encouraged to conduct outreach to rural-based businesses as their projects get under way.

To better serve communities, the Agency implemented enhancements to the CFP in 2011-12. It introduced a performance-based funding model that requires all 37 CFDCs to ensure support is targeted at organizations that demonstrate excellence in program delivery and provide the greatest results for their clients. Starting April 1, 2012, a portion of a CFDC's annual contribution from FedDev Ontario for this administration will be tied to performance against specific criteria.

Challenges in increasing uptake to the Economic Development Initiative (EDI) were overcome by targeting several strategic projects identified by official language minority communities. The Agency also adopted a continuous intake process for the remaining life of the program to help utilize available funding.

FedDev Ontario infrastructure programs benefit from the lessons learned, evaluations and audits of previous infrastructure programming. While no program audits or evaluations were required in this reporting period, the Agency has made continued improvements to data management and client service.

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Program Activity 1.3: Policy, Advocacy and Coordination

Program Activity Description

FedDev Ontario's Policy, Advocacy and Coordination (PAC) Program Activity is central to identifying and effectively responding to opportunities and challenges facing the southern Ontario economy. PAC provides intelligence, analysis and well-grounded advice on a broad range of issues and topics, and informs and supports decision making by the Agency and the Minister of State. By offering strategic, researched policy positions that reflect the region's potential; influencing national policies and programs that affect southern Ontario's development and interests; and in coordinating other policies and programs within the region to form integrated approaches to development, PAC helps carry the Agency's agenda forward and helps ensure that FedDev Ontario remains relevant and responsive to the opportunities and challenges in southern Ontario.

2011–12 Financial Resources ($ millions)
2011–12 Financial Resources ($ millions)
Planned Spending Total AuthoritiesFootnote * Actual SpendingFootnote *
Footnotes

Footnote * Excludes amount deemed appropriated to Shared Services Canada, if applicable. (Return to footnote * referrer)

2.0 2.8 2.7
2011–12 Human Resources (FTEs)
2011–12 Human Resources (FTEs)
PlannedFootnote * Actual DifferenceFootnote *
Footnotes

Footnote * FedDev Ontario's 2011-12 Report on Plans and Priorities did not contain a planned FTE amount by program activity. (Return to footnote * referrer)

n/a 23 n/a

Performance Summary and Analysis of Program Activity

Activity Overview:

FedDev Ontario continues to ensure that the interests of southern Ontario are known and considered in national policy, program and project development, and implementation. The Agency also provides ongoing leadership in working with others to promote the interests of southern Ontario. FedDev Ontario's Policy, Advocacy and Coordination Program Activity provides strategic analysis, evidence-based policy advice, and a wide range of intelligence gathered through collaboration with partners and stakeholders, in order to inform decision-making throughout the Agency and by the Minister of State.

Results Achieved

In 2011-12, FedDev Ontario's Policy, Advocacy and Coordination provided leadership in advocating for southern Ontario's interests in a number of arenas and coordinated several collaborative efforts to support economic development in the region. FedDev Ontario continues to work with other federal departments and agencies, in particular, other regional development agencies, in areas of mutual interest and in the sharing of best practices.

As part of the Agency's research agenda, FedDev Ontario worked with and shared research agenda work with other federal departments and provincial ministries. For example, the Agency collaborated with members of the Canada-Ontario Export Forum on trade and investment-related issues in southern Ontario; and, with the Business Development Bank of Canada on venture capital research. FedDev Ontario is also a member of the Intergovernmental Committee on Labour Force and Economic Development, which promotes greater regional economic development collaboration in Toronto, and has membership from federal departments, provincial ministries, and the City of Toronto.

In November 2011, FedDev Ontario organized an information session for southern Ontario firms interested in learning about available opportunities related to supporting the Joint Strike Fighter (JSF) project. In collaboration with the Ontario Ministry of Economic Development and Trade and the Ontario Aerospace Council, the session provided advice to firms on how to maximize potential business opportunities offered by the JSF.

FedDev Ontario continued to work collaboratively with the province, sitting as a member of the Provincial Economic Transformations Teams. These teams are the province's internal initiative to bring together a cross-section of ministries involved in economic development to bring about a more horizontal approach among them, and to support greater collaborative work for the benefit of the region. These teams have led to informal information sharing and the identification of issues and opportunities for collaboration.

In 2011-12, in its role as host of the Ontario Federal Council (OFC), FedDev Ontario continued its support of collaborative efforts with respect to economic development in southern Ontario. For example, FedDev Ontario chairs the OFC, as well as the OFC Sub-Committee on Economic Development, which is a forum for sharing information on emerging issues and identifying collaborative economic development opportunities and initiatives that may impact Ontario, and to influence decisions that affect the region. During the OFC Strategic Planning session for 2011-12, FedDev Ontario led a working group on Improved Shared Back Office Services, which focused on identifying common operations for all departments where gains can be realized through consistency and economies of scale.

Lessons Learned

In 2011-12, FedDev Ontario's Policy, Advocacy, and Coordination program activity continued to help build the Agency's reputation as a centre of knowledge regarding the economy of southern Ontario through a number of activities, including conducting strategic research, data collection, analysis and consultation with stakeholders. Research has focused on such issues as emerging technologies, community assets and stressors, and skills. This work has translated into a greater awareness of the opportunities and challenges in southern Ontario resulting in stronger collaborative efforts focused on achieving results for residents and businesses in southern Ontario with more tailored and targeted support. This work will also help to inform future program design and enhancements.

In working with partners and stakeholders throughout 2011-12, the Agency has been able to leverage support and expertise for economic development in southern Ontario. These collaborative efforts were buoyed by FedDev Ontario's ongoing role as a catalyst for economic development initiatives, and in its role as a convener, as evidenced by its involvement in helping to enhance the awareness of southern Ontario businesses in the JSF project.

The Agency's advocacy work over 2011-12 has increased the profile not only of FedDev Ontario as a key player in economic development in the region, but also at the national level. Ongoing leadership in promoting the interests of southern Ontario has contributed to the development of national programs and initiatives that are well-suited to supporting the southern Ontario economy.

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Program Activity 1.4: Internal Services

Program Activity Description

The Internal Services Program Activity supports all strategic outcomes and is common across government. Internal Services are groups of related activities and resources that are administered to support the needs of programs and other corporate obligations of an organization. These groups are: Management and Oversight Services; Communications Services; Legal Services; Human Resources Management Services; Financial Management Services; Information Management Services; Information Technology Services; Real Property Services; Materiel Services; Acquisition Services; and Travel and Other Administrative Services. Internal Services include only those activities and resources that apply across an organization and not to those provided specifically to a program.

2011–12 Financial Resources ($ millions)
2011–12 Financial Resources ($ millions)
Planned Spending Total AuthoritiesFootnote * Actual SpendingFootnote *
Footnotes

Footnote * Excludes amount deemed appropriated to Shared Services Canada, if applicable. (Return to footnote * referrer)

15.0 15.3 15.1
2011–12 Human Resources (FTEs)
2011–12 Human Resources (FTEs)
PlannedFootnote ** Actual Difference
Footnotes

Footnote ** Planned FTE total taken from FedDev Ontario's 2010-11 Report on Plans and Priorities. (Return to footnote ** referrer)

92 92 0

Performance Summary and Analysis of Program Activity

In 2011-12, FedDev Ontario focussed on stabilizing processes and systems in a manner that would establish a track record of success and continue to build the organization's reputation as competent and effective.

Specific achievements in this fiscal year included the updating of the Agency's delegation of financial authority for budget managers in support of greater accountability and control over expenditures while also assuming full responsibility from Industry Canada for authorization of its salary payments. Further to this, FedDev Ontario made efforts to improve its internal capacity through consultations with other regional development agencies to adopt best practices and the development of management action plans aimed at addressing the recommendations of internal audits. This has resulted in streamlined procurement processes to more effectively meet the Agency's evolving needs.

The Agency also worked to strengthen its reporting transparency and internal coordination through the adoption of the monthly financial forecast and work plan exercises, which improved accuracy of the organization's forecasting and led to more immediate and efficient organizational redistributions of funds and budget allocations. FedDev Ontario also instituted a framework to administer the Agency's portfolio of repayable contributions to manage the first set of completed projects that were set to start repayment in 2011-12.

To reduce costs and support the greening of the Agency in 2011-12, FedDev Ontario was also a pilot organization for the Digital Office Project, which included the implementation of the GCDOCS record management system, the adoption of mobile technologies including tablet and laptop computers, and the consolidation of printers per employee in an effort to reduce the consumption of paper in the office. Further to this, the Agency was also an early adopter of the new methodology on record keeping to support greater efficiency and expediency in storing and accessing information as the Agency matures. In addition, FedDev Ontario has expanded its use of its executive correspondence system and leveraged its coordination and tracking tool capabilities.

Efforts were also made to spread awareness of the Agency's activities and increase its credibility through a variety of activities supported by the Communications Branch. Through its engagement with local communities and presence at various workshops, conferences, speaking events and funding announcements, FedDev Ontario's achievements were highlighted and communicated to a wider audience. The Agency's achievements were also reinforced through a variety of promotional materials aimed at augmenting the Agency's profile and supporting its outreach and engagement plan.

Since its creation, FedDev Ontario has worked to stabilize and engage its workforce and ensure a healthy and respectful workplace through transparent and timely decision making. In 2011-12, FedDev Ontario continued to support our qualified staff through an investment in learning as well as the standardization of HR processes and procedures including employee Performance Management Agreement and Personal Learning Plan development.

Changes to Government Structure

Impacts on Financial and Human Resources Resulting from the Establishment of Shared Services Canada

2011–12 Financial Resources ($ millions)
2011–12 Financial Resources ($ millions)
  Planned Spending Total AuthoritiesFootnote *
Footnotes

Footnote * Pursuant to section 31.1 of the Financial Administration Act and Orders in Council P.C. 2011-0881, P.C. 2011-0877 and P.C. 2011-1297, this amount was deemed to have been appropriated to SSC, which resulted in a reduction in the appropriation for FedDev Ontario. (Return to footnote * referrer)

Footnote ** Total authorities, as presented in the "2011–12 Financial Resources" table (and other relevant tables) in the "Summary of Performance" section, is the net of any transfers to SSC. Actual spending does not include expenditures incurred on behalf of SSC as of the OIC date. (Return to footnote ** referrer)

Net transfer post Orders in Council (OIC)Footnote ** to Shared Services Canada (SSC) 220.3 0.5
2011–12 Human Resources (FTE)
2011–12 Human Resources (FTE)
  Planned Actual
Deemed to SSCFootnote 12 215 0

Economic Action Plan Initiatives

The Economic Action Plan (EAP) was the Government of Canada's strategy to help ensure a quick recovery from the economic downturn by focusing on the creation of short-term employment to stimulate the economy and support communities and the sectors that contribute to their viability. The national plan included such initiatives as the $1 billion CAF and the $500 million RInC program. Under the EAP, FedDev Ontario was responsible for the delivery of CAF in southern Ontario, RInC for all of Ontario, and EODP. It should be noted that in 2009-10 and 2010-11, the Agency's core funding program, SODP, was also considered an EAP initiative. FedDev Ontario was also delivering the Building Canada Fund-Communities Component Top-Up, for all of Ontario, on behalf of Infrastructure Canada.

Through these initiatives, FedDev Ontario contributed to the stabilization of the southern Ontario economy while establishing the foundation for a prosperous future.

Community Adjustment Fund

CAF was a national economic stimulus initiative that supported projects that created jobs and maintained employment in and around communities that experienced significant job losses and lack alternative employment opportunities. Eighteen projects received an extension to October 31, 2011, and were to be delivered through the SODP.

Recreational Infrastructure Canada

Similarly to CAF, RInC also received an extension to the construction completion deadline from March 31, 2011, to October 31, 2011. Under RInC, FedDev Ontario administered the delivery of 757 projects that had been allocated up to $183 million in investments across multiple years in key community recreational assets and facilities. This federal investment, matched by the Province of Ontario, and the balance funded by recipients, leveraged more than $652 million in total projects costs. As part of the extension, $35 million was made available in 2011-12.

FedDev Ontario continued to work with recipients to close-out the RInC project files in this reporting period. To date, 755 RInC projects have been completed with more than 260 of these projects being completed in 2011-12. The remaining two recipients are committed to completing and funding the outstanding work in calendar year 2012.


Footnotes

  1. 5 The Total Authorities and Actual Spending for this program activity include the budget and expenditures for the Community Futures Program due to an expenditure tracking issue. Also, due to the multiple responsibility areas for employees under the SODP, the total salary budgets and expenditures for this program have been captured in this program activity. (back to footnote reference 5)
  2. 6 The Actual FTE total for this program activity includes all Community Futures Program FTEs to align with the expenditure tracking issue as detailed in the previous footnote. Also, due to the multiple responsibility areas for employees under the SODP, the total FTEs for this program have been captured in this program activity. (back to footnote reference 6)
  3. 7 As it is still very early in the performance measurement phase for the majority of contribution agreements, very few projects have yet to report sales information; only two projects from IBI have been included in the performance status. (back to footnote reference 7)
  4. 8 Global Advantage Consulting Group Inc. (2011). Southern Ontario key and emerging sectors, clusters and global opportunities. Paper commissioned by the Federal Economic Development Agency for Southern Ontario, Ottawa. (back to footnote reference 8)
  5. 9 The Total Authorities and Actual Spending for this program activity do not include the budget and expenditures for the Community Futures Program due to an expenditure tracking issue. Also, due to the multiple responsibility areas for employees under the SODP, the total salary budgets and expenditures for this program have been captured under the Business and Innovation Development program activity. (back to footnote reference 9)
  6. 10 The Actual FTE total for this program activity does not include Community Futures Program FTEs to align with the expenditure tracking issue as detailed in the previous footnote. Also, due to the multiple responsibility areas for employees under the Southern Ontario Development Program, the total FTEs for this program are not captured under this program activity. (back to footnote reference 10)
  7. 11 Reporting results for all active or closed projects in 2011-12 are included in the performance status. The Community Futures Program leveraged a significant amount of funding which increased the performance status. (back to footnote reference 11)
  8. 12 Due to a memorandum of understanding with Industry Canada for the provision of services appropriated to SSC, FedDev Ontario did not transfer any FTEs. (back to footnote reference 12)
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