Archived — Departmental Performance Report 2011-12

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Section III: Supplementary Information

Financial Highlights

The results presented in FedDev Ontario's 2011-12 financial statements reflect the Agency's suite of programming and support services arranged under the four program activities, Business and Innovation Development, Economic Regional Development and Infrastructure, Policy, Advocacy and Coordination and Internal Services, as shown in its 2011-12 PAA. These financial statements have been prepared by management in accordance with Treasury Board accounting policies, which are based on Canadian generally accepted accounting principles for the public sector.

As shown in the table below, FedDev Ontario saw a significant decrease in its total net financial assets, liabilities and total expenses in 2011-12 when compared to 2010-11. These figures are largely driven by the conclusion of Canada's EAP funding and the sunsetting of other programs at the end of 2010-11 for which the Agency was responsible. This reduction in programming resulted in a decrease of $314.4 million in the total authorities year-over-year.

In 2011-12, FedDev Ontario continued to work primarily as a transfer payment (G&C) organization and establish itself as a viable partner in advancing the competitiveness and diversification of the southern Ontario economy. In cooperation with business, potential investors, PSIs and not-for-profit organizations, the Agency provided funding to eligible recipients through its main funding vehicle, the SODP, with the continued focus of supporting innovation, commercialization and productivity in the region both in 2011-12 and into the future.

Condensed Statement of Financial Position (Unaudited)
As at March 31, 2012
($ thousands)
  Change 2011–12 2010–11
Total net liabilities (78,423) 112,347 190,770
Total net financial assets (79,075) 109,219 188,294
Departmental net debt (652) (3,128) (2,476)
Total non-financial assets 7 183 176
Departmental net financial position (645) (2,945) (2,300)
Condensed Statement of Operations and Departmental Net Financial Position (Unaudited)
For the Year Ended March 31, 2012
($ thousands)
  Change % 2011–12 2010–11
Total expenses (43) 195,991 341,698
Total revenues - 3 -
Net cost of operations before government funding and transfers (43) 195,988 341,698
Departmental net financial position 28 (2,945) (2,300)

Financial Highlights—Charts and Graphs

Total Net Liabilities

Total net liabilities at the end of 2011-12 were $112.3 million – a decrease of $78.4 million compared to 2010-11. The majority of the decrease was in accounts payable to external recipients due in large part to the decrease in programming related to the close-out of EAP and the sunsetting of other programs at the end of 2010-11. Accounts payable to other government departments and agencies, accrued liabilities and liabilities for vacation leave, compensatory leave and employee future benefits make up the remainder of the total and were relatively minor amounts in comparison. Year-over-year, these amounts did not experience any material changes to report on.

Net Liabilities
Net Liabilities Percentage
Accounts payable - Other government departments and agencies 0.4%
Accounts payable – External 96.6%
Accrued liabilities 0.1%
Vacation pay and compensatory leave 0.7%
Employee future benefits 2.2%
Total 100%

Total Net Financial AssetsFootnote 13

Total net financial assets were $109.2 million in 2011-12, which was a decrease of $79.1 million compared to the total for 2010-11. This figure consists primarily of amounts due from the Consolidated Revenue Fund and excludes all loans receivable by the Agency as this amount is captured as part of the gross financial assets in the larger Financial Statement document. The decrease in the amount due from the Consolidated Revenue Fund is tied to the reduction in accounts payable to external recipients, as detailed above.

Total Non-Financial Assets

Total non-financial assets in 2011-12 are $184,000 for the Agency – an increase of $7,000 over 2010-11. This increase relates to the acquisition of two new motor vehicles for the Agency as part of the refresh of its existing capital, which is offset by the standard depreciation and disposition of other assets.

Total Expenses

Total expenses in 2011-12 were $196.0 million, which was a decrease from $341.7 million in 2010-11. As above, this decrease is also largely due to the close-out of the EAP and the sunsetting of other programs, which resulted in a reduction of FedDev Ontario's total authorities and actual spending in 2011-12.

Expenses by Program Activity

The chart below shows how FedDev Ontario continued to focus its attention on improving the economic competitiveness and diversification of the southern Ontario economy in 2011-12. The expenses incurred by the SODP, as the primary transfer payment vehicle, were distributed between the Business and Innovation Development and Economic Regional Development and Infrastructure Program Activities, which explain why these program activities make up the majority of total expenses in 2011-12.

Figure 4: Pie Chart – Expenses by Program Activity (the long description is located below the image)
Description of Figure

A pie chart summarizing FedDev Ontario's expenses in 2011-12 by program activity. Business and Innovation Development is 71%; Economic Regional Development and Infrastructure is 19%; Policy, Advocacy and Coordination is 2%; and Internal Services is 8%.

Expenses by Type

The chart below summarizes FedDev Ontario's expenses in 2011-12 by type. As the Agency continued to provide support to businesses and communities primarily through transfer payments (G&C) in this fiscal year, they continue to make up the largest expense type.

Figure 5: Pie Chart – Expenses by Program Type (the long description is located below the image)
Description of Figure

A pie chart summarizing FedDev Ontario's expenses in 2011-12 by type. Transfer payments is 83%; salary and employee benefits is 12%; and other operating expenses is 5%.

Total Revenues

Total revenue of $3,000 was incurred in 2011-12, and relate to a gain on sale of a capital asset. The Agency did not realize any other revenues in 2010-11.

Financial Statements

FedDev Ontario Financial Statements (Unaudited) — For the Year Ended March 31, 2012Footnote iii

List of Supplementary Information Tables

Electronic supplementary information tables listed in the 2011–12 Departmental Performance Report can be found on FedDev Ontario's websiteFootnote iv.


Footnotes

  1. 13 Note: Excluded from the net financial assets, but included in the gross financial assets (included as part of the Financial Statements document linked below) are loans receivable. For 2011-12, this balance at year end was $84.2 million, an increase of $2.9 million over 2010-11. Loan balances are incurred through the execution of repayable contribution agreements among the SODP General Intake Initiative, Innovation and Business Initiative, the Prosperity Initiative and the Community Adjustment Fund. As projects under these initiatives are still ongoing, only a portion of the existing loan portfolio is in the repayable stage. These loan balances are also net of discounting for allowance for doubtful accounts and for discounted cash flows. These policies were implemented during the 2011-12 fiscal year, and not reflected in the 2010-11 balances. (back to footnote reference 13)
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