Archived — Departmental Performance Report 2012–13

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Section I: Organizational Overview


Raison d'être

As Canada's most populous region—home to more than 12 million residents living in 288 communities—southern Ontario's economy is a key contributor to the health of the Canadian economy. The Government of Canada created the Federal Economic Development Agency for Southern Ontario (FedDev Ontario) with a five-year mandate, in 2009. Budget 2013 renewed FedDev Ontario for an additional five years, beginning April 2014. To fulfill its mandate, FedDev Ontario supports the competitiveness, innovation, and diversification of southern Ontario's economy by: delivering strategic investments to businesses, not-for-profit organizations and communities; establishing and strengthening collaborative partnerships with key economic stakeholders; and representing the region's interests at the federal, and national levels.

Responsibilities

FedDev Ontario is responsible for responding to southern Ontario's economic challenges to help restore the region to a position of prosperity and to place southern Ontario as an important driver in building a stronger Canadian economy.

Scope of Operations:

FedDev Ontario is headquartered in Kitchener and has offices throughout southern Ontario to support program delivery. Its mandate covers southern Ontario, as defined by the following 37 Statistics Canada census divisions:

  • Stormont, Dundas and Glengarry
  • Kawartha Lakes
  • Niagara
  • Middlesex
  • Prescott and Russell
  • Peterborough
  • Haldimand-Norfolk
  • Huron
  • Ottawa
  • Durham
  • Halton
  • Essex
  • Brant
  • Bruce
  • Leeds and Grenville
  • York
  • Waterloo
  • Grey
  • Lanark
  • Toronto
  • Perth
  • Simcoe
  • Frontenac
  • Northumberland
  • Hamilton
  • Peel
  • Oxford
  • Haliburton
  • Lennox and Addington
  • Dufferin
  • Elgin
  • Renfrew
  • Hastings
  • Wellington
  • Chatham-Kent
  • Prince Edward
  • Lambton
Figure 1 - Federal Economic Development Agency for Southern Ontario (FedDev Ontario) Catchment Area and Census Division (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 Statistic Canada's annual population estimates for 2010, southern Ontario has a population of more than 12 million people, representing 93.5 percent of Ontario's total population and 35.9 percent of the total population of Canada.

The 37 Statistics Canada census divisions of southern Ontario include the following:

Stormont, Dundas and Glengarry, Kawartha Lakes, Niagara, Middlesex, Prescott and Russell, Peterborough, Haldimand-Norfolk, Huron, Ottawa, Durham, Brant, Bruce, Leeds and Grenville, York, Waterloo, Grey, Lanark, Toronto, Perth, Simcoe, Frontenac, Peel, Oxford, Haliburton, Lennox and Addington, Dufferin, Elgin, Renfrew, Hastings, Wellington, Chatham-Kent, Prince Edward, Halton, Essex, Northumberland, Hamilton, Lambton.

According to Statistics Canada's annual population estimates for 2011, this area has a population of over 12 million, representing 93.5 percent of Ontario's total population and 35.9 percent of the total population of Canada.

Strategic Outcome and Program Alignment ArchitectureFootnote 1

FedDev Ontario's 2012–13 Program Alignment Architecture (PAA) was designed to support its strategic outcome by aligning the Agency's initiatives with its three external programs. With a focus on innovation, businesses, and communities, the Agency has maximized its impact through targeted investments, while maintaining transparency and accountability. FedDev Ontario's programs are designed to support strategic partnerships and enhance collaborations, while providing effective support to clients and the southern Ontario region. As FedDev Ontario's internal service areas support all program delivery activities, the Internal Services program is shown separately to reflect its horizontal nature within the Agency.

Figure 2 - Strategic Outcome: A Competitive Southern Ontario Economy (the long description is located below the image)
Description of Figure

A series of boxes are interconnected. The top box says, "Strategic Outcome: A Competitive Southern Ontario Economy. "This box connects to three others in a row beneath it. They read, "Program 1.1: Technological Innovation," "Program 1.2: Business Development" and "Program 1.3: Community Economic Development." Under the Program 1.1 box there are three boxes. They read, "Sub-Program 1.1.1: Science, Technology, Engineering and Mathematcs Awareness," "Sub-Program 1.1.2: Skills Development" and "Sub-Program 1.1.3: Technology Development and Commercialization." Under the Program 1.2 box there are two boxes. They read, "Sub-Program 1.2.1: Business Investment," and "Sub-Program 1.2.2: Business Productivity and Innovation." Under the Program 1.3 box there are four boxes. They read, "Sub-Program 1.3.1: Community Futures Program," "Sub-Program 1.3.2: Eastern Ontario Development Program," "Sub-Program 1.3.3: Official Language Minority Communities" and "Sub-Program 1.3.4: Infrastructure Delivery." There is a final box that sits beneath the entire table that reads, "Program 1.4: Internal Services."

Organizational Priorities

Organizational Priority #1
Priority Type Programs
Enhancing Collaboration and Strengthening Partnerships Previously committed to
  • Program 1.1 — Technological Innovation
  • Program 1.2 — Business Development
  • Program 1.3 — Community Economic Development
Summary of Progress

What progress has been made towards this priority?

  • In June 2012, a series of roundtable sessions were led by local Members of Parliament to discuss stakeholders' experiences working with the Agency to date and solicited input on what areas FedDev Ontario's future activities could address.
  • In 2012–13, FedDev Ontario continued to engage with stakeholders, including potential partners, other levels of government, the private sector, universities and colleges, and the not-for-profit sector, to gather feedback on the economic development needs in southern Ontario and the Agency's role in the region.
  • FedDev Ontario has supported a number of partnerships and leveraged funds from the private sector that have contributed to larger projects with greater potential for positive results and impacts. For example, as of March 2013, FedDev Ontario supported almost 3,000 partnerships between organizations through its Southern Ontario Advantage (SOA) initiatives.
  • The Agency has advanced its relationships with private sector investors to enhance the effectiveness of its SOA initiatives and accelerate results through shared funding ventures and risk. Ongoing support for collaboration among post-secondary institutions and highly-specialized enterprises, such as those in the high-tech sector, has also spurred next-generation technology development.
  • The Agency continued to use third party delivery as a streamlined approach to the efficient and effective management of contributions when projects involve a large number of recipients. For instance, as of March 2013, almost 1,800 small- and medium-sized enterprises (SMEs) were successfully supported through the Agency's SOA initiatives and partners such as Yves Landry Foundation and Canadian Manufacturers and Exporters (SMART Program). More than 2,200 SMEs were created, expanded, or maintained through the Agency's Community Futures Program (CFP).
Organizational Priority #2
Priority Type Programs
Excellence in Innovative Programming New
  • Program 1.1 — Technological Innovation
  • Program 1.2 — Business Development
  • Program 1.3 — Community Economic Development
Summary of Progress

What progress has been made towards this priority?

  • FedDev Ontario used partnerships and investments to continue its support for innovation and business development through its Southern Ontario Development Program (SODP) and related SOA initiatives. In 2012–13, the Agency invested $125 million in 113 new projects through SODP, for a multi-year total of 335 new projects, as of March 31, 2013.
  • Through the implementation of a new performance measurement strategy for SODP the Agency was able to refine shorter- and longer-term outcomes for its SOA initiatives, increasing the effectiveness of the assessment of their performance.
  • FedDev Ontario continued to implement enhancements to CFP, including the introduction of a performance-based funding model for all Community Futures Development Corporations (CFDCs) who receive funding through CFP.
  • The Agency implemented a research plan to assess the current drivers of economic development and determine which issues were relevant to southern Ontario to help direct Agency programs and priorities. Community economic profiles were also produced to support the review and development of projects.
Organizational Priority #3
Priority Type Programs
Optimizing Processes and Systems Previously committed to
  • Program 1.4 — Internal Services
Summary of Progress

What progress has been made towards this priority?

  • In 2012–13, FedDev Ontario worked to improve its financial management and accountability across the Agency. It strengthened its financial forecasting and monitoring activities and introduced a new desktop financial management system to enable managers to improve budget tracking and budget management.
  • The Agency also reviewed its internal activities and processes; established an internal control framework and corresponding action plan to improve service delivery; and addressed gaps, while reducing the potential for risk.
  • FedDev Ontario supported the early adoption of several Government of Canada initiatives including the Directive on Recordkeeping and initiated the implementation of the Government of Canada's standardized records management system (GCDOCS) to support the streamlining of records management. In 2012–13, 35 percent of Agency employees were migrated to the new system.
  • The Agency also adopted technological solutions including tablets, laptop computers and wireless phones for staff to make ongoing operations more flexible and efficient. Environmentally friendly office practices, including printer consolidation and a wireless asset tracking system to reduce paper consumption, were further efforts towards more efficient and effective internal operations.
  • To improve the efficiency of staffing procedures, the Agency undertook a series of innovative initiatives designed to streamline tools, enhance collaboration and communication with staff, and reduce duplication of effort.
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Risk Analysis

FedDev Ontario has developed the following risk response strategies relative to risks associated with core program(s) and administration, performance measurement and reporting.

Risk Analysis
Risk Risk Response Strategy Link to PAA Link to Organizational Priorities

Core Program(s) and Administration

Risks associated with the design and delivery of key programs, through their life cycle, in support of the achievement of the Agency's overall objectives.

  • Launch Program Policy and Program Procedures guides to facilitate proposal assessments/due diligence and to provide ongoing support to program officers.
  • Evaluate the project tools to ensure they are relevant, effective and efficient.
  • Utilize third party delivery to manage contributions when projects involve large numbers of recipients.
  • Implement risk assessment training for Agency staff.
  • Implement a risk-based monitoring approach and site visits.
  • Make advancements towards implementing a Client Relationship Management (CRM) System.

Strategic Outcome: A competitive southern Ontario economy

Programs: Technological Innovation; Business Development; Community Economic Development; Internal Services

Enhancing collaboration and strengthening partnerships; Excellence in innovative programming; Optimizing processes and systems

Performance Measurement and Reporting

Risks associated with the measurement, tracking and reporting of performance and results achieved for both programs, and the Agency overall.

  • Conduct research of best practices and solutions in other jurisdictions.
  • Develop methodologies for validation, multiple measures/lines of evidence, and implement third party attestation for select outcome measures.
  • Develop and implement benchmarks for comparative analysis of efficiency and value for money.
  • Improve data definitions and instructions to clients on information requirements.
  • Conduct periodic audits to assess quality and validity of information.
  • Consolidate and unify systems and tools for data collection and reporting including the development and/or acquisition of system(s) for online, self-serve data entry.

Strategic Outcome: A competitive southern Ontario economy

Programs: Technological Innovation; Business Development; Community Economic Development; Internal Services

Enhancing collaboration and strengthening partnerships; Excellence in innovative programming; Optimizing processes and systems

External Risk Environment

The shifting business environment (driven by fluctuations in interest rates, the variability of markets and the evolving global economy) presented ongoing external challenges for FedDev Ontario's 2012–13 activities. Combined with changes in communities and in the region, as well as across other levels of government, the Agency had to remain nimble and responsive to ensure its programs remained effective and attractive to potential funding recipients.

The Agency also needed to overcome additional risks, including a lack of available key economic data at the sub-provincial level; the inherent trade-offs between having timely data and having objective, reliable economic data; and the dollar materiality of FedDev Ontario's program funding relative to the southern Ontario economy.

Additional external risks to the Agency were due to the continued reliance on external service providers for information technology (IT) support and infrastructure; the lack of reliable and timely program and/or performance information from partners and third parties; and the potential for Agency programming to overlap/duplicate the objectives of other federal or provincial initiatives.

Internal Risk Environment

To date, FedDev Ontario's program delivery priorities have focused on securing commitments, entering into agreements, expenditure management, and the administration of claims and repayable contributions, with less emphasis on impact measurement in its initial years. Furthermore, the timing of program launches and receipt of proposals, along with the need to quickly deliver funding, underpinned internal risk issues within the Agency.

The maturation of the Agency has also presented challenges in its early years, as FedDev Ontario had to establish its internal service areas (financial, human resources, IT) while simultaneously developing and refining its external funding programs. With these programs still in the first years of implementation, they have not had sufficient time to mature to the point of measuring significant outcomes.

FedDev Ontario has also found it challenging to identify appropriate macroeconomic performance indicators and targets that accurately reflect the impact of its programs and activities on southern Ontario given the size of its investments relative to that of the economy of the region. Consequently, the Program-level performance results in Section II of this document cannot be directly attributed to the programs and activities of the Agency as the results are influenced by multiple economic factors. The Agency continues to work towards strengthening its performance measurement framework to improve demonstration of results and articulate FedDev Ontario's impact on southern Ontario.

Summary of Performance

Financial Resources — Total Departmental ($ millions)
Total Budgetary Expenditures
(Main Estimates)
2012–13
Planned Spending
2012–13
Total Authorities
(Available for Use)
2012–13
Actual Spending
(Authorities Used)
2012–13
Difference
(Planned vs. Actual
Spending)
218.8 218.8 262.8 241.7 (22.9)
Human Resources (Full-Time Equivalents [FTEs])
Planned
2012–13Footnote 2
Actual
2012–13
Difference
2012–13
224.0 225.5 (1.5)
Performance Summary Table for Strategic Outcome and Programs ($ millions)
Strategic Outcome: A competitive southern Ontario economy
Program Total
Budgetary
Expenditures
(Main
Estimates
2012–13)
Planned Spending Total
Authorities
(Available
for Use)
2012–13
Actual Spending
(Authorities Used)
Alignment
to
Government
of Canada
Outcomes
2012–
13
2013–
14
2014–
15
2012–
13
2011–
12
2010–
11
Technological Innovation 51.0 51.0 62.8 - 56.7 56.6 28.8 3.2 An Innovative and Knowledge-
Based Economy
Business Development 118.5 118.5 90.4 - 131.6 131.5 131.7 74.8 Strong Economic Growth
Community Economic Development 34.5 34.5 55.4 14.9 54.7 34.6 51.3 308.5 Strong Economic Growth
Sub-Total 204.0 204.0 208.6 14.9 243.0 222.7 211.8 386.5  
Performance Summary Table for Internal Services ($ millions)
  Total
Budgetary
Expenditures
(Main
Estimates
2012–13)
Planned Spending Total
Authorities
(Available
for Use)
2012–13
Actual Spending
(Authorities Used)
2012–
13
2013–
14
2014–
15
2012–
13
2011–
12
2010–
11
Internal Services 14.8 14.8 14.2 0.5 19.8 19.0 18.6 19.1
Sub-Total 14.8 14.8 14.2 0.5 19.8 19.0 18.6 19.1
Total Performance Summary Table ($ millions)
  Total
Budgetary
Expenditures
(Main
Estimates
2012–13)
Planned Spending Total
Authorities
(Available
for Use)
2012–13
Actual Spending
(Authorities Used)
2012–
13
2013–
14
2014–
15
2012–
13
2011–
12
2010–
11
Strategic Outcome and Internal Services 218.8 218.8 222.8 15.4 262.8 241.7 230.4 405.6
Total 218.8 218.8 222.8 15.4 262.8 241.7 230.4 405.6

In 2012–13, FedDev Ontario committed to supporting a competitive southern Ontario economy through its suite of innovative programming and its engagement with stakeholders, including clients, not-for-profit organizations and post-secondary institutions. The Agency's planned spending amount of $218.8 million was augmented during the 2012–13 fiscal year as a result of the implementation of Budget 2012 initiatives and in-year funding decisions. Specifically, FedDev Ontario received an additional $24.8 million in grants and contributions (G&C) funds for the newly-launched Community Infrastructure Improvement Fund (CIIF),Footnote 3 as well as a one-time G&C increase of $23 million to SODP.Footnote 4 In addition, the Agency restructured its organization and made strategic investments to improve efficiency. These actions contributed to a net increase of $44 million to the Agency's total authorities resulting in a total of $262.8 million in authorities, of which the Agency spent $241.7 million (92 percent). The difference between actual spending and total authorities is driven primarily by the $19.8 million in unspent funds for CIIF given its mid-year launch.

The majority of FedDev Ontario's expenditures in 2012–13 continued to be through contribution agreements across its numerous transfer payment programs. The multi-year nature of these programs and the varying timelines for project completion resulted in planned and actual spending that can fluctuate across fiscal years. The Agency provided over $212 million in transfer payment program funding to recipients in 2012–13 with the majority ($181.3 million) delivered through SODP and its seven SOA initiatives. The remaining funds were provided through CFP ($11.2 million), the Eastern Ontario Development Program (EODP) ($13.2 million), CIIF ($5.0 million), the Economic Development Initiative (EDI) ($0.9 million) and to the City of Brantford ($0.5 million). For more information on transfer payment programs, please consult the Details on Transfer Payment Programs Supplementary Table (Section III).

Expenditure Profile

Departmental Spending Trend

Figure 3 - Departmental Spending Trend (the long description is located below the image)
Description of Figure

A bar graph displays the progression of spending at FedDev Ontario from 2012–12 to 2012–13 in millions of dollars. For the year 2012–12, the bar indicating Main Estimates reaches 220.3 million; the bar indicating Planned Spending reaches 220.3 million; the bar indicating Total Authorities reaches 278.7 million; and the bar indicating Actual Spending reaches 230.4 million

For the year 2012–13, the bar indicating Main Estimates reaches 218.8 million; the bar indicating Planned Spending reaches 218.8 million; the bar indicating Total Authorities reaches 262.8 million; the bar indicating Actual Spending reaches 241.7 million.

Departmental Spending Trend ($ Millions)
Fiscal Year Spending Trend
Main Estimates Planned Spending Total Authorities Actual Spending
2011-12 220.3 220.3 278.7 230.4
2012-13 218.8 218.8 262.8 241.7

The chart above demonstrates the relative consistency of FedDev Ontario's planned spending, total authorities and actual spending over the last two fiscal years as it has worked to stabilize its program delivery and maximize the efficient use of funds. The increase from the original planned spending amount for 2012–13 was due to the provision of in-year funding for CIIF and the one-time top up to SODP. The Agency's actual spending increased year-over-year, resulting in a spend rate of 92 percent of total authorities in 2012–13 compared to 82.7 percent in 2011–12.

Estimates by Vote

For information on FedDev Ontario's organizational votes and/or statutory expenditures, please see the Public Accounts of Canada 2013 (Volume II). An electronic version of the Public Accounts 2013 is available on the Public Works and Government Services Canada website.Footnote i

Strategic Environmental Assessment

During 2012–13, FedDev Ontario considered the environmental effects of initiatives subject to the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program ProposalsFootnote ii. Through the strategic environmental assessment (SEA) process, departmental initiatives were found to have no positive and/or negative environmental effects on goals and targets in theme(s) I — Addressing Climate Change and Air Quality; II — Maintaining Water Quality and Availability; III — Protecting Nature; and IV — Shrinking the Environmental Footprint — Beginning with Government.

Footnotes

Footnote 1

This language has been updated from the 2012–13 Report on Plans and Priorities. Specifically: "Program Activity Architecture" became "Program Alignment Architecture"; "Program Activity" became "Program"; and "Sub-Activity" became "Sub-Program."

Return to footnote 1 referrer

Footnote 2

Originally reported as 216 in FedDev Ontario's 2012–13 Report on Plans and Priorities.

Return to footnote 2 referrer

Footnote 3

This increase is reflected in the Total Authorities for the Community Economic Development Program (Section II).

Return to footnote 3 referrer

Footnote 4

This increase is reflected as part of the Total Authorities for the Technological Innovation and Business Development Programs (Section II).

Return to footnote 4 referrer

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