Archived — 2014–15 Report on Plans and Priorities

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Section I: Organizational Expenditure Overview

Organizational Profile

Minister: The Honourable James Moore

Minister of State: The Honourable Gary Goodyear

Deputy Head: Karen Ellis (President)

Ministerial portfolio: Industry

Year established: 2009

Main legislative authorities:

Order in Council P.C. 2009–1410 dated August 13, 2009, amending Schedule I.1 of the Financial Administration ActFootnote v to include the Federal Economic Development Agency for Southern Ontario as a department.

Order in Council P.C. 2009–1411 dated August 13, 2009, whereby the department of Industry transferred to the Federal Economic Development Agency for Southern Ontario the control and supervision of the portion of the federal administration in the department of Industry known as the Southern Ontario Regional Economic Branch.

Organizational Context

Raison d'être

As Canada's most populous region — home to more than 12 million residents living in 288 communities — southern Ontario is a key contributor to the Canadian economy. In 2009, the Government of Canada created the Federal Economic Development Agency for Southern Ontario (FedDev Ontario) to support the competitiveness, innovation, and diversification of southern Ontario's economy. To fulfill its mandate, the Agency will continue to deliver strategic investments to businesses, not-for-profit organizations and communities; establish and strengthen collaborative partnerships with key economic stakeholders; and represent the region's interests at the national level.

FedDev Ontario's mandate was renewed in Budget 2013 for another five years with an investment of $920 million between 2014–2019 allowing the Agency to continue to apply its various roles (co-investor, convener, champion and a delivery agent for national programs) to support jobs, growth and long-term prosperity in southern Ontario.

The Minister of State for the Federal Economic Development Agency for Southern Ontario is responsible for this organization.

Responsibilities

FedDev Ontario is responsible for promoting the development of a strong, prosperous and diversified southern Ontario economy. In 2014–15, the Agency will build on its solid foundation to continue to provide benefits to Canadians through innovative programs targeted to businesses, communities, post-secondary institutions and other intermediaries.

Scope of Operations

FedDev Ontario is headquartered in Kitchener and has offices throughout the region 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 Divisions (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 Statistics Canada's annual population estimates for 2013, southern Ontario has a population of more than 12 million people, representing 94 percent of Ontario's total population and 36.3 percent of the total population of Canada.

According to Statistics Canada's annual population estimates for 2013, this area has a population of over 12 million, representing 94 percent of Ontario's total population and 36.3 percent of Canada's total population.

Strategic Outcome and Program Alignment Architecture (PAA)

Strategic Outcome: A Competitive Southern Ontario Economy

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Organizational Priorities

Organizational Priorities—Supporting Innovation and Commercialization
Priority TypeFootnote 2 Strategic Outcome and Program
Supporting Innovation and Commercialization New
  • Strategic Outcome: A competitive southern Ontario economy
  • Program 1.1 — Technological Innovation
Description

Why is this a priority?

  • The Government of Canada has invested significantly in building strong research capacity in post-secondary institutions. However, more must be done to ensure businesses can leverage this capacity and expertise to allow for a greater return on federal investments, position businesses to be more innovative, and to commercialize more ideas.
  • Increased collaboration among businesses, post-secondary institutions and research organizations can accelerate progress from innovative ideas to commercialization.
  • The manufacturing sector is a major contributor to Canada's economy, employing more than 1.7 million Canadians, of which nearly 800,000 live in Ontario. It also accounts for half of the business research and development (R&D) in Canada. Increasing the competitiveness and prosperity of Ontario's manufacturing sector requires greater focus on creating new and innovative products or production methods.
  • Increasingly, various organizations are seeking support from the Agency to encourage the building of partnerships across various players and sectors to spur market-relevant innovation.

What are the plans for meeting this priority?

  • The Agency's Investing in Commercialization Partnerships (ICP) initiative will provide funding to post-secondary institutions to help them establish more partnerships with businesses—with a focus on larger collaborations—leading to the commercialization of products and services.
  • Through the Advanced Manufacturing Fund (AMF), the Agency will provide targeted support for manufacturing firms and post-secondary and/or research institutions throughout Ontario, to support the development of new and innovative products or production methods.
  • In addition to programmatic investments, the Agency will also convene meetings, roundtables and/or summits establishing and facilitating connections and partnerships that yield concrete action.
Organizational Priorities—Fostering Business Growth
Priority Type Strategic Outcome and Program
Fostering Business Growth New
  • Strategic Outcome: A competitive southern Ontario economy
  • Program 1.2 — Business Development
Description

Why is this a priority?

  • The competitiveness of southern Ontario businesses is increasingly dependent on achieving greater scale, improving productivity, growing their markets and integrating themselves into global value chains. However, many businesses are not taking the opportunity to make the investments needed to achieve these objectives.
  • The sustained growth of new businesses and entrepreneurs is hindered by challenges in accessing capital and developing the necessary business skills to grow and commercialize. The success of these businesses to innovate and create high-quality jobs drives the long-term competiveness of the region, and Canada overall.

What are the plans for meeting this priority?

  • The Agency's Investing in Business Growth and Productivity (IBGP) initiative will support economic growth and job creation by helping businesses increase capacity, expand facilities, diversify markets, and adopt new technologies and processes to improve productivity.
  • To help foster a more competitive southern Ontario economy, the Investing in Business Innovation (IBI) initiative will focus on providing business support to new entrepreneurs, helping them to transform their ideas into globally-competitive products and services, and increasing their access to private sector investment and advice.
  • The web presence, call centre and outreach activities of Canada Business Ontario (CBO), which was transferred from Industry Canada to FedDev Ontario in 2013, will allow the Agency to provide southern Ontario businesses with a "concierge service" to help access business support tools.
Organizational Priorities—Strengthening Communities
Priority Type Strategic Outcome and Programs
Strengthening Communities New
  • Strategic Outcome: A competitive southern Ontario economy
  • Program 1.2 — Business Development
  • Program 1.3 — Community Economic Development
Description

Why is this a priority?

  • A number of southern Ontario communities face specific economic challenges such as high unemployment and low economic diversity. These communities need assistance to leverage their unique assets to attract new investment and opportunities for economic growth and development.

What are the plans for meeting this priority?

  • The Agency's Investing in Regional Diversification (IRD) initiative will bring not-for-profit organizations and private sector/community partners together to help develop ways to create competitive and resilient communities able to respond to challenges.
  • FedDev Ontario will continue its delivery of national federal programs that support community economic development, including the Economic Development Initiative (EDI) and the Community Futures Program (CFP).
  • The Agency will continue its delivery of the Eastern Ontario Development Program (EODP) in order to address economic challenges in eastern Ontario and take advantage of innovative opportunities in the region and a greater focus on long-term, strategic investments thanks to the Program's five year renewal.
  • FedDev Ontario will continue to work with Infrastructure Canada, the Province of Ontario and communities to support the infrastructure needs within southern Ontario based on the premise that strong, safe and modern communities are essential building blocks for the region's competitiveness.
Organizational Priorities—Convening and championing within and for southern Ontario
Priority Type Strategic Outcome and Programs
Convening and championing within and for southern Ontario New
  • Strategic Outcome: A competitive southern Ontario economy
  • Program 1.2 — Business Development
  • Program 1.4 — Internal Services
Description

Why is this a priority?

  • The contribution of any regional development agency (RDA) to achieving positive economic outcomes can be realized not only through co-investing in projects, but also through its influence and leadership in bringing diverse organizations together to collaborate on common issues that are critical the region.
  • Successful interventions broaden awareness of the Agency and its programs, and allow for the more efficient and effective delivery of co-investments through enhanced networks and stronger project proposals. Collaborations also extend to working with other regional development agencies (RDAs) on common issues of benefit to Canada.
  • The Agency is also a champion for the region. This means ensuring the government in Ottawa understands the needs and opportunities in the region and that our various partners understand broad government priorities and what the whole of the federal government has to offer in terms of the range of programs and services that are available to people, communities and businesses across the country.

What are the plans for meeting this priority?

  • To complement its co-investor activities, FedDev Ontario will continue to act as a champion for the region through its involvement in the Industrial and Regional Benefits (IRB) Policy. Our work with Industrial Regional Benefits is a testament to seeing a need in the region, and working to fill a gap to better support our businesses, communities and people. The Agency will represent southern Ontario interests by continuing its involvement in the development of national procurement opportunities and by promoting the capabilities of southern Ontario companies to contractors with IRB obligations.
  • The Agency will also maintain ongoing partnerships with key stakeholders within the region, including other federal departments, the provincial government, municipalities, official language minority communities and First Nations to support investments in public infrastructure priorities across all of Ontario. Additionally, the Agency will continue to deliver strategic projects of federal interest and other programming as required.
  • By convening key regional stakeholders, the Agency will encourage the development of better and more coordinated plans that will help to improve local, regional, provincial and national economic conditions. For example, hard hit areas will be a particular focus for the Agency in terms of creating partnerships and encouraging project proposals that can contribute to a sustained recovery in these communities.
Organizational Priorities—Continuing to Strengthen our Internal Support Services
Priority Type Strategic Outcome and Program
Continuing to Strengthen our Internal Support Services New
  • Strategic Outcome: A competitive southern Ontario economy
  • Program 1.4 — Internal Services
Description

Why is this a priority?

  • Streamlining processes and finding efficiencies in back office functions is critical to FedDev Ontario's ability to provide continuous support for southern Ontario while maximizing resources.
  • With its renewed mandate and the launch of new programming, the Agency will need strong support from its internal services to facilitate and enable timely and effective program delivery and client service.

What are the plans for meeting this priority?

  • FedDev Ontario will look to leverage expertise across its internal support services and identify opportunities for collaboration and synergy to better integrate its activities.
  • The Agency will continue to collaborate with other regional development agencies (RDAs) on horizontal matters to share information and insights and reduce duplication of effort with the goal of strengthening the collective position of regional development agencies (RDAs) as a whole at the federal level.
  • FedDev Ontario will continue to evolve and integrate its planning and reporting activities to better measure its performance in the context of southern Ontario and support greater accountability.
  • The Agency will work to implement greening efforts to increase operational efficiencies. For example, FedDev Ontario is one of the first wave of departments and agencies that are implementing GCDOCS—an internal information management system.

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Risk Analysis

Key Risks
Risk Risk Response Strategy Link to Program Alignment Architecture
IT Systems Integration—There is a risk that IT systems and infrastructure may be insufficient to support client/user needs and program/business processes, which could limit the availability of accurate and relevant information.
  • Maintain ongoing discussions with Industry Canada (the Agency's IT service provider) to improve IT systems integration.
  • Work collaboratively with other regional development agencies and Treasury Board Secretariat to identify common business requirements needed to implement a common client relationship and case management solution for small departments and agencies.
  • Identify cross-agency initiatives to develop strategies to improve collection, storage and use of data.
  • Program 1.4—Internal Services
Outcomes Assessment Processes—There is a risk that the Agency may have difficulty demonstrating project/ program outcomes without continued enhancement of our performance assessment and data collection techniques.
  • Utilize multiple methodologies for validating performance measures/lines of evidence, along with implementing third-party attestation for select outcome measures.
  • Conduct benchmarking research on key economic indicators (e.g. competitiveness, productivity, innovation).
  • Implement and monitor newly developed Performance Measurement Strategy (PMS) to support new initiatives.
  • Identify appropriate data to be captured to support program evaluations and impact analysis and improve data collection methodology.
  • Program 1.1—Technological Development
  • Program 1.2—Business Development
  • Program 1.3—Community Economic Development
  • Program 1.4—Internal Services
Forecasting Gs&Cs Programs—There is a risk that the level of forecasted Gs&Cs financial information may limit the Agency's ability to accurately plan while maintaining effective client relationships.
  • Respect the monitoring strategy adopted by the Agency that requires all active projects to be monitored according to approved policy.
  • Improve internal training, communication and documentation for forecasting purposes across the Agency.
  • Program 1.1—Technological Development
  • Program 1.2—Business Development
  • Program 1.3—Community Economic Development
Human Resources — There is a risk that the Agency may experience challenges in managing frequent short-term and temporary staffing needs, given an employee demographic that is unique to the Public Service.
  • Provide ongoing standardization of all staffing processes and improved tools to support the appropriate amount of rigour in staffing.
  • Provide internal/external information sessions for candidates and utilize multiple methods of job advertisement using new technologies.
  • Utilize the recently developed Talent Management Strategy and Performance Management Directive to support continuous workforce improvement.
  • Program 1.4—Internal Services
Capacity—Without additional funding there is a risk that FedDev Ontario may not have the capacity to deliver new national programs while also continuing to deliver its current level of service.

To attempt to mitigate this risk, the Agency will take the following actions:

  • Consolidate support services for Gs&Cs delivery to improve efficiency and standardize processes.
  • Incorporate strategic use of third-party delivery mechanisms for small-value projects with multiple ultimate recipients has been incorporated in proposed new initiatives.
  • Adhere to external service standard pledge and draft website FAQs to be adopted in support of the new initiatives.
  • Program 1.1—Technological Development
  • Program 1.2—Business Development
  • Program 1.3—Community Economic Development
  • Program 1.4—Internal Services

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Internal Risk Analysis

FedDev Ontario's corporate risks were determined through the application of a rigorous, consultative process intended to provide a systematic view of the risks faced in the course of carrying out its objectives and achieving its mandate. Consultations identified five risks: IT systems integration, outcomes assessment processes, forecasting grants and contributions programs, human resources, and capacity.

External Risk Analysis

Despite improved economic growth forecasts in the near term, southern Ontario continues to face a number of critical domestic economic challenges, as well as risks stemming from circumstances beyond its borders. Immediate regional challenges include particularly high household debt and pockets of high unemployment. Relatively low levels of spending by Ontario-based companies to purchase machinery and equipment and to undertake R&D activities are also limiting regional competitiveness and prosperity.

Southern Ontario must improve its productivity performance and boost innovation to compete with the world's diverse and highly-productive economies. The region is progressively dependent on higher value-added and higher-skilled activities in the service and manufacturing sectors. Regional prosperity will increasingly rely on southern Ontario's capacity to innovate, develop a highly-skilled labour force, invest in capital that supports higher value-added activities, build collaborative partnerships among its key stakeholders and reach international markets. The region also faces challenges relating to the rising costs of production. The Agency's ability to influence these areas is very limited.

Furthermore, as an export-oriented economy, southern Ontario is exposed to global economic risks. While the United States economy is demonstrating improved growth, uncertainty persists while global economic growth has also moderated in recent years. In Europe, high levels of unemployment and public sector debt are challenging economic recovery.

Planned Expenditures

Budgetary Financial Resources (Planned Spending—dollars)
2014–15
Main Estimates
2014–15
Planned Spending
2015–16
Planned Spending
2016–17
Planned Spending
206,764,115 206,764,115 198,721,418 208,269,408
Human Resources (Full-time equivalents—FTEs)
2014–15 2015–16 2016–17
227 227 227
Budgetary Planning Summary for Strategic Outcome and Programs (dollars) Footnote 3
Budgetary Planning Summary for Strategic Outcome and Programs (dollars)
Strategic Outcome, Programs and Internal Services 2011–12
Expenditures
2012–13
Expenditures
2013–14
Forecast Spending
2014–15
Main Estimates
2014–15
Planned Spending
2015–16
Planned Spending
2016–17
Planned Spending
Strategic Outcome: A competitive southern Ontario economy
Technolo-
gical Innovation
28,789,670 56,576,259 59,443,539 79,171,993 79,171,993 79,154,516 79,132,992
Business Develop-
ment
131,711,291 131,523,159 92,819,201 77,643,433 77,643,433 77,626,294 77,605,186
Community Economic Develop-
ment
51,314,065 34,609,151 76,194,217 34,102,802 34,102,802 26,098,219 35,693,150
Strategic Outcome
Subtotal
211,815,026 222,708,569 228,456,957 190,918,228 190,918,228 182,879,029 192,431,327
Internal Services
Subtotal
18,644,782 19,012,398 18,636,431 15,845,887 15,845,887 15,842,389 15,838,081
Total 230,459,808 241,720,967 247,093,388 206,764,115 206,764,115 198,721,418 208,269,408

Fiscal year 2014–15 marks the first year of the five-year renewal of FedDev Ontario as per Budget 2013. In support of its strategic outcome, the Agency's financial resources for 2014–15 total $206.8 million, of which $177.6 million is allocated for Gs&Cs (transfer payments) to support the Agency's suite of transfer payment programs. The majority of these funds will be delivered through the newly launched Southern Ontario Prosperity Initiatives (SOPI)—the Agency's main Gs&Cs vehicle—with planned Gs&Cs spending of $115.7 million in 2014–15. Southern Ontario Prosperity Initiatives (SOPI) is made up of four distinct initiatives with varying objectives and budgets and its planned spending in 2014–15 is distributed across the three external programs in the table above. Also new in 2014–15 is $40 million in dedicated funding to support the Advanced Manufacturing Fund (AMF) program, which the Agency will deliver across all of Ontario under the Technological Innovation Program.

In 2014–15, FedDev Ontario will also continue to support its Community Economic Development Program area through the delivery of the Community Futures Program (CFP) with a Gs&Cs budget of $11.3 million, the Eastern Ontario Development Program (EODP) with a budget of $9.6 million, and Economic Development Initiative (EDI) with a budget of $1.0 million. Further information on all transfer payment programs is provided in Sections II and III of this document.

FedDev Ontario's planned spending in 2014–15 is reduced by more than $40 million (or approximately 16 percent) as compared to its forecasted spending in 2013–14. This is mainly due to the sunsetting of the two-year Community Infrastructure Improvement Fund (CIIF), which aligned to the Community Economic Development Program in the table above and had a budget of $44.6 million in 2013–14.

Moving forward, the Agency's planned spending shows a small decrease in 2015–16 due mainly to the completion of $8 million in 2014–15 funding to support the Massey Hall Revitalization project. The increase in 2016–17 planned spending is a result of $9.6 million in funding to support the Greenwich-Mohawk remediation project in the City of Brantford.

FedDev Ontario's 227 planned FTEs for 2014–15 reflect the anticipated resource levels required to effectively support its Gs&Cs programming; continue its efforts to act as a convener with stakeholders and champion for the interests of southern Ontario; and provide ongoing support to business through Canada Business Ontario (CBO), which was transferred to FedDev Ontario in June 2013.

Alignment to Government of Canada Outcomes

2014–15 Planned Spending by Whole-of-Government-Framework Spending Area (dollars)
Strategic Outcome Program Spending Area Government of Canada Outcome 2014–15 Planned Spending
A competitive southern Ontario economy 1.1 Technological Innovation Economic Affairs An innovative and knowledge-based economy 79,171,993
1.2 Business Development Economic Affairs Strong economic growth 77,643,433
1.3 Community Economic Development Economic Affairs Strong economic growth 34,102,802
Total Planned Spending by Spending Area (dollars)
Spending Area Total Planned Spending
Economic Affairs 190,918,228

Departmental Spending Trend

Departmental Spending Trend Graph

Figure 2 - Departmental Spending Trend Graph (the long description is located below the image)
Description of Figure

A bar graph entitled "Departmental Spending Trend Graph" displays the actual, forecast and planned spending amounts at the Federal Economic Development Agency for Southern Ontario from 2011–12 to 2016–17, in dollars. The dollars are represented along the y-axis, and the years are represented along the x-axis. The bars indicating Total Spending show actual spending of $230,459,808 in 2011–12 and $236,741,320 in 2012–13, forecast spending of $202,463,388 in 2013–14, and planned spending of $206,764,115 in 2014–15, $198,721,418 in 2015–16 and $208,269,408 in 2016–17. A second bar representing Sunset Programs shows planned spending of $24,800,000 in 2014–15, 2015–16, and 2016–17 fiscal years. A third bar indicating Community Infrastructure Improvement Fund Spending shows actual spending of $4,979,647 in 2012–13, and forecasted spending of $44,630,000 in 2013–14.

FedDev Ontario's actual and forecast spending amounts reflect the maturation of the Southern Ontario Development Program and its Southern Ontario Advantage Initiatives, which were the main Gs&Cs program of the Agency's first five-year mandate. The increased spending amounts noted in 2012–13 and 2013–14 reflect the Agency's delivery of the two-year Community Infrastructure Improvement Fund (CIIF) program across all of Ontario. This program was announced as part of Budget 2012 and was delivered in addition to FedDev Ontario's core Southern Ontario Development Program. With the conclusion of the program in 2013–14, its annual $24.8 million allocation is displayed as sunset funding in each of the bars for 2014–15 and beyond in the graph above.

Planned spending for 2014–15 and beyond (not including sunset programs) reflects the five-year renewal of the Agency as announced in Budget 2013, the renewal of funding for the Economic Development Initiative (EDI) program, and ongoing funding for the Community Futures Program (CFP) and operating funding to deliver infrastructure programming on behalf of Infrastructure Canada. These amounts are net of the changes to funding levels announced as part of Budget 2012 with $177.6 million, or 86 percent of its total authorities in 2014–15, allocated to transfer payment programs. The majority of this funding will be delivered through Southern Ontario Prosperity Initiatives (SOPI) which is comprised of the following initiatives:

Estimates by Vote

For information on FedDev Ontario's organizational appropriations, please see the 2014–15 Main Estimates publication.Footnote vi

Contribution to the Federal Sustainable Development Strategy (FSDS)

FedDev Ontario also ensures that its decision-making process includes a consideration of the FSDS goals and targets through the strategic environmental assessment (SEA). An SEA for policy, plan or program proposals includes an analysis of the impacts of the proposal on the environment, including on the FSDS goals and targets. The results of SEAs are made public when an initiative is announced or approved, demonstrating that environmental factors were integrated into the decision-making process.

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Footnotes

Footnote 1

Funding to activities under sub-programs 1.1.1 Science, Technology, Engineering, and Mathematics Awareness and 1.1.2 Skills Development concluded on March 31, 2014. Following Treasury Board Secretariat's directions, details were not provided for these programs. FedDev Ontario is reviewing its PAA for the 2015–16 fiscal year in order to reflect these changes.

Return to footnote 1 referrer

Footnote 2

Type is defined as follows: previously committed to—committed to in the first or second fiscal year prior to the subject year of the report; ongoing—committed to at least three fiscal years prior to the subject year of the report; and new—newly committed to in the reporting year of the RPP or DPR. If another type that is specific to the department/agency is introduced, an explanation of its meaning must be provided.

Return to footnote 2 referrer

Footnote 3

Funding to activities under sub-programs 1.1.1 Science, Technology, Engineering, and Mathematics Awareness and 1.1.2 Skills Development concluded on March 31, 2014. Following Treasury Board Secretariat's directions, details were not provided for these programs. FedDev Ontario is reviewing its PAA for the 2015–16 fiscal year in order to reflect these changes.

Return to footnote 3 referrer

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