Archived — Departmental Performance Report 2013–14

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Section I: Organizational Expenditure Overview


Organizational Profile

Minister of Industry: The Honourable James Moore

Minister of State: The Honourable Gary Goodyear

Deputy Minister: Karen Ellis (President)

Ministerial Portfolio: Industry

Enabling Instrument:

Order in Council P.C. 2009–1410 dated August 13, 2009, amending Schedule I.1 of the Financial Administration ActFootnote i 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.

Year of Incorporation / Commencement: 2009

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Organizational Context

Raison d'être

As Canada's most populous region—home to more than 12.7 million residents living in 288 communities—southern Ontario is a key contributor to the Canadian economy. The Government of Canada created the Federal Economic Development Agency for Southern Ontario (FedDev Ontario) in 2009 as part of Canada's Economic Action Plan to work with the region's communities, businesses and not-for-profit organizations to actively promote the region and build a strong foundation of partnerships and relationships to secure Canada's long-term prosperity. To fulfill its mandate, FedDev Ontario supports technological innovation, business development, and community economic development in southern Ontario by working with partners and stakeholders across the region and responding to emerging opportunities and challenges. FedDev Ontario directs resources towards activities with the greatest impact to address community and business needs, and as a means of propelling the southern Ontario economy forward from a position of strength and prosperity, both in Canada and on the global stage. 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 and competitive southern Ontario economy. As one of twelve federal departments and agencies that make up the Industry Canada portfolio, FedDev Ontario leverages resources and optimizes synergies within this portfolio in order to further the Government's goal of building a knowledge-based economy in all regions of Canada and to advance the Government's jobs and growth agenda.

Through its various roles (co-investor, convenor, champion and a delivery agent for national programs) FedDev Ontario has continued to provide support for job creation, economic growth and the long-term prosperity of southern Ontario.

With the conclusion of its first five-year mandate on March 31, 2014, and its renewal through Economic Action Plan 2013 with $920 million in funding over the next five years, FedDev Ontario's focus in 2013–14 was both to close out its first suite of programming while designing and launching a new collection of initiatives to respond to the current economic conditions across the region.

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 2013, southern Ontario has a population of over 12.7 million, representing 93.6 percent of Ontario's total population and 36 percent of the total population of Canada.

Strategic Outcome and Program Alignment Architecture

FedDev Ontario's activities and results in 2013–14 supported three external pillars (as depicted below) in its Program Alignment Architecture: Technological Innovation; Business Development; and Community Economic Development. FedDev Ontario's programs were designed to engage and develop key partnerships, generate economic opportunities and build on southern Ontario's economic advantages. By maximizing these strategic partnerships and funding innovative and impactful projects in 2013–14, FedDev Ontario continued to work to create the conditions for economic prosperity and long-term sustainability in support of a competitive southern Ontario economy. These efforts contributed to Canada's overall economic achievements to create jobs, growth and prosperity.

  1. 1. Strategic Outcome: A competitive southern Ontario economy
    1. 1.1 Program: Technological Innovation
      1. 1.1.1 Sub-Program: Science, Technology, Engineering and Mathematics Awareness
      2. 1.1.2 Sub-Program: Skills Development
      3. 1.1.3 Sub-Program: Technology Development and Commercialization
    2. 1.2 Program: Business Development
      1. 1.2.1 Sub-Program: Business Investment
      2. 1.2.2 Sub-Program: Business Productivity and Innovation
    3. 1.3 Program: Community Economic Development
      1. 1.3.1 Sub-Program: Community Futures Program
      2. 1.3.2 Sub-Program: Eastern Ontario Development Program
      3. 1.3.3 Sub-Program: Official Language Minority Communities
      4. 1.3.4 Sub-Program: Infrastructure Delivery
  2. Internal Services

Organizational Priorities

Organizational Priority #1
Priority TypeFootnote 1 Programs
Enhancing collaboration and advancing the interests of southern Ontario New
  • Program 1.1—Technological Innovation
  • Program 1.2—Business Development
  • Program 1.3—Community Economic Development
  • Internal Services
Summary of Progress

What progress has been made toward this priority?

  • In January 2014, the Minister of State and senior executives of FedDev Ontario hosted information sessions for stakeholders from the food and beverage processing industry (an important economic sector for southern Ontario). The purpose was three-fold: to introduce FedDev Ontario's new programming suite; to gain a better understanding of industry-specific challenges in this sector; and to discuss how FedDev Ontario could help address some of these challenges by supporting business growth, productivity improvements, market expansion and regional diversification.
  • FedDev Ontario worked collaboratively throughout the year with its federal and provincial partners, municipalities and First Nations groups to deliver its transfer payment programs across Ontario, as well as special projects (e.g., Brantford Greenwich–Mohawk Brownfield Remediation Project) and programs delivered on behalf of Infrastructure Canada and jointly with the Province of Ontario. This also included working with other federal departments on program design and delivery (e.g., Advanced Manufacturing Fund and Community Infrastructure Improvement Fund).
  • Regional Development Agencies continued to meet regularly at the ministerial, deputy and officials' level on policy and program issues of common interest (e.g., Regional Federal Councils, Industrial and Technological Benefits and Blueprint/Destination 2020).
  • As Chair of the Ontario Federal Council, the Deputy Minister of FedDev Ontario continued to ensure that the Council provided a forum to bring together senior representatives across federal departments and agencies operating in Ontario to discuss priorities and developments specific to the region, support collaboration on government-wide initiatives and strengthen the federal network and presence in the region. These activities were carried out through quarterly meetings as well as through other forms of communication throughout the year.
  • Combined, these efforts were designed to raise awareness of FedDev Ontario's programming; better support potential applicants in submitting their proposals for consideration; and, where proposals did not appropriately fit one of FedDev Ontario's programs, re-direct or connect applicants to other organizations.
  • FedDev Ontario applied its knowledge of southern Ontario's aerospace and defence industry to connect relevant regional companies to prime contractors with Industrial and Technological Benefits obligations. FedDev Ontario also promoted southern Ontario interests at federal defence procurement committees in the development of Canada's new Defence Procurement Strategy, and by encouraging and facilitating meetings, collaborations and partnerships between various companies in southern Ontario.
Organizational Priority #2
Priority Type Programs
Excellence in innovative programming 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?

  • Following the announcement of FedDev Ontario's renewal in Economic Action Plan 2013, FedDev Ontario held a series of roundtable sessions, led by the Minister of State, in May 2013. These roundtables provided an opportunity to solicit input from stakeholders on the development of a new suite of economic development initiatives.
  • The new suite of initiatives—Southern Ontario Prosperity Initiatives—were developed and launched in 2013–14. The design and development of these new initiatives were the result of extensive research on the region's economic performance and future outlook, a review of the federal-provincial economic development program landscape in Ontario and consultations with stakeholders across southern Ontario.
  • FedDev Ontario, in collaboration with Industry Canada, and through consultations with businesses, industry associations, chambers of commerce, regional innovation centres and post-secondary institutions, designed and developed the new Advanced Manufacturing Fund as announced in Economic Action Plan 2013 to respond to the needs and opportunities within the manufacturing sector across all of Ontario.
  • FedDev Ontario incorporated several changes through the Community Futures Program to fully implement a performance-based funding model to spur greater performance across the 37 Community Futures Development Corporations located across southern Ontario.
  • Implementation of a comprehensive risk-based monitoring plan, which ties project monitoring with project risk to help ensure the effective and efficient use of public funds and support greater due diligence, was also completed.
Organizational Priority #3
Priority Type Programs
Strengthen organizational management New
  • Internal Services
Summary of Progress

What progress has been made towards this priority?

  • FedDev Ontario continued to augment its procedures to measure performance and support accountability. A business number analysis applying Statistics Canada data was used successfully in the evaluation of the Community Futures Program. The analysis compared the performance of comparable recipient and non-recipient firms in terms of growth in sales, employment growth, business survival rates, labour productivity growth and diversification index. It was determined that recipient firms performed better than non-recipients in terms of survival rates and growth in revenues, employment and wages. FedDev Ontario will continue to pursue the use of external data and business number analysis through other programs and for its forthcoming evaluations.
  • The Treasury Board Directive on Performance Management was implemented. FedDev Ontario focused on clarifying expectations to employees at all levels and identifying how their work is linked to the greater FedDev Ontario and government objectives.
  • FedDev Ontario also successfully implemented the Common Human Resources Business Processes as identified by Treasury Board Secretariat to streamline processes for most Human Resources functions across government, working closely with other Regional Development Agencies to identify efficiencies and share tools.
  • FedDev Ontario reviewed its existing governance structure to reduce redundancies and streamline its internal committee structure to enable strategic peer- and management-level review and input into organizational activities and deliverables.
  • FedDev Ontario continued to reduce its environmental footprint by implementing green procurement strategies, including the purchase of hybrid fleet vehicles and a greater reliance on technological solutions to reduce paper consumption. An increased reliance on videoconferencing in 2013–14 also contributed to a reduction in travel costs.
  • Canada Business Ontario was effectively transferred to FedDev Ontario from Industry Canada on June 6, 2013, to align with the governance model of the Canada Business Network in which Canada Business centres are managed by Regional Development Agencies. As a result of this transfer, FedDev Ontario is working to better serve entrepreneurs and businesses across southern Ontario.

Risk Analysis

Key Risks
Risk Analysis
RiskFootnote 2 Risk Response Strategy Link to Program Alignment Architecture

Information Technology Systems Integration

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 (FedDev Ontario's information technology service provider) and Shared Services Canada to improve systems integration and adoption of new enterprise-wide systems.
  • Work collaboratively with other Regional Development Agencies and Treasury Board Secretariat to identify common business requirements 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.

Strategic Outcome: A competitive southern Ontario economy

Program: Internal Services

Outcomes Assessment Processes

FedDev Ontario may have difficulty demonstrating project/program outcomes without continued enhancement of its performance assessment and data collection techniques.

  • Use 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 and innovation).
  • Implement and monitor new Performance Measurement Strategies to support current initiatives.
  • Identify appropriate data selection to support program evaluations and impact analysis and improve data collection methodology.
  • Expand business number analysis used under the Community Futures Program that applies Statistics Canada data to compare the performance of comparable recipient and non-recipient firms in terms of growth in sales, employment growth, business survival rates, labour productivity growth and diversification index.

Strategic Outcome: A competitive southern Ontario economy

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

Forecasting Transfer Payment Programs

Forecasted financial information for transfer payment programs may not be sufficient to enable FedDev Ontario to accurately plan while maintaining effective client relationships.

  • Maintain good relations with clients to ensure that their projects are on track and are achieving expected results.
  • Respect the monitoring strategy adopted by FedDev Ontario that requires all active projects to be monitored according to approved policy.
  • Improve internal training, communication and documentation for forecasting purposes across FedDev Ontario.

Strategic Outcome: A competitive southern Ontario economy

Programs: Technological Innovation; Business Development; Community Economic Development

Human Resources

There is a risk that FedDev Ontario may experience challenges in managing frequent short-term and temporary staffing needs.

  • 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 use new technologies and multiple methods to advertise jobs.
  • Use the recently developed Talent Management Strategy and Directive on Performance Management to support continuous workforce improvement.

Strategic Outcome: A competitive southern Ontario economy

Programs: Internal Services

Capacity

Without additional funding there is a risk that FedDev Ontario may not have the capacity to take on new programs while continuing to deliver its current level of service.

  • Build on streamlining FedDev Ontario's program delivery and reducing the overall number of initiatives it delivers.
  • Consolidate support services for transfer payment program delivery to improve efficiency and standardize processes.
  • Leverage third-party delivery mechanisms for small-value projects with multiple ultimate recipients.
  • Adhere to the external service standard pledge and provide frequently asked questions via FedDev Ontario's external website in support of new initiatives.

Strategic Outcome: A competitive southern Ontario economy

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

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Actual Expenditures

Budgetary Financial Resources (dollars)
2013–14
Main Estimates
2013–14
Planned Spending
2013–14
Total Authorities
Available for Use
2013–14
Actual Spending
(authorities used)
DifferenceFootnote 3
222,812,766 222,812,766 246,708,681 234,280,405 11,467,639
Human Resources (Full-Time Equivalents [FTEs])
2013–14
Planned
2013–14
Actual
2013–14
DifferenceFootnote 4
209 231 22
Budgetary Performance Summary for Strategic Outcome and Programs (dollars) Footnote 5
Strategic Outcome, Programs and Internal Services 2013–14
Main Estimates
2013–14
Planned Spending
2014–15
Planned Spending
2015–16
Planned Spending
2013–14
Total Authorities Available for Use
2013–14
Actual Spending (authorities used)
2012–13
Actual Spending (authorities used)
2011–12
Actual Spending (authorities used)
Strategic Outcome: A competitive southern Ontario economy
Technological Innovation 62,760,436 62,760,436 79,171,993 79,154,516 61,687,965 56,430,801 56,576,259 28,789,670
Business Development 90,406,932 90,406,932 77,643,433 77,626,294 89,670,252 87,659,299 131,523,159 131,711,291
Community Economic Development 55,397,113 55,397,113 34,102,802 26,098,219 75,083,532 71,120,480 34,609,151 51,314,065
Subtotal 208,564,481 208,564,481 190,918,228 182,879,029 226,441,749 215,210,580 222,708,569 211,815,026
Internal Services Subtotal 14,248,285 14,248,285 15,845,887 15,842,389 20,266,932 19,069,825 19,012,398 18,644,782
Total 222,812,766 222,812,766 206,764,115 198,721,418 246,708,681 234,280,405 241,720,967 230,459,808

FedDev Ontario directed its resources in 2013–14 to support the competitiveness of the southern Ontario economy by engaging with stakeholders and delivering transfer payment funding through approved projects to recipients that positively impacted the region. FedDev Ontario disbursed $204.2 million in transfer payments to eligible recipients in 2013–14 with an operating budget of $30.1 million. This included payments through the Community Futures Program ($11.3 million), Eastern Ontario Development Program ($13.2 million), Community Infrastructure Improvement Fund ($40.9 million), and FedDev Ontario's primary transfer payment vehicle, the Southern Ontario Development Program ($137.3 million), as well as a grant to the Corporation of the City of Brantford ($1.5 million).

The variance between planned spending and total authorities in 2013–14 was primarily due to $19.8 million in funding that was transferred from 2012–13 to 2013–14 for the Community Infrastructure Improvement Fund, which reports under the Community Economic Development Program area.

Further in-year adjustment, such as the transfer of $1.6 million in funding for Canada Business Ontario, also contributed to the increase in authorities and FTEs and reflects FedDev Ontario's evolving and expanding role in advancing the economic interests of southern Ontario.

The addition of Canada Business Ontario to FedDev Ontario and efforts to connect southern Ontario firms to Industrial and Technological Benefits are examples of how FedDev Ontario broadened its focus beyond the delivery of transfer payment programs and investments to advance its champion and convening roles in the region to best support the economic development of southern Ontario.

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Alignment of Spending with the Whole-of-Government Framework

Alignment of 2013–14 Actual Spending with the Whole-of-Government Framework Footnote ii (dollars)
Strategic Outcome Program Spending Area Government of Canada Outcome 2013–14 Actual Spending
A competitive southern Ontario economy Technological Innovation Economic Affairs An innovative and knowledge-based economy 56,430,801
Business Development Economic Affairs Strong economic growth 87,659,299
Community Economic Development Economic Affairs Strong economic growth 71,120,480
Total Spending by Spending Area (dollars)
Spending Area Total Planned Spending Total Actual Spending
Economic Affairs 208,564,481 215,210,580
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Departmental Spending Trend

Departmental Spending Trend Graph
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 2011–12 to 2016–17 in dollars. For the year 2011–12, the bar for total spending reaches $230,459,808. For 2012–13, the bar for total spending reaches $241,720,967. For 2013–14, the bar for total spending reaches $234,280,405. For 2014–15, 2015–16, and 2016–17, each bar in the graph includes an amount for total spending and sunset programs. In 2014–15, the bar for total spending reaches $206,764,115 and the portion of the bar for sunset programs equals $24,800,000 for an overall total of $231,564,115. In 2015–16, the bar for total spending reaches $198,721,418 and the portion of the bar for sunset programs equals $32,800,000 for an overall total of $231,521,418. In 2016–17, the bar for total spending reaches $208,269,408 and the portion of the bar for sunset programs equals $32,800,000 for an overall total of $241,069,408.

The above graph presents FedDev Ontario's financial results over the final three years of its initial five-year mandate, which concluded in 2013–14, and the projected spending for the first three years of its next mandate beginning with 2014–15. The multi-year nature of FedDev Ontario's transfer payment programs enabled relatively stable spending between 2011–12 and 2013–14 as the Agency was able to increasingly maximize its spending year-over-year.

As previously outlined, a large proportion of FedDev Ontario's annual spending is a result of funding provided to recipients through its transfer payment programs. In years 2012–13 and 2013–14, this included the delivery of the two-year Community Infrastructure Improvement Fund across all of Ontario. With the conclusion of this program, FedDev Ontario's $24.8 million annual allocation is reflected in the "Sunset Programs" bar above for 2014–15 onward.

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Estimates by Vote

For information on FedDev Ontario's organizational Votes and statutory expenditures, consult the Public Accounts of Canada 2014 on the Public Works and Government Services Canada websiteFootnote iii.

Footnotes

Footnote 1

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 is introduced, an explanation of its meaning must be provided.

Return to footnote 1 referrer

Footnote 2

FedDev Ontario organizational risks were revised after the submission of the 2013–14 Report on Plans and Priorities and additional organizational risks were identified and are presented herein.

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Footnote 3

The difference between actual and planned spending is primarily due to the transfer of $19.8 million in authorities from 2012–13 to 2013–14 for the Community Infrastructure Improvement Fund.

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Footnote 4

The difference between actual and planned FTEs can be attributed to the addition of Canada Business Ontario, which was transferred to FedDev Ontario in June 2013.

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Footnote 5

Please note that significant variances are described in Section II of this document.

Return to footnote 5 referrer

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