2022-23 Departmental Results Report

Atlantic Canada Opportunities Agency
2022-23 Departmental Results Report

The Honourable Gudie Hutchings
Minister of Rural Economic Development and Minister
responsible for the Atlantic Canada Opportunities Agency

About this publication

© His Majesty the King in Right of Canada, as represented by the
Minister of Rural Economic Development and Minister responsible
for the Atlantic Canada Opportunities Agency, 2023

Cat. No. AC2-9E-PDF
ISSN 2560-9882

From the Minister

In Atlantic Canada, ACOA has played a key role in our Government’s work to ensure that the region maintained its economic vitality and is well-positioned for long-term growth.

Through its regular programming and COVID-19 recovery initiatives, ACOA worked to strengthen capacity in sectors critical to the region’s economic momentum. The Agency helped companies become greener and more innovative, productive, competitive and export-oriented. It worked to help underserved groups build capacity to seize business opportunities, and it supported communities with projects that diversify their economic base, improve quality of life, build a sense of belonging, and enhance their ability to attract visitors and retain new residents.

In support of reconciliation, ACOA worked with Indigenous communities and governments, other government departments and economic development organizations to advance indigenous priorities for economic growth.

Following Hurricane Fiona, the Agency quickly began coordinating the Hurricane Fiona Recovery Fund to help communities and businesses affected by the storm and support long-term recovery and rebuilding efforts. With its wealth of local knowledge and expertise, ACOA played a leading role in recovery efforts and in administering the Hurricane Fiona Recovery Fund.

Strong federal-provincial co-operation continued to help transform Atlantic Canada’s economy. Since the Atlantic Growth Strategy was launched in 2016, both orders of government have collaborated to launch innovative measures designed to unlock the region’s potential. This partnership has built a stronger economy, driven population growth, and created opportunities for businesses and communities across Atlantic Canada. Through the Atlantic Growth Strategy, federal and provincial partners continue to collaborate on initiatives of regional importance, including the renewal of the Atlantic Trade and Investment Growth Strategy and a commitment to renew the Atlantic Canada Agreement on Tourism. This came with a reaffirmed commitment to pursue key regional opportunities in energy, immigration, infrastructure, transit, and innovation, and to build on existing initiatives such as the Universal Broadband Fund that are benefiting Atlantic Canadians.

I invite you to read this report to learn more about how ACOA is helping to accelerate Atlantic Canada’s transformational economic shift.

Results at a glance

ACOA’s activities helped Atlantic Canada, its businesses, people, and communities fuel prosperity and reimagine ways to manage and maximize economic growth and inclusion, in both urban and rural Canada, and in communities. An unprecedented number of people moved to the region (more than 78,100 or 3.1 percent^{Footnote (1)}) and helped fill the strong, ongoing need for workers as the number of new jobs also increased by nearly 41,000 or 3.6 percent.^{Footnote (2)} During this time, the region continued to recover from the COVID-19 pandemic and unexpected events such as Hurricane Fiona and disruptions in Prince Edward Island’s potato industry. In doing so, ACOA’s activities contributed to and complemented the Government of Canada’s plan for investments that create jobs and prosperity for all Atlantic Canadians. As outlined in Budget 2022^{Footnote i}, new initiatives focused on targeted and responsible investments in economic growth, innovation, and the clean economy to create jobs and prosperity today and build a stronger economic future for all Atlantic Canadians. Activities also complemented federal initiatives such as the Innovation and Skills Plan^{Footnote ii} and were guided by four overarching strategic lenses: greening the economy, digitization, supporting the workforce of the future, and inclusion of under-represented groups in Atlantic Canada’s workforce.

The Agency supported the Minister responsible for ACOA in her ministerial mandate letter commitments, as well as in her engagements with Atlantic Canadians, key stakeholders, federal colleagues, and provincial governments, as follows:

Promote short- and long-term job creation and economic development in Atlantic Canada in a way that supports the whole-of-government effort to reduce emissions, create clean jobs and address communities’ climate-related challenges.

Building on its 35-year record of fuelling economic growth in the region, the Agency continued to provide regionally tailored, client-centric, and flexible place-based assistance to small and medium-sized enterprises (SMEs) and to support job creation in communities recovering from economic challenges and uncertainties in both urban and rural areas. This supported long-term, sustainable growth with economic development initiatives in communities of every size, helping SMEs access financing, and investing in the local infrastructure that helped communities grow.

In 2022-23, the Agency contributed $351.4 million toward 3,042 projects, estimated to have created or maintained over 8,600 jobs. Approximately half of projects and spending was invested in rural communities thanks to ACOA’s extensive footprint and expertise across the region. Of these projects, more than 200 focused on clean growth objectives to help SMEs and communities green their operations and reduce their environmental footprint. In addition to ACOA’s regular programming, the Agency delivered many new measures. Overall, the Agency spent $129.5 million on targeted and temporary initiatives^{Footnote (3)} for 1,230 projects that maintained or created an estimated 3,000 jobs. This represents over 30 percent of overall expenditures. The Agency supported COVID-19 economic recovery through initiatives such as the Aerospace Regional Recovery Initiative, the Canada Community Revitalization Fund, the Jobs and Growth Fund, and the Tourism Relief Fund, 10 percent of which was earmarked for Indigenous tourism initiatives and projects. The Agency also continued to offer relief across the economy by supporting those impacted by trade restrictions; protecting air transportation to the regions; and assisting those hard hit by Hurricane Fiona by helping them rebuild and become more resilient to climate change and trade restrictions.

Support initiatives that advance the goals of the Atlantic Growth Strategy

In July 2022, the Minister of Intergovernmental Affairs, Infrastructure and Communities and the Minister responsible for ACOA co-chaired the successful Leadership Committee meeting for the Atlantic Growth Strategy^{Footnote iii} involving the four Atlantic premiers and the federal ministers representing Atlantic Canada. To accelerate the growth of Atlantic Canada’s economy through collaboration, the Leadership Committee renewed its priorities to shore up economic prosperity for future generations. This initiative built on strong ongoing collaboration between federal departments, including ACOA, and provincial governments. Throughout 2022-23, ACOA continued to advance the five pillars of the Atlantic Growth Strategy.

On skilled workforce and immigration – ACOA supported many projects to advocate for the region’s workforce needs, such as by leveraging the Atlantic Immigration Program^{Footnote iv} and accelerating capacity in areas such as digital skills with employers, business associations, colleges and universities. On innovation, 14 new high-growth firms enrolled in the Accelerated Growth Service^{Footnote v} in 2022-23, for a total of 164 since inception. Atlantic Canada’s innovation ecosystem saw nearly $49 million in ACOA spending to better assist entrepreneurs and start-ups. On clean growth, ACOA spent $36.7 million to help Atlantic Canadian companies green their operations and reduce the region’s environmental footprint. On trade and investment, ACOA spent nearly $42 million across 485 projects to increase the number of exporters and export sales and attract foreign direct investment. In addition, ACOA led efforts to update the successful Atlantic Trade and Investment Growth Strategy^{Footnote vi} with all four Atlantic provincial governments, and to renew the key funding agreement designed to support its implementation for a new five-year period starting in 2022-23. On infrastructure, the Agency helped communities affected by Hurricane Fiona^{Footnote vii} to rebuild, rapidly deploying $4.5 million in spending for 8 projects while coordinating the whole-of-government response with other federal departments and agencies.

Support local and regional economic diversification and transform how we power our economy and communities

The Government of Canada is committed to promoting a greener, more sustainable economy, and ACOA supports this goal. Sustainability was an important guiding principle for the Agency as it explored growth opportunities and helped accompany SMEs as they mitigated the impacts of industries transitioning to a cleaner economy. For example, the Agency helped communities in New Brunswick and Nova Scotia affected by the coal phase-out to diversify their economies, create jobs and prepare for the future, notably with $10.2 million for 34 projects through the Canada Coal Transition Initiative^{Footnote viii}, including its Infrastructure Fund.

For more information on the Atlantic Canada Opportunities Agency’s plans, priorities and results achieved, see the “Results: what we achieved” section of this report.

Results: what we achieved

Core responsibilities

Economic development in Atlantic Canada

Description

Support Atlantic Canada’s economic growth, wealth creation and economic prosperity through inclusive clean growth and by building on competitive regional strengths. Help small and medium-sized enterprises (SMEs) growth through direct financial assistance and, indirectly, through business support organizations. SMEs become more innovative by adopting new technologies and processes and by pursuing new avenues for expansion and market diversification to compete and succeed in a global market.

Results

In support of these objectives, ACOA spent $351.4 million on 3,042 projects, helping to maintain or create an estimated 8,600 jobs in the region. Regular programs supported 1,812 projects with $221.9 million in spending. The Agency’s investments leveraged an average of $1.63 in partner funding for every dollar ACOA approved. These projects were developed and delivered collaboratively with Atlantic businesses, community stakeholders and support organizations such as the Community Business Development Corporations^{Footnote xi} (CBDCs). The Agency worked closely with federal departments, provincial governments and stakeholders in the design and delivery of programs. These efforts were championed by ACOA staff to support economic recovery in areas of growth while prioritizing activities that accelerate greening, digitization, the workforce of the future, and inclusion. The Agency further spent $129.5 million^{Footnote (4)} on targeted and temporary initiatives (listed below) for 1,230 projects that maintained or created an estimated 3,000 jobs.

In 2022-23, the Agency delivered Atlantic Canada’s share of the following economic relief and recovery initiatives:

• Aerospace Regional Recovery Initiative^{Footnote xii} – spending $2.8 million on 9 projects to help Atlantic Canada’s aerospace sector green its operations and adopt environmentally sustainable practices, improve productivity and strengthen commercialization while furthering integration into regional and global supply chains.
• Canada Community Revitalization Fund^{Footnote xiii} – spending $29.7 million on 516 projects to help communities across Canada build and improve community infrastructure, bring people back to public spaces safely as health measures eased, create jobs, and stimulate local economies.
• Hurricane Fiona Recovery Fund^{Footnote xiv} – spending $4.5 million on 8 projects for local communities and businesses affected by the storm and to help long-term recovery efforts. As the coordinating agency, ACOA worked with other federal departments and agencies to determine and address local recovery needs, develop targeted initiatives to assist in recovery and rebuilding, and allocate funds accordingly to the departments and agencies that will deliver their portion of the fund.
• Jobs and Growth Fund^{Footnote xv} – spending $29.5 million on 130 projects to help create jobs and position local economies for long-term growth, especially activities that support the transition to a green economy, foster an inclusive recovery, increase SME competitiveness, and strengthen capacity in critical sectors.
• Prince Edward Island Potato Stabilization and Innovation Initiative^{Footnote xvi} – spending $7.3 million on 23 projects to ensure the sustainability of Prince Edward Island’s potato sector and related supply-chain sectors affected by trade disruptions and for longer term strategic investments.
• Rediscover Main Streets initiative^{Footnote xvii} – spending $8.7 million on 125 projects supporting the economy by helping Atlantic Canadians re-experience their main streets, downtowns, and neighbourhoods. The initiative helped to reanimate and breathe new life into local economies affected by the global pandemic. 
• Tourism Relief Fund^{Footnote xviii} – spending $32 million on 371 projects to help empower tourism businesses, including Indigenous-led entities, by supporting destination development and creating new or enhanced tourism experiences and products to attract more domestic and international visitors.

The Agency delivered targeted support to several funds such as the Black Entrepreneurship Program’s National Ecosystem Fund^{Footnote xix} ($1 million  in expenditures for 2 projects), to strengthen capacity among two leading Atlantic Canadian Black-led non-profit business organizations, the Women Entrepreneurship Strategy’s Ecosystem Fund^{Footnote xx} ($3.2 million  in expenditures for 4 projects), the Canada Coal Transition Initiative^{Footnote xxi} ($2.7 million  in expenditures for 10 projects) and its Infrastructure Fund ($7.5 million in expenditures for 24 projects) to help affected communities diversify their economies, and the Canadian Experiences Fund^{Footnote xxii} ($416 thousand in expenditures for 7 projects). The Agency also delivered the final investments for the Regional Air Transportation Initiative^{Footnote xxiii} ($119 thousand in expenditures for 1 project) to help Atlantic Canada’s air transportation ecosystems to operate after the COVID-19 restrictions were lifted and continue supporting economic growth in the region.

To support economic stability and future growth, ACOA’s investments targeted strategic sectors such as food, oceans, aquaculture, clean technology, and tourism, all while supporting advanced manufacturing, the start-up ecosystem, exports, and a workforce of the future and skills development as drivers of competitiveness. Activities also focused on Indigenous economic development and supported a skilled workforce through immigration. The Agency played advocacy and pathfinding roles to improve access to federal investments for Atlantic businesses and communities. It also ensured short-term supports were complementary in areas such as skills development and the green economy. ACOA did so with federal departments, the four provincial governments and other stakeholders to support SMEs and communities.

This role was validated in a 2020-21 evaluation of ACOA business growth and trade and investment programs finding that “programming continues to address specific growth needs of SMEs in Atlantic Canada. It is well aligned with ACOA’s mandate and government priorities and complements other programming and initiatives offered in the region. There is evidence that the programming helps Atlantic Canadian SMEs to grow their business. Most important, it leads to improved planning and capacity for growth, increased productivity, and market development. The design and delivery of the programming supports efficiency, awareness of changing needs, and the achievement of results. A strong regional presence allows ACOA to understand SME needs and capacities. The Agency plays an important role in developing and maintaining collaborations, pathfinding and convening partners across the ecosystem.”

In 2022-23, ACOA’s work advanced its three departmental results with the following initiatives, activities, and actions^{Footnote (5)}.

Departmental Result 1: Businesses are innovative and growing in Atlantic Canada

• The Agency supported 1,490 projects under business growth, and trade and investment activities with investments of $170.4 million.
• The Agency helped businesses at various stages of development – from start-up to high growth – to adapt their operations to accelerate their growth and scale up, and to enhance their productivity and competitiveness in both domestic and global markets. Between 2015 and 2020, ACOA clients:
  • increased their sales by an average of 3 percent annually compared to 0.6 percent for comparable non-clients.
  • grew their productivity by an average of 2.2 percent annually compared to 2.6 percent for comparable non-clients.
  • expanded exports by an average of 5.9 percent compared to 0.2 percent for comparable non-clients.
  • saw an increase of 6.4 percent among high-growth firms that receive ACOA assistance (up 150 in 2020 versus 2015).
  • grew employment at an average rate of 0.8 percent compared to -1.9 percent for comparable non-clients.

From 2017 to 2022, the Atlantic Trade and Investment Growth Agreement achieved strong results: Firms supported had:

• export sales 2.7 times higher than firms exporting on their own;
• a nearly 20 percent higher rate of export revenues of $5 million or more;
• close to a 40 percent higher rate of exporting to more than one country;
• adapted exporting activities to respond to COVID-19 impacts; and
• achieved $189 million in potential short-term sales ($15.28 per dollar invested); and $464 million in long-term sales ($51.36 per dollar invested).

 
• Despite economic headwinds, ACOA supported SME growth through exports in key industry sectors such as seafood. The renewed 2023 to 2027 Atlantic Trade and Investment Growth Agreement^{Footnote xxiv}, with the Atlantic provincial governments, committed a total of $20 million to pursue international business opportunities and attract foreign investment. In the final year of the 2017 to 2022 agreement, ACOA and the Atlantic Provinces invested close to $3 million in over 38 projects. In its first 5 years, they invested close to $20 million in over 120 projects. More than 250 firms were involved with in-market activities such as trade shows, and nearly 1,300 firms participated in capacity-building activities such as training, market intelligence and competitive analysis.
• ACOA supported the long-term recovery of the important tourism sector and its local businesses through the Tourism Innovation Action Plan, including planning the renewal of the Atlantic Canada Agreement on Tourism^{Footnote xxv} in 2023.
• Fourteen Atlantic Canadian businesses leveraged their growth plans under the Accelerated Growth Service^{Footnote xxvi}, joining the 164 who have done so since the service’s creation. Led by ACOA in Atlantic Canada and involving other federal and provincial organizations, activities helped to build a pipeline of clients with strong potential for growth and provided them with focused sales and export support.
• ACOA harnessed the economic potential of Atlantic Canada’s ocean economy, promoting growth in tourism, and leveraging high impact and growth sectors such as information and communications technology, clean technology, life sciences, and biosciences.
• ACOA also positioned Atlantic Canadian firms to leverage major Canadian Coast Guard and defence procurement through Canada’s Industrial and Technological Benefits (ITB)^{Footnote xxvii} Policy through networking between regional stakeholders and global aerospace and defence firms. The Agency responded to 27 capability requests and 11 bid evaluations as well as participated in 11 Industry Days and regional events to support and advocate for Atlantic Canadian firms.

Departmental Result 2: Businesses invest in the development and commercialization of innovative technologies in Atlantic Canada

• The Agency supported 271 projects under innovation ecosystems, research and development, and commercialization activities with investments of $57.5 million. This was accomplished through key programs such as the Regional Innovation Ecosystem stream of the Regional Economic Growth through Innovation Program^{Footnote xxviii} to create, grow and nurture inclusive regional ecosystems that support business needs and foster an entrepreneurial environment conducive to innovation, growth and competitiveness by convening innovation ecosystem stakeholders. This includes specific support for Black-led and women-led business support organizations.
• Between 2015 and 2020, ACOA clients spent 0.6 percent of their revenues on research and development compared to 0.1 percent for comparable non-clients.
• ACOA invested in advanced manufacturing to raise business awareness of the need to increase digitization and the use of transformative technologies in Atlantic Canada, and to ensure businesses have the capacity to implement advanced manufacturing solutions to be more innovative, agile, and resilient in response to changing market conditions.
• ACOA supported the start-up ecosystem to help new companies emerge and scale up. Startup Genome’s 2022 Global Startup Ecosystem Report, Blue Economy Edition ^{Footnote xxix}rated Atlantic Canada as the 10th most successful oceans ecosystem globally as well as one of the Top 5 ecosystems to watch for significant future growth potential. The report also ranked the Creative Destruction Labs, an ACOA client that runs its oceans incubator out of Dalhousie University in Halifax, among the Top 10 blue economy accelerators globally.
• ACOA invested in the greening of Atlantic Canadian companies by supporting the adaptation and adoption of new technologies, waste optimization, clean energy adoption, and the decarbonization of key sectors.
• The Agency helped advance the Atlantic Loop^{Footnote xxx} initiative to connect surplus clean power to regions transitioning away from coal and help transform how Atlantic Canada’s economy and communities are powered.

Departmental Result 3: Communities are economically diversified in Atlantic Canada

• The Agency supported 1,260 projects focusing on inclusive community and diversified community priorities with spending of $118.1 million. Every dollar approved by ACOA in community projects leveraged $1.98 in 2022-23, more than triple the $0.60 target.
• ACOA provided $14.6 million to the CBDC network for the Community Futures Program ^{Footnote xxxi} to support the creation and expansion of small businesses throughout rural communities in Atlantic Canada.
  • Support translated into 1,257 loans valued at $101.6 million overall and the leveraging of an additional $111.8 million in funds from partners.
• ACOA has largely met its targets for economic diversification as demonstrated through the percentage of professional-, science- and technology-related jobs in the region, which represented 32.9 percent of all jobs in Atlantic Canada’s economy in 2022, above the Agency’s target of 32 percent.
• SME ownership among under-represented groups has seen a decline across Atlantic Canada from 2017 to 2020. However, the Agency’s clients from under-represented groups continued to demonstrate strong performance. Between 2015 and 2019:
  • Women-owned SMEs that received ACOA support represented 11.2 percent of all ACOA-assisted firms in 2019 and were more successful at staying in business after the crucial 5th year following start-up compared to ACOA-assisted firms majority owned by men and comparable women-owned businesses that were not clients.
  • Youth-owned SMEs that received ACOA support saw higher growth in employment, wages, sales and labour productivity than other age groups.
  • Immigrant-owned SMEs that received ACOA support performed better on employment growth than ACOA clients born in Canada.
  • Indigenous-owned SMEs that received ACOA support performed better on employment growth, wages, sales, and labour productivity than non-indigenous ACOA clients and Indigenous-owned businesses that were not clients.
  • ACOA-assisted firms majority owned by racialized groups posted stronger growth in terms of employment and sales than ACOA-assisted firms majority owned by non-racialized groups.
• ACOA continued to help bridge labour and skills gaps for SMEs and increased the region’s capacity to attract global talent and international students, retain newcomers through enhanced settlement support, and ensure immigrant entrepreneurs led successful businesses and were integrated into the economy, including in rural areas.
• ACOA supported entrepreneurs from under-represented groups, including women, Indigenous people, official language minorities, Black Canadians, racialized communities, recent immigrants, visible minorities, youth, and persons with disabilities.
• ACOA championed projects to support immigration in Atlantic Canada, focusing on attracting and retaining immigrants, including international students, and supporting employers as they address labour and skills shortages. The Agency supported federal and provincial partners in the continuation of the Atlantic Immigration Program^{Footnote xxxii}.
• ACOA championed projects to help reach a larger number of Indigenous businesses. This is part of ACOA’s commitment to reconciliation and to support the Federal Framework for Aboriginal Economic Development with Indigenous stakeholders such as the Ulnooweg Development Group, Indigenous leadership and businesses, the Atlantic provincial governments and Indigenous Services Canada. Activities built capacity and increased knowledge and awareness through interactive business mapping, and by convening federal, provincial, stakeholder, and community partners to participate on committees, initiatives, and communities of interest.
• ACOA championed projects that supported official language minority community business owners and partners across the Agency’s different programs.
• With the Canada Coal Transition Initiative^{Footnote xxxiii}, the Agency supported 34 projects for $10.2 million in spending for economic diversification in communities in New Brunswick and Nova Scotia. This helped communities affected by the future phase-out of coal-fired electricity generation plants and the transition to a low-carbon economy.

Gender-based analysis plus

ACOA investments reflected the Government of Canada’s commitment to grow a more inclusive economy and a stronger future for all Canadians during this time of economic recovery from the pandemic. Across the Agency’s suite of programs and initiatives in 2022-23, ACOA spent $62.5 million on 645 projects that supported GBA Plus objectives or entrepreneurs from under-represented groups. This includes support for ACOA clients from the following groups: $25.4 million for women; $18.3 million for Indigenous peoples; $15.7 million for official language minority community members; $674,000 for Black, racialized and visible minorities; $5.8 million for persons with disabilities; $6.1 million for recent immigrants; and $5.6 million for youth. In addition to these groups, the Agency recognizes that a person’s place of residence may be a limiter to accessing government support. In response to these realities, ACOA delivered a significant portion of its support to rural communities, representing $163.3 million in spending on more than 1,600 projects.

United Nations 2030 Agenda for Sustainable Development and the Sustainable Development Goals

ACOA’s 2020 to 2023 Departmental Sustainable Development Strategy^{Footnote xxxiv} describes the Agency’s planned actions in support of achieving a greener government, clean growth, and clean energy. This strategy advances objectives related to several of the United Nation’s sustainable development goals (SDGs). The Agency focused its efforts on:

• ensuring access to reliable, sustainable, and modern energy for all through initiatives such as the Atlantic Loop and targeted initiatives for Newfoundland and Labrador’s oil and gas sector (SDG 7: clean energy);
• supporting workers, businesses, and communities to adopt, develop and demonstrate clean technologies, and transition to a green economy (SDG 8: Decent Work and Economic Growth; SDG 9: Infrastructure, Innovation and Industry); and
• ensuring sustainable consumption through low-carbon government initiatives (SDG 13: Climate Action, led by Treasury Board Secretariat for greening government activities).

Innovation

In 2022-23, ACOA continued to foster innovation and committed to making experimentation an integral part of its operations. For example:

• It improved client services by leveraging digital tools and streamlining processes. Changes were implemented early enough to reduce turnaround time for year-end claims in the fourth quarter by 2.3 days while processing 42 percent more claims compared to the same period in 2021-22.
• The Agency continued its efforts to design and implement a data architecture that serves as a fundamental building block for future efficiencies and more modern processes. This new
  architecture will help the Agency access, collect, use, safeguard, and share data using a more efficient and safer process. The updated infrastructure will enable the Agency to tap into cloud-based artificial intelligence and machine learning tools, presenting a wide array of opportunities.
• ACOA played a significant role in moving the needle for companies in their digital transformation with the Digital Acceleration Pilot, where the total investment was $20 million, supporting over 200 Atlantic Canadian companies. ACOA also supported all four Atlantic Provinces in delivering their digital programming in support of areas such as artificial intelligence, advanced manufacturing, and digital adoption.
• ACOA enhanced its approach to working with clients under the newly renewed Atlantic Trade and Investment Growth Strategy, leveraging technology to host regular cross-sectoral virtual town halls and developing a more robust approach for gathering and using performance information, including the adoption of dashboards, to better respond to the needs of SMEs as well as achieving and communicating results.

Key risks

ACOA faced two main risks to fulfilling its mandate. The first is that the Agency’s economic development programming was affected by external factors such as the residual impacts of COVID-19 and further exacerbated by Hurricane Fiona, which contributed to uncertainties for economic growth in Atlantic Canada.

The second was the capacity of ACOA’s stakeholders – other governments, partners, communities, and clients – to identify, develop, and successfully implement strategic projects.

This was especially true in the balance of COVID-19 relief and recovery efforts, Hurricane Fiona, and the uneven economic impacts across sectors. This was not optimal to the achievement of ACOA’s program objective of economic growth. ACOA capitalized on the flexibility of its programs, on its advocacy role, and on its planning to mitigate risks associated with an evolving economy and the depth of regional stakeholders’ capacity. It supported analysis on regional economic issues and collaborated with stakeholders to foster client and community capacity to help achieve targets under key federal priorities.

Results achieved

The following table shows, for economic development in Atlantic Canada, the results achieved, the performance indicators, the targets, and the target dates for 2022-23, and the actual results for the three most recent fiscal years for which actual results are available.

Financial, human resources and performance information for ACOA’s program inventory is available in GC InfoBase.^{Footnote xxxv}

Budgetary financial resources (dollars)

The following table shows, for economic development in Atlantic Canada, budgetary spending for 2022-23, as well as actual spending for that year.

Financial, human resources and performance information for ACOA’s program inventory is available in GC InfoBase.^{Footnote xxxvi}

Human resources (full-time equivalents)

The following table shows, in full-time equivalents, the human resources the department needed to fulfill this core responsibility for 2022-23.

Financial, human resources and performance information for ACOA’s program inventory is available in GC InfoBase.^{Footnote xxxvii}

Internal services

Description

Internal services are those groups of related activities and resources that the federal government considers to be services in support of programs and/or required to meet corporate obligations of an organization. Internal services refer to the activities and resources of the 10 distinct service categories that support program delivery in the organization, regardless of the internal services delivery model in a department. The 10 service categories are:

• acquisition management services
• communication services
• financial management services
• human resources management services
• information management services
• information technology services
• legal services
• material management services
• management and oversight services
• real property management services

Results

ACOA focused on implementing the Government of Canada’s Direction on Prescribed Presence in the Workplace (PPW) ^{Footnote xxxviii} by leading a safe, healthy, and flexible return to work in a hybrid environment, with a particular emphasis on change management supporting employee mental health and well-being. Furthermore, the Agency continued to support an agile, equipped, innovative and diverse workplace, while fostering a respectful, accessible, and inclusive environment.

ACOA undertook the following specific activities in 2022-23:

• developed and implemented various tools, resources, processes, and guidelines to assist employees during the implementation of the Government of Canada’s directive for the PPW;
• implemented wellness initiatives as laid out in ACOA’s Wellness and Mental Health Action Plan for 2022-23, with a focus on raising awareness of the 13 psychosocial factors and considering these in business practices and decision making;
• focused on a response to the Clerk’s call to action with the work of its Office of Equity, Inclusion and Anti-Racism, including implementing Year 1 of the Agency’s 2-year Employment Equity, Inclusion and Anti-Racism (EEIAR) Plan. The Agency also developed its next iteration of the EEIAR Plan, created a new sponsor position at the executive level for Equity, Inclusion and Anti-Racism, and established employee-led networks for various equity-seeking employees, who now participate in the Agency’s EEIAR Advisory Committee.
  • A Valuing Diversity and Inclusion competency was implemented for management positions. The Agency’s Diversity, Inclusion, Competency Excellence (DICE) full-day dialogue sessions were delivered to most executives and employees at the Agency, and DICE content and train-the-trainer sessions were provided to other federal and provincial departments, universities, colleges, and private-sector organizations.
  • The Agency led the Selection Board + initiative in partnership with the Atlantic Federal Council to support better access to representative hiring board members in the region.
• fully implemented its Workplace Harassment and Violence Prevention program, including a dedicated intranet site with an online reporting tool;
• continued to respond to government-wide strategies such as “Nothing without us” by implementing the path laid out in its 3-year Accessibility Plan;
• continued to build upon its excellence by implementing organizational initiatives to strengthen and improve the efficiency of services and program delivery.
  • The Agency’s new Official Languages Action Plan was implemented, which aims to position ACOA as a leader in supporting the advancement of the Official Languages Minority Communities in Atlantic Canada.
  • Service agreements were established in collaboration with other regional development agencies in compensation and classification to create greater efficiencies in services.
  • A pilot for Express Lane Staffing was implemented, with approximately 35 percent of staffing actions redirected through this accelerated process.
• continued to implement the new grants and contributions program management business system and associated client web portal;
• implemented information management/information technology initiatives in support of the Government of Canada’s Digital Ambition 2022^{Footnote xxxix}. These initiatives help advance digital service delivery and cyber security at ACOA. Among the initiatives undertaken in the past year, ACOA has continued its expansion of the Government of Canada Secret Infrastructure to ensure secure transmission of electronic classified information with other government departments. ACOA has also migrated several internal business applications to a cloud-based platform to achieve improvements in areas such as workflow efficiency, information security, and information technology support costs; and
• continued to focus on effective organizational oversight and on safeguarding financial and other resources. Focus was given to providing financial oversight in the delivery of the various COVID-19 related measures by creating new tools and integrating new technologies for efficiency, such as the adoption of the Microsoft Power BI platform to supplement ACOA’s financial system. This allows enhanced access to timely data to improve decision making.

Contracts awarded to Indigenous businesses

ACOA is a Phase 2 organization and is aiming to achieve the minimum 5 percent target by the end of 2023-24. The Agency surpassed this target with a 2022-23 result of 9.98 percent.

The mandate of the Agency is to increase economic development in Atlantic Canada. As such, the Agency focused its energy on increasing business with Atlantic Canada indigenous firms and will continue do so by advocating for the use of Indigenous suppliers.

	2021-22 actual percentage achieved	2022-23 target percentage	2022-23 actual percentage achieved
Total percentage of contracts with Indigenous businesses	N/A	5%	9.98%

Budgetary financial resources (dollars)

The following table shows, for internal services, budgetary spending for 2022-23 as well as actual spending for that year.

Human resources (full-time equivalents)

The following table shows, in full-time equivalents, the human resources the department needed to carry out its internal services for 2022-23.

Spending and human resources

Spending

Spending 2020-21 to 2025-26

The following graph presents planned spending (voted and statutory) over time.

Actual spending: 2020-21, 2021-22, 2022-23. Planned spending: 2023-24, 2024-25, 2025-26.

Planned spending for 2023-24, 2024-25 and 2025-26 does not include amounts stemming from Budget 2023.

In 2022-23, the Agency’s spending was $10.4 million less than the previous year, mainly due to the following changes in authorities.

• A total decrease of $93.6 million due to the reduction of:
  • $52.5 million in temporary funding related to the Regional Relief and Recovery Fund;
  • $41.1 million in temporary funding related to the Regional Air Transportation Initiative;
• The decrease is offset by a total increase of $83.2 million due to the following.
  • $60.3 million in temporary funding announced in Budget 2021, including:
    • $24.5 million related to the Jobs and Growth Fund;
    • $21.8 million related to the Tourism Relief Fund;
    • $11.5 million related to the Canada Community Revitalization Fund;
    • $2.5 million related to the Aerospace Regional Recovery Initiative;
  • $7.4 million related to the conclusion of temporary funding transferred to Natural Resources Canada for Protecting Jobs in Eastern Canada’s Forestry Sector, as announced in Budget 2018;
  • $6.0 million in temporary funding related to the Potato Stabilization and Innovation Initiative;
  • $1.8 million related to the reprofiling of funds as a result of project/contracting delays;
  • $1.6 million related to compensation allocations resulting from revised collective agreements;
  • $1.2 million in temporary funding in support of the Halifax International Security Forum. (ACOA continues its role as the delivering agency, with a transfer of funds from the Department of National Defence for the annual initiative);
  • $0.5 million in temporary funding (stemming from a transfer of funds from the Department of Agriculture and Agri-Food) to support the establishment of a Dairy Secondary Processing project in Newfoundland and Labrador; and,
  • various adjustments due to variations that occurred in the normal course of business.

The decrease in planned spending in future years is attributable mainly to the conclusion of temporary funding received such as that related to the COVID-19 pandemic.

Budgetary performance summary for core responsibilities and internal services (dollars)

The “Budgetary performance summary for core responsibilities and internal services” table presents the budgetary financial resources allocated for ACOA’s core responsibilities and for internal services.

For 2022-23, planned spending of $436.5 million increased by $30.3 million, resulting in total authorities available for use of $466.8 million. This was due to the following additional authorities received during the fiscal year:

• $14.0 million related to the reprofiling of funds from the previous year as a result of project/contracting delays;
• $6.0 million in temporary funding related to the Potato Stabilization and Innovation Initiative;
• $4.3 million in temporary funding in support of the Halifax International Security Forum. (ACOA continues its role as the delivering agency, with a transfer of funds from the Department of National Defence for the annual initiative);
• $3.3 million related to the Operating Budget Carry Forward from 2021-22;
• $1.9 million related to compensation allocations resulting from revised collective agreements;
• $0.5 million in temporary funding (stemming from a transfer of funds from the Department of Agriculture and Agri-Food) to support the establishment of a Dairy Secondary Processing project in Newfoundland and Labrador; and
• $0.3 million in various adjustments.

From the 2022-23 total authorities of $466.8 million, actual spending was $433.1 million. This resulted in a surplus of $33.7 million. Of that amount, $2.7 million was carried forward as part of the Agency’s operating budget, $30.5 million was reprofiled into the next fiscal year as a result of project/contracting delays, and the remaining balance lapsed.

Human resources

The “Human resources summary for core responsibilities and internal services” table presents the full-time equivalents allocated to each of ACOA’s core responsibilities and to internal services.

Human resources summary for core responsibilities and internal services

Human resource levels at ACOA show an increase starting in 2020-21 that reflects the additional human resources required to support the effort by the Government of Canada and ACOA to effectively deliver on COVID-19 emergency measures. The situation normalizes starting in fiscal year 2024-25. The remaining fluctuations reflect the realignment of human resources to support priorities, projects, and new temporary initiatives. The Agency will continue to achieve its results by allocating its human resources to best support its priorities and programs.

Expenditures by vote

For information on ACOA’s organizational voted and statutory expenditures, consult the Public Accounts of Canada.^{Footnote xl}

Government of Canada spending and activities

Information on the alignment of ACOA’s spending with Government of Canada spending and activities is available in GC InfoBase.^{Footnote xli}

Financial statements and financial statements highlights

Financial statements

ACOA’s financial statements (unaudited) for the year ended March 31, 2023, are available on the department’s website. ^{Footnote xlii}

Financial statement highlights

Condensed Statement of Operations (unaudited) for the year ended March 31, 2023 (dollars)

The 2022-23 planned results information is provided in ACOA’s Future-Oriented Statement of Operations and Notes 2022-23.^{Footnote xliii}

Condensed Statement of Financial Position (unaudited) as of March 31, 2023 (dollars)

The 2022-23 planned results information is provided in ACOA’s Future-Oriented Statement of Operations and Notes 2022-23.^{Footnote xliv}

Corporate information

Organizational profile

Appropriate minister: The Honourable Gudie Hutchings, MP

Institutional head: Catherine Blewett, President

Ministerial portfolio: Atlantic Canada Opportunities Agency

Enabling instrument[s]: Part I of the Government Organization Act, Atlantic Canada 1987, R.S.C., 1985, c. 41 (4th Supp.), also known as the Atlantic Canada Opportunities Agency Act. See the Department of Justice Canada website^{Footnote xlv} for more information.

Year of incorporation / commencement: 1987

Raison d’être, mandate and role: who we are and what we do

“Raison d’être, mandate and role: who we are and what we do” is available on ACOA’s website.^{Footnote xlvi}

For more information on the department’s organizational mandate letter commitments, see the Minister's mandate letter. ^{Footnote xlvii}

Operating context

Information on the operating context is available on ACOA’s website.^{Footnote xlviii}

Reporting framework

ACOA’s departmental results framework and program inventory of record for 2022-23 are shown below.

Supporting information on the program inventory

Financial, human resources and performance information for ACOA’s program inventory is available in GC InfoBase.^{Footnote xlix}

Supplementary information tables

The following supplementary information tables are available on ACOA’s website:

• Reporting on green procurement^{Footnote l}
• Details on transfer payment programs^{Footnote li}
• Gender-based analysis plus^{Footnote lii}
• Response to parliamentary committees and external audits^{Footnote liii}

Federal tax expenditures

The tax system can be used to achieve public policy objectives through the application of special measures such as low tax rates, exemptions, deductions, deferrals and credits. The Department of Finance Canada publishes cost estimates and projections for these measures each year in the Report on Federal Tax Expenditures.^{Footnote liv} This report also provides detailed background information on tax expenditures, including descriptions, objectives, historical information and references to related federal spending programs as well as evaluations and GBA Plus of tax expenditures.

Organizational contact information

Mailing address:

Atlantic Canada Opportunities Agency
P.O. Box 6051
Moncton, New Brunswick, E1C 9J8

Telephone:

General inquiries: 506-851-2271
Toll free (Canada and the United States): 1-800-561-7862
TTY: 7-1-1

Fax:

General: 506-851-7403
Secure: 506-857-1301

Email: acoa.information.apeca@acoa-apeca.gc.ca

Website: https://www.canada.ca/en/atlantic-canada-opportunities.html

Appendix: definitions

appropriation(crédit)

Any authority of Parliament to pay money out of the Consolidated Revenue Fund.

budgetary expenditures (dépenses budgétaires)

Operating and capital expenditures; transfer payments to other levels of government, organizations or individuals; and payments to Crown corporations.

core responsibility(responsabilité essentielle)

An enduring function or role performed by a department. The intentions of the department with respect to a core responsibility are reflected in one or more related departmental results that the department seeks to contribute to or influence.

Departmental Plan (plan ministériel)

A report on the plans and expected performance of an appropriated department over a 3-year period. Departmental Plans are usually tabled in Parliament each spring.

departmental priority (priorité)

A plan or project that a department has chosen to focus and report on during the planning period. Priorities represent the things that are most important or what must be done first to support the achievement of the desired departmental results.

departmental result (résultat ministériel)

A consequence or outcome that a department seeks to achieve. A departmental result is often outside departments’ immediate control, but it should be influenced by program-level outcomes.

departmental result indicator (indicateur de résultat ministériel)

A quantitative measure of progress on a departmental result.

departmental results framework (cadre ministériel des résultats)

A framework that connects the department’s core responsibilities to its departmental results and departmental result indicators.

Departmental Results Report (rapport sur les résultats ministériels)

A report on a department’s actual accomplishments against the plans, priorities and expected results set out in the corresponding Departmental Plan.

full-time equivalent (équivalent temps plein)

A measure of the extent to which an employee represents a full person-year charge against a departmental budget. For a particular position, the full-time equivalent figure is the ratio of number of hours the person works divided by the standard number of hours set out in the person’s collective agreement.

gender-based analysis plus (GBA Plus) (analyse comparative entre les sexes plus [ACS Plus])

An analytical tool used to support the development of responsive and inclusive policies, programs and other initiatives; and understand how factors such as sex, race, national and ethnic origin, Indigenous origin or identity, age, sexual orientation, socio-economic conditions, geography, culture and disability, impact experiences and outcomes, and can affect access to and experience of government programs.

government-wide priorities (priorités pangouvernementales)

For the purpose of the 2022–23 Departmental Results Report, government-wide priorities are the high-level themes outlining the government’s agenda in the November 23, 2021, Speech from the Throne: building a healthier today and tomorrow; growing a more resilient economy; bolder climate action; fighter harder for safer communities; standing up for diversity and inclusion; moving faster on the path to reconciliation; and fighting for a secure, just and equitable world.

horizontal initiative (initiative horizontale)

An initiative where two or more federal organizations are given funding to pursue a shared outcome, often linked to a government priority.

non-budgetary expenditures (dépenses non budgétaires)

Net outlays and receipts related to loans, investments and advances, which change the composition of the financial assets of the Government of Canada.

performance (rendement)

What an organization did with its resources to achieve its results, how well those results compare to what the organization intended to achieve, and how well lessons learned have been identified.

performance indicator (indicateur de rendement)

A qualitative or quantitative means of measuring an output or outcome, with the intention of gauging the performance of an organization, program, policy or initiative respecting expected results.

performance reporting (production de rapports sur le rendement)

The process of communicating evidence-based performance information. Performance reporting supports decision making, accountability and transparency.

plan (plan)

The articulation of strategic choices, which provides information on how an organization intends to achieve its priorities and associated results. Generally, a plan will explain the logic behind the strategies chosen and tend to focus on actions that lead to the expected result.

planned spending (dépenses prévues)

For Departmental Plans and Departmental Results Reports, planned spending refers to those amounts presented in Main Estimates.

A department is expected to be aware of the authorities that it has sought and received. The determination of planned spending is a departmental responsibility, and departments must be able to defend the expenditure and accrual numbers presented in their Departmental Plans and Departmental Results Reports.

program (programme)

Individual or groups of services, activities or combinations thereof that are managed together within the department and focus on a specific set of outputs, outcomes or service levels.

program inventory (répertoire des programmes)

Identifies all the department’s programs and describes how resources are organized to contribute to the department’s core responsibilities and results.

result (résultat)

A consequence attributed, in part, to an organization, policy, program or initiative. Results are not within the control of a single organization, policy, program or initiative; instead they are within the area of the organization’s influence.

Indigenous business (enterprise autochtones)

For the purpose of the Directive on the Management of Procurement Appendix E: Mandatory Procedures for Contracts Awarded to Indigenous Businesses and the Government of Canada’s commitment that a mandatory minimum target of 5 percent of the total value of contracts is awarded to Indigenous businesses, an organization that meets the definition and requirements as defined by the Indigenous Business Directory.

statutory expenditures (dépenses législatives)

Expenditures that Parliament has approved through legislation other than appropriation acts. The legislation sets out the purpose of the expenditures and the terms and conditions under which they may be made.

target (cible)

A measurable performance or success level that an organization, program or initiative plans to achieve within a specified period. Targets can be either quantitative or qualitative.

voted expenditures (dépenses votées)

Expenditures that Parliament approves annually through an appropriation act. The vote wording becomes the governing conditions under which these expenditures may be made.