2014-15 Departmental Performance Report
Ministers’ message and section I
Ministers’ Message
We are pleased to report on the Atlantic Canada Opportunities Agency’s (ACOA) key activities in 2014‑15.
Our overarching goals within the Innovation, Science and Economic Development portfolio are to help Canadian businesses grow, innovate and export so that they can spur economic development and create good quality jobs and wealth for Canadians in all regions across the country; to help small businesses grow through trade and innovation; to promote increased tourism to Canada; to promote and support scientific research and the integration of scientific considerations in our investment and policy choices. We are committed to working closely with colleagues and stakeholders from all of these diverse fields to achieve these objectives.
We are pleased to present the 2014-15 Departmental Performance Report for ACOA.
The Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development
The Honourable Kirsty Duncan
Minister of Science
The Honourable Bardish Chagger, Minister of Small Business and Tourism
Section I: organizational expenditure overview
Organizational profile
Appropriate Minister:
The Honourable Navdeep Bains, PC, MP
- The Honourable Bernard Valcourt, PC, QC, MP (responsible Minister for 2014-15)
- The Honourable Rob Moore, PC, MP (responsible Minister of State for 2014-15)
Institutional Head:
Mr. Paul J. LeBlanc, President
Ministerial Portfolio:
Atlantic Canada Opportunities Agency
Year of Incorporation:
1987
Enabling Instrument:
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 website for more information.
Organizational Context
Raison d’être
Established in 1987 (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), the Atlantic Canada Opportunities Agency (ACOA) is the federal department responsible for the Government of Canada’s economic development efforts in the provinces of New Brunswick, Prince Edward Island, Nova Scotia, and Newfoundland and Labrador.
The Minister Innovation, Science and Economic Development is responsible for this organization.
ACOA works to create opportunities for economic growth in Atlantic Canada by helping businesses become more competitive, innovative and productive, by working with diverse communities to develop and diversify local economies, and by championing the strengths of Atlantic Canada. Together with Atlantic Canadians, ACOA is building a stronger economy.
Responsibilities
ACOA plays an important role in developing and supporting policies and programs that strengthen the region’s economy. Its responsibilities are stated in the Agency’s legislation, which mandates the organization “to increase opportunity for economic development in Atlantic Canada and, more particularly, to enhance the growth of earned incomes and employment opportunities in that region.”[i] Although the Agency’s policies and program tools have evolved since its inception, the overall goal remains constant. ACOA is dedicated to helping the Atlantic region realize its full economic potential in terms of productivity, innovation, competitiveness and growth. This is achieved by addressing structural changes in the economy, helping communities and businesses to overcome challenges, and capitalizing on opportunities. ACOA is committed to helping the region build its capacity and make the transition to a stronger economy.
The Agency provides services through its head office in Moncton, N.B., and throughout the four Atlantic provinces, with a regional office located in each of the four provincial capitals and 23 local field offices. Through its Ottawa office, ACOA ensures that Atlantic Canada’s interests are understood reflected in the policies and programs developed by other departments and agencies of the federal government.
Strategic Outcome and Program Alignment Architecture
ACOA’s strategic outcome – a competitive Atlantic Canadian economy – and its program alignment architecture (PAA) can be found below. The PAA is based on the results of policy research and analysis, the periodic assessment of program relevance and performance, ongoing dialogue with stakeholders in the region, and the priorities and directions of the Government of Canada.
1. Strategic Outcome: A competitive Atlantic Canadian economy
1.1 Program: Enterprise Development
1.1.1 Sub-Program: Innovation and Commercialization
1.1.2 Sub-Program: Productivity and Growth
1.1.3 Sub-Program: International Business Development
1.2 Program: Community Development
1.2.1 Sub-Program: Community Mobilization
1.2.2 Sub-Program: Community-based Business Development
1.2.3 Sub-Program: Community Investment
1.2.4 Sub-Program: Infrastructure Programming
1.3 Program: Policy, Advocacy and Coordination
1.3.1 Sub-Program: Policy
1.3.2 Sub-Program: Advocacy
1.3.3 Sub-Program: Coordination
Internal Services
Organizational Priorities
All organizational priorities support the Agency’s strategic outcome: a competitive Atlantic Canadian economy. This outcome reflects the Agency’s legislative purpose to enhance the growth of earned incomes and employment opportunities and to advocate on behalf of Atlantic Canada, affecting national policy.
Priority 1 | Type[ii] | Program |
---|---|---|
Focus ACOA’s programs and services on initiatives that encourage Atlantic Canadian businesses to become more innovative, productive and competitive in the global marketplace. | Ongoing | Enterprise Development, with support from Community Development and Policy, Advocacy and Coordination |
Summary of Progress | ||
What progress has been made toward this priority? In 2014-15, ACOA reviewed its innovation programming in order to remain at the forefront of business innovation policy while enabling the region to best respond to strategic opportunities for growth. This led to the announcement in July 2014 of a streamlined application process for Agency programs and a more responsive Atlantic Innovation Fund. The Agency also completed an evaluation of the Innovation and Commercialization sub‑program. It demonstrated a continued need for this sub-program and confirmed its alignment with federal roles and responsibilities. The sub-program stimulated investments in applied research and development (R&D) and commercialization activities, generated employment, facilitated skills development for students, helped develop partnerships and alliances, and led to the creation of new technologies, products, processes and services. Throughout the year, ACOA supported a broad range of projects to enhance the competitiveness and productivity of businesses, leading to improved growth and increased wealth, thus ensuring dynamic and sustainable communities in Atlantic Canada.
|
Priority 2 | Type | Program |
---|---|---|
Develop and implement strategies, in response to the distinct economic needs and opportunities of Atlantic Canadian communities, with a particular focus on rural businesses. | Ongoing | Community Development, with support from Enterprise Development and Policy, Advocacy and Coordination |
Summary of Progress | ||
What progress has been made toward this priority? In 2014-15, ACOA worked closely with numerous stakeholders to identify and develop key initiatives to strengthen and enhance the economic foundation and the sustainability of communities throughout Atlantic Canada.
|
Priority 3 | Type | Program |
---|---|---|
Provide leadership through coordination, engagement and advocacy with business, government and other stakeholders throughout the region and with key decision-makers in Ottawa so that businesses are able to capitalize on emerging opportunities and address key challenges. | Previously committed to | Policy, Advocacy and Coordination, with support from Enterprise Development and Community Development |
Summary of Progress | ||
What progress has been made toward this priority? In 2014-15, ACOA conducted rigorous analysis and research to ensure the Atlantic region’s economy capitalized on opportunities. ACOA built engagement and developed strategies to address opportunities and challenges in areas such as innovation, community development and the energy sector, including clean energy, major projects, international business development, local infrastructure, resource sectors and key growth sectors such as aerospace and defence. Examples include:
|
Priority 4 | Type | Program |
---|---|---|
Continually improve the internal management of the organization and maintain employee engagement to excel in serving Canadians. | Ongoing | Internal Services |
Summary of Progress | ||
What progress has been made toward this priority? In 2014-15, ACOA implemented transformational and organizational initiatives to strengthen and improve the Agency’s capacity to deliver excellent programs and services and to seek opportunities for increased collaboration. For example:
ACOA ensured appropriate mitigation of the Agency’s key risks. The Agency promoted and strengthened risk management and results-based management capacity and culture within the organization by ensuring that risk management was integrated into the Agency’s planning and decision-making process. The implementation of ACOA’s Values and Ethics Strategy supported the objective of ensuring that values and ethics remain at the foundation of the Agency’s corporate culture and promoting open dialogue at all levels of the Agency. ACOA has maintained strong HR practices by:
Throughout 2014-15, the Agency continued to actively support the Blueprint 2020 initiative. ACOA’s pursuit of the Blueprint 2020 vision has become a cross-Agency endeavour, spawning new, employee-driven initiatives with a common goal of making employee engagement “business as usual” while seeking out efficiencies and streamlining processes in order to deliver the best service possible to Atlantic Canadians. |
Risk Analysis
Risk | Risk Response Strategy | Link to PAA |
---|---|---|
Portfolio Management There is a risk that existing capacity for project selection, evaluation, monitoring and portfolio management activities may not be sufficient to fully achieve program objectives, which could impact on the Agency’s overall effectiveness. |
ACOA improved work processes and enhanced guidance and reference materials that support program delivery. The Agency expanded the availability and adequacy of tools and frameworks to better support monitoring and oversight of portfolio activities. Continued focus was placed on training activities, sharing lessons learned and enhancing integration and collaboration across the Agency. The Agency also continued to develop and enhance dashboards to support management information needs. | Enterprise Development; Community Development |
Organizational Change Management There is a risk that the Agency’s efforts to manage significant ongoing change may not be sufficient to sustain productivity, effectiveness and employee engagement. |
ACOA supported opportunities for dialogue and engagement around change management, including ongoing implementation of Blueprint 2020 initiatives. The Agency continued to integrate change management principles into its planning and management approach. The Agency ensured that managers were properly equipped to manage performance, engage employees and assume responsibilities resulting from organizational changes. The Agency created new working groups to ensure alignment with new and future Treasury Board Secretariat directives. Dialogue, collaboration and a high level of employee engagement was also encouraged through the sound use of technology and social media. Finally, frameworks, tools and processes were improved through employee-driven initiatives (e.g. kaizen events) as well as collaborations with other government departments. This contributed to efficiency, productivity and effectiveness in program delivery and internal operations. | Enterprise Development; Community Development; Policy, Advocacy and Coordination; Internal Services |
Information Tools and Systems There is a risk that an up-to-date suite of modern, compatible information tools and systems may not be developed and implemented in a timely manner, which may affect the Agency’s productivity. |
The Agency continued to focus on enhancing internal communication to ensure understanding of business and information needs as well as capacity. The use of existing systems and tools was optimized through training and awareness, collaboration with other government departments and enhanced internal communications. | Enterprise Development; Community Development; Policy, Advocacy and Coordination; Internal Services |
External Factors
After posting a solid performance in 2013 due to a rebound in crude oil production and business investment, Atlantic Canada’s real gross domestic product (GDP) moderated in 2014. Atlantic Canada’s real GDP decreased by 0.2% in 2014,[iv] compared to an average increase of 2.4%[v] nationally, mainly due to weaker economic activity in Newfoundland and Labrador resulting from lower production of oil and iron ore. Economic growth in the other three Atlantic provinces improved, with real GDP advancing by a combined 0.9%.[vi]
The world economy continued to expand in 2014. However, economic performance remained uneven across major economies. Growth in advanced economies picked up in 2014, while growth in emerging economies decelerated slightly. Notwithstanding, Atlantic Canadian exports increased in 2014, with Nova Scotia registering the largest gain in terms of commodity exports nationally.
Additionally, increased global competition is requiring businesses in Atlantic Canada to become more competitive and productive. The R&D performance in Atlantic Canada (an indicator in understanding innovation and productivity levels) rose by an annual average of 4.1% from 2002 to 2012, exceeding the national increase of 2.9% – with improvement occurring in the private and higher education sectors.[vii]
Internal Factors
During fiscal year 2014-15, ACOA focused on creating an environment in which both opportunities and challenges could be addressed. With a focus on innovation and continuous improvement, a strengthened risk management function and an alignment with the whole-of-government approach, ACOA was able to deliver its programs and services while ensuring progress toward its strategic outcome and organizational priorities.
Actual Expenditures
Budgetary Financial Resources (dollars)
2014-15 Main Estimates |
2014-15 Planned Spending |
2014-15 Total Authorities Available for Use |
2014-15 Actual Spending (authorities used) |
Difference: (actual minus planned) |
---|---|---|---|---|
288,486,384 | 288,486,384 | 308,113,877 | 305,273,091 | 16,786,707 |
Human Resources (Full-Time Equivalents – FTEs)
2014-15 Planned |
2014-15 Actual |
Difference (actual minus planned) |
---|---|---|
566 | 570 | 4 |
Budgetary Performance Summary for Strategic Outcome and Programs (dollars)
Strategic Outcome, Programs, and Internal Services |
2014-15 Main Estimates |
2014-15 Planned Spending |
2015-16 Planned Spending |
2016-17 Planned Spending |
2014-15 Total Authorities Available for Use |
2014-15 Actual Spending (authorities used) |
2013-14 Actual Spending (authorities used) |
2012-13 Actual Spending (authorities used) |
---|---|---|---|---|---|---|---|---|
Strategic Outcome 1: A competitive Atlantic Canadian economy | ||||||||
1.1 Enterprise Development | 164,581,549 | 164,581,549 | 171,221,612 | 169,937,144 | 180,673,455 | 173,992,156 | 180,674,018 | 179,856,451 |
1.2 Community Development | 87,408,010 | 87,408,010 | 89,727,582 | 89,368,367 | 90,536,110 | 90,659,999 | 94,103,327 | 88,520,093 |
1.3 Policy, Advocacy and Coordination | 11,351,591 | 11,351,591 | 11,774,749 | 11,715,659 | 10,851,899 | 12,444,235 | 10,634,165 | 12,403,955 |
Subtotal | 263,341,150 | 263,341,150 | 272,723,943 | 271,021,170 | 282,061,464 | 277,096,390 | 285,411,510 | 280,780,499 |
Internal Services Subtotal | 25,145,234 | 25,145,234 | 25,861,046 | 25,837,379 | 26,052,413 | 28,176,701 | 28,746,598 | 34,881,448 |
Total | 288,486,384 | 288,486,384 | 298,584,989 | 296,858,549 | 308,113,877 | 305,273,091 | 314,158,108 | 315,661,947 |
In 2014-15, planned spending of $288.5 million increased by $19.6 million, resulting in total authorities of $308.1 million. This occurred due to the following changes in authorities:
- Increases in authorities of $20.4 million
- $1.1 million in federal support for the Spruce Budworm Outbreak Intervention Initiatives – ACOA component;
- $2.5 million for funding to support projects in innovation, commercialization and community development in New Brunswick;
- $7.6 million made available from the collection of repayable contributions;
- $5.8 million resulting from the dissolution of ECBC; and
- $3.4 million for operating budget carried forward from 2013-14.
- Decrease in spending authorities
- $0.8 million related to the reorganization of regional federal councils.
From total authorities of $308.1 million, actual spending was $305.3 million, resulting in a surplus of $2.8 million. From this surplus, $1.0 million relates to a portion of the funding received to support projects in innovation, commercialization and community development in New Brunswick. Since one of these projects will not move forward, these funds will be lapsed. The balance of $1.8 million is part of the Agency’s operating budget carry forward.
Alignment of Spending with the Whole-of-Government Framework
Alignment of 2014-15 Actual Spending with the Whole of Government Framework (dollars)
Strategic Outcome | Program | Spending Area | Government of Canada Outcome | 2014-15 Actual Spending |
---|---|---|---|---|
A competitive Atlantic Canadian economy | 1.1 Enterprise Development | Economic Affairs | Strong Economic Growth | 173,992,156 |
1.2 Community Development | Economic Affairs | Strong Economic Growth | 90,659,999 | |
1.3 Policy, Advocacy and Coordination | Economic Affairs | Strong Economic Growth | 12,444,235 |
Total Spending, by Spending Area (dollars)
Spending Area | Total Planned Spending | Total Actual Spending |
---|---|---|
Economic Affairs | 263,341,150 | 277,096,390 |
Social Affairs | 0 | 0 |
International Affairs | 0 | 0 |
Government Affairs | 0 | 0 |
This graph illustrates the Agency’s actual spending from 2012-13 to 2014-15 and planned spending from 2015-16 to 2017-18.
The Agency’s planned spending levels stabilized in 2015-16 after declining since 2012‑13, largely due to the sunsetting of the Community Infrastructure Improvement Fund and as a result of the strategic savings identified in Budget 2011 and Budget 2012. The forecast spending levels will increase during 2016-17 and 2017-18 due to the funding received in support of the Canada 150 Community Infrastructure Program announced in Budget 2015. The Agency continues to identify and implement cost efficiencies as well as to improve the effectiveness of operations and programs to ensure value for taxpayers’ money.
Estimates by vote
For information on ACOA’s organizational voted and statutory expenditures, consult the Public Accounts of Canada 2015 on the website of Public Works and Government Services Canada
[i]Atlantic Canada Opportunities Agency Act, R.S.C., 1985, c. 41, 4th Supp.
- New: newly committed to for fiscal year 2014-15
- Previously committed to: committed to one or two fiscal years earlier (i.e. 2012-13 or 2013-14)
- Ongoing: committed to at least three fiscal years earlier (i.e. 2011-12 or earlier)
[iii] Gardner Pinfold Consultants Inc. and the Acadian Tidal Energy Institute, Value Proposition for Tidal Energy Development in Nova Scotia, Atlantic Canada and Canada, April 2015, prepared for the Offshore Energy Research Association.
[iv] Statistics Canada, Gross domestic product (GDP) at basic prices, by NAICS, Provincial and Territorial (Table 379‑0030). Data retrieved on May 12, 2015. Calculations by ACOA.
[v] Statistics Canada, Gross domestic product (GDP) at basic prices, by NAICS, Monthly (Table 379‑0031). Data retrieved on May 12, 2015. Calculations by ACOA.
[vi] Statistics Canada, Gross domestic product (GDP) at basic prices, by NAICS, Provincial and Territorial (Table 379‑0030). Data retrieved on May 12, 2015. Calculations by ACOA.
[vii] Statistics Canada, Gross domestic expenditures on research and development (Table 358-0001). Data retrieved on May 12, 2015. Calculations by ACOA.
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