Details on transfer payment programs of $5 million or more for 2014-15
Atlantic Innovation Fund (voted)
Start date: May 10, 2001
End date: Ongoing
Fiscal year for terms and conditions: 2009-10
Strategic Outcome: A competitive Atlantic Canadian economy
Link to department’s Program Alignment Architecture: 1.1 Enterprise Development; 1.1.1 Innovation and Commercialization
Description: The Atlantic Innovation Fund (AIF) focuses on increasing research and development (R&D) linked to economic development and commercialization objectives in areas that are of strategic importance to the region – in particular, the growth of strategic sectors/clusters. The AIF emphasizes building Atlantic Canada’s system of innovation, including components that bridge the gap between research institutions and the marketplace. It encourages synergies among the various components of this system through partnerships, alliances and networks. Furthermore, the AIF supports research and development projects that focus on the areas of natural sciences, applied sciences, and social sciences and humanities, where these are linked explicitly to the development of technology-based products, processes or services, or their commercialization, thereby strengthening the region’s system of innovation. More information can be found on the Agency’s website.
Contributions to not-for-profit organizations are non-repayable.
Contributions to for-profit businesses to fund R&D projects that involve the commercialization of a product, process, technology or service are repayable, either conditionally or unconditionally.
Results achieved: In 2014-15, the Agency implemented enhancements to the AIF that included moving the program to a continuous intake of project proposals and streamlining the approval process to make it more responsive to businesses; increasing the emphasis on commercialization by focusing on technology soundness while continuing to support breakthrough science; improving SME access to the program by lowering the commercial project threshold from $1 million to $500,000; and communicating changes to potential clients.
During this transition year with changes to the AIF, the Agency has approved $10 million in funding to research, develop and integrate pest control techniques and products to manage and suppress the outbreak of the spruce budworm population. The funding allowed for the leveraging of $8.4 million from the private sector, universities and research institutes, other federal programs and provincial governments.
Comments on variance: Because of project delays, actual spending under the AIF was less than expected.
Audits completed or planned: No audits were planned or completed during fiscal year 2014-15.
Evaluations completed or planned:
Completed
- Evaluation of the sub-program Innovation and Commercialization, which included an assessment of the AIF (January 2015).
Engagement of applicants and recipients: Since the public launch of the program enhancements, the Agency has undertaken a concerted outreach campaign in order to further raise awareness and understanding of ACOA’s enhanced innovation programming, which included regional information outreach sessions for prospective clients and social media activities.
(dollars)
| 2012-13 Actual Spending | 2013-14 Actual Spending | 2014-15 Planned Spending | 2014-15 Total Authorities Available for Use | 2014-15 Actual Spending (Authorities Used) | Variance (2014-15 Actual minus 2014-15 Planned) | |
|---|---|---|---|---|---|---|
| Total grants | 0 | 0 | 0 | 0 | 0 | 0 |
| Total contributions | 50,327,749 | 47,766,112 | 50,000,000 | 51,100,000 | 45,027,132 | (4,972,868) |
| Total other types of transfer payments | 0 | 0 | 0 | 0 | 0 | 0 |
| Total program | 50,327,749 | 47,766,112 | 50,000,000 | 51,100,000 | 45,027,132 | (4,972,868) |
Business Development Program (voted)
Start date: July 25, 1995
End date: Ongoing
Fiscal year for terms and conditions: 2010-11
Strategic Outcome: A competitive Atlantic Canadian economy
Link to department’s Program Alignment Architecture: 1.1 Enterprise Development; 1.1.1 Innovation and Commercialization; 1.1.2 Productivity and Growth; 1.1.3 International Business Development; 1.2 Community Development; 1.2.1 Community Investment; 1.2.2 Community-based Business Development; 1.3 Policy, Advocacy and Coordination; 1.3.1 Policy
Description: Through its Business Development Program (BDP), ACOA works to create opportunities for economic growth in Atlantic Canada by helping small and medium-sized enterprises (SMEs) become more competitive, innovative and productive. The Agency also works with communities to develop and diversify local economies, and it champions the strengths of the region in partnership with Atlantic Canadians.
The objectives of the BDP are to:
- improve the growth and competitiveness of Atlantic SMEs;
- provide for dynamic and sustainable communities in Atlantic Canada; and
- provide for initiatives that strengthen the Atlantic economy.
In general, contributions to for-profit businesses are repayable, either conditionally or unconditionally. Under some of the BDP’s elements, non-repayable contributions to for-profit businesses may be permitted.
Contributions to not-for-profit organizations are generally non-repayable, but are conditionally repayable if a project results in what would normally be considered a commercial activity.
Results achieved: In 2014-15, through the BDP, the Agency approved $127.3 million in funding for 914 projects to help SMEs innovate, commercialize, expand, modernize, develop productivity, improve business skills and increase export activity.
ACOA investments in productivity and growth projects enabled SMEs to improve their productivity, acquire technology, expand and/or modernize their operations, hire new employees, train existing employees, implement new efficiencies and reduce waste, thereby stimulating growth and competitiveness. With these investments, SMEs were able to implement quality and productivity improvement programs, diversify their product lines, expand their customer base, reduce operating costs, and capitalize on procurement and development opportunities arising from major projects such as the National Shipbuilding Procurement Strategy.
ACOA displayed strong leadership, rallying federal and provincial partners behind an integrated approach to international business development. This integrated approach allowed the Agency to promote trade, to attract foreign direct investment, to encourage the commercialization of technologies developed by Atlantic Canada’s researchers and SMEs, and to project a favourable image of the region in foreign markets. ACOA’s investments facilitated SME participation in trade missions to Central and South America, the Caribbean, the United States, Asia (China, India and South Korea) and Europe.
ACOA’s investments also contributed to 17 foreign direct investment transactions.
In 2014-15, ACOA worked in partnership with communities and stakeholders in strategic investments that reflected economic development plans and priorities elaborated and implemented by the region’s rural and urban communities. The BDP allowed the Agency to support the development of communities across Atlantic Canada by approving 253 community development projects worth $21.5 million in investments.
Comments on variances:
Enterprise Development – There continues to be strong demand for BDP programming. Additional funding was made available from other programs such as the AIF and from additional spending authorities.
Community Development – During the year, regional offices responded to changing priorities by allocating funding to Enterprise Development from Community Development.
Policy, Advocacy and Coordination – During the year, $2.8 million was reallocated to Policy, Advocacy and Coordination from Enterprise Development to provide funding for the Halifax International Security Forum.
Audits completed or planned: No audits were planned or completed during fiscal year 2014-15.
Evaluations completed or planned:
Planned
- Meta Evaluation of Tourism, which will include an assessment of the Business Development Program (to be completed January 2016).
In progress
- Evaluation of the sub-program Productivity and Growth, which includes an assessment of the Business Development Program (to be completed September 2015).
Completed
- Evaluation of the program Policy, Advocacy and Coordination, which included an assessment of the Business Development Program (March 2012).
- Evaluation of the sub-programs Community Mobilization and Community Investment, which included an assessment of the Business Development Program (February 2014).
- Evaluation of the sub-program Community-based Business Development, which included an assessment of the Business Development Program (June 2014).
- Evaluation of the sub-program Innovation and Commercialization, which included an assessment of the Business Development Program (January 2015).
- Evaluation of the sub-program International Business Development, which included an assessment of the Business Development Program (May 2015).
Note: ACOA evaluations are aligned to the program alignment architecture (not to transfer payment programs). Collectively, the above evaluations represent 100% coverage of the BDP transfer payment program.
Engagement of applicants and recipients: ACOA’s transfer payment programs (including the BDP) are designed, delivered and managed in such a way that they remain client-focused, are relevant to applicants’ and recipients’ needs, and achieve the expected results for which they are designed. Engaging key stakeholders in discussions regarding the creation or review of ACOA’s programming is part of the Agency’s operations. To ensure the ongoing relevance of programming, the Agency solicits feedback from clients and stakeholders on an ongoing basis, whether through information sharing, consultations or collaborations.
In ensuring that BDP elements (business establishment and expansion, innovation, skills development and trade activities) are designed for continuous improvement to support expected outcomes, ACOA engages the following stakeholders: the business sector; community-based economic development organizations and volunteer groups; universities and colleges; research institutes; other levels of government; and First Nation communities.
Additionally, BDP information is continuously shared with applicants and recipients through ACOA’s website and outreach events in communities across Atlantic Canada.
The Agency also consults its applicants and clients through periodic satisfaction surveys. These surveys provide the Agency with information on the importance of various service features and on areas for improvement.
Program: Enterprise Development (dollars)
| 2012-13 Actual Spending | 2013-14 Actual Spending | 2014-15 Planned Spending | 2014-15 Total Authorities Available for Use | 2014-15 Actual Spending (Authorities Used) | Variance (2014-15 Actual minus 2014-15 Planned) | |
|---|---|---|---|---|---|---|
| Total grants | 253,974 | 300,055 | 1,000,000 | 1,000,000 | 150,521 | (849,479) |
| Total contributions | 105,392,611 | 105,036,876 | 88,288,293 | 98,172,350 | 102,113,788 | 13,825,495 |
| Total other types of transfer payments | 0 | 0 | 0 | 0 | 0 | 0 |
| Total program | 105,646,585 | 105,337,031 | 89,288,293 | 99,172,350 | 102,264,309 | 12,976,016 |
Program: Community Development (dollars)
| 2012-13 Actual Spending | 2013-14 Actual Spending | 2014-15 Planned Spending | 2014-15 Total Authorities Available for Use | 2014-15 Actual Spending (Authorities Used) | Variance (2014-15 Actual minus 2014-15 Planned) | |
|---|---|---|---|---|---|---|
| Total grants | 249,120 | 167,276 | 1,000,000 | 1,000,000 | 242,420 | (757,582) |
| Total contributions | 31,264,676 | 22,746,556 | 23,340,000 | 23,540,000 | 21,295,418 | (3,044,582) |
| Total other types of transfer payments | 0 | 0 | 0 | 0 | 0 | 0 |
| Total program | 31,513,796 | 22,913,832 | 24,340,000 | 24,540,000 | 21,537,838 | (3,802,164) |
Program: Policy, Advocacy and Coordination (dollars)
| 2012-13 Actual Spending | 2013-14 Actual Spending | 2014-15 Planned Spending | 2014-15 Total Authorities Available for Use | 2014-15 Actual Spending (Authorities Used) | Variance (2014-15 Actual minus 2014-15 Planned) | |
|---|---|---|---|---|---|---|
| Total grants | 30,000 | 16,944 | 0 | 0 | 50,000 | 50,000 |
| Total contributions | 280,737 | 800,927 | 400,000 | 400,000 | 3,216,434 | 2,816,434 |
| Total other types of transfer payments | 0 | 0 | 0 | 0 | 0 | 0 |
| Total program | 310,737 | 817,871 | 400,000 | 400,000 | 3,266,434 | 2,866,434 |
| Total all programs | 137,471,118 | 129,068,734 | 114,028,293 | 124,112,350 | 127,068,581 | 12,040,286 |
Community Futures Program (voted)
Start date: May 18, 1995
End date: Ongoing
Fiscal year for terms and conditions: 2009-10
Strategic Outcome: A competitive Atlantic Canadian economy
Link to department’s Program Alignment Architecture: 1.2 Community Development; 1.2.2 Community-based Business Development
Description: The program’s purpose is to help communities develop and implement local solutions to local problems. It provides non-repayable contributions to community futures organizations (CFOs), also known in Atlantic Canada as Community Business Development Corporations (CBDCs), and their associations. Community-based governance is at the heart of the Community Futures (CF) Program; and the CBDCs, managed by local volunteer board members who make decisions that shape these organizations, affect the lives of entrepreneurs and impact their communities. CBDCs are legally incorporated, not-for-profit, autonomous organizations that make decisions at a local level. They provide financial and technical support to SMEs and social enterprises in rural areas. CBDCs manage over 5,700 loans to rural businesses, totalling over $246 million in investments. More information on services provided through the CBDCs can be found on ACOA’s website.
Results achieved: In 2014-15, CBDCs continued to provide an essential source of investment capital focused on rural businesses as well as business counselling and skills development. CBDCs assisted 1,240 businesses through their investment fund by approving 1,330 loans, representing a total direct investment in local SMEs of $70 million.[1] These investments contributed to the creation of 1,430 new jobs in rural communities in Atlantic Canada.[2] The Agency maximized the use of funds available to CBDCs as recipients of CF funding in accordance with the Community Futures of Tomorrow model. ACOA continued to collaborate with the CBDC network to enhance governance practices when needed and provided ongoing training to board members. In 2014-15, a total of 11 board training sessions were completed across the region with a total of 152 participants.
Comments on variance: n/a
Audits completed or planned: No audits were planned or completed during fiscal year 2014-15.
Evaluations completed or planned:
Completed
- Evaluation of the sub-program Community-based Business Development, which included an assessment of the Community Futures Program (June 2014).
Engagement of applicants and recipients: The Agency continued to engage with and align its support to the CBDC network as part of the implementation of the Community Futures of Tomorrow model under a collaborative joint oversight committee. This maximized all resources available, including the funds provided by the CF program. With a view to maintaining the long-term viability of the CF program, the committee acts as a governance body by ensuring that the model’s objectives are being managed collaboratively among individual CBDCs, the Atlantic Association of CBDCs and ACOA. As part of ACOA’s due diligence processes and its accountability to Parliament, the Agency has a responsibility to ensure that appropriate governance practices are in place with respect to organizations to which it provides operational support. ACOA continues to collaborate with the CBDC network and individual organizations to enhance governance practices, where required, and provide ongoing training to board members to ensure a continuous understanding of effective governance and the importance of achieving desired results the right way.
ACOA continues to work with other federal regional development agencies, the Community Futures Network of Canada (CFNC) and the Atlantic CBDCs to increase integrity, consistency and the collection of performance results, and to implement the CF program’s performance measurement strategy. In collaboration with other federal government departments responsible for the management of the program, ACOA presents performance results for 2014-15 and continues to engage the CFNC in refining the collection and use of performance information needed by all stakeholders, including the CBDCs.
(dollars)
| 2012-13 Actual Spending | 2013-14 Actual Spending | 2014-15 Planned Spending | 2014-15 Total Authorities Available for Use | 2014-15 Actual Spending (Authorities Used) | Variance (2014-15 Actual minus 2014-15 Planned) | |
|---|---|---|---|---|---|---|
| Total grants | 0 | 0 | 0 | 0 | 0 | 0 |
| Total contributions | 12,582,399 | 12,614,168 | 12,642,000 | 12,642,000 | 12,664,849 | 22,849 |
| Total other types of transfer payments | 0 | 0 | 0 | 0 | 0 | 0 |
| Total program | 12,582,399 | 12,614,168 | 12,642,000 | 12,642,000 | 12,664,849 | 22,849 |
Innovative Communities Fund (voted)
Start date: April 1, 2005
End date: Ongoing
Fiscal year for terms and conditions: 2009-10
Strategic Outcome: A competitive Atlantic Canadian economy
Link to department’s Program Alignment Architecture: 1.2 Community Development; 1.2.1 Community Investment; 1.2.2 Community-based Business Development
Description: The Innovative Communities Fund (ICF) is designed to make non‑repayable contributions to strategic projects that build the economies of Atlantic Canada’s communities. The ICF focuses on investments that lead to long‑term employment and economic capacity building in rural communities. Urban initiatives that stimulate the competitiveness and vitality of rural communities may also be considered on a select basis.
Results achieved: In 2014-15, ACOA continued to work with communities and stakeholders on strategic projects related to economic development capacity as well as business-sector development. These efforts resulted in the Agency funding 88 projects under the ICF. These projects had a total project cost of $103.2 million, with an ACOA contribution of $35.4 million and $67.8 million leveraged from other sources. A total of 247 partners collaborated on the various investments made throughout Atlantic Canada under the program.
Comments on variance: In 2014-15, the Agency flowed some funds for projects that incurred costs that were anticipated for future fiscal years. Furthermore, a few projects were approved late in 2014-15. These projects were able to complete some work before the end of 2014-15 and the Agency disbursed on eligible costs for work undertaken.
Audits completed or planned: No audits were planned or completed during fiscal year 2014-15.
Evaluations completed or planned:
Planned
- Meta Evaluation of Tourism, which will include an assessment of the Innovative Communities Fund (to be completed January 2016).
Completed
- Evaluation of the sub-programs Community Mobilization and Community Investment, which included an assessment of the Innovative Communities Fund (February 2014).
- Evaluation of the sub-program Community-based Business Development, which included an assessment of the Innovative Communities Fund (June 2014).
Note: ACOA evaluations are conducted according to the program alignment architecture (not the transfer payment programs). Collectively, the above evaluations represent 100% coverage of the ICF transfer payment program.
Engagement of applicants and recipients:
ACOA’s transfer payment programs (including the ICF) are designed, delivered and managed in such a way that they remain client-focused, are relevant to applicants’ and recipients’ needs, and achieve the expected results for which they are designed.
Under the ICF, ACOA continues to proactively engage with its partners and stakeholders, including community organizations, educational institutions, official language minority communities, Aboriginal communities and other levels of government through discussions regarding strategic community development opportunities. These discussions ensure that the Agency’s investments continue to respond to the evolving economic needs and priorities of Atlantic Canadian communities.
Additionally, ICF information is continuously shared with applicants and recipients through ACOA’s website.
(dollars)
| 2012-13 Actual Spending | 2013-14 Actual Spending | 2014-15 Planned Spending | 2014-15 Total Authorities Available for Use | 2014-15 Actual Spending (Authorities Used) | Variance (2014-15 Actual minus 2014-15 Planned) | |
|---|---|---|---|---|---|---|
| Total grants | 0 | 0 | 0 | 0 | 0 | 0 |
| Total contributions | 27,965,488 | 34,508,394 | 39,000,000 | 39,179,398 | 41,646,990 | 2,646,990 |
| Total other types of transfer payments | 0 | 0 | 0 | 0 | 0 | 0 |
| Total program | 27,965,488 | 34,508,394 | 39,000,000 | 39,179,398 | 41,646,990 | 2,646,990 |
[1] Community Business Development Corporations E-Reports, April 2014 to March 2015.