Details on transfer payment programs of $5 million or more

 

Atlantic Innovation Fund - Voted

Start date: May 10, 2001

End date: Ongoing

Type of transfer payment: Contribution

Type of appropriation: Appropriated annually through Estimates

Fiscal year for terms and conditions: 2014-15

Strategic Outcome: A competitive Atlantic Canadian economy

Link to department’s Program Alignment Architecture: Enterprise Development, Innovation and Commercialization.

Description: The Atlantic Innovation Fund (AIF) makes strategic investments in research and development (R&D) initiatives in the area of natural and applied sciences, as well as in social sciences, humanities, and arts and culture. Projects are expected to result in the successful adaptation or development as well as commercialization of technology-based products, processes or services.

Contributions to not-for-profit organizations are non-repayable. Contributions to for-profit businesses are repayable, either conditionally or unconditionally.

Results achieved: In 2017-18, through the AIF, the Agency approved $36.6 million in funding for 11 projects toward total costs of $90.2 million. Total amount leveraged was $53.6 million, which includes the private sector, universities, Atlantic provincial governments and the federal government (including $1.1 million from national R&D programs). The proportion of amounts leveraged is significantly higher than usual due to one large project with total costs in excess of $30 million, with ACOA authorizing a $5 million contribution. Some of the AIF projects involved linkages between institutions, government entities and the private sector, with 18 key collaborations created.

Audits completed or planned: No audits were completed or planned during fiscal year 2017-18.

Evaluations completed or planned: No evaluations were completed or planned during fiscal year 2017-18.

Engagement of applicants and recipients: ACOA’s transfer payment programs (including the AIF) are designed, delivered and managed in such a way that they remain client-focused, are relevant to the applicants’ and recipients’ needs, and achieve the expected results for which they are designed. To ensure the ongoing relevance of the AIF programming, the Agency solicits feedback from clients and stakeholders and the AIF advisory board on an ongoing basis, whether through information sharing, consultations or collaborations. Additionally, AIF information is continuously shared with applicants and recipients through ACOA’s website and ongoing communication between AIF program delivery staff and clients.

(dollars)

Comments on variance: “Actual spending” was less than “planned spending” mostly due to delays encountered during the implementation of some AIF projects. In addition, some AIF funds were transferred to the Business Development Program transfer payment program in order to meet the increasing demand under that program.

Business Development Program - Voted

Start date: July 25, 1995

End date: Ongoing

Type of transfer payment: Grant and Contribution

Type of appropriation: Appropriated annually through Estimates

Fiscal year for terms and conditions: 2010-11

Strategic Outcome: A competitive Atlantic Canadian economy

Link to department’s Program Alignment Architecture: Enterprise Development; Innovation and Commercialization; Productivity and Growth; International Business Development; Community Development; Community Investment; Community-based Business Development; Policy, Advocacy and Coordination; Policy.

Description: Through the Business Development Program (BDP), the Agency 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 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 Canadian SMEs;
• provide for dynamic and sustainable communities in Atlantic Canada; and
• provide for initiatives that strengthen the Atlantic region’s 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:

Enterprise Development:

The expected result for 2017-18 was to improve growth and competitiveness of Atlantic Canadian SMEs. The Agency had targeted a survival rate of 10 percentage points higher for ACOA‑assisted firms. The result achieved was that ACOA‑assisted firms had survival rate 26 percentage points higher than firms that did not receive ACOA assistance. The Agency also targeted a labour productivity growth rate of 3 percentage points higher for ACOA-assisted firms. The result achieved was that ACOA-assisted firms had labour productivity growth 3.4 percentage points higher than firms not assisted by ACOA. The Agency surpassed its expected results for improving growth and competitiveness of Atlantic Canadian SMEs.

In 2017-18, through the BDP, the Agency approved $240.7 million in funding for 1,105 projects to help SMEs innovate, commercialize, expand, modernize, develop productivity, improve business skills and increase export activity. Of this amount, $234.8 million was for new projects toward costs of $585.7 million; every dollar invested by the Agency leveraged $1.49 from other sources, such as the private sector, universities and research institutes, national programs and Atlantic provincial governments.

The innovation projects contributed to strengthening the Atlantic Canadian innovation and commercialization capacity by leveraging $1.47 for every dollar invested by ACOA. These investments helped Atlantic Canadian SMEs increase their productivity and improve their competitive position by developing new products, services or processes, adapting technologies, leveraging additional private-sector investments, or commercializing their ideas.

ACOA investments of $85 million in 431 productivity and growth projects leveraged $2.08 for every dollar invested. These investments enabled SMEs to improve their productivity, acquire technology, expand or modernize their operations, hire new employees, train existing employees, implement new efficiencies and reduce waste, thereby stimulating growth and competitiveness. The SMEs were able to implement quality and productivity improvement programs, diversify their product lines, expand their customer base, and reduce operating costs.

ACOA’s efforts to promote trade and foreign direct investments and to project a favourable image of the region in foreign markets resulted in 15 foreign direct investment transactions being completed (deals closed). ACOA’s financial support contributed to bringing the project to fruition. Further, 80% of SMEs that participated in an international business development activity were able to expand their international sales within 12 months.

Community Development:

The Agency also contributed to the development of dynamic and sustainable communities in Atlantic Canada. The BDP improved community capacity to respond to economic and business development opportunities and challenges by leveraging $1.03 from other sources for every $1.00 invested by the Agency. This leveraging was accomplished through ACOA’s approval of $39.8 million in funding for new projects, toward total costs of $81.0 million.

Audits completed or planned: No audits were completed or planned during fiscal year 2017-18.

Evaluations completed or planned: Evaluation of the Community Investment sub‑program, March 2019 (now called Communities and Inclusive Growth Evaluation)

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. 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 establishments and expansions, innovation, skill 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; First Nation communities and official language minority 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)

Comments on variance: There continues to be strong demand for BDP programming. “Actual spending” was higher than “planned spending” because additional funding was made available from other transfer payment programs (such as the Atlantic Innovation Fund), from reallocating BDP funds from the Community Development PAA program, and from additional spending authorities that were made available from the collection of repayable contributions.

Program: Community Development
(dollars)

Comments on variance: “Actual spending” was higher than “planned spending” because additional funding was received during the fiscal year through the Supplementary Estimates. “Actual spending” was lower than the “total authorities available for use” because ACOA responded to changing priorities by reallocating some of this additional funding from the Community Development PAA program to the Enterprise Development PAA program.

Program: Policy, Advocacy and Coordination
(dollars)

Comments on variance: “Actual spending” was higher than “planned spending” because additional funds were made available through a memorandum of understanding with the Department of National Defence. This provided funds to host the Halifax International Security Forum.

Canada 150 Infrastructure Program - Voted

(also known as the Canada 150 Community Infrastructure Program)

Start date: April 1, 2016

End date: March 31, 2018

Type of transfer payment: Contribution

Type of appropriation: Appropriated annually through Estimates

Fiscal year for terms and conditions: 2016-17

Strategic Outcome: A competitive Atlantic Canadian economy

Link to department’s Program Alignment Architecture: Community Development, Community Investment

Description: The Canada 150 Infrastructure Program (CIP 150) is a $150 million cost-shared program aimed at the rehabilitation, renovation and expansion of existing community infrastructure, such as community centres, recreational buildings, local arenas, cultural facilities, cenotaphs and other community infrastructure facilities, to help ensure that the 150th anniversary celebrations would have a lasting impact. Contributions are non‑repayable.

Results achieved: In 2017-18, ACOA approved 97 projects under CIP 150 (totalling $4.5 million in ACOA funding). This helped municipalities, First Nation communities, economic development organizations and other non-profit organizations to modernize their existing community infrastructure facilities. Every dollar contributed by ACOA leveraged $1.87 from other partners.

Audits completed or planned: No audits were completed or planned during fiscal year 2017-18.

Evaluations completed or planned: ACOA was not required to complete an evaluation of this funding program.

Engagement of applicants and recipients: ACOA collaborates with its partners and engages key stakeholders in discussions regarding community economic development to ensure that the Agency’s investments respond to the economic needs of the communities. Key stakeholders may include other levels of government, community leaders, financial institutions and private-sector organizations. Furthermore, CIP 150 information is shared with applicants and recipients through the Agency’s website.

(dollars)

Comments on variance: “Actual spending” was higher than “planned spending” because of the transfer of authorities from previous years.

Community Futures Program - Voted

Start date: May 18, 1995

End date: Ongoing

Type of transfer payment: Contribution

Type of appropriation: Appropriated annually through Estimates

Fiscal year for terms and conditions: 2009-10

Strategic Outcome: A competitive Atlantic Canadian economy

Link to department’s Program Alignment Architecture: Community Development, 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 program. The CBDCs are legally incorporated, not-for-profit, autonomous organizations managed by local volunteer board members who make decisions that shape these organizations, affect the lives of entrepreneurs and impact their communities. They provide financial and technical support to SMEs and social enterprises in rural areas.

Results achieved:: In 2017-18, CBDCs continued to provide an essential source of investment capital focused on rural businesses as well as business counselling and skills development. CBDCs assisted 1,351 businesses through their investment fund by approving 1,490 loans, representing a total direct investment of $70.5 million in local SMEs. These investments contributed to the creation of 1,563 new jobs in rural communities in Atlantic Canada. The Agency maximized the use of funds available to CBDCs as recipients of Community Futures 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 2017-18, 381 training sessions were completed across the region, with 502 participants. ACOA also supported the network in the development of a CBDC education and training strategy and a new performance reporting platform.

Audits completed or planned: No audits were completed or planned during fiscal year 2017-18.

Evaluations completed or planned: Evaluation of Community-based Business Development sub-program, February 2019 (now called the Community Futures Program, led by ISED)

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 available resources, including the funds provided by the Community Futures program. With a view to maintaining the long-term viability of the Community Futures 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 its due diligence processes and 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 continued 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 CBDCs to increase the integrity and consistency of performance results and improve their collection, and to implement the Community Futures program’s performance measurement strategy. In collaboration with other federal government departments responsible for the management of the program, ACOA presents performance results for 2017-18 and continues to engage the CFNC in refining the collection and use of performance information needed by all stakeholders, including the CBDCs.

(dollars)

Comments on variance: Nil.

Innovative Communities Fund - Voted

Start date: April 1, 2005

End date: Ongoing

Type of transfer payment: Contribution

Type of appropriation: Appropriated annually through Estimates

Fiscal year for terms and conditions: 2009-10

Strategic Outcome: A competitive Atlantic Canadian economy

Link to department’s Program Alignment Architecture: Community Development, Community Investment, 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: The ICF capitalizes on the strengths of Atlantic communities and provides them with the tools needed to identify opportunities for sustainable economic growth. The overall expected result is to build dynamic and sustainable communities in Atlantic Canada while focusing on increased economic and business activity.
In 2017-18, 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 108 projects under the ICF. These projects had total costs of $119.7 million, with an ACOA contribution of $39.1 million and $80.6 million leveraged from other sources. Every dollar invested by ACOA leveraged $2.06 from other partners.

Audits completed or planned: No audits were completed or planned during fiscal year 2017-18.

Evaluations completed or planned: Evaluation of the Community Investment sub‑program, March 2019 (now called Communities and Inclusive Growth Evaluation)

Engagement of applicants and recipients: Eligible recipients for the ICF include municipalities and local organizations, First Nation communities, industry-related groups (for example, industry or sector associations), and non-profit organizations.

Under the ICF, the Agency continues to proactively engage with its partners and stakeholders, including community organizations, educational institutions, official language minority communities, First Nation 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. In addition, ICF information is continually shared with applicants and recipients through ACOA’s website.

(dollars)

Comments on variance: ���Actual spending” was higher than “planned spending” because additional funding was transferred from other programs to meet increased demand in support of several community investment projects.