Transfer Payment Program:

Atlantic Innovation Fund (AIF) – Voted

Start date:

May 10, 2001

End date:

Renewed on an ongoing basis as of March 2010.

Description of Transfer Payment Program:

The AIF focuses on increasing research and development 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 on the AIF can be found on the ACOA website.  

Strategic Outcome:

A competitive Atlantic Canadian economy

Results Achieved:

ACOA focuses on accelerating the development of the knowledge-based economy and on facilitating transition within traditional industries. The Agency uses the AIF to increase the region’s capacity to carry out leading-edge research and development, and to contribute to the development of new technology-based economic activity in Atlantic Canada. In 2009-2010 there were 30 projects approved under the AIF, accounting for over $62.4 million in ACOA assistance toward projects valued at $110.9 million.
The AIF facilitates the development of strategic sectors characterized by regional clusters of firms. In 2009-2010, 27 of 30 approved projects, accounting for just under $57 million in AIF funding, augmented development of the Information Technology, life sciences/biotech, and oil and gas/oceans technology clusters, and complement the National Research Council’s Atlantic cluster initiative.

ACOA encourages prospective stakeholders, including universities, colleges, research organizations and private sector firms, to take an active role in seeking out opportunities for partnerships/collaboration. In 2009-2010 there were 70 meaningful partnerships stemming from AIF-funded projects.
Furthermore, ACOA continued to support Springboard Atlantic Inc., a network of 14 universities and four provincial community colleges with the mandate of providing support for the transfer of knowledge and technology to the private sector. This network has been instrumental in facilitating commercialization of research that has been completed in Atlantic Canada, as well as the development of public-private partnerships nationally, internationally and regionally.

The January 2010 impact evaluation of ACOA’s innovation program sub-activity found that ACOA’s support for innovation is contributing to enhanced commercialization capacity and productivity levels in Atlantic Canada. Funded projects are resulting in the acquisition and installation of leading-edge technology, improved production strategies, new products, certifications, and access to new markets. An increase in commercialization activity has been identified through patent awards, spinoff firm creation, and the commercialization of many products, services, technologies, and processes. These results are having a significant impact on revenue generation. For example, the 22 organizations represented in the case studies indicated that commercialization activities resulting from AIF funding have contributed to additional sales of approximately $248 million.

	($ millions)
	2007-2008	2008-2009	2009-2010
	Actual Spending	Actual Spending	Planned Spending	Total Authorities	Actual Spending	Variance
Program Activity: Enterprise Development
Total Contributions	57.0	58.1	69.8	69.8	57.6	12.2
Total for Program Activity	57.0	58.1	69.8	69.8	57.6	12.2

Comment on Variance:

Spending on projects did not flow as anticipated.

Audit completed or planned:

• In Progress
  • Audit of the disbursement process for program payments; estimated completion August 2010.
  • Audit of post-payment verification of program payments; estimated completion October 2010.
• Planned (for 2010-2011)
  • Audit of advances of grants and contributions; estimated completion December 2010.
  • Audit of eligibility/due diligence of AIF projects; estimated completion March 2011.

Evaluation completed or planned:

As of fiscal year 2009-2010, evaluations are being completed at the program sub-activity level and incorporate the transfer payments programs.
An evaluation of the AIF was completed in January 2010 as part of the innovation program sub-activity evaluation.

Transfer Payment Program:

Business Development Program (BDP) – Voted and Statutory

Start date:

June 25, 1995

End date:

March 31, 2011

Description of Transfer Payment Program:

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 by working with communities to develop and diversify local economies, and by championing the strengths of the region in partnership with Atlantic Canadians.

Strategic Outcome:

A competitive Atlantic Canadian economy

Results Achieved:

During 2009-2010, to improve productivity and preserve long-term prospects of employment, the BDP has invested in projects to establish new businesses and in projects to help companies to expand and/or modernize their facilities. This program continues to focus on innovation, skills development and trade activities to enhance the business environment in Atlantic Canada. The program serves to fill gaps in the financing continuum for SMEs and entrepreneurs in Atlantic Canada.
The BDP also invested more than $57 million in community development projects in 2009-2010. These projects improved community capacity to identify economic development needs and opportunities, ensured that Atlantic Canadian businesses have access to capital as well as business information and counselling, and improved community capacity to address economic and business development needs and opportunities.

	($ millions)
	2007-2008	2008-2009	2009-2010
	Actual Spending	Actual Spending	Planned Spending	Total Authorities	Actual Spending	Variance
Program Activity: Enterprise Development
Total Grants	0.2	0.2	1.0	1.0	0.1	0.9
Total Contributions	97.3	99.9	90.1	96.8	105.7	(15.6)
Total for Program Activity	97.5	100.1	91.1	97.8	105.8	(14.7)
Program Activity: Community Development
Total Grants	0.3	0.5	1.0	1.0	0.3	0.7
Total Contributions	21.4	23.3	20.5	20.5	42.3	(21.8)
Total for Program Activity	21.7	23.8	21.5	21.5	42.5	(21.1)
Program Activity: Policy, Advocacy and Coordination
Total Contributions	0.5	0.6	0.5	0.5	0.7	(0.2)
Total for Program Activity	0.5	0.6	0.5	0.5	0.7	(0.2)
Total for Transfer Payment Program	119.7	124.5	113.1	119.8	149.0	(35.9)

Comment on Variance:

An additional $35.9 million was made available for the BDP during the year, mostly as a result of initiatives under Canada’s Economic Action Plan and Canada’s linguistic duality, as well as reduced requirements under the Atlantic Innovation Fund. The additional financial resources for the BDP were used to accelerate payments for SME projects, easing cash flow challenges during the current economic downturn, and to fund increased demands on Community Development.

Audit completed or planned:

• Completed or In Progress
  • Audit of venture capital; completed February 2010
  • Audit of the disbursement process for program payments; estimated completion August 2010.
  • Follow-up on the 2006-2007 audit of the Business Development Program; estimated completion October 2010.
  • Audit of post-payment verification of program payments; estimated completion October 2010.
  • Audit of eligibility/due diligence of BDP commercial projects; estimated completion October 2010.
  • Office of the Auditor General audit of Canada’s Economic Action Plan (which includes a portion of the BDP) is in progress at the national level; report to be tabled October 2010.
• Planned (for 2010-2011)
  • Audit of advances of grants and contributions; estimated completion December 2010.
    Internal audit of Canada’s Economic Action Plan (to include a portion of the BDP); estimated completion March 2011.

Evaluation completed or planned:

As of fiscal year 2009-2010, evaluations are being completed at the program sub-activity level and incorporate the transfer payments programs.

Evaluations completed or in progress related to the Business Development Program include:

• Community investment, community development resources, official language minority communities and aboriginal communities (completed December 2009)
• Innovation (completed January 2010)
• Financing continuum (estimated completion date July 2010)
• Trade and investment (estimated completion date July 2010)
• Entrepreneurship and business skills development (estimated completion date July 2010)

Transfer Payment Program:

Community Futures (CF) – Voted

Start date:

May 18, 1995

End date:

October 2, 2010

Description of Transfer Payment Program:

The Community Futures (CF) program supports community economic development and builds the capacity of communities to realize their full sustainable potential. The program provides financial support to CF organizations (e.g. Community Business Development Corporations in Atlantic Canada) enabling them, in collaboration with other partners and stakeholders, to assess their situation and develop strategies to meet their needs. The CF program also provides support to small and medium-sized enterprises (SMEs) and social enterprises for undertaking appropriate community economic development initiatives.

Strategic Outcome:

A competitive Atlantic Canadian economy

Results Achieved:

In 2009-2010, the 41 Community Business Development Corporations approved 1,100 loans that represent an investment of over $51.0 million in rural communities. The CBDCs also provided 8,514 counselling sessions to clients throughout the Atlantic region.

	($ millions)
	2007-2008	2008-2009	2009-2010
	Actual Spending	Actual Spending	Planned Spending	Total Authorities	Actual Spending	Variance
Program Activity: Community Development
Total Contributions	13.7	12.4	13.1	13.1	13.0	0.1
Total for Program Activity	13.7	12.4	13.1	13.1	13.0	0.1

Comment on Variance:

The variance is due to normal program administration, wherein some projects costs were incurred later than expected because of unforeseen circumstances in the projects.

Audit completed or planned:

• Completed or In Progress
  • Audit of Community Futures; completed December 2009.
  • Audit of the disbursement process for program payments; estimated completion August 2010.
  • Audit of post-payment verification of program payments; estimated completion October 2010.
• Planned (for 2010-2011)
  • Audit of advances of grants and contributions; estimated completion December 2010.

Evaluation completed or planned:

As of fiscal year 2009-2010, evaluations are being completed at the program sub-activity level and incorporate the transfer payments programs.
An evaluation of ACOA’s Community Futures program was completed in June 2009.

Transfer Payment Program:

Innovative Communities Fund (ICF) – Voted

Start date:

April 1, 2005

End date:

Renewed on an ongoing basis on March 2010.

Description of Transfer Payment Program:

The program is designed to make non-repayable contributions to support strategic initiatives that respond to the economic development needs of communities. To effectively address the wide range of challenges and opportunities of regions, communities and sectors, the ICF takes a comprehensive approach to working with communities at various stages along the economic development continuum, while ensuring sustainable economic outcomes.

The ICF has three distinct components. The first component, strategic community capacity, is designed to support non-commercial/non-profit strategic initiatives that target the economic development needs of rural communities. The second, proactive investments, is intended to stimulate transformative change. This component will support proactive identification and implementation of strategic opportunities with local partners. The third component, the Community Adjustment Fund (CAF) is a two-year funding initiative, ending March 31, 2011, put in place by the Government of Canada to provide economic stimulus to mitigate the short-term impacts of the economic downturn by creating employment opportunities and to address transitional and adjustment challenges in restructuring communities. In Atlantic Canada, ACOA is delivering CAF using its existing Innovative Communities Fund (ICF) and Business Development Program (BDP).

The program is designed to respond to the unique and varying needs of communities. The flexible approach will encourage clear links to sustainable economic development outcomes. A focus on outcomes will ensure that the program has the desired impact on Atlantic Canada’s economy.

Strategic Outcome:

A competitive Atlantic Canadian economy

Results Achieved:

During fiscal year 2009-2010, 221 projects were approved under the ICF, of which 74 were funded under the strategic community capacity component and two were under the proactive investment component. These 76 projects had a total project cost of $104.84 million with an ACOA contribution of $17.3 million and dollars leveraged amounting to $87.54 million. In addition to these 76 projects approved under ICF, an additional 146 ICF projects were approved under the Community Adjustment Fund (CAF). These 146 ICF-CAF projects had a total project cost of $ 144.86 million with an ACOA contribution of $65.4 million and dollars leveraged amounting to $79.53 million.

	($ millions)
	2007-2008	2008-2009	2009-2010
	Actual Spending	Actual Spending	Planned Spending	Total Authorities	Actual Spending	Variance
Program Activity: Community Development
Total Contributions	46.9	48.9	43.6	88.0	73.4	(29.8)
Total for Program Activity	46.9	48.9	43.6	88.0	73.4	(29.8)

Comment on Variance:

The actual spending is higher than anticipated mostly due to a Canada’s Economic Action Plan (CEAP) initiative, the CAF being delivered through ICF.

Audit completed or planned:

• Completed or In Progress
  • Follow-up on the 2006-2007 audit of Community Development; completed June 2010
  • Audit of the disbursement process for program payments; estimated completion August 2010.
  • Audit of post-payment verification of program payments; estimated completion October 2010.
  • Office of the Auditor General audit of CEAP (which includes CAF) is in progress at the national level; report to be tabled October 2010.
• Planned (for 2010-2011)
  • Audit of advances of grants and contributions; estimated completion December 2010.
  • Internal audit of CEAP (to include CAF); estimated completion March 2011.

Evaluation completed or planned:

As of fiscal year 2009-2010, evaluations are being completed at the program sub-activity level and incorporate the transfer payments programs.
An evaluation of the ICF was completed in December 2009 as part of the community investment, community development resources, official language minority communities and aboriginal communities evaluation.

Transfer Payment Program:

Recreational Infrastructure Canada (RInC) – Voted

Start date:

April 1, 2009

End date:

March 31, 2011

Description of Transfer Payment Program:

The RInC program provides $500 million nationally for projects to assist in the rehabilitation of recreational facilities across Canada, which must be completed by March 31, 2011.

Through RInC, the Government of Canada has committed, over two years, to support upgrades and repairs of existing recreational assets, including new construction that adds to or replaces existing recreational infrastructure assets or capacity.
The program is designed to provide a timely, targeted stimulus to the economy, and to help mitigate the impacts of the current global economic recession by increasing the total volume of construction activity related to recreational infrastructure. Through the rehabilitation of recreational infrastructure, this program also encourages participation in physical activity and community building.

Strategic Outcome:

A competitive Atlantic Canadian economy

Results Achieved:

As of March 31, 2010, ACOA had fully committed its RInC allocation by investing $34.1 million in projects across Atlantic Canada. During fiscal year 2009-2010, 230 projects were approved under RInC with total project costs of $125.7 million and dollars leveraged amounting to $91.6 million. Among the approved projects, 193 have been announced and 39 have been successfully completed.

	($ millions)
	2007-2008	2008-2009	2009-2010
	Actual Spending	Actual Spending	Planned Spending	Total Authorities	Actual Spending	Variance
Program Activity: Community Development
Total Contributions	0.0	0.0	0.0	9.9	11.3	(11.3)
Total for Program Activity	0.0	0.0	0.0	9.9	11.3	(11.3)

Comment on Variance:

RInC is a CEAP initiative introduced in Budget 2009; therefore, no planned spending was forecasted and the funds were transferred to ACOA in the spring of 2009.

Audit completed or planned :

• In progress
  • Office of the Auditor General audit of the CEAP (which includes RInC) is in progress at the national level; report to be tabled October 2010.
• Planned (for 2010-2011)
  • Audit of advances of grants and contributions; estimated completion December 2010.
  • Internal audit of CEAP (to include RInC); estimated completion March 2011.

Evaluation completed or planned:

Not applicable. There is no evaluation planned for this TPP.

Transfer Payment Program:

Saint John Shipyard Adjustment Initiative – Voted

Start date:

May 29, 2003

End date:

May 31, 2011

Description of Transfer Payment Program: 

Aims to address the impact of the lack of manufacturing activities at the site of the former Saint John shipbuilding yard, and its economic impact on the province of New Brunswick.

Strategic Outcome:

A competitive Atlantic Canadian economy

Results Achieved:

There was no activity in the 2009-2010 reporting period.

	($ millions)
	2007-2008	2008-2009	2009-2010
	Actual Spending	Actual Spending	Planned Spending	Total Authorities	Actual Spending	Variance
Program Activity: Community Development
Total Contributions	24.5	0.0	10.0	10.0	0.0	10.0
Total for Program Activity	24.5	0.0	10.0	10.0	0.0	10.0

Comment on Variance:

ACOA is considering a date extension in the terms and conditions, in order to consider new projects for spending beyond the current expiry date of May 31, 2011.

Audit completed or planned:

No audits completed during 2009-2010.

Evaluation completed or planned:

Not applicable. There is no evaluation planned for this initiative.