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Section II: Analysis of Program Activities by Strategic Outcomes

2.1  Program Activities and Strategic Outcomes

Infrastructure Canada’s Program Activity Architecture (PAA) has the following three Strategic Outcomes (SO) and 13 program activities in support of its mandate.  The information presented in this section is organized according to Infrastructure Canada’s PAA structure:

1)   Provinces, territories and municipalities have federal financial support for their infrastructure priorities.

Program Activities:

• Provincial-Territorial Infrastructure Base Fund
• Gas Tax Fund

2)   Funding for quality, cost-effective public infrastructure that meets the needs of Canadians in a competitive economy, a cleaner environment and liveable communities is provided.

Program Activities:

• Building Canada Fund-Major Infrastructure Component
• Building Canada Fund-Communities Component
• Canada Strategic Infrastructure Fund
• Green Infrastructure Fund
• Municipal Rural Infrastructure Fund
• Border Infrastructure Fund
• Economic Analysis and Research

3)   Construction-ready infrastructure projects are provided with federal funding support.

Program Activities:

• Infrastructure Stimulus Fund
• Building Canada Fund-Communities Component Top-Up
• Support for the G8 Summit 2010
• National Trails Coalition ^[9]

The strategic outcomes speak to longer term infrastructure investments which include stable and predictable funding programs such as the Gas Tax Fund, as well as targeted programs such as the Building Canada Fund.  They also speak to short-term, timely and targeted programs such as the significant funding being provided under the Economic Action Plan.  Overall, the program activities result in the construction, renewal and/or enhancement of public infrastructure, contributing to broad government objectives of a competitive economy, a cleaner environment and liveable communities.

The sections that follow provide detailed information on each of the program activities, including financial and human resources associated with them, key achievements and milestones for 2010-11, as well as their performance regarding the targets as set out in the 2010-11 Report on Plans and Priorities.  As mentioned earlier, the department’s FTEs are managed in a holistic fashion and resource levels reported against individual programs are based on best available estimates.  FTEs are readily re-allocated on an as-needed basis during the year to reflect specific requirements of funding programs and other government priorities.

 

Performance Status Legend:

 

2.2 Strategic Outcome 1

Provinces, territories and municipalities have federal financial support for their infrastructure priorities

2.2.1  Provincial-Territorial Infrastructure Base Fund

Predictable funding for Provinces and Territories

Program Activity Description:

This program activity provides a pre-determined level of base funding to provinces and territories for infrastructure initiatives, balancing the Building Canada Fund’s per capita allocations.  The Provincial-Territorial Infrastructure Base Fund was designed to contribute to the restoration of the fiscal balance while at the same time contribute to the enhancement of Canada’s public infrastructure system.  Each jurisdiction receives funding based on Capital Plans accepted by the Minister, and the Plans outline infrastructure initiatives that support priorities in a given jurisdiction within the scope of eligible federal investment categories.  While payments are made to provinces and territories, ultimate recipients may include local and regional governments or private sector bodies.  Payments are made in advance and provinces and territories may pool, bank, or cash-manage these funds in a manner that will afford them greater flexibility in implementing their Annual Capital Plans.

2010-11 Financial Resources (in $ thousands)

Planned Spending	Total Authorities	Actual Spending
665,585	508,635	437,548

 

2010-11 Human Resources (FTEs)

Planned	Actual	Difference
5.0	2.0	3.0

 

Results Achieved	Performance Indicators	Targets	Performance Status
In 2010-11, Infrastructure Canada: Approved nine new provincial-territorial capital plans and one amended plan, committing more than $375 million in federal funding towards 116 new individual initiatives across Canada. Leveraged nearly $424 million in additional funding from provinces, territories and other funders, bringing the total value of initiatives approved under this fund in 2010-11 to almost $799 million. Negotiated and signed the last remaining Provincial-Territorial Infrastructure Base Funding Agreement.	Amount of federal funding to be committed. Dollars leveraged.	$300 million $250 million	Exceeded Exceeded

Performance Summary and Analysis of Program Activity

In 2010-11, the second year of the Economic Action Plan, the Provincial-Territorial Infrastructure Base Fund continued to focus on providing timely, accelerated funding to the eight jurisdictions that opted to accelerate their funding under the program (British Columbia, Alberta, Saskatchewan, Manitoba, Quebec, Nova Scotia, Prince Edward Island and the Northwest Territories).  At the same time, the PT Base Fund continued to work with those jurisdictions that chose to remain under the original terms of the program.  Nine new capital plans were approved, committing another $375 million dollars in federal funding to 116 new initiatives and leveraging almost $424 million in funding from other partners, including provinces, territories and municipalities.  In the 2010-11 fiscal year, four jurisdictions fully committed the balance of their PT Base funds.  With investments totalling around $1.86 billion as of March 31, 2011, this represents approximately 81 percent of the entire $2.1 billion PT Base allocation.

The department also signed the only remaining Provincial-Territorial Infrastructure Base Funding Agreement.  With the signing of the funding agreement with the Government of Ontario, the objective of concluding agreements with all jurisdictions is now achieved and the program is being fully implemented nationwide.

The program continues to provide stable, predictable funding for jurisdictions and offers them significant flexibility in funding their core infrastructure priorities.  Under the Provincial-Territorial Base Fund, funding is flowed based on the federal ministerial approval of provincial/territorial Capital Plans.  Additionally, provinces and territories are required to submit Annual Expenditure Reports audited by the provincial/territorial auditor general or another independent provincially/territorially licensed auditor, for federal acceptance by the federal Infrastructure Framework Committee co-chair.

In 2010-11, building upon its amended terms and conditions and accelerated agreements signed with the majority of provinces and the territories, Infrastructure Canada exceeded its expected level of performance with regards to approving capital plans submitted by jurisdictions, committing federal funds and leveraging additional funding from other partners.

Lessons Learned

In 2010-11, Infrastructure Canada continued to ensure diligent delivery of the program by maintaining appropriate program controls, demonstrating strong stewardship, and approving submitted capital plans and reports in a timely manner in order to deliver funds as expeditiously as possible.  Overall, since its inception, the Provincial-Territorial Infrastructure Base Fund has continued to prove to be very efficient in delivering federal funds to provinces and territories to support their infrastructure priorities.  The program has demonstrated its ability to deliver results while at same time ensuring sound management.

Project Spotlight
Building bridges to the North–Mackenzie Valley Winter Road Bridge Program

Northwest Territories

The Government of Canada is contributing to the Mackenzie Valley Winter Road Bridge Program through the Provincial-Territorial Infrastructure Base Fund. It is one of the over $40 million worth of infrastructure initiatives being funded as part of the Northwest Territories 2010-11 Annual Capital Plan. The program is improving the existing road and adding permanent, all-season bridges to make transportation safer and easier for motorists year-round. Creating more efficient, reliable access to job sites for the energy and mining sectors will also help stimulate the economy. Eligible cost: $9.1 million under the Provincial-Territorial Infrastructure Base Fund.

 

2.2.2  Gas Tax Fund

Stable, Predictable and Long-Term Funding for Municipalities

Program Activity Description:

This program activity provides municipalities with reliable, predictable and multi-year funding that will enable them to make investments in infrastructure projects that address local needs and help to produce the outcomes of cleaner air, cleaner water and reduced greenhouse gas emissions.  The Gas Tax Fund is administered through agreements between the federal government and provincial/territorial governments that set out eligible infrastructure investment categories and provide recipients with a pre-determined annual allocation based on a per-capita distribution across jurisdictions.  Recipients are responsible for providing aggregate reporting to Canada on the use of funds and results achieved on an annual basis.  Funded projects fall in one of the following categories: water, wastewater, solid waste, public transit, community energy systems, local roads and bridges.  Funding may also be provided to help build the capacity of municipalities to design and implement integrated community sustainability plans.  Funds are paid to a province or territory, to municipal associations or to the City of Toronto.  The provinces, territories or municipal associations in turn provide funding to municipalities.

2010-11 Financial Resources (in $ thousands)

Planned Spending	Total Authorities	Actual Spending
2,106,180	2,106,589	1,752,697

 

2010-11 Human Resources (FTEs)

Planned	Actual	Difference
15.0	15.0	0

 

Results Achieved	Performance Indicators	Targets	Performance Status
In 2010-11, Infrastructure Canada: Collaborated with provinces and territories to ensure that recipients have access to stable and predictable funding to build and improve infrastructure. Supported investments in public transit, water, wastewater, solid waste, local roads and bridges, community energy systems and community capacity while achieving the desired outcomes of cleaner air and water, and lower greenhouse gas emissions. In support of the Economic Action Plan, accelerated the second and final payment helping municipalities to take better advantage of the 2010 spring and summer construction seasons.	Amount of federal funding received by municipalities Number of municipal recipients receiving Gas Tax funding	$1.9 billion (95% of estimates). 3,640 (95% of municipal recipients).	Met Met

Performance Summary and Analysis of Program Activity

During 2010-11, Infrastructure Canada coordinated and collaborated with provinces, territories and municipalities, enabling their ongoing access to stable and predictable funding to build and improve core public infrastructure.  To support the Economic Action Plan, the department accelerated the delivery of $869.4 million to signatories for the second year in a row.  This brought the total amount delivered to provinces and territories in 2010-11 to $1.75 billion representing 92 percent of the target.  Based on the Gas Tax Fund Agreements, 3,640 municipal recipients received their annual Gas Tax Fund allocation, which represented approximately 90 percent of target levels.  Two jurisdictions did not receive their Gas Tax Fund allocation in 2010-11 because they had not provided Annual Expenditure Reports in accordance with the conditions of the Gas Tax Fund agreement.  Together, these jurisdictions account for eight percent of federal funding under this program.  One jurisdiction has since met the conditions for funding, early in 2011-12, and received its allocation.  Significant progress is being made with the final jurisdiction.

Since the inception of the program in 2005, municipalities have been able to fund over 9,000 projects through the Gas Tax Fund for public transit, water, wastewater, solid waste, local roads and bridges, community energy systems and community capacity.  These projects target desired outcomes of cleaner air, cleaner water, and lower greenhouse gas emissions.

Lessons Learned

The annual expenditure reports provided by the signatories continue to demonstrate the effectiveness of the Gas Tax Fund in addressing the ongoing infrastructure needs of Canada’s cities and communities.  However, given that the Fund is primarily managed at a provincial/territorial level, collecting the relevant data necessary for reporting on the program’s achievements at a national level is an ongoing challenge.  The department is continuing to work with provinces and territories in the development of a streamlined data management system to strengthen the integrity and accuracy of information collected from each jurisdiction and to better account for the funds allocated to over 3,600 municipalities.

Project Spotlight
St. Albert Transit gets a big boost

St. Albert, AB

The City of St. Albert used $2.8 million from the federal Gas Tax Fund to renovate the Dez Liggett Transit Facility. The 5,000-square-foot expansion provides sufficient storage space for the city’s 15 new buses. The project also updated the building’s mechanical systems and the fuel and oil storage tanks. This project has helped the City to accommodate increasing transit demand and improve its environmental performance. Federal contribution: $2.8 million under the Gas Tax Fund.

 

2.3 Strategic Outcome 2

Funding for quality, cost-effective public infrastructure that meets the needs of Canadians in a competitive economy, a cleaner environment and liveable communities is provided.

2.3.1  Building Canada Fund-Communities Component

Supporting the Infrastructure Needs of Smaller Communities

Program Activity Description:

This program activity provides funding to address the unique infrastructure pressures facing smaller communities.  It provides project investments in communities with populations of less than 100,000.  Projects under this program activity contribute to the construction, renewal and/or enhancement of public infrastructure in partnership with funding recipients.  Projects are selected through an application-based process governed in each province by an umbrella federal-provincial contribution agreement which also identifies eligible project costs.  Federal funds are provided to provincial governments when claims for eligible costs are received, and these funds are in turn delivered to the ultimate recipient through agreements between the province and the eligible recipient.  Projects under this program activity include basic infrastructure needs such as potable water, wastewater treatment, local roads and other infrastructure needs of residents of small communities, including rural areas.

2010-11 Financial Resources (in $ thousands)

Planned Spending	Total Authorities	Actual Spending
329,889	330,718	225,825

 

2010-11 Human Resources (FTEs)

Planned	Actual	Difference
17.0	21.0	(4.0)

 

Results Achieved	Performance Indicators	Targets	Performance Status
In 2010-11 Infrastructure Canada: Collaborated with Federal Delivery Partners and provinces to advance the project selection for the Building Canada Fund-Communities Component (BCF-CC). Signed Service Level Agreement in August, 2010	Amount of federal funding committed	No new funding commitments were planned for 2010-11, as the program was fully committed. This is in line with the Economic Action Plan’s objectives, i.e. the department would work with its partners to accelerate spending and provide stimulus to the economy.
		Apart from program administration costs, $260 million of planned spending for 2010-11 reflects funding commitments made in previous years.	Mostly Met
	Amount of funding leveraged	Federal spending commitments for 2010-11 were expected to support $520 million in eligible infrastructure costs by funding partners.	Mostly Met

Performance Summary and Analysis of Program Activity

During 2010-11, Infrastructure Canada selected 14 new projects, totalling $8.5 million in federal contributions from previously committed funding, leveraging an additional $19.2 million in infrastructure investment.  This means that every federal dollar committed was matched by $2.26 from its funding partners.  With 160 projects reported complete and another 560 projects underway, Infrastructure Canada spent $223.5 million in 2010-11 leveraging an additional $447 million from funding partners.  The amount spent and the amount leveraged both represent 86 percent of planned targets. 

Since 2007, more than $1.03 billion has been committed by the Government of Canada, leveraging an additional $2.1 billion in infrastructure investment^[10].  This funding is supporting 883 smaller-scale projects, with a total value of over $3.1 billion, in communities with populations of fewer than 100,000 people.  The largest categories of investments are local road infrastructure and water infrastructure, which account for 13 and 11 percent of Building Canada Fund – Communities Component projects respectively.

As a result of the 2010 Strategic Review, Infrastructure Canada is saving $5.4 million on administration by delivering the BCF-CC more efficiently. These funds will be removed from departmental reference levels and made available for other Government of Canada priorities. The funding for projects remained unchanged.

Lessons Learned

The Building Canada Fund – Communities Component builds on lessons learned from earlier Infrastructure Canada programs, such as the Infrastructure Canada Program (ICP) and the Municipal Rural Infrastructure Fund (MRIF).  Recommendations from sources such as the internal Infrastructure Canada audit of the Municipal Rural Infrastructure Fund program included enhancing relations with Federal Delivery Partners as well as partner provinces and territories to improve program delivery.  Based on these recommendations, a Service Level Agreement was signed between Infrastructure Canada and the Federal Delivery Partners in August 2010 clearly defining the roles and responsibilities of both parties for efficient and effective program delivery.

Project Spotlight
Improved rural water supply

Winkler, Manitoba

With a $1,197,000 contribution from the Communities Component of the Building Canada Fund, the federal government provided the 10,000 residents of Winkler with access to clean, safe water through a new reverse-osmosis water treatment system. The new system can purify brackish water at a relatively low cost, which makes more source water available to service the town's needs. It also reduces the need for a number of industrial chemicals and eliminates many unwanted residues. Federal contribution: $1,197,000 under the Building Canada Fund-Communities Component.

 

2.3.2  Building Canada Fund-Major Infrastructure Component

Supporting Nationally and Regionally Significant Projects

Program Activity Description:

This program activity targets larger, strategic projects of national and regional significance.  The Building Canada Fund was designed to increase investment in public infrastructure and contribute to broad federal objectives of economic growth, a cleaner environment and strong and prosperous communities.  Two-thirds of funding under the Building Canada Fund-Major Infrastructure Component, on a national basis, is targeted to national priorities of water, wastewater, public transit, the Core National Highway System and green energy.  The Major Infrastructure Component has 12 additional eligible categories of investment.  Priority projects are identified through discussion with provinces, and eligible recipients include provinces, municipalities, and private sector bodies (not-for-profit and for-profit).  All projects must be supported by a project overview that includes an assessment of the following five key areas: basic eligibility, financial and legal requirements, benefits, risk mitigation and minimum federal requirements. Once a project review is completed and a project is approved, funds are delivered to reimburse eligible costs through contribution agreements with eligible recipients.  Projects under this program activity contribute to the construction, renewal and/or enhancement of public infrastructure in partnership with funding recipients.

2010-11 Financial Resources (in $ thousands)

Planned Spending	Total Authorities	Actual Spending
1,120,824	1,165,402	407,499

 

2010-11 Human Resources (FTEs)

Planned	Actual	Difference
62.0	37.0	25.0

 

Results Achieved	Performance Indicators	Targets	Performance Status
Program funding is almost completely committed in six of the ten provinces (90% – 100% committed), and at least 70 percent of every province’s allocation is committed.  More than $863 million in federal funding was committed for BCF-MIC projects in 2010-11. For 2010-11, federal investments under the BCF-MIC leveraged funding commitments of over $2.6 billion.  When combined with the federal commitment of $863 million, this represents a total of almost $3.5 billion.	Amount of federal funding to be committed Dollars leveraged	$1.7 billion $4.4 billion[11]	Not Met Mostly Met

Performance Summary and Analysis of Program Activity

In 2010-11, Infrastructure Canada continued to accelerate the roll-out of the Building Canada Fund – Major Infrastructure Component, taking advantage of previous legislative and regulatory changes, as well as administrative actions that have streamlined project review, approval, and contribution agreement negotiation processes.  In 2010-11, more than $863 million in federal funding was committed to 21 major projects worth $3.5 billion.  While good progress was made in terms of funding commitments in 2010-11, the amount of federal funding committed did fall short of the target.  This is largely because proponents are taking longer to plan and prepare funding proposals for the large and complex projects that are supported by this program.  This can lead to delays in the stage at which federal funding commitments are made.

Since the Building Canada Fund – Major Infrastructure Component’s launch following Budget 2007, $5.5 billion representing approximately 82 percent of the funds available has been committed to 143 major projects across the country (as of March 31, 2011).  Program funding is almost completely committed in six of the ten provinces (90% - 100% committed), and at least 70 percent of every province’s allocation is committed.  In 2010-11, 25 major projects worth $2.5 billion ($611 million of federal investment) began construction, bringing the total number of projects under construction since the fund started to 73.  During the same year, three major projects worth over $47 million ($18 million of federal investment) completed construction.  Since the fund’s inception, projects worth $61 million (federal share $28 million) were completed and $11 billion worth of projects (federal share $3.7 billion) began construction.  In 2010-11, leveraged funding commitments rose to $2.6 billion, meaning that every federal dollar was matched by $3 from partners.  Parallel to the rise in federal commitments, total leveraged funding for the program has now risen to over $12 billion.

Finally, as a result of the 2010 Strategic Review, Infrastructure Canada is saving $4.9 million on administration by delivering the BCF-MIC more efficiently. These funds will be removed from departmental reference levels and made available for other Government of Canada priorities. The funding for projects remained unchanged.

Lessons Learned

Significant changes to project eligibility criteria were made to streamline the project approval process.  Policy leveraging criteria were simplified to examine five key issues: basic eligibility; financial and legal requirements; project benefits; risk mitigation and minimum federal requirements.  Attention was paid to maintaining accountability for results and ensuring projects benefits are realized.  

Project Spotlight
New pavilion at the Montreal Museum of Fine Arts

Montreal, QC

A $13-million investment from the Major Infrastructure Component of the Building Canada Fund has helped the Montreal Museum of Fine Arts build a new pavilion for its extensive Canadian art collection. The building provides twice the exhibit space for the collection and connects to the Museum's other three pavilions by an underground walkway. The funding also went towards restoring and equipping the Erskine and American Church, another of the museum’s four buildings, to accommodate concerts and other cultural activities. Federal contribution: $13 million under the Building Canada Fund-Major Infrastructure Component.

 

2.3.3  Green Infrastructure Fund

 Investing in Environmental Infrastructure

 Program Activity Description:

This program activity provides funding for green infrastructure projects that promote cleaner air, reduced greenhouse gas emissions, and cleaner water, and fall within any of the following categories: wastewater infrastructure, green energy generation infrastructure, green energy transmission infrastructure, solid waste infrastructure and carbon transmission and storage infrastructure.  Projects under this program activity contribute to the construction, renewal and/or enhancement of public infrastructure in partnership with recipients.  Eligible recipients for this fund include provinces, territories, local or regional governments, public sector bodies, non-profit organizations and private companies, either alone or in partnership with a province, territory or a government.  Funding under the Green Infrastructure Fund is provided on a cost-shared basis.  Projects are selected based on merit and evaluated against assessment criteria such as eligibility, leveraging financial investments and project benefits.

2010-11 Financial Resources (in $ thousands)

Planned Spending	Total Authorities	Actual Spending
370,316	235,387	35,430

 

2010-11 Human Resources (FTEs)

Planned	Actual	Difference
20.0	14.0	6.0

 

Results Achieved	Performance Indicators	Targets	Performance Status
In 2010-11, a total of nearly $116 million was committed in support of projects under the Green Infrastructure Fund and an additional $170 million was transferred to other departments for high-priority initiatives, for a total of $286 million. The majority of the fund has been committed.  Since the launch of the program, a total of $787 million has been committed to projects and high-priority initiatives. This federal funding of $286 million leveraged an additional amount of over $450 million from all our funding partners, for a total of nearly $740 million.	Amount of federal funding to be committed. Dollars leveraged.	$350 million $700 million[12]	Mostly Met Exceeded

Performance Summary and Analysis of Program Activity

The goal of the Green Infrastructure Fund is to support environment improvement and promote long-term growth.  By focusing on funding projects with positive, long-term environmental impacts, all provinces and territories will benefit.

In 2010-11, Infrastructure Canada focused on the transition of the fund from start up to project approval and the negotiation of funding agreements.  Since the launch of the program in

2009-10, $617 million has been committed to 17 projects. These include:

• Almost $171 million for bio-methanization projects in the Province of Quebec, which will divert organic solid waste from municipal landfills and generate energy from bio-gas;
• More than $201 million for transmission line infrastructure in British Columbia and the Yukon.  These projects will increase use of green energy and reduce greenhouse gas emissions; and
• A total of $245 million in funding for wastewater infrastructure in Ontario and Manitoba.  Funding for these projects will improve water quality and help municipalities meet the requirements of the new federal Wastewater Systems Effluent Regulations.  Investments in wastewater through the Green Infrastructure Fund also contribute to meeting the objectives under the Canada-US Great Lakes Water Quality Agreement.

A total of ten projects were underway in 2010-11, with total project costs valued at $1.05 billion.  The federal shares of these projects are valued at $358 million, with funding leveraged from partners totalling nearly $700 million.  For the 17 projects that have been announced, nearly $1.5 billion has been leveraged from all funding partners.

In addition, in 2010-11 the Government of Canada transferred $170 million from the Green Infrastructure Fund to other federal departments to support high-priority initiatives.  These include the investments in the Forestry Industry Transformation program as managed by Natural Resources Canada, as well as the Temporary Initiative for the Strengthening of Quebec’s Forest Economies as managed by the Economic Development Agency of Canada for the Regions of Quebec.

Further, $45 million in unallocated funds from the Green Infrastructure Fund is being removed from departmental reference levels, as per the 2010 Strategic Review process, and made available for other Government of Canada priorities.  No approved projects have been cancelled or otherwise affected as a result of this reallocation.

Lessons Learned:

Unlike other Infrastructure Canada programs, the Green Infrastructure Fund does not have a set provincial or territorial allocation, allowing resources to be focused where they are most likely to generate the greatest impact.  Projects can be identified through a variety of channels, but provinces and territories are the primary partners with which projects are identified, since they are the main proponents and funders.  Their funding and support for projects is key to leveraging funds and ensuring that projects are of national or regional significance.  Infrastructure Canada will continue to work in close partnerships with provinces and territories to identify priorities for the remaining funds.

Project Spotlight
New Wastewater Treatment Plant for Kirkland Lake

Kirkland Lake, ON

With $16 million from the Green Infrastructure Fund, a new wastewater treatment plant is being built in Kirkland Lake. The new plant will use the latest technology to meet the needs of the community for years to come. It will also help sustain the natural environment around Murdock Creek and Blanche River. Federal contribution: $16 million under the Green Infrastructure Fund.

 

2.3.4  Canada Strategic Infrastructure Fund

Enhancing Quality of Life and Economic Prosperity

Program Activity Description:

This program activity provides funding for projects of major federal and regional significance in areas that are vital to sustaining economic growth and enhancing the quality of life of Canadians.  Investments are made in cooperation with the provinces, territories, municipalities and the private sector and contribute to the construction, renewal and/or enhancement of public infrastructure to build infrastructure capacity in partnership with recipients.  Eligible project costs are defined under the terms of standard contribution agreements between the Crown and a recipient government and/or private-sector entity, and support federal priorities for public infrastructure development, through investments in targeted projects.  Project proposals are reviewed against policy leveraging criteria to ensure that federal objectives are advanced.  Funds are delivered through contribution agreements with eligible recipients.

2010-11 Financial Resources (in $ thousands)

Planned Spending	Total Authorities	Actual Spending
690,187	694,100	336,451

 

2010-11 Human Resources (FTEs)

Planned	Actual	Difference
33.0	11.0	22.0

 

Results Achieved	Performance Indicators	Targets	Performance Status
In 2010-11 Infrastructure Canada: Collaborated with Federal Delivery Partners and project recipients to pursue the implementation of the projects funded under the Canada Strategic Infrastructure Fund (CSIF).	Amount of federal funding committed	No new funding commitments are planned for 2010-11, as the program was fully committed.
		Apart from program administration costs, $522 million of planned spending for 2010-11 reflects funding commitments made in previous years.	Somewhat Met
	Amount of funding leveraged	Federal funding commitments for 2010-11 are expected to support $500 million in eligible infrastructure costs by funding partners.	Somewhat Met

Performance Summary and Analysis of Program Activity

During 2010-11, with the help of its Federal Delivery Partners, the department continued to monitor the progress of the ongoing/newly started projects and completed six projects.  Infrastructure Canada provided $335.2 million in federal funding to 35 projects already underway representing 64 percent of the planned target.  Actual spending lags behind forecasted levels for a number of reasons including inclement weather, geological challenges, technical and other construction-related complexities causing numerous construction delays, preventing proponents from submitting their invoices, thus impacting Infrastructure Canada’s ability to pay out the planned amounts in the fiscal year 2010-11.  According to program terms and conditions, the federal commitment is 50 percent towards the total eligible costs of any eligible project, except for advanced telecommunications and high-speed broadband and northern infrastructure projects, where the total contribution cannot exceed 75 percent.  As such, for any dollar committed to a project, at least another dollar is leveraged from funding partners towards the total eligible cost of that project. 

Since the inception of the program in 2003, Infrastructure Canada committed more than $4.3 billion in federal funding to 76 projects, leveraging an additional $8 billion in eligible infrastructure costs from funding partners.  The largest categories of investments are highway/rail infrastructure, water and sewage treatment as well as urban development/tourism, which account for 21, 18, and 17 percent of Canada Strategic Infrastructure Fund projects respectively.

Of the $4.3 billion originally allocated to the CSIF, $50 million was transferred to Parks Canada for improvements to the Trans Canada Highway in Banff National Park.

Lessons Learned

In 2010-11, Infrastructure Canada established a new governance structure to oversee the implementation of the Canada Strategic Infrastructure Fund and other sunsetting programs. The department formed a program management committee as a forum to ensure an effective, efficient and consistent implementation through horizontal coordination and discussion of issues.

 

2.3.5  Municipal Rural Infrastructure Fund

Long-term Commitment to Communities

Program Activity Description:

This program activity provides funding for small-scale municipal infrastructure projects designed to promote and improve quality of life in both urban and rural communities.  It was augmented with additional funds in January 2007.  Its long-term commitment to public infrastructure is to help promote sustainable economic growth, innovation and healthy communities.  Projects under this program activity contribute to the construction, renewal and/or enhancement of public infrastructure in partnership with funding recipients.  The program is governed in each province/territory by an umbrella federal-provincial-territorial contribution agreement which defines eligible project costs.  Federal funds are provided to provincial-territorial governments as eligible costs are incurred, and these funds are in turn delivered to ultimate recipients through agreements between each province-territory and the eligible recipient.  Eligible communities are those with populations of 250,000 people or less.

2010-11 Financial Resources (in $ thousands)

Planned Spending	Total Authorities	Actual Spending
307,412	307,845	146,646

 

2010-11 Human Resources (FTEs)

Planned	Actual	Difference
8.0	3.0	5.0

 

Results Achieved	Performance Indicators	Targets	Performance Status
In 2010-11 Infrastructure Canada: Collaborated with Federal Delivery Partners provinces and territories to pursue the implementation of projects funded under the Municipal Rural Infrastructure Fund (MRIF).	Amount of federal funding committed	No new funding commitments are planned for 2010-11, as the program was fully committed.
		Apart from program administration costs, $122 million of planned spending in 2010-11 reflects funding commitments made in previous years.	Exceeded
	Amount of funding leveraged	2010-11 federal spending is expected to support $240 million in eligible infrastructure costs by funding partners.	Exceeded

Performance Summary and Analysis of Program Activity

Although no new projects were approved in 2010-11, Infrastructure Canada spent $146 million on projects under MRIF, supporting over $292 million in eligible infrastructure costs by funding partners.

Since the inception of the program in 2003, Infrastructure Canada committed more than $1 billion in federal funding and leveraged $2.4 billion from funding partners to 1,988 approved projects, which are valued at $3.5 billion.  Of those projects, about 43 percent are considered Green Infrastructure projects.

Under the 2010 Strategic Review process, $23 million in unallocated funds from MRIF is being removed from departmental reference levels and made available for other Government of Canada priorities.  No approved projects have been cancelled or otherwise affected as result of this reallocation.

Lessons Learned

In 2010-11, Infrastructure Canada established a new governance structure to oversee the implementation of the Municipal Rural Infrastructure Fund and other sunsetting programs. The department formed a program management committee as a forum to ensure an effective, efficient and consistent implementation through horizontal coordination and discussion of issues.  Following the findings of the internal Municipal Rural Infrastructure Fund audit, Infrastructure Canada committed to reinforce the Fund’s Management Control Framework, clarifying financial procedures, improving data quality in the information management system and developing a strategy to ensure an effective and timely close-out of the program.

 

2.3.6  Border Infrastructure Fund

Improving Canada’s Border Crossings

Program Activity Description:

This program activity provides funding for investments in physical infrastructure, intelligent transportation system infrastructure and improved analytical capacity at the largest surface border crossings between Canada and the United States, as well as several other crossings points in Canada.  Established in 2001, the fund reflects the importance of Canada’s border crossings and highway approaches to economic growth, trade and security both nationally and internationally.  Projects under this program activity contribute to the construction, renewal and/or enhancement of public infrastructure in partnership with funding recipients.  Eligible project costs are defined under the terms of standard contribution agreements between the Crown and a recipient government and/or private-sector entity.  The fund supports federal priorities for public infrastructure development through investments in targeted projects.

2010-11 Financial Resources (in $ thousands)

Planned Spending	Total Authorities	Actual Spending
69,364	69,727	67,881

 

2010-11 Human Resources (FTEs)

Planned	Actual	Difference
5.0	1.0	4.0

 

Results Achieved	Performance Indicators	Targets	Performance Status
In 2010-11 Infrastructure Canada: Continued to work closely with Transport Canada to provide federal funding in support of infrastructure projects at border crossings under the Border Infrastructure Fund (BIF).	Amount of federal funding committed	No new funding commitments were planned for 2010-11, as the program was fully committed.
		Planned spending of $50 million for 2010-11 reflects funding commitments made in previous years.	Exceeded
	Amount of funding leveraged	Planned spending of $50 million for 2010-11 is expected to support $100 million in eligible infrastructure costs by funding partners.	Exceeded

Performance Summary and Analysis of Program Activity

During 2010-11, Infrastructure Canada spent $67.8 million in support of $135.6 million in eligible infrastructure costs by funding partners.

Since the inception of the program in 2001, over $600 million has been committed in support of 12 border improvement infrastructure projects, leveraging an additional $1 billion in infrastructure investment.

Of the $600 million originally allocated to the BIF, $18 million was transferred to Canada Border Services Agency for the St. Stephen border crossing and for border simulation modeling software.  In addition, $10.4 million in unallocated funds from BIF is being removed from departmental reference levels, as per the 2010 Strategic Review process, and made available for other Government of Canada priorities.  No approved projects have been cancelled or otherwise affected as result of this reallocation.

Lessons Learned

In 2010-11, Infrastructure Canada established a new governance structure to oversee the implementation of the Border Infrastructure Fund and other sunsetting programs.  The department formed a program management committee as a forum to ensure an effective, efficient and consistent implementation through horizontal coordination and discussion of issues.

2.3.7  Economic Analysis and Research

Supporting Delivery and Management of Infrastructure Programs

Program Activity Description:

This program activity helps to ensure that Canada’s infrastructure investment priorities and activities include the building, connecting and sharing of applied knowledge and research on infrastructure issues, projects and programs.  It targets key gaps in infrastructure knowledge and information, promotes the development of an enhanced evidence base for sound decision making at all levels of government, and contributes to improved measurement of the impacts of infrastructure policy and investment decisions.  This program activity supports strategic research capacity and knowledge generation and applications at the national level, as well as cooperation with other levels of government in addressing their unique research and capacity-building needs.  It levers research resources and expertise across various levels of government and stakeholder groups to address the infrastructure challenges and proposed solutions for Canada’s economy, environment and community.

2010-11 Financial Resources (in $ thousands)

Planned Spending	Total Authorities	Actual Spending
11,767	15,600	1,750

 

2010-11 Human Resources (FTEs)

Planned	Actual	Difference
29.0	15.0	14.0

 

Results Achieved	Performance Indicators	Targets	Performance Status
One feasibility study has been funded. Other programs to be delivered under this program activity were not yet launched, given the department’s general focus on the delivery of the EAP and related initiatives.	Availability and quality of integrated knowledge and analysis on infrastructure issues. Networks and collaborative efforts with other government departments are undertaken to share knowledge and build on existing expertise.	No targets were set for the 2010-11 period as programs under this program activity were not yet launched.	N/A

Performance Summary and Analysis of Program Activity

Infrastructure Canada funded one feasibility study under the Feasibility and Planning Studies program, which is part of the Building Canada Fund.  Other specific programs under the Economic Analysis and Research program activity were not yet launched, given the department’s general focus on the delivery of the EAP and related initiatives.  A total of $35.75 million for external research and for feasibility studies was reallocated to other priorities as part of the 2010-11 Strategic Review process.

 

2.4  Strategic Outcome 3

Construction-ready infrastructure projects are provided with federal funding support.

2.4.1  Infrastructure Stimulus Fund

Sustaining the Economy in Difficult Times

Program Activity Description:

This program activity provides funding to accelerate and increase the number of provincial, territorial and municipal infrastructure projects, as well as infrastructure projects submitted by not-for-profit and for-profit entities.  The primary focus of the fund is to provide timely and targeted short-term stimulus to the Canadian economy through the provision of funding for infrastructure projects that were construction-ready.  The Fund focuses on the rehabilitation of existing assets and new infrastructure that could be completed by March 31, 2011^[13].  Categories for investments under the Infrastructure Stimulus Fund include infrastructure projects such as water, wastewater, public transit, solid waste management, highways, roads, culture, community centres, temporary shelter infrastructure, parks and trails, rail and port infrastructure.  The Infrastructure Stimulus Fund is designed as a broad and flexible program to include both new infrastructure and rehabilitation of existing assets, in keeping with its objectives of providing timely and targeted short-term stimulus to the economy.

2010-11 Financial Resources (in $ thousands)

Planned Spending	Total Authorities	Actual Spending
3,309,429	3,277,688	2,482,489

 

2010-11 Human Resources (FTEs)

Planned	Actual	Difference
59.0	44.0	15.0

 

Results Achieved	Performance Indicators	Targets	Performance Status
In 2010-11 Infrastructure Canada: As part of the Economic Action Plan, this Fund provided needed stimulus to Canada’s economy. Extended the Infrastructure Stimulus Fund (ISF) projects completion date to October 31, 2011 allowing for one more construction season to complete projects.	Amount of federal funding committed	No new funding commitments were planned for 2010-11, as the program was fully committed in 2009-10. This is in line with the Economic Action Plan’s objectives, i.e. the department would work with its partners to accelerate spending and provide stimulus to the economy.
		Planned spending of $2.9 billion for 2010-11 reflects funding commitments made in previous years, requiring ongoing departmental program administration responsibilities.	Met
	Amount of funding leveraged	Planned spending commitments for 2010-11 are expected to support $3.8 billion in eligible infrastructure costs by funding partners.	Met

Performance Summary and Analysis of Program Activity

On December 2, 2010, the Prime Minister announced an extension of the deadline for completing projects under certain Economic Action Plan programs, including the Infrastructure Stimulus Fund.  The extension of the deadline to October 31, 2011, allows municipalities, provinces, territories and other proponents to benefit from one extra construction season to fully complete their projects.

During 2010-11, Infrastructure Canada re-allocated $99.2 million to projects, leveraging an additional $132.2 million in infrastructure investment.  The funding commitments reflect Infrastructure Canada’s ability to reinvest funds resulting from project cancellations or cost savings realized by proponents.  Infrastructure Canada paid out, accrued, or transferred out over $2.7 billion, leveraging an additional $3.8 billion in expenditures from funding partners in 2010-11 alone.  These amounts represent 93 and 100 percent of planned targets.  Construction delays, such as inclement weather, geological challenges, technical and other construction-related complexities prevented several proponents from meeting their project completion dates.  Consequently, the additional six months of construction not only realized project cost savings by delaying work initially planned for winter months, but also allowed Infrastructure Canada to re-allocate these savings to a few additional projects.  As a result of the December 2, 2010 announcement, some proponents re-focused their resources towards completing construction during the extension period and submitting their final invoices in the 2011-12 fiscal year.  Despite the extension, almost 80 percent of the eligible project costs were expected to be incurred by March 31, 2011.

Since the inception of the program in 2009, Infrastructure Canada helped to stimulate Canada’s economy by committing close to $4 billion, and leveraging an additional $6 billion in infrastructure investment from funding partners for over 4,100 projects throughout Canada, valued at over $10 billion.  The largest number of investments were in local road projects, and in water and wastewater infrastructure, representing 29 and 24 percent of projects respectively.

Finally, of the $4 billion originally allocated to the ISF, approximately $200 million has been transferred to other federal departments to support high priority initiatives, such as a $66.8 million transfer to Parks Canada to build and upgrade additional National Historic Sites and visitor facilities.

Lessons Learned

In order to avoid unnecessary administrative burden, and to streamline project approvals, the Infrastructure Stimulus Fund program was designed with flexible, yet comprehensive risk management procedures which build on the responsibility and expertise of provinces, territories, municipal governments and the private and non-profit sector for individual project management.  This new approach to risk management avoids duplication and also relies on the public accountabilities and financial and audit requirements in place in provincial, territorial and municipal governments.  Infrastructure Canada performed compliance audits of provincial and territorial partners to ensure program management frameworks were in place and met the conditions of the program. At the project level, based on continual project reporting and risk assessment, the department focussed its project monitoring on high risk projects.  This innovative approach also resulted in positive reviews of the recipient management frameworks by partners and stakeholders while increasing Infrastructure Canada’s knowledge and capacity of its recipients.

Given the short-term nature of the program, the ISF faced an unusually high number of data requests and frequent reporting burden.  This led to the development of new reporting processes and mechanisms, dedicating capacity to obtain, analyze and report on data.  The innovative use of technology for application and reporting purposes improved information sharing between the orders of government and increased reporting accountability.

Preliminary results of the program evaluation showed Infrastructure Canada’s ability to successfully deliver on the program’s objective of quickly getting money out the door while providing for necessary stimulus to the economy.  Federal-provincial-territorial-municipal co-operation was fundamental to the EAP’s success.  This cooperative approach allowed each order of government to focus on its specific responsibilities.  Partners were also able to deal quickly with issues that arose, in a collaborative manner.  Indeed, the Report of the Auditor General of Canada to the House of Commons (Fall 2010) recognized that Infrastructure Canada had put in place reasonable management controls and risk management strategies for its EAP programs.

Project Spotlight
Christina Living Arts Centre Solar Aquatic System

Kootenay Boundary Regional District, BC

The new Christina Living Arts Centre features green design from its roof to its geothermal foundation. Construction is also complete on an organic waste processing facility next door thanks to $133,333 from the Infrastructure Stimulus Fund. This Solar Aquatics System uses biological methods to break down waste generated by the Centre, visiting recreational vehicles and the surrounding community. Federal contribution: $133,333 under the Infrastructure Stimulus Fund.

 

2.4.2  Building Canada Fund-Communities Component Top-Up

Stimulating the Economy and Supporting Small Communities

Program Activity Description:

This program activity provides additional funding in the amount of $500 million (added to the Building Canada Fund-Communities Component) to fund infrastructure projects in communities with populations of fewer than 100,000 persons and with infrastructure needs related to 18 approved categories of project investment.  The Top-Up funds were created in 2009 in view of the economic situation when the Government of Canada undertook to accelerate funding over the subsequent two years to provide stimulus to the economy, as part of the Economic Action Plan (Budget 2009).  The funds are allocated to projects that were ready to get started and be completed by March 31, 2011^[14].  All Building Canada Fund-Communities Component funding was committed before access to Top-Up funding could occur.  Projects are eligible under the existing 17 categories, plus a new Recreation category.  Projects are selected through an application-based process, and are cost-shared on a one-third basis, typically, among federal, provincial and municipal counterparts.  Municipalities are able to participate in the applications-based programs that are best suited to individual circumstances in each province.

2010-11 Financial Resources (in $ thousands)

Planned Spending	Total Authorities	Actual Spending
470,755	472,266	303,739

 

2010-11 Human Resources (FTEs)

Planned	Actual	Difference
25.0	3.0	22.0

 

Results Achieved	Performance Indicators	Targets	Performance Status
In 2010-11 Infrastructure Canada: Collaborated with Federal Delivery Partners and provinces/territories to complete the project selection for the Building Canada Fund-Communities Component Top-Up (BCF-CC Top-Up) As part of the Economic Action Plan, this fund provided needed stimulus to Canada’s economy. This fund accelerated infrastructure projects in small communities Amended Contribution Agreements to account for the project construction deadline extension from March 31, 2011 to October 31, 2011.	Amount of federal funding committed	No new funding commitments are planned for 2010-11, as the program was fully committed in 2009-10. This is in line with the Economic Action Plan’s objectives, i.e. the department would work with its partners to accelerate spending and provide stimulus to the economy.
		Apart from program administration costs, $385 million of planned spending for 2010-11 reflects funding commitments made in previous years.	Mostly Met
	Amount of funding leveraged	Federal spending commitments for 2010-11 are expected to support $770 million in eligible infrastructure costs by funding partners.	Mostly Met

Performance Summary and Analysis of Program Activity

On December 2, 2010, the Prime Minister announced an extension of the deadline for completing projects under certain Economic Action Plan programs, including the Building Canada Fund – Communities Component Top-Up.  The deadline was extended to October 31, 2011, to allow municipalities, provinces, territories and other proponents to benefit from one extra construction season to complete their projects.

During 2010-11, Infrastructure Canada re-allocated $1.5 million to nine new projects, leveraging $3 million in infrastructure investment.  Infrastructure Canada spent, accrued, and/or transferred out $303.5 million, leveraging an additional $607 million in actual and accrued expenditures from funding partners in 2010-11 alone.  The amount spent and the amount leveraged both represent approximately 80 percent of planned targets.  Construction delays, such as inclement weather, geological challenges, technical and other construction-related complexities, prevented several proponents from meeting their project completion dates.  Consequently, the additional six months of construction not only realized project cost savings, by delaying work initially planned for winter months, but also allowed Infrastructure Canada to re-allocate these savings to a few additional projects.  As a result of the December 2, 2010 announcement, some proponents re-focused their resources towards completing construction during the extension period and submitting their final invoices in the 2011-12 fiscal year.  Despite the extension, almost 70 percent of the eligible project costs were incurred by March 31, 2011.

Since the inception of the program in 2009, Infrastructure Canada helped stimulate Canada’s economy by committing more than $488.9 million in federal funding and leveraging an additional $1.02 billion in infrastructure investment in support of 540 projects, valued at $1.5 billion.  The largest categories of investments under the Fund were recreation, local roads and wastewater infrastructure accounting for 33, 19 and 14 percent respectively.

Lessons Learned

The Building Canada Fund – Communities Component Top-Up builds on lessons learned from earlier Infrastructure Canada programs, such as the Infrastructure Canada Program (ICP) and the Municipal Rural Infrastructure Fund (MRIF).  Recommendations from sources, such as the internal Infrastructure Canada audit of the Municipal Rural Infrastructure Fund program included enhancing relations with Federal Delivery Partners, as well as partner provinces and territories to improve program delivery.  Based on these recommendations, a Service Level Agreement was signed between Infrastructure Canada and the Federal Delivery Partners in August 2010 clearly defining the roles and responsibilities of both parties for efficient and effective program delivery.

Project Spotlight
University Avenue Traffic Flow Improvements

Charlottetown, PEI

Thanks to a $2.1-million contribution from the Communities Component of the Building Canada Fund, Charlottetown has widened University Avenue, one of the main access routes to the City’s downtown core. The project has greatly reduced traffic congestion and improved road drainage. Pedestrian safety is also better thanks to a new sidewalk along the west side of the road and improvements to the traffic signal system. Federal contribution: $2.1 million under the Building Canada Fund-Communities Component Top-Up.

 

2.4.3  Support for the G8 Summit (2010)^[15]

Program Activity Description:

This program activity provides funding for infrastructure projects that support the hosting of the G8 Summit in June 2010 in Huntsville, Ontario, and provides a legacy to help compensate local communities and residents as a result of hosting the Summit.  The program provides $45.7 million to contribute to a safe, secure and successful hosting of the Summit. The maximum share of federal funding is up to one hundred percent (100%) of total eligible costs.

2010-11 Financial Resources (in $ thousands)

Planned Spending	Total Authorities	Actual Spending
9,531	9,430	4,571

 

2010-11 Human Resources (FTEs)

Planned [16]	Actual	Difference
See Footnote 16	See Footnote 16	See Footnote 16

 

Results Achieved	Performance Indicators	Targets	Performance Status
17 contribution agreements amendments were signed with municipal and provincial partners. Since the inception of the program in 2009, Infrastructure Canada committed $45.7 million towards 32 G8 Legacy Fund projects.	No performance indicators were set for this program in the 2010-11 Report on Plans and Priorities, as the program was expected to be completed in 2009-10.	No targets were set for this program in the 2010-11 Report on Plans and Priorities, as the program was expected to be completed in 2009-10.	32 projects completed $4.57 million spent in 2010-11 on projects.

Performance Summary and Analysis of Program Activity

All 32 projects approved were eligible under the program, and were substantially completed by June 25, 2010, in advance of the June 2010 G8 Summit.

Since the inception of the program in 2009, Infrastructure Canada committed $45.7 million towards 32 G8 Legacy Fund projects – below the original program budget of $50 million.  Oversight was enforced on all approved projects to ensure that only eligible costs were reimbursed.

Lessons Learned

The G8 Summit (2010) is the only legacy program Infrastructure Canada has ever been involved in.  As such, the objectives and design of the G8 Summit (2010) are markedly different than those of Infrastructure Canada’s traditional programming.

An audit of this targeted program was undertaken by the Auditor General, subsequent to its implementation and roll-out.  The Report of the Auditor General of Canada to the House of Commons (Spring 2011), which included conclusions and recommendations, was tabled in Parliament in June 2011.  While the final audit report acknowledges that Infrastructure Canada set up mechanisms to administer contribution agreements for the 32 approved projects in accordance with the terms and conditions of the G8 Legacy Infrastructure Fund, the final audit report also identified deficiencies with respect to the Parliamentary approval of program funding as well as the project selection processes and documentation related to selection.  While the Government of Canada confirms that all approved projects were eligible infrastructure projects and all funding was accounted for, it accepts the advice of the Auditor General along with other lessons learned.

 

2.4.4 Summary of Program Spending under the Economic Action Plan

The following table provides a summary of the 2009-10 and 2010-11 spending (in Statutory and Voted Authorities) for the programs under the Economic Action Plan (EAP), as announced in Budget 2009 (January 27, 2009), and managed by Infrastructure Canada.  Statutory funding authority for the programs under the Economic Action Plan was provided in the Budget Implementation Act.  The EAP programs are:

• Infrastructure Stimulus Fund (ISF);
• Building Canada Fund-Communities Component Top-Up (BCF-CC Top-Up);
• Green Infrastructure Fund (GIF);
• National Trails Coalition; and
• PT Base Fund’s Accelerated Funding (PT Base Fund)

 

2009-10 and 2010-11 Financial Resources Summary for Programs under the Economic Action Plan (in $thousands)

Economic Action Plan (EAP) Programs	2009-10 EAP Spending[17]	2010-11 EAP Spending[17]	Total EAP Spending
Infrastructure Stimulus Fund (ISF)	493,129	2,482,489	2,975,618
Building Canada Fund-Communities Component Top-Up (BCF-CC Top-Up)	30,745	303,739	334,484
Green Infrastructure Fund (GIF)	5,760	35,430	41,190
National Trails Coalition[18]	25,100	0	25,100
Provincial-Territorial Infrastructure Base Fund (PT Base Fund)	179,383	158,230	337,613
Total EAP Spending:	734,117	2,979,888	3,714,005

These programs are mentioned throughout this report, and more detailed information can be found under the following headings:

1.6.2 Program Activities by Strategic Outcome and Actual Spending;

2.2.1 Provincial-Territorial Infrastructure Base Fund;

2.3.3 Green Infrastructure Fund;

2.4.1 Infrastructure Stimulus Fund; and

2.4.2 Building Canada Fund-Communities Component Top-Up.

 

2.5  Internal Services Program Activity

Program Activity Description:

Internal Services are groups of related activities and resources that are administered to support the needs of programs and other corporate obligations of an organization.  These groups are:  Management and Oversight (Risk Management, Internal Audit and Evaluation) Services, Communications Services and Legal Services, Human Resources Management Services, Financial Management Services, Information Management Services, Information Technology Services, Real Property Services, Materiel Services, Acquisition Services, and Travel and Other Administrative Services.  Internal Services include only those activities and resources that apply across an organization and not to those provided specifically to a program.

2010-11 Financial Resources (in $ thousands)

Planned Spending	Total Authorities[19]	Actual Spending
48,956	29,797	49,265

 

2010-11 Human Resources (FTEs)

Planned	Actual [20]	Difference
150.0	186.0	(36.0)

Results Achieved

Financial Management: During the reporting period, the Finance and Administration Division:

• Provided quality, timely and accurate financial services and advice for the delivery of the Economic Action Plan (EAP).  This included the management and oversight of $6.25 billion ($3.0 billion under EAP) in contribution expenditures in 2010-11, for which the department has been commended on its sound management performance in delivering on large priority initiatives within a very short timeframe;
• Provided secretariat support and advice to the Project Review Panel for the review of infrastructure projects;
• Improved financial processing systems and reporting capacity, and developed new integrated systems tools to manage and report on funding programs and projects;
• Configured the new Salary Resource Management System for implementation in 2011-12 which will provide timely and accurate salary and staff strength reports for better decision-making on human resources capacity and requirements to deliver programs and services;
• Ensured quality, timely and accurate financial statements, expenditure forecasts and management reports;
• Strengthened internal financial management capacity through training, staffing vacant positions, engaging consultants, and implementing new internal controls;
• Developed new financial policies and procedures for account verification and the treatment of capital assets, and renewed the department’s financial signing authority processes, documentation and instruments of delegation;
• Assessed and documented the department’s controls in compliance with the new Treasury Board Policy on Internal Control; and
• Improved overall administration by developing new administrative and contracting controls and procedures; providing training and documentation of business processes; and completed major design, planning and coordination work for the department’s relocation and consolidation to a new location in December 2010.

People Management: During the reporting period, the Human Resources Division:

• Implemented its three-year (2010-2013) departmental Integrated Business and Human Resources Plan which included Public Service Renewal priorities.  The Plan’s strategies and related activities support a flexible and adaptable workforce, employee development and growth, as well as employee engagement;
• Developed a Recruitment Strategy as identified in the Integrated Business and Human Resources Plan.  This strategy sets out key elements including a branding statement as well as strategies to reach current public servants, professionals from other levels of government and new graduates.  In addition, fully qualified pools of candidates for entry-level positions (CR-04, AS-01 and AS-02) were created to increase staffing efficiency in those higher level turn-over positions;
• Developed a Diversity Strategy, led by an Assistant Deputy Minister Champion, which aims at promoting diversity in the workplace and included specific actions to ensure that recruitment reflects a diverse workforce.  A diversity committee has been created to carry out the action items in the strategy; 
• Offered an extensive second language training program to employees with access to various streams of language training options, including developmental and career progression, as well as for maintenance purposes.  Concrete actions have been taken to encourage employees to work in their language of choice; and
• Developed a draft Code of Conduct.  Senior management and all employees were engaged in the development through participation in focus and discussion groups.  The department also developed and implemented a Values and Ethics Strategy that provides for learning activities related to Values and Ethics and Conflicts of Interest.

Communications: During the reporting period, the Communications Directorate:

• Provided information to Canadians and stakeholders, through media and public relations, correspondence, internet communications, and stakeholder outreach.
  • Completed more than 440 media announcements, including 252 media events.  More than 600 news stories were directly attributed to these activities;
  • Responded to 165 enquiries from the media and 1,815 from the public;
  • Replied to 3,495 letters, a 10 percent increase over the previous year;
  • Updated both the www.infrastructure.gc.ca and www.creatingjobs.gc.ca websites;
  • Published nearly 300 stories about projects across Canada, with photographs;
  • Added almost 1,000 projects to the Economic Action Plan website; and
  • Promoted Infrastructure Canada programs at four conferences with information booths.
• Delivered internal communications that contributed to better information sharing, as well as supported policy and program activities through an array of editorial services and supported briefing coordination.
  • Held an all-staff meeting in April 2010 to share the departmental vision, role and contributions to serving Canadians;
  • Restructured the internal website to make it a more useful work tool for employees, including increasing site use by nearly 50 percent;
  • Developed a communications training program for managers.
  • Ensured that well prepared briefing notes and other documentation were provided in a timely fashion to meet the needs of the Deputy Minister’s Office and the Minister’s Office.
• Delivered an increasing level of Access to Information and Privacy (ATIP) Act services.
  • Processed 108 percent more requests as compared with the previous year;
  • Responded to the majority of requests within the timeframes prescribed by the Act, despite the significant increase in volumes;
  • Took steps to improve and streamline the processing of requests;
  • Increased internal capacity by hiring a full time in-house ATIP specialist; and
  • Submitted annual ATIP reports, annual statistical reports and updates to the department’s InfoSource descriptions prior to tabling deadlines.

Information Management (IM) and Information Technology (IT): During the reporting period, the Information Management/Information Technology Directorate:

• Implemented the extension of the Infrastructure Stimulus Fund in the Shared Information Management System for Infrastructure (SIMSI) and other required enhancements to other infrastructure programs in support of the Economic Action Plan;
• Developed a new integrated system, Financial Planning Analysis Application (FPAA), to manage and report on funding programs and projects; and
• In support of the Clerk of the Privy Council’s mandate to “put greater emphasis on collaboration, technology, innovation, back office systems and knowledge management,” Infrastructure Canada undertook the following initiatives:
  • Collaboration and Electronic Document and Records Management System (EDRMS): A number of strategic initiatives specifically aimed at supporting collaboration, innovation, and knowledge management.
  • Employee Form Renewal (Corporate Electronic Forms): Corporate electronic forms were automated with a view to improve efficiency and automate business processes.
  • Instant Messaging: To assist employees in communicating instantly and without the use of e-mails and to support the reduction of e-mail traffic and volume.
  • Processing of classified documents: To provide the ability to securely and efficiently communicate classified material to other participating government departments.

Internal Audit: During the reporting period, the Internal Audit Directorate:

• Implemented fully the requirements of the Treasury Board Policy on Internal Audit (2009).  Accordingly, Internal Audit is an independent, objective function.  The Chief Audit and Evaluation Executive reports directly to the Deputy Head on the effectiveness and adequacy of risk management, control and governance processes within the department.  A joint Departmental Audit Committee (DAC) is in place with Transport Canada.  The committee includes four external members, and meets four times per year;
• Improved Infrastructure Canada’s Management Accountability Framework (MAF) rating for the Core Area of Management 5 - Effectiveness of the Internal Audit Function, going from “Opportunity for Improvement” in 2008-09 (Round VI), to “Acceptable” in 2009-10 (Round VII), and now “Strong” for 2010-11 (Round VIII);
• Updated the 2010-13 Risk-Based Audit Plan to address high-risk priority areas within the department, to support management with the implementation and close-out of EAP and prepare for audit work by the Office of the Auditor General; 
• Conducted program change analysis, preliminary survey for reviews, risk-based targeted reviews, and assurance audits in support of EAP;
• Assisted in the examination and assessment of programs and projects in terms of their design and accountability, management frameworks and compliance with legislation;
• Continued to provide early warning and timely insight into risk and control issues associated with Infrastructure Canada’s programs generated or impacted by the EAP.  Specifically, Internal Audit assessed, on a periodic basis, the data quality and business rule compliance for the Infrastructure Stimulus Fund (ISF);
• Performed a liaison and coordination role between the department and external assurance providers such as the Office of the Comptroller General (OCG), the Office of the Auditor General (OAG) and the Public Service Commission (PSC); and
• Maintained the process of following up on recommendations and the corresponding management action plans from previous engagements (both internal and external) on a quarterly basis.

Evaluation: During the reporting period, the Evaluation Directorate:

• Implemented the new Treasury Board Policy on Evaluation (2009);
• Developed a new five-year Risk-Based Evaluation Plan in alignment with the departmental Program Activity Architecture (PAA) structure and focused on two work streams:  Performance Measurement and Evaluation.  Under the new plan, the majority of Infrastructure Canada’s direct program spending will be evaluated every five years;
• Final evaluation reports of the Infrastructure Canada Program (ICP) and the Infrastructure Canada Program-First Nations Component (ICP-FN) were completed and approved;
• Continued to expand advisory services and increase internal capacity (hiring and training evaluators) to ensure comprehensive and value-added strategic evaluations, provide support on performance measurement and assist in the development of performance measurement strategies;
• Produced Infrastructure Canada's first Annual Report on Performance Measurement; and
• Received an overall Management Accountability Framework (MAF) rating of “Acceptable” in the Core Area of Management 6 – Quality and Use of Evaluation in 2010-11 (Round VIII), including improved ratings in two of the four lines of evidence.  Specifically, 6.3 – Evaluation Coverage improved from “Acceptable” to “Strong”, and 6.4 – Use of Evaluation to Support Decision-Making and Reporting improved from “Opportunity for Improvement” to “Acceptable”.

Corporate Planning and Risk Management: During the reporting period, the Corporate Planning and Risk Management Directorate:

• In 2010-11, the Corporate Planning and Risk Management Directorate was established within the Corporate Services Branch of Infrastructure Canada (initially as Special Projects Coordination).  The Directorate provided support, briefings and liaison, and departmental coordination for corporate documents, answered to call letters and requests for accountability documents emanating from the Treasury Board Secretariat, managed the Management Accountability Framework (MAF) process on behalf of the department, participated in inter-departmental committees on horizontal issues, and developed Infrastructure Canada’s first departmental Corporate Business Plan;
• Built consistent operational risk management capacity and ensured due diligence under accelerated contribution program timelines to manage funding, especially the implementation and final delivery of the Economic Action Plan;
• Received a rating of Strong for the overall Area of Management 9-Risk Management, going from a rating of Acceptable in previous years, in Infrastructure Canada’s Management Accountability Framework (MAF) Round VIII in 2010-11;
• Continued to refine and implement a sound integrated risk management approach throughout the organization.  For example, business models use risk management principles and practices at all key decision points, staff provided with guidance and instructions related to project risk identification and assessment (including a formal instruction form for the Infrastructure Stimulus Fund), and risk management used consistently to add value throughout program development and project cycles;
• Implemented a dynamic process for reporting progress on risk responses and impact on risk placement to senior management.  This ensured that decisions concerning program delivery and project close-out explicitly considered risk management principles and strategies.

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