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Table 4: Details on Industry Canada’s Transfer Payments Programs

The following is a list by Strategic Outcome of Industry Canada’s transfer payment programs with transfers in excess of $5 million. Further information on these projects can be found at www.tbs-sct.gc.ca/rma/dpr1/07-08/index_e.asp.

A Fair, Efficient and Competitive Marketplace

  • International Telecommunication Union, Switzerland

An Innovative Economy

  • Pilot Commercialization Fund for University Research
  • H2 Early Adopters Program
  • Program for Strategic Industrial Projects (PSIP)
  • Strategic Aerospace and Defence Initiative (SADI)
  • Technology Partnerships Canada – Research and Development Program

Competitive Industry and Sustainable Communities

  • Aboriginal Business Canada
  • Canada-Ontario Infrastructure Program
  • Canadian Apparel and Textile Industries Program
  • Community Access Program
  • Computers for Schools Program
  • FedNor – Community Futures Program
  • FedNor – Eastern Ontario Development Program
  • FedNor – Northern Ontario Development Program
  • Ontario Potable Water Program
  • Structured Financing Facility

Details on Other Programs

  • Canada Small Business Financing Program
  • Loan Guarantee Payments pursuant to paragraph 14(1)(b) of the Department of Industry Act

A Fair, Efficient and Competitive Marketplace


International Telecommunication Union (ITU), Switzerland
Start Date: 1932–1933 End Date: December 31, 2007
Description:
Canada is signatory to the ITU treaty agreement negotiated every four years at a plenipotentiary conference, in accordance with its treaty obligations of the ITU Constitution and Convention. Canada's membership, contribution and standing in the ITU, and its involvement in related events, allow us to achieve results internationally across a broad range of issues affecting radiocommunication, standardization and telecommunication development. Canada's contribution to the ITU is commensurate with its international standing and commitment to the United Nations (UN) and UN specialized agencies.
Strategic Outcomes:
A fair, efficient and competitive marketplace
Results Achieved:
Canada achieved results across a broad range of issues affecting the international management of radio frequency spectrum and satellite orbits, the efficient and timely production of international standards, and the facilitation of connectivity in developing countries to help bridge the digital divide to the benefit of Canadian users and producers of telecommunication services and equipment.
(in thousands of dollars) Actual Spending 2005–06 Actual Spending 2006–07 Planned Spending 2007–08 Total Authorities 2007–08 Actual Spending 2007–08 Variances Between Planned Spending and Actual Spending
Program Activity: Spectrum, Information Technologies and Telecommunications (SITT) – Marketplace
Total Grants 6,655 6,099 6,808 6,808 5,929 879
Total Program Activity 6,655 6,099 6,808 6,808 5,929 879
Comment(s) on Variance(s):
Not Applicable
Significant Evaluation Findings and URL(s) to Last Evaluation(s):
An evaluability assessment of Industry Canada's grant program and related activities for the ITU took place in December 2007–March 2008. An evaluation by the Audit Evaluation Branch (AEB) will occur between April and December 2008.
Significant Audit Findings and URL(s) to Last Audit(s):
Audits are carried out in accordance with annual risk–based planning processes. ITU has not been audited because other, higher risk projects were identified.

An Innovative Economy


Pilot Commercialization Fund for University Research
Strategic Outcomes:
An innovative economy
(in thousands of dollars) Actual Spending 2005–06 Actual Spending 2006–07 Planned Spending 2007–08 Total Authorities 2007–08 Actual Spending 2007–08 Variances Between Planned Spending and Actual Spending
Program Activity: Policy Sector – S&T and Innovation
Total Grants     10,162     10,162
Total Program Activity     10,162     10,162
Comment(s) on Variance(s):
Budget 2004 allocated $75 million over five years for two pilot funds designed to strengthen the commercialization of federally funded research, one for universities and research hospitals and the other for federal laboratories. Since that time, $7.5 million was reallocated away from the pilot funds as a result of the government-wide expenditure review announced in Budget 2006 and the university portion of the remaining funds ($45.9 million) was applied in support of a Budget 2007 initiative to support business-university research commercialization (i.e., the business-led Networks of Centres of Excellence program). A total of $21.6 million over four years is currently available in the fiscal framework to support strengthening commercialization in federal laboratories. Options for program design and delivery are being developed by Industry Canada, in consultation with science-based departments and agencies, central agencies and external experts.
Significant Evaluation Findings and URL(s) to Last Evaluation(s):
Not Applicable
Significant Audit Findings and URL(s) to Last Audit(s):
Not Applicable

 


H2 Early Adopters Program (h2EA)
Start Date: October 9, 2003 End Date: March 31, 2008
Description:
This program provided funding for research and development activities involving hydrogen and hydrogen-compatible technologies by Canadian firms. The h2EA program advanced hydrogen and hydrogen-compatible technology demonstration activities and accelerated the adoption of these technologies by the marketplace. The terms and conditions for this program expired on March 31, 2008.
Strategic Outcomes:
An innovative economy
Results Achieved:
1. Hydrogen and hydrogen-compatible technologies adopted by the market.
2. Investment in demonstration activities in the hydrogen and hydrogen-compatible technologies industry.
(in thousands of dollars) Actual Spending 2005–06 Actual Spending 2006–07 Planned Spending 2007–08 Total Authorities 2007–08 Actual Spending 2007–08 Variances Between Planned Spending and Actual Spending
Program Activity: Technology Partnerships Canada – S&T and Innovation
Total Contributions 4,512 5,539 5,201 2,401 2,006 3,195
Total Program
Activity
4,512 5,539 5,201 2,401 2,006 3,195
Comment(s) on Variance(s):
Not Applicable
Significant Evaluation Findings and URL(s) to Last Evaluation(s):
The final evaluation of h2EA was completed in March 2008. Overall, the program was seen by government and industry representatives as being in line with industry needs when it was established in 2003. The industry has evolved substantially since the program was created in terms of technological and industrial developments, including the achievement of some commercial successes.
Significant Audit Findings and URL(s) to Last Audit(s):
The Audit and Evaluation Branch of Industry Canada conducted an audit of the h2EA program in June 2006. Audit findings are available at Audit of the Hydrogen Early Adopters Program.

 


Program for Strategic Industrial Projects (PSIP)
Start Date: October 3, 2005 End Date: March 31, 2011
Description:
This program provides the mechanism to fund larger strategic projects within the automotive sector (in whole or in part) from the fiscal framework. Strategic investments in industrial research, pre-competitive development and technology adaptation and adoption within the automotive sector will help to increase economic growth within Canada and improve sustainable industrial developments.
Strategic Outcomes:
An innovative economy
Results Achieved:
Investment in technology adaptation and adoption activities in the automotive sector.
(in thousands of dollars) Actual Spending
2005–06
Actual Spending
2006–07
Planned
Spending
2007–08
Total Authorities
2007–08
Actual Spending
2007–08
Variances Between Planned Spending and Actual Spending
Program Activity: Technology Partnerships Canada – S&T and Innovation
Total Contributions 163,266 41,443 111,990 99,006 99,006 12,984
Total Program
Activity
163,266 41,443 111,990 99,006 99,006 12,984
Comment(s) on Variance(s):
Not Applicable
Significant Evaluation Findings and URL(s) to Last Evaluation(s):
A formative evaluation of PSIP is scheduled for 2008–09.
Significant Audit Findings and URL(s) to Last Audit(s):
Audits are carried out in accordance with an annual risk-based planning process. PSIP has not been audited because other, higher risk projects were identified.

 


Strategic Aerospace and Defence Initiative (SADI)
Start Date: April 2, 2007 End Date: March 31, 2012
Description:
SADI provides contributions in industrial research and pre–competitive development in the aerospace and defence sectors. Key objectives include encouraging research and development that will result in innovation and excellence in new products and services; enhancing the competitiveness of Canadian aerospace and defence companies; and fostering collaboration between research institutes, universities and colleges and the private sector.
Strategic Outcomes:
An innovative economy
Results Achieved:
1. Communicated program via market outreach with innovative and competitive
     aerospace, defence, space and security (A&D) firms.
2. Approved first project for investment in strategic research and development
     activities in the aerospace industry.
3. Due diligence initiated on additional 11 proposals.
(in thousands of dollars) Actual Spending
2005–06
Actual Spending
2006–07
Planned Spending
2007–08
Total Authorities
2007–08
Actual Spending
2007–08
Variances Between Planned Spending and Actual Spending
Program Activity: Technology Partnerships Canada – S&T and Innovation
Total Contributions 25,000 10,500 (10,500)
Total Program
Activity
25,000 10,500 (10,500)
Comment(s) on Variance(s):
SADI's program was approved only after the RPP 2007–08 was completed and as such planned spending was not reported in the RPP 2007–08. Subsequent to the program's approval, one project was contracted in 2007–08 for which $10.5 million was spent.
Significant Evaluation Findings and URL(s) to Last Evaluation(s):
Implementation Review (Q3/Q4 2008–09)
Formative Evaluation — Mid-term (end of 2009–10)
Summative Evaluation — End of term (December 31, 2011)
Significant Audit Findings and URL(s) to Last Audit(s):
Internal audit planned for 2008–09.

 


Technology Partnerships Canada – Research and Development Program
Start Date: March 11, 1996 End Date: December 31, 2006
Description:
This program provided funding to support strategic research and development and demonstration projects in the aerospace and defence, environmental, and enabling technologies sectors to produce economic, social and environmental benefits for Canadians. The terms and conditions of the program expired on December 31, 2006; however, the program continues to manage existing contribution agreements for previously contracted projects.
Strategic Outcomes:
An innovative economy
Results Achieved:
Investment in research and development activities in the aerospace, defence, environmental and enabling technology industries.
(in thousands of dollars) Actual Spending
2005–06
Actual Spending
2006–07
Planned Spending
2007–08
Total Authorities
2007–08
Actual Spending
2007–08
Variances Between Planned Spending and Actual Spending
Program Activity: Technology Partnerships Canada – S&T and Innovation
Total Contributions 283,858 295,251 241,859 283,928 256,553 (14,694)
Total Program
Activity
283,858 295,251 241,859 283,928 256,553 (14,694)
Comment(s) on Variance(s):
Not Applicable
Significant Evaluation Findings and URL(s) to Last Evaluation(s):
TPC Summative Evaluation is scheduled for 2011–12.
Significant Audit Findings and URL(s) to Last Audit(s):
The Audit and Evaluation Branch of Industry Canada conducted an audit and an evaluation of the TPC program in June 2006. Audit findings are available and evaluation findings are available.

Competitive Industry and Sustainable Communities


Aboriginal Business Canada
This program was transferred to Indian and Northern Affairs Canada in December 2006; therefore, no results information is available.

 


Canada–Ontario Infrastructure Program (COIP)
Start Date: October 25, 2000 End Date: March 31, 2009
Description:
COIP provides funding assistance for the construction, renewal, expansion, or material enhancement of community infrastructure that will contribute to improving the quality of life for Ontarians and to building the foundation for sustained, long-term economic growth in the 21st century.
Strategic Outcomes:
Competitive industry and sustainable communities
Results Achieved:
Not Applicable
(in thousands of dollars) Actual Spending
2005–06
Actual Spending
2006–07
Planned
Spending
2007–08
Total Authorities
2007–08
Actual Spending
2007–08
Variances Between Planned Spending and Actual Spending
Program Activity: Operations Sector – Economic Development
Total Contributions 115,942 94,250 55,788 56,538 33,004 22,784
Total Program
Activity
115,942 94,250 55,788 56,538 33,004 22,784
Comment(s) on Variance(s):
The variance is due to the reprofiling of funds at year-end as a result of a change in cash flow projections.
Significant Evaluation Findings and URL(s) to Last Evaluation(s):
Evaluations are carried out by Infrastructure Canada.
Significant Audit Findings and URL(s) to Last Audit(s):
 Results for Interim Project Audits anticipated for fall 2008.

 


Canadian Apparel and Textile Industries Program (CATIP)
Start Date: January 1, 2003 End Date: March 31, 2010
Description:
The objective of CATIP is to assist Canadian apparel and textile firms with initiatives that will help to maximize productivity, identify high-value niche markets, improve e-commerce initiatives, enhance global marketing and branding strategies, and facilitate access to capital. The program had a firm component (private sector applicants) and a national initiatives component (not-for-profit industry associations that represent either the apparel or textile sectors on a national scale). Since 2004, the program has also had a production efficiency component targeted toward textile producers and, in 2006, introduced a transformative component for companies wanting to transform at least a portion of their current textile production from lesser value-added products to higher value-added products targeted at growth niche markets.
Strategic Outcomes:
Competitive industry and sustainable communities
Results Achieved:
The Textile Production Efficiency Component (known as CANtex) has, since its inception, supported some 372 projects, 147 of which were approved by Canadian Economic Development for Quebec (CED-Q), Industry Canada's delivery partner for the Province of Quebec. These projects have assisted the industry in improving its productivity, developing new products and addressing new markets.

The National Initiatives Component (NI) has continued to assist apparel and textile associations with projects designed to introduce best practices in manufacturing and value chain development, exploit leading-edge technologies, and develop and implement global marketing strategies. Since the program's inception, NI has supported close to 210 projects.

Overall, CATIP has funded close to 900 projects (including CED-Q) throughout the apparel and textile industries since its inception in 2003.
(in thousands of dollars) Actual Spending
2005–06
Actual Spending
2006–07
Planned
Spending
2007–08
Total Authorities
2007–08
Actual Spending
2007–08
Variances Between Planned Spending and Actual Spending
Program Activity: Industry Sector – Economic Development
Total Contributions 6,740 6,469 5,473 6,473 5,729 (256)
Total Program
Activity
6,740 6,469 5,473 6,473 5,729 (256)
Comment(s) on Variance(s):
The variance between planned and actual spending was primarily due to poor conditions within the industry compounded by the appreciation of the Canadian dollar, causing potential new applicants and recipients to experience intermittent financial difficulties. This in turn slowed the implementation of projects and reduced the industry's capability to invest in transformative projects.
Significant Evaluation Findings and URL(s) to Last Evaluation(s):
In response to the Formative Evaluation of the Canadian Apparel and Textile Industries Program (CATIP) – Textile Production Efficiency Component (TPEC/CANtex), Industry Canada has developed and begun implementing an action plan with particular emphasis on performance measurement to address recommendations as described in the management response to the evaluation.
Significant Audit Findings and URL(s) to Last Audit(s):
During 2007–08 an internal audit of the CATIP program was undertaken. Results will be presented to the Departmental Audit and Evaluation Committee in September 2008.

 


Community Access Program (CAP)1
Start Date: October 1994 End Date: March 31, 2009
Description:
Starting in the 1995–96 fiscal year, CAP was established under the government's Connecting Canadians initiative to provide affordable access to the Internet and the services and tools it provides. The program's goal was to have all Canadians and communities participate fully in the knowledge-based economy. CAP sites are located in schools, libraries, community centres and friendship centres, and they operate through partnerships with provincial/territorial governments and non-profit organizations.
Strategic Outcomes:
Competitive industry and sustainable communities
Results Achieved:
In 2007–08, CAP supported approximately 3,800 public Internet access sites located in every province and territory.
(in thousands of
dollars)
Actual Spending
2005–06
Actual Spending
2006–07
Planned Spending
2007–08
Total Authorities
2007–08
Actual Spending
2007–08
Variances Between Planned Spending and Actual Spending
Program Activity: Spectrum, Information Technologies and Telecommunications (SITT) Sector – Economic Development
Total Contributions 29,442 25,534 23,000 23,927 23,622 (622)
Total Program
Activity
29,442 25,534 23,000 23,927 23,622 (622)
Comment(s) on Variance(s):
The $0.6 million variance results from additional funds provided by the Department to supplement funding approved in the Fiscal Framework.
Significant Evaluation Findings and URL(s) to Last Evaluation(s):
The most recent evaluation of CAP was completed in January 2004. The evaluation concluded that CAP has succeeded in bridging the gap in public Internet access and skills and continues to be relevant. The evaluation also found that the program is being delivered as intended and reaching its target groups.
Evaluation Study of the Community Access Program (CAP), January 16, 2004
Significant Audit Findings and URL(s) to Last Audit(s):
The most recent audit of the Community Access Program was completed in 2003 and approved by senior management in February 2004. This audit was a follow-up audit of selected programs in the Information Highway Applications Branch and primarily focused on CAP. The follow-up audit concluded that the Branch had implemented all the actions required in the Action Plan of September 2000 to the satisfaction of the Departmental Audit and Evaluation Committee.
Follow-up Audit of Selected Programs in the Information Highway Applications Branch (IHAB), January 2004

1 Planned spending figures include $9.3 million for Youth Employment Strategy (YES) and $7.7 million for Community Access Program. The planned spending amount for YES did not appear in Table 12: Details on Industry Canada Transfer Payments Programs of the Report on Plans and Priorities for 2007–2008, but it is included in the total planned spending for the Department.


Computers for Schools Program (CFS)2
Start Date: 1994 End Date: March 31, 2013
Description:
Starting in the 1993–94 fiscal year, CFS was established to support the refurbishing of computers and related equipment donated by governments and businesses and distributing them across Canada to schools, libraries and registered not-for-profit learning organizations. CFS also delivers a complementary youth component, the CFS Youth Initiative, which is funded through Human Resources and Social Development Canada's Youth Employment Strategy (YES). This initiative assists youth between the ages of 15 and 30 years in obtaining information and communications technology (ICT) skills to better prepare them in seeking employment in the knowledge economy through internships in computer refurbishing centres across Canada providing support in activities such as computer repair, technical support, and website design.
Strategic Outcomes:
Competitive industry and sustainable communities
Results Achieved:
In 2007–08 the Computers for Schools Program refurbished and delivered 78,102 computers to schools and other learning organizations. Since its inception in 1994, 896,726 computers have been delivered to schools and other learning organizations.
(in thousands of dollars) Actual Spending
2005–06
Actual Spending
2006–07
Planned
Spending
2007–08
Total Authorities
2007–08
Actual Spending
2007–08
Variances Between Planned Spending and Actual Spending
Program Activity: SITT Sector – Economic Development
Total Contributions 20,124 12,173 10,000 7,433 7,418 2,582
Total Program
Activity
20,124 12,173 10,000 7,433 7,418 2,582
Comment(s) on Variance(s):
Planned spending included $2.5 million that was transferred to Indian and Northern Affairs Canada for the delivery of the First Nations SchoolNet Youth Initiative pursuant to an Order-in-Council that transferred the administration and delivery of this program to Indian and Northern Affairs Canada.
Significant Evaluation Findings and URL(s) to Last Evaluation(s):
The evaluation undertook a review of three sub-programs within the broader SchoolNet family of programs including Computers for Schools. One key finding with respect to this program was the need to re-engage the private sector, including large corporations, as originally done by the program. Evaluation of the SchoolNet Program (January 2004)
Significant Audit Findings and URL(s) to Last Audit(s):
In 2005, an audit of SchoolNet's Family of Programs, including CFS, found that the management control framework and related practices and internal controls were operating as intended, and are in compliance with Treasury Board's Policy on Transfer Payments. The audit also found that the SchoolNet Family of Programs, including CFS, has implemented a number of noteworthy and leading practices, including the programs' successful use of partnerships to leverage additional support for program delivery, the use of a collaborative approach in the development of programming objectives and priorities, the high level of commitment among staff and management, and the frequency and form of communications between program staff and management and its recipients. Audit of the SchoolNet Family of Programs (January 2005)

2 Planned spending figures include $6.0 million for the Youth Employment Strategy (YES) and $4.0 million for Computers for Schools. Planned spending figures under the Computers for Schools Program did not appear under Table 12: Details on Industry Canada Transfer Payments Programs of the Report on Plans and Priorities for 2007–2008, as the planned spending figure was lower than $5 million.


FedNor – Community Futures (CF) Program
Start Date: 1986 End Date: October 2, 2010
Description:
The program contributes to community economic development in rural Ontario.
Strategic Outcomes:
Competitive industry and sustainable communities
Results Achieved:
Improved community capacity and long-term sustainable economic development in rural Ontario
(in thousands of dollars) Actual Spending
2005–06
Actual Spending
2006–07
Planned Spending
2007–08
Total Authorities
2007–08
Actual Spending
2007–08
Variances Between Planned Spending and Actual Spending
Program Activity: Operations Sector – Economic Development
Total Contributions 20,259 20,261 20,860 20,816 20,816 44
Total Program
Activity
20,259 20,261 20,860 20,816 20,816 44
Comment(s) on Variance(s):
Not Applicable
Significant  Evaluation Findings and URL(s) to Last Evaluation(s):
“…the [Community Futures] program is relevant. There is a need for the CF program to provide…capacity building at the community level…and strategic planning services, business development services [and]…access to capital. These needs are best filled by the CFDCs because of their local knowledge and presence, as well as their ability to provide services that address the range of aforementioned needs. The program does not duplicate or overlap others. It does, however, complement a wide range of federal as well as some provincial initiatives.”

“…the [CF] program is successful. It is reaching youth, women, Aboriginal people, Francophones…and, most importantly, the program is making a difference: it has resulted in new businesses being created, others being maintained or expanded; [The CF] program is cost-effective. While there are areas of improvement, the program does not duplicate others.” (Evaluation of the Community Futures Program in Ontario, March 31, 2003) Evaluation of Community Futures Program in Ontario

A comprehensive evaluation of the Community Futures Program is being conducted across Canada by FedNor and the Regional Development Agencies administering the program: Western Economic Diversification; Canada Economic Development for Quebec Regions; and the Atlantic Canada Opportunities Agency. The four individual draft reports are expected to be completed in July 2008, and the national evaluation roll-up report is to be completed by October 2008.
Significant Audit Findings and URL(s) to Last Audit(s):
"The Community Futures (CF) Program has a clearly-defined management control framework that has assisted FedNor and Industry Canada to deliver the program…in a cost-effective manner…The Program has established key controls that define the roles and responsibilities of all parties involved in the Program; its policies, guidelines and processes are well documented and provide guidance and direction to the Program's recipients and to their clients; and the Program's decision-making process is clearly outlined and transparent." (Internal Audit, May 2004) Audit of the Ontario Community Futures Program

 


FedNor – Eastern Ontario Development Program (EODP)
Start Date: October 12, 2004 End Date: March 31, 2009
Description:
Community economic development in rural Eastern Ontario
Strategic Outcomes:
Competitive industry and sustainable communities
Results Achieved:
Improved community capacity and long-term sustainable economic development in Eastern Ontario.
(in thousands of dollars) Actual Spending 2005–06 Actual Spending
2006–07
Planned Spending
2007–08
Total Authorities
2007–08
Actual Spending
2007–08
Variances Between Planned Spending and Actual Spending
Program Activity: Operations Sector – Economic Development
Total Contributions 11,950 9,599 10,000 9,400 9,400 600
Total Program
Activity
11,950 9,599 10,000 9,400 9,400 600
Comment(s) on Variance(s):
Not Applicable
Significant Evaluation Findings and URL(s) to Last Evaluation(s):
A summative evaluation of the EODP, conducted in 2007, determined that the program is: relevant to meet the needs of Eastern Ontario; cost-effective; and is effective in contributing to economic and social development in rural Eastern Ontario. The evaluation will be posted at strategis.ic.gc.ca/epic/site/ae-ve.nsf/en/00351e.html.
Significant Audit Findings and URL(s) to Last Audit(s):
Audits are carried out in accordance with annual risk-based planning processes. The Eastern Ontario Development Program has not been audited because other, higher risk projects were identified.

 


FedNor – Northern Ontario Development Program (NODP)
Start Date: April 1, 1996 End Date: June 30, 2011
Description:
The program contributes to regional economic development in Northern Ontario.
Strategic Outcomes:
Competitive industry and sustainable communities
Results Achieved:
Improved community capacity and long-term sustainable economic development in Northern Ontario.
(in thousands of dollars) Actual Spending
2005–06
Actual Spending
2006–07
Planned
Spending
2007–08
Total Authorities
2007–08
Actual Spending
2007–08
Variances Between Planned Spending and Actual Spending
Program Activity: Operations Sector – Economic Development
Total Contributions 44,545 36,859 36,440 37,184 37,184 (744)
Total Program
Activity
44,545 36,859 36,440 37,184 37,184 (744)
Comment(s) on Variance(s):
Not Applicable
Significant Evaluation Findings and URL(s) to Last Evaluation(s):
A formative evaluation conducted on NODP in 2008 determined that the program ensures collaboration with other government programs, avoids duplication, fully addresses monitoring, data capture and performance reporting issues identified in earlier evaluations, and is in keeping with results management accountability framework requirements. The evaluation will be posted at strategis.ic.gc.ca/epic/site/ae-ve.nsf/en/00351e.html.
Significant Audit Findings and URL(s) to Last Audit(s):
Industry Canada's Audit and Evaluation Branch completed an audit of NODP in 2007. The audit determined that the management control framework, related practices and internal controls are in place and are in compliance with Treasury Board's Policy on Transfer Payments. It also determined that appropriate management processes are in place to assess recipient compliance with respect to their contribution agreement. The audit will be posted at strategis.ic.gc.ca/epic/site/ae-ve.nsf/en/00350e.html.

 


Ontario Potable Water Program (OPWP)
Start Date: February 15, 2008 End Date: March 31, 2011
Description:
OPWP provides financial assistance in the form of grants to specific small and rural Ontario municipalities that incurred increased costs in the development of their Canada–Ontario Infrastructure Program (COIP) drinking water projects as a result of having to comply with Ontario drinking water regulations.
Strategic Outcomes:
Competitive industry and sustainable communities
Results Achieved:
The promotion of regional economic development in specific small and rural Ontario municipalities by addressing funding pressures incurred in the development of their potable water projects.
(in thousands of dollars) Actual Spending
2005–06
Actual Spending
2006–07
Planned
Spending
2007–08
Total Authorities
2007–08
Actual Spending
2007–08
Variances Between Planned Spending and Actual Spending
Program Activity: Operations Sector – Economic Development
Total Grants 19,400 2,169 (2,169)
Total Program
Activity
19,400 2,169 (2,169)
Comment(s) on Variance(s):
As the program did not commence until February 2008, actual spending was small compared with total authorities during 2007–08.
Significant Evaluation Findings and URL(s) to Last Evaluation(s):
Not Applicable
Significant Audit Findings and URL(s) to Last Audit(s):
Not Applicable

 


Structured Financing Facility (SFF)
Start Date: September 31, 2001 End Date: March 31, 2013
Description:
In September of 2007, Treasury Board approved a renewed Structured Financing Facility Program for five years starting in 2007–08 with an investment of $50 million over the next three years.

This program stimulates economic activities in the Canadian shipbuilding and industrial marine industry by providing financial assistance to buyers/lessees of Canadian-built ships.

Objective
  • The SFF will help ensure that shipyard capability exists for federal procurement and maintenance needs in 2009 and beyond.
  • The SFF will enable the domestic shipbuilding industry to maintain a competitive environment as required by the Buy Canada government procurement policy.
Given the current international context in the shipbuilding and industrial marine industry sector, the SFF Program is a key component of the Canadian shipbuilding policy framework (Focusing on Opportunities: A New Policy Framework for the Canadian Shipbuilding and Industrial Marine Industry), which is designed to achieve the objectives stated above.
Strategic Outcomes:
Competitive industry and sustainable communities
Results Achieved:
In 2007–08, the SFF approved three projects and contracted five projects. SFF cost per person-year for the five contracted projects is expected to be $19,109, which is consistent with targets. There were $4.9 million in disbursements, representing $99 million in shipyard sales. The five contracted projects represent a projected 653 person-years of employment.
(in thousands of dollars) Actual Spending
2005–06
Actual Spending
2006–07
Planned
Spending
2007–08
Total Authorities
2007–08
Actual Spending
2007–08
Variances Between Planned Spending and Actual Spending
Program Activity: Industry Sector – Economic Development
Total Contributions 16,025 9,854 21,510 15,550 4,967 16,543
Total Program
Activity
16,025 9,854 21,510 15,550 4,967 16,543
Comment(s) on Variance(s):
Two factors have led to a significant variance between planned and actual spending. First, four projects were withdrawn and did not use their allocated resources. Second, manufacturing delays on in-progress projects mean that funds that were planned to be disbursed in fiscal year 2007–08, will now be used in the following fiscal year because the SFF Program only provides funds once a vessel has been completed.
Significant Evaluation Findings and URL(s) to Last Evaluation(s):
  1. SFF funding cycles should be reviewed in conjunction with an approval-in-principle mechanism developed to respond to production cycles in the shipbuilding industry where development from bid to launch could take up to four years.
  2. Consultation with shipbuilding and shipowner representatives should be undertaken on a regular basis.
  3. The SFF Program administrators should design and implement a national publicity strategy within the shipbuilding and shipowner communities to communicate the benefits and limitations of the program.
  4. SFF Program personnel should undertake a more active cooperation and coordination role with complementary programs offered by provincial and federal governments and agencies.
  5. The SFF Program should initiate consultations to determine the feasibility of establishing a domestic version of Export Development Canada's export performance guarantees.
  6. Future SFF terms and conditions should eliminate the credit insurance component, which has not been used over the life of the program, and replace this component with bonding or other guarantees that could enhance the competitiveness of smaller shipyards.
  7. The Aerospace, Defence and Marine Branch should establish baseline data and ongoing performance indicators/criteria to assist in measuring longer term outcomes for the SFF.
Final Evaluation of the Structured Financing Facility Program
Significant Audit Findings and URL(s) to Last Audit(s):
Audit findings:
    1. Instances were noted where information in project files was not supported
        by sufficient backup documentation and/or was not in accordance with
        documented program procedures.
    2. The date of receipt of a completed application under the program is not clearly
        identified.

Details on Other Programs


Canada Small Business Financing (CSBF) Program3
Start Date: 1961 End Date: Ongoing
Description:
Loan loss sharing program, in partnership with financial institutions, designed to increase access to financing for Canadian small and medium-sized enterprises (SMEs).
Strategic Outcomes:
Competitive industry and sustainable communities
Results Achieved:
Loans made:
A total of 9,015 loans, representing $1.0068 billion, were made to SMEs under the CSBF Program in 2007–08.

Claims paid:
In 2007–08, 1,843 CSBF claims totalling $99.3 million, 43 Small Business Loans Act (SBLA) claims totalling $1.3 million, and 35 Capital Leasing Pilot Project claims totalling $0.9 million were paid.
(in thousands of dollars) Actual Spending
2005–06
Actual Spending
2006–07
Planned
Spending
2007–08
Total Authorities
2007–08
Actual Spending
2007–08
Variances Between Planned Spending and Actual Spending
Program Activity: Operations Sector – Economic Development
Total Other Types
of Transfer
Payments
72,975 81,283 92,000 100,259 100,259 (8,259)
Total Program
Activity
72,975 81,283 92,000 100,259 100,259 (8,259)
Comment(s) on Variance(s): Not Applicable
Significant Evaluation Findings and URL(s) to Last Evaluation(s):
In 2004–05, the CSBF Program was reviewed (Canada Small Business Financing Act Comprehensive Review Report, 1999-2004.), covering the five-year period from April 1, 1999 to March 31, 2004. The review concluded that the program was still relevant to the needs of small business, there are no viable alternatives to it, and there is minimal overlap between it and other federal initiatives to support access to financing by small businesses.

Independent research and an outside evaluation of the CSBF program (Canada Small Business Financing Program Comprehensive Review Studies – Summary) under the direction of a public-private-sector committee, based on a Result-Based Management and Accountability Framework, was completed to support this review.

The next review of the CSBF Program, covering the five-year period from April 1, 2004 to March 31, 2009, must be tabled in Parliament by March 31, 2010.
Significant Audit Findings and URL(s) to Last Audit(s):
In 2007–08, the CSBF Program underwent an internal audit of the management of its revenues. Findings are pending.

3 Industry Canada is responsible for the Canada Small Business Financing (CSBF) Program. This program does not provide grants and contributions; therefore, it is not reported in the table “Details on Transfer Payments Programs.”


Loan Guarantee Payments Pursuant to Paragraph 14(1)(b) of the Department of Industry Act 4
Start Date: 1977 End Date: 2008
Description:
Loan loss sharing program, in partnership with private sector financial institutions, designed to assist Bombardier in marketing its DHC-7 and DHC-8 turboprop aircraft to increase the competitiveness of the Canadian aerospace industry.
Strategic Outcomes:
Competitive industry and sustainable communities
Results Achieved:
The program was developed to assist Bombardier in marketing its turboprop aircraft by providing sales financing support (loss insurance to lenders and lessors providing financing to purchasers of Bombardier turboprop aircraft). The objective of the program, improved competitiveness of Bombardier and the Canadian aerospace industry and job creation, was achieved.
(in thousands of dollars) Actual Spending
2005–06
Actual Spending
2006–07
Planned
Spending
2007–08
Total Authorities
2007–08
Actual Spending
2007–08
Variances Between Planned Spending and Actual Spending
Program Activity: Industry Sector – Economic Development
Total Other Types
of Transfer
Payments
108,388 108,388 (108,388)
Total Program
Activity
108,388 108,388 (108,388)
Comment(s) on Variance(s):
Credit insurance (loan/lease loss sharing) of $1 billion over the life of the program. The Department's aircraft sales financing portfolio of defaulted projects was wound down in 2007–08 and a claim of $108,388,000 was paid to the lender.
Significant Evaluation Findings and URL(s) to Last Evaluation(s):
Not Applicable
Significant Audit Findings and URL(s) to Last Audit(s):
Not Applicable

4 Industry Canada is responsible for the Enterprise Development Program (EDP) – Aircraft Sales Financing. This program does not provide grants and contributions; therefore, it is not reported in the table “Details on Transfer Payments Programs.”