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2007-08
Departmental Performance Report

Industry Canada

Supplementary Information (Tables)

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Table of Contents

• Loans, Investments and Advances (Non-Budgetary)
• Sources of Respendable and Non-respendable Revenue
• User Fees/External Fees
• Details on Transfer Payments Programs
• Conditional Grants (Foundations)
• Horizontal Initiatives
• Sustainable Development Strategy
• Response to Parliamentary Committees and External Audits
• Internal Audits and Evaluations
• Travel Policies
• Financial Statements
• Supplementary Program Activity Information

Table 1: Loans, Investments and Advances (Non–Budgetary)*

($ millions)	Actual 2005–06	Actual 2006–07	2007–08
			Main Estimates	Planned Spending	Total Authorities	Actual
Competitive Industry and Sustainable Communities
Industry Sector – Economic Development
Payments Pursuant to Subsection 14(2) of the Department of Industry Act	–	–	0.3	0.3	0.3	–
Loans Pursuant to Paragraph 14(1)(a) of the Department of Industry Act	–	–	0.5	0.5	0.5	–
Operations Sector – Economic Development
Advances to regional offices and employees posted abroad. Appropriation Act No. 1 1970. Limit $1,950,000 (Net)	–	–	–	–	2.0	–
Total	–	–	0.8	0.8	2.8	–

*Minor differences are due to rounding.

Table 2: Sources of Respendable and Non–Respendable Revenue*

Respendable Revenue

($ millions)	Actual 2005–06	Actual 2006–07	2007–08
			Main Estimates	Planned Spending	Total Authorities	Actual
A Fair, Efficient and Competitive Marketplace
Operations Sector – Marketplace
Bankruptcy and Insolvency Administration	31.9	32.3	31.9	31.9	31.9	31.9
Corporations Regulation	7.9	8.6	8.4	8.4	8.6	8.6
Competition Bureau
Competition Law and Policy	10.4	10.5	10.5	10.5	10.5	10.5
Canadian Intellectual Property Office – Revolving Fund **	137.3	148.5	139.1	139.1	139.1	149.0
Subtotal	187.5	199.9	189.9	189.9	190.1	200.0
An Innovative Economy
Communications Research Centre Canada
Communications Research	8.4	8.9	8.7	8.7	10.8	10.8
Subtotal	8.4	8.9	8.7	8.7	10.8	10.8
Total Respendable Revenue	195.9	208.8	198.5	198.5	200.9	210.8

*Minor differences are due to rounding.
** As a Special Operating Agency within Industry Canada, with a revolving fund authority, the Canadian Intellectual Property Office finances its operations entirely from revenues generated by fees received from the provision of intellectual property (IP) services.

Non–Respendable Revenue

($ millions)	Actual 2005–06	Actual 2006–07	2007–08
			Main Estimates	Planned Spending	Total Authorities	Actual
A Fair, Efficient and Competitive Marketplace
Operations Sector – Marketplace
Bankruptcy and Insolvency Supervision	1.0	2.7		4.1		4.9
Corporations Regulations (including NUANS)	1.6	3.2		2.8		7.1
Trade Measurement Regulation	1.6	1.2		1.6		1.0
Prior Year Refunds, interest and others ***	26.7	24.6		–		19.3
Competition Bureau – Marketplace
Fines	8.1	6.6		–		14.7
Consumer Labelling and Advertising Regulation	0.1	0.1		0.1		0.1
Prior Year Refunds, interest and other ***	2.2	4.3		–		4.9
Spectrum, Information Technologies and Telecommunications Sector – Marketplace **	205.6	205.0		210.9		205.6
Office of Consumer Affairs – Prior Year Refunds, interest and other						0.1
Subtotal	247.0	247.7		219.6		257.7
An Innovative Economy
Communications Research Centre Canada
Communications Research	1.5	3.0		1.5		2.0
Technology Partnerships Canada – Special Operating Agency
Receipts from Repayable Contributions	79.9	92.0		101.8		140.3
Prior Year Refunds, interest and other ***	11.3	22.9		–		12.2
Spectrum, Information Technologies and Telecommunications Sector
Receipts from Repayable Contributions				–		5.7
Prior Year Refunds, interest and other ***				–		0.3
Subtotal	92.8	117.9		103.3		160.5
Competitive Industries and Sustainable Communities
Spectrum, Information Technologies and Telecommunications Sector – Economic Development	2.1	1.9		–		0.7
Operations Sector – Economic Development
Small Business Loans Act (SBLA)/Canada Small Business Financing Act (CSBFA) Service Fees	59.3	60.0		59.3		56.6
Receipts from Repayable Contributions	20.3	7.9		12.0		7.8
Return on Investment	18.2	21.1		21.0		21.7
Prior Year Refunds, interest and other ***	3.0	16.0		–		2.7
Industry Sector – Economic Development
Receipts from Repayable Contributions	32.9	40.1		41.1		47.8
Prior Year Refunds, interest and other ***	9.9	9.7		–		13.7
Subtotal	145.7	156.7		133.5		151.0
Total Non–Respendable Revenue	485.4	522.3		456.3		569.2

*Minor differences are due to rounding.
** Revenues do not include deferred revenues being realized in relationship to the amortization of licence fee revenue received in previous years.
*** Certain non-respendable revenue cannot be planned for given the nature of the revenue.

Table 3: User Fees / External Fees

Access to Information and Privacy (ATIP)

						2007–08
A. User Fee	Fee Type		Fee-Setting Authority		Date Last Modified	Forecast Revenue ($000)		Actual Revenue ($000)	Full Cost ($000)		Performance Standard*		Performance Results*
Access to Information and Privacy (ATIP) fees	Regulatory		Access to Information Act and Privacy Act		1983	3		6	1,607		Framework under development by Treasury Board Secretariat (TBS)		Statutory deadlines met 94 percent of the time
Total						3		6	1,607
Planning Years
Forecast Revenue ($000)							Estimated Full Cost ($000)
2008–09		2009–10		2010–11			2008–09			2009–10		2010–11
4		4		4			1,706			1,706		1,706
B. Date Last Modified Not Applicable
C. Other Information The Access to Information Act (ATI Act) states that all formal requests submitted must be accompanied by a $5 application fee and are to be payable to the Receiver General for Canada. All fees prescribed and received pursuant to the ATI Act are returned to the Consolidated Revenue Fund. All fees collected and waived under the ATI Act are detailed in the Department's annual report to Parliament on the Access to Information Act.

* According to prevailing legal opinion, where the corresponding fee introduction or most recent modification occurred prior to March 31, 2004, the:

• performance standard, if provided, may not have received parliamentary review;
• performance standard, if provided, may not respect all establishment requirements under the User Fees Act (e.g., international comparison, independent complaint address); and
• performance result, if provided, is not legally subject to section 5.1 of the User Fees Act regarding fee reductions for unachieved performance.

A. External Fee	Service Standard*	Performance Result**	Stakeholder Consultation
Fees charged for the processing of access requests filed under the Access to Information Act	Framework under development by TBS More information available at: lois.justice.gc.ca/en/a-1/8.html	Statutory deadlines met 94 percent of the time	This service standard is established under the Access to Information Act and the Access to Information Regulations. Consultations with stakeholders were undertaken for amendments done in 1986 and 1992.
B. Other Information The Access to Information Act permits the waiving of fees when deemed to be in the public interest and if under $25. The fees collected during the reporting period totalled $6,240. In accordance with government policy, it is the Department's practice to waive fees where the total owing per request amounts to less than $25. Fees of $1,595 were waived during 2007–08. There continues to be a significant increase in the number of times fees are waived due to the ongoing use of an electronic disclosure service. In order to reduce costs and increase efficiency, released documents are provided on CD-ROM, which means no reproduction fees are charged to the applicant.

* As established pursuant to the Policy on Service Standards for External Fees:

• service standards may not have received parliamentary review; and
• service standards may not respect all performance standard establishment requirements under the User Fees Act (e.g., international comparison, independent complaint address).

** Performance results are not legally subject to section 5.1 of the User Fees Act regarding fee reductions for unachieved performance.

Canada Small Business Financing Program

					2007–08
A. User Fee	Fee Type		Fee-Setting Authority	Date Last Modified	Forecast Revenue ($000)		Actual Revenue ($000)	Full Cost ($000)		Performance Standard*	Performance Results*
Canada Small Business Financing Act	Regulatory		Canada Small Business Financing Act (CSBFA)	Fees were established for the CSBFA in April 1999, and for the Capital Leasing Pilot Project in April 2002	58,600		57,334	4,987		The following standards were set: Two days or less to register loans 20 days or less to process claims	The following results were obtained: Standard of 2 days or less to register loans met 100 percent of the time Time required to process a claim in 2007–08 was an average of 14 days Standard of 20 days or less to process claims met 79 percent of the time
Small Business Loans Act	Regulatory		Small Business Loans Act (SBLA)	A 1.25-percent administration fee was established in 1995	700		400	0		The following standard was set: 20 days or less to process claims	The following results were obtained: Time required to process a claim in 2007–08 was an average of 23 days Standard of 20 days or less to process claims met 50 percent of the time
Total					59,300		57,734	4,987
Planning Years
Forecast Revenue ($000)						Estimated Full Cost ($000)
2008–09		2009–10		2010–11		2008–09			2009–10		2010–11
CSBFA: 53,841		CSBFA: 54,134		CSBFA: 51,362		CSBFA: 5,337			CSBFA: 5,135		CSBFA: 4,591
SBLA: 200		SBLA: 100		SBLA: 50		SBLA: 0			SBLA: 0		SBLA: 0
B. Date Last Modified Not Applicable
C. Other Information "Full Cost" figures represent the cost of the Canada Small Business Financing (CSBF) Directorate to administer the CSBF and SBLA programs. Full cost does not include expenses with claim payments made to financial institutions as a result of defaulted loans or leases. These expenses are covered in financial tables for Details on Other Programs.

* According to prevailing legal opinion, where the corresponding fee introduction or most recent modification occurred prior to March 31, 2004, the:

• performance standard, if provided, may not have received parliamentary review;
• performance standard, if provided, may not respect all establishment requirements under the User Fees Act (e.g., international comparison, independent complaint address); and
• performance result, if provided, is not legally subject to section 5.1 of the User Fees Act regarding fee reductions for unachieved performance.

 

A. External Fee	Service Standard*	Performance Result**	Stakeholder Consultation
Canada Small Business Financing Act (CSBFA) Loans component (registration and administration fees) Capital leases component (administration fees)	The following standards were set: Two days or less to register loans Less than 20 days to process claims	The following results were obtained: Standard of 2 days or less to register loans met 100 percent of the time Time required to process a claim in 2007–08 was an average of 14 days Standard of 20 days or less to process claims met 79 percent of the time	Discussions and a survey of participating lenders indicate satisfaction with performance results. Annual meetings with key lenders will continue to include discussions on stakeholder satisfaction with service standards and results.
Small Business Loans Act (SBLA) Administration fees	The following standard was set: Less than 20 days to process claims	The following results were obtained: Time required to process a claim in 2007–08 was an average of 23 days Standard of 20 days or less to process claims met 50 percent of the time	Discussions and a survey of participating lenders indicate satisfaction with performance results. Annual meetings with key lenders will continue to include discussions on stakeholder satisfaction with service standards and results.
B. Other Information Not Applicable

* As established pursuant to the Policy on Service Standards for External Fees:

• service standards may not have received parliamentary review; and
• service standards may not respect all performance standard establishment requirements under the User Fees Act (e.g., international comparison, independent complaint address).

** Performance results are not legally subject to section 5.1 of the User Fees Act regarding fee reductions for unachieved performance.

Canadian Intellectual Property Office (CIPO)

					2007-2008
A. User Fee	Fee Type		Fee-Setting Authority	Date Last Modified	Forecast Revenue ($000)		Actual Revenue ($000)	Full Cost ($000)		Performance Standard*		Performance Results*
The majority of CIPO's fees are charged for services that are provided by a regulating authority	Regulatory (R)		Financial Administration Act	June 2, 2007				129,920		Patents: 80 percent of applications with a request for examination processed in less than 24 months		72 percent of applications with a request for examination processed in less than 24 months
	CIPO grants or registers ownership for five types of intellectual property: patents, trademarks, copyright, industrial designs and integrated circuit topographies		Patent Act		Patents: 110,228		Patents: 112,790
			Trade-marks Act		Trademarks: 25,703	Trademarks: 27,006				Trademarks: Processed within 6 months of the filing date		Processed within 6.8 months of filing date
			Copyright Act		Copyright: 579	Copyright: 636				Industrial Design: Processed within 13 months of receipt of application		Processed within 10 months from receipt of application
			Industrial Design Act		Industrial Design: 3,704	Industrial Design: 3,354
			Integrated Circuit Topography Act							Copyright: Processed within 3 working days from receipt of application		Processed within 1.8 working days from receipt of application
			Department of Industry Act		Information: 593	Information: 702				Information: Percentage of increased awareness and use of intellectual property (SME segment)		36 percent familiar with IP (Baseline in 2006–07, triennial)
Total:					140,807	144,488
Planning Years
Forecast Revenue ($000)						Estimated Full Cost ($000)
2008–09		2009–10		2010–11		2008–09			2009–10		2010–11
148,791		153,659		154,591		144,467			150,375		154,184
B. Date Last Modified Minor amendments to the fees came into force June 2, 2007. Please note that the last major amendments to the schedule of fees came into force on January 1, 2004.
C. Other Information Minor amendments to remove fee for amending the trademarks register and to provide free certified copies of documents to the Federal Court came into force on June 2, 2007.

* According to prevailing legal opinion, where the corresponding fee introduction or most recent modification occurred prior to March 31, 2004, the:

• performance standard, if provided, may not have received parliamentary review
• performance standard, if provided, may not respect all establishment requirements under the User Fees Act (e.g., international comparison, independent complaint address); and
• performance result, if provided, is not legally subject to section 5.1 of the User Fees Act regarding fee reductions for unachieved performance.

A. External Fee	Service Standard*	Performance Result**	Stakeholder Consultation
CIPO grants or registers ownership for five types of intellectual property: patents, trademarks, copyright, industrial designs and integrated circuit topographies	Patents: 80 percent of applications with a request for examination processed in less than 24 months Trademarks: Processed within 6 months of the filing date Copyrights: Processed within 3 working days from receipt of application Industrial designs: Processed within 13 months of receipt of application Information: Baseline (survey SME segment)	Patents: 72 percent of applications with a request for examination processed in less than 24 months Trademarks: Processed within 6.8 months of the filing date Copyrights: Processed within 1.8 working days from receipt of application Industrial designs: Processed within 10 months of receipt of application Information: 36 percent familiar with IP property (Baseline 2006–07)	January 2004 — Amendments Extensive formal consultations were undertaken in 2002 with the broad intellectual property constituency through letters, the Internet and information sessions. There was strong endorsement of the need to increase existing fees to support service delivery improvements and to introduce new services, such as international searches and international preliminary examinations.   June 2, 2007 — Amendments Consultations were undertaken, mainly via CIPO’s website. There was consensus.
B. Other Information Not Applicable

* As established pursuant to the Policy on Service Standards for External Fees:

• service standards may not have received parliamentary review; and
• service standards may not respect all performance standard establishment requirements under the User Fees Act (e.g., international comparison, independent complaint address).

** Performance results are not legally subject to section 5.1 of the User Fees Act regarding fee reductions for unachieved performance.

 

Competition Bureau

				2007-2008
A. User Fee	Fee Type	Fee-Setting Authority	Date Last Modified	Forecast Revenue ($000)	Actual Revenue ($000)	Full Cost ($000)	Performance Standard*	Performance Results*
Combined Merger Notification and Advance Ruling Certificate requests	Regulatory	Department of Industry Act Competition Bureau Fee and Service Standards Policy	April 1, 2003	2,588	2,700	15,955	Non-complex: 14 days Complex: 10 weeks Very complex: 5 months	95.7 percent 91.3 percent 100 percent
Merger Notification	Regulatory			1,294	700	3,713	Non-complex: 14 days Complex: 10 weeks Very complex: 5 months	95.7 percent 91.3 percent 100 percent
Advance Ruling Certificate requests	Other products and services			9,059	11,925	2,184
Written opinions: The Commissioner may provide binding opinions on proposed business conduct	Other products and services			73	22	294	Performance standards vary, ranging from two weeks to 10 weeks for different sections of the Competition Act	33.3 percent
Competition Act (CA) number: Provide a CA number for fabric tags	Other products and services	Department of Industry Act		111	103	253	There are no performance standards for this service	The majority of requests are answered instantly
Total				13,125	15,450	22,400
Planning Years
Forecast Revenue ($000)				Estimated Full Cost ($000)
2007-2008	2008-2009	2009-2010		2007-2008		2008-2009		2009-2010
13,125	13,125	13,125		21,482		21,482		21,482
B. Date last modified Not Applicable
C. Other Information Not Applicable

*According to prevailing legal opinion, where the corresponding fee introduction or most recent modification occurred prior to March 31, 2004, the:

• performance standard, if provided, may not have received parliamentary review;
• performance standard, if provided, may not respect all establishment requirements under the User Fees Act (e.g., international comparison, independent complaint address); and
• performance result, if provided, is not legally subject to section 5.1 of the User Fees Act regarding fee reductions for unachieved performance.

Corporations Canada

						2007–08
A. User Fee	Fee Type		Fee-Setting Authority	Date Last Modified		Forecast Revenue ($000)		Actual Revenue ($000)	Full Cost ($000)		Performance Standard*		Performance Results*
Corporations Canada has several product offerings, including file articles of incorporation, letters patent, file articles of continuance, file statements of revocation of intent to dissolve, file annual returns, and name searches	Regulatory		Canada Business Corporations Act (CBCA), Canada Corporations Act, Canada Cooperatives Act	No activity in 2007–08 Most recent consultations were undertaken in 2000–01, when Corporations Canada introduced a reduction in the incorporation fee and annual return fee		10,500		14,953	13,272		Internet: CBCA incorporation applications received by 1:00 p.m. EST via e-commerce are processed by 5:00 p.m. EST Visitors: Clients who come to headquarters between 8:30 a.m. and 2:30 p.m. will receive one-hour, over-the-counter service Batches: Batches of five or more articles are processed within the same day if received before 8:00 a.m.		94.5 percent of CBCA incorporations received via e–commerce issued within standard 100 percent of requests (CBCA incorporations and restated articles) issued within standard 100 percent of requests issued within standard
											Canada Corporations Act (CCA) Part II incorporation applications are processed within 20 business days		90 percent of Canada Corporations Act (CCA) Part II incorporations received by mail are issued within standard
											CBCA annual returns are processed and available on the Corporations Canada website within five business days		100 percent of annual returns received by mail are available on the Corporations Canada website within standard
											Canada Corporations Act (CCA) Part II annual summaries are processed and available on the Corporations Canada website within 20 business days		100 percent of annual summaries received by mail are available on the Corporations Canada website within standard
											Amendments under the CBCA incorporation applications received by 1:00 p.m. EST via e-commerce are processed by 5:00 p.m. EST		95 percent of amendments under the CBCA incorporation received via e-commerce issued within standard
											Service standards are available on the Corporations Canada website
Total						10,500		14,953	13,272
Planning Years
Forecast Revenue ($000)							Estimated Full Cost ($000)
2008–09		2009–10			2010–11		2008–09			2009–10		2010–11
11,300		11,500			11,700		12,489			12,489		12,489

*According to prevailing legal opinion, where the corresponding fee introduction or most recent modification occurred prior to March 31, 2004, the:

• performance standard, if provided, may not have received parliamentary review;
• performance standard, if provided, may not respect all establishment requirements under the User Fees Act (e.g., international comparison, independent complaint address); and
• performance result, if provided, is not legally subject to section 5.1 of the User Fees Act regarding fee reductions for unachieved performance.

A. External Fee	Service Standard*	Performance Result**	Stakeholder Consultation
Corporations Canada has several product offerings, including file articles of incorporation, letters patent, file articles of continuance, file statements of revocation of intent to dissolve, file annual returns and name searches	Incorporations under the CBCA Internet: CBCA incorporation applications received by 1:00 p.m. EST via e-commerce are processed by 5:00 p.m. EST Visitors: Clients who come to headquarters between 8:30 a.m. and 2:30 p.m. will receive one-hour, over-the-counter service Batches: Batches of five or more articles are processed within the same day if received before 8:00 a.m.	94.5 percent of CBCA incorporation received via e–commerce issued within standard 100 percent of requests (CBCA incorporation and restated articles) issued within standard 100 percent of requests (CBCA incorporation and restated articles) issued within standard	Once a year, Corporations Canada organizes information sessions in various cities across Canada Corporations Canada also has a visit program with key clients in order to get continuous feedback for potential improvements of our products and services
	Incorporations under the Canada Corporations Act (CCA) Part II CCA Part II incorporation applications are processed within 20 business days	90 percent of CCA Part II incorporations received by mail are issued within standard
	Annual returns under CBCA CBCA annual returns are processed and available on the Corporations Canada website within five business days	100 percent of annual returns received by mail are available on the Corporations Canada website within standard
	Annual summaries under CCA Canada Corporations Act (CCA) Part II annual summaries are processed and available on the Corporations Canada website within 20 business days	100 percent of annual summaries received by mail are available on the Corporations Canada website within standard
	Amendments under the CBCA incorporation Applications received by 1:00 p.m. EST via e-commerce should be processed by 5:00 p.m. EST	95 percent of amendments under the CBCA incorporation received via e-commerce issued within standard
	Other services such as revival, certificate, copies	Service standards are available on the Corporations Canada website

*As established pursuant to the Policy on Service Standards for External Fees:

• service standards may not have received parliamentary review; and
• service standards may not respect all performance standard establishment requirements under the User Fees Act (e.g., international comparison, independent complaint address).

** Performance results are not legally subject to section 5.1 of the User Fees Act regarding fee reductions for unachieved performance.

Measurement Canada

						2007–08
A. User Fee	Fee Type		Fee-Setting Authority		Date Last Modified	Forecast Revenue ($000)		Actual Revenue ($000)	Full Cost ($000)		Performance Standard*		Performance Results*
Device Approval and Measurement Standard Certification	Regulatory		Weights and Measures Act		1993	260		223	879		Certificate of Calibration is issued in 60 calendar days Notice of Approval is issued in 90 calendar days if device is in compliance with requirements		Performance standard met, on average, 95 percent of the time Performance standard met, on average, 70 percent of the time
Device Inspection	Regulatory		Weights and Measures Act		1993	900		307	1,210		Inspection performed within 10 calendar days of receipt of request		Performance standard met, on average, 80 percent of the time
Meter Approval and Measuring Apparatus Certification	Regulatory		Electricity and Gas Inspection Act		1995	160		212	835		Certificate of Calibration is issued in 60 calendar days Notice of Approval is issued in 90 calendar days if meter is in compliance with requirements		Performance standard met, on average, 95 percent of the time Performance standard met, on average, 70 percent of the time
Meter Inspection	Regulatory		Electricity and Gas Inspection Act		1995	200		88	347		Inspection is performed within 10 calendar days of receipt of request		Performance standard met, on average, 80 percent of the time
Electricity and Gas Accreditation (initial and renewal)	Regulatory		Electricity and Gas Inspection Act		1995	110		135	532		Accreditation is granted within one month of an audit that demonstrates the applicant has met all requirements		Performance standard met 100 percent of the time
Total						1,630		965	3,802
Planning Years
Forecast Revenue ($000)							Estimated Full Cost ($000)
2008–09		2009–10		2010–11			2008–09			2009–10		2010–11
990		900		850			3,901			3,546		3,349
B. Date Last Modified Not Applicable
C. Other Information A 10-percent increase in client demand for measuring device and electricity and natural gas meter approvals (over 2006–07 service demand) coupled with the need to train and mentor new employees in response to unexpected departures of experienced staff, resulted in a 10-percent decrease in Measurement Canada's ability to achieve its related service standard.

*According to prevailing legal opinion, where the corresponding fee introduction or most recent modification occurred prior to March 31, 2004, the:

• performance standard, if provided, may not have received parliamentary review;
• performance standard, if provided, may not respect all establishment requirements under the User Fees Act (e.g., international comparison, independent complaint address); and
• performance result, if provided, is not legally subject to section 5.1 of the User Fees Act regarding fee reductions for unachieved performance.

A. External Fee	Service Standard*	Performance Result**	Stakeholder Consultation
Measurement standards certification and measuring device approvals	Certificate of Calibration issued within 60 calendar days Notice of Approval issued within 90 calendar days if the device is in compliance with the requirement	Performance standard met, on average, 95 percent of the time Performance standard met, on average, 70 percent of the time	Clients are provided with the opportunity to express their views through an online service feedback form and during stakeholder meetings. Feedback is analyzed for trends and changes in processes instituted to improve service performance. Modifications to the standards will be introduced in 2008–09.
Measuring device inspection	Inspection is performed within 10 calendar days of receipt of request	Performance standard met, on average, 80 percent of the time	Clients are provided with the opportunity to express their views through an online service feedback form and during stakeholder meetings. Feedback is analyzed for trends and changes in processes instituted to improve service performance.
Measuring apparatus certification and electricity and natural gas meter approval	Certificate of Calibration issued within 60 calendar days Notice of Approval issued within 90 calendar days if the device is in compliance with the requirements	Performance standard met, on average, 95 percent of the time Performance standard met, on average, 70 percent of the time	Clients are provided with the opportunity to express their views through an online service feedback form and during stakeholder meetings. Feedback is analyzed for trends and changes in processes instituted to improve service performance. Modifications to the standards will be introduced in 2008–09.
Electricity and natural gas meter inspection	Inspection is performed within 10 calendar days of receipt of request	Performance standard met, on average, 80 percent of the time	Clients are provided with the opportunity to express their views through an online service feedback form and during stakeholder meetings. Feedback is analyzed for trends and changes in processes instituted to improve service performance.
Electricity and Gas Accreditation	Accreditation is granted within one month of an audit that demonstrates the applicant has met all requirements	One month performance target met 100 percent of the time	Clients are provided with the opportunity to provide feedback through an online service feedback form and as part of ongoing evaluation of program performance.
B. Other Information Not Applicable

* As established pursuant to the Policy on Service Standards for External Fees:

• service standards may not have received parliamentary review; and
• service standards may not respect all performance standard establishment requirements under the User Fees Act (e.g., international comparison, independent complaint address).

** Performance results are not legally subject to section 5.1 of the User Fees Act regarding fee reductions for unachieved performance.

Office of the Superintendent of Bankruptcy

						2007–08
A. User Fee	Fee Type		Fee-Setting Authority		Date Last Modified	Forecast Revenue ($000)		Actual Revenue ($000)	Full Cost ($000)		Performance Standard*		Performance Results*
Registration Fee	Regulatory (R)		Bankruptcy and Insolvency Act (BIA) and Rules		2001	9,190		9,481	12,440		Registration of new estates: 90 percent of the time within two days		99.9 percent of estates registered within standard
Superintendent Levy	Regulatory (R)		Bankruptcy and Insolvency Act (BIA) and Rules		2001	21,784		23,060	30,256		Letters of comment: Issued 90 percent of the time within 21 business days of receipt of the Statement of Affairs		93 percent of letters issued within standard
Name Search Fee	Regulatory (R)		Bankruptcy and Insolvency Act (BIA) and Rules		2001	2,751		3,158	4,144		Faxes answered within 24 hours		99.9 percent of faxes responded to within standard
Trustee Licence Fee	Regulatory (R)		Bankruptcy and Insolvency Act (BIA) and Rules		2001	1,000		1,013	1,329		No standard. Annual fee is paid by a trustee in order to retain his/her licence. The licence is annulled if the fee is not paid.		Not Applicable
Total						34,725		36,712	48,169
Planning Years
Forecast Revenue ($000)							Estimated Full Cost ($000)
2008–09		2009–10		2010–11			2008–09			2009–10		2010–11
37,539		38,536		39,844			49,812			49,812		49,812

*According to prevailing legal opinion, where the corresponding fee introduction or most recent modification occurred prior to March 31, 2004, the:

• performance standard, if provided, may not have received parliamentary review;
• performance standard, if provided, may not respect all establishment requirements under the User Fees Act (e.g., international comparison, independent complaint address); and
• performance result, if provided, is not legally subject to section 5.1 of the User Fees Act regarding fee reductions for unachieved performance.

Spectrum Management

						2007–08
A. User Fee	Fee Type		Fee-Setting Authority		Date Last Modified	Forecast Revenue ($000)		Actual Revenue ($000)	Full Cost ($000)		Performance Standard*	Performance Results*
Radio Authorizations:	Regulatory		Financial Administration Act Radiocommuni-cations Act Department of Industry Act		Radio Authorization fees: 2000	210,000		222,431	97,560
1. Land Mobile:
a. Predetermined (fixed parameters)											Processing time of 3 weeks (15 working days) per transaction	Three-week processing standard met 98.8 percent of the time
b. Non–predetermined (requiring frequency assignment and electromagnetic compatibility study											Processing time of 7 weeks (35 working days) per transaction	Seven-week processing standard met 97.8 percent of the time
2. Fixed service											Processing time of 4 weeks (20 working days) per transaction	Four-week processing standard met 93.7 percent of the time
3. Space service											Processing time of 9 weeks (45 working days) per transaction	Nine-week processing standard met 100 percent of the time
Radio and Terminal Equipment Approval						1,150		1,039	1,613
Old Fee Structure	(R)		Financial Administration Act		January 21, 1998			689	500		Processing time of 3 to 5 weeks per transaction	35 days maximum performance results met 100 percent of the time
New Fee Structure	(R)		Department of Industry Act		September 10, 2007
											Processing time per transaction:	Performance standard met:
Registration Fee								153	306		Two business days	90 percent of the time
Listing Fee								126	128		Two business days	90 percent of the time
Assessment Fee								71	70		14 days	90 percent of the time
Technical Expertise Fee								0	N/A		Case-by-case basis	This service was not requested in 2007–08
Total						211,150		223,470	99,173
Planning Years
Forecast Revenue ($000)							Estimated Full Cost ($000)
2008–09		2009–10		2010–11			2008–09			2009–10		2010–11
Radio Authorizations
215,000		215,000		215,000			95,043			95,043		95,043
B. Date Last Modified Not Applicable
C. Other Information Following the recommendations made in the Office of the Auditor General's annual report released in May 2008 (Chapter 1, Management of Fees in Selected Departments and Agencies), Industry Canada has agreed to take the necessary steps to address the concerns raised with regard to improving the way it currently reports on its spectrum fees. A Working Group has been formed and a proposal will be made to the Deputy Minister prior to reporting in the 2008–09 DPR.
Radio and Terminal Equipment Approval
650		650		650			1,332			1,274		1,338
B. Date Last Modified The Order implementing the new fee structure was published on September 1, 2007 pursuant to sections 18 and 20 of the Department of Industry Act. The fees are in effect as of September 10, 2007.
C. Other Information The difference between the costs of providing the program associated with the registration of terminal equipment and the revenues is attributed to the fact that a smaller number of registration submissions than were originally expected were received in 2007–08.

* According to prevailing legal opinion, where the corresponding fee introduction or most recent modification occurred prior to March 31, 2004, the:

• performance standard, if provided, may not have received parliamentary review;
• performance standard, if provided, may not respect all establishment requirements under the User Fees Act (e.g., international comparison, independent complaint address); and
• performance result, if provided, is not legally subject to section 5.1 of the User Fees Act regarding fee reductions for unachieved performance.

A. External Fee	Service Standard*	Performance Result**	Stakeholder Consultation
1. Land Mobile Service:  a. Predetermined (fixed      parameters)	Processing time of 3 weeks (15 working days) per transaction	Three-week processing standard met 98.8 percent of the time	A client satisfaction survey was conducted in the spring of 2005. Results indicate that clients are mostly satisfied or very satisfied with the service levels. The next client satisfaction survey will be done in 2008–09.
b. Non-predetermined (requiring frequency assignment and electromagnetic compatibility study)	Processing time of 7 weeks (35 working days) per transaction – 13 weeks (65 working days) if international coordination is required	Seven-week processing standard met 97.8 percent of the time
2. Fixed service	2. Processing time of 4 weeks (20 working days) per transaction	2. Four-week processing standard met 93.7 percent of the time
3. Space service	3. Processing time of 9 weeks (45 working days) per transaction	3. Nine-week processing standard met 100 percent of the time
B. Other Information Following the recommendations made in the Office of the Auditor General’s annual report released in May 2008 (Chapter 1, Management of Fees in Selected Departments and Agencies), Industry Canada has agreed to take the necessary steps to address the concerns raised with regard to improving the way it currently reports on its spectrum fees. A Working Group has been formed and a proposal will be made to the Deputy Minister prior to reporting in the 2008–09 DPR.

*As established pursuant to the Policy on Service Standards for External Fees:

• service standards may not have received parliamentary review; and
• service standards may not respect all performance standard establishment requirements under the User Fees Act (e.g., international comparison, independent complaint address).

** Performance results are not legally subject to section 5.1 of the User Fees Act regarding fee reductions for unachieved performance.

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): 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. Consultation with shipbuilding and shipowner representatives should be undertaken on a regular basis. 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. SFF Program personnel should undertake a more active cooperation and coordination role with complementary programs offered by provincial and federal governments and agencies. The SFF Program should initiate consultations to determine the feasibility of establishing a domestic version of Export Development Canada's export performance guarantees. 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. 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.”

Table 5: Foundations (Conditional Grants)

Industry Canada is responsible for administering funding agreements with the following foundations. Further information on these projects can be found at www.tbs-sct.gc.ca/rma/dpr1/06-07/index_e.asp.

An Innovative Economy

• Canada Foundation for Innovation
• Canadian Institute for Advanced Research
• CANARIE Network (formerly CANARIE–CA*net 5)
• Council of Canadian Academies
• Genome Canada
• Trudeau Foundation
• Perimeter Institute
• Precarn Incorporated, Phase 4
• Seven Centres of Excellence

Competitive Industry and Sustainable Communities

• Canadian Youth Business Foundation

An Innovative Economy

Canada Foundation for Innovation (CFI)

Start Date: April 25, 1997		End Date: 2012		Total Funding: $4.24 billion
Description: The CFI funds infrastructure investment to strengthen the capability of Canadian universities, colleges, research hospitals and other not-for-profit institutions to carry out world-class research.
Strategic Outcome: An innovative economy
Summary of Results Achieved by the Recipient: CFI-funded infrastructure projects are located in 64 municipalities across Canada. Increasingly, researchers from elsewhere in the host province and abroad are using this infrastructure, which serves as a magnet for investment and talent. The CFI supports national S&T objectives and strengthens Canada's capacity for innovation by: Supporting economic growth and job creation, as well as health and environmental quality through innovation Increasing Canada's capability to carry out important world-class scientific research and technology development Expanding research and job opportunities for young Canadians Promoting productive networks and collaboration among Canadian post-secondary educational institutions, research hospitals, and the private 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: Policy Sector – Science and Technology (S&T) and Innovation	–	–	26,700	26,700	26,700	–
Comment(s) on Variance(s): Not Applicable
Significant Evaluation Findings and URL(s) to Last Evaluation(s) / Future Plans: CFI has scheduled the following evaluation activities for 2008–09: Overall Performance Evaluation to commence in 2008 Need for New/Renewal of Research Infrastructure to begin in 2009 (Special Study) International Comparison Study to be finalized by March 2009 (Special Study) Six to nine Outcome Measurement Study visits to be completed by March 2009 Other evaluation activities include: Annual analysis of project reports from more than 3,000 projects Evaluation of New Opportunities Fund (NOF) conducted in June 2007
Significant Audit Findings and URL(s) to Last Audit(s) / Future Plans: CFI has scheduled the following audit activities for 2008–09: Value-for-Money (Performance) Audit to start in 2008 Financial statement audit (annually) Contributions Audits – CFI-funded projects (annually)
Recipient's Website: Canada Foundation for Innovation
Recipient's Annual Report: www.innovation.ca/en

 

Canadian Institute for Advanced Research (CIFAR)

Start Date: April 1, 2002		End Date: March 31, 2012		Total Funding: $50 million
Description: CIFAR is a not-for-profit corporation that supports networks of some of the best Canadian and international researchers in conducting long-term research on scientific, social and economic issues of vital importance to Canada.
Strategic Outcome: An innovative economy
Summary of Results Achieved by the Recipient: A new funding agreement was signed between CIFAR and the Minister of Industry in 2007, fulfilling the 2007 Budget commitment to provide CIFAR with an additional $10 million over two years. This funding allows CIFAR to continue supporting research across its 12 innovative research programs with their 266 program members. These programs include quantum information processing, genetic networks and integrated microbial biodiversity.
(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 – Science and Technology (S&T) and Innovation	–	–	–	5,000	5,000	(5,000)
Comment(s) on Variance(s): Not Applicable
Significant Evaluation Findings and URL(s) to Last Evaluation(s) / Future Plans: An evaluation was not conducted in 2007–08. However, the unique and strategic nature of CIFAR and its impressive track record were confirmed in an independent evaluation completed by BearingPoint in March 2005. The evaluation concluded that CIFAR is a successful, well-managed organization and that it has contributed to strengthening Canada's innovation system through the development of linkages between researchers and potential users of research knowledge, by raising the awareness of key players in the innovation system of the importance of research and through strengthening Canada's base of highly qualified researchers. The next program evaluation is due to the Minister by June 30, 2010.
Significant Audit Findings and URL(s) to Last Audit(s) / Future Plans: CIFAR provides to the Minister an annual report that contains audited financial statements. It met its obligations under the previous Funding Agreement.
Recipient's Website: CIFAR
Recipient's Annual Report: CIFAR Annual Report

 

CANARIE Network

Start Date: April 1, 2007		End Date: March 31, 2012		Total Funding: $120 million
Description: CANARIE Inc. operates and develops Canada's advanced, high speed backbone network that facilitates the development and use of next-generation technologies. In partnership with advanced research networks in every province, it connects research facilities, educational institutions, hospitals and other science facilities to each other and to their international peers. It is an essential tool for researchers and scientists engaged in collaborative work.
Strategic Outcome: An innovative economy
Summary of Results Achieved by the Recipient: Achievements included the transition to a new backbone network and the launch of the Infrastructure Extension Program and the Network-Enabled Platforms Program. These programs support CANARIE Inc. objectives to expand and upgrade the advanced research network and to develop, demonstrate and implement next-generation technologies. CANARIE Inc. continued to work with partners such as provincial networks, federal labs, academia, the private sector, as well as international peer networks, to promote network development and innovation, identify technology and policy issues and facilitate collaboration.
(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 Telecommunication Sector – S&T and Innovation	–	24,000	24,000	15,000	15,000	9,000
Comment(s) on Variance(s): The $15 million payment is the second instalment of the $120 million conditional grant for CANARIE's Advanced Network.
Significant Evaluation Findings and URL(s) to Last Evaluation(s) / Future Plans: Industry Canada, in collaboration with the CANARIE Board of Directors, has commissioned a study to review the key issues and possible options on the future evolution of CANARIE Inc., based on potential changes to its mandate, funding support, financing and organizational models. A program evaluation and performance audit will be undertaken by CANARIE Inc. prior to the end of the program.
Significant Audit Findings and URL(s) to Last Audit(s) / Future Plans: At the request of Industry Canada, a compliance audit of the CANARIE Inc. grant began in January 2008 and will be completed by June 30, 2008.
Recipient’s Website: CANARIE
Recipient’s Annual Report: CANARIE 2007–2008 Annual Report

 

Council of Canadian Academies (CCA)

Start Date: July 2005		End Date: 2015		Total Funding: $30 million
Description: The Council of Canadian Academies is an arm’s length, not-for-profit organization that was established to assess the state of scientific knowledge underpinning key public policy issues. Its founding members are the Royal Society of Canada, the Canadian Academy of Engineering and the Canadian Academy of Health Sciences. The Government of Canada provided a $30 million one-time conditional grant in July 2005 from Budget 2005, which entitles the government to five assessments per year at no additional cost. Each assessment will likely take 18 months to two years to complete.
Strategic Outcome: An innovative economy
Summary of Results Achieved by the Recipient: The CCA released the assessment report Influenza Transmission and the Role of Personal Protective Respiratory Equipment: An Assessment of the Evidence in December 2007. This assessment will be used to update the Canadian Pandemic Influenza Plan for the Health Sector. The report has been noted by provincial health care organizations (notably in British Columbia and Ontario) and received media coverage in specialized publications in Canada and abroad (Europe). CCA assessments are under way on the following topics: groundwater in Canada; gas hydrates as an energy source; potential risks of nanotechnology; private sector innovation in Canada; strengths and weaknesses of the university-based research community in the areas of management, business and finance.
(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 – Science and Technology (S&T) and Innovation	30,000	–	–	–	–	–
Comment(s) on Variance(s): Not Applicable
Significant Evaluation Findings and URL(s) to Last Evaluation(s) / Future Plans: None
Significant Audit Findings and URL(s) to Last Audit(s) / Future Plans: A compliance audit of the Funding Agreement with the CCA was conducted in the summer of 2007, covering the period from the date of the signing of the agreement to March 31, 2007. The CCA was found to be in compliance with most of the requirements of the Funding Agreement. Areas of opportunities for improvement were identified. Industry Canada worked with the CCA in developing a Management Response and an Action Plan to respond to these recommendations.
Recipient’s Website: Council of Canadian Academies
Recipient’s Annual Report: CCA Annual Report 2007/2008

 

Genome Canada

Start Date: March 2000		End Date: March 2013		Total Funding: $840 million
Description: Genome Canada is an independent corporation with six regional genomics centres across Canada. Genome Canada, the primary funding and information resource concerned with genomics and proteomics in Canada, is enabling Canada to become a world leader in key areas of genomics research such as agriculture, environment, fisheries, forestry, health and new technology development, as well as ethical, environmental, economic, legal and social issues related to genomics.
Strategic Outcome: An innovative economy
Summary of Results Achieved by the Recipient: In 2007–08, the projects funded through Genome Canada’s Applied Genomics Research in Human Health Competition were successfully completed, as were the international Bovine Sequencing Project and the Genome Canada/Genome Spain Joint Project in Human Health, Plants and Aquaculture and projects supported to respond to the emerging C. difficile issue. Workshops in Swine Genomics and GE3LS and the 2nd Genome Canada International Conference were also completed. Genome Canada’s New Technology Development competition announced new funding for 11 large-scale projects, and position papers in applied genomics research in agricultural crops, Bioenergy and Bioproducts were identified and will be supported from funds received in Budget 2008. Researchers at Memorial University have discovered the gene responsible for Arrhythmogenic Right Ventricular Cardiomyopathy (ARVC), a deadly genetic heart condition that is highly predominant in the Province of Newfoundland and Labrador. ARVC is one of 28 genetic conditions being studied as part of the Atlantic Medical Genetics and Genomics initiative, a project focused on identifying genetic mutations underlying familial disorders arising in populations and communities throughout the Atlantic provinces. This project was made possible through Genome Canada's Competition III funding.
(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 – S&T and Innovation	165,000	–	–	6,700	6,700	(6,700)
Comment(s) on Variance(s): Not Applicable
Significant Evaluation Findings and URL(s) to Last Evaluation(s) / Future Plans: No evaluations were completed in 2007–08.
Significant Audit Findings and URL(s) to Last Audit(s) / Future Plans: No audits were completed in 2007–08. A Performance Audit is scheduled for 2008–09.
Recipient’s Website: Genome Canada
Recipient’s Annual Report: Genome Canada 2007–08 Annual Report

 

Trudeau Foundation⁵

Start Date: March 31, 2002			End Date: Ongoing		Total Funding: $125 million
Description: The goal of the Trudeau Foundation is to support research and the dissemination of research findings in the humanities and human sciences, such as Canadian studies, history, international relations, journalism, law, peace and conflict studies, philosophy, political economy, political science, sociology and urban and community studies.
Strategic Outcome: An innovative economy
Summary of Results Achieved by the Recipient: As required by the Funding Agreement, the Trudeau Foundation provided nine mentorships, 15 scholarships and five fellowships. In addition, under its Public Interaction Program, the Foundation hosted events designed to facilitate knowledge dissemination, such as the Annual Trudeau Conference on Public Policy and the Mentors-Scholars Retreat.
(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 – Science and Technology (S&T) and Innovation	–	–	–	–	–	–
Comment(s) on Variance(s): Not Applicable
Significant Evaluation Findings and URL(s) to Last Evaluation(s) / Future Plans: Although not required, the Foundation chose to undertake a preliminary evaluation in 2005 to ensure that it was meeting its objectives under the Funding Agreement. The evaluation was very thorough and many of its recommendations have already been implemented. The Summative Evaluation is due March 31, 2009.
Significant Audit Findings and URL(s) to Last Audit(s) / Future Plans: The Trudeau Foundation provides an annual report to the Minister that contains audited financial statements. It has met its obligations under the Funding Agreement.
Recipient’s Website: Trudeau Foundation
Recipient’s Annual Report: Trudeau Foundation Annual Report

⁵ Previously referred to as the Pierre Elliott Trudeau Foundation.

Perimeter Institute

Start Date: 2007		End Date: 2012		Total Funding: $50 million
Description: The Perimeter Institute is an independent, resident-based research institute devoted to foundational issues in theoretical physics at the highest levels of international excellence.
Strategic Outcome: An innovative economy
Summary of Results Achieved by the Recipient: In 2007–08, the Perimeter Institute continued to offer a dynamic, multidisciplinary environment with maximum research freedom, collaboration opportunities, and growing scientific programs. It has increased its research activities, expanded its educational programs and products reaching for students, teachers and the general public. Researchers in the Institute’s six research programs contributed 128 new publications that received 326 citations. 16 post-doctoral fellows from the world’s leading institutions were selected to join the Institute. A new Sabbatical Leave Program was launched, enticing 15 leading researchers to spend leaves of absence at the Institute. The Institute hosted 22 conferences, workshops and summer schools and presented over 190 scientific talks. The Institute developed PIRSA (Perimeter Institute Recorded Seminar Archive) as a leading international archive resource for recorded seminars.
(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 – Science and Technology (S&T) and Innovation	–	–	–	10,543	10,543	(10,543)
Comment(s) on Variance(s): Not Applicable
Significant Evaluation Findings and URL(s) to Last Evaluation(s) / Future Plans: No evaluations relative to this funding have yet been conducted. However, an evaluation will be completed by March 31, 2011.
Significant Audit Findings and URL(s) to Last Audit(s) / Future Plans: No audits relative to this funding have yet been conducted. However, a performance audit will be conducted by June 30, 2010.
Recipient’s Website: Perimeter Institute
Recipient’s Annual Report: Not Available

 

Precarn Incorporated, Phase 4

Start Date: April 1, 2005		End Date: March 2010		Total Funding: $20 million
Description: Precarn Inc. is Canada’s national organization for the development and commercialization of intelligent systems and robotics. To commercialize R&D, Precarn Inc. employs a partnership model with a private sector technology developer that enters into a collaborative relationship with both an end-user of the technology and a university or research institute.
Strategic Outcome: An innovative economy
Summary of Results Achieved by the Recipient: In 2007–08, Precarn Inc. funded 12 new pre-competitive R&D projects in the fields of intelligent systems and advanced robotics across the country for a total of $4.4 million. In 2007, over 400 private sector researchers and staff were actively engaged in Precarn Inc. 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: Spectrum, Information Technologies and Telecommunications Sector – S&T and Innovation	20,000	–	–	–	–	–
Comment(s) on Variance(s): Precarn Inc. was given a conditional lump sum grant of $20 million for the five-year period 2005–10, with no indication of expected annual expenditures for individual years within that period. Precarn Inc. reports its financial activities according to its Phase 4 Funding Agreement, which includes an Evaluation and Audit Plan.
Significant Evaluation Findings and URL(s) to Last Evaluation(s) / Future Plans: Summative evaluation to the Minister to be completed by March 31, 2010.
Significant Audit Findings and URL(s) to Last Audit(s) / Future Plans: Precarn Inc.’s annual audit for 2007–08 has been reviewed by Precarn’s Board of Directors, final publication pending official release by auditors.
Recipient’s Website: Precarn Incorporated
Recipient’s Annual Report: Not Available

 

Seven Centres of Excellence

Centre of Excellence: University of British Columbia (Brain Research Centre)		Start Date: April 2008			End Date: March 2012		Total Funding: $15 million
2. St. Michael’s           Hospital (Li Ka           Shing Knowledge           Institute)		January 2008			March 2011		$15 million
3. Dalhousie           University (Life           Sciences           Research           Institute)		January 2008			March 2011		$15 million
4. Canada School of           Energy and           Environment		April 2008			March 2010		$15 million
5. Heart and Stroke           Foundation of           Ontario (Heart           and Stroke           Foundation Centre           for Stroke           Recovery)		April 2008			March 2012		$15 million
6. National Optics           Institute		April 2008			March 2011		$15 million
7. McGill University           (Montreal           Neurological           Institute)		April 2008			March 2010		$15 million
Description: The federal government announced a total of $105 million in 2007–08 to Seven Centres of Excellence in areas where Canada has potential to be a world leader, such as energy, environmental technologies, information technologies and health sciences.
Strategic Outcome: An innovative economy
Summary of Results Achieved by the Recipient: As Centres received their funding in April 2008, there are no results to report yet relative to 2007–08.
(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 – Science and Technology (S&T) and Innovation	–		–	–	10,500	10,500		(10,500)
Comment(s) on Variance(s): Not Applicable
Significant Evaluation Findings and URL(s) to Last Evaluation(s) / Future Plans: No evaluations relative to this funding have been conducted and none are yet planned.
Significant Audit Findings and URL(s) to Last Audit(s) / Future Plans: No audits relative to this funding have been conducted and none are yet planned.
Recipient’s Website: Brain Research Centre Li Ka Shin Knowledge Institute Life Sciences Research Institute None Heart and Stroke Foundation INO Montreal Neurological Institute and Hospital
Recipient’s Annual Report: Brain Research Centre - Annual Report 2007 St. Michael's Hospital - 2005 Annual Report Not Available Not Available Heart and Stroke Foundation - Annual Report 2007 www.ino.ca/en/library/promotional-publications/ Not Available

 

Competitive Industry and Sustainable Communities

Canadian Youth Business Foundation (CYBF)

Start Date: April 1, 2002		End Date: September 2009			Total Funding: $17.5 million
Description: The goal of CYBF is to support and develop youth entrepreneurship. The youth business program provides loans, mentorship support and an interactive website to entrepreneurs between 18 and 34 years of age.
Strategic Outcome: Competitive industry and sustainable communities
Summary of Results Achieved by the Recipient:
Two lump sum payments of $7.5 million 2002–04 and $10 million 2005–09 (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	10,000	–	–	–	–	–
Comment(s) on Variance(s): Not Applicable
Significant Evaluation Findings and URL(s) to Last Evaluation(s) / Future Plans: The formative evaluation has indicated that CYBF is cost effective and efficient. There will be a final evaluation in the fall of 2009.
Significant Audit Findings and URL(s) to Last Audit(s) / Future Plans: The compliance audit report demonstrated that CYBF is meeting the majority of the Funding Agreement requirements.
Recipient’s Website: CYBF
Recipient’s Annual Report: CYBF – 2006 Annual Report

Table 6: Horizontal Initiatives

Industry Canada is involved in a number of horizontal initiatives, working in partnership with other federal departments, other levels of government, non-governmental organizations and private sector organizations. Industry Canada’s involvement in these initiatives contributes to the Department’s achievement of its strategic outcomes.

Industry Canada is the lead for the following significant horizontal initiatives. Supplementary information can be found on Treasury Board Secretariat's Horizontal Initiative Database.

• Canadian Biotechnology Strategy
• Canadian Business Network

Canadian Biotechnology Strategy

The Canadian Biotechnology Strategy (CBS) was wound down in May 2007, further to the release of the federal government’s Science and Technology Strategy, Mobilizing Science and Technology to Canada’s Advantage. As such, no horizontal activity took place under the auspices of CBS in 2007–08. Two strategic initiatives of the CBS — the Canadian Regulatory System for Biotechnology and Genomics R&D — have been retained by Health Canada and the National Research Council respectively. Performance of these two initiatives will be reported in the respective DPRs.
Name of Lead Department(s): Industry Canada, Agriculture and Agri-Food Canada, Canadian Food Inspection Agency, Fisheries and Oceans Canada, Department of Foreign Affairs and International Trade, Environment Canada, Health Canada, Natural Resources Canada, National Research Council Canada	Lead Department Program Activity: Not Applicable
Start Date of the Horizontal Initiative: 1998	End Date of the Horizontal Initiative: June 15, 2007
Total Federal Funding Allocation (start to end date): $467.9 million
Description of the Horizontal Initiative (including funding agreement): The vision of the Canadian Biotechnology Strategy (CBS) is to “enhance the quality of life of Canadians in terms of health, safety, the environment, and social and economic development by positioning Canada as a responsible world leader in biotechnology.” Acting within the CBS pillars of stewardship, citizen engagement and innovation, this horizontal initiative reports against three strategic initiatives: the CBS Fund, the Canadian Regulatory System for Biotechnology (CRSB) and the Genomics Research and Development (Genomics R&D) program. Each of these initiatives focuses on a different aspect of Canada’s biotechnology-related priorities, involving separate program management and resource allocation, as well as the profiling of initiatives that are linked through the CBS governance structure.
Shared Outcome(s): CBS wound down successfully and resources were reallocated to departmental priorities.
Governance Structure(s): The policy authority for the CBS ended on June 15, 2007. Further to a commitment under Mobilizing Science and Technology to Canada's Advantage, the roles and responsibilities of the Canadian Biotechnology Advisory Committee (CBAC) were consolidated into the new Science, Technology and Innovation Council. Industry Canada ensured the orderly wind-down of two key CBS mechanisms, the Canadian Biotechnology Secretariat and CBAC. Industry Canada also took over the responsibility for general reporting of the CBS. Two strategic initiatives of the CBS — the Canadian Regulatory System for Biotechnology and Genomics R&D — have been retained by Health Canada and the National Research Council respectively.

 

Canadian Business Network

(Amalgamation of Canada Business Service Centres (CBSC) and Business Gateway (BG))
Name of Lead Department(s): Industry Canada, Atlantic Canada Opportunities Agency, Western Economic Diversification Canada, Canada Economic Development for Quebec Regions		Lead Department Program Activity: Economic Development
Start Date of the Horizontal Initiative:	End Date of the Horizontal Initiative:		Total Federal Funding Allocation (start to end date):
Canada Business Service Centres (CBSC): Funding originally started in 1995 (February 9, 1995 TB 822499) Most recent renewal for period 2006–07 (Policy and funding approval: Building a More Innovative Economy — Jobs and Growth)	March 2009 — aiming for renewal (Fall of 2008–09)		$226.1 million (since 1995)
Business Gateway: Funding from 2000 to March 31, 2006 (Policy and funding approval: Government Online funding via Treasury Board Secretariat (TBS) initially / Public Works and Government Services Canada (PWGSC) — Gateways and Clusters)			$6.79 million (since 2000)
			Total: $232.89 million
Description of the Horizontal Initiative (including funding agreement): Canada Business was established to improve service to small business and start-up entrepreneurs by providing a comprehensive first stop for information on government services, programs and compliance requirements from federal and provincial/territorial levels of government. On behalf of the Government of Canada and its partners, Canada Business delivers a host of information products and resources through a variety of channels across Canada (web, in-person, telephone). Through its collaboration with the provinces and territories, information products and resources are supplemented by jurisdictionally relevant content — providing a truly client-centred, integrated information service.
Shared Outcome(s): Increased awareness and access to government business-related information, programs and services and facilitated compliance for business Increased use of self-service channels Reduced complexity in accessing programs and services and compliance requirements for SMEs Improved SME business planning and market research
Governance Structure(s): The Canada Business Network is managed on behalf of the federal government by the Atlantic Canada Opportunities Agency, Canada Economic Development for Quebec Regions, Industry Canada and Western Economic Diversification Canada. The lead organizations are responsible for ensuring compliance with all federal policies affecting program delivery in a collaborative environment, particularly policies on topics such as official languages, accessibility, access to information and privacy, federal identity and alternative service delivery.

 

Federal Partner(s)	Federal Partner Program Activity	Names of Programs for the Federal Partner(s)	Total Allocation from Start to End Date (in thousands of dollars)	Planned Spending for 2007–08 (in thousands of dollars)	Actual Spending in 2007–08 (in thousands of dollars)	Expected Results for 2007–08	Results Achieved in 2007–08
Industry Canada	Economic Development	Canada Business Network	$92,416	$6,504	$6,504	(Planned Results apply to each partner) Increased awareness and access to government business- related information, programs and services and facilitated compliance for business	234,191 clients were served using officer- assisted channels (i.e., telephone calls, in- person visits, email and fax), a decrease of 1.6 percent over fiscal year 2006–07
Atlantic Canada Opportunities Agency		Canada Business Network	$36,016	$2,641	$2,641	Increased use of Internet channel of service	7 million Internet visits to Canada Business Network websites, an increase of over 18 percent
Western Economic Diversification Canada		Canada Business Network	$49,964	$3,977	$3,977	Reduced complexity in accessing programs and services and compliance require- ments for small and medium-sized enterprises (SMEs)	Client satisfaction evaluations are undertaken every two years; none was performed during 2007–08
Canada Economic Development for Quebec Regions		Canada Business Network	$23,184	$1,878	$1,878	Improved SME business planning and market research	43,518 Interactive Business Plans were created, an increase of 3.6 percent over 2006– 07
Total			$201,580	$15,000	$15,000
Comments on Variance(s): Not Applicable
Results Achieved by Non-Federal Partners: Not Applicable
Contact Information: Marcie Girouard, Executive Director, Service Delivery and Partnerships

Table 7: Sustainable Development Strategy

A Sustainable Development Strategy (SDS) is a departmental strategy required by the Auditor General Act to advance the government’s commitment to development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

The theme of Industry Canada's Sustainable Development Strategy 2006–09 (SDS IV), which was tabled in Parliament in December 2006, is "to sell the sustainability value proposition." The Strategy seeks to further support efforts by the Department's partners and stakeholders to implement productivity-enhancing sustainability technologies and processes that can improve their economic, environmental and social performance.

The Strategy contains 26 action items spread across 11 branches in five sectors in the Department. The action items supporting the first strategic outcome — sustainability-driven technologies and commercialization — are related to renewable energy, the hydrogen economy, bio-refineries and vehicle fuel efficiency. Action items supporting the second strategic outcome, which aims to promote sustainability tools, practices, research and awareness, are related to corporate social responsibility, consumer policy research, sustainable “lean” manufacturing, sustainable “green” buildings, environmental industries, enhancing sustainable development in the curricula of post-secondary education, and recycling computers. The third strategic outcome aims to improve sustainability practices within Industry Canada, including by promoting training awareness of sustainable development, renewing the Strategic Environmental Assessment (SEA) for all policies, programs and plans of the Department, and further greening operations.

More information can be found on the Department’s Sustainable Development Strategy Website.

In 2006, prior to the preparation of the fourth round of sustainable development strategies, Environment Canada led efforts to improve coordination and consistency among departmental strategies. Through their Office of Greening Government Operations, Public Works and Government Services Canada led efforts to improve the Greening of Government Operations (GGO). As a consequence of this work, six federal sustainable development goals and three greening government operations goals were established. Ten action items within the Department’s Strategy will contribute to the following federal sustainable development goals:

• Environmental Quality Goals
  • Clean and secure water for people and marine and freshwater ecosystems
  • Clean air for people to breathe and for ecosystems to function well
  • Reduced greenhouse gas (GHG) emissions

• Sustainable Development Management Goals
  • A prosperous economy for communities, a healthy environment for current and future generations, and a vibrant and equitable society
  • Sustainable development and use of natural resources
  • Strengthened federal governance and decision making to support sustainable development

Satisfactory progress is being made on all the action items in the Strategy with a view to successful implementation by December 2009. For more information with respect to implementation of action items, please see the semi-annual progress reports.

 

Sustainable Development Strategy

1.  SDS Departmental Goal: In support of a competitive economy, Industry Canada is positioned as a leader in supporting sustainable development technologies and practices for businesses and consumers. The Strategy commits Industry Canada to pursue sustainability initiatives that will contribute to its three strategic outcomes: 1) Sustainability-driven technologies and commercialization: Increased development, commercialization, adoption and diffusion of environmental, energy and bio-based technologies. 2) Sustainability tools, practices, research and awareness: Increased use by firms, industries and institutions of sustainability and corporate social responsibility practices, and increased consumer awareness of sustainability issues. 3) Sustainability practices and operations within Industry Canada: Increased implementation of sustainable operations and practices and integration of sustainable development principles into departmental planning, performance measurement and evaluation frameworks.
2.  Federal sustainable development goal(s) including GGO goals, if applicable: 10 action items in Industry Canada’s SDS IV will contribute to the following federal sustainable development goals: Environmental Quality Goals Clean and secure water for people and marine and freshwater ecosystems Clean air for people to breathe and for ecosystems to function well Reduced greenhouse gas (GHG) emissions Sustainable Development Management Goals A prosperous economy for communities, a healthy environment for current and future generations, and a vibrant and equitable society Sustainable development and use of natural resources Strengthened federal governance and decision making to support sustainable development
3. Department’s Expected Results for 2007–08: Given that the 26 action items in the Strategy are spread across 11 branches in five sectors, there was continued progress on the implementation of the action items, with a view to their successful completion by December 2009. To obtain information on progress already made with respect to implementation of some action items, please see Sustainable Development Strategy 2006–2009.	4. Supporting Performance Measure(s): In support of the departmental sustainable development goal, the Strategy commits Industry Canada to achieving the following outcomes: 1) Increased sustainability-driven technologies and commercialization. 2) Increased sustainability tools, practices, research and awareness. 3) Increased sustainability practices and operations within Industry Canada.	5. Achieved SDS Departmental Results for 2007–08: The results achieved in fiscal year 2007–08 are noted through the preparation of two reports to the senior management and posted on the sustainable development website. Results are as expected and good progress is being made in meeting commitments made to the Sustainable Development Strategy. Please see Performance Report April 1, 2007–September 30, 2007.

Table 8: Response to Parliamentary Committees, Audits and Evaluations

Response to Parliamentary Committees

Parliamentary tabling of the government’s comprehensive response to the recommendations made by the House of Commons Standing Committee on Industry, Science and Technology (INDU) in its report entitled Manufacturing: Moving Forward – Rising to the Challenge: The government responded to all 22 recommendations in the INDU report, covering taxation, energy, labour, trade, intellectual property rights protection and regulatory, infrastructure, research, development and commercialization policies. The response highlighted measures in Advantage Canada and Budget 2007, including an accelerated capital cost allowance for investments in new machinery and equipment, initiatives to cut red tape, investments in critical infrastructure and efforts to create the best educated, most skilled and most flexible labour force in the world. Industry Canada prepared the Government Response to the Eighth Report of the Standing Committee on Industry, Science and Technology, Counterfeiting and Piracy are Theft. The government's response was tabled in Parliament on October 17, 2007. Government response to the Standing Committee report on a free trade agreement with the Republic of South Korea. The report addressed the implications and potential impacts on Canada of a free trade agreement with South Korea. The report addresses sectors of the economy that are under the responsibility of Industry Canada, e.g., automotive sector. The government's response has not yet been released. The Office of Consumer Affairs represented the Consumer Measures Committee (a federal/provincial/territorial committee of consumer protection officials) before the House Standing Committee on Access to Information, Privacy and Ethics in May 2007 to discuss federal and provincial initiatives to prevent and combat identity theft. In June 2006, members of the Standing Senate Committee on Agriculture and Forestry were authorized to research and report on rural poverty in Canada. FedNor made a presentation to the Committee on this subject in May 2007.

 

Response to the Auditor General (including to the Commissioner of the Environment and Sustainable Development)

The Commissioner of the Environment and Sustainable Development (CESD) responded to petitions and tabled two reports in 2007–08: one on Sustainable Development Strategies (SDS) and one on Strategic Environmental Assessment. Petitions The environmental petitions process is a formal way for Canadians to bring concerns about the environment and sustainable development to the attention of federal ministers and obtain a timely response. The petitions process was created as a result of a 1995 amendment to the Auditor General Act. On behalf of the Auditor General of Canada, the Commissioner of the Environment and Sustainable Development manages the petitions process and monitors responses to ensure that relevant questions and issues raised by Canadians receive a response from federal ministers. Petition responses by Industry Canada (2007–08) No. 184 – Determining Dangerous Atmospheric Carbon Dioxide Concentration (response April 16, 2007) No. 186 – Options to the Practice of Burning of Flax Straw on the Canadian Prairies (response April 13, 2007) No. 189 – Protecting Canadian Drinking Water (response May 10, 2007) No. 197 – Exposure to Electromagnetic Radiation (response August 14, 2007) No. 200 – Promotion of Sustainable Forest Industry through Competition Policy Reform (response September 14, 2007) No. 205 – Environmental, Social and Economic Impacts of Biofuel Production in Canada (response September 27, 2007) No. 208 – Impacts of Cellular Phone Towers and Antennas (response October 12, 2007) No. 223 – Green Procurement of Paper for both Publications and Internal Use by Federal Government Departments (response March 29, 2008) Sustainable Development Strategy (SDS) The Commissioner of the Environment and Sustainable Development (CESD) conducted an extensive audit of departmental SDSs, with a particular focus on 10 departments, including Industry Canada. He tabled his report in October 2007. The Commissioner found that the SDSs are not realizing their potential to integrate sustainable development (SD) thinking into the way departments define their business and make decisions. The CESD found systemic weaknesses in the governance, authority, accountability and direction of SDSs, and believes that this is indicative of higher level problems that must be addressed at a government-wide level. He considers that departments had not analyzed and considered the environmental, social and economic consequences of their current or proposed policies, programs or activities when developing their SDSs. He is concerned that senior managers across government viewed the SDSs as a compliance exercise rather than a change management initiative. Although Industry Canada received satisfactory ratings on four of five criteria, the Department’s SDS IV was not considered to be a substantive plan by the CESD. The Department received an unsatisfactory assessment because its targets were not considered to be adequately specific, measurable and time bound, and they were not published in the SDS IV. The Department provided evidence on how it is making progress on the quality of its targets, including by providing training to staff on how to set targets better. The Computers for Schools program was examined and its progress was found to be satisfactory. Many of the recommendations in the report are directed at issues that must be dealt with at a government-wide level, rather than by Industry Canada specifically. Accordingly, the Department has not prepared a formal response to the CESD audit, but is working with other government departments in a review and overhaul of the current approach to SD Strategies in the federal government. It is expected that a new approach to undertaking SD Strategies will be in place by the tabling of SDS V, expected in December 2009. Strategic Environmental Assessment (SEA) The CESD conducted an extensive audit of departmental implementation of the Cabinet Directive on Strategic Environmental Assessment (SEA), with a particular focus on 12 departments, including Industry Canada. The report, which was tabled in February 2008, found: There are weaknesses in accountability and transparency. There is no mechanism to hold departments to account if they do not complete an SEA. Most departments are not preparing public statements on their detailed SEAs, and when they are published they are difficult to find and do not contain sufficient information to assure stakeholders that environmental factors have been integrated in the decision-making process. There are deficiencies in completing and tracking SEAs, as there is a less than 50 percent completion rate of the required SEAs across government. There is a lack of consistency in most management systems. On a positive note, the Commissioner found that training and guidance have increased. In terms of moving forward, the Commissioner noted that senior management support and a well-functioning management system is essential for making progress on SEA. CESD also considers that the government-wide SEA evaluation, to be completed by December 2008, is important to guide the future course of SEA within the federal government. While Industry Canada is not one of the organizations directly noted in the chapter, the Department had already addressed many of the issues that CESD raised in his report. As of April 1, 2007, Industry Canada became fully transparent in the manner in which it manages public statements on SEAs. The Department made its full SEA website publicly accessible and has a dedicated part of the site devoted to publishing public statements on detailed SEAs. This site is also linked to the website of the Canadian Environmental Assessment Agency (CEAA). The Department was the fifth government department to become fully accessible and transparent with respect to SEAs, but has not yet had occasion to publish a public statement on a detailed SEA. In September 2007, approval was given by the Directors General Policy Committee (DGPC) to modify Industry Canada’s management system for SEAs in order to centralize and improve tracking, monitoring and quality assurance. In October 2007, the Department launched a newly updated SEA training course. With the support of CEAA, the course was given to 20 Industry Canada employees.

Table 9: Internal Audit and Evaluations

The Audit and Evaluation Branch
Through its professional internal audit and evaluation services, and the support it provides to the Departmental Audit Committee and the Departmental Evaluation Committee (prior to September 2007 these were unified as the Departmental Audit and Evaluation Committee), the Audit and Evaluation Branch reinforces good stewardship practices and sound decision-making and provides assurance to the Deputy and Associate Deputy Ministers. The Branch also contributes to making Industry Canada a learning organization and further supports the continuous improvement of departmental operations.

Internal Audits (2007–08)

1. Name of Internal Audit	2. Audit Type	3. Status	4. Completion Date	5. Electronic Link to Report
Audit of Selected Business Processes within Measurement Canada	Management Control Framework Audit	Complete	April 23, 2007	www.ic.gc.ca/epic/site/ae-ve.nsf/en/00694e.html
Audit of Broadband Rural and Northern Development Pilot Program	Management Control Framework Audit	Complete	December 12, 2007	www.ic.gc.ca/epic/site/ae-ve.nsf/en/00352e.html
Audit of Federal Economic Development Initiative in Northern Ontario (FedNor)	Management Control Framework Audit	Complete	December 12, 2007	www.ic.gc.ca/epic/site/ae-ve.nsf/en/00357e.html
Canada Strategic Infrastructure Fund	Management Control Framework Audit	Complete	December 12, 2007	www.ic.gc.ca/epic/site/ae-ve.nsf/en/00353e.html
Follow-up Audit of Communications and Marketing Branch Contracting Activities	Follow-up Audit	Complete	December 12, 2007	www.ic.gc.ca/epic/site/ae-ve.nsf/en/00354e.html
Follow-up Audit Report Pay and Benefits	Follow-up Audit	Complete	December 12, 2007	www.ic.gc.ca/epic/site/ae-ve.nsf/en/00356e.html
Follow-up Audit of the 2004 Audit of Comptrollership Communications Research Centre	Follow-up Audit	Complete	December 12, 2007	www.ic.gc.ca/epic/site/ae-ve.nsf/en/00355e.html
Canada-Ontario Infrastructure Program (COIP) / Canada-Ontario Municipal Rural Infrastructure Fund (COMRIF)	Management Control Framework Audit	Complete	March 14, 2008	www.ic.gc.ca/epic/site/ae-ve.nsf/en/01934e.html
Acquisition Cards Audit	Management Control Framework Audit	Complete	March 14, 2008	www.ic.gc.ca/epic/site/ae-ve.nsf/en/01935e.html
Audit of Contracting	Management Control Framework Audit	Complete	March 14, 2008	www.ic.gc.ca/epic/site/ae-ve.nsf/en/01936e.html

 

Evaluations (2007–08)

1. Name of Evaluation	2. Program Activity	3. Evaluation Type	4. Status	5. Completion Date	6. Electronic Link to Report
National Evaluation of the Softwood Industry and Community Economic Adjustment Initiative (SICEAI)	Industry Sector – Economic Development	Mid-term	Complete	April 23, 2007	www.ic.gc.ca/epic/site/ae-ve.nsf/en/01442e.html
Formative Evaluation of the Canadian Apparel and Textile Industries Program (CATIP) – Textile Production Efficiency Component (TPEC/CANtex)	Industry Sector – Economic Development	Formative	Complete	April 23, 2007	www.ic.gc.ca/epic/site/ae-ve.nsf/en/01426e.html
Formative Evaluation of the Broadband for Rural and Northern Development Pilot	Spectrum Information Technologies and Telecommunications (SITT) Sector – Economic Development	Formative	Complete	April 23, 2007	www.ic.gc.ca/epic/site/ae-ve.nsf/en/01425e.html
Final Evaluation of the Structured Financing Facility Program	Industry Sector – Economic Development	Summative	Complete	January 21, 2008	www.ic.gc.ca/epic/site/ae-ve.nsf/en/01929e.html
Final Evaluation of the Student Connections Program	Small Business and Marketplace Services and Regional Operations Sector – Economic Development	Summative	Complete	January 21, 2008	www.ic.gc.ca/epic/site/ae-ve.nsf/en/01930e.html

Table 10: Travel Policies

Industry Canada follows the Treasury Board of Canada Secretariat travel policy parameters.

Table 11: Financial Statements of Department of Industry

Statement of Management Responsibility

Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2008 and all information contained in this report rests with departmental management. These statements have been prepared by management in accordance with Treasury Board accounting policies, which are consistent with Canadian generally accepted accounting principles for the public sector.

Management is responsible for the integrity and objectivity of the information in these financial statements. Some of the information in the financial statements is based on management’s best estimates and judgement and gives due consideration to materiality. To fulfil its accounting and reporting responsibilities, management maintains a set of accounts that provides a centralized record of the department’s financial transactions. Financial information submitted to the Public Accounts of Canada and included in the department’s Departmental Performance Report is consistent with these financial statements.

Management maintains a system of financial management and internal control designed to provide reasonable assurance that financial information is reliable, that assets are safeguarded and that transactions are in accordance with the Financial Administration Act, are executed in accordance with prescribed regulations, within Parliamentary authorities, and are properly recorded to maintain accountability of Government funds. Management also seeks to ensure the objectivity and integrity of data in its financial statements by careful selection, training and development of qualified staff, by organizational arrangements that provide appropriate divisions of responsibility, and by communication programs aimed at ensuring that regulations, policies, standards and managerial authorities are understood throughout the department.

Management is supported by the Departmental Audit Committee (DAC). This Committee approves the departmental audit and evaluation plan and oversees the internal audit and evaluation activities in the Department. It also reviews the results of audits and evaluations as well as management responses and action plans developed to address audit or evaluation recommendations.

The financial statements of the department have not been audited.

Industry Canada Statement of Operations (Unaudited) For the period ended March 31 (in thousands of dollars)

	2008				2007
	Marketplace	Science, technology & innovation	Economic development	Total	Total
Expenses
Transfer payments
Industry	1	123,804	(962)	122,843	231,304
Other	7,779	270,898	208,311	486,988	496,789
Total Transfer Payments	7,780	394,702	207,349	609,831	728,093
Operating expenses
Salaries and employee benefits	267,093	105,842	127,712	500,647	515,195
Professional and special services	54,224	17,562	25,113	96,899	91,231
Accomodation	13,864	21,627	19,963	55,454	53,312
Travel	11,178	2,142	4,497	17,817	20,080
Amortization	9,156	4,723	1,561	15,440	18,244
Communication	7,001	1,529	4,509	13,039	18,216
Furniture and equipment	6,525	4,373	2,189	13,087	17,298
Equipment repair and maintenance	6,270	2,567	1,949	10,786	12,778
Rentals	9,024	443	1,044	10,511	10,974
Utilities, materials and supplies	3,288	4,227	2,406	9,921	9,794
Postage	1,290	237	375	1,902	2,887
Loss on disposal of capital assets	52	120	26	198	79
Other operating expenses	1,838	173	10,246	12,257	(1,849)
Total operating expense	390,803	165,565	201,590	757,958	768,239
Total expenses	398,583	560,267	408,939	1,367,789	1,496,332
Revenues
Sales of services	608,960	12,714	59,241	680,915	664,624
Dividends	–	–	21,482	21,482	20,847
Revenue from fines	14,969	–	–	14,969	6,857
Amortization of discounts	1,293	2,017	5,320	8,630	4,472
Other revenue	339	556	309	1,204	3,248
Gains on disposal of assets	301	11	34	346	213
Total revenues	625,862	15,298	86,386	727,546	700,261
Net cost of operations	(227,279)	544,969	322,553	640,243	796,071
The accompanying notes form an integral part of these financial statements.

 

Industry Canada Statement of Financial Position (Unaudited) At March 31 (in thousands of dollars)

	2008	2007
ASSETS
Financial assets
Accounts receivables and advances (Note 4)	207,628	215,227
Loans (Note 5)	360,473	280,303
Investments (Note 6)	1,066,400	1,066,400
Total financial assets	1,634,501	1,561,930
Non-financial assets
Prepayments	171	234
Tangible capital assets (Note 7)	111,115	107,674
Total non-financial assets	111,286	107,908
TOTAL	1,745,787	1,669,838
LIABILITIES
Accounts payable and accrued liabilities (Note 8)	855,754	627,073
Vacation and compensatory leave	22,816	24,149
Deferred revenue (Note 9)	958,159	1,125,237
Allowance for loan guarantee (Note 12)	301,751	409,828
Allowance for employee severance benefits (Note 11)	81,784	83,557
Other liabilities (Note 10)	27,743	25,163
	2,248,007	2,295,007
Equity of Canada	(502,220)	(625,169)
TOTAL	1,745,787	1,669,838
Contingent liabilities (Note 12)
Contractual obligations (Note 14)
The accompanying notes form an integral part of these financial statements.

 

Industry Canada Statement of Equity of Canada (Unaudited) At March 31 (in thousands of dollars)

	2008	2007
Equity of Canada, beginning of year	(625,169)	(714,151)
Net cost of operations	(640,243)	(796,071)
Current year appropriations used (Note 3)	1,363,914	1,189,667
Revenue not available for spending	(521,541)	(502,866)
Change in net position in the Consolidated Revenue Fund (Note 3)	(163,633)	116,783
Services provided without charge by other government departments (Note 15)	84,452	84,829
Equity Adjustment (Note 13)	–	(3,360)
Equity of Canada, end of year	(502,220)	(625,169)
The accompanying notes form an integral part of these financial statements.

 

Industry Canada Statement of Cash Flow (Unaudited) For the year ended March 31 (in thousands of dollars)

	2008	2007
Operating activities
Net cost of operations	640,243	796,071
Non-cash items:
Amortization of tangible capital assets	(15,440)	(18,244)
Gain on disposal and write-down of tangible capital assets	149	59
Loss on write-offs of tangible capital assets	–	–
Adjustment to tangible capital assets	1,005	(421)
Services provided without charge (Note 15)	(84,452)	(84,829)
Variations in Statement of Financial Position:
Decrease in liabilities	47,000	43,198
Increase in financial asset	72,572	35,562
Increase (decrease) in prepaid expenses	(63)	12
Change in equity (Note 13)	–	3,346
Cash used by operating activities	661,014	774,754
Capital investment activities
Acquisitions of tangible capital assets	18,089	29,090
Proceeds from disposal of tangible capital assets	(363)	(260)
Cash used by capital investment activities	17,726	28,830
Net cash provided by Government of Canada	678,740	803,584
The accompanying notes form an integral part of these financial statements.

Industry Canada Notes to the Financial Statements (Unaudited)

1. Authority and Objectives

   The authorities for the programs for which Industry Canada is responsible, are derived from the Department of Industry Act. Many other acts are under the responsibility of the Minister of Industry, and Treasury Board also defines other specific Industry authorities.

   Industry Canada aims to help Canadians contribute to the knowledge economy and improve productivity and innovation performance through its three strategic outcomes, which are mutually reinforcing. Sound marketplace frameworks help establish a business environment that supports innovation, investment and entrepreneurial activity. Fostering innovation in science and technology helps ensure that discoveries and breakthroughs happen here in Canada, and that the social and economic benefits of these innovations contribute to improving Canadians’ standard of living and quality of life. Encouraging investment in technology will help Canadian businesses to compete in the global marketplace and increase opportunities for trade. Successful businesses combined with a sound environment form the sustainable communities that attract investment. Taken together, the Department’s strategic outcomes support growth in employment, income and productivity, and promote sustainable development in Canada.

   Industry Canada’s activities are delivered at its headquarters in Ottawa as well as in the regions. There are six regional offices with service points located across Canada.

   Industry Canada has a number of transfer payment programs through which it provides grants and contributions to recipients in targeted groups and sectors. Each transfer payment program has specific objectives and expected results that support the achievement of Industry Canada’s strategic objectives.

2. Summary of Significant Accounting Policies

   The financial statements have been prepared in accordance with Treasury Board accounting policies, which are consistent with Canadian generally accepted accounting principles for the public sector.

   Significant accounting policies are as follows:

   1. Parliamentary appropriations — Industry Canada is financed through Parliamentary appropriations. Appropriations provided to the department do not parallel financial reporting according to generally accepted accounting principles since appropriations are primarily based on cash flow requirements. Consequently, items recognized in the statement of operations and the statement of financial position are not necessarily the same as those provided through appropriations from Parliament. Note 3 provides a high-level reconciliation between the bases of reporting.
   2. Consolidation — The financial statements include the accounts of Industry Canada including the revolving fund Canadian Intellectual Property Office (CIPO) and special operating agencies Measurement Canada, Superintendent of Bankruptcy and Industrial Technologies Office. The accounts of these sub-entities have been consolidated with those of the department and all inter-organizational balances and transactions have been eliminated. The department’s investment in the Business Development Bank of Canada (BDC) is recorded at cost. The net results of the BDC are not consolidated in these financial statements as the department is not deemed to control the Crown corporation.
   3. Net cash provided by Government — Industry Canada operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by Industry Canada is deposited to the CRF and all cash disbursements made by the department are paid from the CRF. The net cash provided by Government is the difference between all cash receipts and all cash disbursements including transactions between departments of the federal government.
   4. Change in net position in the Consolidated Revenue Fund — This is the difference between the net cash provided by Government and appropriations used in a year, excluding the amount of non-respendable revenue recorded by the department. It results from timing differences between when a transaction affects appropriations and when it is processed through the CRF.
   5. Revenues
      • Revenues from regulatory fees are recognized in the accounts based on the services provided in the year.
      • Funds received from external parties for specified purposes are recorded upon receipt as deferred revenues. These revenues are recognized in the period in which the related expenses are incurred.
      • Other revenues are accounted for in the period in which the underlying transaction or event occurred that gave rise to the revenues.
      • Revenues that have been received but not yet earned are recorded as deferred revenues.
   6. Expenses

      The following expenses are recorded on the accrual basis:

      • Grants are recognized in the year in which the conditions for payment are met. In the case of grants which do not form part of an existing program, the expense is recognized when the Government announces a decision to make a non–recurring transfer, provided the enabling legislation or authorization for payment receives parliamentary approval prior to the completion of the financial statements.
      • Contributions are recognized in the year in which the recipient has met the eligibility criteria or fulfilled the terms of a contractual transfer agreement.
      • Vacation pay and compensatory leave are expensed as the benefits accrue to employees under their respective terms of employment.
      • Services provided without charge by other government departments for accommodation, the employer's contribution to the health and dental insurance plans and worker’s compensation costs and legal services are recorded as operating expenses at their estimated cost.
   7. Employee future benefits
      1. Pension benefits: Eligible employees participate in the Public Service Pension Plan, a multi-employer plan administered by the Government of Canada. The department's contributions to the Plan are charged to expenses in the year incurred and represent the total departmental obligation to the Plan. Current legislation does not require the department to make contributions for any actuarial deficiencies of the Plan.
      2. Severance benefits: Employees are entitled to severance benefits under labour contracts or conditions of employment. These benefits are accrued as employees render the services necessary to earn them. The obligation relating to the benefits earned by employees is calculated using information derived from the results of the actuarially determined liability for employee severance benefits for the Government as a whole.
   8. Receivables — Receivables are stated as amounts expected to be ultimately realized. A provision is made for receivables where recovery is considered uncertain.
   9. Loans — Loans are stated at the amounts realized. Loans are subject to payment in the event of the default of the debtor. An allowance is used to reduce the carrying value of the loans to amounts that approximate their net realizable value. Interest on loans receivable is applied in accordance with the policy that governs the loan. Interest revenue is recognized at the time it is applied to the account.
   10. Allowances for loan guarantees — An allowance for loan guarantees is recorded for potential losses on loan guarantees when it is likely that a payment will be made in the future to honour a guarantee and when the amount of the loss can be reasonably estimated.

       The allowance for losses on outstanding loan guarantees is based upon forecasting models developed by program areas.

   11. Repayable contributions — Repayable contributions are contributions the recipient is expected to repay. Depending on their nature, they are classified as either unconditionally repayable or conditionally repayable and are accounted for differently.
       1. Unconditionally repayable contributions are contributions that must be repaid without qualification. Normally, these contributions are provided with a low or no interest clause. They are recorded on the Statement of Financial Position as loans at their estimated present value, if they contain significant concessionary terms (defined to be when the grant portion is greater than 25% of the contribution). Otherwise, they are recorded at the face value of the loan. A portion of the unamortized discount is brought into income each year to reflect the change in the present value of the contributions outstanding. Appropriate allowances for uncollectible amounts are also established based on an individual appraisal of accounts.
       2. Conditionally repayable contributions are contributions that, all or a part of become repayable, if conditions specified in the contribution agreement come into effect. Accordingly, they are not recorded on the Statement of Financial Position until such time as the conditions specified in the agreement are satisfied, at which time they are then recorded as a receivable and a corresponding reduction in transfer payment expense.
   12. Prepaid expenses — Includes prepaid expenses, deferred charges, and payments where, pursuant to a contract or contribution agreement, a payment is made before the completion of the work, delivery of the goods or rendering of the service.
   13. Contingent liabilities — Contingent liabilities are potential liabilities, which may become actual liabilities when one or more future events occur or fail to occur. To the extent that the future event is likely to occur or fail to occur, and a reasonable estimate of the loss can be made, an estimated liability is accrued and an expense recorded. If the likelihood is not determinable or an amount cannot be reasonably estimated, the contingency is disclosed in the notes to the financial statements.
   14. Environmental liabilities — Environmental liabilities reflect the estimated costs related to the management and remediation of environmentally contaminated sites. Based upon management's best estimates, a liability is accrued and an expense recorded when the contamination occurs or when the department becomes aware of the contamination and is obligated, or is likely to be obligated to incur such costs. If the likelihood of the department's obligation to incur these costs is not determinable, or if an amount cannot be reasonably estimated, the costs are disclosed as contingent liabilities in the notes to the financial statements.
   15. Foreign currency transactions — Transactions involving foreign currencies are translated into Canadian dollar equivalents using rates of exchange in effect at the time of those transactions. Monetary assets and liabilities denominated in a foreign currency are translated into Canadian dollars using the rate of exchange in effect on March 31, 2008. Gains and losses resulting from foreign currency transactions are included in the “Other Revenue” line on the Statement of Operations.
   16. Tangible capital assets — All tangible capital assets and leasehold improvements having an initial cost of $10,000 or more are recorded at their acquisition cost. The department does not capitalize intangibles, works of art and historical treasures that have cultural, aesthetic or historical value, assets located on Indian Reserves and museum collections.

       Amortization of tangible capital assets is done on a straight-line basis over the estimated useful life of the asset as follows:

       
       

       Asset class	Amortization period
       Buildings	15 to 30 years
       Works and Infrastructure	30 years
       Machinery and equipment	3 to 10 years
       Vehicles	5 to 10 years
       Assets under construction	Once in service, in accordance with asset type
       Leasehold improvements	Lesser of the remaining term of the lease or useful life of the improvement

       
       
   17. Measurement uncertainty — The preparation of these financial statements in accordance with Treasury Board accounting policies, which are consistent with Canadian generally accepted accounting principles for the public sector, requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses reported in the financial statements. At the time of preparation of these statements, management believes the estimates and assumptions to be reasonable. The most significant items where estimates are used are contingent liabilities, environmental liabilities, the liability for employee severance benefits and the useful life of tangible capital assets. Actual results could significantly differ from those estimated. Management's estimates are reviewed periodically and, as adjustments become necessary, they are recorded in the financial statements in the year they become known.

3. Parliamentary appropriations

   Industry Canada receives most of its funding through annual Parliamentary appropriations. Items recognized in the statement of operations and the statement of financial position in one year, may be funded through Parliamentary appropriations in prior, current or future years. Accordingly, the Department has different net results of operations for the year on a government-funding basis than on an accrual accounting basis. The differences are reconciled in the following tables:

   1. Reconciliation of net cost of operations to current year appropriations used:
      

      	2008	2007
      	(in thousands of dollars)
      Net cost of operations	640,243	796,071
      Adjustments for items affecting net cost of operations but not affecting appropriations:
      Add (Less):
      Revenue not available for spending	521,541	502,866
      Repayment of conditionally repayable contributions	180,015	127,356
      Services provided without charge	(84,452)	(84,829)
      Allowance for loan guarantees	108,755	58,709
      Bad debts/write-offs/write-downs	(14,221)	3,261
      Amortization of tangible capital assets	(15,440)	(18,244)
      Employee severance benefits	1,773	(4,216)
      Adjustment of previous years expenditures	7,930	8,455
      Refund of previous years expenditures	3,861	9,343
      Transfer payment adjustments	8,746	3,120
      Justice Canada fees	-	(5,425)
      Allowance for accrued liabilities	(12)	288
      Vacation pay and compensatory leave	903	1,387
      Loss on disposal and write-down of tangible capital    assets	(198)	(154)
      Year-end accrual of transfer payments	(107,757)	(246,000)
      Other	935	(2,559)
      	1,252,622	1,149,429
      Adjustments for items not affecting net cost of operations but affecting appropriations:
      Add (Less):
      Loans, Investments, and Advances	96,662	21,776
      Deferred revenue	(3,889)	(10,964)
      Acquisitions of tangible capital assets	18,089	29,090
      Allowance for Vacation Pay	430	336
      	111,292	40,238
      Current Year Appropriation Used	1,363,914	1,189,667

      
      
   2. Appropriation provided and used
      

      	2008	2007
      	(in thousands of dollars)
      Vote 1 - Operating expenditures	427,254	436,697
      Vote 5 - Capital expenditures	18,232	32,265
      Vote 10 - Grants and contributions	760,840	682,194
      Statutory amounts	417,446	235,115
      	1,623,772	1,386,271
      Less:
      Appropriations available for future years	(138,808)	(117,434)
      Lapsed appropriations: Operating	(121,050)	(79,170)
      Current year appropriations used	1,363,914	1,189,667

      
      
   3. Reconciliation of net cash provided by Government to current year appropriations used
      

      	2008	2007
      	(in thousands of dollars)
      Net cash provided by Government of Canada	678,740	803,584
      Revenue not available for spending	521,541	502,866
      	1,200,281	1,306,450
      Change in net position in the Consolidated Revenue Fund
      Variations in Statement of Financial Position:
      Variation in financial assets	(72,572)	(35,562)
      Variation in liabilities	(47,000)	(43,198)
      Variation in prepaid expenses	63	(12)
      Other:
      Year-end accrual of transfer payments	(107,757)	(246,000)
      Repayment of conditionally repayable       contributions	180,015	127,356
      Allowance for loan guarantees	108,755	58,709
      Loans, Investments, and Advances	96,662	21,776
      Misc	5,467	148
      Total	163,633	(116,783)
      Current year appropriation used	1,363,914	1,189,667

      
      

4. Accounts receivables and advances

   
   

   	2008	2007
   	(in thousands of dollars)
   External
   Accounts receivable – other revenue	44,875	66,788
   Allowance for doubtful accounts	(41,545)	(31,442)
   Accrued receivables	21,699	21,720
   Employee advances	114	115
   Other	2	735
   Total external	25,145	57,916
   Receivables from other Federal Government departments and agencies	182,483	157,311
   Total accounts receivable and advances	207,628	215,227

   
   

5. Loans

   
   

   	2008	2007
   	(in thousands of dollars)
   Atlantic Provinces Power Development Act	1,132	1,783
   Enterprise Development Loans	110,000	110,000
   Unamortized discount loans	(31,124)	(34,583)
   	78,876	75,417
   Unconditionally repayable contributions	281,568	209,568
   Less: Unamortized discount	(1,103)	(6,275)
   Less: Allowance for doubtful loans and advances	-	(190)
   Net unconditionally repayable contributions	280,465	203,103
   Loans and advances on expired loan guarantees	216,354	84,454
   Less: Allowance for doubtful loans	(216,354)	(84,454)
   Net Loans on expired loan guarantees	–	–
   Total loans	360,473	280,303

   
   

   Atlantic Provinces Power Development Act
   Loans have been made to Atlantic Provinces, to assist in the generation of electrical energy by steam driven generators in the provinces, and in the control and transmission of electric energy. The loans bear interest at rates from 4.5% to 8.5% per annum, and are repayable in annual instalments over the next 6 years, with final instalments due March 31, 2014.

   Enterprise development loans
   These loans are made to industries engaged in manufacturing, processing or service industries in Canada in order to promote the establishment, improvement, growth, efficiency or international competitiveness of such industries, or to assist them in their financial restructuring. There is one interest-free loan outstanding which is repayable at maturity on April 1, 2017.

   Unconditionally repayable contributions
   The unamortized discount on unconditionally repayable contributions is calculated by applying the 25% rule on an individual loan basis.

   Loans and advances on expired loan guarantees
   The Department guarantees loans to small business enterprises under the Small Business Loans Act, the Canada Small Business Financing Act, the Capital Leasing Pilot Project and other loan guarantee payments net of recoveries.

6. Investments

   
   

   	2008	2007
   	(in thousands of dollars)
   Business Development Bank of Canada	1,066,400	1,066,400
   Total investments	1,066,400	1,066,400

   
   

   Business Development Bank of Canada
   The Corporation is an agent of Her Majesty, reports through the Minister of Industry, and is listed in Part I of Schedule III of the Financial Administration Act. Included in the account are:

   • Common Shares — The Government’s investment in the common shares of the Corporation represents a book value of $808.4 million.
   • Preferred Shares — The outstanding book value of preferred shares purchased pursuant to Section 23 of the Business Development Bank of Canada Act as at March 31, 2004 is $230 million.
   • Contributed Capital — Contributed capital in the amount of $28 million was issued in 1999–2000 in counterpart of the transfer of the Cultural Industries Development Fund to the Corporation.

   For the period ending March 31, 2008, the department received $21,482,202 in dividend revenue from the BDBC ($20,847,118 in 2006–2007).

7. Tangible capital assets

   
   

   (in thousands of dollars)	Cost				Accumulated amortization
   Tangible capital asset class	Opening balance	Acquisitions	Disposals/ write-offs/ adjustments*	Closing balance	Opening balance	Amortization	Disposals/ write-offs/ adjustments*	Closing balance	Current year net book value	Previous year net book value
   Land	1,450	–	–	1,450	–	–	–	–	1,450	1,450
   Buildings	35,552	84	–	35,636	18,768	1,276	–	20,044	15,592	16,784
   Works and infrastructure	6,178	–	–	6,178	3,856	209	–	4,065	2,113	2,322
   Machinery and equipment	140,688	3,817	5,678	138,827	100,150	10,254	6,789	103,615	35,212	40,538
   Vehicles	12,367	1,254	1,261	12,360	8,645	1,104	1,249	8,500	3,860	3,722
   Assets under construction	30,475	11,469	307	41,637	–	–	–	–	41,637	30,475
   Leasehold improvements	20,610	1,465	–	22,075	8,227	2,597	–	10,824	11,251	12,383
   Total	247,320	18,089	7,246	258,163	139,646	15,440	8,038	147,048	111,115	107,674

   
   

   Amortization expense for the year ended March 31, 2008 is $15,440,097 (2006–2007 — $18,244,139).

   * Includes primarily disposals, write-offs, but also includes minor adjustments for transfers of capital assets between Industry Canada and other departments.

8. Accounts payable and accrued liabilities

   
   

   	2008	2007
   	(in thousands of dollars)
   External
   Accounts payable	476,384	362,025
   Accrued salaries & wages	12,771	10,158
   Accrued liabilities	345	332
   Transfer payments	353,757	246,000
   Other external payables	87	91
   Total external	843,344	618,606
   Other government departments	12,410	8,467
   Total accounts payable and accrued liabilities	855,754	627,073

   
   

9. Deferred revenue

   The majority of the department's deferred revenues result from the auction of radio license frequencies. These revenues are recognized over a ten-year period. Another main source of deferred revenues comes from examination requests of intellectual property. These fees are charged in advance and recognized as revenue once the exam is completed.

   Prime Minister’s Awards were established to record amounts deposited by external parties to be used in support of the Prime Minister’s Awards for Teaching Excellence.

   
   

   	2008	2007
   	(in thousands of dollars)
   Opening balance	1,125,237	1,285,782
   Licence fees received	203,967	203,159
   Licence fees earned	(375,409)	(373,750)
   	(171,442)	(170,591)
   Fees for trademarks, patents and copyrights received	32,999	31,722
   Fees for trademarks, patents and copyrights earned	(29,110)	(21,540)
   	3,889	10,182
   Other services of regulatory nature received	657	763
   Other services of regulatory nature earned	(763)	(767)
   	(106)	(4)
   Prime Minister awards received	150	–
   Prime Minister awards disbursed	–	(125)
   	150	(125)
   Customer deposits received	56,629	55,593
   Customer deposits disbursed	(56,198)	(55,600)
   	431	(7)
   Deferred revenue, closing balance	958,159	1,125,237

   
   

10. Other Liabilities

    Other liabilities represent funds received from third parties to be disbursed for a specified purpose. Activity during the year in these accounts is as follows:

    
    

    	Opening balance	Receipts	Payments	Closing balance
    	(in thousards of dollars)
    Cost sharing projects	910	1,344	950	1,304
    Securities in Trust, Bankruptcy and Insolvency Act	83	–	–	83
    Contra — Securities in Trust, Bankruptcy and Insolvency Act	(31)	–	–	(31)
    Unclaimed Dividends and Undistributed Assets	15,109	3,440	1,222	17,327
    Petro Canada Enterprises unclaimed shares	961	–	271	690
    Canada Business Corporations Act (CBCA)	7,306	575	336	7,545
    Winding-up and Restructuring Act	727	–	–	727
    Canada/Provinces Business Service Centre	98	400	400	98
    Total other liabilities	25,163	5,759	3,179	27,743

    
    

    Cost sharing projects — Industry Canada partners with other governments and external organizations to deliver programs and services that contribute to an innovative economy. The account was established to record amounts deposited by these partners.

    Securities in trust and income from Securities in Trust, Bankruptcy and Insolvency Act — was established to record dividends paid on shares held by a bankrupt stockbroker on behalf of clients. As the shares were not registered in clients’ names, dividends are paid to the last registered owner, in this case, the stockbroker. These dividends are forwarded to the Superintendent of Bankruptcy until such time as rightful owners are identified.

    Unclaimed Dividends and Undistributed assets, Bankruptcy and Insolvency Act — This account represents amounts credited to the Receiver General in accordance with the provisions of the Act, pending distribution to creditors.

    Petro-Canada Enterprises Inc. — unclaimed shares — was established to record the liability to shareholders who have not presented their shares for payment in accordance with Section 227 of the Canada Business Corporations Act.

    Unclaimed Dividends and Undistributed Assets, Canada Business Corporations Act — was established for the purpose of recording liabilities to creditors and shareholders who have not been located. The account is charged when funds are paid to them.

    Winding-up and Restructuring Act — records deposits credited to the Receiver General as a result of the final winding-up of the operations of a company, in accordance with sections 138 and 139 of the Winding-up and Restructuring Act, pending distribution to the persons entitled thereto.

    Canada/Provinces Business Service Centre — was established to record monies received from provinces under cost-sharing agreements for the Canada-Ontario Business Service Centre.

11. Employee benefits

    1. Pension benefits
       
       Industry Canada’s employees participate in the Public Service Pension Plan, which is sponsored and administered by the Government of Canada. Pension benefits accrue up to a maximum period of 35 years at a rate of 2 percent per year of pensionable service, times the average of the best five consecutive years of earnings. The benefits are integrated with Canada/Québec Pension Plans benefits and they are indexed to inflation.

       Both the employees and the department contribute to the cost of the Plan. The 2007–2008 expense amounts to $51,604,353 ($51,811,249 in 2006–2007), which represents approximately 2.1 times (2.2 in 2006–2007) the contributions by employees.

       The department's responsibility with regard to the Plan is limited to its contributions. Actuarial surpluses or deficiencies are recognized in the financial statements of the Government of Canada, as the Plan's sponsor.

    2. Severance benefits

       The department provides severance benefits to its employees based on eligibility, years of service and finally salary. These severance benefits are not pre-funded. Benefits will be paid from future appropriations. Information about the severance benefits, measured as at March 31, is as follows:

       
       

       	2008	2007
       	(in thousands of dollars)
       Accrued benefit obligation beginning of year	83,557	79,341
       Expense for the year	7,859	13,297
       Benefits paid during the year	(9,632)	(9,081)
       Accrued benefit obligation end of year	81,784	83,557

       
       

12. Contingent liabilities

    1. Contaminated sites

       Liabilities are accrued to record the estimated costs related to the management and remediation of contaminated sites where the department is obligated or likely to be obligated to incur such costs. The department has identified 2 sites where such action is possible and for which a liability of $99,657 ($132,281 in 2006–2007) has been recorded. The department’s ongoing efforts to assess contaminated sites may result in additional environmental liabilities related to newly identified sites, or changes in the assessments or intended use of existing sites. These liabilities will be accrued by the department in the year in which they become known.

    2. Claims and litigation

       Claims have been made against the department in the normal course of operations. Legal proceedings for claims totalling approximately $245,207 ($200,000 in 2006–2007) were still pending at March 31, 2008. Some of these potential liabilities may become actual liabilities when one or more future events occur or fail to occur. To the extent that the future event is likely to occur or fail to occur, and a reasonable estimate of the loss can be made, an estimated liability is accrued and an expense recorded in the financial statements.

    3. Loan guarantees

       The department has guaranteed the following debts:

       
       

       (in thousands of dollars)	Authorized Limit	Loan Guarantee Outstanding Balance
       Enterprise Development Program	1,200,000	212
       Small Business Loan Act Loan Guarantee Program (SBLA)	1,838,292	34,725
       Canadian Small Business Financing Act Loan Guarantee Program (SBFA)	1,290,263	741,037
       Capital Leasing Pilot Project	15,652	14,037
       Regional Aircraft Credit Facility	1,500,000	178,074

       
       

       An allowance of $301,751,409 has been recorded for estimated losses on outstanding loan guarantees ($409,828,101 in 2006–2007). The expenses related to loan guarantees are reported under other transfer payments in the Statement of Operations.

       Enterprise Development Program — Loans are made to Canadian manufacturers and members of the service industry for the purpose of promoting the establishment, growth, efficiency and international competitiveness of Canadian industry. These loans also foster the expansion of Canadian industry and of Canadian trade to a person engaged or about to engage in manufacturing, processing or other commercial activity.

       Small Business Loan Act (SBLA) Loan Guarantee Program and Canadian Small Business Financing Act (CSBFA) Loan Guarantee Program — Loans are made directly by approved lenders to small business enterprises, providing for sharing of each individual loan loss, if any, on the basis of 85% government, 15% lender, to an aggregate, per lending institution not exceeding the Minister’s contingent liability, as stated in Section 5 of the SBLA and Section 6(2) of the CSBFA.

       The authorized limit represents the Crown’s maximum liability incurred on the aggregate amount of loans made by the lender starting in April 1985 (SBLA) and April 1999 (CSBFA).

       The outstanding guarantee for loans made starting in April 1985 (SBLA) and April 1999 (CSBFA) is the lesser of the Crown’s net liability (authorized limit less claims paid by the Crown) or the outstanding loan amounts of the lenders.

       Capital Leasing Pilot Project (CLPP) — Capital leases are entered directly by approved lenders to small business enterprises, providing for sharing of each individual lease loss, if any, on the basis of 85% government, 15% lessor to an aggregate, per leasing institution, not exceeding the Minister’s contingent liability based upon the aggregate amount of leases registered per leasing institution, as stated in section 7 of the CLPP.

       The authorized limit represents the Crown’s maximum liability incurred on the aggregate amount of the capital leases having been entered or transferred since the period starting in April 2002.

       The outstanding guarantee for capital leases entered into in April 2002, is the lesser of the Crown’s net liability or the outstanding capital lease amount of the lessors.

       Regional Aircraft Credit Facility — The department has extended loan guarantees on several Air Canada regional jets. Provisioning from the Canada Account Loss Provisioning Pool has been set aside by Finance Canada, manager of the funds. The loan guarantees began in the summer of 2005 and have a life of 15 years.

13. Equity Adjustment

    
    

    	2008	2007
    	(in thousands of dollars)
    Aboriginal Business Canada / First Nations SchoolNet	–	3,346
    Office of the Registrar of Lobbyists	–	14
    	–	3,360

    
    

    Aboriginal Business Canada / First Nations SchoolNet — Pursuant to the Order in Council P.C. 2006-1351, an equity adjustment in the amount of $3,345,741 was processed to transfer out Aboriginal Business Canada and First Nations SchoolNet. The Order in Council transferred the control and supervision of Aboriginal Business Canada and First Nations SchoolNet from the Department of Industry to the Department of Indian Affairs and Northern Development (DIAND) effective December 1, 2006. The result was a mid-year transfer occurring the same date as the Order in Council, which included accounts receivable, capital assets and loan balances.

    Office of the Registrar of Lobbyists — An equity adjustment for $14,335 related to Order in Council P.C. 2006-49, which transferred the control and supervision of the Office of the Registrar of Lobbyists from the Minister of Industry to the President of the Treasury Board effective February 6, 2006. As of April 1, 2006, Office of the Registrar of Lobbyists was reported separately. The adjustment pertained to the transfer of a capital asset that is reported on the Office of the Registrar of Lobbyists’s financial statements.

14. Contractual obligations

    The nature of the department’s activity results in some large multi-year contracts and obligations whereby the department will be committed to make future payments when the services/goods are rendered. Major commitments that can be reasonably estimated are as follows:

    
    

    	2009	2010	2011	2012	Thereafter	Total
    	(in thousands of dollars)
    Transfer payments	598,085	426,470	300,659	210,629	177,673	1,713,516
    Other good and services	71,102	4,378	1,156	856	2,820	80,312
    Other	10,925	–	–	–	–	10,925
    Total	680,112	430,848	301,815	211,485	180,493	1,804,753

    
    

15. Related party transactions

    Industry Canada is related as a result of common ownership to all Government of Canada departments, agencies, and Crown corporations. Industry Canada enters into transactions with these entities in the normal course of business and on normal trade terms. Also, during the year, the department received services, which were obtained without charge from other Government departments.

    Services provided without charge:

    During the year the department received without charge from other departments, accommodation, legal fees and the employer's contribution to the health and dental insurance plans. These services without charge have been recognized in the department's Statement of Operations as follows:

    
    

    	2008	2007
    	(in thousands of dollars)
    Accomodation provided by Public Works and Government Services Canada (PWGSC)	55,454	53,312
    Contributions covering employees' share of insurance premiums and expenditures paid by Treasury Board Secretariat	21,726	25,594
    Workman's compensation coverage provided by Human Resources Social Development Canada	454	627
    Salary and associated expenditures of legal services provided by Justice Canada	6,818	5,296
    Total services provided without charge	84,452	84,829

    
    

    The Government has structured some of its administrative activities for efficiency and cost-effectiveness purposes so that one department performs these on behalf of all without charge. The costs of these services, which include payroll and cheque issuance services provided by Public Works and Government Services Canada and audit services provided by the Office of the Auditor General, are not included as an expense in the department's Statement of Operations.

16. Comparative information

    Comparative figures have been reclassified to conform to the current year's presentation.