ARCHIVED - Atlantic Canada Opportunities Agency

Transfer Payment Program:

Atlantic Innovation Fund (AIF) - Voted

Start date:

May 10, 2001

End date:

March 31, 2011

Description of Transfer Payment Program:

The AIF focuses on increasing research and development linked to economic development and commercialization objectives in areas that are of strategic importance to the region, in particular, the growth of strategic sectors/clusters. The AIF emphasizes building Atlantic Canada's system of innovation, including components that bridge the gap between research institutions and the marketplace. It encourages synergies among the various components of this system through partnerships, alliances and networks. Furthermore, the AIF supports research and development projects that focus on the areas of natural sciences, applied sciences, and social sciences and humanities, where these are linked explicitly to the development of technology-based products, processes or services, or their commercialization, thereby strengthening the region's system of innovation.

More information on the AIF can be found at http://www.acoa-apeca.gc.ca/English/ImLookingFor/ProgramInformation/AtlanticInnovationFund/Pages/
AtlanticInnovationFund.aspx.

Strategic Outcome:

The AIF is linked to the strategic outcome "A competitive Atlantic Canadian economy."

Results Achieved:

ACOA's flagship innovation program, the Atlantic Innovation Fund, focuses on accelerating the development of the knowledge-based industry, and facilitating transition within traditional industries by increasing the region's capacity to carry out leading-edge research and development, contributing to the development of new technology-based economic activity in Atlantic Canada. Clients of the AIF include businesses and institutions such as universities and research institutes. One of the key accomplishments for 2008-2009 was the successful approval of 25 projects, accounting for over $53 million in ACOA assistance. ACOA's assistance of these projects leveraged an additional $52 million from other sources, such as universities and other research institutions, provincial governments, the private sector and national R&D programs.

The AIF facilitates the development of strategic sectors characterized by regional clusters of firms. Sixteen of the 25 approved projects in 2008-2009, accounting for more than $36 million in AIF funding, augment development of IT, life sciences/biotech, and oil and gas/oceans technology clusters and complement the National Research Council's Atlantic Cluster initiative.

ACOA encourages AIF project proponents to seek opportunities for collaboration in such areas as research and development, project management, marketing or commercialization, in order to help maximize the economic benefits and enhance the likelihood of commercialization success. In 2008-2009, there were 61 meaningful partnerships stemming from AIF - funded projects.

Given that the level of privately funded R&D in Atlantic Canada is well below the national average, the AIF has focused on increasing the level of participation by commercial entities in innovation activity. For example, over half (56%) of approved projects in 2008-2009 were from commercial proponents. In addition, 100% of institutional projects approved in 2008-2009 under Round VI had private sector partners (up from 92% in 2007-2008).

($ millions)

Program Activity	Actual Spending 2006-07	Actual Spending 2007-08	Planned Spending 2008-09	Total Authorities 2008-09	Actual Spending 2008-09	Variance
Enterprise Development
Total Contributions	59.3	57.0	68.0	58.1	58.1	9.9
Total Program Activity	59.3	57.0	68.0	58.1	58.1	9.9

Comment on Variance:

Actual spending under the AIF was less than planned due to complex contribution agreements being negotiated and signed later than planned, following the approval of projects.

Audit completed or planned:

Audit of the G&C payment system is ongoing, with an expected completion date of December 2009.

Transfer Payment Program:

Business Development Program (BDP) - Voted

Start date:

June 25, 1995

End date:

March 31, 2010

Description of Transfer Payment Program:

The BDP helps to set up, expand or modernize businesses, and focuses on small and medium-sized enterprises (SMEs).

Strategic Outcome:

The BDP is linked to the strategic outcome "A competitive Atlantic Canadian economy."

Results Achieved:

During 2008-2009, to improve productivity and preserve long-term prospect of employment, the BDP invested in 31 projects to establish new businesses and in 125 projects to help companies to expand and/or modernize their facilities. This program continues to focus on innovation, skills development and trade activities to enhance the business environment in Atlantic Canada. The program serves to fill gaps in the financing continuum for SMEs and entrepreneurs in Atlantic Canada.

 ($ millions)

Program Activity	Actual Spending 2006-07	Actual Spending 2007-08	Planned Spending 2008-09	Total Authorities 2008-09	Actual Spending 2008-09	Variance
Enterprise Development
Total Grants	0.2	0.2	1.0	0.2	0.2	0.8
Total Contributions	112	97.3	86.7	99.9	99.9	(13.2)
Total for Program Activity	112.2	97.5	87.7	100.1	100.1	(12.4)
Community Development
Total Grants	0.6	0.3	1.0	0.5	0.5	0.5
Total Contributions	25.3	21.4	10.5	23.3	23.3	(12.8)
Total for Program Activity	25.9	21.7	11.5	23.8	23.8	(12.3)
Policy, Advocacy and Coordination
Total Grants	0	0	0	0	0	0
Total Contributions	0.6	0.5	0.5	0.6	0.6	(0.1)
Total for Program Activity	0.6	0.5	0.5	0.6	0.6	(0.1)
Total for Transfer Payment Program	138.7	119.7	99.7	124.5	124.5	(24.8)

Comments on Variances:

An additional $24.8 million was made available for the BDP during the year, mostly as a result of re-profiling of the collection of repayable contributions in prior years, as well as reduced requirements under the Atlantic Innovation Fund and Innovative Communities Fund. The additional financial resources for the BDP were used to accelerate payments for SME projects, easing cash flow challenges during the current economic downturn, and to fund increased demands on Community Development.

Audit completed or planned:

During the year, audits were completed on four components of the BDP: trade, investment, tourism and venture capital. The audits found that, in general, the Agency exercised due diligence in the delivery of these projects; however, all four audits recommended improvements to enhance delivery of the four components.

Audit of the G&C payment system is ongoing, with an expected completion date of December 2009.

Transfer Payment Program:

Community Futures (CF) Program - Voted

Start date:

May 18, 1995

End date:

October 2, 2010

Description of Transfer Payment Program:

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

Strategic Outcome:

The CF Program is linked to the strategic outcome "A competitive Atlantic Canadian economy".

Results Achieved:

In 2008-2009, the 41 Community Business Development Corporations (CBDCs) approved 1,077 loans, which represent an investment of $48.5 million and 892 new jobs in rural communities. The CBDCs also provided 7,578 counselling sessions to clients throughout the Atlantic Canada.

A summative evaluation of the Community Futures Program concluded the following: that there is a continuing need for the CF Program, that Atlantic CBDC activities and objectives closely align with the national CF Program, and that the CF Program aligns well with ACOA’s priorities.

($ millions)

Program Activity	Actual Spending 2006-07	Actual Spending 2007-08	Planned Spending 2008-09	Total Authorities 2008-09	Actual Spending 2008-09	Variance
Community Development
Total Contributions	14.2	13.7	12.7	12.4	12.4	0.3
Total Program Activity	14.2	13.7	12.7	12.4	12.4	0.3

Comment on Variance:

The difference between planned spending and actual spending can be explained by normal program administration, having some project costs incurred later than expected.

Audit completed or planned:

Audit of the G&C payment system is ongoing, with an expected completion date of December 2009. Audit of Community Futures Program has an expected completion date of September 2009.

Name of Transfer Payment Program:

Innovative Communities Fund (ICF) - Voted

Start date:

April 1, 2005

End date:

March 31, 2010

Description of Transfer Payment Program:

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

The ICF has two distinct components. The first component, strategic community capacity, is designed to support non-commercial/non-profit strategic initiatives that target the economic development needs of rural communities. The second, proactive investments, is intended to stimulate transformative change. This component will support proactive identification and implementation of strategic opportunities with local partners. The program is designed to respond to the unique and varying needs of communities. The flexible approach will encourage clear links to sustainable economic development outcomes. A focus on outcomes will ensure that the program has the desired impact on Atlantic Canada’s economy.

Strategic Outcome:

The ICF is linked to the strategic outcome "A competitive Atlantic Canadian economy."

Results Achieved:

During fiscal year 2008-2009, 94 projects were approved under the ICF, of which 80 were funded under the strategic community capacity component and 14 under the proactive investment component. These 94 projects had total project costs of $119.4 million. With an ACOA contribution of $32.2 million, dollars leveraged amounted to $87.2 million.

($ millions)

Program Activity	Actual Spending 2006-07	Actual Spending 2007-08	Planned Spending 2008-09	Total Authorities 2008-09	Actual Spending 2008-09	Variance
Community Development
Total Contributions	38.8	46.9	55.5	48.9	48.9	6.6
Total Program Activity	38.8	46.9	55.5	48.9	48.9	6.6

Comment on Variance:

The difference between planned spending and actual spending can be explained by normal program administration, wherein some project costs were incurred later than expected because of unforeseen circumstances in the project.

Audit completed or planned:

Audit of the G&C payment system is ongoing, with an expected completion date of December 2009.