ARCHIVED - 2010-2011 DPRs - Details on Transfer Payment Programs

Name of Transfer Payment Program: Agri-Opportunities Program (New Opportunities for Agriculture Initiatives) (Voted)

Start Date: December 14, 2006

End Date: March 31, 2011

Description:
The Agri-Opportunities program was a five-year program, ending March 2011, that focused on new innovative value-added agricultural, agri-food and agri-based products, services or processes that were not commercially produced or available in Canada and that were ready to be introduced into the marketplace. The program provided repayable contributions for commercialization projects that were expected to increase market opportunities for the Canadian agricultural industry across the value chain and to increase demand for primary agricultural products.

Strategic Outcome: An innovative agriculture, agri-food and agri-based products sector

Results Achieved:
The Agri-Opportunities program has signed agreements to fund 27 innovative commercialization projects for a total of $50.3 million helping to accelerate the pace of innovation in Canada. AAFC funded the establishment, modernisation or expansion of 14 facilities which collectively brought 30 products to market. 124 employees increased their skill levels and 15 organisations have increased their knowledge and expanded their capacity while creating 94 full time and 134 temporary jobs. In total, the demand for primary agricultural products was increased by $22 million, adding income to agricultural producers, while providing new revenue streams to 9 organisations each of which is now participating in a value added industry.

Comment(s) on Variance(s): Despite the beginning of economic recovery, actual spending was less than planned spending because access to debt and equity financing did not reach expected levels, thereby hampering program uptake and the progress of projects.

Audit Completed or Planned: An internal audit is currently underway and will be completed in 2011-12.

Evaluation Completed or Planned: An evaluation of this program was completed during 2010-11.

Note:
Due to rounding, figures may not add to the totals shown.

Name of Transfer Payment Program: Agricultural Bioproducts Innovation Program (Voted)

Start Date: December 14, 2006

End Date: March 31, 2011

Description:
The Agricultural Bioproducts Innovation Program (ABIP) is an initiative designed to strengthen the capacity of Canadian science providers and industry through the creation of networks for research, technology development, and commercialization of agricultural bioproducts and bioprocesses.

Strategic Outcome: An innovative agriculture, agri-food and agri-based products sector 

Results Achieved:
The ABIP supported nine R&D networks with activities focused on three overarching themes. These themes and examples of the results related to each are as follows:

1. Crop platforms and cropping systems that would enhance the conversion of feedstocks to agricultural bioproducts (better feedstocks).
   • As oil seed crop capacity rapidly expands to meet domestic demands for 2% renewable fuel content in diesel and heating oil, the Sustainable Cropping System Platforms for Biodiesel Feedstock Quantity and Quality (SBQQ) network has extensively tested a wide range of oil seed species and cropping systems across Canada and established those with the greatest potential for oil seed production. They have then conveyed this information to Canadian oil seed growers.
   • The BioPotato Network: a Canadian network for potato-based bioproducts (BioPotato) has developed four new varieties of pigmented potatoes with health promoting phytochemicals, as well as another potato variety with low glycemic index.
   • The Development of Commercial Feed Products from the Wheat Ethanol Process (FOBI) network is developing wheat varieties with higher yield and better disease resistance than AC Andrew, the preferred variety used in ethanol production. As compared to AC Andrew, the newly developed varieties combine high yield, higher starch content, and a better disease resistance, thus making it ideal for ethanol feedstock.
     
     
2. More effective and efficient technologies for agricultural biomass conversion (better processing).
   • The Cellulosic Biofuel Network (CBioN) has discovered three fungal endoglucanases that demonstrate strong synergism with the major Trichoderma reesei cellobiohydrolase. This innovation has generated discussion with multinational companies and will lead to enzymatic cocktails that more effectively convert lignocellulosic feedstock to bioethanol.
   • The Canadian Triticale Biorefinery Initiative (CTBI) has improved the fermentation processes for triticale grain, which has prompted Poundmaker to plan for the inclusion of triticale in future ethanol production runs.
   • Agricultural Biorefinery Innovation Network for Green Energy, Fuels & Chemicals (ABIN) has established that red mud, a toxic by-product of aluminum mining, is a suitable catalyst for upgrading the bio-oil produced by their mobile pyrolosis unit (another novel technology developed by ABIN). This process lowers the acidity of the bio-oil, rendering it less corrosive, and reduces the toxicity of the red mud. This project has had huge media exposure and attracted the interest of industry giants such as Shell.
     
     
3. Product diversification through technologies relevant to production of bioenergy, agricultural and industrial chemicals, biomaterials, and health products (more products).
   • The Natural Fibres for the Green Economy Network (NAFGEN) has developed novel cost-competitive and green technologies for the extraction of high-value lignin, hemicellulose, and waxes from flax and hemp shive/straw that can be further converted to bioproducts and biochemicals. Examples of final products include phenol-formaldehyde resins (circuit boards), cationic polymers (waste water treatment), hydrogels (wound care), and cosmetics. Further work is also being done with micro and nano fibre/cellulose to produce biocomposites (e.g., bus parts, sporting goods, casing for cell phones and marine applications) and green building materials (e.g., fibre reinforced composite blocks, building columns, walls and insulation).
   • The Pulse Research Network (PURENet) has incorporated healthy pulses into processed foods and developed several prototypes: pourable salad dressings, gluten-free cookies, gluten-free processed meats, and probiotic and yogurt beverages. They are now working with potential commercialization agents, and if certain prototypes are successfully implemented, pulse consumption in Canada could potentially double.
   • The Industrial Oil Seed Network (IOSN) has used Canola oil to develop a non-toxic, multi-purpose bio-based home lubricant that is now available on the retail market. This product will eliminate the potential for soil and water contamination from petroleum-based oil leaks. In addition, IOSN has developed bio-based hydraulic fluids that are being field tested in trash compactors by Toronto Community Housing and in the buses of Saskatoon Transit.

All the Final Reports, and the Performance Management Reports have been received from all the networks, and are currently being reviewed for approval.

The productivity output for all nine networks is as follows:

• Number of peer-reviewed publications documenting leading-edge research and development findings generated - current actual: 265;
• Number of students and professionals trained through multidisciplinary research - current actual: 900;
• Number of commercialization plans developed and implemented to bring new or improved products, processes, or services to near market - current actual: 17.

Note: The targets and current actual results noted above are for the overall output of the ABIP Networks, which includes operating and capital spending, in addition to contribution spending. 

Comment(s) on Variance(s): Expended as planned.

Audit Completed or Planned: The following audits were conducted in 2010-11:

• PURENet - Final report received in March 2011, and no major issues identified.
• CTBI - Final report received in March 2011, and no major issues identified.

Evaluation Completed or Planned: The ABIP evaluation report was officially approved by the Deputy Minister on March 25, 2011, and the report will be posted on AAFC's external website in August 2011.

Note:
Due to rounding, figures may not add to the totals shown.

Name of Transfer Payment Program: Agricultural Disaster Relief Program (ADRP) / AgriRecovery (Statutory)

Start Date: December 6, 2007

End Date: March 31, 2012
During the 2010–11 fiscal year, the program authorities were extended until March 31, 2012.

Description:
The AgriRecovery framework is one of the core pillars of the business risk management suite available to producers under Growing Forward.

AgriRecovery enables federal, provincial and territorial (FPT) governments to provide timely assistance to help producers quickly re-establish their income stream and contain the long-term impacts after small- to mid-size disasters (e.g. disease, pest and weather). Programs under AgriRecovery are developed on a case-by-case basis after an assessment is completed and it is determined that there is need for assistance beyond existing programs, such as AgriInvest, AgriStability and AgriInsurance.

Under AgriRecovery, the ADRP helps focus the coordination effort, providing a process to fast-track authorities for programs to quickly fund initiatives.

Participating provinces and territories cost-share initiatives on a 60:40 FPT basis. For AgriRecovery programming outside the ADRP, funding options are negotiated with the provinces and territories on a case-by-case basis. Authorities for the program include sub-section 12(5) of the Farm Income Protection Act, as well as various agreements for individual programming developed under AgriRecovery.

Federal AgriRecovery Website

Strategic Outcome: A competitive agriculture, agri-food and agri-based products sector that proactively manages risk

Results Achieved:
12 initiatives were put in placed in 2010-11 under the ADRP to help producers deal with disaster events. The results of the initiatives put in place will be available in the 2011-12 program year. In the most recent surveys, provinces reported that almost all of the producers who received AgriRecovery assistance indicated it has helped in the recovery of their operations, surpassing the target of 75%. In the majority of cases, the producers were still in faming business one year after the disaster payments.

Comment(s) on Variance(s): The increase in spending in 2010-11 is as a result of four initiatives that were implemented to respond to wide spread excessive moisture and flooding in the western provinces.

Audit Completed or Planned: There was no audit undertaken for this program in 2010-11. An internal audit is planned for 2013-14.

Evaluation Completed or Planned: A program evaluation is currently underway and is scheduled to be completed in October 2011.

Note:
Due to rounding, figures may not add to the totals shown.

Name of Transfer Payment Program: AgriInsurance Program (Statutory)

Start Date: April 1, 2008

End Date: AgriInsurance contributions are statutory and ongoing.

Description:
The AgriInsurance program is one of the core pillars of the business risk management suite available to producers under Growing Forward.

AgriInsurance (formerly the Production Insurance program), aims to reduce the financial impact on producers of production losses caused by uncontrollable natural perils.

Authorities for the program include Section 4 of the Farm Income Protection Act (FIPA), as well as Growing Forward: A Federal-Provincial-Territorial Framework Agreement on Agriculture, Agri-Food and Agri-Based Products Policy and Federal Provincial AgriInsurance Agreement.

Federal AgriInsurance website
British Columbia
Alberta
Saskatchewan
Manitoba
Ontario
Quebec
New Brunswick
Nova Scotia
Prince Edward Island
Newfoundland

Strategic Outcome: A competitive agriculture, agri-food and agri-based products sector that proactively manages risk

Results Achieved:
The financial impacts of production losses are mitigated by providing effective insurance protection. Production losses were mitigated with indemnity payments of $1.116 billion (including $257.3 million for unseeded benefits) as 65.6 million of acres were covered for a value of $12.3 billion.

1. Value of insured production compared to the total value of all agricultural products eligible for insurance reported as follows: Percentage of Crops - The ratio of insured to eligible for insurance exceeds the target of 60% with 62.68%. This ratio shows a slight decrease from last year's ratio of 63.02%.
2. Value of agricultural products eligible for insurance compared to the value of all agricultural products reported as follows: Percentage of Crops – The value of agricultural products eligible for insurance compared to total value of all agricultural products exceeds the target of 85% at 86.95%. This ratio has remained fairly consistent over the last 2 years.

Comment(s) on Variance(s): Actual spending in 2010-11 was higher than planned spending due to a substantial increase in premiums caused by higher grain prices which are reflected in the insurable values.

Audit Completed or Planned: There was no audit undertaken for this program in 2010-11. An audit is planned for the 2012-13 fiscal year.

Evaluation Completed or Planned: There was no evaluation undertaken for this program in 2010-11. An internal evaluation is scheduled to be completed by June of 2012.

Note:
Due to rounding, figures may not add to the totals shown.

Name of Transfer Payment Program: AgriInvest Program (Statutory)

Start Date: December 19, 2007
Agreements were signed with the provinces to implement the program starting in the 2007 program year.

End Date: AgriInvest grants and contributions are statutory and ongoing.

Description:
The AgriInvest program is one of the core pillars of the business risk management suite available to producers under Growing Forward.

AgriInvest allows producers to self-manage, through producer-government funded savings accounts, the first 15% of their margin losses for a production year and/or make investments to reduce on-farm risks or increase farm revenues. Under the program, annual producer deposits of up to 1.5% of their allowable net sales are matched by government deposits. Government deposits are cost-shared 60:40 by federal and provincial/territorial governments. In combination with the AgriStability program, AgriInvest is the successor to the Canadian Agricultural Income Stabilization (CAIS) program. AgriInvest provides coverage for smaller income declines, while AgriStability assists producers in managing larger losses.

AgriInvest provides producers with a secure, accessible, predictable and bankable source of income assistance to address small drops in farm income and manage on-farm risks.

Federal AgriInvest Website
AgriInvest in Quebec (La Financière agricole du Québec)

Strategic Outcome: A competitive agriculture, agri-food and agri-based products sector that proactively manages risk

Results Achieved:
About 60% of participants who suffered an income decline and triggered an AgriStability payment for the 2008 program year also made a withdrawal from their AgriInvest account. The 2010 Business Risk Management (BRM) performance indicator survey indicated that 90% of those who withdrew AgriInvest funds used them to address income declines.

Comment(s) on Variance(s): AgriInvest is demand-driven, rather than being funded from a set allocation for each fiscal year. Although the administrative costs of the program remain relatively constant, the variance of the year to year grant and contribution payments is directly related to both participation and commodity prices, as producer deposits and government contributions are based on a percentage of their income generated from the sale of commodities for a production year. Commodity prices were stronger in fiscal 2010-11 contributing to increased payments under the program.

Audit Completed or Planned: A performance audit initiated in fiscal 2010-11 by the Office of the Auditor General is currently underway and expected to be completed in the fall of 2011.

Evaluation Completed or Planned: A program evaluation is in progress and is scheduled to be completed in March 2012.

Note:
The Canadian Agricultural Income Stabilization (CAIS) program was replaced by the AgriStability and AgriInvest programs as of April 1, 2008.
Due to rounding, figures may not add to the totals shown.

Name of Transfer Payment Program: AgriStability Program (Statutory)

Start Date: December 19, 2007
Agreements were signed with the provinces to implement the program starting in the 2007 program year.

End Date: AgriStability grants and contributions are statutory and ongoing.

Description:
The AgriStability program is one of the core pillars of the business risk management suite available to producers under Growing Forward.

AgriStability is a margin-based program that provides support when a producer experiences larger farm income losses, which are drops in their margin (eligible farm income, less eligible farm expenses) for the program year of more than 15% of the producer's average margin from previous years (i.e., their reference margin). Thus, a payment is triggered under the program when a producer's program year margin drops below 85% of their reference margin. AgriStability also includes coverage for negative margins, as well as mechanisms to advance a participant a portion of their expected payment during the year when a significant decline in income is expected (interim payments and Targeted Advance Payments). In combination with the AgriInvest program, it is the successor to the Canadian Agricultural Income Stabilization (CAIS) program. AgriInvest provides coverage for smaller income declines where AgriStability assists producers in managing larger losses.

AgriStability Website

Strategic Outcome: A competitive agriculture, agri-food and agri-based products sector that proactively manages risk

Results Achieved:
Results reported in 2010-11 relate to farming activities in the 2008 program year. This reporting lag is due to the fact that final program payments are based on information the producer provides in filling income tax for the year. This information must then be processed for all producers and summary information collected from all program administrations to allow for reporting on performance results.

Participation in the 2008 program year declined largely due to improved farm incomes. The percentage of market revenues covered by AgriStability for the 2008 program year was 68%. AgriStability program payments brought producers' current year margin up to 65% of the reference margin based on the 2008 program year.

Comment(s) on Variance(s):
AgriStability is a demand-driven program rather than being funded from a set allocation for each fiscal year. Although the administrative costs remain relatively constant, the variance of the year to year grant and contribution payments is directly related to participation and the needs of the agricultural industry. As such, in good years, the program will cost governments less, while in bad years (i.e., years with dropping commodity prices, disasters, etc.) the costs of the program will be higher.  Finally, AgriStability payments are affected by the level of assistance provided by other programs; payments received by recipients through these programs may reduce the amount of AgriStability funding disbursed.

Actual spending under the AgriStability program was lower than planned in 2010-11 primarily due to stronger commodity prices and payments provided by the AgriInsurance and AgriRecovery programs. These factors contributed to reduced funding requirements under the AgriStability program.

Audit Completed or Planned: A performance audit initiated in fiscal 2010-11 by the Office of the Auditor General is currently underway and expected to be completed in the fall of 2011.

Evaluation Completed or Planned: A program evaluation is in progress and is scheduled to be completed in March 2012.

Note:
The Canadian Agricultural Income Stabilization (CAIS) program was replaced by the AgriStability and AgriInvest programs as of April 1, 2008.
Due to rounding, figures may not add to the totals shown.

Name of Transfer Payment Program: Canadian Cattlemen's Association Legacy Fund (Statutory)

Start Date: June 27, 2005

End Date: March 31, 2015

Description:
The purpose of the Canadian Cattlemen's Association Legacy Fund is to support the Canadian beef sector to develop markets for beef cattle, beef cattle genetics, beef and beef products in a post-BSE environment. A grant totalling $50 million over 10 years will be provided.

Strategic Outcome: A competitive agriculture, agri-food and agri-based products sector that proactively manages risk

Results Achieved:

• McDonald's Canada made a strong commitment to the Canadian Beef Advantage (CBA) by displaying the CBA brand mark on their website. They are one of many partners who promote the brand and healthfulness of ground beef.
• Several branded initiatives with US partners were developed to utilize 100% Canadian beef including the first US restaurant chain, Stonefire Grill, to brand a menu mainstay as Canadian beef. In all, 97 Canadian beef brand license agreements were signed with partners.
• Total beef exports to Japan, Taiwan and Russia in 2009 doubled from 2008, totalling 19,500 tonnes, despite the global recession. Exports in 2009 were down 5% to Mexico from 2008 due to decreased tourism, H1N1 and a change in Canadian packer ownership leading to reduced volumes.
• New international markets for Canadian beef were established including a staged, full market access agreement with China, entry into medium-high end restaurants in Hong Kong and securing large family restaurants in Japan and Taiwan. New markets were established for Canadian beef genetics in Colombia and Panama.

Comment(s) on Variance(s): In developing the spending profile for the Legacy Fund, annual expenditures were estimated by prorating the $50 million fund over the ten year time frame at $5 million per year. However, funds are actually allocated based on the requirements outlined in the annual business plan which reflects the priorities of the fund recipients. As such, the funds needed in any particular year will vary depending on the marketing plan developed for that year. These forecasts are made even more difficult by challenges in predicting when Canadian beef might actually regain access to a key market (e.g. South Korea).

Audit Completed or Planned: AAFC initiated a compliance audit in March 2010, the audit is expected to be completed by December 2011.

Evaluation Completed or Planned: There was no evaluation undertaken for this program in 2010-11.

Note:
Due to rounding, figures may not add to the totals shown.

Name of Transfer Payment Program: Contributions to support the Specified Risk Material Innovation Program (Voted)

Start Date: June 17, 2010

End Date: March 31, 2013

Description:
The three-year, up to $40 million Specified Risk Material Innovation Program (being delivered under the name of Slaughter Waste Innovation Program (SWIP)) provides industry with the ability to capitalize on the knowledge, experience and technology advancement gained in dealing with the first three years of the Enhanced Feed Ban (EFB) and to move towards implementing longer term solutions that have the potential to improve the competitiveness of the sector. The objective of SWIP is to support research, development and commercialization or adoption of innovative technologies or processes related to the removal, disposal or use of Specified Risk Material (SRM) to reduce handling costs and to create potential revenue sources from SRM.

Eligible recipients include provincially and federally inspected slaughterhouses, and standalone businesses handling SRMs, including rendering plants, and to support pre-commercial research and development work, research or engineering firms in partnership with livestock industry associations or slaughter facilities. Recipients must be Canadian legal entities, including Canadian subsidiaries of foreign companies, and capable of entering into legally binding contracts.

Strategic Outcome: An innovative agriculture, agri-food and agri-based products sector

Results Achieved:
The Slaughter Waste Innovation Program has signed agreements to fund four projects to reduce the cost of processing SRM for a total of $18 million helping to increase the efficiency of the cattle industry in Canada.

Comment(s) on Variance(s): There was no planned spending reported as this program was approved after the 2010-11 RPP. Program expenditures have been on track and are in line with expectations.

Audit Completed or Planned: There was no audit undertaken for this program in 2010-11.

Evaluation Completed or Planned: There was no evaluation undertaken for this program in 2010-11. This program is included in the Evaluation of Cattle Slaughter Industry Assistance that is planned to be completed in 2013-14.

Note:
Due to rounding, figures may not add to the totals shown.

Name of Transfer Payment Program: Contributions in support of the Assistance to the Pork Industry Initiative (Statutory)

Start Date: September 22, 2009

End Date: March 31, 2014

Description:
The Assistance to the Pork Industry Initiative is composed of two programs:

1. Hog Industry Loan Loss Reserve Program (HILLRP) - was established to assist viable hog operations with their short term liquidity pressures by having the Government of Canada share the risk with financial institutions by consolidating short term debt into long term loans. It was designed to increase access to credit for eligible producers currently producing hogs in Canada, who can provide a business plan which demonstrates that the business is or can be viable and has a reasonable prospect of repaying the loan. Producers had until March 26, 2010 to apply for a HILLRP loan.

   The terms of the loans are negotiated between lenders and applicants but shall not exceed 15 years. Where possible, a maximum 10-year term will be encouraged. Lenders are responsible for assessing applications, extending and managing loan amounts in accordance with the program's terms and conditions, managing their Reserve Fund and for any losses beyond those that can be drawn from the Reserve Fund. As such, lenders continue to bear a proportion of the risk for loans extended under the HILLRP. 

2. Hog Farm Transition Program (HFTP) - Delivered by the Canadian Pork Council (CPC), it is designed to help the hog industry to restructure by providing payments to those hog producers who agree to set aside all hog production in their enterprises for a minimum of three years. Hog producers tender bids equal to the amount of funds they would require to shut down their total production for the three-year period. 

Strategic Outcome: A competitive agriculture, agri-food and agri-based products sector that proactively manages risk

Results Achieved:
HILLRP
The maximum total loan loss reserve that AAFC could provide under HILLRP was $404 million. There were 21 signed contribution agreements between AAFC and financial institutions, 263 loans issued under the program for a total of $408.1 million which represents a reserve amount of $243.8 million. To date there has been no withdrawals from the financial institutions' reserve fund. Producers had until March 26, 2010 to apply for a HILLRP loan. The program is now closed and reserve funding under the HILLRP was spent during the 2009-10 fiscal year. There is no authority for new spending. 

HFTP
HFTP is a $75 million program. A total of 446 hog producers were successful bidders in four tender events for a total of $71.9 million or an average of $838.35 per animal unit equivalent, resulting in an estimated annual reduction of 2.7 million hogs.

Comment(s) on Variance(s):
HFTP: After having successfully bid in the tender events, approximately 50 producers withdrew from the program as market hog prices began to rise.

Audit Completed or Planned:
HILLRP
A program under development audit was concluded in June 2010. It found that the governance, risk management and control framework established for the HILLRP were adequate and provide a reasonable expectation that funds were used for their intended purpose. Commendable management practices were identified. A program audit framework will be developed by program officials by December 2011.

HFTP
A program under development audit was concluded in April 2010. It found that the governance, risk management and control frameworks established for the HFTP are adequate to provide a reasonable expectation that funds will be used for their intended purpose and that planned outcomes will be achieved. Controls are in place over Program payments, and payments are made in accordance with the provisions of the contribution agreement, Program Terms and Conditions, the Treasury Board Policy on Transfer Payments, and the Financial Administration Act. A compliance audit for the period of August 15, 2009 to March 31, 2010 had similar findings with respect to the implementation of the agreement by the CPC. 

Evaluation Completed or Planned:
HILLRP
The intermediate outcome will be based on the percentage of hog producers who have received a reserve-backed loan that continue to repay the loan without defaulting. This information will be collected through annual reports and/or notifications from the participating financial institutions.

HFTP
An interim evaluation of the HFTP was undertaken in 2010-11 by the CPC. The evaluation found that the performance of the Program was strong; appropriately structured and delivered to meet its objectives as defined in the Contribution Agreement. The speed of the Program launch was a notable strength. The application of the Program was consistent and the Animal Unit Equivalent (AUE) concept was a strong Program feature. Both recipients and non-recipients were satisfied with the overall Program management. The CPC must complete a final program evaluation by September 30, 2014.

Note:
Due to rounding, figures may not add to the totals shown.

Name of Transfer Payment Program: Contributions for Rural and Co-operatives Development (Voted)

Start Date: April 1, 2009

End Date: March 31, 2013

Description:
The programming for Rural and Co-operatives Development covers the following two initiatives:

Rural development programming, whose objective is to support local, regional, and national stakeholders to develop collaborative activities that contribute to the engagement, knowledge development and knowledge transfer activities to address barriers to rural competitiveness, innovation and amenities development. This is part of Canada's Rural Partnership (CRP). 

Co-operative Development Initiative (CDI) which provides support for the development, innovation and growth of co-operatives, by:

• Providing advisory services and funding innovative co-op projects, delivered by the two national co-operative associations; and
• Funding research to build knowledge contributing to co-op development.

Strategic Outcome: An innovative agriculture, agri-food and agri-based products sector

Results Achieved:
Rural development
As part of Canada's Rural Partnership, 38 rural community initiatives were undertaken to engage community partners in identifying issues and seizing opportunities for development, ranging from improving access to local foods to building capacity to capture new opportunities in the production of alternative energy.

In addition, 14 rural development tools were developed or adapted and disseminated throughout rural Canada to assist communities and local decision-makers in overcoming barriers and engaging in sustainable regional planning; 15 rural communities identified and assessed their local natural and cultural amenities as a means of increasing their competitiveness; and 23 resource-reliant rural communities worked to innovate and diversify their economies through the use of updated or adapted information and tools.

Co-operative Development Initiative
Under the Co-operative Development Initiative (CDI), 21 national and provincial co-op sector associations have created an integrated co-op development advisory services network that provides information, education, advice and technical assistance to community groups and organizations. These activities have resulted in significant improvements in the number and quality of technical assistance and other co-op development services available to Canadians. In 2010-11, 75 new co-operatives were created (target was 40) and 281 existing co-operatives had their operations consolidated/strengthened (target was eight). In addition, 127 innovative co-op projects were approved (target was 25), testing new and innovative applications of the co-op model to address economic, social and environmental challenges at the community level. Finally, a national project was approved to stimulate research and knowledge development on co-operatives. Six more projects were positively assessed and should be implemented in the next fiscal year (target is five by 2013).

Comment(s) on Variance(s):
Rural development
Although higher when compared to the previous year, actual program funding was lower than expected. As rural communities are recovering from the economic slow down, their needs are changing towards activities generating more concrete economic activity. Adjustment of the program to match this evolving need occured over the last few months of the year when program changes were implemented to offer funding to initiatives offering more concrete benefits to rural communities.

Co-operative Development Initiative
A slight spending shortfall occurred in the CDI: During the year, CDI faced challenges in the implementation of its Research and Knowledge Development component. The call for proposals and selection of projects was completed during the last quarter, hence project spending was delayed until the end of the fiscal year.

Audit Completed or Planned:
Rural development
The Community Development Program was audited in 2010-11 as part of the Horizontal Audit of Grants and Contributions Programs of the Office of Audit and Evaluation.

Co-operative Development Initiative
A compliance audit of the Canadian Co-operative Association (CCA) and Conseil Canadien de la Coopération et de la Mutualié (CCCM), responsible for the administration of two of three CDI program components, was completed in 2010-11. The auditors confirmed that recipients comply in general with the signed agreement. The scope of the report was limited to the first year of the agreement (2009-10) and it identified a small number of clarifications and non-critical issues that, when corrected, will ensure full compliance to the contribution agreement and improved operational efficiencies. A number of issues were related to the start up and were already corrected at the time of the audit.

Evaluation Completed or Planned: There was no evaluation undertaken for this program in 2010-11. An evaluation for the Canada's Rural Partnership is planned for 2012-13.

Note:
Due to rounding, figures may not add to the totals shown.

Name of Transfer Payment Program: Contributions to accelerate the Pace of Innovation and Facilitate the Adoption of New Technologies (Voted)

Start Date: April 1, 2009

End Date: March 31, 2013

Description:
The program is designed to accelerate industry led innovation activities leading to the development and commercialization of new products, practices and processes by supporting the required academia, industry and government foresight and applied science, technology and development activities.

The program initiatives are designed to work systematically along the three phases of the innovation continuum; they are:

• Discovery Phase: the creation of new knowledge and ideas;
• Pre-commercialization Phase: the further development of ideas into new technologies to address challenges and opportunities; and
• Commercialization, Adoption and Marketing Phase: the realization of economic and social benefits from the technologies that generate new practices, products and processes.

Strategic Outcome: An innovative agriculture, agri-food and agri-based products sector

Results Achieved:
Agri-Science Clusters (Clusters), and Developing Innovative Agri-Products (DIAP) are initiatives within the federal-only Growing Canadian Agri-Innovations Program. All remaining contribution agreements were signed in 2010-11; and all 10 Clusters and most of the 25 DIAP projects were fully operational by the end of 2010-11.

As most projects started in 2010-11, significant achievements of the research results are limited. However, a few early success stories have been identified, such as the following with the Organic Science Cluster:

Organic farmers in Prince Edward Island (PEI) are seeking high-value options for production and identified a market for specialty fruits including black currants. The Organic Science Cluster (OSC) conducted trials on two farms in PEI to identify optimum methods of weed control for promoting black current bush size, harvest-ability yield and fruit quality. Preliminary results indicate the use of landscape fabric for weed control increased plant growth by up to 50%, and concentrations of nutrients in leaf tissue were higher. Plants will be further evaluated in the next few years to determine if this increase translates into larger root reserves, higher yield and greater fruit quality. Already, farmers in PEI are seeing the increase in plant growth and potential labour savings are planning to adopt similar weed control practices.

The OSC has reached over 1000 farmers/producers, processors and manufacturers across Canada over the past 18 months through technology transfer events such as field days, meetings with farmer associations and producers updates.

The Bilateral Agreements to implement Growing Forward: A Federal-Provincial-Territorial Framework Agreement on Agriculture, Agri-Food and Agri-Based Products Policy specify that the Parties shall prepare annual performance reports containing information and provide them to the other Party on or before August 31 in respect of activities carried out under Designated Programs by Thematic Area in the previous fiscal year (consistent with Schedule 1: Part C: Performance Indicators and Targets). As such, performance information relating to Growing Forward cost-shared programs will not be available for inclusion in this Departmental Performance Report. Once performance results for this program are available, they can be found at: Growing Forward Reporting.

Comment(s) on Variance(s): The variance between planned spending and total authorities was due to planned spending being based on estimated program costs, due to timing of the 2010-11 RPP. Actual spending was slightly less than authorities due to timing of program implementation and additional time required in the planning stages, reviewing and assessing areas of priority that required further action under this initiative. This included discussions with provincial partners and key industry stakeholders. A portion of this variance could potentially be carried forward into 2011-12.

Audit Completed or Planned: Two audits of Growing Forward cost-shared programs will be completed by 2012 for British Columbia and Prince Edward Island.

Evaluation Completed or Planned: Under the Growing Forward Bilateral Agreement, Provincial and Territorial governments are to report the results of their Growing Forward evaluation to AAFC by March 2012.

Note:
Due to rounding, figures may not add to the totals shown.

Name of Transfer Payment Program: Contributions to enable Competitive Enterprises and Sectors (Voted)

Start Date: April 1, 2009

End Date: March 31, 2013

Description:
Agri-Business Development provides support for provincial and territorial activities and to national organizations to increase the use of sound business management practices by producers and agri-businesses to enable businesses to be profitable.

Eligible programs and initiatives equip producers and agri-businesses with the skills, knowledge and expertise needed to understand their businesses' financial situation, assess opportunities, respond to change, and realize business goals. It also enables agri-businesses to be profitable and invest where needed to manage the natural resource base sustainably, and produce and market safe food and other products.

Strategic Outcome: An innovative agriculture, agri-food and agri-based products sector

Results Achieved:
The Bilateral Agreements to implement Growing Forward: A Federal-Provincial-Territorial Framework Agreement on Agriculture, Agri-Food and Agri-Based Products Policy specify that the Parties shall prepare annual performance reports containing information and provide them to the other Party on or before August 31 in respect of activities carried out under Designated Programs by Thematic Area in the previous fiscal year (consistent with Schedule 1: Part C: Performance Indicators and Targets). As such, performance information relating to Growing Forward cost-shared programs will not be available for inclusion in this Departmental Performance Report. Once performance results for this program are available, they can be found at: Growing Forward Reporting.

Comment(s) on Variance(s): The variances between Planned Spending and Total Authorities are due to Planned Spending being based on estimated program costs, due to timing of the 2010-11 RPP. There is an increase between Planned Spending and Actual Spending, as some provinces modified the eligibility criteria and the level of benefits for some of their cost-shared programs which resulted in higher spending than planned. As well, strong levels of uptake of cost-shared programs have also resulted in higher spending than anticipated.

Audit Completed or Planned: Two audits of Growing Forward cost-shared programs will be completed by 2012 for British Columbia and Prince Edward Island.

Evaluation Completed or Planned: Under the Growing Forward Bilateral Agreement, Provincial and Territorial governments are to report the results of their Growing Forward evaluation to AAFC by March 2012.

Note:
Due to rounding, figures may not add to the totals shown.

Name of Transfer Payment Program: Contributions to enhance the Safety and Security of Canada's Food System (Voted)

Start Date: April 1, 2009

End Date: March 31, 2013

Description:
Programming for the Contributions to enhance the Safety and Security of Canada's Food System is comprised of the following components:

Food Safety Systems Development
Food Safety Systems Development focuses on the development of voluntary science-based food safety systems by national organizations to effectively minimize food safety risks. It supports national (or equivalent) organizations in developing on-farm and/or post-farm Hazard Analysis Critical Control Point (HACCP) based food safety systems. Intended clients are national or regional non-profit organizations that are not represented by entities at the national level. 

Food Safety Systems Implementation
Food Safety Systems Implementation facilitates the early adoption of government-recognized food safety systems by producers and non-federally registered food-processing enterprises through financial incentives. Eligible projects could include the implementation of good manufacturing practices towards HACCP or ISO 22000 standards in non-federally registered processing plants and the implementation of government reviewed HACCP-based food safety systems on farms. Implementation is administered by provinces and territories under Growing Forward.  

Strategic Outcome: A competitive agriculture, agri-food and agri-based products sector that proactively manages risk 

Results Achieved:
Food Safety Systems Development
National on-farm organizations and post-farm organizations are in the process of developing food safety systems which are ready to submit to the Canadian Food Inspection Agency (CFIA) for Technical Review Part 1 or 2 under the CFIA food safety recognition program. The target is six for on-farm and seven post-farm by March 2013. Since 2009 six on-farm organizations have submitted to CFIA for technical reviews. In 2010-11 CFIA issued two Letters of Completion for Technical Review Part 1 to the Ontario Veal Association and the Fédération des producteurs de bovins du Québec bringing the total to six on-farm organizations receiving letters of completion since 2009. The Canadian Sheep Federation started a second Technical Review Part 1 because of major changes to their on-farm food safety program. The Chicken Farmers of Canada also started a Technical Review Part 1 for free range chickens and the Turkey Farmers of Canada submitted to CFIA for a Technical Review Part 2. No post-farm organization has submitted to CFIA for a Technical Review Part 1 because the technical review process is in the final stages of development by CFIA. However AAFC has approved an application from Canadian Produce Marketing Association that will allow this association in 2011-12 to submit to CFIA for a post-farm Technical Review Part 1. In 2010-11 seven agreements were signed (five post-farm, two on-farm), one project was approved to start in 2011-12 and four applications are under review. In the first two years of this initiative 19 food safety development agreements have been signed and seven projects have been completed. 

Food Safety Systems Implementation
The Bilateral Agreements to implement Growing Forward: A Federal-Provincial-Territorial Framework Agreement on Agriculture, Agri-Food and Agri-Based Products Policy specify that the Parties shall prepare annual performance reports containing information and provide them to the other Party on or before August 31 in respect of activities carried out under Designated Programs by Thematic Area in the previous fiscal year (consistent with Schedule 1: Part C: Performance Indicators and Targets). As such, performance information relating to Growing Forward cost-shared programs will not be available for inclusion in this Departmental Performance Report. Once performance results for this program are available, they can be found at: Growing Forward Reporting.

Comment(s) on Variance(s): For the Food Safety Systems Development component, the actual spending was lower than planned with 58% of available funds contractually committed of which 88% was spent by clients. This variance is due to the lower than expected demand for food safety systems development by post-farm organizations at this time, as well as the fact that many on-farm organizations have simply been maintaining their systems rather than progressing through the recognition process. 

Audit Completed or Planned: The Food Safety and Traceability Programs Division Compliance Audit Plan provided for three project-specific audits for 2010-11. These three audits are on-going and are scheduled to be completed in 2011-12. Two audits of Growing Forward cost-shared programs will be completed by 2012 for British Columbia and Prince Edward Island.

Evaluation Completed or Planned: Evaluations are scheduled as follows: in 2011-12 for Food Safety Systems Implementation and in 2012-13 for Food Safety Systems Development. Under the Growing Forward Bilateral Agreement, Provincial and Territorial governments are to report the results of their Growing Forward evaluation to AAFC by March 2012.

Note:
Eligible projects under Food Safety Systems Development are comprised of activities that allow organizations to support, develop, and prepare for implementation of food safety systems as follows: Phase 1 (P1) projects: establish a national integrated food safety strategy; Phase 2 (P2) projects: develop a food safety system; a management system; and the training, audit and communication materials to prepare in implementing the system and Review (R) projects: Enhancement of an existing food safety system. The following indicates the organizations who have entered into agreement with AAFC during 2010-11, their project phase and the date of any news releases issued prior to June 30, 2011: Canadian Produce Marketing Association (P1); Canadian Bottled Water Association (P2); Canadian Vintners Association (P2 - Nov 27, 2010); Jewish Community Council of Montreal (P1); Canadian Cattlemen's Association (P2 + R); Canadian Grains Council (R); Canadian Celiac Association (P1). To see news releases about some of the organizations and their projects please visit the AAFC Newsroom site and the AAFC Proactive Disclosure site. 

Due to rounding, figures may not add to the totals shown.

Name of Transfer Payment Program: Contributions to minimize the Occurrence and Extent of Risk Incidents (Voted)

Start Date: April 1, 2009

End Date: March 31, 2013

Description:
Programming for the Contributions to minimize the Occurrence and Extent of Risk Incidents is comprised of the following components:

Biosecurity Standards Implementation
The approved national Biosecurity Standards form the basis for implementation of the minimum biosecurity requirements for a particular sector at the farm level. Provinces and territories are responsible for farm-level implementation and are able to impose additional standards to respond to a particular, unique need of the local industry.

Traceability Industry Infrastructure
Investment in Traceability Industry Infrastructure will enhance the industry's ability to follow the movement of a food through specific stages of production, processing and distribution. It supports the development and implementation of industry infrastructure to participate in the National Agriculture and Food Traceability System. This program invests in the development of industry-led systems that collect and verify identification and movement data, and accelerates industry capacity. 

Traceability Enterprise Infrastructure
The Traceability Enterprise Structure provides funding to individual businesses to assist in the purchase and installation of traceability infrastructure and the training of staff to implement traceability systems for plants, animals and products. This could include implementation of animal handling systems, equipment and data systems necessary to record and report data to industry databases. These actions will enable recipients to participate fully in the National Agriculture and Food Traceability System.

Strategic Outcome: A competitive agriculture, agri-food and agri-based products sector that proactively manages risk 

Results Achieved:
Biosecurity Standards Implementation and Traceability Enterprise Infrastructure
The Bilateral Agreements to implement Growing Forward: A Federal-Provincial-Territorial Framework Agreement on Agriculture, Agri-Food and Agri-Based Products Policy specify that the Parties shall prepare annual performance reports containing information and provide them to the other Party on or before August 31 in respect of activities carried out under Designated Programs by Thematic Area in the previous fiscal year (consistent with Schedule 1: Part C: Performance Indicators and Targets). As such, performance information relating to Growing Forward cost-shared programs will not be available for inclusion in this Departmental Performance Report. Once performance results for this program are available, they can be found at: Growing Forward Reporting.

Traceability Industry Infrastructure
There is a target of 10 organizations or private entities implementing industry-led traceability systems by March 2013. Since 2009-10, 12 national organizations have entered into 19 agreements. Seven of these projects are completed and 12 are on-going. AAFC is funding three implementation projects for the following two organizations: Canadian Pork Council and Canadian Animal Health Coalition. The remaining nine projects involve systems development activities. Two projects have been approved to start in 2010-11 and six applications are undergoing review.

Comment(s) on Variance(s): For the Traceability Industry Infrastructure component, the actual spending was lower than planned with 81% of available funds contractually committed of which 87% was spent by clients. This variance is due to normal program year to year fluctuations caused by lower than planned expenditures by clients and the fact that the program spending is demand driven. However the program's contractual commitments and demand based on current applications received is expected to fully utilize the total funding available for this program. 

Audit Completed or Planned: The Food Safety and Traceability Programs Division Compliance Audit Plan provided for five project-specific audits for 2010-11. Two audits were completed with no significant findings and three audits are on-going and are scheduled to be completed in 2011-12. Two audits of Growing Forward cost-shared programs will be completed by 2012 for British Columbia and Prince Edward Island.

Evaluation Completed or Planned: Evaluations are scheduled as follows: in 2011-12 for Biosecurity Standards Implementation and Traceability Enterprise Infrastructure and in 2012-13 for Traceability Industry Infrastructure. Under the Growing Forward Bilateral Agreement, Provincial and Territorial governments are to report the results of their Growing Forward evaluation to AAFC by March 2012.

Note:
Eligible projects under Traceability Industry Infrastructure will support activities related to traceability systems development on a national or regional basis. Eligible activities may include: Phase A (PA) – systems development activities such as: strategic assessments and industry systems development and Phase B (PB) industry systems implementation activities such as: data management systems, technology adoption and testing, data auditing and verification. The following indicates the organizations who have entered into agreements with AAFC during 2010-11, their project phase and the date of any news releases issued prior to June 30, 2011: Canadian Cattle Identification Agency (PA - March 11, 2011 – three agreements); Agri-Tracabilite Quebec (PA); Federation des producteurs acericoles du Quebec (PA - February 15, 2011); Canadian Pork Council (PA and PB); Canadian Sheep Federation/Canadian National Goat Federation (PA -January 31, 2011). To see news releases about some of the organizations and their projects please visit the AAFC Newsroom site and the AAFC Proactive Disclosure site.

Due to rounding, figures may not add to the totals shown.

Name of Transfer Payment Program: Contributions to promote Environmentally Responsible Agriculture (Voted)

Start Date: April 1, 2009

End Date: March 31, 2013

Description: Agriculture and Agri-Food Canada (AAFC) supports farmers through agri-environmental risk assessment and planning; providing expertise, information and incentives to increase the adoption of sustainable agriculture practices at the farm and landscape levels; investigating and developing new approaches that encourage and support the adoption of sustainable agriculture practices; and increasing the recognition of the value of sustainable agriculture practices. This program supports environmental stewardship and helps reduce the sector's overall impact on the environment. It contributes to a cleaner environment and healthier living conditions for Canadian people, and a more profitable agriculture sector.

Strategic Outcome: An environmentally sustainable agriculture, agri-food and agri-based products sector

Results Achieved:
Environmental Knowledge, Technology, Information and Measurement
On target - tools are being investigated and added to improve functionality of modelling and economic models. Scaling-up options for extrapolating Watershed Evaluation of Beneficial Management Practices (WEBS) findings beyond the immediate watershed where they occur are under active investigation. Development of a fully-distributed model application at one of the sites will enhance decision support capabilities for all sites.

On-Farm Action
The Bilateral Agreements to implement Growing Forward: A Federal-Provincial-Territorial Framework Agreement on Agriculture, Agri-Food and Agri-Based Products Policy specify that the Parties shall prepare annual performance reports containing information and provide them to the other Party on or before August 31 in respect of activities carried out under Designated Programs by Thematic Area in the previous fiscal year (consistent with Schedule 1: Part C: Performance Indicators and Targets). As such, performance information relating to Growing Forward cost-shared programs will not be available for inclusion in this Departmental Performance Report. Once performance results for this program are available, they can be found at: Growing Forward Reporting.

Comment(s) on Variance(s): The variance between planned spending and total authorities was due to planned spending being based on estimated program costs, due to timing of the 2010-11 RPP. There is a decrease between total authorities and actual spending due to timing of program implementation and additional time required in the planning stages, reviewing and assessing areas of priority that required further action under this initiative. This included discussions with provincial partners and key industry stakeholders. A portion of this variance could potentially be carried forward into 2011-12.

Audit Completed or Planned: Two audits of Growing Forward cost-shared programs will be completed by 2012 for British Columbia and Prince Edward Island.

Evaluation Completed or Planned: Under the Growing Forward Bilateral Agreement, Provincial and Territorial governments are to report the results of their Growing Forward evaluation to AAFC by March 2012.

Note:
Due to rounding, figures may not add to the totals shown.

Name of Transfer Payment Program: Contributions to strengthen the competitiveness of Canada's red meat packing and processing industry / Slaughter Improvement Program (SIP) (Voted)

Start Date: June 4, 2009

End Date: March 31, 2012

Description:
The national, applications-based Slaughter Improvement Program (SIP) provides eligible red meat packers and processors with repayable federal contributions to implement sound business plans for projects aimed at improving the operations of federally inspected packing plants. The program aims to allow industry stakeholders to strengthen their competitiveness by supporting new investments that could support profitability for red meat packers. These new investments focus on reducing operating costs, increasing revenues, adopting innovation to meet future business conditions and consumer expectations and addressing slaughter capacity gaps in regions where it can be demonstrated that this factor is constraining sector growth.

Recipients must also be involved or present a business plan to be involved in the slaughter of red meat. They must be federally inspected red meat packing and processing plants; provincially inspected plants implementing projects to become federally inspected to market their products beyond provincial boundaries; or legal entities planning to establish a federally inspected plant in a region where a deficit in slaughter capacity is constraining sector growth. The program is applications-based, and functions under a request-for-applications approach.

Strategic Outcome: An innovative agriculture, agri-food and agri-based products sector

Results Achieved:
Fifteen contribution agreements have been signed, two are currently being negotiated and one still remains conditionally approved. Two of the approved SIP projects have submitted final claims, however, since they have not completed their reporting year, there are no specific results available at this time.

Comment(s) on Variance(s): Budget 2010 announced an additional $10M for the SIP bringing Total Authorities to $29.6M. Actual spending was less than the planned spending due to the timing of the approval of the projects as well as the multi-year nature of most of the proposals. Unspent funding is expected to be carried forward for use in 2011-12.

Audit Completed or Planned: A "Program Under Development Audit" was conducted between February and May 2010 in accordance with the 2009-12 Agriculture and Agri-Food Canada Risk-Based Audit Plan. A further audit has not been scheduled at this time.

Evaluation Completed or Planned: There was no evaluation undertaken for this program in 2010-11. An evaluation of the program is currently planned in the AAFC Five-Year Strategic Evaluation Plan (2011-12 to 2015-16) to begin in 2013-14 with planned completion by 2014-15.

Note:
Due to rounding, figures may not add to the totals shown.

Name of Transfer Payment Program: Contributions to support the Canadian Agricultural Adaptation Program (Voted)

Start Date: May 28, 2009

End Date: On-going, subject to evaluation of relevance and effectiveness by March 31, 2014.

Description:
The Canadian Agricultural Adaptation Program (CAAP)'s objective is to facilitate the agriculture, agri-food, and agri-based products sector's ability to seize opportunities, to respond to new and emerging issues, and to pathfind and pilot solutions to new and ongoing issues in order to help it adapt and remain competitive. Launched as a successor to the Advancing Canadian Agriculture and Agri-Food (ACAAF) program, CAAP will continue to support industry-led initiatives at the national, regional and multi-regional levels.

Strategic Outcome: An innovative agriculture, agri-food and agri-based products sector

Results Achieved:
CAAP supports industry-led initiatives at the national, regional and multi-regional levels. Most projects funded take place over several years and longer-term impacts materialize a few years after project completion. Since CAAP is currently in the early stages (with a focus on longer-term projects), the program measures short-term outcomes with two performance indicators:

1. Improved knowledge of potential innovative products, processes or technologies
2. Improved knowledge of solutions/strategies analyzed/tested to address issues/opportunities

Information available on national and industry-led projects indicate that:

• 82 projects initiated in 2010-11 will improve knowledge of potential innovative products, processes or technologies; and
• 113 funded projects initiated in 2010-11 will improve knowledge of solutions/strategies analyzed/tested to address issues/opportunities.

Comment(s) on Variance(s): The program has been very well received at the regional level, resulting in more applications than anticipated and higher than expected spending for 2010-11. 

Audit Completed or Planned: There was no audit undertaken for this program in 2010-11.

Evaluation Completed or Planned: There was no evaluation undertaken for this program in 2010-11. An evaluation is planned for 2013-14 to support program renewal.

Note:
Due to rounding, figures may not add to the totals shown.

Name of Transfer Payment Program: Contributions to transform Canada's Strengths into Domestic and Global Success (Voted) (related funding is found under Grant payments for the Organization for the Economic Co-operation and Development (OECD) (Voted))

Start Date: April 1, 2009

End Date: March 31, 2013

Description:
The programming for transforming Canada's Strengths into Domestic and Global Success is composed of the following:

The AgriMarketing Program (AMP) provides a platform to equip industry, including small and medium-sized enterprises, for success in global markets. AgriMarketing cost-shares with industry associations for international market development, export promotion activities and in-depth research to form long-term international strategies that contribute and build on the Canada Brand. 

The Enabling Research for Competitive Agriculture (ERCA) Program supports research, complements AAFC policy analysis and development, and contributes to a more informed policy dialogue by engaging the external policy research community on priority issues that can be used by industry groups and producers to assist them in identifying new opportunities, markets and ways to enhance productivity and improve competitiveness to improve their success in global and domestic markets.

A small component of the ERCA initiative provides a grant to the Organization for Economic Cooperation and Development (OECD) to enhance research on priority issues for Canada in the global context through collaborative activities, thereby providing a unique, global perspective on Canada's competitiveness. 

Market Information and Export Capacity Building
Initiatives falling under this category aim to perform market analysis on Canada's performance in key markets and emerging countries to aid exporting companies and producers in capitalizing on global market opportunities and trends, and strengthen the capacity of the agriculture and food sector to maintain and enter new foreign markets.

Strategic Outcome: A competitive agriculture, agri-food and agri-based products sector that proactively manages risk

Results Achieved:
AgriMarketing Program

• 45 Contribution Agreements totalling almost $22 million with industry associations, alliances and technical marketing institutions were completed.
• We are still working to enhance our economic analysis of the Program's outcomes. Based on our initial work year-over-year economic data has proven to be of limited value as it varies widely due to a host of factors. However, a longer term analysis has indicated that overall exports for supported sectors (where reliable data is available), grew on average by 16 percent per year between 2003 and 2010. Increased capacity of industry associations to deliver market development and branding projects;
• To increase the effectiveness of market development and branding projects undertaken by industry associations a policy was developed to make participation and the use of the Canada Brand mandatory in 2011-12.
• AMP facilitated the market development efforts of 45 associations and their related small and medium enterprises by cost sharing a range of marketing and branding initiatives including: trade shows, market development and training missions, and the development and translation of promotional material.

ERCA Program
Grant to OECD (part of ERCA):

• Supported methodological development of the OECD General Services Support Estimate to improve accuracy and cross-country consistency of data and analysis; and
• Provided further support to OECD work on risk management and will push further into the area of livestock risk management issues.

ERCA Contributions:
Five Contribution Agreements were signed in October 2009 with four canadian universities for a total of $5.2M over 4 fiscal years (from 2009-2010 to 2012-2013), thus creating five networks of experts in the following areas: Consumer and Market Demand (CMD), Environment (ENV), Innovation and Regulation (IR), Trade and Competitiveness Research (TCR), Structure and Performance of Agriculture and Agri-Food Industry (SPAA).

There are 160 researchers involved in this program: CMD: 30, ENV: 28, IR: 33, TCR: 43, SPAA: 26. There were 68 graduate students funded at Canadian universities in Canada through this program: CMD: 11, ENV: 14, IR: 13, TCR: 14, SPAA: 16. There were 48 projects funded directly by ERCA in 2010-2011: CMD: 12, ENV: 2, IR: 19, TCR: 8, SPAA: 7. There were 344 research reports, policy briefs, professional articles, working papers, and other publications released by network members including projects directly funded by ERCA and papers focuses on issues related to the network activities. The networks hosted along with the Canadian Agriculture Economic Society a major policy conference in Ottawa in January, 2011. There were 16 total conferences/workshops hosted or partially sponsored by the networks in 2010-11: CMD: 5, ENV: 4, IR: 1, TCR: 4, SPAA: 2.

Market Information and Export Capacity Building
The Bilateral Agreements to implement Growing Forward: A Federal-Provincial-Territorial Framework Agreement on Agriculture, Agri-Food and Agri-Based Products Policy specify that the Parties shall prepare annual performance reports containing information and provide them to the other Party on or before August 31 in respect of activities carried out under Designated Programs by Thematic Area in the previous fiscal year (consistent with Schedule 1: Part C: Performance Indicators and Targets). As such, performance information relating to Growing Forward cost-shared programs will not be available for inclusion in this Departmental Performance Report. Once performance results for this program are available, they can be found at: Growing Forward Reporting.

Comment(s) on Variance(s):
AgriMarketing 
The variance between total authorities and actual spending is primarily as a result of some of the associations' inability to spend all of their approved funding related to AgriMarketing. Since recipients of AgriMarketing funding are associations which are undertaking activities in foreign markets, some of the associations were unable to undertake and complete some of their activities due to resource limitations and/or changes to timing and planning as a result of shifting market conditions.

ERCA Contributions
2010-11 Actual Spending was slightly lower than authorities due to some of the variable expenses for the networks not being as high as anticipated.

Market Information and Export Capacity Building
The variance between total authorities and actual spending is due to timing of program implementation and additional time required in the planning stages, reviewing and assessing areas of priority that required further action under this initiative. This included discussions with provincial partners and key industry stakeholders. A portion of this variance could potentially be carried forward into 2011-12.

Audit Completed or Planned:
AgriMarketing: AMP completed one audit in 2010-11. There are three audits planned for 2011-12.

Grant to OECD (part of ERCA): There was no audit undertaken for this program in 2010-11.

ERCA Contributions: There was no audit undertaken for this program in 2010-11.

Market Information and Export Capacity Building: Two audits of Growing Forward cost-shared programs will be completed by 2012 for British Columbia and Prince Edward Island.

Evaluation Completed or Planned:
AgriMarketing: There was no evaluation undertaken for this program in 2010-11.

Grant to OECD (part of ERCA): There was no evaluation undertaken for this program in 2010-11.

ERCA Contributions: The Recipient Audit Unit of the Centre of Program Excellence conducted an initial risk assessment of the 5 ERCA programs and deemed them to be of low risk. The Office of Audit and Evaluation has initiated an Evaluation of the Trade and Market Development Initiative (of which ERCA is a part of) starting in June, 2011 that will conclude in June, 2012.

Market Information and Export Capacity Building: Under the Growing Forward Bilateral Agreement, Provincial and Territorial governments are to report the results of their Growing Forward evaluation to AAFC by March 2012.

Note:
Due to rounding, figures may not add to the totals shown.

Name of Transfer Payment Program: Control of diseases in the hog industry - Phase 2 (Voted)

Start Date: September 4, 2008

End Date: March 31, 2013

Description:
The overarching goal of the Initiative for the Control of Diseases in the Hog Industry is to improve the health of the Canadian hog herd, which will help sustain the long-term viability and profitability of the sector. The Initiative for the Control of Diseases in the Hog Industry Phase 2 is a mid to long-term strategy to establish the foundation of a risk management framework for the Canadian hog sector. It is aimed at developing the capacities and structures within the hog industry to achieve long-term health and stability of the Canadian hog herd. This phase of the program is being delivered by the industry-led Canadian Swine Health Board (CSHB). CSHB is responsible for:

• The development of a national biosecurity and best management practices standard for the industry;
• The funding of research relative to circovirus and the establishment of a structure to facilitate and coordinate research on this and other emerging diseases; and
• The establishment of long-term risk-management solutions to help the industry mitigate the impacts of new and emerging diseases.

Circovirus Inoculation Program

Strategic Outcome: A competitive agriculture, agri-food and agri-based products sector that proactively manages risk 

Results Achieved:
Under the Biosecurity Pillar, the National Biosecurity Standard was completed; Under the Research Pillar, 13 research projects are underway and 6 post doctoral fellowships were established; Under the Long Term Disease Risk Management Pillar, development of a pork mortality insurance product is underway.

Comment(s) on Variance(s): Actual Spending in 2010–11 was less than Planned Spending largely due to timing in program implementation. Budget 2011 announced an extension to the Initiative for the Control of Diseases in the Hog Industry Phase 2 for an additional two years to March 31, 2013. This will enable the Canadian Swine Health Board to complete initiatives directed at national biosecurity standards and best management practices. As such, the majority of unspent funding from 2010-11 is expected to be carried forward for use in future years.

Audit Completed or Planned: There was no audit undertaken for this program in 2010-11.

Evaluation Completed or Planned: There was no evaluation undertaken for this program in 2010-11. According to AAFC's five year Strategic Evaluation Plan, the program is expected to be evaluated in 2014-15 with a number of other recent assistance programs for the hog sector.

Note:
Due to rounding, figures may not add to the totals shown.

Name of Transfer Payment Program: EcoAgriculture Biofuels Capital Initiative (Voted)

Start Date: March 29, 2007

End Date: March 31, 2013

Description:
The ecoAgriculture Biofuels Capital initiative (ecoABC) is a six-year, federal initiative that provides conditionally repayable contributions towards the construction or expansion of biofuel facilities that have equity investments from farmers and use agricultural feedstock. The initiative, which is part of the federal renewable fuels strategy, is providing an opportunity for farmers to benefit from the emerging renewable fuels industry while helping the government to achieve its targets for renewable fuel content in gasoline and diesel fuel through domestic production. Eligible recipients include corporations (including but not restricted to co-operatives), individuals, and partnerships, which are not subject to a controlling interest by a federal, provincial or municipal government, which can demonstrate that their equity investments from agricultural producers are equal to or exceed five percent of projected eligible project costs, and which intend to build plants or expand existing facilities to produce renewable transportation fuels in Canada from agricultural feedstock.

Strategic Outcome: An innovative agriculture, agri-food and agri-based products sector

Results Achieved:
EcoABC has committed $53 million to 9 biofuels projects representing 690 million new litres per year of biofuels production and $48 million of investment by 534 farmers.

Comment(s) on Variance(s): Planned Spending was higher than actual because, due to the timing of the RPP, the Planned Spending did not reflect the reallocation of funding over the two-year extension of the program from March 2011 to March 2013. Under this extension, program parameters were broadened and, in response to the poor economic conditions of 2008-09, more time was provided for projects to be completed and better aligned with other programs under the federal Renewable Fuels Strategy.

Audit Completed or Planned: EcoABC was part of the Horizontal Audit of Grants and Contribution Programs during 2010-11.

Evaluation Completed or Planned: An evaluation of this program was completed during 2010-11.

Note:
Due to rounding, figures may not add to the totals shown.

Name of Transfer Payment Program: Orchards & Vineyards Transition Program (Voted)

Start Date: October 25, 2007

End Date: March 31, 2011

Description:
This Orchards and Vineyards Transition program (OVTP) funded plant removal to support replanting orchards and vineyards or planting other crops to help producers compete in changing global markets. The program responded to market pressure by funding strategic planning activities to increase the industry's knowledge and decision-making. The program operated in British Columbia, Ontario, Quebec, New Brunswick and Nova Scotia, and ended on March 31, 2011.

Strategic Outcome: An innovative agriculture, agri-food and agri-based products sector

Results Achieved:
The objective of the program was to ensure acreage was readily available for replanting of more marketable crops, and to develop an improved understanding of the opportunities for the orchards and vineyards sector. The OVTP resulted in fruit trees and grape vines being removed from 7,000 hectares, which made land available for the planting of more marketable varieties of tree fruits, grapes and other crops. The program encouraged producers to make the adjustments necessary to become more competitive.

Comment(s) on Variance(s): The variance between the planned spending and the actual spending in 2010-11 is due to higher than expected demands for the program in the province of Quebec.

Audit Completed or Planned: There was no audit undertaken for this program in 2010-11.

Evaluation Completed or Planned: A lessons learned exercise for the program is expected to be finalized in 2011-12. Under the federal-provincial agreements, the provinces are responsible for evaluating the activities carried out under the agreements.

Note:
Due to rounding, figures may not add to the totals shown.

Name of Transfer Payment Program: Over Thirty Months Payment Program (Voted)

Start Date: June 17, 2010

End Date: March 31, 2011

Description:
This program, also referred to as the Abattoir Competitiveness Program (ACP), was a one year, $25 million program which ended on March 31, 2011. The program provided direct payments (grants) to eligible recipients based on the volume of specified risk materials produced from over thirty month old (OTM) cattle during the 2010 calendar year. ACP was designed to:

• Help federally, provincially and territorially registered cattle slaughter facilities address short-term competitiveness issues;
• Facilitate improved management of specified risk materials; and
• Contribute to maintaining a critical slaughter capacity in Canada for OTM cattle while industry makes efforts to better manage the cost differential with the U.S.

Strategic Outcome: An innovative agriculture, agri-food and agri-based products sector

Results Achieved:
The short-term assistance provided under this program has been well received by industry with 16 applications received from federally inspected facilities and 217 applications received from provincially inspected facilities for a total of 233 applications received nationally. The expected result was that Canadian OTM (over thirty months old) slaughter capacity be maintained, the target being 75% of the 2009 value. This target was exceeded, as capacity was maintained at 98%.

Comment(s) on Variance(s): There was no planned spending reported as this program was approved after the 2010-11 RPP.

Audit Completed or Planned: There was no audit undertaken for this program in 2010-11.

Evaluation Completed or Planned: There was no evaluation undertaken for this program in 2010-11. This program is included in the Evaluation of Cattle Slaughter Industry Assistance that is planned to be completed in 2013-14.

Note:
Due to rounding, figures may not add to the totals shown.

Name of Transfer Payment Program: Payments in connection with the Agricultural Marketing Programs Act (AMPA) / Advance Payments Program (Statutory)

Start Date: 1997

End Date: On-going under AMPA

Description:
The Advance Payments Program (APP) is a financial loan guarantee program that guarantees cash advances to producers, enabling them to produce and market their agricultural products when conditions are most ideal. Producers can receive cash advances of up to $400,000 per production period, the first $100,000 of which is interest-free. Advances can be on a variety of crops and/or livestock and producers have up to 18 months (usually from April until September of the following year) to use their cash advance for whatever purpose they feel necessary. The producer must repay their advance (as they are selling/delivering their product) in full before the end of the 18 month production period.

Strategic Outcome: A competitive agriculture, agri-food and agri-based products sector that proactively manages risk

Results Achieved:
For the 2010-11 production period, 64 agreements were signed to deliver the APP with producer organizations. Approximately $1.57 billion was issued in advances to approximately 39,566 producers. The uptake of the program fluctuates from year to year. 2010-11 saw an increase in the number of participants but a decrease in the amount advanced. This is likely due to lower commodity prices and a decrease in the amount that livestock producers are borrowing under the program.

Comment(s) on Variance(s): The variance between planned and actual spending was primarily due to the fact that in 2010-11, fewer guarantee payments related to advances provided for the 2008 production period were made than originally expected due to two separate stays of default. Low interest rates during the fiscal year also resulted in a large cost savings.

Audit Completed or Planned: There was no audit undertaken for this program in 2010-11.

Evaluation Completed or Planned: The Advance Payments Program (APP) is enacted and governed by the Agricultural Marketing Programs Act (AMPA). The AMPA requires that a legislative review take place every five years in consultation with the Minister of Finance (the next five year anniversary being November 27, 2011).

The legislative review is currently underway and is comprised of 3 distinct activities: a program evaluation, a review of program delivery, and an evaluation of administrative efficiency. In spring 2011, targeted engagement sessions were conducted across Canada with industry stakeholders, APP administrators and producer organizations. Additionally, 3,000 individual producers were selected to complete a questionnaire, and 20 key stakeholders were selected for personal interviews.

Note:
Due to rounding, figures may not add to the totals shown.

Name of Transfer Payment Program: Plum Pox Eradication Program (PPEP) (Voted)

Start Date: April 19, 2004

End Date: March 31, 2011

Description:
The Plum Pox Eradication Program (PPEP) provided funding for activities aimed at eradicating the Plum Pox Virus (PPV) from the Niagara region of Canada while ensuring the viability of the tender fruit industry (peaches, plums, apricots, nectarines). The bulk of the funding supports an extensive survey of tender fruit orchards, research and financial assistance for tender fruit producers whose orchards are affected by the PPV. The program also includes an asset loss compensation component. This seven-year program (2004-05 to 2010-11) was a follow-up of the original three-year program (2001-02 to 2003-04).

The program is jointly funded by Agriculture and Agri-Food Canada (AAFC), the Canadian Food Inspection Agency (CFIA) and the Ontario Ministry of Agriculture Food and Rural Affairs (OMAFRA).

Canadian Food Inspection Agency

Results Achieved:
During 2010-11, the number of trees and orchards that have been identified as PPV positive were 211 cases and 58 cases respectively. One of the program's key performance targets was a 15% reduction in PPV incidences annually between 2004-2011. While this target had been met during the first six years of the program, a significant increase in positive tested trees during 2010-11 resulted in an annual reduction of 11% (a reduction from 942 PPV positives in 2004 to 211 PPV positives in 2010) when the program was terminated as of March 31, 2011.

Comment(s) on Variance(s): Funding has been fully spent as planned.

Audit Completed or Planned: There was no audit undertaken for this program in 2010-11.

Evaluation Completed or Planned: The final evaluation report and management responses for the Plum Pox Eradication Program are expected to be completed in September 2011.

Note:
Due to rounding, figures may not add to the totals shown.

Name of Transfer Payment Program: Programming related to the Agricultural Flexibility Fund (Voted)

Start Date: June 18, 2009

End Date: March 31, 2014

Description:
Agricultural Flexibility Fund (AgriFlexibility) initiatives will fall under three project categories or elements:

1. Investments to help reduce the cost of production or improve environmental sustainability;
2. Investments in value-chain innovation and sectoral adaptation; and
3. Investments to address emerging opportunities and challenges.

Strategic Outcomes:

• An environmentally sustainable agriculture, agri-food and agri-based products sector;
• A competitive agriculture, agri-food and agri-based products sector that proactively manages risk; and
• An innovative agriculture, agri-food and agri-based products sector.

Results Achieved:
As the Agricultural Flexibility Fund was meant to be flexible, no targets were set at the beginning of the fund for provincial, territorial and industry initiatives in partnership with the federal government. Provinces, territories and industry identified needs for the sector and presented proposals accordingly. Targets for individual contribution agreements/bilateral agreements were then established. In general, targets are for the duration of the agreements. Performance indicators, specific to the nature of each initiative, were developed and included in contribution/bilateral agreements. As most AgriFlexibility projects/initiatives are taking place over several years, it is a challenge to report annually on the achievement of specific targets. It should also be noted that targets may change, as provinces and territories are allowed to change their targets annually under their contribution agreements. From the beginning of the Fund to March 31, 2011 a total of 36 proposals received from provinces, territories and industry have been approved for a total value of about $149.4 million.

Under the Agri-Processing Initiative (API), a federal initiative established under AgriFlexibility, 20 facilities completed upgrades before the end of March 2011 compared to a target of 35 facilities. Another eight projects had agreements signed in the reporting period but projects will not be completed until 2011-12 and later. In total, by the end of March 2011, API had 33 contribution agreements signed for a total of $19.1 million compared to a target of 53 agreements and $20.7 million.

Comment(s) on Variance(s): As announced in Budget 2010, a total of $42M of 2010-11 planned spending was transferred to the Slaughter Improvement Program (SIP), the Over Thirty Months Payment Program (OTMPP) and the Slaughter Waste Improvement Program (SWIP), and is not reflected in the AgriFlexibility actual spending. A portion of the unspent funding is expected to be carried forward into future years.

Audit Completed or Planned: A "Program under Development Audit" was completed in January 2011. Observations from the audit were generally positive. Most of the expected elements of the governance, risk management and control frameworks of the Agricultural Flexibility Fund were found to be in place and working appropriately. Roles and responsibilities were clear, a senior-level committee provided appropriate oversight, key risks were identified and controls implemented to mitigate the assessed risks, templates consistent with the approved terms and conditions were used to assess projects, and funding agreements were generally complete and consistent with program terms and conditions.

An internal audit is planned for 2013-14.

Evaluation Completed or Planned: A mid-term evaluation was planned for 2011-12. Given that the scope of the audit was broader than anticipated, it was determined that the mid-term evaluation was no longer necessary and a complete evaluation will take place in 2015-16.

Note:
Due to rounding, figures may not add to the totals shown.

Name of Transfer Payment Program: Atlantic Innovation Fund – Voted

Start Date: May 10, 2001

End Date: Ongoing

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

Strategic Outcome: A competitive Atlantic Canadian economy

Results Achieved:
ACOA focuses on accelerating the development of the knowledge-based economy and on facilitating transition within traditional industries. The Agency uses the AIF to increase the region’s capacity to carry out leading-edge research and development and to contribute to the development of new technology-based economic activity in Atlantic Canada. In 2010-11, there were 27 projects approved under the AIF, accounting for over $69 million in ACOA assistance toward projects valued at $116.4 million.

The AIF facilitates the development of strategic sectors characterized by regional clusters of firms. Twenty-one of 27 approved projects in 2010-11, accounting for $49.3 million in AIF funding, augmented development of the IT, life sciences-biotechnology, and oil and gas-oceans technology clusters, and complement the National Research Council’s Atlantic Cluster initiative.

ACOA encourages prospective stakeholders, including universities, colleges, research organizations and private-sector firms, to take an active role in seeking opportunities for partnerships/collaboration. In 2010-11, there were 77 meaningful partnerships stemming from AIF-funded projects.

Furthermore, ACOA continued to support Springboard Atlantic Inc., which combines the research and commercialization strengths of its 19 university and college members to create a pan-Atlantic network. Springboard Atlantic Inc. supports the commercialization of Atlantic Canadian research through the transfer of knowledge and technology to the private sector. This network has been instrumental in facilitating public-private partnerships nationally, internationally and throughout Atlantic Canada.

Comment on Variance:
Planned spending for 2010-11 was affected by the timing of the approval of ongoing funding for AIF of $19 million (which was approved only on August 3, 2010 – TB #835763). It was excluded from the Main Estimates and, therefore, was not part of the planned spending reported in the 2010-11 Report on Plans and Priorities.

Audit Completed or Planned:

• Completed
  • Audit of Advance Management, completed March 2011
• In Progress
  • Audit of Post-Payment Verification, estimated completion was July 2011
  • Audit of Due Diligence in the Atlantic Innovation Fund, estimated completion December 2011
• Planned (for 2011-12)
  • Audit of Management of Provisionally Repayable Contributions, estimated completion March 2012

Evaluation Completed or Planned:
Following the introduction of the Program Activity Architecture (PAA), the Agency began to conduct evaluations at the program sub-activity level starting in fiscal year 2009-10. In addition to direct program spending, program sub-activity evaluations include the assessment of transfer payment programs. The next planned evaluation of the Innovation program sub-activity (which includes the AIF) is 2013-14.

Name of Transfer Payment Program: Business Development Program – Voted

Start Date: July 25, 1995

End Date: Ongoing

Description:
Through its Business Development Program (BDP), ACOA works to create opportunities for economic growth in Atlantic Canada by helping small and medium-sized enterprises (SMEs) become more competitive, innovative and productive by working with communities to develop and diversify local economies and by championing the strengths of the region in partnership with Atlantic Canadians.

Strategic Outcome: A competitive Atlantic Canadian economy

Results Achieved:
During 2010-11, to improve productivity and preserve long-term employment prospects, the BDP invested in 27 projects to establish new businesses, 146 projects to help companies expand and/or modernize their facilities, and 64 innovation projects. This program continues to focus on innovation, skills development and trade activities to enhance the business environment in Atlantic Canada. The program serves to fill gaps in the financing continuum for SMEs and entrepreneurs in Atlantic Canada.

The BDP also invested more than $25 million in community development projects in 2010-11. These projects improved community capacity to identify economic development needs and opportunities, ensured that Atlantic Canada businesses had access to capital as well as business information and counselling, and improved community capacity to address economic and business development needs and opportunities. More information on the BDP can be found on ACOA's website.

Comments on Variances:
An additional $32.8 million was made available for the BDP during the year due to an increased demand for programming. This provided funding to SMEs facing challenges during the current economic downturn and for the funding of initiatives in communities.

Audit Completed or Planned:

• Completed
  • Follow-up on the 2006-07 Audit of the Business Development Program, completed February 2011
  • Audit of Due Diligence in the Business Development Program, completed February 2011
  • Audit of Advance Management, completed March 2011
  • Audit of Due Diligence in the Delivery of the Economic Action Plan (Recreational Infrastructure Canada program and Canada Adjustment Fund), completed July 2011
• In Progress
  • Audit of Post-Payment Verification, estimated completion was July 2011
• Planned (for 2011-12)
  • Audit of Business Development Program – Monitoring of Commercial Projects, estimated completion December 2011
  • Follow up of Audit of Trade and Investment, estimated completion December 2011
  • Audit of Due Diligence – Non-Commercial Projects, estimated completion March 2012
  • Audit of Management of Provisionally Repayable Contributions, estimated completion March 2012

Evaluation Completed or Planned:
Following the introduction of the Program Activity Architecture (PAA), the Agency began to conduct evaluations at the program sub-activity level starting in fiscal year 2009-10. In addition to direct program spending, program sub-activity evaluations include the assessment of transfer payment programs. Evaluations completed or in progress related to the Business Development Program include:

• Evaluation of the Financing Continuum Program Sub-activity, completed September 2010
• Evaluation of the Trade and Investment Program Sub-activity, completed September 2010
• Evaluation of the Entrepreneurship and Business Skills Development Program Sub-activity, completed September 2010
• Evaluation of Business Skills Development, completed June 2011
• Evaluation of the Policy, Advocacy and Coordination Program Sub-activities, estimated completion date of October 2011

Name of Transfer Payment Program: Community Futures Program – Voted

Start Date: May 18, 1995

End Date: Ongoing (renewed on an ongoing basis as of October 2011)

Description:
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 (i.e. Community Business Development Corporations in Atlantic Canada), enabling them, in collaboration with other partners and stakeholders, to assess their respective situation and develop strategies to meet their needs. The CF Program also provides support to small and medium-sized enterprises and social enterprises for undertaking appropriate community economic development initiatives.

Strategic Outcome: A competitive Atlantic Canadian economy

Results Achieved:
In 2010-11, Community Business Development Corporations (CBDCs) continued to achieve sustainable solutions for their economic need by approving 1,121 loans that represent an investment of $52.5 million and 954 new jobs in rural communities in the Atlantic region. The CBDCs also provided 7,844 counselling sessions to clients throughout the region. The Agency provides other support by using various funding programs to respond to the need for building community economic development capacity and identifying opportunities, which includes regional strategic planning.

Comment on Variance:
The variance between planned spending and actual spending occurred because the incremental funding for the CF Treasury Board Submission was approved in September 2010, which affected the normal budgeting cycle. Additional funding was subsequently received.

Audit Completed or Planned:

• Completed
  • Follow-up on the 2006-07 Audit of Community Development, completed November 2010
  • Audit of Advance Management, completed March 2011
• In Progress
  • Audit of Post-Payment Verification, estimated completion was July 2011
• Planned (for 2011-12)
  • Follow-up of Audit of Community Futures, estimated completion December 2011

Evaluation Completed or Planned:
Following the introduction of the Program Activity Architecture (PAA), the Agency began to conduct evaluations at the program sub-activity level starting in fiscal year 2009-10. In addition to direct program spending, program sub-activity evaluations include the assessment of transfer payment programs. The next planned evaluation of the Community-based Business Development program sub-activity (which includes the Community Futures Program) is 2012-13. This evaluation is expected to be completed before June 2014.

Name of Transfer Payment Program: Innovative Communities Fund – Voted

Start Date: April 1, 2005

End Date: Ongoing (renewed as an ongoing program in March 2010)

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

The ICF has three distinct components. The first component, Strategic Community Capacity (SC), is designed to support non-commercial, non-profit strategic initiatives that target the economic development needs of rural communities. The second, Proactive Investments (PI), is intended to stimulate transformative change. This component supports proactive identification and implementation of strategic opportunities with local partners. The third component, the Community Adjustment Fund (CAF), was a two-year funding initiative ending March 31, 2011, that was part of Canada’s Economic Action Plan (CEAP). CAF was put in place by the Government of Canada to provide economic stimulus to mitigate the short-term impacts of the economic downturn; it created employment opportunities and addressed transitional and adjustment challenges in restructuring communities. In Atlantic Canada, ACOA delivered CAF using its existing Innovative Communities Fund (ICF) and Business Development Program.

Strategic Outcome: A competitive Atlantic Canadian economy

Results Achieved:
During fiscal year 2010-11, 159 projects were approved under the ICF, of which 142 were funded under the SC component, 17 under the PI component. Another 20 projects were funded under the CAF component. The 159 projects approved under the original ICF (SC and PI components) had total project costs of $119.4 million, with an ACOA contribution of $45.5 million and dollars leveraged amounting to $73.9 million. The 20 CAF projects had total project costs of $8.1 million, with an ACOA contribution of $3.8 million and dollars leveraged amounting to $4.3 million.

In 2010-11, ACOA continued to work in partnership with communities and stakeholders in strategic investments that focused on infrastructure, capacity building at the community level, and business-sector development. Strategic investments reflect economic development plans and priorities that are elaborated and implemented by communities. The ICF exceeded its annual target for partnership, with a total of 495 collaborators for 308 approved projects.

Comment on Variance:
The variance can be explained by the timing of the program’s renewal and ACOA’s focus on the delivery of initiatives under Canada’s Economic Action Plan, such as the Community Adjustment Fund and Recreational Infrastructure Canada program.

Audit Completed or Planned:

• Completed
  • Follow-up on the 2006-07 Audit of Community Development, completed November 2010
  • Audit of Advance Management, completed March 2011
  • Audit of Due Diligence in the Delivery of the Economic Action Plan (Recreational Infrastructure Canada Program and Canada Adjustment Fund), completed July 2011
• In Progress
  • Audit of Post-Payment Verification, estimated completion was July 2011
• Planned (for 2011-12)
  • Audit of Due Diligence – Non-Commercial Projects, estimated completion March 2012

Evaluation Completed or Planned:
Following the introduction of the Program Activity Architecture (PAA), the Agency began to conduct evaluations at the program sub-activity level starting in fiscal year 2009-10. In addition to direct program spending, program sub-activity evaluations include the assessment of transfer payment programs. The next planned evaluation of the Community Investment program sub-activity (which includes the ICF) is 2012-13.

Name of Transfer Payment Program: Recreational Infrastructure Canada – Voted

Start Date: April 1, 2009

End Date: October 31, 2011

Description:
The Recreational Infrastructure Canada (RInC) program provided $500 million nationally for projects to assist in the rehabilitation of recreational facilities across Canada. The initial end date for the RInC program was March 31, 2011. An extension to the program was announced on December 2, 2010, with a new end date of October 31, 2011.

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

Strategic Outcome: A competitive Atlantic Canadian economy

Results Achieved: ACOA has fully committed its RInC allocation by investing $34.2 million in 230 approved projects across Atlantic Canada. During fiscal year 2010-11, seven projects were approved under RInC, with total projects costs of $1.6 million and dollars leveraged amounting to $1.2 million. Since the beginning of the RInC program, 188 projects were successfully completed by March 31, 2011, and 49 were proposed to be extended to October 31, 2011.

Comment on Variance:
The discrepancy is due to a number of factors, many of which were beyond ACOA’s control, including severe weather conditions and consequent delays to construction schedules. Forty-nine projects were proposed for an extension to October 31, 2011, as per the conditions announced by the Prime Minister in December 2010.

Audit Completed or Planned:

• Completed
  • Audit of Advance Management, completed March 2011
  • Audit of Due Diligence in the Delivery of the Economic Action Plan (Recreational Infrastructure Canada program and Canada Adjustment Fund), completed July 2011
• In Progress
  • Audit of Post-Payment Verification, estimated completion was July 2011
• Planned (for 2011-12)
  •  None

Evaluation Completed or Planned:
Not applicable. There is no evaluation planned for this transfer payment program.

Name of Transfer Payment Program: Saint John Shipyard Adjustment Initiative – Voted

Start Date: May 29, 2003

End Date: May 31, 2011

Description:
The initiative aims to address the economic impact of the lack of manufacturing activities at the site of the former Saint John shipbuilding yard in the province of New Brunswick.

Strategic Outcome: A competitive Atlantic Canadian economy

Results Achieved:
On June 16, 2010, the Minister of ACOA agreed to make changes to the Saint John Shipyard Adjustment Initiative (SJSAI). These modifications allowed for the extension of the project approval date to May 31, 2011, and for project contract payments to be made beyond this date.

On March 4, 2011, the Minister approved a $6.1-million project for Atlantic Wallboard Limited Partnership to install natural gypsum rock crushing equipment at its plant in Saint John. A total of $3 million was committed for the 2010-11 fiscal year, in addition to $3.1 million that will flow in 2011-12.

Comment on Variance:
The client did not proceed with the project, which was expected to flow $10 million during fiscal 2010-11. A replacement project was not approved until late in the year, and only $3 million of the approved project funds were expended during the year. The balance of this project and the remaining initiative funds are expected to flow during 2011-12, with two projects currently under review.

Audit Completed or Planned: None

Evaluation Completed or Planned:
Not applicable. There is no evaluation planned for this transfer payment program.

Name of Transfer Payment Program: Statutory Compensation Payments

Start Date: N/A

End Date: N/A

Description of Transfer Payment Program: Compensation payments in accordance with requirements established by regulations under the Plant Protection Act, and authorized pursuant to the Canadian Food Inspection Agency Act. These payments are to compensate Canadians, in accordance with the appropriate regulations, for plants ordered destroyed for the purpose of disease control.

Strategic Outcome: A safe and sustainable plant and animal resource base.

Results Achieved: 53 Canadians were compensated for plants ordered destroyed.

Comment(s) on Variance(s): Actual compensation payments made to Canadians were only $100,000 less than the amount that was earmarked under Planned Spending.

Audit Completed or Planned: None

Evaluation Completed or Planned: None

Name of Transfer Payment Program: Statutory Compensation Payments

Start Date: N/A

End Date: N/A

Description of Transfer Payment Program: Compensation payments in accordance with requirements established by regulations under the Health of Animals Act and authorized pursuant to the Canadian Food Inspection Agency Act. These payments are to compensate Canadians, in accordance with the appropriate regulations, for animals ordered destroyed for the purpose of disease control.

Strategic Outcome: A safe and sustainable plant and animal resource base.

Results Achieved: 127 Canadians were compensated for animals ordered destroyed.

Comment(s) on Variance(s): Actual compensation payments made to Canadians were $2.2 million higher than the $0.7 million that was earmarked under Planned Spending. This increase is largely attributed to Avian Influenza ($1.2M) and Chronic Wasting Disease ($0.7M).

Audit Completed or Planned: None

Evaluation Completed or Planned: None

Name of Transfer Payment Program: Canada Arts Presentation Fund

Start Date: 2001–02

End Date: 2014–15

Description: The Canada Arts Presentation Fund (CAPF) aims to give Canadians direct access to a variety of professional artistic experiences in their communities. It provides financial assistance to Canadian not-for-profit organizations that professionally present arts festivals or performing arts series, as well as their support organizations. The CAPF also supports the emergence of presenters and presenter support organizations for under-served communities or artistic practices. The expected result is that more Canadians, from all regions, experience and value professional artistic experiences.

Strategic Outcome: Canadian artistic expressions and cultural content are created and accessible at home and abroad.

Results Achieved: The CAPF has provided access for Canadians to a wide variety of professional artistic experiences in their communities. In recent years, CAPF recipients have reported an annual total attendance of more than 20 million. In 2010-11, funded organizations presented a variety of disciplines: music (75% of all funded organizations present music as part of their activities); dance (49%); theatre (49%); visual arts (26%); literature (14%); and media arts (17%).

The CAPF has helped organizations expand and diversify their audiences. The percentages of funded organizations that reach out to a variety of audiences in underserved communities are: 64% for culturally diverse audiences, 72% for young audiences, 32% for Aboriginal audiences, 40% for rural/remote regions and 35 % for official language minorities.

The following two examples illustrate results achieved by organizations and activities funded by CAPF in 2010-11:

Labrador Creative Arts Festival (Newfoundland)
The Labrador Creative Arts Festival is an annual, multi-disciplinary, week-long festival presented in Goose Bay, Newfoundland. The festival estimated 1,500 participants in 2010-11.The Festival's mandate is to provide young audiences from rural and remote Labrador, including aboriginal students, with arts experiences that are not otherwise available in the region. The Festival also allows Aboriginal youth to participate in a performing arts apprenticeship program through a partnership with the Ross Creek Centre for the Arts in Nova Scotia. The 2010 Festival explored the theme of Flight in relation to the history and cultural development of Labrador. In 2010-11, the CAPF awarded $20,000 over two years for the 2010 and 2011 editions of the festival, including $10,000 in community engagement funding.

Festival du Voyageur (Manitoba)
The Festival du Voyageur is a culture, arts and heritage festival that celebrates the culture and heritage of the Manitoba Francophone community with cultural activities like popular, folk and traditional performances. The festival expected 103,000 participants in 2010-11. The Festival du Voyageur unifies its community and is internationally renowned for its unique historic and cultural experiences. Festival activities are geared to a variety of demographic groups and contribute to audience development, thanks to numerous community partnerships and a school-based program that attracts more than 10,000 students per year. In 2010–11, the CAPF made an investment of $199,000 over two years for the 2010 and 2011 festivals, including $90,000 for community engagement.

Output
In fiscal year 2010-11, the program provided funding to 268 festivals (45%), 246 performing arts series presenters (42%), as well as 49 organizations presenting both a series and a festival (8%), and 29 presenter support organizations (5%). A total of 592 projects in 245 communities were supported through grants and contributions provided by CAPF in 2010-11.

Comment(s) on Variance(s):

Overall variance of $1.5M is explained as follows:

• $0.1M was transferred to the Canada Council for the Arts.
• $0.3M was transferred to the National Art Centre.
• $1.1M was transferred to other departmental programs to adjust for emerging priorities.

Audit Completed or Planned:

No projects were completed or planned for the 2010-11 reporting period.

Evaluation Completed or Planned:

No projects were completed or planned for the 2010-11 reporting period.

Name of Transfer Payment Program: Canada Cultural Spaces Fund

Start Date: 2001–02

End Date: 2014–15

Description: The Canada Cultural Spaces Fund (CCSF) seeks to contribute to the improvement of physical conditions for arts and heritage related creation, presentation, preservation and exhibition; and to increase and improve access for Canadians to performing arts, visual arts, media arts, and to museum collections and heritage displays. To achieve these objectives, the CCSF provides financial assistance to Canadian not-for-profit arts and heritage organizations for construction/renovation projects, specialized equipment purchases and/or feasibility studies for cultural infrastructure projects. The expected result is that Canadians in all regions have access to arts and heritage spaces for creation, presentation, preservation and/or exhibition.

Strategic Outcome: Canadian artistic expressions and cultural content are created and accessible at home and abroad.

Results Achieved: Since its inception in 2001-02, the CCSF program has contributed to 925 projects, in more than 295 communities across Canada through contributions totaling $283,659,830. In 2010-11, the second year of Canada’s Economic Action Plan (EAP), the CCSF program contributed to 64 infrastructure improvement projects across the country. These included funding to 27 construction and major renovation projects; 31 projects devoted specifically to the purchase and installation of specialized equipment; and 6 projects that assisted organizations with the costs of feasibility studies for cultural infrastructure projects, with a total of $16,861,014 awarded in 2010-11. 

These projects improve infrastructure to allow for greater access for Canadians to arts and heritage spaces. For instance, a $1.6 million contribution from CCSF was approved in 2010-11 to support the construction of a Discovery Centre both for the Upper Canada Village, a living pioneer village, and the adjoining Crysler’s Farm, a National Historic Site in Ontario. The new facility will provide space for year-round interactive exhibits, including a rotating display of some 7,000 artifacts, as well as a multi-purpose space for augmenting program activities, festivals and events. The project will provide Canadians increased access to arts and heritage spaces for creation, presentation, conservation and exhibition activities.

Also in 2010-11, CCSF provided assistance to the Musée de la Mer located in the Magdalen Islands in the Gulf of St Lawrence. CCSF contributed $273,000 to support major renovations and expansion of the Museum. This project involves bringing the existing building up to current safety standards, optimizing the entrance conditions and adding additional exhibition spaces. This project will increase and improve access for Canadians to museum collections, arts and heritage displays.

Comment(s) on Variance(s):

Overall variance of ($1.2M) is explained as follows:

• $1.4M was transferred from other departmental programs to adjust for emerging priorities.
• Year-end surplus of $0.2M.

Audit Completed or Planned:

No projects were completed or planned for the 2010-11 reporting period.

Evaluation Completed or Planned:

No projects were completed or planned for the 2010-11 reporting period.

Name of Transfer Payment Program: Canada Cultural Investment Fund

Start Date: 2001–02

End Date:  2014–15

Description:  The Canada Cultural Investment Fund (CCIF) aims to help arts and heritage organizations build and diversify their revenue streams, strengthen their organizational capacity, business skills and competencies, and to assist them in being better rooted and recognized in their communities. This will be achieved through four components: Endowment Incentives, Cultural Capitals of Canada, Strategic Initiatives, and Limited Support to Endangered Arts Organizations. The CCIF provides financial assistance to Canadian not-for-profit organizations in the arts and heritage sectors, foundations, Canadian municipalities, as well as First Nations, Métis, and Inuit equivalent governments. The expected result is to contribute to the long-term organizational, administrative and financial health of Canadian arts and heritage organizations.

Strategic Outcome: Canadian artistic expressions and cultural content are created and accessible at home and abroad

Results Achieved: The CCIF encourages leadership, high standards of entrepreneurial and managerial skills, and the leveraging of a full range of partnerships between Canadians, Canadian businesses, various levels of government and the broader public sector, and communities, to contribute to the long-term sustainability of a healthy, competitive cultural sector that matters to Canadians. Federal investment through CCIF is delivered mainly through the Endowment Incentives component, Cultural Capitals of Canada and Strategic Initiatives (launched in 2010).

The following are highlights of results achieved by the CCIF in 2010-11 based on key performance indicators.

Strategic Initiatives
2010-11 marked the launch of the new Strategic Initiatives component which aims to encourage cultural organizations to work with one another as well as partners from various other sectors in order to become better rooted in their communities. Working together, cultural organizations and their partners pool knowledge and resources so that they are better equipped to strengthen management practices, can make strategic use of new technologies and can succeed with their revenue diversification goals. 

During the first intake in 2010-11, 83* organizations formed various partnerships and shared resources, including financial investments and professional expertise, to undertake 15 strategic initiatives. Over 70% of these organizations had never worked together before. Partners were from a number of sectors including: the private sector such as Sun Life Financial, the Power Corporation of Canada and The Globe and Mail; universities such as the University of Alberta and the University of Ottawa; Crown corporations such as the CBC/Radio-Canada and the Canada Council for the Arts; various levels of government and a number of other not-for-profit organizations such as the Guelph Jazz Festival, Les Arts et la Ville and the Dawson City Arts Festival.

To successfully undertake the 15 projects, organizations developed a number of activities and tools, the majority of which were aimed at improving financial self-sufficiency, developing markets and making strategic use of new technologies. Projects included cross-promotional marketing campaigns, the development of Smartphone applications, leadership development programs and workshops, online tools and a business-arts prize. According to applicants, it is anticipated that the 15 strategic initiatives will have a direct impact on over 3000 organizations.

The total amount CCIF has committed to invest in these projects is close to $3 million; which represents only 21% of the total cost for undertaking such initiatives. This means that for every one dollar invested by the CCIF, close to $4 came from a combination of the lead applicant’s investment and partners within their community.

Endowment Incentives
The Endowment Incentives component of the CCIF aims to incent private sector donations to well-managed arts organizations by providing matching funds to these organizations’ endowment funds. To have the most significant impact and respond to Canadians’ desire to strongly invest in arts organizations’ endowment funds, this year, the program invested a new high of $18.9 million in matching grants. This means that for every dollar donated by Canadians, Canadian businesses, non-government foundations and arts organizations, the program invested $0.71.

In 2010-11, through the CCIF Endowment Incentives application process, Canadians donated close to $26.6 million to 85 endowment funds, a 26.9% increase from the previous year. Of this amount, nearly half (50% or $13.4 million) was donated by individuals while corporations and non-government foundations donated 12% ($3.3 million) and 19% ($5.1 million) respectively – the remainder came from other sources. This significant financial commitment is a clear indication that Canadians and arts organizations continue to believe in the value of endowments.

Since the launch of Endowment Incentives, the federal government’s contribution of $122 million has leveraged close to $176 million in donations from the private sector, for a total combined investment of $298 million in arts organizations’ endowment funds across Canada.

Cultural Capitals of Canada
Cultural Capitals of Canada (CCC) recognizes and supports Canadian communities that have a record of harnessing the many benefits of arts and culture in community life. Its objective is to stimulate sustained community support for the arts and heritage. 

In 2010-11, eleven communities submitted applications for the 2011 CCC Awards. Of these, three were awarded a designation, for a total of $3,250,000 in approved contributions. The 2011 Cultural Capitals of Canada are: Lévis, Quebec; Vancouver, British Columbia; and Charlottetown, Prince Edward Island.

Over 50 partner organizations within these communities have committed to assist their municipality in undertaking arts and culture activities during the year of designation. Similar to last year, this year’s partners include: private sector organizations, post-secondary institutions; arts and culture organizations; economic development associations, as well as local Aboriginal, culturally diverse and official language minority communities. Heritage exhibits and festivals, multi-media and theatre productions, public art programs, workshops and cultural planning tools are among those activities that are being funded; close to 70% of these activities are new and a direct result of the CCC designation. Over 36% of these activities are intended to leave a lasting legacy in the designated communities.
The application process alone brought together over 200 partners within applicant communities to develop proposals.

Since 2002-03, 152 eligible applications have been submitted to the program and 40 CCC designations have been awarded, for a total of $29.45million in approved contributions.

Output
Through its various components, CCIF approved 90 grants and 13 contributions for a total of $25,046,066 awarded, in 2010-11.

Comment(s) on Variance(s):

Overall variance of $0.3M is explained as follows:

• Transfers to other departmental programs to adjust for emerging priorities.

Audit Completed or Planned:

No projects were completed or planned for the 2010-11 reporting period.

Evaluation Completed or Planned:

No projects were completed or planned for the 2010-11 reporting period.

Name of Transfer Payment Program:Canada Arts Training Fund

Start Date: 1997-98

End Date: 2012–13

Description: The Canada Arts Training Fund (CATF) aims to contribute to the development of Canadian creators and future cultural leaders of the Canadian arts sector by supporting the training of artists with high potential through institutions that offer training of the highest calibre. It provides financial assistance to independent professional Canadian not-for-profit institutions that specialize in providing focused, intensive and practice-based studies. These schools provide professional training at the highest level in disciplines such as ballet, contemporary dance, theatre, circus arts, Aboriginal and culturally diverse art forms, musical performance (opera, orchestral), etc. The expected result is that Canadians and the world benefit from high-quality artistic achievements by Canadian artists trained in Canada.

Strategic Outcome: Canadian artistic expressions and cultural content are created and accessible at home and abroad

Results Achieved: Since the inception of the program, from 1997-98 through 2010-11, the CATF has disbursed a total of $208,415,992 in operating funding to national arts training schools in a range of disciplines. In 2010-11, the program supported 39 organizations specializing in a wide variety of artistic disciplines and awarded a total of $22,270,000 in contributions.

In 2010-11, Canada’s Economic Action Plan provided 35 funded organizations with an additional $12 million in stimulus support to enable increased long-term competitiveness and stability as well as capacity to deliver expected results.

A summative evaluation of the CATF, completed in March 2007, identified a need for continued federal support in national arts training and that the program is meeting its overall objective to provide arts training of the highest calibre across Canada. The CATF’s ultimate outcome; that Canadians and the world benefit from high-quality artistic achievements by Canadian artists trained in Canada; was also substantiated by the evaluation. It indicated that the program had an “invaluable” and “significant” impact on Canadians’ access to high quality artistic and cultural products. The evaluation also noted that graduates of CATF-funded schools were more likely to earn a living wholly by the practice of their art within three years, as compared to peers from unfunded schools, who were more likely to seek work unrelated to their art.

One of CATF’s expected results is that graduates of funded institutions have professional careers and are recognized for their excellence in Canada and internationally. Annual surveys of these institutions indicate that there are approximately 1,300 graduates per year and that another 2,300 participate in shorter-term workshops. Over 80% of these individuals are working professionally, of whom 20% also work internationally. The surveys show that nearly 50% of graduates of CATF-funded institutions receive an award in their first three years after graduation. The summative evaluation revealed that they are more likely to receive honours, distinctions and awards than graduates of unfunded institutions. 

Comment(s) on Variance(s):

Overall variance of $0.5M is explained as follows:

Audit Completed or Planned:

No projects were completed or planned for the 2010-11 reporting period.

Evaluation Completed or Planned:

No projects were completed or planned for the 2010-11 reporting period.

Name of Transfer Payment Program: Canada Periodical Fund⁹

Start Date: 2010-11

End Date:  N/A

Description:  The objective of the Canada Periodical Fund (CPF) is to ensure that Canadians have access to diverse Canadian magazines and non-daily newspapers. It is delivered through three components:

1) Aid to Publishers provides formula funding to Canadian magazines and non-daily newspapers for publishing activities, such as distribution, content creation, online activities and business development.

2) Business Innovation provides project funding to print and online magazines for business development and innovation.

Strategic Outcome: Canadian artistic expressions and cultural content are created and accessible at home and abroad

Results Achieved: In 2010-11, the CPF helped to further the Department’s goal of supporting the creation and dissemination of Canadian cultural content through:

Output
Funding delivered through 961 grants and 38 contributions, including projects from the Business Innovation and Collective Initiatives components.

In 2010-11:

• 1. The Aid to Publishers component provided funding to 928 periodicals, including 485 magazines and 443 non-daily newspapers. Of these 928 publications, 683 were English, 185 were French, and the remainder were bilingual or in other languages. This included support to 10 Aboriginal publications, 58 ethnocultural, and 27 minority official language publications. 
  
• 2. and 3. The program does not have information on the profit margin of publishers or the total number of copies distributed for this year. An accelerated application process was put in place to avoid a gap in funding after the end of the previous periodical support programs and this process led to less information being collected by the program. Information on profit margin and total number of copies distributed will be available for future years.

Comment(s) on Variance(s):

Overall variance of $2.1M is explained as follows:

• $1.7M was transferred to other departmental programs to adjust for emerging priorities.
• Year-end surplus of $0.4M.

Audit Completed or Planned:

No projects were completed or planned for the 2010-11 reporting period.

Evaluation Completed or Planned:

No projects were completed or planned for the 2010-11 reporting period.

Name of Transfer Payment Program: Canada Book Fund

Start Date: 2010-11

End Date: 2014-15

Description:  The Canada Book Fund (CBF) supports the activities of Canadian book publishers and other sectors of the book industry to ensure access to a broad range of Canadian-authored books. This support is delivered through two components: 1) Support for Publishers (SFP), which helps to ensure the sustainable production and marketing of Canadian-authored books by offsetting the high costs of publishing in Canada and building the capacity and competitiveness of the sector (the bulk of SFP support is distributed through a sales-based funding formula that rewards publishers’ success in delivering content to consumers); and 2) Support for Organizations, which helps to develop the Canadian book industry and the market for its products by assisting industry associations and related organizations to undertake collective projects offering a broad benefit to the industry and, ultimately, to readers everywhere.

Strategic Outcome: Canadian artistic expressions and cultural content are created and accessible at home and abroad

Results Achieved: In 2010-11, the CBF helped to further the Department’s goal of supporting the creation and dissemination of Canadian cultural content through:

Output:

• Over 350 contributions and grants. These funds helped some 300 business and non-profit organizations in the Canadian book industry to undertake initiatives in publishing, marketing, professional development, technology-driven collective projects and other areas in support of departmental objectives.

In 2010-11:

1. Publishers supported by the CBF produced over 6,500 new Canadian-authored titles (in both physical and digital format) by more than 4,000 Canadian writers and translators, including over 900 first-time authors. 
   
   
2. The CBF continues to support a broad range of industry activities across the country, including the work of 235 Canadian-owned publishers in more than 75 Canadian towns and cities which directly employ close to 3,000 Canadians. Publishers supported by the program realized an aggregate profit margin of 3.9%. These results speak not only to the economic impact of the sector, but also to its strong capacity to continue to deliver a range of Canadian content to consumers everywhere.
   
   
3. Support for a range of collective marketing and technology initiatives, combined with direct support to publishers helped these companies realize almost $335 million in sales of Canadian-authored books in Canada, and over $100 million more abroad for a total of more than $435 million in sales.
   

Comment(s) on Variance(s):

Overall variance of $1.1M is explained as follows:

• Transfers to other departmental programs to adjust for emerging priorities.

Audit Completed or Planned:

No projects were completed or planned for the 2010-11 reporting period.

Evaluation Completed or Planned:

No projects were completed or planned for the 2010-11 reporting period.

Name of Transfer Payment Program: Canada Music Fund

Start Date: 2001-02

End Date: 2014-15

Description:  The Canada Music Fund is the principal means for achieving the goals of the Canadian Sound Recording Policy, ‘From Creators to Audience’, which seeks to: enhance Canadians’ access to a diverse range of Canadian music choices through existing and emerging media, increase the opportunities available for Canadian music artists and entrepreneurs to make a significant contribution to Canadian cultural expression, and ensure that Canadian music artists and entrepreneurs have the means to succeed in a global and digital environment.
It achieves these objectives by providing support to music artists and entrepreneurs for the creation, production, marketing, and distribution of Canadian music. Support is also provided to a range of organizations for activities to develop the industry as a whole. Finally, support is provided for the preservation of Canadian musical sound recordings.

Strategic Outcome: Canadian artistic expressions and cultural content are created and accessible at home and abroad

Results Achieved: In 2010-11, the CMF helped to further the Department’s goal of supporting the creation and dissemination of Canadian cultural content through:

Output:

• contributions to 22 Canadian sound recording firms, 12 Canadian music publishing firms and 2 Canadian music industry associations through the Music Entrepreneur Component (MEC), all administered by Canadian Heritage;
  
  
• five contributions to 3 third-party administrators for the delivery of the New Musical Works and Collective Initiatives (FACTOR and MUSICACTION) and Creators’ Assistance (The SOCAN Foundation) components; and
  
  
• Memoranda of Understanding with Library and Archives Canada which delivers the Canadian Music Memories component.

In 2010-11:

1. The CMF continued to support the production of a diverse range of Canadian musical works by emerging and established artists. The MEC recipients released 144 albums in the past year. The New Musical Works component of the CMF provided production support to 293 albums. The New Musical Works component also provided marketing, touring, or showcasing support to more than 1,000 projects, contributing to the dissemination of, and access to Canadian music.
   
2. MEC recipients reported $29 million in sales of physical formats in 2010, nearly unchanged from the previous year, despite a global trend of declining revenue from sales of music in physical formats. The dollar value of their digital sales increased by 36% to $9.3 million. Total gross revenue reported by MEC recipients rose to almost $82 million, which is an increase of $10 million or 14.5% above the total revenues of the preceding year. In addition to an increased trade in digital music formats, MEC recipients saw a 31% increase in revenue from ancillary activities (i.e. activities other than recording, production and sales of sound recordings). In particular, more record labels are reporting significant income from activities like distribution of music and merchandise, or concert promotion.
   
3. Unit sales of albums by Canadian artists increased again in 2010, as Canadians continued to purchase and access more Canadian music. Almost 27% of albums sold in Canada were by Canadian artists. This continues a ten-year growth trend that began with the inception of CMF in 2001. During the same period, the market share of albums by CMF-supported artists, or artists supported by its predecessor program, increased from under 10% in 2001 to 16% in 2009. 
   
   Overall unit sales of albums (including physical CDs and full-length album downloads) by Canadian artists who received MEC support decreased by 12% from the preceding year.
   
   
   • Sales to the domestic market slowed by less than 10% while international sales declined by 20% during the year. In large part, the decrease in sales of physical albums and full-length album downloads is attributable to a shift in consumption toward the purchase of individual music tracks and streaming music delivery services. Indeed, growth in sales of digital singles has been explosive for several years; total sales of digital singles (including paid streaming) by MEC recipients has tripled in just two years, growing from 4.3 million tracks in 2008 to over 13 million tracks in 2010.
     
   • Downloaded music, not including streams, (albums and track equivalent albums) accounted for about 750,000 units, or more than 27% of MEC recipients' total Canadian-artist music sales in 2010, up from 20% two years earlier. Digital music streaming, grew by 450% between 2009 and 2010, however this format still represents a negligible revenue stream for record labels.

Comment(s) on Variance(s): N/A

Audit Completed or Planned:

No projects were completed or planned for the 2010-11 reporting period.

Evaluation Completed or Planned:

No projects were completed or planned for the 2010-11 reporting period.

Name of Transfer Payment Program: Canada Media Fund¹⁸

Start Date: 2010-11

End Date: Ongoing 

Description: The Canada Media Fund (CMF), a public/private partnership, provides funding for the creation of television convergent digital content in both official languages and leading-edge non-linear content and applications designed for distribution on multiple platforms (e.g. television broadcast, the Internet, and/or mobile phones). The CMF focuses investments on the creation of content Canadians want and harnesses the opportunities provided by new technologies to deliver the content to Canadians where and when they want it. Organizations supported by the CMF include, but are not limited to, Canadian television and interactive production companies, broadcasters, broadcast distribution undertakings, Internet service providers and mobile communications operators. Canadians as consumers of convergent programs and creators of leading-edge content and applications represent to ultimate target group. Aboriginal communities and francophones in minority language communities are also targeted by specific production envelopes.

Strategic Outcome: Canadian artistic expressions and cultural content are created and accessible at home and abroad

Results Achieved:
In 2010-11, the CMF invested $337 million in Canadian content creation, generating over 2,400 hours of new Canadian programming.*

This funding is broken down as follows:

• In the Convergent Stream of the program, 444 projects in production, totalling 2,491 production hours and $288 million; 308 projects in development totalling 1,685 hours and $13 million. CMF contributed a further $9 million to dual-year projects. CMF commitments in the Experimental Stream, including 78 projects, totalling $27 million.
  
  
• Audience share for CMF-funded television productions as a percentage of total audiences, by genre and by language (due to differences between the broadcast year and the program’s fiscal year, the most recent audience data available is from 2008-09. Audience data from 2009-10 will not be available until the program publishes its 2010-11 annual report):

English market (total hours tuned of Canadian Television Funds-funded shows in comparison to all other Canadian and foreign programming)

• Total  48%
• Drama  27%
• Children’s and Youth  9%
• Documentary  10%
• Variety and Performing Arts  2%

French market (total hours tuned of CTF-funded shows in comparison to all other Canadian and foreign programming)

• Total  46%
• Drama  23%
• Children’s and Youth  5%
• Documentary  15%
• Variety and Performing Arts  3%

Number of users of digital convergent content from platforms other than television: user data would not be available until the release of the program’s next CMF annual report in October 2011.

Comment(s) on Variance(s): N/A

Audit Completed or Planned:

No projects were completed or planned for the 2010-11 reporting period.

Evaluation Completed or Planned:

No projects were completed or planned for the 2010-11 reporting period.

Name of Transfer Payment Program: Canada Interactive Fund²¹

Start Date: 2010-11

End Date: 2014-15

Description: The Canada Interactive Fund (CIF) provides funding for the creation of online Canadian content developed by Official Language Minority Community (OLMC), Aboriginal, ethnocultural and other not-for-profit cultural organizations by focusing on the creation of interactive cultural products and applications. Examples of projects supported under the CIF could be where not-for-profit cultural organization partners with a targeted community to develop a living history of a community which combines a blog, an interactive timeline, community photos and stories of individual members. As Canadians increasingly adopt new technologies, the CIF is needed to ensure that OLMC, Aboriginal, ethnocultural and other not-for-profit cultural organizations contribute to leading-edge content online. This will complement action the Government has taken to update cultural programs, in particular the CMF which ensures the for-profit sector to create and distribute Canadian programming on multiple platforms.

Strategic Outcome: Canadian artistic expressions and cultural content are created and accessible at home and abroad

Results Achieved: In 2010-11, 34 contribution agreements were signed for a total dollar value awarded of $7.6M. As this is the first year of the CIF, no projects have been completed yet, but will be in 2011-12.

Comment(s) on Variance(s):

Overall variance of $5.0M is explained as follows:

• $4.4M was approved to be transferred for use in the next fiscal period (2011-12).
• Year-end surplus of $0.6M.

Audit Completed or Planned:

No projects were completed or planned for the 2010-11 reporting period.

Evaluation Completed or Planned:

No projects were completed or planned for the 2010-11 reporting period.

Name of Transfer Payment Program: TV5

Start Date: 1990-91

End Date: 2012-13

Description: The international French-language TV channel TV5 is a partnership made up of France, Belgium’s Francophone community, Switzerland, Canada and Quebec. The department of Canadian Heritage provides annual funding to the channel (single-recipient program) through a contribution agreement to TV5 Québec Canada and a grant to TV5MONDE. Funding from Canadian Heritage and the province of Quebec enables Canadian productions to be presented in Canada and abroad; and provides Canadians with an additional French-language channel that allows them to become familiar with the many diverse cultures that make up the international Francophonie. TV5 enriches Francophone programming across the country and provides outlets for Francophone productions from every region of Canada. Canada's contribution to TV5 makes it possible to offer all Canadians a window on the Francophonie.

Strategic Outcome: Canadian artistic expressions are cultural content are created and accessible at home and abroad

Results Achieved:

• This year, the percentage of Canadian programming broadcast on TV5MONDE increased from an average of around 7.0 % in 2009 to around 9.0 % in 2010. The number of households around the world where TV5MONDE’s signals were broadcast also increased by 3.9%. This enabled it to showcase a greater amount of Canadian content to a larger number of households on the international stage (215 million households).
  
  
• TV5 Québec Canada’s broadcasting included an important component of programming from TV5’s European and African partners not available on other Canadian French-language networks. These programs provide Canadians access to content from the international and culturally diverse Francophonie. Around 21.0% of Canadian content was broadcast on the network, which included programming from producers outside Quebec as specific efforts were directed at fostering creation from these areas. Canadians had better access to the cultural vitality of Canada’s Francophonie.
  
  
  • Despite strong competition which led to a more fragmented market for broadcasters, TV5 Québec Canada’s efforts at attracting new viewers were reflected in its positive market share results (data available in Quebec only) which steadily increased in the autumn of 2010 from 1.1 % (1.3% in prime time hours) to reach an average of 1.4 % (1.7 % in prime time hours) in the winter-spring portion of 2011.
    
    
  • TV5 Québec Canada's subscribers remained stable, reaching close to 7 million subscribers in Canada in 2010-11.
• Offering Canadians access to the wealth and diversity of the international Francophonie, including Canadian content, requires competing in a broadcasting environment where new digital platforms are key to attracting new viewers and maintaining the existing base of viewership. Thus, in 2010-11, TV5MONDE and TV5 Québec Canada further pursued efforts to position themselves favourably and compete as a global media network.
  
  
  • TV5MONDE launched TV5MONDE+ Afrique (WebTV focused on Africa), continued to develop its video-on-demand and catch-up TV components, various iPad/IPhone applications, its Web site and tools to learn French, launched new programming, and increased its visibility and communication efforts while it maintained an ever-growing presence on social networks.
    
  • TV5 Québec Canada continued to create new micro sites linked with its programming, launched a virtual newsroom and once again supported digital creation in Canada through the « Fonds TV5 pour la création numérique » in which interest continues to increase. Furthermore, the monthly average of visits to its Web site TV5.ca climbed from 88,000 in 2008-09 to 122,000 in 2009-10 and 162,000 in 2010-11. It also continues to have an active and growing presence on social networks.

Comment(s) on Variance(s):

Overall variance of $0.3M is explained as follows:

• Transfers to other departmental programs to adjust for emerging priorities.

Audit Completed or Planned:

No projects were completed or planned for the 2010-11 reporting period.

Evaluation Completed or Planned:

No projects were completed or planned for the 2010-11 reporting period.

Name of Transfer Payment Program: Museums Assistance Program

Start Date: 1972-73

End Date: 2010-11

Description: The Museums Assistance Program (MAP) supports museums in their effort to reach audiences and care for their collections by providing grants and contributions to Canadian museums and related organizations for eligible projects which aim to develop and circulate travelling exhibitions across different regions of Canada, to preserve and present Aboriginal heritage, and to enhance professional excellence in the management of key museological functions, including projects submitted under the Canada-France Agreement.

Strategic Outcome: Canadian artistic expressions and cultural content are created and accessible at home and abroad

Results Achieved:

In 2010-11, MAP assessed 178 applications and funded a total of 147 projects, of which 92 were new projects and 55 were multi-year projects initiated in previous years

• 66 projects helped heritage institutions and heritage workers improve key museological knowledge, skills and practices.
• 56 projects created opportunities for Canadians to access our heritage by supporting the production and circulation of domestic travelling exhibitions and associated interpretive material; and 
• 25 projects supported the preservation and presentation of Aboriginal cultural heritage.

Comment(s) on Variance(s):

Overall variance of $0.4M is explained as follows:

• $0.4M was transferred to other departmental programs to adjust for emerging priorities.
• Year-end surplus of $0.8M.

Audit Completed or Planned:

No projects were completed or planned for the 2010-11 reporting period.

Evaluation Completed or Planned:

No projects were completed or planned for the 2010-11 reporting period.

Name of Transfer Payment Program: Celebration and Commemoration Program

Start Date: 2008-09

End Date: 2011-12 

Description: The Celebration and Commemoration Program aims to support or create opportunities for Canadians to celebrate/commemorate their history, diversity and achievements through a two fold approach that includes the Celebrate Canada 11-day period culminating on July 1st with Canada Day celebrations and a five-year plan which is a theme-based dynamic approach to celebrating and commemorating significant people, places, symbols, anniversaries and events. These activities are delivered in collaboration with other federal departments, agencies, regions, partners and stakeholders. The Program provides opportunities to bring Canadians together in their communities to discover and appreciate the richness and diversity of Canadian society and to show their sense of belonging to Canada and pride in being Canadian.

Strategic Outcome: Canadians share, express and appreciate their Canadian identity

Results Achieved: Celebrate Canada supported 1872 projects in 2010 providing approximately 9 million Canadians the opportunity to participate in over 3,000 community events across Canada celebrating one or more of the days in the Celebrate Canada period from June 21 through July 1 (National Aboriginal Day, Saint-Jean Baptiste Day, Canadian Multiculturalism Day, and Canada Day).

The Canada Day youth outreach initiative, the Canada Day Poster Challenge, resulted in 10,000 entries from children and youth, aged 5 to 18, creatively expressing the theme ‘My Canada is…”. The original artwork of the thirteen provincial/territorial winning posters was displayed at the Canadian Children’s Museum in Gatineau from June 21st through Fall 2010.

Commemorate Canada provides opportunities for Canadians to commemorate significant national events or people and fosters pride and a sense of belonging to Canada. Support to the ‘Memory Project: Stories of the Second World War’ project resulted in 462,000 unique visitors to the web site to date. The ‘Membertou: Building a Nation’ event drew more than 80,000 participants and another 12,000 unique visits to their web site. Support to new projects such as the Canadian Fallen Firefighters Memorial and projects related to the commemoration of the War of 1812 were also a focus in 2010.

The Program’s Interdepartmental Commemorations Committee (ICC) met bi-annually in 2010 bringing together representatives from 27 federal departments and agencies to share information on commemoration activities and to ensure a coordinated federal approach to commemorations.

The ICC working group for the War of 1812 Bicentennial is composed of representatives from 14 federal departments and they met 4 times. The advisory committee for the Queen’s Diamond Jubilee in 2012 also met 4 times. These sub-committees continue to meet and provide strategic advice and direction for these two high-profile commemoration initiatives.

Comment(s) on Variance(s):

Overall variance of $1.2M is explained as follows:

• $0.8M was transferred to other departmental programs to adjust for emerging priorities.
• Year-end surplus of $0.4M due to unforeseen delays in project implementation.

Audit Completed or Planned:

No projects were completed or planned for the 2010-11 reporting period.

Evaluation Completed or Planned:

No projects were completed or planned for the 2010-11 reporting period.

Name of Transfer Payment Program: Exchanges Canada Program

Start Date: 2000-01

End Date: No end date. The program is ongoing, but subject to evaluation every 5 years.

Description: The Exchanges Canada Program supports youth participation initiatives that allow young Canadians across the country to learn about Canada, create linkages with each other and better appreciate the diversity and common aspects of the Canadian reality. The Program has two main components: Youth Exchanges Canada and Youth Forums Canada. The Program works with non-profit delivery organizations to provide young Canadians with a range of exchange and forum activities that enable them to experience Canada's cultural, geographical and linguistic diversity; build their knowledge of Canada; and develop their Canadian identity and sense of belonging to Canada.

Strategic Outcome: Canadians share, express and appreciate their Canadian identity

Results Achieved:

• The Exchanges Canada Program offered opportunities to approximately 12,800 youth³⁰ to enhance their knowledge and understanding of Canada; to create linkages with one another; and to enhance their appreciation of the diversity and shared aspects of the Canadian experience. Through participation in forums and group exchanges, youth were enabled to learn about Canada, its history, geography, industry, institutions, communities, cultures, and languages and to connect with other youth. For example, 83% of youth agreed that as a result of their participation in the Program they learned new things about Canada; 87% agreed that they learned about Canadian cultural communities other than their own; and 94% indicated that their participation in the Program resulted in new ties with people from other communities³¹.
  
  
• Support was provided to youth exchanges and forums through 22 contribution agreements with non-governmental organizations. Furthermore, the Program launched the Information Video Series in 2010-11on its website to provide information on opportunities for youth exchanges in Canada to potential youth participants, their parents and exchanges organizers.

Comment(s) on Variance(s):

Overall variance of ($0.3M) is explained as follows:

• Transfers from other departmental programs to adjust for emerging priorities.

Audit Completed or Planned:

No projects were completed or planned for the 2010-11 reporting period.

Evaluation Completed or Planned:

No projects were completed or planned for the 2010-11 reporting period.

Name of Transfer Payment Program: Katimavik Program

Start Date: 1997-98

End Date:  No end date. The program is ongoing, but subject to evaluation every 5 years.

Description:  The Katimavik Program provides opportunities for young Canadians to discover their country and create ties with communities and with other Canadians. The objectives of the program are to contribute significantly to the personal, social and professional development of the participants; to promote social engagement and community service; and to offer a diverse experience, fostering a better understanding of the Canadian reality. Through complementary six-month programs, comprising community service, training and group interaction, participants aged 17 to 21 are enabled to acquire personal, social and professional skills through participation in community projects in diverse regions of Canada, including French-speaking and English-speaking communities.

Strategic Outcome: Canadians share, express and appreciate their Canadian identity

Results Achieved:

• In 2010-11³⁴, the Katimavik Program provided approximately 600 youth from diverse groups and regions of Canada with opportunities to enhance their appreciation of Canada and its diversity, as well as to develop their personal, social and professional skills through its traditional programming and its four thematic programs: Cultural Discovery and Civic Engagement; Eco-Citizenship and Active Living; Second Language and Cultural Identity; and the North/South Pilot project.
  
  
• The Program carried out projects in approximately 70 communities across Canada, which involved nearly 620 community organizations. Final results are not yet available but the Program is expecting a favourable response from the partner organizations who agreed last year at 90% that the Program has helped them improve their capacity to better serve their community, through projects involving youth volunteers³⁵.
  
  
• The Katimavik Program, delivered by a not-for-profit organization, supports youth leadership and learning development through community service by means of a contribution agreement.