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2008-2009
Reports on Plans and Priorities

Economic Development Agency of Canada for the Regions of Quebec

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The Honourable Jean-Pierre Blackburn
Minister of Labour and Minister of the Economic Development Agency of Canada for the Regions of Quebec

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Table of Contents

1 Overview

1.1 Message from the Minister

1.2 Management representation statement

1.3 Summary information

1.4 Organizational information

1.4.1 Governance structure
1.4.2 Votes and statutory items listed in Main Estimates
1.4.3 Departmental planned spending and full-time equivalents
1.4.4 Agency areas of intervention: Program activities by strategic outcome

2 Agency Priorities and Plans

2.1 Context of Agency intervention

2.1.1 Institutional context: Government priorities
2.1.2 Socio-economic context
2.1.3 Organizational context

2.2 Priorities and plans

2.2.1 Program priorities
2.2.2 Management priorities

3 Analysis of Program Activities by Strategic Outcome

3.1 Strategic outcome #1: Vitality of communities

3.1.1 Program activity: Development of communities
3.1.2 Program activity: Infrastructure
3.1.3 Program activity: Special intervention measures

3.2 Strategic outcome #2: Competitiveness of small- and medium-sized enterprises (SMEs) and regions

3.2.1 Program activity: Competitiveness of enterprises (SMEs)
3.2.2 Program activity: Competitive positioning of regions

3.3 Strategic outcome #3: Policy, representation and cooperation

3.3.1 Program activity: Policies, programs and initiatives

4 Additional Information

4.1 Agency Link to the Government of Canada Outcomes

4.2 Agency's Sustainable Development Strategy (SDS)

4.3 Tables in electronic format posted on the Treasury Board Secretariat Web site

4.3.1 Details on transfer payment programs (grants, contributions and other transfer payments)
4.3.2 Evaluations
4.3.3 Green Procurement
4.3.4 Internal Audits
4.3.5 Services received without charge
4.3.6 Sources of non-respendable revenue

4.4 Performance measurement strategy

4.4.1 Five-year strategy
4.4.2 Continuous improvement

4.5 Agency tools and programs

4.5.1 Agency intervention tools
4.5.2 Agency programs

5 Appendices

5.1 List of acronyms

5.2 Agency Business Offices

1 Overview

1.1 Message from the Minister

Over the past few years, competition from emerging nations, new environmental challenges, the transformation of the global economy, the appreciation of the Canadian dollar and higher energy prices have taken on such proportions that they require unprecedented effort from Quebec's enterprises and regions to adapt to this new reality.

In that context, since 2006, the Government of Canada has implemented numerous initiatives with a view to increasing the collective wealth and taking the country farther along the path to prosperity. Thus, with Advantage Canada, the government adopted a long-term economic and strategic plan aimed at delivering dynamic economic growth and better-paying jobs for Canadians. To achieve these goals, it is important to enhance the business environment and provide enterprises and regions with the means and tools for their development.

In fact, since I took on the duties of Minister of Labour and Minister of the Economic Development Agency of Canada for the Regions of Quebec, I have consulted a large number of economic stakeholders through the advisory committees we have set up in all of Quebec's regions. I have had many opportunities to see that enterprises and the regions constitute an endless source of knowhow, creativity and leadership.

It was to support these regions and enterprises that over the past 18 months I announced initiatives to diversify the economic base and reduce communities' dependency on traditional economic sectors, and to help enterprises improve their competitiveness on foreign markets. It is my intention to continue enhancing the tools that an Agency such as ours can deploy in order to meet the specific challenges of regions and communities with low economic growth, and to support the performance of innovative, competitive SMEs.

In its constant concern to adapt the parameters of its intervention to the needs and issues of the moment, and to institute management more closely based on results, the Agency introduced new programs in April 2007: Community Diversification, Business and Regional Growth, and Regional Development Research.

The Agency will also be changing the way in which it supports non-profit organizations. It will now be favouring ad hoc projects which generate measurable results for the regions of Quebec. This decision could also help free up funding for projects involving, among others, SMEs and community economic facilities.

I invite you to read this new edition of the Report on Plans and Priorities, in which you will see how the Agency counts on the boldness, ingenuity and drive of Quebec's enterprises and regions to meet some major challenges and build a strong economy for current and future generations, and how it plans to support them to that end.

Jean-Pierre Blackburn

Minister of Labour and Minister of the
Economic Development Agency of Canada
for the Regions of Quebec

1.2 Management representation statement

I submit, for tabling in Parliament, the 2008-2009 Report on Plans and Priorities of the Economic Development Agency of Canada for the Regions of Quebec.

This document has been prepared based on the reporting principles contained in the Guide to the Preparation of Part III of the 2008-2009 Estimates: Reports on Plans and Priorities and Departmental Performance Reports:

• It adheres to the specific reporting requirements outlined in the Treasury Board of Canada Secretariat guidance.
• It is based on the Agency's strategic outcomes and program activities that were approved by the Treasury Board.
• It presents consistent, comprehensive, balanced, and reliable information.
• It provides a basis of accountability for the results achieved with the resources and authorities entrusted to it.
• It reports finances based on approved planned spending numbers from the Treasury Board of Canada Secretariat.

 

Guy Mc Kenzie
Deputy Minister/President

Date: February 7, 2008

1.3 Summary information

1.4 Organizational information

1.4.1 Governance structure

Economic Development Agency of Canada for the Regions of Quebec
— Organization chart¹ —

Notes:
1 A more detailed organization chart is available on the Agency's Web site at:
www.dec-ced.gc.ca/asp/APropos/Organigramme.asp?LANG=EN
2 FTE: Full-time equivalent.

The President of the Agency acts as the deputy of the Minister. He has primary accountability for the Agency's three strategic outcomes. More specifically, the Vice-President, Operations has primary responsibility for the first and second strategic outcomes, Vitality of communities and Competitiveness of small- and medium-sized enterprises (SMEs) and regions. The Vice-President, Policy and Planning is responsible for guiding and providing a framework for Agency intervention for these first two strategic outcomes, and has primary responsibility for the third strategic outcome, Policy, representation and cooperation.

1.4.2 Votes and statutory items listed in Main Estimates

The following table reproduces the data in the 2008-2009 Main Estimates as tabled in Parliament. Parliament approves the votes each year, and the statutory items are presented for information only.

Notes:
1 The 2008-2009 Main Estimates of $287.4 million are $107.3 million lower than the 2007-2008 Main Estimates. This net difference is primarily due to a decrease in the amounts allocated for the Infrastructure Program and the Québec Port Authority.
2 The increase in operating expenditures is primarily attributable to the funding of Canada Business; in 2007-2008, the funds were received through Supplementary Estimates, so they were not included in the Main Estimates.

1.4.3 Departmental planned spending and full-time equivalents

The following table presents data from the Main Estimates by area of Agency intervention (program activity architecture) and specific adjustments made in the Main Estimates.

Notes:
1 The 2008-2009 Main Estimates of $287.4 million are $107.3 million lower than the 2007-2008 Main Estimates. This net difference is primarily due to a decrease in the amounts allocated for the Infrastructure Program and the Québec Port Authority.
2 This refers to reimbursements of repayable contributions to be billed to promoters in future years.
3 The substantial decrease in FTEs in 2010-2011 is largely attributable to the termination of temporary funding.

1.4.4 Agency areas of intervention: Program activities by strategic outcome

The following table presents the Agency's overall intervention and outcomes on the basis of its program activity architecture (PAA), and shows the link with its priorities.

Notes:
1 For further information on program activities, resources and planned outcomes, see section 3.
2 The program activity Special intervention measures enables the Agency to come to the assistance of communities and regions facing significant economic shocks or natural disasters. This activity is funded through Government of Canada supplementary funding. Currently, the Agency has no dedicated funds available.

2 Agency Priorities and Plans

The goal of this section is to present priorities and associated plans for 2008-2011. Priorities represent the most important areas on which the Agency has chosen to focus for 2008-2009 in order to respond more closely to government priorities, meet the regions' socio-economic challenges and ensure more effective management of the organization. Other intervention not related to priorities comprises the Agency's routine activities.

The Agency's overall intervention is covered in section 3, which presents total planned expenditures by program activity.

2.1 Context of Agency intervention

The following section presents a brief profile of the environment in which the Agency operates, and the main risk factors that influence its intervention.

2.1.1 Institutional context: Government priorities

The Government of Canada recently shared its vision with Canadians in the Speech from the Throne: Strong Leadership. A Better Canada. Building on its successes, the government has set itself five priorities, two of which particularly concern the Agency:

• Provide effective economic leadership: with Advantage Canada, the government has laid out a long-term economic plan to secure better-paying jobs for Canadians and solid economic growth. The next steps in that plan are aimed at ensuring that Canada has a modern infrastructure, an innovative and entrepreneurial business environment, and a tax system that rewards hard work—all based on a foundation of sound fiscal management. The government also aims to facilitate Canadian enterprises' access to foreign markets, where they will be able to compete with the best in the world.
• Strengthen the Federation and its democratic institutions: notably through the celebration of the 400th anniversary of the founding of Québec and support for linguistic duality through a new Action Plan for Official Languages.

The Speech from the Throne also underscored the government's desire to stand up for Canada's traditional industries and its awareness of the challenges facing such key sectors as forestry, fisheries, manufacturing and tourism. The government intends to continue its action to support workers as these industries adjust to global conditions. To that end, it announced a Community Development Trust in January 2008.

2.1.2 Socio-economic context

Overall, the Quebec economy is in good shape. Growth was strong over the past few years. However in 2008, the Quebec economy will be affected by the economic slowdown in the United States, and will continue to feel the impact of the higher Canadian dollar. This should reduce Gross Domestic Product growth, even if domestic demand (consumer spending) continues to support growth.

The labour market is doing relatively well. Employment growth in 2007 was reflected in the unemployment rate (7.2%), which posted a 30-year low. This increase in employment was seen in almost all regions of Quebec, with employment growth in the services sector offsetting losses in manufacturing. On the other hand, the economic slowdown should translate into weaker job growth in 2008.

The manufacturing sector is greatly affected by the higher Canadian dollar and is undergoing changes generated by competition from emerging nations. The sector lost 68,000 jobs between 2002 and 2006. This slowdown was accentuated in 2007, with the loss of 38,000 jobs. Wood products, paper and transportation equipment sectors were especially hard hit. The decline in the manufacturing sector particularly affects Montréal and the central regions. The difficulties experienced by the sector since 2002 will likely continue in the months to come, as the dollar remains high and the transformation of the sector continues.

Other sectors are also undergoing adjustment. On the primary sector front, the economic context in which the forestry industry operates has deteriorated over the past two years, leading to numerous job losses. The industry is suffering from the negative effects of the softwood lumber dispute with the United States, the high cost of fibre supply, higher energy prices and the adjustment required in the wake of the 20% reduction in stumpage dues. The crisis in the forestry industry particularly affects outlying regions. In fact, many communities are vulnerable to this, as their economic base is undiversified. Dependence on a single resource combined with, among other things, the distance to market requires economic diversification to secure the development of these devitalized regions.

On the other hand, the services sector continues to post solid growth. Wholesale trade, accommodation and food services, information, cultural industries and recreation gained thousands of jobs in 2007. Services, which have seen substantial growth in recent years, will continue to expand, to the benefit of all regions. In the major urban centres of Québec and Gatineau, public administration provides considerable stability, while Montréal has very dynamic service industries.

The Quebec economy continues to be transformed through sectoral adjustments, and this transformation must lead it to higher productivity. Indeed, Quebec's productivity is lower than overall Canadian productivity, and than the productivity of Ontario and the majority of Organisation for Economic Co-operation and Development (OECD) countries. Closing the productivity gap requires increased investment. In that regard, the high value of the Canadian dollar, which lowers the price of machinery and equipment, is conducive to investment in new equipment. An economic slowdown could, however, put the brakes on this modernization by enterprises. Innovation also helps enhance enterprises' productivity. While they are active in research and development (R&D), Quebec enterprises—especially small- and medium-sized enterprises (SMEs)—have difficulty commercializing their innovations.

2.1.3 Organizational context

Program context

In a concern for continuous improvement in procedures, the Minister of the Agency consulted chief development agents in all regions of Quebec, through 14 advisory committees (one per business office), to find out the needs with respect to regional economic development.

The Minister also introduced a new guideline on the funding of non-profit organizations. The Agency will continue to work with NPOs in the context of ad hoc, time-limited projects that generate measurable results for the economy of Quebec's regions. For key organizations operating in priority niches, a transition period will enable them to find other funding sources for their basic operations. The Agency will continue to fund regional tourism associations and regional export promotion organizations. Under this measure, it continues to support NPOs' projects while being able to free up monies for enhanced funding of projects involving, among others, SMEs and community economic facilities.

Management context

Within the framework of Public Service Renewal, the Agency undertook a series of steps during the past year to help it contribute fully to that initiative. It took part in large-scale departmental and interdepartmental recruitment and in promotion of career opportunities within universities; it ensured that the majority of its employees have a learning plan and that the competencies of delegated managers are updated; it also conducted human resources planning fully integrated with its business planning. These efforts will be continued in the coming years, in order to attract and maintain a representative, highly professional work force whose competencies match the organization's evolving needs.

In order to implement the Federal Accountability Act successfully, the Agency has already undertaken a series of significant steps to enable it to meet the new requirements, such as the establishment of the internal audit committee, introduction of its management capability improvement plan based on the Management Accountability Framework (MAF) evaluation and drafting of the action plan in response to the main recommendations of the Independent Blue Ribbon Panel on effective program delivery.

Also pursuing the government's priority with respect to the enhancement of expenditure and result management, the Agency made substantial progress in that area over the past year. For instance, it:

• renewed its programs, which came into effect in April 2007, in line with a results-based approach
• established a common set of results and performance indicators to report on its performance, measure the results of assisted enterprises' projects and evaluate the impact of its programs
• trained business office advisors on results-based management (RBM)
• conducted an analysis of its effectiveness and efficiency and reviewed its governance structure
• identified its main corporate risks and adjusted its control levels accordingly
• optimized the allocation and use of its resources by setting up an activity-based costing system for delivery of its programs.

It is against this backdrop that business plans, management charts and managers' performance agreements will over the next few years be placing greater emphasis on results. Upcoming departmental performance reports will seek to explain not only what the Agency does with taxpayers' money, but also the results generated by its action. All these improvements will enable the Agency to analyse its spending and performance, and to realign and reallocate its resources on an ongoing basis toward higher-performance activities that are more important for Canadians.

2.2 Priorities and plans

The Agency plans its priorities and resources on the basis of departmental results and in response to new government priorities and new regional development challenges. The Agency has chosen to modify how it establishes the investment targets associated with priorities. Thus, starting in 2008-2009, these targets will be determined on the basis of new projects approved during that year, rather than of all projects active during the year (as that includes a large number of projects approved during previous years that were evaluated on the basis of different planned results). This will help ensure closer alignment between strategic intentions, the intervention selected to implement them, and the results obtained.

For the upcoming year, the Agency has selected four priorities: two program priorities, and two management priorities. Since economic development is a long-term process and the challenges with respect to which the Agency acts evolve slowly, the Agency's 2008-2009 program priorities are in line with those presented in last year's Report on Plans and Priorities (RPP). Indeed, the Agency will pursue the economic diversification of regions and communities posting slow economic growth and reinforce the performance of innovative, competitive SMEs in key sectors. The Agency intends to devote for the first priority some 50–55% of new commitments approved during 2008-2009 in the regions and communities concerned, while for the second priority the investment goal is approximately 30–35% of all new commitments approved during 2008-2009.

The management priorities will enable the Agency to improve its procedures on an ongoing basis so as to increase its effectiveness and efficiency. They will translate into implementation of an action plan taking into account the government's response to the report of the Independent Blue Ribbon Panel on effective delivery of grant and contribution programs and continuation of the improvement of expenditure, result and risk management.

Summary of Agency Priorities and Plans

Program Priorities

Management Priorities

2.2.1 Program priorities

The Agency's program priorities could be adjusted during the course of the year to ensure their complementarity with initiatives arising from the new federal Community Development Trust that will target vulnerable communities, among other things.

Priority #1: Continue the economic diversification of regions and communities posting slow economic growth

As its first priority, the Agency wishes to pursue the economic diversification of regions and communities posting slow economic growth. It intends to contribute to supporting economic activity in these regions, namely, the seven devitalized regions (Abitibi-Témiscamingue, Bas-Saint-Laurent, Côte-Nord, Gaspésie–Îles-de-la-Madeleine, Mauricie, Nord-du-Québec and Saguenay–Lac-Saint-Jean) and 21 regional county municipalities (RCMs) whose economic vitality is low. The Agency will pay special attention to communities that depend on traditional economic sectors, in particular manufacturing. Certain parts of these regions and RCMs are far from the major North American consumer markets. They show little economic diversification, and this makes them vulnerable when demand for their main products flags, and they have to increasingly adjust to the tightening of rules governing the harvesting of their natural resources (e.g. reduced stumpage dues).

The Agency intends to support and foster the completion of projects likely to respond to the issues specific to those communities in order to mitigate socio-economic adjustment difficulties, renew the entrepreneurial base and facilitate economic diversification by building on their specific assets and potential on the industrial, tourism, cultural or knowledge fronts. The Agency intends to implement the following plan:

• Community Economic Diversification Initiative – Vitality (CEDI-Vitality)
• Community Economic Facilities for the Regions support measure.

Other initiatives may be designed and implemented during the course of the year to respond proactively to the specific issues of regions and communities posting slow economic growth.

Through this priority, the Agency is intensifying its efforts toward achieving the outcomes of the Development of communities program activity.

Community Economic Diversification Initiative – Vitality (CEDI-Vitality)

There are substantial economic disparities among the regions of Quebec. The prosperity of some communities still often depends on the health of a single industry, or even a single enterprise. Moreover, it often relies on the harvesting and processing of natural resources. These communities have a greater need of support for diversification of their economic fabric.

The Agency is continuing the initiative announced in Fall 2006, Community Economic Diversification Initiative – Vitality (CEDI-Vitality), which targets the economic diversification of communities facing adjustment challenges and posting a low vitality index. This initiative will thus contribute to diversifying the economic base and reducing the dependency of communities whose economy is based on a single industry or sector or on the harvesting of natural resources; it also aims to create sustainable employment.

Community Economic Facilities for the Regions support measure

A region's ability to attract investment and new businesses is influenced by the presence of certain assets, including adequate community economic facilities, such as an industrial park, ferry wharf, section of railway line or telecommunications network. This is an important factor in the development of regions that affects the maintenance and reinforcement of their industrial activity. But Quebec's regions and communities experiencing slow economic growth suffer particularly from insufficient or obsolete facilities. For that reason, the Agency established in Fall 2006 a two-year pilot measure to support the construction and upgrading of community economic facilities.

This measure will enable the assisted regions and communities to benefit from community economic facilities that contribute directly to the reinforcement of their economic activity and even facilitate economic diversification. The projects receiving assistance will have to support reinforcement of the economic base directly, generate direct, measurable, short- or medium-term economic spinoffs, create a significant number of sustainable jobs, facilitate access to the main markets outside the region and enable a region or community to acquire lasting competitive advantages. The success of the measure will be gauged in particular by the creation and development of enterprises, the maintenance and creation of sustainable employment and the increase in trade.

Priority #2: Reinforce the performance of innovative, competitive SMEs in key sectors

As its second priority, the Agency wishes to reinforce the performance of innovative, competitive SMEs in key sectors, and it is targeting improved international competitiveness of these SMEs. The sectors it is promoting are, notably: (1) aerospace, life sciences, nanotechnology, biofood, and environmental, information and communications technologies for Greater Montréal; (2) optics-photonics, health and nutrition, medical equipment and computer technology for the major urban centres (Québec and Gatineau); (3) biotechnology, metallurgy, forestry and agrifood for the central areas; and (4) aluminum, bioresources, renewal energy, forestry and mining for the outlying areas.

To realize this priority, the Agency intends to implement the following plan:

• market development
• enhancement of enterprises' strategic capability (innovation management, value chain management, pre-startup and startup of innovative enterprises).

Other initiatives could be developed and implemented during the course of the year to support the performance of innovative, competitive SMEs in key sectors.

Through this priority, the Agency is intensifying its efforts toward achieving the outcomes of the Competitiveness of enterprises (SMEs) program activity.

Market development

Market globalization has generated new business opportunities. But it has also intensified competition, and this represents some sizeable challenges for enterprises which have to carve themselves out a place on emerging markets. The Agency has decided to intensify its assistance for increasing SMEs' export capability. To that end, it will continue, in particular, to implement the Partnering with enterprises for commercialization measure announced in Fall 2006 and will upgrade it to reflect the lessons learned in 2007-2008. In fact, the difficulties associated with innovative, international exporting enterprises' business activities are among the main obstacles to their development. SMEs' competitiveness in the face of emerging markets largely depends on their ability to stand out on international markets, and the challenge of commercialization is particularly great for most Quebec SMEs.

In this context, SMEs have to have access to resources to gather and evaluate the information they need, develop strategies toward international markets and market their products and services.

In concrete terms, this measure is already enabling Quebec enterprises or groups of enterprises to finance up to 50% of the salary of export specialists. It therefore makes it possible to provide enterprises with new strategic capability with respect to commercialization abroad and improve their competitiveness of foreign markets. This is in addition to the support already provided by the Agency to stimulate SMEs' innovation capability, support the commercialization of their products and services and increase their productivity. The spinoffs will include an increase in the value of exports and the number of new exporters.

Enhancement of enterprises' strategic capability

In an environment characterized by globalization and fierce competition, enterprises' competitiveness depends on their ability to innovate in terms of products and processes and on their ability to integrate with major networks of distributors or manufacturers. In fact, enterprises have to enhance their strategic capability in order to take advantage of the opportunities afforded by emerging markets and to meet the competition.

This is the perspective in which the Agency intends to foster the enhancement of enterprises' strategic capability: innovation management, value chain management, and pre-startup and startup of innovative enterprises. To that end, the Agency intends to support access to competencies, implementation of targeted development activities and implementation of advanced management systems and methods.

With respect to innovation management, the Agency wishes to give priority to both management capability as such (e.g. introducing and managing a planning system) and technical capability (e.g. staff's command of technology).

For value chain management, the Agency intends to pay special attention to the integration of globalized value chains, that is, implementation of projects that will enable innovative subcontracting firms to meet major manufacturers' new requirements (in terms of processes, logistics, production information management, etc.), and to redeployment of the value chain so as to optimize performance and productivity.

With respect to pre-startup and startup of innovative enterprises, the Agency intends to support the establishment and first phases of expansion of enterprises deemed innovative and strategic for a region's development as well as the expansion and modernization of means of production. Innovative enterprises in startup phase are those engaged in a significant process of product, procedure or technology development during their startup phase.

2.2.2 Management priorities

Priority #3: Implement the Departmental Action Plan with regard to the report of the Independent Blue Ribbon Panel on effective program delivery

The Independent Blue Ribbon Panel report of December 2006 sets out a series of recommendations to improve the delivery of grants and contributions. These recommendations deal with increasing the transparency of the grants and contributions administration process, reducing processing times, reducing administrative burden on applicants and recipients, standardizing procedures across departments and improving inter-departmental coordination and collaboration. The Agency is directly affected by the issues raised in the report and is actively involved in responding to the report's recommendations. Indeed, the Agency has been identified as one of the vanguard departments which are called upon to spearhead the Government of Canada's response to the report.

The Agency's involvement takes several forms. It participates in the Technical Working Group developing specific measures in response to the report, as well as in the steering committees at the Assistant Deputy Minister and Deputy Minister levels. As such, it takes part in a number of the Pathfinder Projects, which involve multiple departments working together to develop joint solutions to several of the issues raised in the report. The Agency provides feedback and suggestions with regard to policy changes which are being developed by Treasury Board. Finally, it has developed a Departmental Action Plan which aims to implement within the Agency the various recommendations of the report which can be undertaken on an independent basis.

The Departmental Action Plan is being implemented over a period of twelve to twenty-four months. The major elements of the plan include:

• renewing the Agency's Web site to provide information which corresponds more completely and clearly to applicant needs
• improving audit and file monitoring procedures so as to improve its operating efficiency, and reduce administrative burden upon applicants and recipients while enhancing the Agency's ability to manage by results and improve risk-based management
• restructuring internal operating procedures so as to reduce processing time for applications while publishing new service standards to reflect these changes.

Taken together, these measures will enable the Agency to respond to the major issues raised in the report while providing significant benefits to the Agency in terms of its enhanced operating efficiencies. Implementation of these measures will require the significant involvement of virtually every sector of the Agency, including Operations, Corporate Services, Communications, Policy and Programs, and Legal Services.

Priority #4: Continue improving management of expenditures, results and risk

Federal departments have to implement simultaneously several government-wide initiatives associated with enhancement of expenditure and result management, such as the Management Accountability Framework, the Management, Resources and Results Structure, new evaluation and audit policies, the in-depth strategic review of spending every four years, and so on. The Agency's commitment to this government agenda for change will translate into the progressive, integrated implementation of all these initiatives over a three-year period, based on an in-house communication plan and a change management plan.

Realistically, the Agency therefore intends to continue improving expenditure, result and risk management in three phases:

• Phase I: reinforcement of mechanisms with respect to expenditure, result and risk management
• Phase II: acquisition of quality, timely information on expenditures and results
• Phase III: integration of information on costs and results in decision-making.

Phase I – Reinforcement of mechanisms with respect to expenditure, result and risk management

This phase initiated in 2007-2008 is aimed essentially at reviewing the Agency's strategic directions and program activity architecture; clarifying results and performance indicators; reviewing resource allocation models; identifying corporate risk; evaluating management capability in line with the MAF; and adjusting governance structure. This phase is also aimed at starting the integration of these elements in planning (e.g. business plans and yearly audit and evaluation plans).

Phase II – Acquisition of quality, timely information on expenditures and results

This second phase beginning in 2008-2009 is aimed first of all at improving the quality of cost and performance information. The Agency will ensure that quality control mechanisms are appropriate and efficient. It will broaden its data collection modes and methods, both to improve control of operating costs and to be able to measure results in the long term. Finally, this phase is also marked by experimentation with result and investment targets. New tools (e.g. management charts) will be developed to support the organization in learning how to carry out performance measurement and monitoring.

By relying on better information and acquiring appropriate tools, the Agency will monitor its performance more rigorously, and this will enhance its expenditure review capability.

Phase III – Integration of information on costs and results in decision-making

The 2009-2010 planning cycle should be based on improved expenditure, performance and risk analyses. It will be characterized by the establishment of realistic, firmer performance targets (which will be identified in the Agency's next Report on Plans and Priorities). It will then be possible to link these results with managers' performance agreements. Greater control and regular review of operating costs and results will enable the Agency to make enlightened investment and resource allocation decisions. Program renewal (scheduled in 2011-2012) will require a specific evaluation of the Agency's impact on Quebec SMEs and regions. Phase III will therefore be the start of preparations for the re-examination of the strategic directions, which could potentially lead to changes in certain aspects of the programs.

Training, in-house communications and change management

This departmental program for change comprises more than 50 initiatives altogether. Implementation of some of them requires changes to tools and work processes. Adapted procedures manuals and appropriate training will support the advisors' and analysts' work. To keep employees up-to-date on changes, and above all to maintain a high level of commitment from the entire organization, regular communications will continue to be produced. Finally, coordination and execution of all the work in progress will continue to be ensured by a departmental steering committee made up of members of senior management.

3 Analysis of Program Activities by Strategic Outcome

This section presents the Agency's overall intervention on the basis of its program activity architecture (PAA).

The PAA is the basic structure which enables the Agency to allocate its resources to its different programs and activities, then to manage them in order to obtain the targeted outcomes.

To be in a position to meet the current and future challenges of Quebec's regions, the Agency has set up a PAA, whereby it will be able to fulfil its object and mandate on the basis of its strategic outcomes. The Agency intervenes with respect to three strategic outcomes:

• Vitality of communities
• Competitiveness of small- and medium-sized enterprises (SMEs) and regions
• Policy, representation and cooperation.

The guideline described in subsection Organizational context (see 2.1.3) could mean that, in some cases, depending on NPOs' ad hoc projects that will be supported or those which may eventually be funded when monies are freed up, results could be harder to attain, while other projects may benefit.

3.1 Strategic outcome #1: Vitality of communities

A community's vitality depends on its ability to develop, grow and thrive by building on its own assets. It is associated with improving Canadians' quality of life. It enables Quebec communities to be dynamic so as to enjoy better socio-economic prospects and maintain and develop their economic activity base.

Three program activities support this strategic outcome:

• Development of communities: developing a community with regard to its capabilities in terms of socio-economic adjustment, support for emergence of new entrepreneurs and creation of small enterprises, attraction of tourists and retention of skilled individuals.
• Infrastructure: renewing and building quality public infrastructure in Quebec's rural and urban communities.
• Special intervention measures: supporting communities facing major economic shocks.

3.1.1 Program activity: Development of communities

This program activity enables Quebec's regions and communities to maintain and develop their economic activity base. The Agency pursues three objectives under this program activity in order to achieve tangible, measurable results:

• Community mobilization (social capital): fostering community capacity-building to ensure communities are better equipped to take charge of their own development.
• Development of the local milieu: encouraging entrepreneurship and increasing the number of sustainable enterprises created.
• Attractive milieus: increasing communities' drawing power to help them attract and retain tourists and skilled work force.

Grant and Contribution Programs

Note:
1 Since operating expenditures originate from several sources, they are not broken down by programs.

3.1.2 Program activity: Infrastructure

Improving the quality of life in cities and communities is one of the Government of Canada's main priorities. In conjunction with the provinces, territories and municipalities, as well as First Nations and the private sector, the Government of Canada has implemented different joint infrastructure programs. The Department of Transport, Infrastructure and Communities has Canada-wide responsibility for these programs.

During 2008-2009, the Agency will continue to manage and administer the Canada-Quebec Agreement with respect to the Infrastructure Canada Program (ICP) and the Municipal Rural Infrastructure Fund (MRIF), whose envelopes are $515.5 million and $234.8 million, respectively. These two programs are managed in partnership with the Government of Quebec.

Added to these two programs is the management of the Canada Strategic Infrastructure Fund (CSIF), a program that provides funding for projects with minimum eligible costs of $75 million. In that regard, the Agency is responsible for managing all aspects of the project agreement for the Development of Versant Soleil and Versant Nord at Mont Tremblant Resort, for which the federal contribution is $47.5 million. Two other projects will be added during the fiscal year, namely, the Remedial action plan for the St. Charles River and revitalization of the waterfront in Québec, for which the federal contribution is $36.5 million, and the Upgrade of City of Montréal potable water production plants at Atwater and Charles-J.-Des Baillets, for which the federal contribution is $58.5 million.

Furthermore, in its 2007 budget, the Government of Canada unveiled its Building Canada infrastructure plan, with $33 billion in funding to build a stronger, safer and better Canada. In that perspective, the new Building Canada Fund includes Canada-wide investments worth $8.8 billion over seven years in such infrastructure categories as the national highway network, public transit, cleaner water and wastewater treatment infrastructure. This investment will help support major strategic projects as well as smaller-scale municipal projects. During 2008-2009, the Agency's role under this program will be clarified to have a better idea of its level of intervention with respect to this new program that represents a priority for the Government of Canada.

The Infrastructure program activity has three objectives:

• Water quality: fostering the availability of drinking water and better wastewater management systems.
• Highways and public transit: facilitating the safe, efficient movement of individuals and goods, and combating congestion and reducing pollution.
• Assets with urban or regional economic impact: fostering the development of tourism infrastructure and communities' cultural and recreational facilities.

Grant and Contribution Programs

Note: The number of FTEs and planned operating expenditures concern management of the MRIF as well as CSIF projects. The Agency acts as the agent for the Department of Transport, Infrastructure and Communities, which is responsible for the program.

3.1.3 Program activity: Special intervention measures

The Agency does not have funds dedicated to this program activity. This activity would enable the Agency to come to the assistance of communities or regions facing significant economic shocks, such as the closing of plants in an industrial sector, or natural disasters (flooding in the Saguenay, ice storm in Montréal and the Montérégie).

3.2 Strategic outcome #2: Competitiveness of small- and medium-sized enterprises (SMEs) and regions

This second strategic outcome reinforces conditions conducive to the sustainable growth of regions and SMEs. The Agency pursues three objectives with respect to this strategic outcome in order to achieve tangible, measurable results:

• helping enterprises improve their performance, become more competitive and engage in more innovation to facilitate their sustainable development
• supporting the transfer of technology and research outputs to enterprises
• creating the right conditions to attract foreign investment and international organizations.

Two program activities support this strategic outcome:

• Competitiveness of enterprises (SMEs): fostering the competitiveness of SMEs by increasing their capacity to innovate, adopt leading-edge technologies and develop markets.
• Competitive positioning of regions: fostering regions' competitive positioning by developing and consolidating recognized competitiveness poles in Quebec and Canada and attracting foreign investment and international organizations.

3.2.1 Program activity: Competitiveness of enterprises (SMEs)

This program activity enables enterprises to be high-performance and competitive by increasing productivity, earned income and the number of jobs in the regions. This helps generate conditions conducive to sustainable growth. Two objectives support this program activity:

• Development of the skills of potentially innovative or highly innovative enterprises (SMEs): fostering an increase in strategic skills with respect to management, innovation, adoption of advanced technology, market development and integration with globalized production chains; fostering support for organizations dedicated to improving SMEs' strategic skills; and facilitating the structuring of clusters in order to enhance SMEs' performance and facilitate their adjustment.
• Development of strategic enterprises: supporting the establishment and initial expansion phases of enterprises in economic activities deemed strategic for a region's development.

Definitions

Grant and Contribution Programs

Note:
1 Since operating expenditures originate from several sources, they are not broken down by programs.

3.2.2 Program activity: Competitive positioning of regions

Concerning this program activity, the Agency intends to improve the regions' international competitiveness by enhancing their knowledge and competitive advantages on the international stage. It has two objectives:

• Competitiveness poles: developing and consolidating regional competitiveness poles and national- and international-calibre poles of excellence. To achieve this, the Agency intends to foster innovation and networking of knowledge players, sustain development of a critical mass of knowledge and support technology enhancement and transfer.
• International promotion: enhancing the international competitiveness of Quebec regions. To that end, the Agency plans to favour the integrated promotion of locational factors, attraction of foreign direct investment and reinvestment by foreign enterprises already established in Quebec.

Grant and Contribution Programs

Note:
1 Since operating expenditures originate from several sources, they are not broken down by programs.

3.3 Strategic outcome #3: Policy, representation and cooperation

The Agency's efforts in policy development, representation and cooperation will enable Quebec's regions and communities to benefit from federal policies, programs and initiatives that reinforce the economic development of Quebec's regions by reflecting government priorities and the realities of Quebec's regions and reinforcing the added value of federal action regarding regional development.

A single program activity supports this strategic outcome:

• Policies, programs and initiatives: strengthening the Agency's ability to develop or help formulate policies, programs and initiatives to meet more effectively the needs of Quebec's regions and reinforce the timeliness of federal regional development activities in Quebec.

3.3.1 Program activity: Policies, programs and initiatives

This program activity enables Quebec's regions and communities to benefit from adapted, coherent and effective federal action that generates socio-economic spinoffs, notably by producing and disseminating regional economic development knowledge that is helpful for development stakeholders and by grasping business and development opportunities.

Three objectives underpin this program activity:

• Research and strategic analysis: reinforcing research and analysis capabilities which enable organizations and development stakeholders to have helpful knowledge available to them concerning new trends, issues and challenges in development. The Regional Development Research program supports this objective.
• Representation and influence: representing the Agency proactively on regional development issues so that the realities of Quebec's regions are taken into account in the government decision-making process, and influencing other federal institutions so that their policies, programs and initiatives have positive economic spinoffs in Quebec.
• Cooperation and collaboration: exploring cooperative action with non-federal government organizations and development stakeholders and developing collaborative action with federal government bodies.

Grant and Contribution Programs

Note: The number of FTEs and planned operating expenditures include, in addition to management of grant and contribution projects, activities involving consultation, guidance, and transfer and sharing of knowledge generated by research, representation and influence activities, and cooperative and collaborative activities.

4 Additional Information

4.1 Agency Link to the Government of Canada Outcomes

4.2 Agency's Sustainable Development Strategy (SDS)

Note:
1 The Agency's SDS has been amended to reflect the new guideline on NPOs.

4.3 Tables in electronic format posted on the Treasury Board Secretariat Web site

The following tables can only be found on the Treasury Board Secretariat Web site:

4.3.1 Details on transfer payment programs (grants, contributions and other transfer payments)
4.3.2 Evaluations
4.3.3 Green procurement
4.3.4 Internal audits
4.3.5 Services received without charge
4.3.6 Sources of non-respendable revenue

Information:
www.tbs-sct.gc.ca/est-pre/20082009/p3a_e.asp.

4.4 Performance measurement strategy

4.4.1 Five-year strategy

The performance measurement strategy applied at the Agency is based on the systematic observation of outcome indicators identified in its 2007 performance measurement framework. These indicators will be used to conduct ongoing measurement of targeted outcomes and provide material for the Agency's strategic decision-making during Fiscal Year 2008-2009.

Among the indicators that will be tracked are both output (activity) indicators and outcome indicators.

Owing to their nature, anticipated outcomes will occur over a relatively long period possibly over five years. Most will not be observable in the year in which disbursement is made. For instance, it is only after two years that an enterprise's expected increase in sales fully materialize following an investment carried out with Agency assistance.

That is why the Agency's performance measurement strategy is spread over a five-year horizon and why the yearly performance measurement reports will, in the initial years, be limited to outputs, immediate outcomes and intermediate outcomes. This year being Year 1 for the new programs, the data on intermediate outcomes that will appear in the Departmental Performance Report for the period ending March 31, 2008 will be of a partial nature.

4.4.2 Continuous improvement

The Agency paid special attention in 2007-2008 to improving the quality of its data on performance. In particular, it identified data collection methods better geared to promoters' capabilities and its needs and defined consistent data sources for each indicator.

These methods are applied to projects approved since April 1, 2007. They cannot be systematically applied to other active projects approved under the old programs on the basis of different planned results.

4.5 Agency tools and programs

To promote the development and economic diversification of the regions of Quebec and achieve the outcomes from its six program activities as described in section 3, the Agency utilizes and makes available to its promoters an array of tools and programs which enable it to intervene with respect to regional development.

4.5.1 Agency intervention tools

With respect to programs and services, the Agency deploys to promoters various intervention tools consisting primarily of guidance and advice, information and referrals, and financial assistance.

Guidance and advice

For the Agency, guidance and advice involve helping entrepreneurs and local and regional development agents design and develop directions, a strategy, a business plan, an action plan or a project, or helping them plan a financial package, identify funding sources, and so on. At the Agency, advice or guidance provided by a staff member are services delivered to an entrepreneur or local development agent on an individual basis, geared to his specific situation. Provision of advice takes place as needed. A guidance approach constitutes systematic, sustained, prolonged assistance, at various stages along the promoter's path toward design and implementation of his project.

Information and referrals

The Agency produces timely information so entrepreneurs and local and regional development agents may reach informed decisions, and it makes this information more easily accessible and usable. This also involves referring them to resources likely to provide a timely, appropriate response to their specific needs. In this regard, the Agency relies on Canada Business Service Centres operating in Quebec, namely, Info Entrepreneurs in Montréal and Ressources Entreprises in Québec, for Eastern Quebec. These organizations deliver information, referral and reference material services to entrepreneurs and local and regional development agents in Quebec.

Financial assistance

The Agency has several programs and services whereby it makes both repayable and non-repayable contributions and, in exceptional cases, grants to SMEs, organizations that assist them, and communities.

4.5.2 Agency programs

Core Mandate

Regular programming

• Community Diversification program
• Business and Regional Growth program
• Community Futures Program (CFP)
• Regional Development Research program

Special Mandate

Programs under mandates from the Government of Canada

• Infrastructure Canada Program – Canada-Quebec Agreement 2000
• Canadian Apparel and Textile Industries Program

Regular programs

Community Diversification program

This program helps Quebec regions maintain and develop their economic activity base. A community's vitality depends on its ability to develop, grow and thrive by building on its own assets.

In effect from April 1, 2007 to March 31, 2012, this program has three objectives:

• fostering communities' development and increasing their mobilization by drawing up visions and projects of local and regional scope
• assisting communities through support for entrepreneurship and through creation or maintenance of viable enterprises
• increasing communities' capability to attract tourists and skilled individuals.

Business and Regional Growth program

This program reinforces the conditions conducive to the sustainable development of regions and SMEs. In effect from April 1, 2007 to March 31, 2012, it is aimed at:

• helping enterprises improve their performance, become more competitive and engage in more innovation to facilitate their sustainable development
• supporting the transfer of technology and research outputs to enterprises
• creating the right conditions to attract foreign investment and international organizations.

Community Futures Program

This Canada-wide program provides support for communities in all parts of the country to help them take charge of their own local economic development. In Quebec, the CFP financially supports 57 Community Futures Development Corporations, as well as 15 Community Economic Development Corporations and 10 Business Development Centres.

Regional Development Research program

This program contributes to promoting the development and diversification of the economy of the regions of Quebec. Its goal is to generate and disseminate helpful knowledge concerning economic and regional development for development stakeholders. This knowledge reinforces their ability to act on development and participate in an enlightened manner in an ongoing dialogue concerning economic and regional development issues and problems.

Programs under mandates from the Government of Canada

Infrastructure Canada Program - Canada-Quebec Agreement 2000

Within the framework of the pan-Canadian Infrastructure Program under Treasury Board Secretariat responsibility, a Canada-Quebec Agreement was signed in October 2000. The objective of this agreement was to upgrade urban and rural municipal infrastructure in the province and improve Quebecers' quality of life. The Agency acts on behalf of the Government of Canada as the federal department responsible for implementation in Quebec. This agreement was amended in July 2005 to postpone to March 31, 2009 the deadline for disbursements under the ICP. Since December 2005, under the terms of the agreement, no more new projects may be approved under the program.

Canadian Apparel and Textile Industries Program

This program is intended to reinforce the competitiveness of textile manufacturing firms, by helping them:

• improve their productivity
• lower their costs
• increase their efficiency
• diversify their output toward high value-added products in growing niche markets.

Program implementation is handled by the Agency in Quebec and by Industry Canada in the other provinces. This program terminates on March 31, 2010.

5 Appendices

5.1 List of acronyms

5.2 Agency Business Offices

Abitibi-Témiscamingue
906 5th Avenue
Val-d'Or, Quebec J9P 1B9
Tel.: 819-825-5260 • 1-800-567-6451
Fax: 819-825-3245

Bas-Saint-Laurent
2 Saint-Germain Street East, Suite 310
Rimouski, Quebec G5L 8T7
Tel.: 418-722-3282 • 1-800-463-9073
Fax: 418-722-3285

Centre-du-Québec
Place du Centre
150 Marchand Street, Suite 502
Drummondville, Quebec J2C 4N1
Tel.: 819-478-4664 • 1-800-567-1418
Fax: 819-478-4666

Côte-Nord
701 Laure Blvd.
Suite 202B, P.O. Box 698
Sept-Îles, Quebec G4R 4K9
Tel.: 418-968-3426 • 1-800-463-1707
Fax: 418-968-0806

Estrie
Place Andrew Paton
65 Belvédère Street North, Suite 240
Sherbrooke, Quebec J1H 4A7
Tel.: 819-564-5904 • 1-800-567-6084
Fax: 819-564-5912

Gaspésie—Îles-de-la-Madeleine
120 de la Reine Street, 3rd Floor
Gaspé, Quebec G4X 2S1
Tel.: 418-368-5870 • 1-866-368-0044
Fax: 418-368-6256

Île-de-Montréal
3340 de l'Assomption Blvd.
Montréal, Quebec H1N 3S4
Tel.: 514-283-2500 • 1-800-322-4636
Fax: 514-496-8310

Laval—Laurentides—Lanaudière
Tour Triomphe II
2540 Daniel-Johnson Blvd., Suite 204
Laval, Quebec H7T 2S3
Tel.: 450-973-6844 • 1-800-430-6844
Fax: 450-973-6851

Mauricie
Immeuble Bourg du Fleuve
25 des Forges Street, Suite 413
Trois-Rivières, Quebec G9A 2G4
Tel.: 819-371-5182 • 1-800-567-8637
Fax: 819-371-5186

Montérégie
Place Agropur
101 Roland-Therrien Blvd., Suite 400
Longueuil, Quebec J4H 4B9
Tel.: 450-928-4088 • 1-800-284-0335
Fax: 450-928-4097

Nord-du-Québec
Tour de la Bourse
800 square Victoria
Suite 3800, P.O. Box 247
Montréal, Quebec H4Z 1E8
Tel.: 514-283-8131 • 1-800-561-0633
Fax: 514-283-3637

Service point Chibougamau:
Tel.: 418-748-2175 • 1-877-748-2175

Outaouais
259 Saint-Joseph Blvd., Suite 202
Gatineau, Quebec J8Y 6T1
Tel.: 819-994-7442 • 1-800-561-4353
Fax: 819-994-7846

Québec—Chaudière-Appalaches
Place Iberville IV
2954 Laurier Blvd., Suite 030
Québec, Quebec G1V 4T2
Tel.: 418-648-4826 • 1-800-463-5204
Fax: 418-648-7291

Saguenay—Lac-Saint-Jean
170 Saint-Joseph Street South, Suite 203
Alma, Quebec G8B 3E8
Tel: 418-668-3084 • 1-800-463-9808
Fax: 418-668-7584

Corporate Services
Tour de la Bourse
800 Square Victoria
Suite 3800, P.O. Box 247
Montréal, Quebec H4Z 1E8
Tel: 514-283-6412 • 1-866-385-6412
Fax: 514-283-3302

Place du Portage, phase II
165 Hôtel-de-Ville Street
P.O. Box 1110, Station B
Gatineau, Quebec J8X 3X5
Tel.: 819-997-3474
Fax: 819-997-3340

Details on Transfer Payment Programs
(grants, contributions and other transfer payments)

(in thousands of dollars)	Planned spending 2007-2008	Planned spending 2008-2009	Planned spending 2009-2010	Planned spending 2010-2011
• Strategic outcome: Vitality of communities
Program activity: Development of communities
Grants
Community Diversification program	1,080	600	600	600
Sept-Îles Port Authority to expand Wharf 41	2,400	0	—	—
Québec Port Authority to commemorate the 400th anniversary of Québec City in 2008	25,000	9,750	0	—
Total grants	28,480	10,350	600	600
Contributions
Community Futures Program	40,304	32,000	32,400	29,181
Community Diversification program	67,570	64,182	53,866	51,486
Total contributions	107,874	96,182	86,266	80,667
Program activity: Infrastructure
Contributions to the Province of Quebec under the Infrastructure Canada Program	97,358	24,448	—	—
Program activity: Special intervention measures
Contributions – Canadian Apparel and Textile Industries Program	6,973	—	—	—
Total - Strategic outcome: Vitality of communities	240,685	130,980	86,866	81,267
• Strategic outcome: Competitiveness of small- and medium-sized enterprises (SMEs) and regions
Program activity: Competitiveness of enterprises (SMEs)
Grants – Business and Regional Growth program	400	100	100	100
Contributions – Business and Regional Growth program	64,137	64,960	58,333	52,804
Contributions – Canadian Apparel and Textile Industries Program	—	2,703	2,663	2,663
Total contributions	64,137	67,663	60,996	55,467
Program activity: Competitive positioning of regions
Grants – Business and Regional Growth program	320	100	100	100
Contributions – Business and Regional Growth program	38,730	38,166	38,857	36,946
Total - Strategic outcome: Competitiveness of small- and medium-sized enterprises (SMEs) and regions	103,587	106,029	100,053	92,613
• Strategic outcome: Policy, representation and cooperation
Program activity: Policies, programs and initiatives
Grants – Regional Development Research program	100	200	200	200
Contributions – Regional Development Research program	400	750	750	750
Total - Strategic outcome: Policy, representation and cooperation	500	950	950	950
Total	344,772	237,959	187,869	174,830

Evaluations

Name of evaluation	Evaluation Type	Expected completion date
Formative evaluation of the Business and Regional Growth program	Grant and contribution	March 31, 2009
Formative evaluation of the Community Diversification program	Grant and contribution	March 31, 2009
Formative evaluation of the Regional Development Research program	Grant and contribution	To be determined on the basis of the program's level of implementation
Evaluation of the Community Economic Diversification Initiative – Vitality (CEDI-Vitality)	Grant and contribution	March 31, 2009
Evaluation of the Sustainable Development Strategy (SDS)	Other	March 31, 2010
Summative evaluation of the Infrastructure Program (Infrastructure Program Canada – Quebec 2000)	Grant and contribution	March 31, 2009
Inno-centre evaluation – Evaluation of technology incubation organizations	Other	March 31, 2009
Formative evaluation of the Canadian Apparel and Textile Industries Program (CATIP) – Textile Production Efficiency Component (TPEC/CANtex)	Grant and contribution	March 31, 2009

Green Procurement

Internal Audits¹

Name of internal audit	Internal audit Type	Status	Expected completion date
Review of the risk management process	Review	To begin in winter 2008	Summer 2008
Review of the process for monitoring results stemming from grants and contributions	Review	To begin in winter 2008	Summer 2008
Management audit of certain business offices	Assurance	To begin in summer 2008	Fall 2008
Other audit mandate with respect to audit of risk management systems – to be determined	Assurance	To begin in spring 2008	Variable
Other audit mandate(s) with respect to results-based management (RBM)	Assurance	To begin in fall 2008	Winter 2009
Mandate for audit of (umbrella) management mechanisms for grants and contributions	Assurance	To begin in spring 2008	Fall 2008
Other audit mandate(s) with respect to the operation of controls in place	Assurance	To begin in fall 2008	Winter 2009
Specific audits as required: Specific initiatives or review Financial compliance with agreements Administrative practices Other	Assurance or review	As required	As required
Audit of the level of preparedness for certification of financial statements	Assurance	To begin in fall 2008	Winter 2009
Audit of the Social Economy Initiative	Assurance	Phase 1 to begin in winter 2008 and Phase 2 in winter 2009	Phase 1 in spring 2008 and Phase 2 in spring 2009
Follow-up on action plans from earlier external audits	Follow-up	To begin in winter 2008	Spring 2008
Horizontal audit work requested by the Office of the Comptroller General of Canada (OCG)	Assurance	Upon request from the OCG	Upon request from the OCG
Compliance with key controls for the project approval and amendment processes and contribution payments and for budget monitoring for the Infrastructure Canada Program (April 1, 2007 to March 31, 2008)	Assurance	To begin in summer 2008	Fall 2008
Compliance with key controls for the project approval and amendment processes and contribution payments and for budget monitoring for the Municipal Rural Infrastructure Fund (MRIF) (April 1, 2007 to March 31, 2008)	Assurance	To begin in summer 2008	Fall 2008
Audit report to the Management Committee of the Canada-Quebec Agreement relative to the Infrastructure Canada Program/Canada-Quebec 2000 Infrastructure Works – Period ending March 31, 2008	Assurance	To begin in fall 2008	Winter 2009
Audit report to the Management Committee of the Municipal Rural Infrastructure Fund – Period ending March 31, 2008	Assurance	To begin in fall 2008	Winter 2009

Note:
1 This plan is subject to eventual approval by the Audit Committee.

Services received without charge

(in thousands of dollars)	2008-2009
Accommodation provided by Public Works and Government Services Canada	2,804
Contributions covering the employer's share of employees' insurance premiums and expenditures paid by the Treasury Board of Canada Secretariat (excluding revolving funds)	2,434
Salary and associated expenditures of legal services provided by the Department of Justice Canada	30
Total services received without charge	5,268

Sources of Non-Respendable Revenue

Non-respendable revenue1 (in thousands of dollars)	Forecast revenue 2007-2008	Planned revenue 2008-2009	Planned revenue 2009-2010	Planned revenue 2010-2011
Development of communities	10,400	5,000	5,300	6,000
Infrastructure	—	—	—	—
Special intervention measures	—	—	—	—
Competitiveness of enterprises (SMEs)	33,000	34,500	35,000	38,000
Competitive positioning of regions	1,500	4,000	3,200	3,200
Policies, programs and initiatives	—	—	—	—
Total	44,900	43,500	43,500	47,200

Note:
1 This refers to reimbursements of repayable contributions to be billed to promoters in future years.