Departmental Performance Report for the period ending March 31, 2010

Performance Report — For the Period Ending March 31, 2010

Section 3: Supplementary Information

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3.3 Other Items of Interest

IM/IT Governance and Responsibilities at Industry Canada

Information management (IM) and information technology (IT) are important enablers of the Department' business. The stewardship of information and technology includes a fiscal responsibility for meeting the needs and expectations of clients for high-quality, authoritative information.

Industry Canada is guided by a multi-year IM agenda. The agenda aims to ensure that departmental information is managed efficiently and effectively to support program and service delivery; foster informed decision making; facilitate accountability, transparency and collaboration; and preserve access to information and records for the benefit of present and future generations.

On December 7, 2009, the Information Technology Strategic Management Committee (ITSMC), an ADM-level committee chaired by the Senior Executive responsible for Information Management, approved the new Information Management Governance and Accountability Framework. The Framework raises the profile of IM in the Department and provides the Information Management Branch with the necessary authority to direct IM implementation. The Framework also establishes the necessary levels of governance to support the delivery of major IM initiatives, such as the Enterprise Business-based Classification Structure (BCS) and the Electronic Document and Records Management Solution.

In 2009–10, the Department also undertook a number of initiatives to address the lack of IM capacity within branches and sectors, including the following two key activities: the development of a generic Information Administrator (IA) work description to support sector IM roles and responsibilities and the establishment of a coordinators network to support implementation of the BCS. The IA work description, which is classified as an AS-03, is available for business unit use. The role of the IA is to provide IM advice, guidance, awareness presentations and training to business unit managers and staff. The IA will also serve as the main point of contact on IM operational issues to departmental IM functional authorities.

The BCS, a multi-year $3.2-million project, was approved in 2008–09. The project involves the delivery of a two-tiered enterprise information classification structure linked to the Department' Program Activity Architecture. Tier 1 is corporately managed and provides enterprise classification architecture (including links to retention and disposition standards) based on the Department' programs and services. Tier 2 consists of individual file plans, managed by the business units and linked to the corporate tier. The Department has completed Tier 1 as planned and is on schedule for developing the Tier 2 file plans. In 2009–10, the Department also completed the development of a supporting BCS online resource tool, classification templates for internal services and training needed to support Tier 2 implementation.

Industry Canada' project management and governance processes continued to mature. In 2009–10, Industry Canada began to include non-IT projects in these processes with the addition of IM projects. The Project Management Centre continues to work with sectors to ensure that projects are managed effectively and benefits are reported following project completion.

The Chief Informatics Office was also able to meet its service level agreement targets while continuing to provide reliable service.

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3.4 Additional Performance Results and Risk Analysis

This portion of the Departmental Performance Report provides supplemental performance information not contained in the Blue Book. This is an additional level of performance reporting that corresponds to Industry Canada' 2009–10 Report on Plans and Priorities (RPP) down to the Program Sub-Activity level. Additional risk mitigation and lessons-learned information is presented below by Program Activity, where applicable, to augment the content in the Blue Book. In future public reporting documents, this more detailed approach to sharing risks and lessons learned will be carried forward and expanded to additional Program Activities.

Strategic Outcome: The Canadian Marketplace is Efficient and Competitive

1.1 Marketplace Frameworks and Regulations

Description: This program delivers regulatory regimes through regulations, policies, procedures and standards for bankruptcy, foreign direct investment, federal incorporation, intellectual property, and weights and measures to the Canadian marketplace (consumers, businesses and investors) that promote an efficient and competitive marketplace. It raises awareness across government of the importance to the Canadian economy of effective regulatory regimes and of minimizing regulatory compliance burden on small businesses.

Expected Result: Marketplace fairness, integrity, efficiency and competitiveness are protected in the areas of insolvency, foreign investment, weights and measures, federal incorporation, and intellectual property
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Percentage of cases for which regulatory timelines and/or service standards are met

80%

Status: Exceeded

86.8%

This figure is represented as a percentage based on the following compliance rate:

  • Measurement Canada – 80%
  • Office of the Superintendent of Bankruptcy – 94%
  • Corporations Canada – 94%
  • Investment Review – 72%
  • Canadian Intellectual Property Office – 94%.
New indicator

Risk Mitigation

In 2009–10, Measurement Canada, to mitigate the risk of inaccurate measurement, increased inspections in the retail petroleum and retail food sectors (using 2007–08 data as the baseline) and targeted inspections in other industry sectors where problems were known or suspected. Measurement Canada also continued to apply more stringent enforcement strategies to detect and correct inaccurate measurement, including having measuring devices that were found to have significant measurement errors removed from service until repairs were effected.

In light of the current economic conditions, it is critical that the Office of the Superintendent of Bankruptcy maintain investor, lender and public confidence in the Canadian marketplace by protecting the integrity of the bankruptcy and insolvency system. A high level of regulatory compliance was achieved through a greater emphasis on a systemic, rather than transactional, oversight coupled with the rigorous application of risk-based management principles.

1.1.1 Measurement Canada

Description: This program ensures the integrity and accuracy of the measurement of goods and services bought and sold on the basis of measurement in Canada. As a result, it protects Canadians against financial loss due to inaccurate measurement and maintains consumer and business confidence in measurement-based transactions within Canada.

Expected Result: Fair and accurate trade measurement in Canada
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Number of marketplace sectors where compliance improvement strategies and complaint investigation services result in improved consumer protection

10

Status: Not met

Through its marketplace monitoring program, Measurement Canada increased inspections in 3 marketplace sectors: the retail petroleum, downstream petroleum and retail food sectors. Inspection targets for the retail food and downstream petroleum sectors were exceeded, and 90% of the inspection target for the retail petroleum sector was met. New indicator
Number of marketplace sectors where rules and requirements, measuring device approval services and increased Measurement Canada authorized service-provider inspections result in increased measurement accuracy

10

Status: Not applicable

The results of Measurement Canada' increased focus in certain sectors will not be known until follow-up compliance activities in 2010–11. Results will be published in the 2010–11 Departmental Performance Report. New indicator

1.1.2 Office of the Superintendent of Bankruptcy

Description: This program protects the integrity of the bankruptcy and insolvency system through the supervision and administration of all estates to which the Bankruptcy and Insolvency Act applies. As a result, it assists in maintaining investor, lender and public confidence in the Canadian marketplace.

Expected Result: Estates are properly supervised and administered in a timely fashion
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Percentage of consumer bankruptcy files not older than 3 years

90%

Status: Exceeded

91% of summary filings (as defined by the Bankruptcy and Insolvency Act) are not older than 3 years. No change
Percentage of commercial bankruptcy files not older than 3 years

60%

Status: Mostly met

59% of ordinary filings (as defined by the Bankruptcy and Insolvency Act) are not older than 3 years. No change
Percentage of banking reports received from trustees analyzed by the Office of the Superintendent of Bankruptcy (OSB) within 3 months of receipt

90%

Status: Exceeded

100% of banking reports received from trustees were analyzed by the OSB within 3 months of receipt. New indicator

1.1.3 Corporations Canada

Description: This program administers a number of statutes such as the Canada Business Corporations Act, Part II of the Canada Corporations Act, the Canada Cooperatives Act and the Boards of Trade Act. As a result, it provides a regulatory climate that maintains order and fairness in the corporate law arena.

Expected Result: Federally incorporated companies are compliant with corporate laws and regulations
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Percentage of federally incorporated corporations that comply with statutory filing requirements

80%

Status: Exceeded

81.4% corporation compliance for annual return filings, up from 80% in 2008–09 Improving
Expected Result: Businesses have timely and reliable access to incorporation services and information
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Number of Corporations Canada's service standards that are met or exceeded

90%

Status: Exceeded

Service standards met or exceeded 94.6% of the time, down from 95.75% in 2008–09 Declining
Expected Result: Key services are available/delivered to businesses electronically
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Percentage of transactions completed online for key services

80%

Status: Exceeded

92.4% of transactions (new incorporations) completed online, up from 90% in 2008–09 Improving

1.1.4 Regulation of Small and Medium-Sized Businesses (Including Paperwork Burden Reduction)

Description: This program raises awareness among regulating departments and agencies of the regulatory compliance burden on small and medium-sized businesses and this burden's impact on competitiveness through evidence-based research and analysis. The program supports the creation of more effective regulatory frameworks and fosters a business environment that is conducive to innovation and growth.

Expected Result: The overall burden of regulatory compliance faced by small business will be reduced
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Number of businesses that report that the government's paperwork burden reduction initiatives have helped them save time/money

10% increase

Status: Exceeded

69,459 businesses (representing 10.1% of businesses surveyed in the Statistics Canada Survey of Regulatory Compliance Cost) reported that government paperwork burden reduction initiatives implemented over the last 3 years helped save their business time and/or money.

The Statistics Canada Survey is a triennial survey. The 10.1% achievement is based on data collected in the second iteration of the Survey (2008) and reflects businesses' perceptions regarding time and money saved over the last 3 years.

Improving

1.1.5 Investment Review

Description: The program seeks to ensure that investments by foreigners to acquire control of Canadian businesses are likely to be of net benefit to Canada. The purpose of the Investment Canada Act is to encourage investment in Canada by Canadians and non-Canadians that contributes to economic growth and employment opportunities, and to provide for the review of significant investments in Canada by non-Canadians in order to ensure that they are likely to be of net benefit to Canada. This program requires funds to process notifications filed by investors and to complete reviews of transactions under the Act.

Expected Result: Timely processing of foreign investment notifications and applications for review filed by foreign investors under the Investment Canada Act*
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Median time required to certify notifications and process applications

55 days

Status: Not applicable

Median time of 6 days required to certify notifications in 2009–10

No change
Median time of 70 days required to process applications in 2009–10; up from 44 days in 2008–09 Declining

*Non-Canadian investors who acquire control of an existing Canadian business or who wish to establish a new business activity in Canada must submit either a notification or an application for review. When a transaction is not subject to review, a notification must be filed no later than 30 days after implementation of the investment. However, for transactions subject to review, i.e., significant investments, investors must seek approval from the Minister that their investment is likely to be of net benefit to Canada. These transactions cannot be implemented prior to receiving the approval. (return to the text reference note1)

1.1.6 Canadian Intellectual Property Office

Description: This program administers Canada's system of intellectual property (IP) rights, namely patents, trademarks, copyrights, industrial designs and integrated circuit topographies. It grants and registers IP rights as well as disseminates information related to these rights to businesses, educational institutions and Canadians. It is fully cost-recovered from client fees. The program aims to accelerate Canadian economic development by encouraging invention, innovation and creativity in Canada through delivery of IP services and establishment of a competitive administrative IP framework in Canada. Its clients include applicants for IP protection, both foreign and Canadian; users of the IP information; and the Canadian business community.

Expected Result: The delivery and quality of CIPO's services respond to client needs and expectations
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Percentage of overall satisfaction of clients with CIPO's services

80% in 2010

Status: Not applicable

74% of clients were satisfied or very satisfied with CIPO' services (2007–08 National Client Satisfaction Survey). No additional survey has been conducted. Not applicable
Expected Result: Increased awareness and use of intellectual property (IP) by small and medium-sized enterprises (SMEs)
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Percentage awareness and use of IP by SMEs

40% in 2013

Status: Not applicable

Baseline of 36% established in 2006–07. No additional survey has been conducted. Not applicable

Canada' Economic Action Plan — Improving Canada' Competition and Investment Frameworks

Description: Budget 2009 committed to modernizing the Competition Act and the Investment Canada Act to strengthen Canada' economy by protecting consumers and businesses from anti-competitive and deceptive business practices, attracting foreign investment and safeguarding national security.

Expected Result: To modernize the Competition Act and the Investment Canada Act through legislative and regulatory amendments
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Legislative and regulatory amendments to the Competition Act and the Investment Canada Act, tabled, passed and in force

All legislative and regulatory amendments to the Investment Canada Act and Competition Act

Status: Mostly met

Legislation passed. Regulatory amendments to be completed to give force to the Investment Canada Act.

Legislation required to implement this commitment has been passed as part of the Budget Implementation Act, which received royal assent on March 12, 2009. All amendments to the Competition Act are in force. All amendments to the Investment Canada Act are in force except those related to changing the basis for the net benefit review threshold from “asset value” to “enterprise value.” These amendments will come into force once the corresponding regulations are promulgated. Not applicable

1.2 Marketplace Frameworks and Regulations for Spectrum, Telecommunications and the Online Economy

Description: This program encourages business innovation, competition and growth by ensuring that Canada develops, uses and benefits both domestically and internationally from spectrum, information and communications technologies and the online economy. It achieves this by developing domestic regulations, policies, procedures and standards that govern Canada's spectrum and telecommunications industries and the online economy. It also develops standards, promotes global telecommunications and helps facilitate international online trade and commerce through participation in international bilateral and multilateral fora. 

Expected Result: Canada' radiocommunications and telecommunications infrastructure and the online economy are governed by a modern, efficient and effective policy and regulatory framework
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Percentage of policies, legislation and regulations developed, updated or reviewed and consultations conducted as identified in annual branch business plans / strategic plans / operational plans

80% of identified initiatives

Status: Exceeded

92%

Released Canada Gazette Notice for Consultation on the Renewal of Cellular and Personal Communications Services (PCS) Spectrum Licences

Released Canada Gazette Notice for a Consultation on Transition to Broadband Radio Services (BRS) in the Band 2500–2690 MHz

Proposed Electronic Commerce Protection Act (ECPA) introduced in the House of Commons on April 24, 2009

Completed consultations and prepared proposed legislative amendments to Personal Information Protection and Electronic Documents Act (PIPEDA)

Improving

Target was improved (92%) compared to last year' (90%).

Risk Mitigation

There was a risk that Industry Canada would be unable to provide the level of service expected by its Pacific Region clients, as regional offices and headquarters would be contributing technical equipment and staff to the Vancouver 2010 Olympic and Paralympic Winter Games. The demands of the Games required significant spectrum management resources that had to be pulled away from their regular duties . This event also represented an excellent opportunity to showcase the development of new technical equipment and to accelerate the acquisition of specialized skills and expertise.

Industry Canada was able to continue meeting the spectrum-management needs in the Pacific Region by consolidating all spectrum management operations in the lower mainland of British Columbia during the Games period to maximize flexibility in responding to Games and non-Games spectrum issues and, where possible, temporarily reallocating spectrum work to other districts and regions. During the Games themselves, Industry Canada investigated 155 cases of radio interference and unauthorized radio use and was able to resolve, well within service standards, any that might have disrupted public safety, competitions, related events such as the Opening Ceremonies, and ongoing Games operations. Industry Canada also continued to respond to numerous spectrum-related cases affecting existing clients in Metro Vancouver and Whistler. Feedback to Industry Canada from spectrum partners and clients indicated that they were fully satisfied with the Department' spectrum-management role and performance leading up to and during the Games.

Lessons Learned

There is a need to maintain a constant multidisciplinary dialogue with stakeholders to ensure that the policy agenda takes into consideration their views, input and advice. Developing complex policies and legislation, such as ECPA and the amendments to PIPEDA, require close cooperation and ongoing dialogue with numerous government and non-government stakeholders on a wide range of issues. Industry Canada officials and legal counsel consulted with interdepartmental representatives from Department of Justice Canada and Public Safety Canada on issues related to drafting the legislation, and with stakeholders such as industry associations, the financial sector, marketing associations and consumer groups during the parliamentary process. Such ongoing dialogue ensures that all relevant issues are identified and properly addressed while draft legislation is considered by Parliament. It also results in a stronger “buy-in” from as many stakeholders as possible.

1.2.1 Spectrum/Telecommunications Program (Operations and Engineering)

Description: This program encourages efficiency in the Canadian marketplace by managing the radio frequency spectrum and contributing to the orderly evolution of telecommunications networks so that Canadians develop, use and benefit domestically from spectrum and information and communications technologies. This is achieved through the development and implementation of operational policies, procedures, processes, technical standards and international treaties to ensure that Canadians derive maximum social and economic benefits.

Expected Result: An up-to-date and appropriate policy and regulatory framework, domestic and international, for the governance of Canada's radiocommunications and telecommunications infrastructure and to promote a competitive marketplace for telecoms and radiocom services
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Percentage of planned initiatives providing access to new wireless services and technology and improving access for existing services that are started or completed

80% of planned initiatives

Status: Exceeded

86%

Concluded a sealed-bid auction process for air-ground services that generated $2.1 million in revenues

Concluded a sealed-bid auction for licences in the 2.3 and 3.5 GHz bands that generated $124,000 in revenues

New indicator
1.2.1.1 International Telecommunication Union

Description: This program provides an annual membership grant to the International Telecommunication Union (ITU), enabling Canada's participation. The ITU, created in 1865, in which Canada has been a member in its own right since 1932, is the United Nations Specialized Agency responsible for coordinating the global development of telecommunications and is the multilateral forum for the negotiation of binding international agreements on the use of the radio frequency spectrum, for the development of global standards, and for the promotion of all facets of the development of the global communications network. Canada participates in ITU meetings to influence the direction and decision making of the Union. One of Canada's key objectives is to secure Canada's interests in the international regulation of the radio frequency spectrum and international telecommunication regulation to protect Canadian interests in access to spectrum and satellite orbit resources. This includes facilitating communications across Canada and protecting Canadian sovereignty in remote areas through modern digital technologies.

Expected Result: Canadian interests are reflected in UN/ITU operational procedures
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Percentage of ITU operational instruments and procedures that are responsive to Canadian interests

100%

Status: Met all

The Plenipotentiary Final Acts of 2006 modifying the ITU Constitution and Convention and the World Radiocommunication Conferences (WRC) Final Acts of 2007 modifying the ITU Radio Regulations were tabled in November 2009, prior to ratification of the Treaties. No change
1.2.1.2 Spectrum/Telecommunications Management and Regulations

Description: This program facilitates the development and use of world-class information and telecommunications technologies and services through the development of international treaties and agreements, technical standards and regulations, and the certification of communications equipment. It also maximizes the economic and social benefits from the radio frequency spectrum, a limited public resource, by actively promoting its efficient use through the certification of broadcasting facilities and management of the radio spectrum.

Expected Result: Policies, regulations, standards and procedures are in place to enable the introduction of new radiocommunications/telecommunications technologies and services
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Percentage of planned telecommunications and radiocommunications services or applications introduced in the marketplace (e.g., number of licensing initiatives, number of frequency bands, number of technical requirements and number of public consultations)* that are started or completed

80%

Status: Exceeded

100%

Established a framework to periodically review spectrum and radio licence fees

More than 3,700 applications for new telecommunications and radio product registrations processed

Developed policies, standards and technical regulations related to 700 MHz, public safety interoperability, rural broadband, Smart Grid and medical implants

Improving
Expected Result: During times of emergency, telecommunications services are available on a priority basis to first responders, followed by the general public
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Percentage of planned services/programs to alleviate network congestion during emergency (spectrum for public safety agencies, Priority Access Dialing, Wireless Priority Services; participation in and planning of drills/exercises, meetings/forums with telecom industry, government and associations)

80%

Status: Exceeded

100%

Made considerable progress in establishing technical requirements for a permanent Emergency Telecommunications Operations Centre

Updated Emergency Telecommunications Data System

Participated in exercises for Olympics

Held teleconferences and face-to-face meetings with private sector and government stakeholders

Developed agreement in principle for creation of Canadian Senior Telecommunications Advisory Committee

Improving
Expected Result: Canadian interests and requirements pertaining to radiocommunications and telecommunications are reflected in international agreements and standards
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Percentage of planned new/modified mutual recognition agreements (MRAs), ITU standards/ recommendations, and Canada/U.S. agreements that are started or completed

80%

Status: Exceeded

100%

Commenced initial round of negotiations of a MRA draft text with Mexico under North American Free Trade Agreement

Negotiated a binding MRA draft text with Israel as a follow-up to Minister Clement' visit to Jerusalem in November 2009

Negotiated new treaties with the U.S. to facilitate deployment of new wireless systems

Improving

*These initiatives are highly dependent on outside influence (e.g., stakeholders' interests), on factors that may influence progress, relative priority and outcomes throughout the measurement period. (return to the text reference note2)

1.2.1.3 Regional Operations — Spectrum

Description: This program is the main focal point for the front-line delivery of spectrum services directly to clients across Canada. Through a network of field offices across Canada, the five Regions manage the use of a finite public resource to ensure that Canadians have access to modern telecommunications services and to sufficient interference-free spectrum in order to meet their operational requirements. They also manage a number of small departmental programs (less than $1 million) for technology development and communications applications.

Expected Result: Fair and timely access for Canadian citizens, private industry and public sector organizations to radio frequency spectrum (licensed and licence exempt) and information on regulations, policy, procedures and standards, to meet their wireless telecommunication needs
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Percentage of clients who indicate that they are satisfied with the services provided by Regional Offices

80%

Status: Not applicable

As the departmental Public Opinion Research (POR) plan was not approved for 2009–10, we could not conduct the planned survey in that fiscal year. The survey proposal has been submitted for the 2010–11 POR plan. Pending approval of the plan, the survey should be undertaken in 2010–11.

The last survey, in 2005, showed that 79% of our clients were satisfied with the service we had been providing.

Not applicable
Percentage of licence applications processed within service standards

90%

Status: Exceeded

96.8%

Met national service standards at 96.8% with a n average processing time of 21.4 days for the processing of 29,858 applications for 2009–10

Not applicable

In 2008–09, national service standards were met 98.1% of the time with an average processing time of 24.4 days for 28,307 applications. While processing time and number of applications are improving, the percentage of licence applications processed is declining, as the number of licence applications varies year to year.

Expected Result: Compliance with rules and conditions for the use of spectrum
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Percentage of radiocommunications investigations completed within service standards (12 weeks)

90%

Status: Exceeded

96%

Met radiocommunications investigations service standards 96% of the time with an average response time of 30.3 days and 876 investigations in 2009–10.

Improving

In 2008–09, service standards for radiocommunications investigations were met 93.9% of the time with an average response time of 33.4 days and a total of 716 investigations completed. Service levels have been maintained.

1.2.2 Electronic Commerce

Description: This program develops effective legal and policy frameworks to improve confidence in the marketplace by protecting individual privacy and curbing harmful Internet content. To improve market efficiency, it also promotes the conduct of e-business across all sectors of the economy and participates in the facilitation of online trade and commerce internationally.

Expected Result: Personal information and security, and Internet-based trade and commerce, are protected and enhanced through policy and legal frameworks in support of Canadian marketplace requirements
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Percentage of improvement by March 31, 2011, of consumer and business awareness of the need and requirements to secure personal data (compared to 2006–07 level)

20%

Status: Not applicable (target to be met in 2011)

25% for consumers only

Data on business awareness is unavailable since the main data source, Statistics Canada' Survey of Electronic Commerce and Technology, has been terminated. The last year of reference for business data is 2007.

Improving
Expected Result: Canadian industry is aware of, and makes use of, increasingly sophisticated e-business tools
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Percentage of improvement by March 31, 2011, of rates of adoption of e-business in Canada by business and consumers (compared to 2006–07 level)

20%

Status: Not applicable (target to be met in 2011)

17% for consumer awareness

Data on business awareness is unavailable as the main data source, Statistics Canada' Survey of Electronic Commerce and Technology, has been terminated. The last year of reference for business data is 2007.

Improving

1.3 Consumer Affairs Program

Description: This program aims to ensure that consumers have a voice in the development of government policies and are effective marketplace participants. It is an element of the Department's consumer affairs role under the Department of Industry Act, which directs the Minister to promote the interests and protection of consumers. There are two aspects of the program that are strongly interlinked. Priority consumer issues are identified for the development and dissemination of consumer information and awareness tools. These priorities also guide research and analysis undertaken for policy development. The program is delivered in collaboration with provincial and territorial governments, as well as non-profit consumer organizations.

Expected Result: Consumer interests are represented in the marketplace and in the development of government policies
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Number of new outreach initiatives to assist consumers in accessing information and tools that will help them make informed purchasing decisions

1

Status: Met all

An outreach campaign, consisting of 9 articles on basic buying tips and elements to consider before and after a purchase, was distributed electronically to over 4,200 news and web editors across Canada.

Declining

In 2008–09, 3 separate outreach campaigns resulted in 25 articles being distributed through these channels.

Number of government policies and/or legislation developed, updated or reviewed by the Office of Consumer Affairs (OCA)

2

Status: Exceeded

Facilitated 3 Order-in-Council processes to assist provinces (Ontario, Alberta and British Columbia) in adopting provincial payday lending regulations

1.3.1 Consumer Information

Description: This program uses information and research to provide objective advice that will enhance consumers' ability to make informed choices about products and services in the marketplace. It develops and publishes consumer information products and tools, both print and online, itself and in collaboration with federal, provincial and territorial consumer protection agencies. It employs networks and partnerships to identify priority consumer issues for product development, confirm content, and disseminate outputs.

Expected Result: Office of Consumer Affairs (OCA) provides consumers with relevant consumer information and tools to make well-informed decisions in the marketplace
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Number of new consumer information products published per year

3

Status: Exceeded

OCA published 9 new consumer products in 2009–10:

Improving

In 2008–09, 8 consumer information products were published.

Percentage increase in the number of media stories referencing OCA communications products per year

2%

Status: Not met

In 2009–10, OCA was referenced in 52 traditional media stories on products, services and/or programs. This was a drop of 71% from 2008–09, when OCA was referenced in 180 media stories.

OCA had significant social media coverage in 2009–10, which cannot be measured in the same way as traditional media coverage. OCA received no social media coverage in 2008–09.

The target to increase the number of media stories referencing OCA communications products by 2% in 2009–10 was set when it was believed OCA would be launching a new consumer education product on cellphones in 2009–10. When the initiative was cancelled in June 2009, OCA was unable to run its planned media outreach campaign.

An alternate consumer education media outreach project was developed in winter 2010; pick-up for this initiative will be seen and measured only in 2010–11.

Declining
Number of communications activities deployed in partnership with horizontal partners per year

1

Status: Exceeded

OCA, as the secretariat for the joint federal, provincial and territorial Consumer Measures Committee (CMC), implemented 6 communications activities:

  • Published the 2008–09 Canadian Consumer Handbook
  • Developed an interactive application for the Canadian Consumer Handbook, for release in 2010–11
  • Redistributed the CMC Be Informed About… literacy series to Canadian literacy organizations
  • Developed a new Build Your Buying Skills information series, for release in 2010–2011
  • Undertook an environmental scan of current gaps in consumer information to help the Committee plan for future priorities and activities
  • Released a new communications product, Rebates: The Real Deal, rebate promotions, in collaboration with the Competition Bureau

Improving

In 2008–09, 2 communications activities were deployed in partnership with horizontal partners.

1.3.2 Consumer Policy

Description: This program contributes to effective consumer protection across Canada through research and analysis on emerging issues, and through collaboration with provincial and territorial governments under Chapter 8 of the Agreement on Internal Trade on the development and harmonization of consumer protection rules. The program provides research, analysis and policy development in support of federal, provincial and territorial consumer-related measures. It promotes harmonization of consumer measures and collaboration between governments both domestically and internationally. It provides contribution funding to non-profit consumer organizations to assist them in providing meaningful, evidence-based input to public policy in the consumer interest.

Expected Result: Collaborative consumer research and analysis that is coordinated or led by OCA contributes to federal, provincial and territorial government policy decision making
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Number of instances per year where collaborative consumer research and/or analysis under Chapter 8 of the Agreement on Internal Trade contributes to intergovernmental policy discussions

2

Status: Exceeded

3

A research paper on the alternative consumer credit market was reviewed by the CMC in November 2009, for consideration by federal, provincial and territorial consumer deputy ministers in 2010–11.

Collaborative research on approaches to improving compliance with consumer protection laws and regulations was ongoing and will carry over to 2010–11.

Collaborative analysis of consumer credit reporting rules contributed to ongoing negotiation of potential harmonized measures.

Improving
Number of consumer research projects per year funded through the OCA Contributions Program

25

Status: Exceeded

28 research projects were funded and completed by 8 different organizations.

Declining

In 2008–09, 29 research projects were funded.

Number of projects per year funded through the Contributions Program to encourage consumer and voluntary organizations to reach financial self-sufficiency or work collaboratively on joint plans and initiatives to address major consumer issues

3

Status: Exceeded

7 development projects were funded and completed, 4 of which supported strengthening the organizations' capacity to work collaboratively in the interest of Canadian consumers.

Improving

In 2008–09, 5 development projects were funded.

1.4 Competition Law Enforcement and Advocacy

Description: This program is an independent law enforcement agency that contributes to the prosperity of Canadians by protecting and promoting competitive markets and enabling informed consumer choice. The Competition Bureau is responsible for the administration and enforcement of the Competition Act, the Consumer Packaging and Labelling Act, the Textile Labelling Act and the Precious Metals Marking Act. Headed by the Commissioner of Competition, the organization investigates anti-competitive practices, promotes compliance with the laws under its jurisdiction and advocates in favour of market forces.

Expected Result: Competitive markets and informed consumer choice
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Dollar savings to consumers from Bureau actions that stop anti-competitive activity

Increase over current dollar savings (estimated target at $330 million)

Status: Mostly met

$281 million

Estimated overcharges to consumers (or economic harm) for the duration of the infraction, prior to Bureau actions concluded in fiscal year 2009–10. This is a conservative estimate based on similar methodologies used by antitrust agencies in other countries.

Improving

In 2008–09, dollar savings to consumers were estimated at $254 million.

Percentage of economy subject to market forces

Increase or maintain current percentage (approximately 82% of GDP)

Status: Met all

Approximately 82% of the Canadian gross domestic product (GDP) is subject to market forces.

According to a study conducted by the Competition Bureau in 2005, the proportion of economic activity covered by the Competition Act has increased by 10% since its enactment in 1986.

No change

In 2008–09, approximately 82% of GDP was subject to market forces.

Lessons Learned

On May 1, 2009, an audit was completed on the Bureau' risk management systems, including information management (Audit of the Competition Bureau). The audit found “moderate weaknesses, with moderate risk exposures related to control and governance processes that require management attention.” The Bureau responded to the audit recommendations with a Management Action Plan and is implementing mitigation strategies to the satisfaction of the Departmental Audit Committee.

1.4.1 Competition Law Enforcement

Description: This program employs a variety of educational, compliance and enforcement instruments (collectively known as the conformity continuum) to provide a balanced approach to protecting competitive markets. The conformity continuum operates from the assumption that most businesses and their managers prefer to comply with the law rather than become involved in enforcement proceedings. Program funds cover the cost of promoting and obtaining compliance with the legislation under the Competition Bureau's jurisdiction. This includes the cost of bulletins and other information explaining the law, warning letters, compliance visits, adversarial proceedings and the investigative costs underlying these. It contributes to the prosperity of Canadians by protecting competitive markets and enabling informed consumer choice.

Expected Result: Companies/individuals cease their anti-competitive conduct following compliance interventions conducted by the Competition Bureau
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Percentage of recidivists or relapse of individuals into anti-competitive behaviour (e.g., bid rigging, price fixing and mass-marketing fraud) following a Bureau intervention

5%

Status: Exceeded

0%

Percentage is calculated using the number of parties against whom we have had a formal resolution during the past 5 years. The target is set at 5%; a status of Exceeded is met when the percentage falls below 5%.

Improving

In 2008–09, the percentage of recidivists was 0.06%.

Number of companies that change behaviour as a result of a Bureau compliance intervention

40

Status: Exceeded

193

Number of Alternative Case Resolutions, Consent Prohibition Orders, Convictions, Consent Agreements and s. 74.1 Orders (companies and individuals)

The Bureau undertook a successful initiative regarding concerns over potentially misleading labelling and advertising in the marketplace with respect to textile articles labelled "bamboo." As part of this initiative, the Bureau contacted a variety of retailers, importers, manufacturers, sellers, processors and finishers to inform them of its concerns regarding certain textile labelling and advertising. The Bureau' actions included letters and emails, as well as direct discussions, on-site inspections and in one instance, independent testing.  As a result, there is a variance between 2009–10 results and the target.

  • 165 – Fair Business Practices Branch (FBPB)
  • 8 – Mergers
  • 3 – Civil Matters Branch
  • 17 – Criminal Matters Branch

Improving

In 2008–09, 82 companies changed behaviour.
Expected Result: Canadians recognize that anti-competitive activity is unlawful and harmful
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Number of immunity applicants

10

Status: Exceeded

15

Under the Bureau' Immunity Program, the first party to disclose to the Bureau an offence not yet detected, or to provide evidence leading to the filing of charges, may receive immunity from the Director of Public Prosecutions, provided the party fully cooperates with the Bureau.

Improving

In 2008–09, there were 11 immunity applicants.

1.4.2 Advocacy in Favour of Market Forces

Description: This program contributes to the prosperity of Canadians by promoting competitive markets. These activities include conducting market studies, providing advice to government legislators and policy-makers, and intervening before federal and provincial boards, commissions and tribunals to encourage reliance on market forces to obtain policy or regulatory objectives.

Expected Result: Removal of unnecessary regulation and no implementation of new restrictions on competition
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Number of market restrictions removed

3

Status: Exceeded

4

Generic Drug Study: The Bureau' generic drug studies were widely cited by provincial government officials in support of drug plan reforms.

Remote Dispensing: In April 2009, the Bureau sent a letter to the Ontario College of Pharmacists and the Ontario government in support of legislation to allow remote dispensing of prescription drugs subject to its meeting related health and safety concerns. The remote-dispensing legislation received royal assent on December 15, 2009.

Professions Study — Follow-up: Changes to Chapter 7 (Labour Mobility) of the Agreement on Internal Trade took effect on April 1, 2009. In addition, a Mobility Agreement for Canadian Pharmacists was signed in July 2009 by all provinces, Yukon and Northwest Territories.

Extended Producer Responsibility / Waste Diversion Ontario: There is an ongoing government effort to promote the recycling of designated waste throughout Canada through the imposition of extended producer responsibility legislation. Ontario has been spearheading these efforts and has openly sought the Competition Bureau' input in designing programs that meet environmental targets while promoting pro-competitive outcomes.

Improving

3.4 Additional Performance Results and Risk Analysis

Strategic Outcome: Science and Technology, Knowledge, and Innovation are Effective Drivers of a Strong Canadian Economy

2.1 Canada' Research and Innovation Capacity

Description: This program activity supports the Minister of Industry in his/her responsibilities related to science and technology. It sets strategic direction of policies and programs in support of science, technology and innovation in Canada. It works with other government departments and external stakeholders (from the private and public sectors) to foster an environment that is conducive to innovation and promote scientific excellence and industrial competitiveness.

Expected Result: Science, technology and innovation policy frameworks to enhance Canada's research and innovation capacity
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Number of science, technology and innovation (ST&I) outreach activities with other government departments, agencies and external stakeholders

20

Status: Exceeded

Industry Canada led or participated in 21 key outreach activities involving other science-based departments and agencies, provincial and territorial counterparts, and stakeholders at home and abroad to advance Canada' science and technology (S&T) agenda and provide the government with a strong foundation for policy development. New indicator

Risk Mitigation

The Department needs to ensure the confidence of Canadians in its management of investments in high-risk, technology and innovation projects that generate economic and social benefits. Public research and development investments in organizations with a sound policy rationale require the Department to clearly state its objectives when investing in these activities. Strong governance and oversight practices, robust risk management, audit activities and effective communication are currently being used to help mitigate this risk.

2.1.1 Government Science and Technology (S&T) Policy Agenda in Partnership with Key Stakeholders

Description: This program sub-activity supports ST&I to improve Canada's research and development capacity. This includes positioning ST&I in the context of government policy announcements, developing policies and supporting programs with regard to highly qualified people, direct and indirect costs of research, and research infrastructure (including networks and centres of excellence). This is done in partnership with other government departments (particularly science-based departments and agencies) and in consultation with private sector stakeholders, universities and colleges, and provincial governments. This program also manages funding agreements with the Council of Canadian Academies (CCA), the Canada Foundation for Innovation (CFI), the Canadian Institute for Advanced Research (CIFAR), Genome Canada, the Pierre Elliott Trudeau Foundation (PET), CANARIE, Precarn, Perimeter Institute, and seven centres of excellence outlined in Budget 2007. These are the Brain Research Centre, Canada' School of Sustainable Energy, the Li Ka Shing Knowledge Institute, the Heart and Stroke Foundation Centre for Stroke Recovery, the Montreal Neurological Institute, the National Optics Institute and the Life Sciences Research Institute.

Expected Result: Effective, aligned and coordinated investment in research and development activities and infrastructure, highly qualified personnel development, innovation support and commercialization of research and development
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Number of reports and/or consultation papers per year related to R&D and investments produced and disseminated internally and externally to the government

10 or more

Status: Exceeded

Industry Canada published Mobilizing Science and Technology to Canada's Advantage: Progress Report 2009 providing a summary of achievements since the Strategy' implementation in 2007. In addition, the Department produced 13 reports on domestic and international S&T data for internal use or for industry, academia and related stakeholders. New indicator
Percentage of foundations that comply with their funding agreement

100%

Status: Met all

100%

All 17 foundations were in compliance with their funding agreement.

New indicator
Expected Result: Science and technology policies in the federal government that promote world-class excellence, further collaborations and enhance partnerships with the federal S&T community and other key players that support Canada's domestic and international S&T interests
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Number of collaborative research and analysis projects undertaken per year with the federal S&T community and other key stakeholders who support Canada's domestic and international S&T interests

3 or more  

Status: Exceeded

Through work with partners in the academic community and other stakeholders in the government, industrial and non-profit sectors, 4 research projects were completed to provide empirical support for policies and programs related to S&T in Canada. Not applicable

2.1.2 Science, Technology and Innovation Council Secretariat

Description: This program sub-activity supports the activities of the Science, Technology and Innovation Council (STIC). STIC is an independent advisory body that provides the Government of Canada with external policy advice to the Minister on science and technology (S&T) and innovation issues, and produces regular national reports that measure Canada's S&T performance against international standards of excellence. This external advice helps inform government policy development and decision making.

Expected Result: High-quality research, analytic, communications and administrative services of the STIC Secretariat advance the Council's work leading to informed advice on ST&I to the government
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Documents the Secretariat prepares for the Council and its working groups to advance their deliberations on ST&I issues are accepted and well received by the Council and enable them to make informed decisions.

4*

Status: Exceeded

Documents and analyses were prepared leading to 5 advice letters and 1 State-of-the-Nation report. No change

*Based on assessment of the Council's requests for advice and method of operations in year one. (return to the text reference note3)

Canada' Economic Action Plan — Canada Foundation for Innovation

Description: The Canada Foundation for Innovation (CFI) is an independent corporation created by the Government of Canada to fund research infrastructure. CFI' mandate is to strengthen the capacity of Canadian universities, colleges, research hospitals and not-for-profit research institutions to carry out world-class research and technology development that benefits Canadians.

Expected Result: To accelerate investments in leading-edge facilities and equipment
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Total value of approved projects under the 2009 Leading Edge and New Initiatives Fund competition

$150 million

Status: Met all

133 projects valued at $666 million were approved as a result of the 2009 competition; 28 of these projects were funded by the $150 million in new funding. Not applicable

Canada' Economic Action Plan — Knowledge Infrastructure Program

Description: The Knowledge Infrastructure Program (KIP) is an initiative from the EAP aimed at stimulating economies in local communities by accelerating repairs, maintenance and undertaking new construction at post-secondary institutions. This initiative was implemented through contribution agreements with the provinces and territories, and in some cases directly with institutions. External funding from the provinces and territories and recipient institutions was leveraged to complete these projects.

Expected Result: Provide economic stimulus in local economies across Canada through infrastructure investments at post-secondary institutions
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Total value of approved projects at colleges and universities

$2 billion

Status: Met all

A total of 536 projects were approved, for a total of $1,999,949,149 in federal funding. Funding from provincial and territorial governments and other sources totalled an additional $3,016,309,331 to provide economic stimulus at post-secondary institutions in communities across Canada. Not applicable

Canada' Economic Action Plan — Institute for Quantum Computing

Description: The Institute for Quantum Computing (IQC) was founded with the vision to be a world leader in quantum information science; and to create new technology and applications that will benefit society and become the new engine of economic development in the 21st century. The Institute will be funded through a grant of up to $50 million that supports the construction of a new building for the IQC, a world-class research institute devoted to foundational issues in quantum information sciences and technology, operated by the University of Waterloo. The funding will also support the operations of the IQC, including the purchase of necessary small equipment, the recruitment and retention of highly qualified personnel and support staff, and scientific outreach activities.

Expected Result: Support the construction of a new building, the operation of the IQC and scientific outreach activities
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Construction of the new IQC building completed

Completed by March 31, 2011

Status: Met all*

Construction of the new facility is ongoing and is on schedule for completion by early 2011. Not applicable

*Progressing on track to achieve this target by March 31, 2011. (return to the text reference note4)

2.2 Communications Research Centre Canada

Description: Communications Research Centre Canada (CRC) conducts research on advanced telecommunications and information technologies to ensure an independent source of advice for public policy and to support the development of new products and services for the information and communications technologies (ICT) sector. Research projects are done through a combination of in-house activities, tasks performed for other government departments on a cost-recovery basis, and partnerships with industrial and academic organizations. The work is done to provide an insight into future technologies to assist Industry Canada in developing telecommunications policies and regulations, to improve decision making related to ICT by other government departments, and to close the innovation gap by transferring new technologies to Canadian small and medium-sized enterprises.

Expected Result: Industry Canada and other government organizations receive high quality, research-based technical inputs to develop telecommunications policies, regulations and standards and to support government operations
Performance Indicator Target and Performance Status Results and Performance Summary Trend
A client satisfaction survey (on content, timeliness and usefulness) related to CRC technical inputs and advice used to develop telecommunications policies, regulations, programs and standards

80% or higher

Status: Not applicable

No formal client satisfaction survey was undertaken during the year. CRC provided over 40 contributions to Industry Canada and international standards organizations (such as the Institute of Electrical and Electronics Engineers (IEEE) and the ITU) in the form of technical briefs and workgroup participation. Not applicable
Expected Result: Canadian companies use CRC-developed technologies to enhance their product lines
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Increase in total sales revenues every 5 years of Canadian communications companies with a link to CRC, compared to market averages

20%

Status: Not applicable

A study of CRC' economic impact is undertaken every 5 years, with the next study due in 2010–11. The last study by an external consultant (2005–06) pointed to $1.6 million in annual sales revenues from CRC spinoff companies, and cumulative industry sales of $520 million resulting from CRC IP licences. Not applicable

Risk Mitigation

The Shirleys Bay research campus in the west end of Ottawa hosts eight different government laboratories, including those of the CRC, Industry Canada' Certification and Engineering Bureau Laboratory, the Canadian Space Agency, Defence Research and Development Canada, and four other Department of National Defence centres. Industry Canada has custodial responsibility for the campus and, as such, effectively acts as the landlord. There was a risk that aging campus infrastructure would affect the operations of Industry Canada and other government department (OGD) partners.

The risk is being mitigated with the development of a multi-year capital plan to address critical infrastructure problems. In spring 2009, as part of Canada' EAP, Treasury Board awarded CRC $5.36 million to complete a campus infrastructure upgrade project composed of five sub-projects over a two-year time frame. This investment will help protect Industry Canada' capital assets, address some health and safety issues and will reduce future repair costs and mitigate risks of requiring larger ad hoc repairs. A strategy to provide a more permanent source of capital funding is being developed.

Lessons Learned

The recommendations of the November 2009 Follow-up Final Report of Management of Communications Research Centre (CRC) Building Systems (2006), the Audit Report, and the experience with the multi-year nature of Canada' EAP have demonstrated that the Treasury Board-recommended model for managing real property assets is effective and that projects can be managed more effectively using a multi-year approach.

2.2.1 Information and Communications Technologies Regulations and Standards

Description: This program conducts research and development (R&D) on innovative concepts, systems and enabling technologies to investigate the convergence of telecommunications systems and to improve the security, interoperability and reliability of communications networks in Canada. The program ensures an independent source of advice and knowledge to Industry Canada for public policy purposes, such as the development of standards and regulations, security of communications networks, and the deployment and use of broadband communications infrastructure. The work assists Industry Canada in its role as telecommunications regulator and also contributes to maintaining Canada's position in international telecom standards organizations.

Expected Result: Awareness by policy-makers, regulatory committees, standards organizations and program development sectors of new communications technical developments
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Number of CRC technical inputs provided by groups developing programs related to the telecommunications sector

8 or more

Status: Exceeded

40

CRC provided over 40 contributions to Industry Canada branches, regional operations and international standards organizations (IEEE and ITU) in the form of technical briefs, reports, workgroup participation and enhancements to equipment used for spectrum monitoring.

Not applicable

Information from year to year is not correlated due to the nature of research activities, so trends can be misleading.

2.2.2 Information and Communications Technologies for Other Federal Departments

Description: This program provides scientific knowledge and expertise to major government clients in selected areas of ICT application such as national defence, public safety and space-based communications. This information is used by clients who are not as familiar with communications technologies to improve their decision-making and operational capability related to ICT procurement and deployment. Much of the work done by this program is on a cost-recovery basis.

Expected Result: Canadian government departments and agencies (Department of National Defence, Canadian Radio-television and Telecommunications Commission, Canadian Space Agency) make well-informed decisions on new communications technologies
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Level of funding received from other government departments to conduct research and testing on communications technologies

$5 million or more  

Status: Exceeded

$7.27 million

  • Defence Communications Program: $6.47 million
  • Canadian Space Agency: $782,610
  • Other government agencies: $19,950

Not applicable

Information from year to year is not correlated due to the nature of research activities, so trends can be misleading. The number also fluctuates with client priorities and budgets.

Number of CRC-led OGD technology development programs

1 or more

Status: Met all

1

CRC led and managed 1 program, Defence Communications, which included many projects.

Not applicable

Information from year to year is not correlated due to the nature of research activities, so trends can be misleading.

Number of OGDs and international departments' technology development programs involving CRC participation

5 or more

Status: Exceeded

14

CRC was involved in many communications research projects with 14 OGDs (other than Industry Canada) and international departments.

Not applicable

Information from year to year is not correlated due to the nature of research activities, so trends can be misleading.

2.2.3 Innovation and Technology Transfer

Description: This program identifies and closes innovation gaps in Canada's ICT sector by developing new intellectual property, engaging in industry and academic partnerships, building technical intelligence, supporting high technology small and medium-sized enterprises (SMEs), and working with research organizations across Canada and internationally. The work is undertaken to explore new areas of communications technology which may be useful for future Canadian requirements and to assist SMEs in acquiring knowledge that would be otherwise difficult to obtain. Most of the work is done in-house or in partnership with industrial or academic organizations.

Expected Result: Small and medium-sized Canadian telecommunications companies realize industrial benefits
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Percentage of small and medium-sized Canadian telecommunications companies that report having realized benefits through access to CRC's intellectual property portfolio

100%

Status: Mostly met

97%

200 Canadian companies have active licences with CRC. 97% reported making use of CRC' technologies as evidenced by royalty payments.

New indicator
Expected Result: The Canadian telecommunications sector is aware of, and has access to, CRC's intellectual property portfolio
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Number of research partnerships per year between CRC and private sector, academic organizations, and national and international research organizations

80 or more  

Status: Mostly met

72

There were 72 active research partnerships including those with the private sector, academic organizations, national research organizations and international research organizations. Of these, 31 were new research partnerships.

Improving

Canada' Economic Action Plan — Modernization of Federal Laboratories

Description: The necessary maintenance, repair and upgrade of the Communications Research Centre's Shirley's Bay government research campus in the west end of Ottawa which hosts eight different government laboratories will be undertaken. This investment will help protect these capital assets, as the investment made will reduce the repair costs and risk of larger ad hoc repairs. The health and safety of the staff on the campus will also be addressed with this investment.

Expected Result: Reduce the risk of larger ad hoc repairs and ongoing repair costs
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Percentage of infrastructure installed

90%

Status: Exceeded

97% for 2009–10

This is a 2-year project scheduled to end in 2010–11. All construction for 2009–10 was completed as planned. The remaining work, representing approximately 53% of the entire project, will be completed in 2010–11.

Not applicable

2.3 Knowledge Advantage in Targeted Canadian Industries

Description: This program provides value-added knowledge and expertise about Canadian industries to create conditions for research and development and commercialization, to support innovation, to encourage and promote technologies, and to strengthen synergies between industry and government.

Expected Result: Strong engagement, knowledge sharing and program delivery to enhance capacity for R&D, technology adaptation, commercialization and innovation in targeted industries
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Percentage of completed initiatives* designed to increase knowledge and innovation in targeted Canadian industries, as a proportion of initiatives identified in the sector' business plan

80%

Status: Exceeded

100%

All initiatives designed to increase knowledge and innovation in targeted Canadian industries were completed as planned.

New indicator

* Initiatives include joint policy initiatives, frameworks, strategies, consultations, trade shows, knowledge products, publications and websites. (return to the text reference note52)

2.3.1 Knowledge Advantage in Aerospace, Defence and Marine Industries

Description: This program provides value-added knowledge and expertise (i.e., information products, analyses, policy development) to support innovation, to stimulate research and development, and to accelerate commercialization in the aerospace, defence and marine industries and related emerging technologies.

Expected Result: Comprehensive understanding of developments, trends and issues in the aerospace, defence and marine industries which influence government policies and programs which affect these industries' abilities to innovate
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Number of up-to-date summary documents (i.e., summary decks, Industrial Intelligence Profiles and company profiles) that analyze the trends and performance of firms in the aerospace, defence and marine sectors

46

Status: Exceeded

Creation of 53 summary documents, such as industry profiles and analysis reports on Canadian companies in the aerospace, defence and marine sectors New indicator
Number of companies and post-secondary institutions engaged in technology roadmaps

150

Status: Exceeded

160 companies and post-secondary institutions were involved in the development of technology roadmaps to identify and prioritize technologies to succeed in the future, e.g., the Canadian Aerospace Protective Coatings Technology Roadmap, the Canadian Aerospace Composite Technology Roadmap. New indicator
Direct, face-to-face interaction between Aerospace, Defence and Marine Branch officials and companies in the Canadian aerospace, defence and marine sectors, including the firms that comprise the top 80% of each sector based on revenue

100

Status: Exceeded

677 direct face-to-face contacts with company officials occurred as a result of evaluations of applications under the Strategic Aerospace and Defence Initiative (SADI), company involvement in the Joint Strike Fighter (JSF) initiative, financing provided under the Structured Financing Facility (SFF), and ongoing interactions and increased consultations with companies as a result of 7 policy changes to the Industrial and Regional Benefits (IRB) program. New indicator

2.3.2 Bombardier CSeries Program

Description: This program supports the Canadian aerospace industry's goal of developing new technologies for the next generation of more fuel-efficient and safe commercial aircraft.

Expected Result: The development of new aerospace technologies that will lead to more fuel-efficient and safer aircraft
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Number of R&D positions maintained and created

900

Status: Mostly met

861 positions were maintained and created. The Contribution Agreements for the Bombardier CSeries and Strategic Technologies projects were signed in March 2009. Bombardier is continuing to conduct R&D under these two projects. New indicator

2.3.3 Knowledge Advantage in Automotive and Transportation Industries

Description: This program provides value-added knowledge and expertise (i.e., information products, analyses, policy development) to support innovation, to stimulate research and development, and to accelerate commercialization in the automotive and other transportation industries and related emerging technologies.

Expected Result: Comprehensive understanding of developments, trends and issues in the automotive and transportation industries that influence government policies and programs that affect the industry's ability to innovate
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Number of possible options identified for federal policy initiatives that address the major issues affecting the growth and competitiveness of the Canadian automotive sector

4

Status: Exceeded

Engaged top industry analysts, academics and automotive experts to complete 16 consultations, reports and studies that covered broad topics, including market analysis, policy, investment and industry analytics, in areas including clean diesel and automotive parts New indicator

2.3.4 Automotive Innovation Fund

Description: The Automotive Innovation Fund (AIF) supports strategic, large-scale, R&D projects in developing innovative, greener and more fuel-efficient vehicles.

Expected Result: Enhanced capacity for automotive research and development in order to position Canada's automotive industry to be able to meet the demands for cars of the future
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Number of projects involving private sector investments of at least $300 million under the AIF that contribute to Canada's capacity to develop innovative, greener and more fuel-efficient vehicles

1 or more  

Status: Met all

1 Contribution Agreement signed

1 Contribution Agreement monitored

New indicator

2.3.5 Knowledge Advantage in Life Science Industries

Description: This program provides value-added knowledge and expertise (i.e., information products, analyses, policy development) to support innovation, to stimulate research and development, and to accelerate commercialization in the life science industries and related emerging technologies.

Expected Result: Comprehensive understanding of developments, trends and issues in the life science industry that influence government policies and programs affecting this industry's ability to innovate
Performance Indicator Target and Performance Status Results and Performance Summary Trend

Percentage of factors that affect innovation in Canadian life science companies taken into consideration in the development of policies and programs, such as

  • tax incentives for R&D
  • regulatory environment (e.g., approval times)
  • industry structure (e.g., alliances, venture capital deals)
  • industry financial health
  • strength of product pipelines
  • trade agreements

60%

Status: Exceeded

4 out of 6 factors (industry financial health, industry structure, regulatory environment, and strength of product pipelines) have been considered at least once during the development of policies and programs affecting life science companies. New indicator

2.3.6 Knowledge Advantage in Resource Processing Industries

Description: This program provides value-added knowledge and expertise (i.e., information products, analyses, policy development) to support innovation, to stimulate research and development, and to accelerate commercialization in the resource processing industries and emerging technologies.

Expected Result: Comprehensive understanding of developments, trends and issues in the resource processing industries that influence government policies and programs affecting the ability of these industries and companies to innovate
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Number of national and international committee meetings

25

Status: Exceeded

61 national and international committee meetings occurred.

These include the International partnership for the Hydrogen Economy, Asia–Pacific Partnership (APP) Steel Task Force, Canada Wood Advisory Committee and the Organisation for Economic Co-operation and Development Steel Committee.

New indicator
Number of roadmaps, sector profiles and other strategic information tools

5 or more

Status: Exceeded

26 information tools were initiated or completed, such as the Canadian Nuclear Industry Capabilities Guide 2009–2010, the Canadian Hydrogen and Fuel Cell Sector Profile 2009 and a Wind Technology Roadmap. New indicator

2.3.7 Knowledge Advantage in Service and Consumer Products Industries

Description: This program provides value-added knowledge and expertise (i.e., information products, analyses, policy development) to support innovation, stimulate research and development, and accelerate commercialization in the service and consumer products industries and related emerging technologies.

Expected Result: Comprehensive understanding of developments, trends and issues in the service and consumer product industry that influence government policies and programs affecting this industry's ability to innovate
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Number of cooperative projects that will broaden and deepen stakeholder relationships

3

Status: Exceeded

4

Projects included a contract to support secretariat services for the Technology Roadmap (TRM) for Value-Added Textiles. The Secretariat manages and administers the implementation phase of the TRM Action Plan in order to assist the textile industry to adopt the report's recommendations and to communicate with all TRM stakeholders, while keeping Industry Canada and other government partners updated on the industry's progress.

Established a collaborative research initiative program for service business functions leading to 3 separate projects:

I – Green Supply Chain Management: Logistics & Transportation Services — A Canadian Perspective  

Green Supply Chain Management: Retail Chain & Consumer Product Goods — A Canadian Perspective  

Green Supply Chain Management: Manufacturing — A Canadian Perspective

II – Design for Environment: Innovating to Compete

III – State of Design: The Canadian Report 2010

New indicator
Number of research reports reflecting results of evidence-based analysis on key sub-sectors

26

Status: Exceeded

37 research reports, including 5 that provide an in-depth assessment of trend, key performance indicators and best-in-class analysis

Prepared an analytical deck on Greenhouse Gas Regulation-Sector Analysis that was delivered and discussed with assistant deputy ministers

New indicator

2.4 Industrial Technologies Office – Special Operating Agency

Description: The Industrial Technologies Office (ITO) is a special operating agency within Industry Canada that advances leading-edge R&D by Canadian industries. It helps to accelerate innovation by Canadian industries through R&D investments, producing social and economic benefits for all Canadians. The agency currently delivers the Strategic Aerospace and Defence Initiative (SADI) and also manages projects previously contracted through the Technology Partnerships Canada (TPC) program and the Program for Strategic Industrial Projects (PSIP). The special operating agency status was established by Treasury Board in 1997.

Expected Result: Industrial Technologies Office (ITO) will leverage leading-edge research and development in targeted Canadian industries
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Dollar of private sector investment leveraged per dollar of agency investment in ITO projects

$2.00

Status: Mostly met

ITO leveraged $1.95 during 2009–10. Declining (from last year' result which was $2.00)

2.4.1 Strategic Aerospace and Defence Initiative

Description: This program provides repayable contributions to the aerospace and defence (A&D) sector to support strategic industrial research and pre-competitive development projects. The program helps to encourage the development of innovative products and services; enhance the competitiveness of Canadian A&D firms; and foster collaboration between research institutes, universities, colleges, and the private sector.

Expected Result: Increased private sector investment in innovative and competitive aerospace, defence, space and security firms
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Dollars of private sector investment leveraged per dollar of Strategic Aerospace Defence Initiative (SADI) investment

$2.00

Status: Mostly met

SADI leveraged $1.95 during 2009–10. Declining
Expected Result: Collaborative partnerships in research and development among aerospace, defence, space and security industries and research institutes, universities, colleges and/or non-profit organizations
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Number of SADI projects involving collaborative partnerships among aerospace, defence, space and security researchers

6

Status: Exceeded

SADI has 8 new collaborative partnership projects in place with universities and research centres across Canada. Improving

2.4.2 Program for Strategic Industrial Projects

Description: This program provides the mechanism to fund larger strategic projects within the automotive sector (in whole or in part) from the fiscal framework. Strategic investments in industrial research, pre-competitive development, and technology adaptation and adoption within the automotive sector will help to increase economic growth within Canada and improve sustainable industrial development.

Expected Result: Increased private sector investment in R&D activities in the automotive industry
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Dollars of private sector investment leveraged per dollar of Program for Strategic Industrial Projects (PSIP) investment

$2.00

Status: Not met

No new projects were contracted. Not applicable

2.4.3 Technology Partnerships Canada — Research and Development Program

Description: This program provides funding to support strategic R&D and demonstration projects in the A&D, environmental and enabling technologies sectors to produce economic, social and environmental benefits for Canadians. The terms and conditions of the program expired on December 31, 2006; however, the program continues to manage existing contribution agreements for previously contracted projects.

Expected Result: Increased private sector investment in R&D activities in the A&D, environmental and enabling-technology industries
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Dollars of private sector investment leveraged per dollar of Technology Partnerships Canada (TPC) – R&D program investment

$2.00

Status: Not met*

This program closed to new investments on December 31, 2006. Existing contribution agreements are expected to be monitored and managed until 2034–35. Disbursements are made to eligible claims. Not applicable

*As no new investments have been made since December 31, 2006, the current performance indicator cannot be measured. A new indicator is under development. (return to the text reference note5)

3.4 Additional Performance Results and Risk Analysis

Strategic Outcome: Competitive Businesses are Drivers of Sustainable Wealth Creation

3.1 Entrepreneurial Economy

Description: This program raises awareness across government of the challenges faced by small businesses and recommends policy options and delivers programs to enhance small business growth and competitiveness and to encourage entrepreneurship. 

Expected Result: Small and medium-sized enterprise (SME) use of government business related information, programs and services, and facilitated compliance for business
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Increase in number of clients using the Canada Business Network (CBN) website over the previous year

10%

Status: Not met

In previous years, CBN web traffic did not filter out non-user traffic (such as search bots). A new methodology was introduced in 2009. If this methodology had been applied to last year' results, total volume would have been 3,077,921 in 2008 and 2,660,588 in 2009, a decline of 13.6%. In addition, a new website was launched in October 2009 for CBN, reducing the number of websites from 14 to 1. This resulted in a reduction in referrals to the website by external search engines, which is typical, but temporary, following major changes to a site.

Declining

Decrease of 13.6% from number of clients using the site in 2008–09

Expected Result: Integrated business permit and licence information from all levels of government provides value to clients across Canada
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Percentage of clients that indicate satisfaction with the services provided

80%

Status: Not applicable

Due to public opinion research restrictions, BizPaL was unable to complete a client satisfaction survey for 2009–10 and is unable to report results for this indicator. Not applicable
Expected Result: Departmental and OGD clients and external stakeholders are aware of small business perspectives and advice
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Number of references of small business issues in research, policy and program documents (e.g., memoranda to Cabinet, Treasury Board submissions, research conference reports, consultation reports)

30

Status: Exceeded

34, which is an increase of 88% from the previous year' result of 18 Improving

Risk Mitigation

Small business is the largest segment of the Canadian business population, accounting for 98% of all business establishments in Canada. While firms of all sizes face a continual challenge to innovate and adapt in the face of changing economic circumstances, small firms face particular challenges in areas such as gaining access to financing. A deterioration of overall economic conditions and tighter access to credit for small firms could impact the volume of loans sought and claims made under the Canada Small Business Financing Program (CSBF), which could result in higher costs to the federal government. The CSBF Program mitigated these risks by proposing improvements to the program.

Given the current economic situation, there is a risk that the loan default rate of the Canadian Youth Business Foundation (CYBF) might rise above the current rate of 6%. To counter this risk, CYBF has implemented an “early warning system” for existing clients and has been making referrals to CYBF' entrepreneur-in-residence for advice as required. It has also adapted its lending practices to guard against future loan losses by applying its application evaluation criteria more stringently. It is now making few exceptions when deciding to approve loan applications.

Lessons Learned

Industry Canada is modernizing the way it provides information on government programs, services and regulations to SMEs. Upon its renewal in 2009, CBN launched a new strategy to modernize its service offerings to meet future client needs while ensuring program efficiency and effectiveness. During 2009–10, CBN streamlined its web offerings, moving from 14 federal, provincial and territorial websites to 1 integrated website, which was launched on October 19, 2009. Management of a single website allowed the Department to reduce content duplication and redundancy, reduce maintenance costs and introduce rigorous quality assurance mechanisms while improving the client experience.

3.1.1 Canada Small Business Financing Program

Description: The CSBF Program helps SMEs access loan financing for which they might otherwise have difficulty qualifying. As a risk-sharing venture with private sector lenders, the program encourages financial institutions to increase lending. Payments made to lenders are the result of loans registered with the program.

Expected Result: Significant incremental debt financing for SMEs
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Number of loans registered

10,000

Status: Somewhat met

7,441 loans registered, down from 7,796 (4.6%) in 2008–09 Declining
Value of loans registered

$1 billion

Status: Mostly met

$956.6 million, up from $901.2 million (6.2%) in 2008–09 Improving
Percentage of CSBF Program loan recipients who would not have otherwise obtained a loan, or would have obtained a loan under less favourable conditions

75.6%

Status: Exceeded

80%–85% of CSBF Program borrowers obtained some degree of financial incrementality, an increase ranging from 4.4% to 9.6% from the last incremental study. Improving

3.1.2 Service to Business

Description: This program includes Canada Business Network activities and various other products and tools delivered online that assist small businesses by providing them with convenient, one-stop access to government information, programs and services, saving businesses time and assisting them to make well-informed business decisions.

Expected Result: SME use of government business-related information, programs and services, and facilitated compliance for business
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Increase in number of clients using the CBN website over the previous year

10%

Status: Not met

Decrease of 13.6% from number of clients using the site in 2008–09

In previous years, CBN web traffic did not filter out non-user traffic (such as search bots). A new methodology was introduced in 2009. If this methodology had been applied to last year' results, total volume would have been 3,077,921 in 2008 and 2,660,588 in 2009, a decline of 13.6%. In addition, a new CBN website reducing the number of websites from 14 to 1 was launched in October 2009. This resulted in a reduction in referrals to the website by external search engines, which is typical, but temporary, following major changes to a site.

Declining
Increase in number of client interactions over the telephone through CBN sites in Ontario, Nunavut, the NWT and Yukon

5%

Status: Not met

Decrease of approximately 20%

Total number of calls:

  • 2009–10: 31,678
  • 2008–09: 39,530

Despite active outreach and promotional strategies (e.g., seminars, trade show participation, direct mail), client demand is unpredictable from year to year. Reduction may also be attributed to the new Business Info Line (Ontario-specific) self-serve telephone options, and through the new CBN website.

Declining

3.1.3 BizPaL

Description: This program provides online access to information on business permits, licences, and regulatory requirements from all levels of government, saving time for business and reducing the risk of involuntary non-compliance.

Expected Result: Integrated business permit and licence information from all levels of government provides value to clients across Canada
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Percentage of clients that indicate satisfaction with the services provided

80%

Status: Not applicable

Due to public opinion research restrictions, BizPaL was unable to complete a client satisfaction survey for 2009–10 and is unable to report results for this indicator. Not applicable

3.1.4 Student Connections*

Description: This program gives 300 Canadian youth hands-on experience each year in providing affordable Internet and e-commerce training to 12,000 Canadian SMEs and seniors. SMEs learn to adopt online business practices in order to remain competitive in the global marketplace and seniors gain skills needed to take advantage of online services and information.

Expected Result: Knowledge and skills related to the Internet and e-commerce applications and technologies by SMEs and seniors
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Client perceptions of increased knowledge and skills

70%

Status: Exceeded

93%**

The Student Connection Program (SCP), as delivered from 2003 to 2008, ended in March 2009. Program revisions brought in new terms and conditions, a new program name (Small Business Internship Program — SBIP), new performance indicators and new funding authorities. In 2009, the first year of the new program, employers stated that the program was helpful. The principal improvements were in the areas of customer relations, operations and acquired skills.

Improving
Expected Result: Practical, short-term work experience for students in post-secondary IT-related studies
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Youth perceptions that the opportunities to gain new skills will help them in looking for work in the future

75%

Status: Exceeded

97.6%**

The SCP, as delivered from 2003 to 2008, ended in March 2009. Program revisions brought in new terms and conditions, a new program name (Small Business Internship Program — SBIP), new performance indicators and new funding authorities. In 2009, the first year of the new program, student interns felt that their involvement in SBIP made them more employable.

Improving

*Note: Program ended March 2009. (return to the text reference note7)

**The SCP conducted exit surveys with employers and interns. The percentages reflect the people who were satisfied or extremely satisfied. (return to the text reference note8)

3.1.5 Small Business Growth and Prosperity

Description: This program, through policy research and analysis, raises awareness across government of the importance of small businesses to Canada's economy and of the challenges to their growth and prosperity, and advances recommendations to improve the small business environment in Canada.

Expected Result: Departmental and OGD clients and external stakeholders are made aware of small business perspective and advice
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Number of references to small business issues in research, policy and program documents (e.g., memoranda to Cabinet, Treasury Board submissions, research conference reports, consultations reports)

30

Status: Exceeded

34

The program has enhanced its position as the centre of expertise on policy research and analysis, which is reflected in the number of references to the work conducted by the program.

Improving
Number of significant policy proposals submitted to the Department's policy committees, Deputy Ministers, Minister and/or Secretary of State for consideration

2

Status: Exceeded

3

Performance reflected a greater need than expected to consider policy proposals to support small business growth and prosperity.

No change

Canada' Economic Action Plan — Canadian Youth Business Foundation

Description: This program is a non-profit organization that provides support to young Canadian entrepreneurs who would not typically receive financial assistance from traditional lending institutions. It provides loans, mentorship support and online resources to entrepreneurs between the ages of 18 and 34.

Expected Result: Increase in the number of young entrepreneurs assisted
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Number of loans to entrepreneurs between the ages of 18 and 34 in Canada

480

Status: Exceeded

As of March 31, 2010, the CYBF had provided 494 loans using the Budget 2009 contribution of $10 million. Improving

3.2 Global Reach and Agility in Targeted Canadian Industries

Description: This program provides value-added knowledge and expertise about Canadian industries to position Canada as an ideal environment for foreign direct investment, ensure a strong link in global value chains, and assist firms to strengthen global partnerships and business capacity to respond to risks and opportunities.

Expected Result: Strong engagement, knowledge sharing and program delivery to enhance the capacity of targeted Canadian industries to prepare for, and respond to, risks and opportunities in globalized markets
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Percentage of completed initiatives* designed to increase the competitiveness of Canadian industries in globalized markets, as a proportion of initiatives identified in the sector' business plan

80%

Status: Exceeded

100%

All initiatives designed to increase the competitiveness of Canadian industries, such as intelligence products, analysis, networking, client services, program and policy development, were completed as planned. For example, led responses to the Standing Committee on Industry, Science and Technology reports on automotive and on certain sectors in crisis; implemented changes to the Industrial and Regional Benefits (IRB) Policy; and created and implemented a customer relationship management program focused on developing relationships with companies in the pharmaceutical/ biopharmaceutical, medical devices and bio-industrial industries

New indicator

* Initiatives include joint policy initiatives, frameworks, strategies, consultations, trade shows, knowledge products, publications and websites. (return to the text reference note9)

3.2.1 Global Reach and Agility in Aerospace, Defence and Marine Industries

Description: This program provides value-added knowledge and expertise (i.e., information products, analyses, policy development) to support competitive and sustainable Canadian aerospace, defence and marine industries.

Expected Result: Policy and program initiatives that improve aerospace, defence and marine companies' abilities to prepare for, and respond to, risks and opportunities in globalized markets
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Number of Canadian suppliers involved in the U.S.-led, international Joint Strike Fighter (JSF) global value chain

90

Status: Mostly met

79

Achieved 88% of objective. While the total number of suppliers is stabilizing, the total value of contracts awarded to them is growing.

New indicator
Total dollar value of contracts awarded

$275 million

Status: Exceeded

$350 million

Objective exceeded by 27%. The total value of contracts awarded is growing despite the fact that the total number of suppliers involved in the U.S.-led, international JSF global value chain is stabilizing.

New indicator
Number of Canadian companies participating in initiatives led or supported by the Aerospace, Defence and Marine Branch

150

Status: Exceeded

486 companies were involved in initiatives such as the Paris Air Show, the Soldier System Technology Roadmap and various meetings related to the space and oceanography industries. New indicator

3.2.2 Structured Financing Facility — Shipbuilding and Industrial Marine Framework

Description: This program provides financing support to qualifying domestic and foreign shipowners to build or refit vessels in Canada in order to stimulate economic activities in the Canadian shipbuilding and industrial marine industry.

Expected Result: Investments in support of the Canadian shipbuilding industry to help develop necessary critical infrastructure to position the industry for future procurement efforts
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Percentage of available funding committed to Structured Financing Facility (SFF) projects

90%

Status: Not met

31.2% of the available funding for 2009–10 for the SFF to support the Canadian shipbuilding industry was spent in support of 4 projects. New indicator
Number of SFF projects approved

8

Status: Not met

2

The world economic crisis and its impact on the availability of credit have affected the SFF program. As the recovery gains momentum, it is expected that there will be increased interest in the SFF program.

New indicator

3.2.3 Global Reach and Agility in Automotive and Transportation Industries

Description: This program provides value-added knowledge and expertise (i.e., information products, analyses, policy development) to support competitive and sustainable Canadian automotive and other transportation industries.

Expected Result: Policy and program initiatives that improve automotive and transportation industry companies' ability to prepare for, and respond to, risks and opportunities in globalized markets
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Number of opportunities identified for global value chain growth by Canadian industry

1

Status: Met all

1

Working with officials from the Department of Foreign Affairs and International Trade and with the Government of Ontario on investment promotion and developing strategy for an integrated approach to attract automotive investment to Canada/Ontario

New indicator
Number of consultations for interdepartmental initiatives on major automotive trade and investment policy

4 or more

Status: Exceeded

Actively participated in 6 of the government' policy agenda initiatives concerning the Canadian automotive industry New indicator

3.2.4 Global Reach and Agility in Life Science Industries

Description: This program provides value-added knowledge and expertise (i.e., information products, analyses, policy development) to support competitive and sustainable Canadian life science industries.

Expected Result: Policy and program initiatives that improve life science industries' companies' ability to prepare for, and respond to, risks and opportunities in globalized markets
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Number of meetings to stimulate technical and financial relationship development (e.g., alliances with multinational enterprises, venture capital financing)

3

Status: Met all

3 sessions were organized: A session on financing solutions for biotech companies at BioContact; the Cancer Research Partnering Panel at BIO 2009 International Convention, Atlanta, in April 2009; and the Government of Canada (IC) and Rx&D Partnering Event at BIO 2009. New indicator
Number of network and biorefining projects undertaken

3

Status: Met all

A knowledge network on biorefining was launched late in the fiscal year. The network is a community of practice that has come together to catalyze the commercialization of biorefinery technologies and installations in Canada.

The Department continued to engage in the National Bioproducts Program as a member of its advisory body. This interdepartmental network coordinates bioproduct research efforts between Agriculture and Agri-Food Canada, Natural Resources Canada and National Research Council Canada.

Through the Canadian Biomass Innovation Network, the Department brought an industry perspective on interdepartmental research, development and demonstration activities in the areas of bioenergy, biofuels, industrial bioproducts and bioprocesses.

New indicator

3.2.5 Global Reach and Agility in Resource Processing Industries

Description: This program provides value-added knowledge and expertise (i.e., information products, analyses, policy development) to support competitive and sustainable Canadian resource processing industries.

Expected Result: Policy and program initiatives that improve resource processing industry companies' ability to prepare for, and respond to, risks and opportunities in globalized markets
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Number of responses to requests from stakeholders, federal, provincial and territorial partners for reasoned policy advice on domestic and international issues

5

Status: Exceeded

9 responses to stakeholders and partners such as the Department of Foreign Affairs and International Trade (DFAIT), Natural Resources Canada, regional development agencies (Federal Economic Development Initiative in Northern Ontario, Canada Economic Development for Quebec Regions), Environment Canada and Western Economic Diversification Canada New indicator
Number of responses to trade policy and market access issues

3

Status: Exceeded

5 responses to trade policy and market access issues such as the Canada – European Union Comprehensive Economic and Trade Agreement.

New indicator
Satisfaction with the quality of advice and advocacy efforts provided

60%

Status: Exceeded

95% stakeholder satisfaction related to trilateral (Canada, US, and Japan) meetings of the Japan Agricultural Standards Technical Committee and Building Experts Committee. New indicator

3.2.6 Global Reach and Agility in Service and Consumer Products Industries

Description: This program provides value-added knowledge and expertise (i.e., information products, analyses, policy development) to support competitive and sustainable service and consumer products industries.

Expected Result: Policy and program initiatives that improve service and consumer products companies' ability to prepare for, and respond to, risks and opportunities in globalized markets
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Number of analytical products available to our stakeholders

20

Status: Exceeded

34 analytical products were made available to stakeholders. The products include, but are not limited to, providing results of collaborative research and the preparation of industry snapshots on consumer products and textiles. New indicator
Number of joint IC–industry initiatives to enhance the dissemination of information to our clients

3

Status: Exceeded

Includes 5 research committees involving the private sector and academics in support of providing industry with key performance metrics and best-in-class analysis New indicator
Expected Result: Policies and decisions that support tourism development and its international competitiveness
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Establishment of an ADM-level tourism policy advisory committee to address tourism competitiveness, provide advice and representation within the federal government

2 meetings

Status: Exceeded

The ADM Tourism Policy Advisory Committee met on 3 occasions:
August 20, 2009;
October 8, 2009; and
November 5, 2009.
These meetings helped to secure general support for the government' Federal Tourism Strategy, including the development of a list of commitments for public announcement.
New indicator

3.2.7 Canadian Apparel and Textile Industries Program

Description: The Canadian Apparel and Textile Industries Program (CATIP) provides assistance to Canadian apparel and textile industries in order to maximize productivity, identify high-value niche markets, improve e-commerce initiatives, enhance global marketing and branding strategies, and facilitate access to capital.

Expected Result: Program and collaborative initiatives that improve the competitiveness of the Canadian apparel and textile industries
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Number of Canadian textile company projects under the Textile Production Efficiency Component (CANtex) of the Canadian Apparel and Textile Industries Program (CATIP) in order to encourage a shift to higher value-added textiles

20

Status: Exceeded

Successful completion of 40 CANtex projects including:

  • Implementation of lean manufacturing processes
  • Implementation of software and machinery upgrades and training
  • Implementation of a Facilities Electronic Management System
  • Analysis of supply chain & IT infrastructure
  • Feasibility Study – Identification of production efficiency
New indicator
Number of CATIP initiatives and partnerships with organizations in the Canadian apparel and textile industries on projects designed to help improve the competitiveness of these sectors

12

Status: Exceeded

Successful completion of 20 CATIP projects under the national initiatives component such as

  • Toronto Fashion Incubator Social Media Guidebook Project
  • International supply chain development
  • Commercial and technological visibility of Canadian textile industry
New indicator

3.2.8 Global Reach and Agility in Information and Communications Technologies Industries

Description: This program provides value-added knowledge and expertise, such as information and intelligence products, analysis, networking and client services, and policy development, to support the Canadian ICT sector by meeting their business development needs such as research, innovation, commercialization, and developing markets.

Expected Result: Policy, research and program initiatives that improve ICT companies' abilities to prepare for, and respond to, risks and opportunities in globalized markets
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Number of ICT analysis reports (including statistical reports, sub-sector profiles and vertical market profiles) updated

5

Status: Exceeded

34

Updated or created:

  • 14 statistical and/or analysis reports
  • 20 company profiles

More analysis reports were produced as the ICT Branch has increased its focus on economic and business analysis.

Not applicable

Prior year results included briefs, briefing notes, and sector and sub-sector presentations

Number of issues addressed in research papers, briefing notes, policy forums, and interdepartmental and departmental meetings with industry stakeholders and ICT Branch management to inform and advocate on government ICT policy issues

20 or more

Status: Met all

20

Provided outreach to several industry stakeholders and associations to deepen understanding of core policy issues

Provided outreach to Public Works and Government Services Canada, Human Resources and Skills Development Canada, Business Development Bank of Canada, Export Development Canada and Environment Canada to advance policy analysis, including consultations with 4 policy groups in Industry Canada on over 20 ICT sector policy issues to support senior management and the Minister

Not applicable
Number of initiatives for clients such as corporate calls, participation in global events, support for incoming and outgoing business development missions

20 or more

Status: Mostly met

19

Completed 14 company outreach calls

Supported 2 incoming business development missions

Participated in 3 global business development events (CommunicAsia, Mobile World Congress and Futurecom)

New indicator

3.2.9 Industrial and Regional Benefits

Description: This program implements the Government of Canada's policy under which major federal defence procurements (e.g., Armed Forces, Coast Guard) are managed to leverage long-term industrial and regional development within Canada.

Expected Result: High-quality, long-term business relationships between Canadian suppliers and prime contractors
Performance Indicator Target and Performance Status Results and Performance Summary Trend
New IRBs, measured in Canadian Content Value ($), contracted during the fiscal year

$500 million  

Status: Exceeded

$2.9 billion

This result reflects several new programs for which contracts were signed during the fiscal year, including:

  • Medium-Heavy Lift Helicopter Program, Airlift Capability Project — Tactical In-service Support
  • Mid-Shore Patrol Vessel, Operational System Training Provider (CH47)
  • Phalanx Close in Weapon System, and the Tank Replacement Project

Given the increased volume of defence contracts as a result of the Canada First Defence Strategy, larger volumes and values of IRB obligations are anticipated than were experienced in the previous decade.

New indicator
Number of transactions with $500 million in business activity generated within the Canadian economy as a result of the IRB Policy as per IRB claims approved during the fiscal year

500

Status: Not applicable

None

This indicator was expressed incorrectly (i.e., no transactions that generated $500 million in business activity within the Canadian economy were anticipated). Furthermore, the target was based on the number of claims instead of business dealings, referred to here as transactions.

  • During the period, 218 new transactions were approved. The level of economic activity generated by any one transaction did not exceed $500 million.
  • The increase in number of active transactions during 2009–10 brought the total number of active transactions to 1,465, representing $9.4 billion.
New indicator

Canada' Economic Action Plan — Marquee Tourism Events Program

Description: The Marquee Tourism Events Program (MTEP) is a 2-year Budget 2009 initiative that is intended to assist marquee tourism events to deliver world-class programs and experiences in support of tourism and the visitor economy. The MTEP makes non-repayable contributions in support of tourism events that take place in Canada.

Expected Result: Existing marquee tourism events will enhance their offerings and deliver world-class programs and experiences
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Percentage of funded events with sustained or increased numbers of out-of-country and out-of-province tourists

80%

Status: Not applicable

Premature to report on this performance indicator as not all 2009–10 economic impact studies have been received. Expect to be in a position to report next fiscal year. Not applicable
Percentage of funded events with sustained or increased tourism-related spending

80%

Status: Not applicable

Premature to report on this performance indicator as not all 2009–10 economic impact studies have been received. Expect to be in a position to report next fiscal year. Not applicable

Canada' Economic Action Plan — Federal Tourism Strategy

Description: To improve the effectiveness of the government' support for the tourism sector, Budget 2009 committed the Minister of State for Small Business and Tourism to lead the development of a new Federal Tourism Strategy to bring greater coherence to the policies and programs that support tourism. No funding was provided for this initiative.

Expected Result: Federal departments and agencies will work together to optimize, in an organized and focused manner, federal activities that strengthen the visitor economy. Through this collaboration, the departments and agencies will contribute to the development of the Federal Tourism Strategy
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Establishment of 4 working groups, under the guidance of a committee of ADMs, to address tourism opportunities and issues

4 working groups established

Status: Met all

Through regular meetings of the committee of ADMs, supported by the 4 working groups, a Federal Tourism Strategy Framework was developed and announced by the Prime Minister in June 2009. The Framework sets out 4 federal strategic priorities to inform the development and implementation of legislation, regulations and programs relevant to the competitiveness and growth of the Canadian tourism sector:

  • encourage product development and investments in Canadian tourism assets
  • facilitate ease of access and movement of travellers, while ensuring the safety and integrity of Canada's borders
  • increase awareness of Canada as a premier destination, including federal assets
  • foster an adequate supply of skills and labour to enhance visitor experiences through quality service and hospitality

The objective of the framework is to mobilize efforts across the federal government to help position Canada' tourism sector for long-term global competitiveness and growth.

New indicator

3.3 Community, Economic and Regional Development

Description: This program advances the economic development of Ontario communities in the same manner that federal economic development agencies support development in other regions of Canada. The program supports and enhances the role and contribution of small and medium-sized businesses to Canada's economic well-being by building capacity, such as infrastructure, in non-metropolitan communities. This program also promotes access to the Internet and ICT, and the skills to use them, in order to increase the capacity of individuals and communities across Canada to participate in the knowledge-based economy.

Expected Result: A significant increase in the capacity of selected Ontario communities and businesses, helping them to thrive in the 21st-century economy
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Average leverage ratio of program funds

1:2

Status: Mostly met

For every dollar spent through FedNor programs, $1.90 was leveraged from other sources. No change
Average number of contribution agreements and grants approved

35

Status: Exceeded

Average number of contribution agreements approved in 2009–10 was 104.

When this target was set, it represented only 1 program. It now represents 5 programs*.

Not applicable

* These results represent Industry Canada and FedDev Ontario. Several program under Industry Canada were transferred to FedDev Ontario on August 13, 2009. In future reporting documents, these programs will no longer be reported in Industry Canada' documents but will be reported on independently through FedDev Ontario. (return to the text reference note10)

Lessons Learned

An audit of the FedNor-delivered Community Futures (CF) Program determined that the program complies with appropriate acts, regulations and policies; has established key controls that define roles and responsibilities; documented policies, guidelines and processes; and has clearly outlined transparent decision-making processes. One recommendation was to update the risk assessment process and documentation. In response, the Department agreed to adopt a successful risk assessment process currently used by the Northern Ontario Development Program (NODP) delivered by FedNor.

3.3.1 Federal Economic Development Initiative for Northern Ontario*

Description: The Federal Economic Development Initiative for Northern Ontario (FedNor) promotes economic development and diversification, job creation, competitive businesses and sustainable communities in Northern and rural Ontario. The program works with a variety of partners to deliver programs that support community capacity, access to capital and markets, the development of modern infrastructure and technology, innovation, and the development of human capital to help create an environment in which communities can thrive, businesses can grow and people can prosper in the 21st-century economy.

Expected Result: Communities and businesses in Northern, Eastern and rural Ontario will be more viable and competitive
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Number of businesses and organizations created, expanded or maintained

4,300

Status: Not applicable

Through the NODP and CF Programs, 1,607 businesses and organizations were created, expanded or maintained in Northern Ontario.

Note: This result is lower than the target due to the transfer of programs servicing southern Ontario to FedDev Ontario.

Not applicable

*Split with FedDev Ontario; Regional Operations Sector delivers northern portion only. See the FedDev Ontario section for results on southern portion. (return to the text reference note11)

3.3.1.1 Community Futures Program*

Description: This program supports community economic development and builds the capacity of non-metropolitan communities to realize their full sustainable potential. Funding is made available through transfer payments that provide contributions to designated CF organizations in support of strategic community planning and socio-economic development, business services, repayable business financing through local investment funds, and community-based projects and special initiatives.

Expected Result: Communities and businesses in rural Ontario will be more viable and competitive
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Ratio of funds raised from other sources to federal CF Program investments

0.7:1

Status: Met all

CF Program dollar investments leveraged $1.70 from other sources. Improving
Number of businesses created, expanded, maintained or strengthened in rural Ontario by Community Futures Development Corporations (CFDCs)

3,800

Status: Not applicable

In 2009–10, FedNor helped create, expand, maintain and strengthen 1,001 businesses in rural Northern Ontario through the CF Program. This result is lower than the target due to the transfer of the southern Ontario portion of the program to FedDev Ontario. Not applicable

*Split with FedDev; Regional Operations Sector delivers northern portion only. See the FedDev Ontario section for results on southern portion. (return to the text reference note12)

3.3.1.2 Northern Ontario Development Program

Description: The Northern Ontario Development Program (NODP) promotes economic development and diversification in Northern Ontario. It builds upon the assets and strengths of communities to maximize the sustainable potential of Northern Ontario to succeed in the knowledge-based economy. Funding through transfer payments provides contributions to not-for-profit organizations and SMEs in six priority areas: community economic development, information and communications technology, innovation, trade and tourism, human capital, and business financing support.

Expected Result: Communities and businesses in Northern Ontario will be more viable and competitive
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Number of Northern Ontario businesses and organizations created, expanded or maintained

950

Status: Not applicable

In 2009–10, FedNor helped create, expand or maintain 606 businesses and organizations in Northern Ontario through the NODP. Not applicable
Ratio of funds raised from other sources to NODP contributions

1.3:1

Status: Met all

NODP dollar investments leveraged $3.20 from other sources. Improving
3.3.1.3 Eastern Ontario Development Program
Expected Result: Communities and businesses in rural Eastern Ontario will be more viable and competitive
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Number of rural Eastern Ontario businesses and organizations created, expanded or maintained

500

Status: Exceeded

This program was transferred to FedDev Ontario with the creation of the agency. For results on this program, please refer to Section 3.4.A. Not applicable
Ratio of funds raised from other sources to Eastern Ontario Development Program (EODP) contributions

4.5:1

Status:
Mostly Met

This program was transferred to FedDev Ontario with the creation of the agency. For results on this program, please refer to Section 3.4.A. Not applicable

3.3.2 Economic Development Initiative — Official Language Minority Communities Development Program*

Description: This program provides funding to encourage the participation of official language minority communities in federal economic development programs and services. Program funds are spent:

  • on community consultations that increase awareness of Industry Canada programs;
  • in advising other functional units of the Department on the requirements of the Official Languages Act; and
  • on working with the Network of Official Language Advisors and Coordinators in the regional offices to assure that official language minority communities have information about, and access to, programs and services offered by Industry Canada and the Regional Development Agencies.

Through these activities, this program enhances the vitality of official language minority communities throughout Canada.

Expected Result: Better comprehension of the requirements of section 41 of the Official Languages Act at Industry Canada
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Percentage of departmental submissions that pass the official languages impact analysis

70%

Status: Exceeded

In 2009–10, all 13 Treasury Board submissions subject to the Official Languages Act used and passed the impact analysis. Improving

*Split with FedDev; Regional Operations Sector delivers northern portion only. See the FedDev Ontario section for results on southern portion. (return to the text reference note14)

3.3.3 Canada–Ontario Municipal Rural Infrastructure Fund

Expected Result: Federal delivery of Canada–Ontario Municipal Rural Infrastructure Program
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Number of contribution agreements administered

702

Status: Exceeded

This program was transferred to FedDev Ontario with the creation of the agency. For results on this program, please refer to Section 3.4.A. Not applicable
Value of federal investment share

$298 million

Status: Mostly met

This program was transferred to FedDev Ontario with the creation of the agency. For results on this program, please refer to Section 3.4.A. Not applicable

3.3.4 Ontario Municipal Rural Infrastructure Top-Up Program

Expected Result: Federal delivery of partner-funded Ontario Municipal Rural Infrastructure Top-Up Program
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Number of contribution agreements administered

39

Status: Met all

This program was transferred to FedDev Ontario with the creation of the agency. For results on this program, please refer to Section 3.4.A. Not applicable
Value of federal investment share

$64 million

Status: Not met

This program was transferred to FedDev Ontario with the creation of the agency. For results on this program, please refer to Section 3.4.A. Not applicable

3.3.5 Computers for Schools

Description: The Computers for Schools (CFS) program refurbishes surplus computers from federal government departments and delivers them to schools and not-for-profit learning organizations across Canada through contributions to a partnership-based national network of licensed refurbishment centres. The program continues to meet an ongoing demand for adequate numbers of computers in Canadian schools and school districts in order to ensure that more young Canadians have access to the means for success in a knowledge-based economy and society. This program also provides work experience and ICT skills development through work placements for youth, co-op students and volunteers to assist in increasing the level of competence in information and communications technology in Canada.

Expected Result: Distribution of computers to schools, libraries and not-for-profit organizations at low or no cost
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Number of refurbished computer units delivered annually by province and territory

85,000

Status: Not met

61,914

A delay in issuing contribution agreements to recipients resulted in a similar delay in the commencement of projects and therefore a lower-than-projected productivity level.

Declining
Expected Result: Engagement of youth interns to assist in computer refurbishment and information and ICT skills integration
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Number of youth interns hired

250

Status: Exceeded

A total of 330 youth were employed through the CFS program for 2009–10, providing them with hands-on technical job experience. Improving
Expected Result: Increased computer awareness knowledge and skills for youth
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Proportion of youth interns completing their training

90%

Status: Not met

65% or more of youth interns hired completed their training in 2009–10. The targeted average of 90% of youth completing their internship was unachievable due to high staff turnover resulting from interns finding employment in the midst of their terms. Increased skills gained from their CFS internship allowed youth to be more marketable and find employment in the technical field. Declining

3.3.6 Community Access Program

Description: The Community Access Program (CAP) provides affordable public access to the Internet, related ICT and applications, skills training, and delivery of public and private sector services and information to Canadians in need of these critical supports to economic and social success. Access to the Internet and ICT and the skills to use them are critical to participation in today's knowledge-based economy. Community Access Program (CAP) sites across Canada contribute to the economic and social development of Canadian communities and their residents who face barriers to the access and use of ICT. This program also provides work experience and ICT skills development through work placements in CAP sites for youth, co-op students and volunteers to assist in increasing the level of competence in ICT in Canada.

Expected Result: Canadians and communities receive enhanced access to information and communications technologies
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Number of Internet sites supported

3,800

Status: Not met

3,639

A delay in issuing contribution agreements to the recipients resulted in a similar delay in project commencement and a lower-than-projected result.

Declining

Canada' Economic Action Plan — Broadband Canada: Connecting Rural Canadians

Description: As part of Canada' EAP, $225 million was provided for the development and implementation of a strategy to extend broadband Internet coverage. By far the largest component of this strategy is the Broadband Canada: Connecting Rural Canadians program. Broadband Internet access is viewed as essential infrastructure for participating in today's economy, as it enables citizens, businesses and institutions to access information, services and opportunities that could otherwise be out of reach.Broadband Canada' goal is to encourage the expansion and availability of broadband connectivity to as many currently unserved and underserved households in Canada as possible. The program aims to provide essential infrastructure to Canadians in rural and remote areas, allowing them to participate in the digital economy.

Expected Result: To extend broadband coverage to as many currently unserved and underserved households in Canada as possible
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Percentage of contribution agreements in place that support reaching as many households as possible

100% by March 31, 2011

Status: Not applicable

Assessment of all applications received completed

Announcements on which proponents will get funding to be made in 2010

Not applicable

Canada' Economic Action Plan — Community Adjustment Fund in Northern Ontario*

Description: The Community Adjustment Fund (CAF) is an economic stimulus initiative to create employment opportunities and support adjustment measures in communities impacted by the economic downturn. Budget 2009 identified $1 billion nationally over 2 years for the CAF. In Ontario, the CAF will provide $348.9 million over 2 years to support adjustment measures in communities affected by the global economic downturn. In 2009–10, $10.7 million in funding was delivered in Northern Ontario.

Expected Result: Support adjustment measures in communities  
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Total value of investments anticipated in businesses, organizations and communities

$75,469,467

Status: Not applicable

$70,172,142 will be invested in Northern Ontario businesses, organizations and communities to respond to the economic downturn.

Not applicable

Data for 2-year period are not yet available.

Number of jobs created (in person-months)

9,600

Status: Not applicable

In 2009–10, 1,074 person-months of employment were created by CAF investments in Northern Ontario.

Not applicable

Data for 2-year period are not yet available.

*Regional Operations Sector delivers northern portion. See the FedDev Ontario section for results on southern portion. (return to the text reference note15)

3.4 Security and Prosperity Partnership of North America — Canadian Secretariat

Description: This program supports the Minister of Industry in his/her responsibility for leading Canada' engagement in the Security and Prosperity Partnership. This program leads, in cooperation with other federal departments and agencies, the identification of strategic Canadian bilateral and trilateral priorities with respect to prosperity and security within North America; negotiations with the U.S. and Mexico; and communications and reporting. This program also supports the Minister in his/her role as lead on the Prosperity Agenda focused on improving competitiveness and enhancing quality of life.

Expected Result: Canada is successful in advancing its strategic interests and priorities within the North American context
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Degree of progress in advancing Canada' strategic interests in the context of North American priorities

Medium*  

Status: Met all

Canada' strategic interests have been pursued in the context of North American priorities. This was achieved through dialogue among the 3 North American countries and results of the 5th annual North American Leaders' Summit, held in August 2009. Results are outlined in the Leaders' Statement. Summit discussions focused on 4 priority areas: the economy and North American competitiveness, environment and energy, security, and global and regional issues. New indicator

*Degree of progress defined by:
High: All of Canada' major strategic interests are reflected in North American priorities.
Medium: Most of Canada' major strategic interests are reflected in North American priorities.
Low: A few of Canada' major strategic interests are reflected in North American priorities. (return to the text reference note16)

Risk Mitigation

Canada' ability to achieve its strategic interests on competitiveness is linked to the broader trilateral agenda. Industry Canada mitigates the risks associated with this responsibility by working closely with the interdepartmental community, such as DFAIT, as well as U.S. and Mexican officials, to ensure that competitiveness remains an important component of discussions at the North American Leaders' Summits. The Department works with these partners to keep informed on a broad range of international issues in order to support bilateral and trilateral engagement on competitiveness issues and provide relevant advice.

Lessons Learned

Developing and sustaining contacts both interdepartmentally and trilaterally was crucial to sustained bilateral and trilateral engagement during government transitions in the U.S. and Mexico.

3.4.A Federal Economic Development Agency for Southern Ontario

Description: The Federal Economic Development Agency for Southern Ontario (FedDev Ontario) was announced in Budget 2009. FedDev Ontario was officially established in August 2009.

Expected Result: The economy of Southern Ontario is competitive and diversified
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Decrease in unemployment rate in Southern Ontario

10%

Status: Mostly met

The seasonally adjusted unemployment rate fell from 9.3% in August 2009 to 8.8% in March 2010.* Declining (decrease of 5% over 7 months)
GDP growth rate for Southern Ontario

3%

Status: Exceeded

Provincial accounts show GDP annualized growth of 4.1% over the last two quarters of 2009.** Improving (GDP growth continued into Q1 2010)

*Ontario Economic Update, April 16, 2010 (return to the text reference note17)

**Ontario Economic Accounts – Fourth Quarter 2009 Table 3, Ontario Real GDP (return to the text reference note18)

Community Futures Program*

Description: This program supports community economic development and builds the capacity of non-metropolitan communities to realize their full sustainable potential. Funding is made available through transfer payments that provide contributions to designated CF organizations in support of strategic community planning and socio-economic development, business services, repayable business financing through local investment funds, and community-based projects and special initiatives.

Expected Result: Communities and businesses in rural Ontario will be more viable and competitive
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Ratio of funds raised from other sources to federal CF Program investments

0.7:1

Status: Exceeded

CF dollar investments leveraged $1.96 from other sources for every dollar invested. Improving
Number of businesses created, expanded, maintained or strengthened in rural Ontario by Community Futures Development Corporations (CFDCs)

3,800

Status: Mostly met

3,788 businesses were created, expanded and maintained as a result of funds invested in Southern Ontario.

Business services provided by 37 CFDCs in Southern Ontario. The target for this indicator was established for all of Ontario. The numbers from FedDev Ontario considerably exceed the performance anticipated for Southern Ontario.

No change

*Split with Regional Operations Sector; FedDev delivers southern portion only. See section 3.3 for results on Regional Operations Sector under Industry Canada portion. (return to the text reference note19)

Economic Development Initiative — Official Language Minority Communities Development Program*

Description: This program provides funding to encourage the participation of official language minority communities in federal economic development programs and services. Program funds are spent in community consultations that increase awareness of Industry Canada's programs, in advising other functional units of the Department on the requirements of the Official Languages Act, and on working with the Network of Official Language Advisors and Coordinators in the regional offices to assure that official language minority communities have information about and access to programs and services offered by Industry Canada and the Regional Development Agencies. Through these activities, this program enhances the vitality of official language minority communities throughout Canada.

Expected Result: Better comprehension of the requirements of section 41 of the Official Languages Act at Industry Canada
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Percentage of departmental submissions that pass the official languages impact analysis

70%

Status: Met all

100%: FedDev Ontario made 1 Treasury Board submission in 2009–10, which passed the impact analysis. Not applicable

* Split with Regional Operations Sector of Industry Canada; FedDev delivers southern portion only. See section 3.3 for results on Regional Operations Sector under Industry Canada portion. (return to the text reference note20)

Eastern Ontario Development Program

Description: The Eastern Ontario Development Program (EODP) promotes socio-economic development in Eastern Ontario that leads to business and job opportunities, sustainable self-reliant communities, and a competitive and diversified regional economy. Delivered through CFDCs in Eastern Ontario, the program makes funding available though transfer payments to provide contributions in five priority areas: business and community development, access to capital, skills development, retention and attraction of youth, and technological enhancement.

Expected Result: Communities and businesses in rural Eastern Ontario will be more viable and competitive
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Number of rural Eastern Ontario businesses and organizations created, expanded or maintained as a result of support from EODP

500

Status: Exceeded

596 businesses were created, expanded and maintained as a result of funds invested in Eastern Ontario. Not applicable
Ratio of funds raised from other sources to EODP contributions

4.5:1

Status: Mostly met

EODP dollar investments leveraged $3.15 from other sources for every dollar invested.

The target for 2009–10 was based on actuals from the previous 2 fiscal years in which a few projects had high values of funds leveraged. The results for 2009–10 reflect a more reasonable leverage factor.

Not applicable

Canada–Ontario Infrastructure Program

Description: The Canada–Ontario Infrastructure Program (COIP) provides funding assistance to local governments and public or private sector corporate bodies for the construction, renewal, expansion or material enhancement of infrastructure that will contribute to improving the quality of life for Ontarians through investments that enhance the quality of the environment, support long-term economic growth, enhance community infrastructure, and build 21st- century infrastructure through using new approaches and the best technologies. FedDev Ontario delivers the program on behalf of Infrastructure Canada, and in partnership with the Province of Ontario. FedDev Ontario has taken over the delivery of this program from Industry Canada since its inception in August 2009.

Expected Result: Providing Ontarians with access to infrastructure that enhances their quality of life
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Total number of contribution agreements administered

255

Status: Mostly met

245 contribution agreements are signed. 10 remain incomplete, expected to be completed in 2010–11. Not applicable
Value of federal investment share

$281.2 million

Status: Mostly met

Total value of federal commitments total $276 million. $5.2 million remains to be spent in 2010–11. Not applicable

Canada–Ontario Municipal Rural Infrastructure Fund

Description: The Canada–Ontario Municipal Rural Infrastructure Fund (COMRIF) supports smaller-scale municipal infrastructure, such as water and wastewater treatment or cultural and recreation projects, for communities with a population of less than 250,000. The program aims to improve the quality of life in Ontario communities and to support sustainable economic growth, innovation and healthy communities. COMRIF is delivered by FedDev Ontario on behalf of Infrastructure Canada and in partnership with the Province of Ontario. FedDev Ontario has taken over the delivery of this program from Industry Canada since its inception in August 2009.

Expected Result: Federal delivery of Canada–Ontario Municipal Rural Infrastructure Fund
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Number of contribution agreements administered

702

Status: Exceeded

708 contribution agreements were signed.

The program has been extended from March 31, 2009, to October 31, 2010. All COMRIF funding has been allocated through 3 main intakes and 1 intake addressing capacity building, all of which are now closed.

Not applicable
Value of federal investment share

$298 million

Status: Mostly met

Total value of federal commitment is $293.8 million. By March 31, 2010, $282.4 million had been disbursed. Not applicable

Municipal Rural Infrastructure Fund Top-Up

Description: The Municipal Rural Infrastructure Fund Top-Up (MRIF Top-Up) supports smaller-scale municipal infrastructure, such as water and wastewater treatment or cultural and recreation projects, for communities with a population of less than 250,000. The program is delivered unilaterally by FedDev Ontario on behalf of Infrastructure Canada in Ontario. FedDev Ontario has taken over the delivery of this program from Industry Canada since its inception in August 2009.

Expected Result: Federal delivery of partner-funded Ontario Municipal Rural Infrastructure Top-Up Program
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Number of contribution agreements administered

39

Status: Met all

Initially, 39 projects were approved under the program; however, 13 projects were withdrawn for a variety of reasons. 26 contribution agreements were signed and administered. Not applicable
Value of federal investment share

$64 million

Status: Not met

After the withdrawal of projects, the total value of federal investment is $38.7 million. Not applicable

Ontario Potable Water Program

Description: The Ontario Potable Water Program (OPWP) provides financial assistance in the form of grants to Ontario municipalities that incurred additional costs in the development of their Canada–Ontario Infrastructure Program (COIP) drinking water projects to meet Ontario drinking water regulations. FedDev Ontario has taken over the delivery of this program from Industry Canada since its inception in August 2009.

Expected Result: Increased community capacity to respond to economic development opportunities and challenges in recipient communities
Performance Indicator Target and Performance Status Results and Performance Summary Tre nd
Number of grants distributed to target groups

45

Status: Not met

25 grant agreements were signed. Delayed completion of COIP projects affected the ability to meet the target in the first year of the program. On track to meet target. Not applicable
Value of grants distributed to target groups

$34.5 million

Status: Not met

$12 million in grants were distributed. $22.5 million has been reallocated to 2010–11 due to COIP delay. On track to meet target. Not applicable

Brantford Greenwich–Mohawk Remediation Project

Description: This is a brownfield remediation project. The site, with a total area of 50 acres, is located between Mohawk and Greenwich Streets in Brantford, Ontario. Once remediated, the land will be redeveloped, ensuring remediation to provincial standards. FedDev Ontario has taken over the delivery of this program from Industry Canada since its inception in August 2009.

Expected Result: 50 acres of remediated land in Brantford, Ontario, suitable for residential development, some light commercial development and a cultural/heritage component
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Achievement of project milestones resulting in the remediated land that is now available for further economic development

Demolition of existing buildings on the site by March 31, 2010

Status: Not met

Brantford tendered for remediation and development of the site. Negotiations between the city and the developer were still in progress as of March 31, 2010. The developer has been completing its initial site investigations to confirm the extent of remediation required. Building demolition is expected to commence in the summer of 2010. On track to meet target. Not applicable

Canada Strategic Infrastructure Fund

Description: The Canada Strategic Infrastructure Fund (CSIF) helps to support large-scale projects of major federal and regional significance in areas that are vital to sustaining economic growth and enhancing the quality of life of Canadians. CSIF projects support infrastructure in the following five investment categories: highways and railways, local transportation, tourism or urban development, water or sewage, and broadband (telecommunications connectivity). CSIF places emphasis on partnerships with any combination of municipal, provincial and territorial governments and the private sector. FedDev Ontario took over the delivery of this program from Industry Canada in August 2009 and delivers it on behalf of Infrastructure Canada.

Expected Result: Sustained economic growth and enhanced quality of life for Ontarians
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Number of contribution agreements administered

10

Status: Met all

10 projects are being administrated, with 2 now completed and 8 ongoing. Not applicable
Value of contribution agreements

$257.5 million

Status: Met all

A total of $257.5 million has been approved, of which $149.4 million has been disbursed as of March 31, 2010. Not applicable

Building Canada Fund

Description: The Building Canada Fund (BCF) aims to build a stronger economy, a cleaner environment and better communities across Canada while addressing local and regional infrastructure needs. The Major Infrastructure Component targets larger, strategic projects of national and regional significance. The Communities Component (CC) focuses on projects in communities with populations of less than 100,000 and helps these smaller communities face their unique challenges. The BCF Communities Component consists of two intakes: Regular and Top-Up. The Top-Up portion of BCF-CC is part of Canada' EAP. FedDev Ontario took over the delivery of this program in August 2009 and is administering all BCF-CC projects in Ontario in partnership with the Province of Ontario and on behalf of Infrastructure Canada.

Expected Result: Sustained economic growth and enhanced quality of life for Ontarians
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Number of contribution agreements

290 (under Intake I of BCF-CC)

Status: Met all

Intake I of BCF-CC approved 290 projects for a total of $362 million.

BCF-CC Top-Up (Intake II) approved 183 projects for a total value of $204 million.

Not applicable
Value of program

$392 million

Status: Exceeded

Total value of the BCF-CC program (Intake I and II) is $566 million. Not applicable

Canada' Economic Action Plan — Recreational Infrastructure Canada

Description: Recreational Infrastructure Canada (RInC), launched in May 2009, is a 2-year economic stimulus program designed to provide a timely, targeted stimulus to communities through investments that will create jobs and spur construction activity related to existing recreational infrastructure. It is also expected to encourage higher levels of participation in physical activity and community building. The national allocation for RInC is $500 million and Ontario' portion over 2 years is $195 million. In Ontario, FedDev Ontario is delivering the program in parallel with the Province of Ontario' Ontario Recreation program. FedDev Ontario took over the delivery of this program from Industry Canada in August 2009.

Expected Result: Economic stimulus and job creation as well as renewal, rehabilitation and modernization of Canada' recreational infrastructure
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Number of contribution agreements

362

Status: Met all

765 projects governed by 362 signed contribution agreements are being administered. 771 projects were initially approved, but 6 have withdrawn. Not applicable
Value of federal investment share

$191.1 million

Status: Somewhat met

A total of $190.9 million of federal investment has been approved. Due to project withdrawal, this has reduced to $188.9 million.

$30 million has been disbursed by March 31, 2010.

Not applicable

Canada' Economic Action Plan — Southern Ontario Development Program

Description: The Southern Ontario Development Program (SODP) is a core agency program designed to promote the economic development of Southern Ontario businesses, not-for-profit organizations and municipalities by funding projects that can stimulate local economies and enhance the growth and competitiveness of local businesses and communities.

Expected Result: Communities in Southern Ontario are viable and businesses in this region are competitive
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Number of Southern Ontario businesses and organizations created, expanded or maintained as a result of support from SODP

950

Status: Somewhat met

648 businesses and/or organizations were created, expanded or maintained as a result of support from SODP. New indicator
Ratio of funds raised from other sources to SODP contributions

1.3:1

Status: Exceeded

SODP dollar investments leveraged $2.10 from other sources for every dollar invested.

One project accounted for $100 million of funds raised. Excluding this project, the ratio is 1.2:1.

Results provided are from projections submitted by project recipients. They will be validated as projects begin fulfilling reporting obligations outlined in their contribution agreements.

Not applicable

Canada' Economic Action Plan — Community Adjustment Fund for Southern Ontario

Description: The Community Adjustment Fund (CAF) is an economic stimulus initiative to create employment opportunities and support adjustment measures in communities impacted by the economic downturn. Budget 2009 identified $1 billion nationally over two years for the Fund. In Ontario, the CAF will provide $348.9 million over two years to support adjustment measures in these communities. In 2009–10, $106.9 million in funding was delivered in Southern Ontario.

Expected Result: Support for adjustment measures in communities
Performance Indicator Target and Performance Status Results and Performance Summary Trend
Number of projects funded

516

Status: Met all

A total of 516 projects in Southern Ontario are committed to receiving investments through CAF Investments.

Not applicable

Data for 2-year period is not yet available.

Total value of investments anticipated in businesses, organizations and communities

$254.5 million

Status: Ongoing

$254.5 million will be invested in Southern Ontario businesses, organizations and communities to respond to the economic downturn.

Not applicable

Data for 2-year period is not yet available.

*Split with Regional Operations Sector of Industry Canada; FedDev delivers southern portion only. See section 3.3 for results on Regional Operations Sector under Industry Canada portion. (return to the text reference note22)

Department of Industry (033)

Statement of Management Responsibility Including Internal Control over Financial Reporting

Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2010, and all information contained in these statements rests with the management of Industry Canada. These financial statements have been prepared by management in accordance with Treasury Board accounting policies, which are based on Canadian generally accepted accounting principles for the public sector.

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

Management is also responsible for maintaining an effective system of internal control over financial reporting designed to provide assurance that the financial information is reliable; that assets are safeguarded; and that transactions are properly authorized and recorded in accordance with the Financial Administration Act and other applicable legislation, regulations, authorities and policies.

Management seeks to ensure the objectivity and integrity of data in its financial statements through careful selection, training and development of qualified staff; through organizational arrangements that provide appropriate divisions of responsibility; through communication programs aimed at ensuring that regulations, policies, standards and managerial authorities are understood throughout Industry Canada; and through conducting an annual assessment of the effectiveness of the system of internal control over financial reporting.

An assessment for the year ended March 31, 2010, was completed in accordance with the Policy on Internal Control, and the results and action plans are summarized in Industry Canada's management report on Internal Control over Financial Reporting for the fiscal year ending March 31, 2010.

The system of internal control over financial reporting is designed to mitigate risks to a reasonable level based on an ongoing process to identify key risks, to assess effectiveness of associated key controls and to make necessary adjustments.

The effectiveness and adequacy of Industry Canada' system of internal control is reviewed by the work of internal audit staff, who conduct periodic audits of different areas of Industry Canada operations; and by the Departmental Audit Committee, which oversees management' responsibilities for maintaining adequate controls systems and the quality of financial reporting, and which is required to review the departmental financial statements with management and all significant accounting estimates and judgments therein and advise the deputy head on any apparent material concerns.

The financial statements of Industry Canada have not been audited.

The printed version is signed by

Richard Dicerni, Deputy Head
Ottawa, Canada
Kelly Gillis, Chief Financial Officer

(in thousands of dollars)
Statement of Financial Position (Unaudited)
As at March 31
2010 2009
Restated (note 16)
Assets
Financial assets
Due from Consolidated Revenue Fund 750,878 374,419
Accounts receivable and advances (note 4) 190,807 102,348
Loans (note 5) 490,125 404,913
Total financial assets 1,431,810 881,680
Non-financial assets
Prepaid expenses 1,025 277
Tangible capital assets (note 6) 100,396 109,228
Total non-financial assets 101,421 109,505
1,533,231 991,185
Liabilities and equity of Canada
Liabilities
Accounts payable and accrued liabilities (note 7) 968,177 649,713
Vacation pay and compensatory leave 26,281 23,910
Deferred revenue (note 8) 4,376,729 4,957,325
Allowance for loan guarantees (note 11) 376,699 346,714
Allowance for employee severance benefits (note 10) 88,482 95,070
Other liabilities (note 9) 32,780 29,827
Total Liabilities 5,869,148 6,102,559
Equity of Canada (4,335,917) (5,111,374)
1,533,231 991,185

Contingent liabilities (note 11)
Contractual obligations (note 12)

The accompanying notes form an integral part of these financial statements.

Richard Dicerni, Deputy Head
Ottawa, Canada
Kelly Gillis, Chief Financial Officer
(in thousands of dollars)
Statement of Operations (Unaudited)
For the Year Ended March 31
2010
Planned
results
2010 2009
Restated (note 16)
Expenses
The Canadian marketplace 435,986 428,251 431,346
Science and technology, knowledge, and innovation 565,965 1,371,254 360,037
Competitive businesses 226,595 559,567 392,619
Internal services 108,427 232,580 115,573
Total expenses 1,336,973 2,591,652 1,299,575
Revenues
The Canadian marketplace 979,013 1,048,509 719,999
Science and technology, knowledge, and innovation 10,625 12,694 13,914
Competitive businesses 59,651 61,447 57,219
Internal services - 446 428
Total revenues 1,049,289 1,123,096 791,560
Net cost from continuing operations 287,684 1,468,556 508,015
Transferred operations
Expenses - 5,020
Net cost of transferred operations - 5,020
Net cost of operations 1,468,556 513,035

Segmented information (note 14)

The accompanying notes form an integral part of these financial statements.

(in thousands of dollars)
Statement of Equity of Canada (Unaudited)
For the Year Ended March 31
2010 2009
Restated (note 16)
Equity of Canada, beginning of year (5,111,374) (1,042,721)
Net cost of operations (1,468,556) (513,035)
Net cash provided by Government 1,777,765 (3,491,219)
Change in due from the Consolidated Revenue Fund 376,459 (151,480)
Services provided without charge by other government departments (note 13) 89,236 87,081
Transfer of assets and liabilities from/to other government departments (note 15) 553 -
Equity of Canada, end of year (4,335,917) (5,111,374)

The accompanying notes form an integral part of these financial statements.

(in thousands of dollars)
Statement of Cash Flow (Unaudited)
For the Year Ended March 31
2010 2009
Restated (note 16)
Operating activities
Net cost of operations 1,468,556 513,035
Non-cash items:
Amortization of tangible capital assets (16,258) (15,103)
Gain (loss) on disposal of tangible capital assets 178 179
Writedown of tangible capital assets - (143)
Loss on writeoffs of tangible capital assets (10,313) (23)
Adjustment to tangible capital assets (1,497) (1,362)
Services provided without charge by other government departments (note 13) (89,236) (87,081)
Transfer of operations (553) -
Variations in Statement of Financial Position:
Increase (decrease) in accounts receivable 88,459 (105,280)
Increase (decrease) in loans 85,212 44,440
Increase (decrease) in prepaid expenses 748 106
Decrease (increase) in accounts payable and accrued liabilities (318,464) 206,041
Decrease (increase) in vacation pay and compensatory leave (2,371) (1,094)
Decrease (increase) in deferred revenue 580,596 (3,999,166)
Decrease (increase) in allowance for loan guarantees (29,985) (44,963)
Decrease (increase) in future employee benefits 6,588 (13,286)
Decrease (increase) in other liabilities (2,953) (2,084)
Cash used in operating activities 1,758,707 (3,505,784)
Capital investing activities
Acquisitions of tangible capital assets 19,240 14,748
Proceeds from disposal of tangible capital assets (182) (183)
Cash used in capital investing activities 19,058 14,565
Net cash provided by Government of Canada 1,777,765 (3,491,219)

The accompanying notes form an integral part of these financial statements.

Notes to the Financial Statements (Unaudited)

1. Authority and objectives

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

Industry Canada aims to help make Canadian industry more productive and competitive in the global economy, thus improving the economic and social well-being of Canadians through its 3 strategic outcomes, which are mutually reinforcing. Fostering competitiveness helps advance the marketplace by developing and administering economic framework policies that promote competition and innovation; support investment and entrepreneurial activity; and instill consumer, investor and business confidence. Investing in science and technology to generate knowledge and equip Canadians with the skills and training they need to compete and prosper in the global, knowledge-based economy helps ensure that discoveries and breakthroughs happen here in Canada, and that Canadians can realize the social and economic benefits. Promoting economic development in communities helps support business by encouraging the development of skills, ideas and opportunities across the country. Taken together, Industry Canada' strategic outcomes support growth in employment, income, productivity and sustainable development in Canada.

Internal Services are groups of activities and resources that are administered to support the needs of programs and other corporate obligations of Industry Canada. Internal Services include only those activities and resources that apply across Industry Canada, not those provided specifically to a program.

Industry Canada' activities are delivered at its headquarters in Ottawa as well as in the regions. There are 6 regional offices with service points located across Canada.

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

2. Summary of significant accounting policies

The financial statements have been prepared in accordance with Treasury Board accounting policies stated below, which are based on Canadian generally accepted accounting principles for the public sector. The presentation and results using the stated accounting policies do not result in any significant differences from the Canadian generally accepted accounting principles.

Significant accounting policies are as follows:

  1. Parliamentary authorities – Industry Canada is financed by the Government of Canada through Parliamentary authorities. Financial reporting of authorities provided to Industry Canada do not parallel financial reporting according to generally accepted accounting principles since authorities are primarily based on cash flow requirements. Consequently, items recognized in the Statement of Operations and the Statement of Financial Position are not necessarily the same as those provided through authorities from Parliament. Note 3 provides a reconciliation between the bases of reporting. The planned results amounts in the Statement of Operations are consistent with the amounts reported in the future-oriented financial statements included in the 2009–10 Report on Plans and Priorities.
  2. Consolidation – The financial statements include the accounts of Industry Canada, the Canadian Intellectual Property Office (CIPO) Revolving Fund and 2 special operating agencies: Measurement Canada and Industrial Technologies Office. The accounts of these sub-entities have been consolidated with those of Industry Canada and all interorganizational balances and transactions have been eliminated.
  3. Net cash provided by Government – Industry Canada operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by Industry Canada is deposited to the CRF and all cash disbursements made by Industry Canada are paid from the CRF. The net cash provided by Government is the difference between all cash receipts and all cash disbursements, including transactions between departments of the Government.
  4. Amounts due from/to the CRF are the result of timing differences at year-end between when a transaction affects authorities and when it is processed through the CRF. Amounts due from the CRF represent the net amount of cash that Industry Canada is entitled to draw from the CRF without further appropriations to discharge its liabilities.
  5. Revenues
    • Revenues from regulatory fees are recognized in the accounts based on the services provided in the year.
    • Funds received from external parties for specified purposes are recorded upon receipt as deferred revenues. These revenues are recognized in the period in which the related expenses are incurred.
    • Funds that have been received are recorded as deferred revenues, provided that Industry Canada has an obligation to other parties for the provision of goods, services or the use of assets in the future.
    • Other revenues are accounted for in the period in which the underlying transaction or event that gave rise to the revenue takes place.
  6. Expenses
    • Expenses are recorded on the accrual basis.
    • Grants are recognized in the year in which the conditions for payment are met. In the case of grants that do not form part of an existing program, the expense is recognized when the Government announces a decision to make a non-recurring transfer, provided the enabling legislation or authorization for payment receives parliamentary approval prior to the completion of the financial statements.
    • Contributions are recognized in the year in which the recipient has met the eligibility criteria or fulfilled the terms of a contractual transfer agreement, provided that the transfer is authorized and a reasonable estimate can be made.
    • Vacation pay and compensatory leave are accrued as the benefits are earned by employees under their respective terms of employment.
    • Services provided without charge by other government departments for accommodation, the employer's contribution to the health and dental insurance plans, workers' compensation costs, and legal services are recorded as operating expenses at their estimated cost.
  7. Employee future benefits
    1. Pension benefits: Eligible employees participate in the Public Service Pension Plan, a multi-employer pension plan administered by the Government. Industry Canada's contributions to the Plan are charged to expenses in the year incurred and represent the total departmental obligation to the Plan. Current legislation does not require Industry Canada to make contributions for any actuarial deficiencies of the Plan.
    2. Severance benefits: Employees are entitled to severance benefits under labour contracts or conditions of employment. These benefits are accrued as employees render the services necessary to earn them. The obligation relating to the benefits earned by employees is calculated using information derived from the results of the actuarially determined liability for employee severance benefits for the Government as a whole.
  8. Accounts and loans receivable - Stated at the lower of cost and net recoverable value. A valuation allowance is recorded for receivables where recovery is considered uncertain.
  9. Loans – Loans are stated at the amounts that are realizable. Loans are subject to payment in the event of the default of the debtor. An allowance is used to reduce the carrying value of the loans to amounts that approximate their net realizable value. Interest on loans receivable is applied in accordance with the policy that governs the loan. Interest revenue is recognized at the time it is applied to the account.
  10. Allowances for loan guarantees – An allowance for loan guarantees is recorded for potential losses on loan guarantees when it is likely that a payment will be made in the future to honour a guarantee and when the amount of the loss can be reasonably estimated.
    The allowance for losses on outstanding loan guarantees is based on forecasting models developed by program areas.
  11. Repayable contributions – Contributions where the recipient is expected to repay the amount advanced. Depending on their nature, they are classified as either unconditionally repayable or conditionally repayable and are accounted for accordingly.
    1. Unconditionally repayable contributions are contributions that must be repaid without qualification. Normally, these contributions are provided with a low or no interest clause. Due to their concessionary nature, they are recorded on the Statement of Financial Position as loans at their estimated present value. A portion of the unamortized discount is recorded as revenue each year to reflect the change in the present value of the contributions outstanding. An estimated allowance for uncollectibility is recorded where appropriate.
    2. Conditionally repayable contributions are contributions that all or a part of which become repayable if conditions specified in the contribution agreement come into effect. Accordingly, they are not recorded on the Statement of Financial Position until such time as the conditions specified in the agreement come into effect, at which time they are recorded as a receivable and a reduction in transfer payment expenses. An estimated allowance for uncollectibility is recorded where appropriate.
  12. Prepaid expenses – Includes prepaid expenses, deferred charges and payments where, pursuant to a contract or contribution agreement, a payment is made before the completion of the work, delivery of the goods or rendering of the service.
  13. Contingent liabilities – Contingent liabilities are potential liabilities that may become actual liabilities when one or more future events occur or fail to occur. To the extent that the future event is likely to occur or fail to occur, and a reasonable estimate of the loss can be made, an estimated liability is accrued and an expense recorded. If the likelihood is not determinable or an amount cannot be reasonably estimated, the contingency is disclosed in the notes to the financial statements.
  14. Environmental liabilities – Environmental liabilities reflect the estimated costs related to the management and remediation of environmentally contaminated sites. Based on management's best estimates, a liability is accrued and an expense recorded when the contamination occurs or when Industry Canada becomes aware of the contamination and is obligated, or is likely to be obligated, to incur such costs. If the likelihood of Industry Canada's obligation to incur these costs is not determinable, or if an amount cannot be reasonably estimated, the costs are disclosed as contingent liabilities in the notes to the financial statements.
  15. Foreign currency transactions – Transactions involving foreign currencies are translated into Canadian dollar equivalents using rates of exchange in effect at the time of those transactions. Monetary assets and liabilities denominated in a foreign currency are translated into Canadian dollars using the rate of exchange in effect at the year-end. Gains and losses resulting from foreign currency transactions are included in the Statement of Operations.
  16. Tangible capital assets – All tangible capital assets and leasehold improvements having an initial cost of $10,000 or more are recorded at their acquisition cost. Industry Canada does not capitalize intangibles; works of art and historical treasures that have cultural, aesthetic or historical value; assets located on Indian Reserves; and museum collections.

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

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

    Assets under construction are recorded in the applicable capital asset class in the year that they become available for use and are not amortized until they become available for use.
  17. Measurement uncertainty – The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses reported in the financial statements. At the time of preparation of these statements, management believes the estimates and assumptions to be reasonable. The most significant items where estimates are used are contingent liabilities, environmental liabilities, the liability for employee severance benefits and the useful life of tangible capital assets. Actual results could differ significantly from those estimated. Management's estimates are reviewed periodically and, as adjustments become necessary, they are recorded in the financial statements in the year they become known.

3. Parliamentary authorities

Industry Canada receives most of its funding through annual parliamentary authorities. Items recognized in the State of Operations and the Statement of Financial Position in one year may be funded through parliamentary authorities in prior, current or future years. Accordingly, Industry Canada has different net results of operations for the year on a government-funding basis than on an accrual-accounting basis. The differences are reconciled in the following tables:

a) Reconciliation of net cost of operations to current year authorities used

(in thousands of dollars)
2010 2009
Restated
(note 16)
Net cost of operations 1,468,556 513,035
Adjustments for items affecting net cost of operations but not affecting authorities:
Revenue not available for spending 966,745 584,671
Repayment of conditionally repayable contributions 155,067 138,375
Services provided without charge by other government departments (89,236) (87,081)
Provision for loan guarantees (29,321) (44,178)
Bad debts / writeoffs / writedown (23,960) (6,852)
Amortization of tangible capital assets (16,258) (15,103)
Decrease in employee severance benefits 6,139 (13,286)
Adjustment of previous year's accounts payable 14,915 13,593
Refund of prior year's expenditures 17,738 11,913
Transfer payment adjustments 2,400 510
Decrease in allowance for environmental liabilities 90 10
Increase in vacation pay and compensatory leave (2,811) (1,469)
Gain on disposal and writedown of tangible capital assets 178 (143)
Year-end accrual of transfer payments 40,851 70,996
Other (592) (1,582)
Total 1,041,945 650,374
Adjustments for items not affecting net cost of operations but affecting authorities:
Increase in loans and advances 86,790 51,305
Decrease in deferred revenue (49,212) (1,266)
Increase in allowance for vacation and compensatory leave 318 375
Acquisitions of tangible capital assets 19,240 14,748
Total 57,136 65,162
Current year authorities used 2,567,637 1,228,571
(b) Authorities provided and used

(in thousands of dollars)
2010 2009
Authorities provided:
Vote 1 – Operating expenditures 497,279 449,062
Vote 5 – Capital expenditures 24,298 21,936
Vote 10 – Grants and contributions 1,621,919 649,598
Statutory amounts 1,077,388 379,552
Total 3,220,884 1,500,148
Less:
Authorities available for future years 153,947 152,645
Lapsed authorities: Operating 499,300 118,932
Current year authorities used 2,567,637 1,228,571

4. Accounts receivable and advances

(in thousands of dollars)
2010 2009
Receivables from other government departments and agencies 165,202 73,460
Accounts receivable from external parties 51,878 46,202
Accrued receivables 18,993 18,251
Employee advances 74 88
Other receivables 6 2,002
Total 236,153 140,003
Allowance for doubtful accounts on receivables from external parties (45,346) (37,655)
Total 190,807 102,348

5. Loans

(in thousands of dollars)
2010 2009
Atlantic Provinces Power Development Act 244 690
Enterprise development loans 110,000 110,000
Less: Unamortized discount loans 24,208 27,666
Net Enterprise development loans 85,792 82,334
Unconditionally repayable contributions 407,809 325,610
Less: Unamortized discount 467 785
Less: Allowance for doubtful loans and advances 3,253 2,936
Net unconditionally repayable contributions 404,089 321,889
Loans on expired loan guarantees 130,570 230,265
Less: Allowance for doubtful loans 130,570 230,265
Net loans on expired loan guarantees - -
Total 490,125 404,913

Atlantic Provinces Power Development Act – Loans have been made to the Atlantic Provinces to assist in the generation of electrical energy by steam-driven generators in the provinces, and in the control and transmission of electrical energy. The loans bear interest at rates from 4.5% to 8.5% per annum and are repayable in annual instalments over the next 4 years, with final instalments due March 31, 2014.

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

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

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

6. Tangible capital assets

(in thousands of dollars)
Cost Accumulated Amortization Net book value
Capital asset class Opening balance Acquisitions Disposals and writeoffs* Closing balance Opening balance Amortization Disposals and writeoffs* Closing balance 2010 2009
Land 1,450 - - 1,450 1,450 1,450
Buildings 46,165 11 357 45,819 21,248 1,662 15 22,895 22,924 24,917
Works and infrastructure 6,213 - (78) 6,291 4,276 214 - 4,490 1,801 1,937
Machinery and equipment 75,208 5,119 12,401 67,926 55,098 3,669 12,901 45,866 22,060 20,110
Vehicles 12,871 1,098 1,030 12,939 8,712 1,189 1,051 8,850 4,089 4,159
Computer hardware 138,485 1, 391 85,071 54,805 131,675 2,571 85,499 48,747 6,058 6,810
Computer software 38,714 378 1,776 37,316 25,703 4,708 2,409 28,002 9,314 13,011
Assets under construction** 26,136 11,221 14,536 22,821 22,821 26,136
Leasehold Improvements 23,391 22 (12,801) 36,214 12,693 2,245 (11,397) 26,335 9,879 10,698
Total 368,6 33 19,240 102,292 285,581 259,405 16,258 90,478 185,185 100,396 109,228

* Includes primarily disposals, writeoffs, but also includes adjustments to capital assets. (return to the text reference note1)

** Disposals of assets under construction represent assets that were put into production during the year and have been transferred to other capital asset classes as applicable. (return to the text reference note2)

7. Accounts payable and accrued liabilities

(in thousands of dollars)
2010 2009
Accounts payable to other government departments and agencies 31,727 13,955
Accounts payable to external parties 694,032 338,062
Transfer payments 241,910 282,761
Accrued salaries and wages - 14,477
Other external payables 242 123
Total 967,911 649,378
Accrued liabilities 266 335
Total 968,177 649,713

8. Deferred revenue

The majority of Industry Canada's deferred revenues results from the auction of radio licence frequencies. These revenues are recognized over a 10-year period. Another main source of deferred revenues comes from examination requests of intellectual property. These fees are charged in advance and recognized as revenue once the exam is completed.

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

(in thousands of dollars)
2010 2009
Opening balance 4,957,325 958,159
Licence fees received 224,699 4,467,727
Licence fees earned (801,855) (469,726)
Total (577,156) 3,998,001
Fees for trademarks, patents and copyrights received 26,497 31,834
Fees for trademarks, patents and copyrights earned (30,249) (30,872)
Total (3,752) 962
Other services of a regulatory nature received 154 305
Other services of a regulatory nature earned (303) (657)
Total (149) (352)
Prime Minister's Awards received 6 150
Prime Minister's Awards disbursed (116) (125)
Total (110) 25
Customer deposits received 67,212 56,505
Customer deposits disbursed (66,641) (55,975)
Total 571 530
Total 4,376,729 4,957,325

9. Other liabilities

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

(in thousands of dollars)
Opening balance Receipts Payments Closing balance
Restitutions under the Competition Act 6 - 4 2
Cost-sharing project 1,230 903 720 1,413
Securities in Trust, Bankruptcy and Insolvency Act 83 - - 83
Contra – Securities in Trust, Bankruptcy and Insolvency Act (31) - - (31)
Unclaimed Dividends and Undistributed Assets 19,014 2,650 1,448 20,216
Petro-Canada Enterprises unclaimed shares 689 - - 689
Canada Business Corporations Act (CBCA) 7,552 2,095 671 8,976
Winding-up and Restructuring Act 1,282 18 - 1,300
Canada/Provinces Business Service Centre 2 400 270 132
Total 29,827 6,066 3,113 32,780

Restitutions under the Competition Act – This account was established to facilitate judgments rendered under Article 52 of the Competition Act, and to account for monies received in trust for restitution and for subsequent payment.

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

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

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

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

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

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

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

10. Employee future benefits

a) Pension benefits

Industry Canada' employees participate in the Public Service Pension Plan, which is sponsored and administered by the Government of Canada. Pension benefits accrue up to a maximum period of 35 years at a rate of 2% per year of pensionable service, times the average of the best 5 consecutive years of earnings. The benefits are integrated with Canada/Quebec Pension Plan benefits and are indexed to inflation.

Both the employees and Industry Canada contribute to the cost of the Plan. The 2009–10 expense amounts to $59,495,834 ($51,293,315 in 2008–09), which represents approximately 1.9 times (2.0 times in 2008–09) the contributions by employees.

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

b) Severance benefits

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

(in thousands of dollars)
2010 2009
Accrued benefit obligation, beginning of year 95,070 81,784
Expense for the year 3,892 22,302
Benefits paid during the year (10,480) (9,016)
Total 88,482 95,070

11. Contingent liabilities

Contingent liabilities arise in the normal course of operations and their ultimate disposition is unknown. They are grouped into 3 categories as follows:

a) Contaminated sites

Liabilities are accrued to record the estimated costs related to the management and remediation of contaminated sites where Industry Canada is obligated or likely to be obligated to incur such costs. Industry Canada previously had identified 2 sites where such action was possible and for which a liability of $90,000 in 2008–09 had been recorded. Industry Canada' ongoing efforts to assess contaminated sites have determined that no liability currently exists and that the sites will continue to be monitored to ensure there is no change in this assessment.

b) Claims and litigation

Claims have been made against Industry Canada in the normal course of operations. Legal proceedings for claims totalling approximately $266,135 ($245,207 in 2008–09) were still pending at March 31, 2010. Some of these potential liabilities may become actual liabilities when one or more future events occur or fail to occur. To the extent that the future event is likely to occur or fail to occur, and a reasonable estimate of the loss can be made, an estimated liability is accrued and an expense recorded in the financial statements.

c) Loan guarantees

Industry Canada has guaranteed the following debts:

(in thousands of dollars)
limit Loan Guarantee Outstanding Balance
Enterprise Development Program 1,200,000 212
Small Business Loans Act (SBLA) 1,838,292 12,479
Canada Small Business Financing Act (CSBFA) 1,550,349 684,549
Capital Leasing Pilot Project 15,661 7,877
Regional Aircraft Credit Facility 1,500,000 155,531

An allowance of $376,699,601 has been recorded for estimated losses on outstanding loan guarantees ($346,714,173 in 2008–09). The expenses related to loan guarantees are reported under Non-Economic Action Plan transfer payments in note 14 for segmented Statement of Operations information.

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

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

The authorized limit represents the Crown' maximum liability incurred on the aggregate amount of loans made by the lender starting in April 1993 (SBLA) and April 1999 (CSBFA).

The outstanding guarantee for loans made starting in April 1993 (SBLA) and April 1999 (CSBFA) is the lesser of the Crown' net liability (authorized limit less claims paid by the Crown) or 85% of the outstanding loan amounts of the lenders.

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

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

The outstanding guarantee for capital leases entered into since April 2002 is the lesser of the Crown' net liability or 85% of the outstanding capital lease amounts of the lessors.

Regional Aircraft Credit Facility – Industry Canada has extended loan guarantees on several Air Canada regional jets. Provisioning from the Canada Account Loss Provisioning Pool has been set aside by Finance Canada, manager of the funds. The loan guarantees began in the summer of 2005.

12. Contractual obligations

The nature of Industry Canada's activity results in some large multi-year contracts and obligations whereby Industry Canada will be committed to make future payments in order to carry out its transfer payment programs or when the services/goods are received. Significant contractual obligations that can be reasonably estimated are summarized as follows:

(in thousands of dollars)
2011 2012 2013 2014 2015 and thereafter Total
Transfer payments 1,906,637 122,000 167,000 117,000 122,000 2,434,637
Other goods and services 60 5 5 1 4 75
Other 54 - - - - 54
Total 1,906,751 122,005 167,005 117,001 122,004 2,434,766

13. Related party transactions

Industry Canada is related as a result of common ownership to all government departments, agencies and Crown Corporations. Industry Canada enters into transactions with these entities in the normal course of business and on normal trade terms. During the year, Industry Canada received services that were obtained without charge from other government departments as disclosed below.

a) Common services provided without charge by other government departments

During the year, Industry Canada received services without charge from certain common service organizations, related to accommodations, legal services, the employer's contribution to the health and dental insurance plans, and workers' compensation costs. These services provided without charge have been recorded in Industry Canada's Statement of Operations as follows:

(in thousands of dollars)
2010 2009
Accommodation 56,339 56,548
Employer's contribution to the health and dental insurance plans 28,660 26,690
Workers' compensation coverage 514 491
Legal services 3,723 3,352
Total 89,236 87,081

The Government has centralized some of its administrative activities for efficiency, cost-effectiveness purposes and economic delivery of programs to the public. As a result, the Government uses central agencies and common service organizations so that one department performs services for all other departments and agencies without charge. The costs of these services, such as the payroll and cheque issuance services provided by Public Works and Government Services Canada and audit services provided by the Office of the Auditor General, are not included in Industry Canada's Statement of Operations.

b) Administration of programs on behalf of other government departments

Under a memorandum of understanding signed with Infrastructure Canada on February 22, 2005, Industry Canada administers the Canada Strategic Infrastructure Funds program in Ottawa. During the year, Industry Canada incurred expenses of $95,755,732 ($111,932,495 in 2008–09) on behalf of Infrastructure Canada. These expenses are reflected in the financial statements of Infrastructure Canada and are not recorded in these financial statements.

Under a memorandum of understanding signed with National Defence on September 1, 2004, Industry Canada administers a program called Development, Test, and Evaluation and Technical Services Activities. During the year, Industry Canada incurred expenses of $3,049,742 ($3,892,103 in 2008–09) on behalf of National Defence. These expenses are reflected in the financial statements of National Defence and are not recorded in these financial statements.

c) Other transactions with related parties

(in thousands of dollars)
2010 2009
Expenses – Other Government departments and agencies 133,767 116,046
Revenues – Other Government departments and agencies 13,717 13,901

14. Segmented information

Presentation by segment is based on Industry Canada's program activity architecture. The presentation by segment is based on the same policies as described in the Summary of significant accounting policies in note 2. The following table presents the expenses incurred and revenues generated for the main program activities, by major object of expense and by major type of revenue. The segment results for the period are as follows:

(in thousands of dollars)
The Canadian marketplace Science and technology, knowledge, and innovation Competitive businesses Internal services 2010
Total
2009
Total
Expenses
Transfer payments
Economic Action Plan - 1,004,929 250,942 - 1,255,871 -
Non-Economic Action Plan 8,727 273,142 204,167 - 486,036 501,621
Total transfer payments 8,727 1,278,071 455,109 - 1,741,907 501,621
Operating expenses
Salaries and employee benefits 293,889 63,135 63,804 144,557 565,385 537,471
Professional and special services 46,077 8,105 18,359 34,865 107,406 107,251
Accommodation 22,455 2,753 4,324 26,807 56,339 56,548
Travel 9,381 1,583 2,768 3,204 16,936 17,599
Amortization 8,641 4,052 118 3,447 16,258 15,103
Communication 5,177 1,080 1,881 6,009 14,147 12,050
Furniture and equipment 5,666 2,952 1,441 5,195 15,254 13,314
Equipment repair and maintenance 4,082 415 131 7,159 11,787 10,694
Rental 9,687 225 393 713 11,018 10,776
Utilities, materials and supplies 2,273 3,571 1,085 2,168 9,097 8,503
Postage 1,131 111 236 524 2,002 1,853
Loss on disposal of capital assets 10,321 (5) - 11 10,327 143
Bad debt expense 12 3,852 9,778 5 13,647 6,829
Other operating expenses 732 1,354 140 (2,084) 142 (180)
Total operating expenses 419,524 93,183 104,458 232,580 849,745 797,954
Total expenses 428,251 1,371,254 559,567 232,580 2,591,652 1,299,575
Revenues
Radio spectrum licences 822,633 - - - 822,633 492,419
Sales of services 212,067 12,024 57,214 2 281,307 279,315
Revenue from fines 13,342 - - - 13,342 14,597
Amortization of discounts - - 3,458 318 3,776 3,775
Other revenue 327 658 747 116 1,848 1,254
Gains on disposals of assets 140 12 28 10 190 200
Total revenues 1,048,509 12,694 61,447 446 1,123,096 791,560
Net cost from continuing operations (620,258) 1,358,560 498,120 232,134 1,468,556 508,015

15. Transfers from/to other government departments

Effective April 1, 2010, Industry Canada transferred responsibility for the Mackenzie Gas Project Impacts Act to the Minister of the Environment in accordance with Order-in-Council P.C. 2008-1730, including the stewardship responsibility for the assets and liabilities related to the program. Accordingly, Industry Canada transferred the following liabilities related to the Mackenzie Gas Project Office to the Department of Environment on April 1, 2009.

(in thousands of dollars)
Liabilities
Accounts payable and accrued liabilities (note 7) 44
Vacation pay and compensatory leave 122
Employee future benefits (note 10) 387
Total 553
Adjustment to Equity of Canada (553)

16. Adoption of new accounting policies

During the year, Industry Canada adopted the revised Treasury Board accounting policy TBAS 1.2: Departmental and Agency Financial Statements, which is effective for Industry Canada's 2009–10 fiscal year. The major changes in the accounting policies of Industry Canada required by the adoption of the revised TBAS 1.2 are the recording of amounts due from the Consolidated Revenue Fund as an asset on the Statement of Financial Position and the removal of Industry Canada's investment in the Business Development Bank of Canada and related dividend revenue.

The adoption of the new Treasury Board accounting policies has been accounted for retroactively with the following impact on the comparative results for 2008–09:

(in thousands of dollars)
2009
As previously stated
Effect of changes 2009 Restated
Statement of Operations
Revenues 808,047 16,487 791,560
Expenses 1,299,797 222 1,299,575
Statement of Financial Position
Financial Assets 1,823,439 941,759 881,680
Equity of Canada (4,169,615) (941,759) (5,111,374)

17. Comparative information

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

Summary of the Assessment of Effectiveness of the Systems of Internal Control over Financial Reporting and the Action Plan of Industry Canada
For the fiscal year ending March 31, 2010

Annex to the Statement of Management Responsibility Including Internal Control over Financial Reporting

Note to the reader

With the new Treasury Board Policy on Internal Control, effective April 1, 2009, departments are now required to demonstrate the measures they are taking to maintain an effective system of internal control over financial reporting (ICFR).

As part of this policy, departments are expected to conduct annual assessments of their system of ICFR, to establish action plan(s) to address any necessary adjustments, and to attach to their Statements of Management Responsibility a summary of their assessment results and action plan.

Effective systems of ICFR aim to achieve reliable financial statements and to provide assurances that:

  • transactions are appropriately authorized;
  • financial records are properly maintained;
  • assets are safeguarded from risks such as waste, abuse, loss, fraud and mismanagement;
  • applicable laws, regulations and policies are complied with.

It is important to note that the system of ICFR is not designed to eliminate all risks, but rather to mitigate risk to a reasonable level with controls that are balanced with and proportionate to the risks they aim to mitigate.

The maintenance of an effective system of ICFR is an ongoing process designed to identify, assess key risks and the effectiveness of the associated key controls and adjust them as required, as well as to monitor its performance in support of continuous improvement. As a result, the scope, pace and status of those departmental assessments of the effectiveness of their system of ICFR will vary from one organization to the other based on risks and taking into account their unique circumstances.

1. Introduction

This document is attached to Industry Canada' Statement of Management Responsibility including Internal Control over Financial Reporting for the fiscal year 2009–10. As required by the new Treasury Board Policy on Internal Control, effective April 1, 2009, for the first time, this document provides summary information on the measures taken by Industry Canada to maintain an effective system of internal control over financial reporting (ICFR). In particular, it provides summary information on the assessments conducted by Industry Canada as at March 31, 2010, including results and related action plans along with some financial highlights pertinent to understanding the control environment unique to Industry Canada.

1.1 Authority, mandate and program activities

Detailed information on Industry Canada' authority, mandate and program activities can be found in the Departmental Performance Report (DPR) and Report on Plans and Priorities (RPP).

1.2 Financial highlights

Industry Canada' 2009–10 financial highlights can be found in the online version of the DPR. In addition, information can also be found in the Public Accounts of Canada.

  • Industry Canada has 6 regional offices. Each office has a decentralized finance and accounting function in which operating expenses are initiated, approved and processed.
  • Industry Canada has a number of significant information systems critical to its operations and financial reporting.
  • Total expenses were $2.59 billion. Transfer payments (67% or $1.7 billion) comprise the majority followed by salaries of $581 million (22%).
  • Total revenues were $1.1 billion, largely from the recognition of deferred radio spectrum revenue but also including sales of services and fines.
  • Tangible capital assets comprise 7% of departmental total assets ($1.5 billion). Accounts payable and accrued liabilities comprise 16% of total liabilities ($5.9 billion).
1.3 Service arrangements relevant to financial statements

Industry Canada relies on other government departments for the processing of certain transactions that are recorded in its financial statements:

  • Public Works and Government Services Canada administers the payments of salaries and the procurement of goods and services for Industry Canada.
  • The Treasury Board Secretariat provides Industry Canada with information used to calculate various accruals and allowances including the accrued severance liability.
1.4 Material changes in fiscal year 2009–10

During fiscal year 2009–10, there have been several notable changes to the control environment at Industry Canada.

The following programs were created as a result of Canada' Economic Action Plan:

  • The Federal Economic Agency of Southern Ontario (FedDev Ontario). This agency is being supported by Industry Canada during its inception and is expected to be self-supporting by April 1, 2010.
  • The Marquee Tourism Program, Knowledge Infrastructure Program and Recreational Infrastructure Program.

2. Industry Canada' control environment relative to ICFR

Industry Canada' focus is to ensure that risks are well managed through a responsive and risk-based control environment that enables continuous improvement and innovation.

Industry Canada' system of ICFR is appropriately designed to promote a sound control environment as described in the department' entity-level controls. These entity-level controls are designed to ensure:

  • an effective control environment designed to achieve effective ICFR and to generate reliable financial statements;
  • an effective risk assessment process which identifies, analyzes and manages risks related to financial reporting within a broader corporate risk management framework;
  • an effective information system and communications, which identify, capture and communicate timely information relevant to maintaining the system of ICFR, for the appropriate individuals;
  • an effective monitoring system designed to detect and remediate control deficiencies within the system of ICFR.
2.1 Key positions, roles and responsibilities

The key positions with responsibilities for maintaining and reviewing the effectiveness of the system of ICFR within Industry Canada are the following:

key positions with responsibilities for maintaining and reviewing the effectiveness of the system of ICFR
Position Responsibilities
Deputy Head Industry Canada' Deputy Head, as Accounting Officer, assumes the overall responsibility and leadership for the measures taken to maintain an effective system of internal controls.
Chief Financial Officer (CFO) Industry Canada' CFO reports directly to the Deputy Head and provides leadership for the coordination, coherence and focus on the design and maintenance of an effective and integrated system of ICFR, including its annual assessment. Also falling under the responsibility of the CFO is the management of the Corporate Risk Profile of Industry Canada.
Senior Departmental Managers Industry Canada' senior departmental managers in charge of program delivery are responsible for maintaining and reviewing the effectiveness of the system of ICFR that falls within their mandate.
Chief Audit Executive (CAE) Industry Canada' CAE reports directly to the Deputy Head and provides assurance through periodic internal audits that are instrumental in maintaining an effective system of ICFR.
Departmental Audit Committee (DAC) The DAC is an advisory committee that provides objective views on Industry Canada'risk management, control and governance frameworks. It is composed of 3 external members and was established in 2007. As such, it provides views on Industry Canada' Corporate Risk Profile and its system of internal control, including the assessment and action plans.
2.2 Key measures instituted by Industry Canada

Industry Canada's control environment also includes a series of measures to equip its staff to manage risks well through raising awareness, providing appropriate knowledge and tools, as well as developing skills.

To achieve these objectives, Industry Canada has put into place the following:

  • An Office of Values and Ethics under the Deputy Head;
  • Industry Canada' code of conduct and values and ethics code;
  • A division under the CFO dedicated to internal control;
  • Annual performance agreements with clearly identified financial management responsibilities;
  • Training programs and outreach in core areas of financial management;
  • Departmental policies tailored to Industry Canada' control environment;
  • Regularly updated delegated authorities matrix;
  • Documentation of main business processes and related key risk and control points to support the management and oversight of its system of ICFR;
  • IT processing systems to achieve greater security, integrity, efficiency and effectiveness.

3. Assessment of the Industry Canada' system of ICFR

3.1 Assessment baseline

In 2004, the Government of Canada commenced an initiative to determine the ability of departments to sustain control-based audits of their financial statements, thus placing reliance on well-functioning internal controls. As a result, beginning in 2006, the largest departments, including Industry Canada, are formalizing their approach to managing their systems of ICFR, including readiness assessments and action plans.

Whether it is to support the control-based audit requirements or those of the Policy on Internal Control, an effective system of ICFR aims to provide reasonable assurance that:

  • transactions are appropriately authorized;
  • financial records are properly maintained;
  • assets are safeguarded; and
  • applicable laws, regulations and policies are complied with.

This included assessment of design and operating effectiveness of the system of ICFR leading to ensuring the ongoing monitoring and continuous improvement of the departmental system of ICFR.

Evaluation of process design effectiveness ensured that key control points were identified, documented, in place and aligned with the risks (i.e. controls are balanced with and proportionate to the risks they aim to mitigate) and that any remediation is addressed. Operating effectiveness meant that the application of key controls has been tested over a defined period and that any required remediation is addressed. Such testing covered all departmental control levels that include corporate or entity, general computer and business process controls.

3.2 Assessment method at Industry Canada

In proceeding with its preparations for a control-based audit, Industry Canada has taken measures to assess its system of ICFR starting with its financial statements with a focus on the following main accounts. For example:

  • salaries;
  • operating expenses and fixed assets;
  • revenues;
  • transfer payments.

For each significant account, Industry Canada completed the following steps:

  • gathered information and documentation pertaining to processes and locations, risks and controls relevant to ICFR, including appropriate policies and procedures;
  • mapped out key processes with the identification and documentation of key risk and control points on the basis of materiality, volumes, complexity, geographic dispersion, susceptibility to losses/frauds, areas subject to audit observations, past history and external attention;
  • assessed entity-level controls and general IT controls in its main IT systems;
  • completed design and operating effectiveness testing at the 3 levels of ICFR.

Industry Canada has progressively attained maturity in this domain through the following:

Assessment method
Year Step Activities
2006 Risk identification and scoping Industry Canada assessed its key risks related to financial reporting. Key risks are those that might reasonably, in a given time frame, have a substantial effect on the organization' financial reporting.
2007–08 ICFR documentation and design effectiveness Industry Canada identified and documented key controls that address key risks to provide support to the system of internal control over financial reporting. Key controls help organizations devote monitoring resources where they can provide the most value for the assessment of the system.
2009 Operating effectiveness of ICFR Industry Canada performed operating effectiveness testing of all of its key ICFR. This is the step in which evaluators identified that the key controls are operating well over a defined period of time. Remediation of the identified significant gaps or issues was also concluded in 2009.
Ongoing monitoring of ICFR Industry Canada implemented the ongoing monitoring of its key ICFR. Monitoring of this system will rely on appropriate evidence to determine that its key controls continue to operate effectively and have taken into account any significant changes in the Department. The Departmental Audit Committee will ensure plans are in place to maintain an audit-ready status.

4. Assessment results

Industry Canada has confirmed the status of readiness to sustain a control-based audit of its departmental financial statements based on a third-party assessment of its controls.

4.1 Design and operating effectiveness

Design effectiveness testing was completed during fiscal years 2007–08 including completion of documentation of key business processes. Testing was completed and appropriate remediation was completed.

During fiscal year 2009–10, Industry Canada management completed assessments of the operating effectiveness of its whole system of ICFR. The testing was performed using leading control testing practices. Only one minor gap was found and corrected through the improvement of the change management process surrounding General Computer Control.

Based on this assessment, and the successful results of the pilot audit to assess the state of readiness to sustain a control-based audit, Industry Canada management concluded that its system of ICFR was well managed during fiscal year 2009–10 and was ready to undergo a control-based audit of its financial statements.

4.2 Ongoing monitoring of effectiveness of ICFR

The following table depicts the state of ICFR as of March 31, 2010, for material financial reporting areas that are defined as the following:

the state of ICFR as of March 31, 2010, for material financial reporting areas that are defined as the following
Areas Completion of ICFR oversight
Entity-Level Controls Testing and remediation
Salaries Testing and remediation
Operating Expenses and Fixed Assets Testing and remediation
Revenues Testing and remediation
Transfer Payments Testing and remediation
General Computer Controls Testing and remediation

This means that Industry Canada has put in place an ongoing monitoring program to ensure that its ICFR will continue to perform as expected. In addition, Industry Canada will integrate new key controls as required by any adjustments to its business processes and other control levels related to substantive organizational changes in the Department, including the management of timely testing and remediation as appropriate. Where necessary, these will form part of future assessment plans. In addition, the Departmental Audit Committee will, in accordance with its charter, ensure audit-readiness assessment plans that include semi-annual monitoring and reporting are in place to maintain a status capable of supporting a control-based audit.

5. Industry Canada' Action Plan

In fiscal year 2010–11, Industry Canada will continue the ongoing monitoring of the operating effectiveness of its ICFR and will report the results of this activity in this annex yearly. In addition, when new programs are introduced, or significant internal changes are made, Industry Canada will proactively identify, document and test key controls based on associated risks that will form part of the assessment plan as the basis for the monitoring program.

The senior management at Industry Canada is committed to sustaining and continuously improving its sound framework of effective ICFR in the Department, including ongoing monitoring to ensure that the key controls meet the expectations of management and stakeholders and appropriately mitigate associated risks.

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