Departmental Performance Report for the period ending March 31, 2011

Table of contents


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How to read this report

This Departmental Performance Report (DPR) presents the results of Industry Canada's strategic outcomes and program activities during the 2010–11 fiscal year, compared with the commitments stated in the Department's 2010–11 Report on Plans and Priorities (RPP). The report contains an introductory message from the Minister summarizing the Department's performance and the following four sections:

Section 1—Organizational Overview provides general information on the Department, contribution of organizational priorities to strategic outcomes, risk analysis and operating environment, performance summary information, and departmental expenditure profile.

Section 2—Analysis of Program Activities by Strategic Outcome includes detailed analysis of Industry Canada's performance at the program activity level by strategic outcome. Variance analysis is also provided at the program activity level between Planned and Actual financial and human resources when there is a difference of 10 percent or more. For the 2010–11 fiscal year, Industry Canada has also included results achieved under Canada's Economic Action Plan (EAP). Following new TBS guidance, a section specific to the EAP has been added at the end of Section 2, highlighting performance results for each EAP initiative under Industry Canada's responsibility.

As a result, Industry Canada's Human Resources and Financial Resources in sections 1 and 2 do not include EAP information. As well, to ensure proper comparison year-over-year, the Department has also removed Financial and Human Resources associated with the EAP from the 2009–10 figures and charts, more specifically in Section 2 under strategic outcomes two and three. For this reason, numbers in this DPR may not reflect Industry Canada's numbers in the corresponding Public Accounts, in the RPP and the 2009–10 DPR.

In response to the Public Accounts Committee (PAC) Meeting Number 15 recommendations, Industry Canada has broadened its presentation of risks in the DPR to better situate the Department's work and present a balanced and transparent performance story. Therefore, in Section 2, risk analysis is presented at the program activity level and under Canada's Economic Action Plan Section, where applicable.

The 2010–11 DPR reports on targets from the Department's approved Management, Resources and Results Structure at the program activity level. To assign performance status, we have used the following guide in accordance with instructions from the Treasury Board of Canada Secretariat:

  • Exceeded: More than 100 percent of the expected level of performance was achieved.
  • Met All: 100 percent of the expected level of performance was achieved.
  • Mostly Met: 80 to 99 percent of the expected level of performance was achieved.
  • Somewhat Met: 60 to 79 percent of the expected level of performance was achieved.
  • Not Met: Less than 60 percent of the expected level of performance was achieved.

Trend analysis continues to be provided, when possible and when historical data are available, to help readers establish year-over-year continuity and to better understand how Industry Canada achieves its strategic outcomes and contributes to whole-of-government outcomes. Industry Canada documents data sources and reference material for performance information and results for future reference.

Section 3—Supplementary Information includes information on the Department's financial highlights and provides links to the Department's financial statements, as well as supplementary information tables.

Section 4—Other Items of Interest, such as Information Management and Information Technology (IM/IT) and Responsibilities at Industry Canada, provides departmental contact information, as well as links to information available online.

For comparative purposes, some actual spending amounts for 2009–10 include programs that were later transferred to the Federal Economic Development Agency for Southern Ontario (FedDev Ontario).

For comparative purposes, some actual spending amounts for 2009–10 include programs that were later transferred to the Federal Economic Development Agency for Southern Ontario (FedDev Ontario).

One of the recommendations stemming from the Fifteenth Report of the Standing Committee on Public Accounts is that departments provide credible and balanced performance reports by clearly indicating where program performance was less than expected, explaining why, and discussing what steps were taken to modify program design and delivery in order to improve program performance. In response, Industry Canada improved its DPR to include program-specific risks, as well as a summary table that highlights key risks from the Corporate Risk Profile available online. Additionally, Industry Canada is including corrective actions through lessons learned at the program activity level in Section 2 of the document, in order to address issues that did not take place in the 2010–11 fiscal year as planned in the corresponding RPP.

In our continuing effort to provide Canadians with online access to information and services, we are including web links to more information and highlights. These links are numbered throughout the document and are presented as endnotes. We are committed to continuous improvement in our reporting. Should you have any comments, please contact the departmental contact listed in Section 4.


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Minister's Message

Photo of Christian Paradis, Minister of Industry and Minister of State (Agriculture)

Last year, Industry Canada and its Portfolio partners played a key role in advancing the Government's agenda in year two of Canada's Economic Action Plan.

Specific stimulus measures taken by Industry Canada were aimed at boosting economic development in both rural and urban communities through such initiatives as the Community Adjustment Fund, delivered by FedNor in Northern Ontario; extending broadband infrastructure to underserved and unserved areas across the country through the Broadband Canada: Connecting Rural Canadians program; and supporting festivals and events in communities across Canada through the Marquee Tourism Events Program. The Knowledge Infrastructure Program supported renovation and expansion projects at post-secondary institutions across Canada. Through targeted stimulus, we helped create jobs, build communities and nurture the roots of economic recovery.

In addition to fulfilling our Economic Action Plan responsibilities, Industry Canada remained focused on helping Canadian industry productivity and competitiveness in the global economy by advancing the following strategic outcomes:

  • ensuring the Canadian marketplace is efficient and competitive;
  • helping science and technology, knowledge, and innovation become more effective drivers of a strong Canadian economy; and
  • encouraging a competitive business environment to advance sustainable wealth creation.

The Department continued to ensure that marketplace policies promoted business and consumer confidence while fostering commercialization and the knowledge-based economy. Amendments to the Weights and Measures Act and the Electricity and Gas Inspection Act were introduced to protect Canadian consumers from inaccurate measurement at gas pumps and other places where goods are measured. Canada's anti-spam legislation, which helps protect the online marketplace, was also passed, and a review of federal support for business-focused research and development was initiated to get the most out of taxpayer-funded investments.

Cultivating an environment for job creation, growth and competitiveness, both domestically and internationally, remains a priority for Industry Canada. We will work to improve cost-effectiveness and efficiency, contributing to the Government of Canada's priority to balance the budget and achieving real results for all Canadians.

It is my pleasure to present Industry Canada's Departmental Performance Report for 2010–11.

Christian Paradis
Minister of Industry and Minister of State (Agriculture)


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Section 1: Organizational Overview

Raison d'être

Mission

Industry Canada's mission is to foster a growing, competitive, knowledge-based Canadian economy. The Department works with Canadians throughout the economy, and in all parts of the country, to improve conditions for investment, improve Canada's innovation performance, increase Canada's share of global trade and build an efficient and competitive marketplace.

Mandate

Industry Canada's mandate is to help make Canadian industry more productive and competitive in the global economy, thus improving the economic and social well-being of Canadians.

The many and varied activities Industry Canada carries out to deliver on its mandate are organized around three interdependent and mutually reinforcing strategic outcomes, each linked to a separate key strategy. The key strategies are shown in the illustration below.

Industry Canada's mandate

Innovation, Science and Economic Development Canada's mission and mandate (the long description is located below the image)
Long description

This chart illustrates that Industry Canada's three strategic outcomes — the Canadian marketplace is efficient and competitive; science and technology, knowledge, and innovation are effective drivers of a strong Canadian economy; and competitive businesses are drivers of sustainable wealth creation — are driven by and contribute to the Government of Canada's desired outcomes: a fair and secure marketplace; an innovative and knowledge-based economy; strong economic growth; and a strong and mutually beneficial North America. Industry Canada's three strategic outcomes are the result of the Department's three key strategies — advancing the marketplace; fostering the knowledge-based economy; and supporting business — which are delivered through various program activities and supported by strategic enablers such as people management, risk management, management accountability and other corporate functions.

The Canadian Marketplace is Efficient and Competitive

Advancing the marketplace:
Industry Canada fosters competitiveness by developing and administering economic framework policies that promote competition and innovation; support investment and entrepreneurial activity; and instill consumer, investor and business confidence.

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

Fostering the knowledge-based economy:
Industry Canada invests 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. These investments help ensure that discoveries and breakthroughs take place here in Canada and that Canadians realize the social and economic benefits.

Competitive Businesses are Drivers of Sustainable Wealth Creation

Supporting business:
Industry Canada encourages business innovation and productivity because businesses are the organizations that generate jobs and wealth creation. Promoting economic development in communities encourages the development of skills, ideas and opportunities across the country.


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Responsibilities

Industry Canada is the Government of Canada's centre of microeconomic policy expertise. The Department's founding legislation, the Department of Industry Act, established the Ministry to foster a growing, competitive and knowledge-based Canadian economy.

Industry Canada is a department with many entities that have distinct mandates, with program activities that are widely diverse and highly dependent on partnerships. Industry Canada works on a broad range of matters related to industry and technology, trade and commerce, science, consumer affairs, corporations and corporate securities, competition and restraint of trade, weights and measures, bankruptcy and insolvency, intellectual property, investment, small business and tourism.

Strategic Outcomes and Program Activity Architecture

This DPR reflects the Program Activity Architecture (PAA) outlined in the 2010–11 RPP. The PAA depicts the Department's programs and activities in a logical and hierarchical relationship to each other and to one of three strategic outcomes. As begun with the 2009–10 Estimates cycle, the resources for Program Activity: Internal Services are displayed separately from other program activities; they are no longer distributed among the remaining program activities, as was the case in previous Main Estimates.

Industry Canada's 2011–12 Program Activity Architecture

(Including Industry Canada Economic Action Plan initiatives)

Strategic Outcome: The Canadian Marketplace is Efficient and Competitive

Program Activities: Marketplace Frameworks and Regulations

Subactivities
  • Measurement Canada
  • Superintendent of Bankruptcy
  • Corporations Canada
  • Paperwork Burden Reduction
  • Investment Review
  • Canadian Intellectual Property Office
  • Internal Trade Secretariat

Program Activities: Marketplace Frameworks and Regulations for Spectrum, Telecommunications and the Online Economy

Subactivities
  • Spectrum/Telecommunications Program (Operations and Engineering)
    • International Telecommunication Union Participation Program
    • Spectrum/Telecommunications Management and Regulations
    • Regional Operations
  • Electronic Commerce

Program Activities: Consumer Affairs Program

Subactivities
  • Consumer Information
  • Consumer Policy and Non-Profit Consumer and Voluntary Organizations Contributions Program

Program Activities: Competition Law Enforcement

Subactivities
  • Competition Law Enforcement
  • Advocacy in Favour of Market Forces

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

Program Activities: Canada's Research and Innovation Capacity

Subactivities
  • Government Science and Technology Policy Agenda
  • Science, Technology and Innovation Council Secretariat
  • Knowledge Infrastructure Program*
  • Institute for Quantum Computing*

Program Activities: Communications Research Centre Canada

Subactivities
  • Information and Communications Technologies Expertise for Regulations, Standards and Programs
  • Information and Communications Technologies Expertise for Other Federal Partners
  • Innovation and Technology Transfer
  • Modernizing Federal Laboratories*

Program Activities: Commercialization and Research and Development Capacity in Targeted Canadian Industries

Subactivities
  • Industry-Specific Policy and Analysis for Innovation and Research and Development Investment
  • Innovation Capacity in the Automotive Industry
  • Research and Development Capacity in the Aerospace Industry
  • Strategic Aerospace and Defence Initiative
  • Program for Strategic Industrial Projects
  • Technology Partnerships Canada - Research and Development Program

Strategic Outcome: Competitive Businesses are Drivers of Sustainable Wealth Creation

Program Activities: Entrepreneurial Economy

Subactivities
  • Canada Small Business Financing
  • Services to Business
  • BizPal
  • Small Business Internship (formerly Student Connections)
  • Small Business Growth and Prosperity

Program Activities: Global Reach and Agility in Targeted Canadian Industries

Subactivities
  • Industry-Specific Policy, Advice and Expertise
  • Industry Development and Analysis
  • Shipbuilding Capacity Development
  • Industrial and Regional Benefits Policy and Program Management
  • Marquee Tourism Events Program*

Program Activities: Community, Economic and Regional Development

Subactivities
  • Federal Economic Development Initiative for Northern Ontario (FedNor)
    • Community Futures Program
    • Northern Ontario Development Program
    • Eastern Ontario Development Program**
  • Linguistic Duality and Official Languages
  • Canada-Ontario Municipal Rural Infrastructure Program**
  • Ontario Municipal Rural Infrastructure Top-Up Program**
  • Computers for Schools
  • Community Access Program
  • Ontario Potable Water Program**
  • Brantford Greenwich-Mohawk Remediation Project**
  • Canada Strategic Infrastructure Program**
  • Building Canada Program**
  • Community Adjustment Fund in Northern Ontario*
  • Broadband Canada*

Program Activities: Security and Prosperity Partnership of North American — Canadian Secretariat

There are no sub-activities for this section.


* Designates Economic Action Plan Items Return to the reference

** Designates programs transferred to the Federal Economic Development Agency for Southern Ontario Return to the reference

Organizational Priorities

The achievements highlighted below correspond to commitments indicated in the 2010–11 RPP.

To assign an appropriate performance status, we have used the guide as outlined in "How to read this report" section of this document found on page 2.

Achievements and Commitments : Priority 1

* NUANS is an online search service that provides participating Canadian corporate law jurisdictions with information they need to reject or approve the name of a proposed corporate entity. In Canada, entities wishing to incorporate will seek to compare their proposed corporate name with existing corporate names and trademarks in order to reduce name confusion and to ensure uniqueness. Return to text

Priority 1:
Advancing the marketplace
Type:
Previously committed to
Strategic Outcome(s):
The Canadian Marketplace is Efficient and Competitive

Ensure marketplace policies help promote competitive markets and install consumer confidence
Status: Met All

  • In an effort to modernize key marketplace framework policies, consultations for the proposed regulations for the Canada Not-for-Profit Corporations Act were held in spring/summer 2010. These consultations were held to strengthen the Department's commitment to protect consumers by including consumers in public consultations.
  • Industry Canada continued to improve on the Newly Updated Automated Name Search (NUANS)* services, thereby improving business efficiency.
  • Amendments to the Weights and Measures Act and the Electricity and Gas Inspection Act (to improve measurement accuracy in the marketplace and strengthen consumer protection against loss due to inaccurate measurement) received Royal Assent on March 23, 2011.
  • Canada's anti-spam legislation (Bill C-28) received Royal Assent on December 15, 2010, to help protect the online marketplace. The Fairness at the Pumps Act was also passed to protect Canadian consumers from inaccurate measurement at gas pumps and other measurement devices.
  • The Competition Bureau continued to focus on the effective implementation of the recent amendments to the Competition Act.
  • The Department expanded tools such as the interactive Canadian Consumer Handbook, a joint federal/provincial/territorial initiative, to provide consumers with information that helps them make informed purchasing decisions and meet the challenges relevant to current economic conditions.
  • Industry Canada also continued to improve the protection of intellectual property (IP) rights while conducting several outreach activities.
Achievements and Commitments: Priority 2
Priority 2:
Fostering the knowledge-based economy
Type:
Previously committed to
Strategic Outcome(s):
Science and Technology, Knowledge, and Innovation are Effective Drivers of a Strong Canadian Economy

Foster business innovation
Status: Met All

  • Industry Canada created an investment climate that encourages the private sector to compete on the basis of its innovative products, services and technologies, and worked with the Natural Sciences and Engineering Research Council and the National Research Council's Industrial Research Assistance Program on programming to help make industry more research intensive and competitive.
  • Industry Canada, with the private sector, developed the Soldier Systems Technology Roadmap and promoted the adoption and adaptation of new technologies such as Information and Communication Technologies (ICT), biotechnology and clean energy technologies.

Invest in science and technology (S&T) to enhance the generation and commercialization of knowledge
Status: Met All

  • The Department worked with foreign governments to understand their systems, policies and programs in order to strengthen Canada's S&T agenda, led several outreach activities, and participated at multilateral fora (Organisation for Economic Co-operation and Development [OECD] and Asia-Pacific Economic Cooperation APEC) to represent Canada's science, technology and innovation (ST&I) interests and contribute to the development of research projects to further enhance Canada's policy frameworks.
  • The Department worked with federal granting councils, the Canada Foundation for Innovation and Genome Canada to maximize investments and funding for higher education research.
  • Industry Canada provided assistance to the Science, Technology and Innovation Council (STIC) and brought forward a number of proposals in support of the S&T Strategy: Mobilizing Science and Technology to Canada's Advantage—several of which were included in Budget 2011.
  • The Department worked with aerospace industry stakeholders to encourage and promote the development and adoption of new technologies, including ICT and clean energy technologies, for aerospace applications.
Achievements and Commitments: Priority 3
Priority 3:
Supporting business
Type:
Ongoing
Strategic Outcome(s):
Competitive Businesses are Drivers of Sustainable Wealth Creation

Foster internationally competitive businesses and industries
Status: Mostly Met

  • The Department continued to work with federal partners to advance trade negotiations at the World Trade Organization (WTO), supported proposed trade talks and initiatives such as the Canada–European Union Free Trade Agreement, and hosted trilateral meetings (Canada, United States and Japan) to resolve market access issues. The Department also sought clarification on Japanese standards and policies applicable to wood products.
  • Departmental officials collaborated with associations, governments and industry stakeholders to enhance the recognition of Canadian industrial capabilities and to identify opportunities and address risks affecting industry competitiveness and agility within the globalized marketplace. The Department also participated in a series of meetings with the Canadian aerospace industry to explore match-making opportunities and promote Canadian expertise.
  • In an effort to better meet the needs of the Canadian economy, Industry Canada shifted operational priorities and did not undertake an Automotive Action Plan. Industry Canada continued its work to develop key analytics and intelligence on the automotive industry, to engage actively with stakeholders on issues affecting Canada's place in an integrated North American market, and to maximize value to Canadians from agreements with General Motors and Chrysler.

Promote entrepreneurship, community development and sustainable development
Status: Met All

  • To support Canadian communities and their capacity to respond to economic opportunities and challenges, Federal Economic Development Initiative for Northern Ontario (FedNor), through the Community Futures Program, delivered the second year of a five point Community Futures Development Corporation (CFDC) Stimulus Action Plan. As a result, the Northern Ontario CFDCs were in a better position to respond to the needs of their clients and increase their lending activities.
  • Industry Canada worked with its federal/provincial/territorial counterparts, as well as with other partners, to improve services and information delivered by the Canada Business Network. This is an ongoing effort to assist Canadian small businesses with their business information requirements.
  • 80 to 85 percent of Canada Small Business Financing Program borrowers obtained some degree of incremental financial support.
  • Through the Broadband Canada: Connecting Rural Canadians program, 86 contribution agreements were signed to provide $112 million to projects that will bring broadband Internet access to approximately 210,000 households.
Achievements and Commitments: Priority 4
Priority 4:
Canada's Economic Action Plan
Type:
Ongoing/
Previously
Committed to
Strategic Outcome(s):
Science and Technology, Knowledge, and Innovation are Effective Drivers of a Strong Canadian Economy; Competitive Businesses are Drivers of Sustainable Wealth Creation

Status: Met All

  • The Department also continued its delivery of Canada's Economic Action Plan (EAP) initiatives, such as the Knowledge Infrastructure Program (KIP). By providing over $1.7 billion in federal funding to provinces, territories and institutions, the Department supported more than 500 renovation, repair and expansion projects to enhance the research innovation capacity at Canadian post-secondary institutions.
  • Under Canada's Economic Action Plan, FedNor delivered the second and final year of the Community Adjustment Fund in Northern Ontario by supporting activities that foster restructuring, economic development, science and technology initiatives.
Achievements and Commitments: Priority 4
Priority 5:
Departmental management
Type:
Ongoing/New
Strategic Outcome(s):
All strategic outcomes

People Management (Ongoing):
Status: Met All

  • Year two of the three-year People Management Strategy for Renewal and Results was implemented in 2010–11, focusing on key activities in the areas of employee engagement and renewal and leadership development. These were supported by work in the HR enabling infrastructure of HR Service and Integrity and Accountability mechanisms.
  • Employee development and retention was supported with orientation sessions, stay questionnaires for new recruits, exit questionnaires, a renewed employee recognition program, full-cycle implementation of the Employee Performance Management Framework and an initiative to support corporate memory transfer (iKnow), as well as supporting and assisting employees' training and development.

Financial Management (New):
Status: Met All

  • A number of measures were put in place in 2010–11 to improve the reliability and timeliness of forecasts, including the following:
    • Targets were developed for all executives, requiring them to stay within 5 percent of their September 2011 forecast and within 2 percent of their December 2011 forecast. The targets effectively provided an added incentive for executives to carefully assess their requirements and to plan accordingly.
    • Training was provided to the financial and administrative communities involved in the forecasting process.
    • Standard financial management tools and guidelines were developed and shared.
    • The financial situation was monitored monthly at the senior management table.
  • Industry Canada has continued to meet the requirements under the policy on internal controls. Departments are expected to be in a state of audit readiness as per the policy on internal controls and, to meet this objective, Industry Canada has mapped and tested all of its internal controls over financial reporting.

Internal Audit (New):
Status: Met All

  • The internal audit function at Industry Canada adhered to the approved risk-based plan for 2010–11 and achieved the intended coverage in order to provide assurance to senior management and the Departmental Audit Committee which informs decision making.

Procurement and Materiel Management (New):
Status: Mostly Met

  • Industry Canada launched the quality assurance and monitoring of procurement review activities throughout the Department to identify gaps and opportunities for improvement in procurement activities in order to strengthen procurement and materiel management.
  • Industry Canada continues its efforts to streamline the delegation of contracting authority throughout the Department with an objective of reducing the overall number of contracting delegations.

Business Continuity (New):
Status: Mostly Met

  • A departmental inventory of emergency management plans was created and the existing departmental Business Continuity Plan (BCP) governance was reviewed to ensure alignment with government-wide requirements for emergency management.
  • The Business Continuity Renewal Project Plan was developed and identified a three-phase approach to ensure the availability of critical departmental services and products in the event of a disaster. Only Phase I was completed on schedule. It included a Project Plan, Business Impact Analysis User Guide and an automated Business Impact Analysis Form along with training and awareness to support the project. Phase II involved developing a departmental Business Impact Analysis exercise, which was completed in June 2011. Phase III includes a departmental BCP exercise, as well as recovery strategies, and will be completed by October 2011.
  • Emergency Management Products were developed to support additional training and awareness for departmental employees in the event of an incident requiring a building evacuation, temporary or permanent building closure.

Risk Analysis

Operating Environment

During the past year, the economic recovery in Canada gained momentum. Many governments moved to complete stimulus projects and have since announced measures to curtail new spending. In Canada, the related challenges had mainly led to a significant loss of wealth for Canadian consumers and Canadian businesses. Through many initiatives, whether through existing departmental programs or through Canada's Economic Action Plan, Industry Canada continued to monitor the performance of the economy and develop the capacity of priority sectors and industries. The Department also concluded its participation in the most recent strategic review exercise; aligned resources to increase R&D and innovation capacity in targeted sectors; and supported skills development to ensure that businesses have the tools they need to grow and prosper over the long term.

As the recovery gained strength, higher demand led to increased commodity and energy prices, which raised concerns about prices for basic necessities such as food and gasoline and about the impact of these price increases on consumers and businesses. These factors, as well as the following key areas, formed Industry Canada's operating context for 2010–11 and played an important role in the Department's delivery of its plans and priorities.

Canada's Economic Action Plan

The government successfully implemented year two of Canada's Economic Action Plan (EAP), with Industry Canada managing over eight EAP initiatives. These initiatives provided short-term stimulus and supported longer-term innovation, which will position the Canadian economy to excel in the future. In addition, several EAP initiatives in the Department's portfolio complemented other departmental priorities, such as the implementation of the Science and Technology Strategy. Key accomplishments included the signing of 86 contribution agreements through the Broadband Canada: Connecting Rural Canadians program to provide $112 million to projects that will bring broadband Internet access to approximately 210,000 underserved and unserved Canadian households and improve connectivity for citizens and businesses; delivering support through the Marquee Tourism Events Program (MTEP) to 47 festivals and events in communities across Canada; and delivering funding to provinces, territories and institutions through the Knowledge Infrastructure Program (KIP) to support Canadian S&T projects.

In the fall of 2010, the deadline for the KIP was extended. Industry Canada will continue to report on this initiative as well as Broadband Canada, which continue into the next fiscal year. The timely, targeted nature of the EAP programs required large expenditures under tight timelines, something that Industry Canada managed while mitigating risks through effective stewardship measures such as robust management and financial control frameworks; monitoring, review and oversight of initiatives through ongoing and ad hoc governance bodies; and third-party due diligence reviews. Risks related to the KIP and Broadband Canada will continue to be monitored through Industry Canada's Corporate Risk Profile, and additional reporting will occur as program spending winds down.

Competitive Marketplace

Over the course of the year, Industry Canada advanced a number of actions to ensure a fair and competitive Canadian marketplace. The Department played a role in advancing competition within the telecommunications sector by removing foreign ownership restrictions on Canadian satellite companies to provide Canadian firms with access to funds, knowledge and expertise needed to compete. Industry Canada has launched consultations on policy and technical frameworks to auction spectrum in the 700 and 2500 MHz bands. The Department will use those consultations to design a spectrum auction that ensures effective and efficient use of the radio frequency spectrum. The Department also worked with Canadian Heritage to introduce proposed legislative amendments to modernize the Copyright Act.

Innovation

In 2010–11, Industry Canada continued to support the competitiveness of specific industries hard hit by the recession through investments in the innovative capacity of firms in the automotive, shipbuilding, aerospace and defence industries. The Department also helped to launch the Review of Federal Support to Research and Development (R&D), an independent panel of experts assessing federal support to business R&D. The results of the R&D review will be used to increase the efficiency and impact of federal expenditures on science and technology (S&T) and innovation policies.

Engagement with Partners and Stakeholders

To mitigate operating risks, Industry Canada remained committed to building strategic partnerships with other government departments, other national governments, international organizations and industry stakeholders. These relationships helped Industry Canada develop sound policies and programs.

Several Industry Canada initiatives developed over the past year included consultations with stakeholders, in particular for the development of the Digital Economy Strategy (DES) and for the R&D Review Panel. The DES consultations also included a federal/provincial/territorial ministerial meeting on the digital economy in January 2011. The Department continued to work with federal partners to advance trade negotiations at the World Trade Organization and in support of proposed initiatives such as the Canada–EU Trade Agreement. A recent key accomplishment was the completion of a number of collaborative studies through the Research Fund on North American Borders, Security and Prosperity that were presented to Canadian and U.S. stakeholders.

Consumer Interests

The challenges posed by the economic conditions of 2010–11 resulted in Industry Canada facing pressures to shift its activities towards a greater focus on the consumer basics of buying and saving. The Department published an online video to provide consumers with basic buying tips, focusing primarily on elements to consider before and after a purchase, and to encourage consumers to contact their governments for additional information. The Department, through the Competition Bureau, also identified flexible and cost-effective ways to increase compliance with consumer protection laws across the country, helped improve the consumer voice in policy-making, and continued to focus on protecting consumers from fraud, particularly through the Competition Bureau's leadership in the Fraud Prevention Forum and its participation in Fraud Prevention Month.

Risk Management

As part of its continued efforts to advance Integrated Risk Management, Industry Canada identified the corporate risks that had the potential to impact the Department's ability to achieve its mandate and strategic outcomes in its its 2010–11 Corporate Risk Profile (CRP). Also, in 2010–11, Industry Canada improved its corporate risk profiling by focusing attention on program risks as part of a comprehensive risk management approach. The CRP process included the development, implementation and ongoing monitoring of mitigation strategies and action plans to ensure Industry Canada's risks were effectively managed. In response to the 15th Public Accounts Committee recommendations, Industry Canada has broadened its presentation of risks in the DPR to better situate the Department's work and present a balanced and transparent performance story.

The Department also continued its rigorous management of risks related to the implementation of Industry Canada's Economic Action Plan (EAP) initiatives. Industry Canada was recognized by the Office of the Auditor General for its ongoing monitoring, mitigation and reporting of risks associated with its EAP initiatives.

The 2010–11 CRP identified the following five corporate risk categories for the Department: economic action plan program delivery, spectrum and telecommunication frameworks and regulations, reputational and stakeholder expectations, organizational adaptability, and innovation. Under each of these categories, a number of priority departmental risks were identified. Details on these risks and their associated mitigation strategies can be found in Section 2 of this report, under the appropriate program activity. A Corporate Risk Profile table is also included in Section 4 to provide better linkages to identified risk categories.

Industry Canada continues to update its Corporate Risk Profile as well as identify, monitor and mitigate corporate risks that may affect the Department's ability to achieve its expected results and deliver its mandate.

Summary of Performance

Industry Canada's Financial and Human Resources

The following two tables present Industry Canada's total financial and human resources for 2010–11, including resources associated with Canada's Economic Action Plan.

2010–11 Financial Resources ($ millions)*

* Financial Resources represent the sum of the total line for program activities and Internal Services. Return to text

Planned Spending Total Authorities Actual Spending
2,448.6 2,534.3 2,055.0
2010–11 Human Resources (full-time equivalents)*

* Overall, the Department's full-time equivalents (FTEs) decreased by 65, compared with the Actual Human Resources in the 2009–10 DPR, which reported 5,682 FTEs for the Department. The variance between this year's Planned and Actual FTE numbers is the result of improvements in the methodology used. Detailed information and FTE variance explanations are provided in Section 2 at the program activity level when differences are 10 percent or greater. Return to text

Planned Actual Difference
5,279 5,617 338

Summary of Performance by Strategic Outcome

Strategic Outcome 1: The Canadian Marketplace is Efficient and Competitive

* The indicator is measured by the OECD every five years, with the next update scheduled for 2013. For the indicator, a rank closer to first indicates higher barriers to competition. The shift from 11th rank in 2003 to 5th in 2008 indicates that Canada moved from having the 11th-highest barriers to competition among OECD countries to 5th-highest barriers, resulting in a decline in performance. Return to text

** The raw score is based on the unweighted average of the four barriers to competition. The raw score is positioned on a scale from 0–6, where 6 represents higher barriers to competition. Return to text

*** The 4th area of barriers to competition is Anti-Trust Exemptions. Return to text

Performance Indicators Targets 2010–11 Performance
Barriers to competition (Organisation for Economic Co-operation and Development OECD assessment of accessibility to Canadian market) Maintain or improve 6th place ranking*

Performance Status:
Mostly Met

Based on 2008 measure of the OECD Product Market Regulation (PMR) indicators, Canada was ranked as the 5th most inaccessible market among OECD countries. In the 2003 PMR report, Canada ranked 11th1. Canada's fall in ranking is primarily attributed to increased barriers to entry in services. The trend in this result is declining. (Raw score** in 2003: 2.00; and in 2008: 2.09. The decline is in 3 out of 4 areas of barriers to competition: legal barriers, barrier to entry in network sectors and barriers to entry in services.)***

Number of days taken to register a new company 3 days

Performance Status:
Somewhat Met

The process of registering a new company in Canada takes 5 days2. The number of days taken increased from 3 (2004–08) to 5 (2009–10) due to the combining of two applications process into a new integrated system and remains unchanged in 2010–11. Though registration days have increased, the process of registration has been streamlined to one simple registration process. Additionally, with a pre-reserved company name, registration can be completed within a day3. There is no change between this year's result and last year's.

Strategic Outcome #1 Program Acivity spending

* The Canadian Intellectual Property Office (CIPO) accounts for $153.8 million of the Total Authorities figure. CIPO is an organization within Industry Canada that is funded entirely by the revenue it generates. Total Authorities in this table include the surplus that CIPO has accumulated since its creation in 1994 as well as deferred revenues. Return to text

** The variance between Planned and Actual Spending is driven by several factors such as the following: net income from operations generated by CIPO was higher than expected; major capital projects were deferred to future years; and the actual level of investment in maintaining CIPO's existing IT infrastructure has been less than forecasted. In addition, an amount of $2 million included in Planned Spending for the Weights and Measures Act was not spent because Bill C-14 received Royal Assent only on March 23, 2011. Return to text

*** This spending mostly occurred in the Program Activity: Marketplace Frameworks and Regulations for Spectrum, Telecommunications and the Online Economy. There was also a misalignment in 2009–10, which resulted in Actual Spending being overstated in regards to Broadband and Regional Spectrum. Return to text

^ The Office of Consumer Affairs (OCA) Planned Spending in 2010–11 included a temporary allocation of $1.4 million for the implementation of Canada's anti-spam legislation. In the 2010–11 Supplementary Estimates, the OCA only received $250,000 for this initiative, and $200,000 per year going forward; the remainder was allocated to the following program activities: Marketplace Frameworks and Regulations for Spectrum, Telecommunications and the Online Economy; and Competition Law and Advocacy. Return to text

Program Activity 2009–10
Actual
Spending
($ millions)
2010–11 ($ millions) Alignment to Government of Canada Outcomes
Main
Estimates
Planned
Spending
Total
Authorities
Actual
Spending
Marketplace Frameworks and Regulations 43.2 64.1 66.1 210.0* 40.3** Economic Affairs: A Fair and Secure Marketplace
Marketplace Frameworks and Regulations for Spectrum, Telecommunications and the Online Economy 110.4*** 87.1 87.2 95.2 91.0
Consumer Affairs Program 5.1 4.6 6.0^ 5.2 5.0
Competition Law Enforcement and Advocacy 47.7 45.4 46.7 47.3 45.6
Total 206.5*** 201.3 206.2 357.7* 182.0*  
Strategic Outcome 2: Science and Technology, Knowledge, and Innovation are Effective Drivers of a Strong Canadian Economy

* Germany and Spain, the previous holders of 1st and 2nd place (respectively) in the index have not released official data as of June 2011. Preliminary data suggest that Spain's Industry R&D expenditure will fall by greater than 1 percent. This will cause Canada to rise to its 2nd place ranking 8. Return to text

** This measure differs from previous years as it encompasses total employment of R&D personnel per 1,000. This measure is more representative of its respective performance indicator. Previous years measured the proportion of total researchers per 1,000. Return to text

Performance Indicators Targets 2010–11 Performance
Innovation Index (measure of the adoption of new technology, and the interaction between the business and science sectors)

Maintain or improve 12th place ranking

Performance Status:
Met All

Canada maintained its ranking at 11th place in innovation out of 142 countries4. The World Economic Forum's Innovation Index includes capacity for innovation, quality of scientific research institutions, company spending on R&D, university–industry collaboration in R&D, government procurement of advanced technology products, availability of scientists and engineers, and utility patents. This result is equal to the 2010–11 result, which covers the 2009–10 time period, where Canada ranked 11th out of 139 countries.
International ranking of Canada in university–industry collaboration in R&D

Maintain or improve 2nd place ranking5

Performance Status:
Met All

Canada achieved a 2nd place ranking* out of 10 comparator countries in university–industry collaboration in R&D6. This result is an improvement over 2007 results when Canada ranked 3rd. Canada ranked 2nd from 2003 to 2006.
Number of people working in Research and Development (R&D) of total employment numbers 8 per 1,000

Performance Status:
Exceeded

Total R&D employment for 2007 was 13.4 per 1,000. This is up from 13.3 in 2004–05**7. Data have not been released for 2010–11; therefore a trend analysis is not currently available.
Strategic Outcome #1 Program Acivity spending

* The variance between Total Authorities and Actual Spending is due to a misalignment of planned spending and expenditures, where approximately $5 million was allocated to Internal Services in the 2010–11 Planned Spending rather than this program activity. Mid-year review ensured that expenditures were properly coded. The issue has been resolved for the 2011–12 fiscal year. Return to text

** Additional funding has been received in-year through the 2010–11 Supplementary Estimates to maintain Shirley's Bay Campus infrastructure and operational requirements. Return to text

*** Total Authorities include additional funding received during the year through the 2010–11 Supplementary Estimates of $90 million in repayable contributions from Technology Partnerships Canada (TPC) and $22.5 million for the Bombardier CSeries Program. The variance between Authorities and Actual Spending is the result of delays in large-scale R&D projects. Approval has been received to defer funding to future years to better match the cash requirements of recipients in two programs: TPC/Strategic Aerospace and Defence Initiative (SADI) ($60.0 million) and Automotive Innovation Fund ($53.2 million). Return to text

Program Activity 2009–10
Actual
Spending
($ millions)
2010–11 ($ millions) Alignment to Government of Canada Outcomes
Main
Estimates
Planned
Spending
Total
Authorities
Actual
Spending
Canada's Research and Innovation Capacity 263.1 307.3 248.6 251.5* 255.9*

Economic Affairs: An Innovative and Knowledge-
based Economy

Communications Research Centre Canada 45.9 39.1 39.1 43.4** 43.9**
Commercialization and Research and Development Capacity in Targeted Canadian Industries 277.7 294.5 295.0 399.6*** 247.0***
Total 586.7 640.8 582.7 694.5 546.8  
Strategic Outcome 3: Competitive Businesses are Drivers of Sustainable Wealth Creation

* The target, results and performance summary relate only to small businesses, defined as those with fewer than 50 employees, as opposed to SMEs, defined as those with fewer than 500 employees. BC Stats provides a breakdown of small business statistics for each province/territory and Canada-wide statistics. The data shown here are the Canada-wide statistics. Return to text

** The 2010–11 calculation for rural-urban SME ratio has changed from previous years. This is a result of a greater inclusion of data from SMEs across Canada. The new measurement is more representative of its respective performance indicator. A smaller ratio between rural and urban SMEs is more beneficial to sustainable community growth in rural areas and prosperity for all Canadians. Return to text

Performance Indicators Targets 2010–11 Performance
Percentage of gross domestic product (GDP) contributed by small and medium-sized businesses Maintain or improve current (based on 2009 GDP levels) percentage (26%)

Performance Status:
Met All

Canadian small business accounted for 28% of GDP for 2009–10.* The trend is declining, from 2008–09 when Canadian small businesses accounted for 29%9.

Ratio of small and medium-sized
businesses in rural vs. urban areas (defined by census subdivisions)

1:3

Performance Status:
Exceeded

The ratio of rural to urban small and medium-sized enterprises (SMEs) in Canada is 1:2.1. Rural SMEs account for 32% of total SME business activity, compared with the 68% contribution by urban SMEs**10. Calculated with the new methodology, the result shows no change from the previous year.

Strategic Outcome #3 Program Acivity spending

* The variance is due to a reprofile of $7 million in Structured Financing Facility Program from 2010–11 to 2013–14 to ensure program integrity until federal procurement of ships begins, which will lead to new builds in 2013–14. Return to text

** A misalignment of funds has resulted in Actual Spending for this program activity being coded to Internal Services ($1.03 million). The Security and Prosperity Partnership of North America ended in 2010–11, leading to lower Actual Spending as the program ramped down. Return to text

Program Activity 2009–10
Actual
Spending
($ millions)
2010–11 ($ millions) Alignment to Government of Canada Outcomes
Main
Estimates
Planned
Spending
Total
Authorities
Actual
Spending
Entrepreneurial Economy 135.2 104.9 104.3 109.0 106.1

Economic Affairs: Strong Economic Growth

Global Reach and Agility in Targeted Canadian Industries 59.6 56.4 56.0* 61.5 51.3*
Community, Economic and Regional Development 320.7 51.5 82.5 97.9 96.9
Security and Prosperity Partnership of North America — Canadian Secretariat 1.1 2.2 2.2 1.8 0.0** International Affairs: A Strong and Mutually Beneficial North American Partnership
Total 516.6 214.9 245.0 270.1 254.4  

Program Activities Supporting All Strategic Outcomes

Strategic Outcome #3 Program Acivity spending

* The Department receives a part of its core operating budget in Supplementary Estimates through a funding model by which Industry Canada accesses repayable contributions collected in the previous year. To ensure the timely progress of program activities, Internal Services advances the funding to all other programs and replenishes itself when Supplementary Estimates receive Royal Assent. Return to text

Program Activity 2009–10
Actual
Spending
($ millions)
2010–11 ($ millions)
Main
Estimates
Planned
Spending
Total
Authorities*
Actual
Spending
Internal Services 177.8 92.6 92.6 163.0 161.6
Total 177.8 92.6 92.6 163.0 161.6
Strategic Outcome #3 Program Acivity spending

* A result of the Government's decision to extend the program deadline for key infrastructure programs to October 31, 2011, funding totalling $250.1 million was reprofiled to 2011–12. Return to text

Canada's Economic Action Plan  2009–10
Actual Spending ($ millions)
2010–11 ($ millions)
Main
Estimates
Planned
Spending
Total
Authorities
Actual
Spending
EAP 1,080.0 1,263.9 1,322.1 1,049.1 910.2
Total 1,080.0 1,263.9 1,322.1 1,049.1* 910.2

1 – OECD, "Indicators of Product Market Regulation" (Paris: OECD, 2008). Return to text

2 – The World Bank, "Ease of Doing Business Index" (Washington, D.C.: The Bank, 2011). (http://www.doingbusiness.org/data/exploreeconomies/canada#Startin) Return to text

3 – The World Bank, "Starting a Business in Canada" (Washington, D.C.: The Bank, 2011). (http://www.doingbusiness.org/data/exploreeconomies/canada/starting-a-business) Return to text

4 – World Economic Forum, The Global Competitiveness Report, 2010-2011 (Geneva: World Economic Forum, 2010). (http://www3.weforum.org/docs/WEF_GlobalCompetitivenessReport_2010-11.pdf) Return to text

5 – The Conference Board of Canada, Exploring Canada's Innovation Character: Benchmarking Against Global Best (Ottawa: CBoC, 2004), pp. 13-14. (http://www.conferenceboard.ca/e-Library/abstract.aspx?did=813) Return to text

6 – OECD, Main Science and Technology Indicators (MSTI): 2010/2 Edition (Paris: OECD, 2010), p. 25 (http://www.oecd.org/document/33/0,3343,en_2649_34451_1901082_1_1_1_1,00.html) Return to text

7 – OECD, Main Science and Technology Indicators (MSTI): 2010/2 Edition (Paris: OECD, 2010), p. 25 (http://www.oecd.org/document/33/0,3343,en_2649_34451_1901082_1_1_1_1,00.html) Return to text

8 – Instituto Nacional de Estadistìca, Year 2010 Press Release (http://www.ine.es/en/prensa/np654_en.pdf) Return to text

9 – BCStats, Small Business Profile 2010 (Victoria: BC Stats, June 2010), p. 16. Return to text

10 – Statistics Canada, Canadian Business Patterns (Ottawa: Statistics Canada, December 2010). Available on CD-ROM at http://www.statcan.gc.ca/daily-quotidien/110802/dq110802a-eng.htm Return to text

Expenditure Profile

Canada's Economic Action Plan

Industry Canada continued its contribution to Canada's Economic Action Plan in fiscal year 2010–11. A significant portion of the Department's EAP resources was used to support S&T, knowledge and innovation, which helped position the Canadian economy to continue gaining momentum and strength in the current global economic context. This was accomplished through initiatives such as the Knowledge Infrastructure Program, the Canada Foundation for Innovation, the Marquee Tourism Events Program and other EAP initiatives under Industry Canada's umbrella. The following table highlights EAP initiatives, including their Total Authorities and Actual Spending, for the full year 2010–11.

Financial Resources in 2010–11 ($ millions)

Financial Resources in 2010–11 ($ millions)
EAP Initiative Total Authorities Total Actual

* $94.3 million was deferred from 2010–11 to future years to accommodate the high number of applications received, delays in the assessment and selection process, multi-year build seasons for remote locations, and additional costs of satellite bandwidth for future years. In addition, $7 million was accessed by the Atlantic Canada Opportunities Agency in 2010–11 to fund broadband initiatives through their Atlantic Innovation Fund. Return to the reference

** While the program received funding from Canada's Economic Action Plan, Canada Business Network is an ongoing program. Please refer to the Program Activity of Entrepreneurial Economy in Section 2 under Strategic Outcome 3: Competitive Businesses are Drivers of Sustainable Wealth Creation. Return to the reference

Knowledge Infrastructure Program 751.6 745.0
Canada Foundation for Innovation 50.0 50.0
Institute for Quantum Computing 17.0 17.0
Modernizing Federal Laboratories 2.2 2.2
Broadband Canada: Connecting Rural Canadians 158.4 30.0*
Marquee Tourism Events Program 41.7 41.0
Canada Business Network** 5.9 5.3
Community Adjustment Fund in Northern Ontario 21.2 18.7
Ivey Centre for Health Innovation and Leadership 1.0 1.0
TOTAL 1,049.1 910.2

Departmental Spending Trend

Industry Canada's total actual spending, including EAP, for 2010–11 was $2.05 billion, which is less than the 2009–10 total actual spending of $2.56 billion. The Department's Operating Expenditures were $416.9 million in fiscal year 2010–11, compared with $459.2 million in 2009–10.

Departmental Spending Trend

Departmental Spending Trend (the long description is located below the image)
Long description
Departmental Spending Trend
($ millions) 2008–2009 2009–2010 2010–2011
Main Estimates 973.30 1188.80 2416.50
Planned Spending 1045.80 1214.10 2448.60
Total Authorities from Canada's Economic Action Plan - 1579.57 1049.10
Actual Spending from Canada's Economic Action Plan - 1288.90 910.20
Total Authorities 1502.90 3223.60 2534.30
Actual Total Spending 1228.60 2567.60 2055.00

Estimates by Vote

For information on organizational votes and/or statutory expenditures, please see the 2010–11 Public Accounts of Canada 2010 (Volume II) publication. An electronic version of the Public Accounts is available on the Public Works and Government Services Canada website.


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Section 2: Analysis of Program Activities by Strategic Outcome

Strategic Outcome 1: The Canadian Marketplace is Efficient and Competitive

Industry Canada strives to achieve an efficient and competitive marketplace by developing and implementing policies necessary for the functioning of a market. These include laws and regulations governing intellectual property, bankruptcy and insolvency, competition and restraint of trade, corporations and corporate governance, foreign direct investment, internal trade, weights and measures, consumer affairs, and telecommunications. These policies help the Department in its role of promoting innovation, competition and productivity, and instill business, investor and consumer confidence. This was accomplished through the following program activities:

  • Marketplace Frameworks and Regulations
  • Marketplace Frameworks and Regulations for Spectrum, Telecommunications and the Online Economy
  • Consumer Affairs Program
  • Competition Law Enforcement and Advocacy

Industry Canada Success Story

In September 2010, the Competition Bureau published its Leniency Program Bulletin outlining factors it considers when making sentencing recommendations to the Public Prosecution Service of Canada (PPSC) and the process for seeking a recommendation for a lenient sentence in a criminal cartel case. In addition, in May 2010, the Commissioner of Competition and the Director of Public Prosecutions entered into a MOU with respect to the investigation and prosecution of offences under the Competition Act, the Consumer Packaging and Labelling Act, the Textile Labelling Act, and the Precious Metals Marking Act. The MOU, as well as the Leniency and Immunity Program, ensure transparency and predictability for the public and are among the Bureau's best tools to combat cartels and effectively manage its programs.

Distribution of spending by program activity in the area of The Canadian Marketplace is Efficient and Competitive

Distribution of spending by program activity in the area of The Canadian Marketplace is Efficient and Competitive (the long description is located below the image)
Description of Figure 1
Distribution of spending by program activity in the area of The Canadian Marketplace is Efficient and Competitive
Marketplace Frameworks and Regulations for Spectrum, Telecommunications and the Online Economy 50%
Competition Law Enforcement and Advocacy 25%

Marketplace Frameworks and Regulations

22%
Consumer Affairs Program 3%

Financial Resources*

Financial Resources (the long description is located below the image)

* The variance between Planned and Actual Spending and Total Authorities for financial resources is mainly due to CIPO. Total Authorities include the surplus that CIPO has accumulated over the years since its creation in 1994 as well as deferred revenues. The intent is never to spend the surplus in a single year but to draw on it occasionally to fund capital investments when expenses exceed revenues. The decrease in financial resources between 2008–09 and 2009–10 is largely due to a change in the requirements for reporting on the Internal Services activity in the DPR. In 2008–09, the Internal Services resources were allocated to each of the strategic outcomes. Starting in 2009–10, Internal services was reported as a separate activity. Return to the reference

Long description
Financial Resources
($ millions) 2008–2009 2009–2010 2010–2011
Total Authorities 411.2 379.5 357.7
Planned 226.9 181.3 206.2
Actual 242.8 206.5 182.0


Human Resources**

Human Resources (the long description is located below the image)

** The decrease in human resources between 2008–09 and 2009–10 is largely due to a change in the requirements for reporting on the Internal Services activity in the DPR. In 2008–09, the Internal Services resources were allocated to each of the strategic outcomes. Starting in 2009–10, Internal Services was reported as a separate activity. Return to the reference

Long description
Human Resources
($ millions) 2008–2009 2009–2010 2010–2011
Planned 3291 3017 2941
Actual 3104 3006 2863

Meeting Our Commitments
In an effort to ensure the Canadian marketplace is efficient and competitive, Industry Canada provided consumers with the opportunity to contribute to the development of government policies and to become effective marketplace participants. For example, following round table consultations across Canada and with foreign agencies, the Department has undertaken revisions to the Merger Enforcement Guidelines. The Department also continued to administer several acts, including the Competition Act, Bankruptcy and Insolvency Act and the Investment Canada Act.

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Program Activity: Marketplace Frameworks and Regulations

Program Activity Description
This program delivers effective 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), while minimizing the regulatory compliance burden on small businesses.

2010–11 Financial Resources ($ millions)

* CIPO accounts for $153.8 million of the total authority figure. CIPO is an organization within the Department that is funded entirely from the revenues it generates. Total Authorities include the surplus that CIPO has accumulated since its creation in 1994 as well as deferred revenues. The intent is never to spend the surplus in a single year but to draw on it occasionally to fund capital investments or when expenses exceed revenues. Return to text

** The variance between Planned and Actual Spending is driven by several factors such as the following: net income from operations generated by CIPO was higher than expected; major capital projects were deferred to future years; and the actual level of investment in maintaining CIPO's existing IT infrastructure has been less than forecasted. In addition, $2 million included in Planned Spending for the Weights and Measures Act was not spent because Bill C-14 received Royal Assent only on March 23, 2011. Return to text

Planned Spending Total Authorities Actual Spending
66.1 210.0* 40.3**
2010–11 Human Resources (full-time equivalents)
Planned Actual Difference
1,780 1,729 51
Expected Results

* To address the performance status of 60%, CIPO is currently targeting a complete review of service standards, including recommendations for new measures. Return to the reference

Expected
Results
Performance
Indicators
Targets Performance
Status
Marketplace fairness, integrity, efficiency and competitiveness are protected in the areas of insolvency, foreign investment, weights and measures, federal incorporation, and intellectual property Percentage of cases for which regulatory timelines and/or service standards are met 80%

Performance Status:
Exceeded

Regulatory timelines and/or service standards are met in 87.6% of cases. This figure is represented as a percentage based on the following compliance rate:

  • 85% for Measurement Canada
  • 94.9% for Office of the Superintendent of Bankruptcy
  • 98.2% for Corporations Canada
  • 100% for Investment Review
  • 60% for CIPO*

This is an improvement from the 2009–10 result of 86.8%

Performance Summary and Analysis of Program Activity

In keeping our commitments to ensure integrity and accountability in all areas of insolvency, Industry Canada, through the Office of the Superintendent of Bankruptcy (OSB), successfully rolled out enhancements to the accountability of all parties involved in Companies' Creditors Arrangement Act (CCAA) filings in the regions. Development of our case management and integrated name search systems was completed to allow both Canadian and international stakeholders to efficiently search key information on CCAA filings. This allowed CCAA monitors and foreign representatives to interact with the OSB more efficiently when filing regulatory forms used to populate the CCAA Registry. Stakeholders interested in researching insolvency files will save time and money as the OSB will now act as an integral source of data for CCAA filings, as it already does for Bankruptcy and Insolvency Act (BIA) filings.

Following changes made to the Investment Canada Act and in an effort to improve the transparency and accountability of the foreign investment review framework in Canada, Industry Canada worked towards producing its first Investment Canada Act Annual Report in 2010–11. The final report will be completed in 2011–12.

Consultations for the proposed regulations of the Canada Not-for-Profit Corporations Act were held in spring/summer 2010, with the objective of establishing a modern governance framework for not-for-profit corporations. These consultations were approved by Treasury Board for pre-publication in Canada Gazette, Part I on February 26, 2011.

Industry Canada addressed stakeholder requests to make the NUANS the single comprehensive source of corporate names used in all Canadian federal, provincial and territorial jurisdictions. In response to the Department's efforts, the Northwest Territories in December 2011 announced their intention to use NUANS and the province of Quebec committed to submitting their corporate name data to NUANS by the end of March 2012.

Industry Canada, through the Canadian Intellectual Property Office (CIPO), promotes awareness of the benefits of intellectual property (IP) to increase its use for Canada's economic advantage. In 2010–11, CIPO's outreach strategy focused on promoting the economic value of IP among small and medium-sized enterprises (SMEs); promoting IP awareness among post-secondary students; building partnerships among key players in a position to disseminate IP awareness, knowledge and effective use; engaging intermediaries serving exporting small and medium-sized enterprises by providing them with the necessary training; and building the necessary capacity within the CIPO to deliver the outreach strategy.

Highlights of Challenges and Risk Areas

To mitigate the potential effects of the recession on CIPO's financial position and on its ability to finance key plans/projects, CIPO increased efforts to contain costs and reduce spending.

Lessons Learned

A significant indicator for the OSB is that insolvency "Registration will be complete within two business days of receiving completed documents." OSB invested in the development of an "E-Filing" system to allow for electronic filing. This addressed the potential risk of not meeting OSB's two-business-days service standard because it would become difficult and costly for the OSB to keep manually registering insolvencies. Since June 2007, it has been mandatory that all trustees submit new summary and ordinary administration bankruptcies and proposals made under Division I and Division II of Part III of the BIA electronically with the OSB using the E-Filing system.

This foresight enabled the OSB to maintain its service standards when, following the 2008 economic recession, filings started to increase. The increase reached a peak of 45 percent in 2009–10 compared with pre-recession levels and was still 30 percent higher at the end of 2010–11. Although there was an increase in workload associated with the registration of the high number of files, it was greatly lessened due to the E-Filing system.

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Program Activity: Marketplace Frameworks and Regulations for Spectrum, Telecommunications and the Online Economy

Program Activity 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 forums.

2010–11 Financial Resources ($ millions)
Planned Spending Total Authorities Actual Spending
87.2 95.2 91.0
2010–11 Human Resources (full-time equivalents)
Planned Actual Difference
686 693 7
Expected Results
Expected
Results
Performance
Indicators
Targets Performance
Status
Canada's radiocommunications and telecommunications infrastructure and the online economy are governed by a modern, efficient and effective policy and regulatory framework 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

Performance Status:
Exceeded

95% of identified initiatives were completed. Information from year-to-year is not correlated, as planned initiatives are not weighted equally.
Performance Summary and Analysis of Program Activity

Industry Canada has made considerable progress in the areas of radiocommunications and telecommunications infrastructure and the online economy. The Department continued to undertake several actions to develop policies, regulations, standards and treaties to support effective spectrum management and the provision of new wireless services. Through its participation at the International Telecommunication Union (ITU), Industry Canada was able to advance Canada's position on issues related to enhancement of the international spectrum regulatory framework, assign radio spectrum to new uses and align them globally to protect investments. By doing so, the Department encouraged innovation and mitigated interference among radio users of ITU member countries. As well, in 2010–11, three cross-border frequency arrangements (treaties) for commercial and public safety services in the 700 MHz and 800 MHz bands for use by Canadians were developed in collaboration with the United States. Consultations on opening spectrum in the 28 MHz band in support of new commercial mobile systems were also held.

To enable broadcasters to bring high-definition television (HDTV) to the viewing public across the country, Industry Canada managed the technical aspects of the implementation of the Canadian Radio-television and Telecommunications Commission (CRTC) framework for the conversion of the over-the-air TV signal to a digital TV signal. The technical standards developed by the Department were accepted by industry and published in the Canada Gazette. All applications received were processed in a timely manner, including Federal Communications Commission (FCC) coordination. The Department also held major public consultations for mobile broadband in both the 700 MHz and 2500 MHz bands. The 700 MHz band and the 2500 MHz band are suitable for advanced mobile and broadband networks/services and enable the mobile Internet economy in Canada. Their auctioning will help support new mobile technologies and services in the Canadian marketplace and create opportunities for Canadian wireless carriers and manufacturers.

Canada's anti-spam legislation (Bill C-28) — previously referred to as the Electronic Commerce Protection Act— received Royal Assent on December 15, 2010. However, pre-publication of C-28 regulations in the Canada Gazette was delayed by the dissolution of Parliament. Personal Information Protection and Electronic Documents Act (PIPEDA) Amendments (C-29) were at second reading at the dissolution of Parliament for the 41st General Election. Both initiatives are aimed at providing a legislative framework to promote trust and confidence in the online marketplace.

To boost Canada's productivity and performance in the ICT sector, the Government of Canada launched an online public consultation to gather input from stakeholders on the objectives of a Digital Economy Strategy (DES) for Canada. The DES, which is currently being developed, aims to ensure that Canada is well positioned to take advantage of the innovative power of digital technologies.

Highlights of Challenges and Risk Areas

To ensure Industry Canada's ability to provide basic services or implement new services to Canadians is not hindered by aging Spectrum IT systems, the Department implemented measures to ensure the systems are replaced within the next five years. Through planned upgrades, the spectrum management system will provide Canadians with a modern, efficient and effective policy and regulatory framework.

To ensure consultations for the development of a Digital Economy Strategy gathered the needed advice and feedback, and garnered support from stakeholders, the Department proactively engaged key government departments to align existing programming to support the digital economy strategy and encouraged them to direct their clients to the DES website. A comprehensive plan for targeted meetings with key stakeholders was also developed to ensure consumer interests are represented in the development of government policies.

Lessons Learned

As a result of the evaluation conducted in 2009, a Performance Measurement Strategy (PM Strategy) was developed in 2010 with the objective of enhancing reporting and evaluation of the Industry Canada–ITU program. The PM Strategy implementation is scheduled for July 2012 and will include indicators to better track and monitor the Department's annual contribution to the ITU.

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Program Activity: Consumer Affairs Program

Program Activity 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 that 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. This program is delivered in collaboration with provincial and territorial governments, as well as not-for-profit consumer organizations.

2010–11 Financial Resources ($ millions)

* The Office of Consumer Affairs (OCA) Planned Spending in 2010–11 included a temporary allocation of $1.4 million for the implementation of Canada's Anti-Spam Legislation. In the 2010–11 Supplementary Estimates, the OCA only received $250,000 for this initiative, and $200,000 per year going forward. The remainder was allocated to the following program activities: Marketplace Frameworks and Regulations for Spectrum, Telecommunications and the Online Economy; and Competition Law and Advocacy. Return to the reference

Planned Spending Total Authorities Actual Spending
6.0 5.2 5.0*
2010–11 Human Resources (full-time equivalents)
Planned Actual Difference
23 23 0
Expected Results
Expected
Results
Performance
Indicators
Targets Performance
Status
Consumer interests are represented in the marketplace and in the development of government policies.

Number of new outreach initiatives to assist consumers in accessing information and tools that will help them make informed purchasing
decisions

1

Performance Status:
Exceeded

2 major outreach initiatives to assist and inform consumers:

  1. The new interactive and mobile-friendly Canadian Consumer Handbook was developed and launched to provide information to consumers pertaining to online security, including spam, spyware and phishing.
  2. A "Consumer Tips: Before and After You Buy" video was published to provide information on basic buying tips.
This is an improvement from the 2009–10 result of 1 outreach initiative/campaign.

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

2

Performance Status:
Exceeded

3 policies and/or legislation developed, updated or reviewed by OCA. An Order-in-Council was made designating Manitoba for the purposes of the Criminal Interest provisions of the Criminal Code. A similar draft Order-in-Council designating Saskatchewan for the same purposes was pre-published for public comment in Part I of the Canada Gazette. In addition, federal/provincial/ territorial officials presented to Deputy Ministers Responsible for Consumer Affairs a proposal for harmonizing credit reporting laws as well as a report on best practices in promoting compliance with consumer protection laws in Canada. There is no change between the 2010–11 and the 2009–10 results.

Performance Summary and Analysis of Program Activity

To aid consumers in facing the current economic climate and challenges, Industry Canada, in conjunction with the Consumer Measures Committee (CMC), hosted several teleconferences to address best practices in regulatory compliance and consumer/credit reporting. As a result, a preliminary report on best practices in regulatory compliance was prepared, including information on flexible and cost-effective approaches to improving compliance with consumer protection laws. In addition, Industry Canada and the CMC launched the interactive version of the Canadian Consumer Handbook to allow consumers to create a customized version by selecting topics of interest to them from a database of issues such as debt, credit reporting, contracts, housing and home renovations, identity theft, collection agencies, and much more. Along with consumer tips, the handbook includes a directory of useful government and non-government contacts.

The Department collaborated with the Treasury Board Secretariat in publishing the Consumer Impact Assessment Guide to offer a framework assisting policy analysts to assess and consider consumer impacts when designing or evaluating new policies or regulations. Industry Canada also collaborated with its international partners on a variety of consumer policy projects pertaining to sustainable consumption, consumer vulnerability and electronic commerce. The Department participated in the work of the Organisation for Economic Co-operation and Development (OECD) Committee on Consumer Policy (CCP) on enhancing the effectiveness and value of environmental claims. In addition to contributing to the OECD's Green Growth Strategy, Industry Canada also contributed to the development and publication of the Consumer Policy Toolkit.

Highlights of Challenges and Risk Areas
Under the new anti-spam legislation, consumers and businesses may not be fully aware of their roles and responsibilities regarding spam and other online threats. Therefore, Industry Canada began development of a communications strategy to inform Canadians and to manage expectations. This will continue in 2011–12.

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Program Activity: Competition Law Enforcement and Advocacy

Program Activity 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 Marketing 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.

2010–11 Financial Resources ($ millions)
Planned Spending Total Authorities Actual Spending
46.7 47.3 45.6
2010–11 Human Resources (full-time equivalents)
Planned Actual Difference
452 418 34
Expected Results
Expected
Results
Performance
Indicators
Targets Performance
Status
Competitive markets and informed consumer choices Dollar savings to consumers from Bureau actions that stop anti-competitive activity

$330 million

Performance Status:
Not Met

$133.3 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.
Criminal Matters Branch: $115.5 million

Fair Business Practices Branch: $17.8 million. This is declining from the 2009–10 results where dollar savings to consumers were estimated at $281 million.
Percentage of economy subject to market forces

82% of GDP

Performance Status:
Met All

Approximately 82% of the Canadian GDP is subject to market forces. The Bureau undertook a study of the Canadian economy, which was adjusted for sectors that are regulated, and not under the purview of the Competition Act. There is no change between the 2010–11 and 2009–10 results.
Performance Summary and Analysis of Program Activity

Industry Canada, through the Competition Bureau (Bureau), continued to focus on the effective implementation of the amendments made to the Competition Act, as well as renewing its enforcement activities with a view to enhancing transparency and discharging its mandate. In an effort to provide businesses with clear guidelines and a predictable process, the Bureau released an updated Fees and Service Standards Policy for Mergers and Merger-Related Matters, Fees and Service Standards Handbook for Mergers and Merger-Related Matters and Procedures Guide for Notifiable Transactions and Advance Ruling Certificates under the Competition Act, and has undertaken moderate revisions to the Merger Enforcement Guidelines. The Bureau also revised the Enforcement Guidelines for "Product of Canada" and "Made in Canada" claims, which took effect in July 2010.

As part of its ongoing enforcement efforts targeting domestic bid-rigging, the Bureau laid criminal charges against eight companies and five individuals accused of rigging bids for private sector ventilation contracts in the Montréal area. The Bureau's investigation found evidence of criminal activity in five competitive bidding processes for contracts worth approximately $8 million. In addition, Embraco North America Inc. and Panasonic Corporation were each fined $1.5 million after pleading guilty to criminal charges that they fixed the price of hermetic refrigeration compressors in Canada. As cartels impose higher prices for goods and services and deprive consumers of the benefits of competition, enforcement in this area results in lower prices for consumers and deters others contemplating anti-competitive behaviour.

Additionally, following the Bureau's filing of a formal challenge with the Competition Tribunal in February 2010, the Bureau reached a consent agreement that fully resolved concerns regarding anti-competitive rules imposed by the Canadian Real Estate Association (CREA). As a result, real estate agents will have the flexibility to provide innovative service and pricing options to consumers, and consumers will have the ability to choose which services they want from a real estate agent when selling their home. The Bureau has already seen an emergence of new business models offering different and flexible pricing and service options.

In December 2010, the Bureau filed an application with the Competition Tribunal to strike down restrictive and anti-competitive rules that Visa and MasterCard impose on merchants who accept their credit cards, alleging that the rules effectively eliminate competition between the companies, resulting in increased costs to businesses and, ultimately, consumers. Merchants in Canada pay an estimated $5 billion annually in hidden credit card fees. Visa and MasterCard operate the two largest credit card networks in Canada and together they processed more than 90 percent of all credit card transactions by Canadian consumers in 2009, representing more than $240 billion in purchases.

The Bureau also focused on the effective and timely review of mergers. In 2010–11, the Bureau received 209 merger filings and cleared over 90 percent of merger filings within the prescribed service standards of each complexity level. In June 2010, the Bureau reached an agreement with IESI-BFC and WSI Services Inc. to resolve the Bureau's conclusion that the merger would substantially lessen or prevent competition in the supply of commercial waste collection services in a number of markets in Canada. In addition, in July 2010, the Bureau reached an agreement with generic drug manufacturers Teva Pharmaceutical Industries Ltd. and the Merckle Group (carrying on business as ratiopharm inc.), requiring divestitures to resolve the Bureau's conclusion that the merger would likely substantially lessen competition in the supply of two generic pharmaceutical products used for the relief of moderate to severe pain. Additionally, in August 2010, the Bureau reached an agreement with Novartis AG to resolve the Bureau's conclusion that Novartis AG's proposed acquisition of control of Alcon, Inc. would substantially lessen competition in Canada for the supply of certain ophthalmic products. Furthermore, in January 2011, the Bureau applied to the Competition Tribunal for an order to dissolve CCS Corporation's (CCS) acquisition of Complete Environmental Inc., the owner of the proposed Babkirk Secure Landfill, in northeastern British Columbia. Following a thorough review, the Bureau concluded that by purchasing, rather than competing with the Babkirk Secure Landfill, CCS would prevent the entry of competition into the market for secure hazardous waste disposal in northeastern British Columbia. These four cases alone will likely result in estimated annual savings of $31 million for Canadians.

In its continuing efforts to protect consumers from scams and fraudulent claims, the Bureau targeted mass marketing fraud (MMF) over the Internet. Of note, the Bureau took action against a recidivist continuing to market through a Canadian Internet business, making false and/or misleading claims relating to "well-paying job opportunities" in the oil industry. Taking advantage of the vulnerability of under- or unemployed individuals during the economic downturn, this job opportunities scam targeted those who were searching for employment in the oil industry and deceived Canadians and Americans into paying between $397 and $1,197 for services that were never provided, with no refunds granted. This action resulted in the arrest of the principal perpetrator and involved coordinated enforcement cooperation with the Bureau's international law enforcement partners. The Bureau also commenced legal proceedings against Rogers Communications Inc. (Rogers) to stop what the Bureau concluded were misleading advertising claims relating to Rogers' chatr discount wireless and text services. The alleged misleading and unsubstantiated claims suggested that subscribers would experience "fewer dropped calls than new wireless carriers." This advertising impacted new entrants who had only recently commenced operations following a government initiative to encourage greater competition in the wireless market in Canada. The Bureau viewed the effect of this conduct to be not only misleading to consumers, but also injurious to competition by undermining the new entrants' abilities to compete fairly in this marketplace. Following the Bureau's intervention, Rogers modified their representations.

To increase reliance on competition and to further strengthen the Canadian marketplace, the Bureau made a submission to Canadian Heritage's Review of the Revised Foreign Investment Policy in Book Publishing and Distribution, recommending that foreign investment and ownership restrictions be relaxed or removed to provide a broader array of capital options in the market.

Lessons Learned

In 2007–08, the Bureau undertook an evaluation of its anti bid-rigging program, which was initiated by the senior management of the Bureau and managed by the Audit and Evaluation Branch of Industry Canada. The evaluation examined the initiatives and activities put in place by the Bureau to combat bid-rigging. The evaluation provided a baseline or interim report card to be used for comparative purposes in future potential evaluations. The results of this evaluation are available online. Specific initiatives undertaken in response to the evaluation included the development of an anti bid-rigging outreach strategy and the provision of anti bid-rigging training for staff at Public Works and Government Services Canada.

Strategic Outcome 2: Science and Technology, Knowledge, and Innovation are Effective Drivers of a Strong Canadian Economy

Strategic S&T investments are key drivers in rebuilding the post-recession Canadian economy. With the current global and financial context, which could hinder corporations' ability to make program repayments, Industry Canada placed increased focus on firm-level financial analysis to foster innovation and commercialization of new technologies. This is fundamental to improving Canada's overall productivity and enhancing the country's competitiveness, and was accomplished through the following Program Activities:
  • Canada's Research and Innovation Capacity
  • Communications Research Centre Canada
  • Commercialization and Research and Development Capacity in Targeted Canadian Industries

Success Story — Canada's S&T Advantages

Projects funded through the Knowledge Infrastructure Program (KIP) supported efforts to foster three key Canadian S&T advantages, as outlined in the Government of Canada's Science and Technology Strategy:

  1. Knowledge Advantage: Nearly $1.1 billion* in federal KIP funding has been allocated to over 140 projects supporting enhanced R&D capacity in Canadian post-secondary institutions.
  2. People Advantage: More than $700 million* in federal KIP funding has been allocated to over 120 projects supporting increased training capacity in advanced knowledge areas in Canadian post-secondary institutions.
  3. Entrepreneurial Advantage: Approximately $465 million* in federal KIP funding has been allocated to over 40 projects supporting the development of industry incubation facilities at Canadian post-secondary institutions.

KIP funding also provided benefits such as improved energy and enhanced campus health and safety.

* Exceeds actual KIP spending ($1.7 billion) because a project can have an impact on more than one S&T advantage. (Return to reference)

Distribution of spending by program activity in the area of Science and Technology, Knowledge, and Innovation are Effective Drivers of a Strong Canadian Economy

Pie chart - Distribution of spending by program activity in the area of Science and Technology, Knowledge, and Innovation are Effective Drivers of a Strong Canadian Economy (the long description is located below the image)
Long description
Distribution of spending by program activity in the area of Science and Technology, Knowledge, and Innovation are Effective Drivers of a Strong Canadian Economy
Canada's Research and Innovation Capacity 47%
Commercialization and Research and Development Capacity in Targeted Canadian Industries 45%
Communications Research Centre Canada 8%

Financial Resources*

Graph - Financial Resources (the long description is located below the image)

* To ensure that readers have an appropriate year-over-year trend in Financial Resources between 2009–10 and 2010–11, the figures do not include EAP resources as indicated in the "How to read this report" section on page 2 of this document. For more information on EAP Financial Resources and Human Resources, please refer to the EAP Section of this report. Changes in financial resources between 2008–09 and 2009–10 are largely due to a change in the requirements for reporting on the Internal Services activity in the DPR that decreased planned spending; however, this is offset by further funding that was received for various programs including AIF ($59.8 million), Bombardier CSeries ($13.2 million) and SADI ($56.7 million). (Return to reference)

Long description
Financial Resources
($ millions) 2008–2009 2009–2010 2010–2011
Total Authorities 625.0 784.9 694.5
Planned 483.9 652.1 582.7
Actual 571.6 586.7 546.8


Human Resources**

Graph - Human Resources (the long description is located below the image)

** The decrease in human resources between 2008–09 and 2009–10 is largely due to a change in the requirements for reporting on the Internal Services activity in the DPR. In 2008–09, the Internal Services resources were allocated to each of the strategic outcomes. Starting in 2009–10, Internal Services was reported as a separate activity. The 2010–11 variance is due to a reorganization that resulted in a lower FTE utilization than planned. (Return to reference)

Long description
Human Resources
($ millions) 2008–2009 2009–2010 2010–2011
Planned 770.0 646.0 716.0
Actual 663.0 635.5 649.0

Meeting Our Commitments

In an effort to ensure that S&T, knowledge and innovation are effective drivers of a strong Canadian economy, Industry Canada encouraged leading-edge R&D and provided value-added knowledge and expertise to enhance conditions for commercialization and innovation in targeted Canadian industries. The Department worked with the private sector, industry associations, academia and all levels of government to foster an environment conducive to innovation and scientific excellence.

Program Activity: Canada's Research and Innovation Capacity

Program Activity Description

This program activity supports the Minister of Industry in his/her responsibilities related to science and technology. It sets the 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 to promote scientific excellence and industrial competitiveness.

2010–11 Financial Resources ($ millions)

* The variance between Total Authorities and Actual Spending is due to a misalignment of planned spending and expenditures, where approximately $5 million was allocated to Internal Services in the 2010–11 Planned Spending rather than this program activity. Mid-year review ensured that expenditures were properly coded. The issue has been resolved for the 2011–12 fiscal year. (Return to reference)

Planned Spending Total Authorities Actual Spending
248.6 251.5 255.9*
2010–11 Human Resources (full-time equivalents)
Planned Actual Difference
82 83 1
Expected Result Performance
Indicator
Target Performance
Status
ST&I policy frameworks to enhance Canada's research and innovation capacity Number of ST&I outreach activities with other government departments, agencies and external stakeholders

20

Performance Status:
Exceeded

Industry Canada led or participated in 29 key outreach activities involving other science-based departments and agencies, provincial and territorial counterparts, and stakeholders at home and abroad to advance Canada's S&T agenda and provide the Government with a strong foundation for policy development. This is an improvement from the 2009–10 result of only 21 key outreach activities.

Performance Summary and Analysis of Program Activity

To foster innovation and to ensure that Canadians benefit from scientific discoveries and innovation, Industry Canada continued to strengthen the effectiveness of its investments in S&T as outlined in the Government's S&T Strategy, Mobilizing Science and Technology to Canada's Advantage. The Department also supported the Science, Technology and Innovation Council (STIC), provided analysis and conducted research in support of STIC's State of the Nation 2010 report production. This report provided an assessment of Canada's research and innovation and measures Canada's S&T performance against international standards of excellence. The Department's contribution to STIC provided the government with access to high-quality research and analysis.

Industry Canada worked with the granting councils to design and implement the Banting Postdoctoral Fellowship program, which will fund 70 new internationally competitive fellowships per year. The Department also commissioned an assessment from the Council of Canadian Academies (CCA) on research integrity to help inform the granting agencies' renewal of the Tri-Agency Framework for Integrity in Research. The CCA's report was released publicly on October 21, 2010, and supports the changes to the tri-agency policy to promote integrity in the conduct of federally-funded research.

Industry Canada also struck an independent Ad Hoc Panel on Canada Excellence Research Chairs (CERC) Gender Issues to examine the lack of female representation in the final stages of the inaugural CERC competition. The Panel provided recommendations on April 23, 2010, on how Canada can best pursue world-class excellence in attracting and retaining top researchers through the CERC program, while seeking a field of candidates that reflects both the talented women and men among the world's top-tier researchers.

To ensure contribution towards a knowledge-based economy, the Department worked closely with TRIUMF, the National Research Council (NRC) and the Canada Foundation for Innovation (CFI) to ensure that short- and medium-term operating cost pressures of TRIUMF, one of Canada's major science initiatives, are addressed, and to assess how TRIUMF's new initiative to build its Advanced Rare Isotope Laboratory (ARIEL) facility will complement the activities funded through the federal government's recent renewal of $222 million over the next five years.

In support of the S&T Strategy, the Department brought forward a number of proposals, including an additional $65 million for Genome Canada; $80 million in new funding over three years through the Industrial Research Assistance Program to help SMEs accelerate their adoption of key information and communications technologies through collaborative projects with colleges; and $50 million over five years beginning in 2012–13 to the Perimeter Institute for Theoretical Physics, to support research education and public outreach activities.

Lessons Learned

A Horizontal Audit of Management of Funding Agreements for Single Recipient Transfer Payments was conducted in 2010–11. The audit exercise recommended improvements in documenting oversight and monitoring practices and leveraging intra-departmental collaboration to improve oversight and monitoring. Currently, the Department is preparing a management response to address the recommendations made in the internal audit.

Program Activity: Communications Research Centre Canada

Program Activity Description

This program conducts research and 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, regulations and program delivery; 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 (SMEs).

2010–11 Financial Resources ($ millions)

* Additional funding was reallocated in-year to maintain Shirley's Bay Campus infrastructure and operational requirements. (Return to reference)

Planned Spending Total Authorities Actual Spending
39.1 43.4 43.9*
2010–11 Human Resources (full-time equivalents)
Planned Actual Difference
401 388 13
Expected
Results
Performance
Indicators
Targets Performance
Status
Industry Canada and other government organizations receive high-quality, research-based technical inputs to develop telecommunications policies, regulations and standards and support government operations Client satisfaction survey (related to content, timeliness and usefulness) related to CRC technical inputs and advice used to develop telecommunications policies, regulations, programs and standards 80%

Performance Status:
Not Met

No formal client satisfaction survey was undertaken during the year.

Note: This is being changed to a more appropriate performance indicator for subsequent years.

Canadian companies use CRC-developed technologies to enhance their product lines Increase in total sales revenues of Canadian communications companies with a link to CRC, compared to market averages 20% (over 5 years)

Performance Status:
Exceeded

61% according to the studies done by Doyletech Corporation on the Economic Impact of Technology Transfer from CRC

Because historical data are unavailable, a trend analysis is not applicable for this performance result. The next study will be done in 2015.

Performance Summary and Analysis of Program Activity

Industry Canada, through the CRC, is a key centre of excellence for ICT research in Canada and around the world and regularly provides advice and expertise in communications technologies. In June 2010, the G8 and G20 Summits were held in Toronto, and the CRC assisted with the security at both of these summits by providing 12 spectrum monitoring units with direction-finding capability for Industry Canada's Ontario region. These units were used to ensure public safety and security units could operate without interference.

In 2010–11, the CRC also provided the Department of National Defence (DND), Canadian Space Agency (CSA), Public Safety Canada and other government departments with advanced communications technology advice, demonstrations and designs to use in the development of their procurement requirements and to make available to their potential contractors. As part of a DND Technology Development Program project, CRC developed a Traffic Management System, aspects of which will be incorporated into the Navy's fleet network management requirements.

The Department, through the CRC, provides Canadian companies with access to technical innovations for industrial benefits that close innovation gaps and make them more competitive. During 2010–11, the following agreements were added to the CRC's Agreement portfolio:

  • 26 new R&D contract agreements to provide technical expertise and/or to develop and transfer technology to Canadian small and medium-sized enterprises; and
  • 26 new licence agreements to transfer technology to industry.
Highlights of Challenges and Risk Areas

To ensure CRC's R&D provides clients with high-quality, research-based technical inputs and sufficiently aligns with its client's strategic priorities, a review of research priorities was completed. Panels of experts were established to conduct this review, and they examined the relevance and quality of the research.

Aging campus infrastructure may affect the operations of Industry Canada and other government department partners. In response to this, a multi-year capital plan was developed to identify the resources required to address critical infrastructure problems and health and safety requirements, and to reduce ongoing repair costs.

Lessons Learned

As part of an Industry Canada CRC review in 2009–10, conducted by three external consulting groups, it was recommended that CRC undertake a set of vertical expertise reviews, consisting of periodic peer reviews of CRC core programs. In 2010–11, CRC conducted the first review on the Photonics program, which resulted in some changes such as the closure of one lab facility, reassignment of personnel to other programs, re-focusing the work of some projects as well as a reaffirmation of the technical excellence in the CRC R&D. The results have established a process to be used for the reviews to be conducted in 2011–12.

Program Activity: Commercialization and Research and Development Capacity in Targeted Canadian Industries

Program Activity Description

This program advances leading-edge R&D in targeted Canadian industries and provides value-added knowledge and expertise to enhance conditions for commercialization and innovation. Relationships required to enhance Canadian innovation are fostered among the private sector, associations, academia and all levels of government. These collaborative relationships help to advance technology transfer, spinoffs and innovation, and contribute to a skilled workforce. The Department also conducts research and analysis, often with its industry and government partners, to develop strategic information products. This research and analysis is disseminated to key decision makers and is essential when the Department advises on issues, regulations and policies affecting commercialization and R&D in targeted industries. Government investments, such as repayable contributions, to foster Canadian private sector R&D are also targeted by this program activity that, in general, ensures that Canadians and Canadian businesses benefit from an innovative and knowledge-based economy.

2010–11 Financial Resources ($ millions)

* Total Authorities include additional funding received in-year through Supplementary Estimates of $90 million in repayable contributions from Technology Partnerships Canada (TPC) and $22.5 million for the Bombardier CSeries Program. (Return to reference)

** The variance between Total Authorities and Actual Spending is the result of delays in large-scale R&D projects. Approval was received to defer funding to future years, to better match the cash requirements of recipients in two programs: TPC/Strategic Aerospace and Defence Initiative (SADI) ($60.0 million) and Automotive Innovation Fund (AIF) ($53.2 million). (Return to reference)

Planned Spending Total Authorities Actual Spending
295.0 399.6* 247.0**
2010–11 Human Resources (full-time equivalents)

* In 2010–11, this program activity went through a reorganization. As a result, FTE utilization was lower than anticipated. (Return to reference)

Planned Actual Difference
249 178 71*
Expected
Results
Performance
Indicators
Targets Performance
Status
Leveraged leading-edge research and development in targeted Canadian industries Dollar(s) of stakeholder investment leveraged per dollar of Industry Canada investments in R&D projects $2

Performance Status:
Exceeded

The Department leveraged $3.19 during 2010–11. This is an improvement from the 2009–10 result of $1.95.

Performance Summary and Analysis of Program Activity

Through knowledge sharing, engagement and program delivery, Industry Canada enhanced the research and development capacity of targeted Canadian industries. For example, in partnership with the NRC, Industry Canada created the Canadian HIV Technology Development component of the NRC's Industrial Research Assistance Program (IRAP). Industry Canada also promoted the Canadian Biorefinery Knowledge Network and disseminated a study on the state of biorefineries in Canada and the challenges to their further development in collaboration with BIOTECanada. Key findings included the importance of identifying product markets, optimum biorefinery configuration and partnerships. The study's findings sparked discussion among stakeholders on the prerequisites for success in this sector.

The Department collaborated with the Canadian Manufacturers and Exporters (CME) to determine how manufacturers invest in innovation and the impact that will have on their future operations. As a result, Industry Canada is better able to identify the drivers of innovation from an industry perspective, which will help inform innovation policy and enhance the competitiveness of manufacturers.

Industry Canada's largest research and development program, the Strategic Aerospace and Defence Initiative (SADI), has invested more than $824 million in funding to date in strategic R&D and innovation projects. In 2010–11, Industry Canada, through SADI, invested in seven new innovative and competitive projects aimed at improving Canada's innovation capacity and the commercialization of new technology. These projects also helped foster collaboration in R&D between A&D firms and academia across the country, including the University of British Columbia, Université Laval and École Polytechnique de Montréal.

Industry Canada worked closely with its partners to promote the adoption and commercialization of new technologies. For example, in collaboration with the Department of National Defence, the Department successfully concluded the Development Phase (first of two phases) of the Soldier Systems Technology Roadmap (SSTRM). Over the past two years, seven workshops were facilitated that brought together 1,550 participants from industry, academia and governments, addressing future soldier capability gaps and needs, challenges and technology solutions. During the course of 2010–11, Industry Canada was restricted to guiding the development of one TRM, rather than the planned four, as per the corresponding RPP. This is partially a result of prioritization of work, a desire to focus on the SSTRM and an internal reorganization. The Department also worked with aerospace industry stakeholders through the industry-led Future Major Platforms (FMP) initiative and the Green Aviation Research and Development Network (GARDN) to promote and coordinate the development and adoption of new technologies, including ICT and clean energy technologies, for aerospace applications.

Highlights of Challenges and Risk Areas

To maintain the confidence of Canadians in its management of investments in high-risk leading-edge technology and innovation projects that generate economic and social benefits, Industry Canada implemented a combination of strong governance and oversight practices, robust risk management, recipient audit and internal audit activities and effective communication.

Lessons Learned

While recovering from tough economic times, industries are understandably reticent about investing in new R&D initiatives; however, it is imperative that Canada maintain and increase its knowledge and innovation capacity in order to compete globally. To address this issue, Industry Canada continued to implement and manage a number of initiatives that encourage and invest in innovation and R&D opportunities, such as the Automotive Innovation Fund, which was audited in 2010–11. As a follow-up to recommendations, the project and program risk assessment processes, as well as file management procedures, have now been strengthened. In addition, the Government also supported the development of the innovative capacity of companies in the aerospace, security, space and defence industries. This will help to ensure that the Canadian industry continues its recovery from the financial crisis and advances its innovation and R&D capacity, while promoting long-term economic growth.

The Audit and Evaluation Branch completed an audit of the Industrial Technologies Office (ITO) Strategic Aerospace and Defence Initiative — in 2010–11. Findings were favourable, with some recommendations. As a result, ITO has implemented a risk-based monitoring template; periodic reviews and updates of program level risks at the Risk Management Committee; and an annual assessment of the Committee structure. As well, a memorandum of understanding outlining roles and responsibilities of the Chief Financial Officer and the Executive Director of ITO regarding SADI and TPC repayments has been approved.

Strategic Outcome 3: Competitive Businesses are Drivers of Sustainable Wealth Creation

Success Story — Northern Ontario Development Program

With help from FedNor, and through the NODP, Algoma University in Sault Ste. Marie received $276,500 to establish a cutting-edge video game studio to produce products for the health care sector. The funding was used to hire three game development experts, as well as the technical support to create and test a game for stroke patients requiring remedial speech therapy. The studio also helped attract students to the University's Master of Science in Computer Game Technology program, the only one of its kind in Canada. Once fully operational, the Algoma Games for Health studio is expected to employ 40 to 50 people and create an additional 50 permanent, highly skilled positions in related industry sectors.

Industry Canada's mandate is to help make Canadian industry more productive and competitive in the global economy. In doing so, the Department collaborated with associations, governments and industry to enhance Canada's industrial capabilities. Industry Canada is also committed to supporting Canadian companies in a variety of ways, and promotes economic development in communities to encourage the development of skills, ideas and opportunities across the country. This was accomplished through the following program activities:

  • Entrepreneurial Economy
  • Global Reach and Agility in Targeted Canadian Industries
  • Community, Economic and Regional Development
  • Security and Prosperity Partnership of North America — Canadian Secretariat

Distribution of spending by program activity in the area of Competitive Businesses are Drivers of Sustainable Wealth Creation

Distribution of spending by program activity in the area of Competitive Businesses are Drivers of Sustainable Wealth Creation (the long description is located below the image)
Long description
Distribution of spending by program activity in the area of Competitive Businesses are Drivers of Sustainable Wealth Creation
Entrepreneurial Economy 42%
Community, Economic and Regional Development 38%
Global Reach and Agility in Targeted Canadian Industries 20%
Security and Prospority Partnership of North America 0%

Financial Resources*

Financial Resources graph (the long description is located below the image)

* To ensure that readers have an appropriate year-over-year trend in Financial Resources between 2009–10 and 2010–11, the figures above do not include EAP resources as indicated in the "How to read this report" section on page 2 of this document. For more information on EAP Financial Resources and Human Resources, please refer to the EAP Section of this report (page 41). The decrease in financial resources between 2008–09 and 2009–10 is largely due to a change in the requirements for reporting on the Internal Services activity in the DPR. In 2008–09, the Internal Services resources were allocated to each of the strategic outcomes. Starting in 2009–10, Internal Services was reported as a separate activity. (Return to reference)

Long description
Financial Resources
($ millions) 2008–2009 2009–2010 2010–2011
Total Authorities 464.0 300.8 270.1
Planned 334.2 297.8 245.0
Actual 414.2 307.3 254.4

Human Resources**

Human Resources graph (the long description is located below the image)

** The decrease in human resources between 2008–09 and 2009–10 is largely due to a change in the requirements for reporting on the Internal Services activity in the DPR. In 2008–09, the Internal Services resources were allocated to each of the strategic outcomes. Starting in 2009–10, Internal Services was reported as a separate activity. The 2010–11 variance is due to a reorganization that resulted in a lower FTE utilization than planned. (Return to reference)

Long description
Human Resources
($ millions) 2008–2009 2009–2010 2010–2011
Planned 785.0 678.0 505.0
Actual 659.0 508.8 467.0

Meeting Our Commitments

In an effort to ensure that Industry Canada contributes to sustainable wealth creation, and ensuring that businesses are competitive, the Department continued to improve BizPaL and the Canada Business Network. Industry Canada addressed the ongoing need for a link between industry and government, and the emerging need for comprehensive firm and industry analysis, to better address the impact of continued global competitiveness pressures and the evolving global supply chain on Canadian-based industries and firms.

Program Activity: Entrepreneurial Economy

Program Activity Description

This program raises government-wide awareness of the challenges facing small businesses by providing value-added knowledge and expertise, recommending policy options, and delivering programs that enhance small business growth and competitiveness and encourage entrepreneurship.

2010–11 Financial Resources ($ millions)
Planned Spending Total Authorities Actual Spending
104.3 109.0 106.1
2010–11 Human Resources (full-time equivalents)
Planned Actual Difference
113 101 12
Expected
Results
Performance
Indicators
Targets Performance
Status
Small and medium-sized enterprises' (SMEs) use of government business-related information, programs and services, and facilitated compliance for business Increase in number of clients using the Canada Business Network (CBN) website over the previous year

10%

Performance Status:
Not Met

Decrease of approximately 4.4%.^
Total number of clients:

  • 2010–11: 1,865,023
  • 2009–10: 2,660,588*

Because historical data are unavailable, a trend analysis is not applicable for this performance result.

^ To address this decline, the Canada Business National Office will attempt to increase awareness of the website through the development of a new branding strategy and will continue to adapt and improve the usability and content of the website based on client feedback and usability testing. (Return to reference 1)

* The Business Start-Up Assistant (BSA) was removed from the CBN website in September 2010. Its total visits were reported in the 2009–10 statistics (709,800). By removing the BSA statistics, the 2009–10 reporting would have been 1,950,785; thus the actual decrease to the CBN national website is only 4.4%. (Return to reference 2)

Integrated business permit and licence information from all levels of government provides value to clients across Canada. Percentage of clients that indicate satisfaction with the services provided 80% Performance Status:
Met All

Two rounds of moderated and two rounds of un-moderated usability testing designed to validate the implementation of the transformed BizPaL project, which will be implemented in May 2011 was conducted. The usability testing was successful in validating the project and garnered a 91% success rate of completed tasks among participants.

Because historical data are unavailable, a trend analysis is not applicable for this performance result.

Performance Summary and Analysis of Program Activity

To contribute to the competitiveness of businesses and to help create sustainable wealth, the BizPaL partnership network expanded its service to an additional 147 jurisdictions across Canada, resulting in a 34-percent increase to jurisdictional coverage since the 2009–10 fiscal year. In addition to licences and permits, BizPaL content has now been expanded to include approvals, registrations and certificates.

Industry Canada continued to collaborate with federal/provincial/territorial partners as well as with other partners to discuss future business delivery strategies for the Canada Business Network (CBN). This is in an ongoing effort to assist Canadian small and medium-sized enterprises (SMEs) with their business information requirements. Through greater use of social media tools (Really SimpleSyndication [RSS] feeds, blogs and Twitter), CBN has increased its ability to obtain input from clients and boost awareness of its services.

Through a memorandum of understanding, Industry Canada has worked with the Government of Ontario's Ministry of Government Services (ServiceOntario) and Ministry of Economic Development and Trade to collaborate on services to business. Areas of collaboration included a single telephone number, the Business Info Line, and collaboration on website and content management, as well as communications and marketing. The use of a single phone number for both federal and provincial enquiries is also clearly aligned with the province of Ontario's Open for Business Initiative as it provides seamless service for Canadians and greater access to information and services for business.

Highlights of Challenges and Risk Areas

To meet client and stakeholders' expectations of BizPaL for current, accurate information services, the Department engaged and maintained strong networks with other governments, departments and agencies to ensure BizPaL content remained up to date and reflective of client needs. Integration of such information benefits clients across Canada.

Lessons Learned

Since a 2008 evaluation that identified a need for BizPaL to reach non-participating provinces and territories and to increase awareness of the BizPaL services, partnerships have increased from 9 to 11 provinces and territories and over 570 municipalities. This demonstrates a 28.5-percent increase in population coverage from March 31, 2008, to March 31, 2011, in addition to a 412.4-percent increase in the number of municipalities participating in BizPaL over the same time frame. In 2009, Industry Canada contracted Hill and Knowlton to conduct a marketing strategy with the goal of increasing awareness of the BizPal service. In 2010, the BizPaL website and promotional material (brochures and factsheets) were re-designed as per the marketing strategy recommendations.

Program Activity: Global Reach and Agility in Targeted Canadian Industries

Program Activity Description

Through value-added policy expertise, industry development and analysis, and strategic funding, this program aims to enhance the ability of targeted Canadian industries to take advantage of opportunities and respond to risks, ensure Canadian industry's link into global value chains, and assist businesses in strengthening partnerships both domestically and internationally. The desired result is agile Canadian industries that are able to adapt to the ever-changing economic landscape, respond appropriately to external shocks and compete internationally. This program works to mitigate strategic risk factors affecting Canadian industries' performance in global markets by analyzing the specific issues they face and using this knowledge to contribute to the development of policies, marketplace frameworks and strategies, including contributing to research and analysis aimed at achieving regulatory objectives in a manner that is sensitive to economic impacts. Departmental officials interact with associations, governments and leading firms in this program activity to assist with matchmaking among companies, improve conditions for market access and promote Canadian expertise. In addition, through this program, the Department invests in private sector initiatives that are aimed at maximizing productivity and facilitating access to capital. By helping Canadian industries mitigate risks and take advantage of opportunities in globalized markets, this program is committed to creating competitive businesses and sustainable wealth creation capability for Canadians.

2010–11 Financial Resources ($ millions)

* The variance is due to a reprofiling of $7 million in Structured Financing Facility Program from 2010–11 to 2013–14 to ensure program integrity until federal procurement of ships begins, which will lead to new builds in 2013–14. (Return to reference)

Planned Spending Total Authorities Actual Spending
56.0 61.5 51.3*
2010–11 Human Resources (full-time equivalents)

* In 2010–11, this program activity went through a reorganization. As a result, FTE utilization was lower than anticipated. (Return to reference)

Planned Actual Difference
248 226 22*
Expected
Result
Performance
Indicators
Targets Performance
Status
Adaptable Canadian industries are linked to global value chains and have the capacity to prepare for and respond to risks and opportunities in the domestic and global markets. Quantity of completed initiatives, designed to increase the global reach and agility of Canadian industries, as a percentage of initiatives identified in the sector's business plan 80%

Performance Status:
Exceeded

92.8%
Most of the initiatives outlined in the business plan were completed. Some were not completed due to competing priorities and the significant reorganizations in the sector. This result is declining from last year's result of 100% of completed initiatives.

Stability or improvement in Canada's ranking in the World Economic Forum's Global Competitiveness Report 10th place

Performance Status:
Somewhat Met

Canada ranked 12th in the World Economic Forum's 2011–12 Global Competitiveness Report11, which covers 2010–11. While Canada's ranking declined from a 2010–11 ranking of 10th, the overall score showed modest improvement. The decline in ranking is due to greater improvements in other countries, rather than a decline in Canada's results.

Performance Summary and Analysis of Program Activity

In 2010–11, Industry Canada collaborated with partners in academia, industry and government to improve the recognition of Canadian industrial capabilities as well as their competitiveness and agility in the global marketplace. For example, Industry Canada enhanced the Industry Collaboration and Exchange Environment (ICee) to better provide unique opportunities to exchange information with its partners on future needs as well as industrial and academic capabilities. With over 450 registered users, ICee is currently being applied as a collaboration tool for the Soldier Systems Technology Roadmap. Industry Canada also coordinated company participation in trade shows and helped them explore matchmaking opportunities. In collaboration with the provinces and territories, the Department organized a tourism mission to China, which took place in October 2010. As it was aimed at increasing tourism opportunities with China, the mission complemented Industry Canada's efforts in supporting the Minister of State's office in working with the Department of Foreign Affairs and International Trade (DFAIT) to finalize the Approved Destination Status (ADS) with China. According to Conference Board of Canada forecasts, by 2015, the ADS will contribute to a 50-percent increase in the number of Chinese travellers to Canada. Industry Canada also supported the Minister of State in holding two round table discussions with industry to identify policies and programs that have an impact on tourism and to discuss opportunities to broaden access to, and awareness of, Canadian tourist attractions.

In June 2010, Industry Canada implemented the Industrial and Regional Benefits (IRB) Policy enhancement to support the inclusion of Canadian firms in the major prime contractors' Global Value Chains (GVCs) as new, large-value Government of Canada defence procurement contracts take place. The Department also implemented the requirement for Corporate IRB Strategic Plans from major IRB contractors to Canada. These strategic plans will seek to identify new IRB opportunities for Canadian industry, including GVC activities within the contractor's overall corporate portfolio.

The Department increased the scale of its pharmaceutical company monitoring program to a total of 101 companies, an increase of 19 from the previous year. This program provides policy and decision makers with a greater understanding of companies, and the overall pharmaceutical industry and the challenges faced, and serves as the foundation for detailed analysis and advice to senior management in policy discussions. Its overall goal is to expand pharmaceutical investment in Canada. In October 2010, Industry Canada successfully hosted trilateral Canada–U.S.–Japan meetings in Vancouver. The meetings helped resolve some market access issues and sought clarification on Japanese standards and policies for wood products.

In 2010–11, Industry Canada put forth significant efforts in fostering Canadian industries that are adaptable and able to react to changes in market conditions. This work included collaborative research with industry and academia aimed at developing best practices across core manufacturing business functions; the ongoing monitoring of key trends in the automotive sector to determine their impact on competitiveness issues, including the development of an in-depth analysis of the global trends in the automotive sector and their impact on Canadian competitiveness. The work also included an analysis of China as an emerging market, that country's automotive manufacturers and suppliers, and its overall policy environment.

Lessons Learned

In 2010–11, Audit and Evaluation Branch (AEB) completed an evaluation of the Structured Financing Facility (SFF) to assess the needs and the responsiveness of the program, and to assess the linkages between program objectives and federal government priorities. The findings of the evaluation highlighted that the SFF contributed to the creation of demand in Canadian shipyards. The program helped maintain skilled staff at both medium and large-sized shipyards and contributed to maintaining and developing shipyard skill levels. From the lessons learned for future program development, it was suggested that program criteria be designed to ensure the full range of projects that would support policy objectives be eligible for funding, and that ways be considered to make project approval processes more timely.

Program Activity: Community, Economic and Regional Development

Program Activity Description

This program advances the economic development of Ontario communities in the same manner that regional development agencies support similar activities 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.

2010–11 Financial Resources ($ millions)
Planned Spending Total Authorities Actual Spending
82.5 97.9 96.9
2010–11 Human Resources (full-time equivalents)
Planned Actual Difference
136 140 4
Expected
Result
Performance
Indicators
Targets Performance
Status
A significant increase in the capacity of selected Northern Ontario communities and businesses, helping them to thrive in the 21st century economy Average leverage ratio of program funds 1:2.13

Performance Status:
Met All

1:2.5
This is an improvement from last year's result of 1:1.9.

Total number of contribution agreements and grants approved 233

Performance Status:
Mostly Met

Through Federal Economic Development Initiative for Northern Ontario (FedNor) programs, Industry Canada provided funding for 224 contribution agreements in Northern Ontario in 2010–11.

Since this is a new indicator, and no historical data are available, a trend analysis is not applicable for this performance result.

Performance Summary and Analysis of Program Activity

In 2010–11, Industry Canada continued to support Northern Ontario communities and their businesses through FedNor. Along with the regional development agencies, FedNor completed the renewal of the Community Futures Terms and Conditions beyond the October 2, 2010, expiration date in compliance with the current Treasury Board Policy on Transfer Payments. In keeping with the Policy on Transfer Payments, a Performance Measurement Strategy was developed for the Community Futures Program. FedNor also continued to facilitate sustainable growth in Official Language Minority Communities (OLMCs) by delivering the Economic Development Initiative in Northern Ontario. The program provided financial support to organizations that address the specific development needs of OLMCs by developing new business expertise through innovation, partnerships, the diversification of economic activities and increasing support for small businesses in francophone communities. Through a memorandum of understanding, FedNor also continued to provide support services to the Federal Economic Development Agency for Southern Ontario (FedDev Ontario) — including those related to program delivery support services, corporate services, Contribution Management Information System (CMIS) input, and payment and monitoring services — ensuring a seamless program delivery to clients.

In 2010–11, the Computers for Schools program refurbished and delivered 67,684 computers to schools and not-for-profit learning organizations throughout the country. A total of 403 youth interns were employed through this program in 2010–11, providing youth with hands-on technical job experience. Through the Community Futures Program, FedNor also delivered the second year of a five-point Community Futures Development Corporation (CFDC) Stimulus Action Plan. This additional funding helped respond to the increase in loan requests from existing businesses normally serviced by conventional lenders as well as from new business start-ups. As a result, Northern Ontario CFDCs were in a better position to respond to the needs of their clients and increase their lending activity for the period ending March 31, 2011.

Lessons Learned

FedNor conducted a comprehensive review of the program components of the Northern Ontario Development Program (NODP) and developed a renewed focus on the program's core economic development mandate with a stronger emphasis on economic development and growth of small and medium-sized enterprises. As a result, the program's priorities were realigned to achieve short- to medium-term, measurable results supporting the economic development and growth of Northern Ontario communities and businesses. NODP's guidelines and processes were updated and made accessible through the FedNor website to provide Canadians with a strong understanding of the program. This enhanced focus of its priorities will allow FedNor to better achieve the program's mandate and to ensure that the program maximizes the impact of its investments.

Additionally, in response to a recommendation in the 2007 internal auditor's report of FedNor and the NODP, FedNor began to implement a Customer Relationship Management System to facilitate a coordinated approach to managing client interaction, enabling a more transparent and efficient means of sharing client information across the organization.

Program Activity: Security and Prosperity Partnership of North America — Canadian Secretariat

Program Activity Description

This program supports the Minister of Industry in his/her responsibility for leading Canada's engagement in the Security and Prosperity Partnership (SPP). 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 United States 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.

2010–11 Financial Resources ($ millions)

* A misalignment of funds has resulted in Actual Spending for this program activity being coded to Internal Services ($1.03M). The Security and Prosperity Partnership of North America ended in 2010–11, leading to lower Actual Spending as the program ramped down. (Return to reference)

Planned Spending Total Authorities Actual Spending
2.2 1.8 0.0*
2010–11 Human Resources (full-time equivalents)

* A misalignment has resulted in Actual Human Resources for this program activity coded to Internal (7 FTEs). (Return to reference)

Planned Actual Difference
8 0 8*
Expected
Results
Performance
Indicators
Targets Performance
Status
Industry Canada is successful in advancing its strategic priorities in the context of North America and other international bilateral and multilateral forums Number of bilateral or multilateral meetings at the senior management or ministerial level for which advice, planning or other deliverables are provided 10

Performance Status:
Exceeded

15

Information, analysis and advice were developed for over 15 bilateral or multilateral meetings at the ministerial and senior management level.

Since this is a new indicator, and no historical data are available, a trend analysis is not applicable for this performance result.

Performance Summary and Analysis of Program Activity

Industry Canada provided guidance and advice to the Minister of Industry on Canada–U.S. and North American relations, as well as on other international issues relating to the global economy. Specifically, guidance and advice was provided to the Minister for participation in the North American Competitiveness, Innovation & Clean Energy Conference 2010 in San Diego, as well as trilateral and bilateral meetings held on the margins of the Conference. Analysis and advice was also provided for The Americas Competitiveness Forum (ACF), held in Atlanta, where the Minister of Industry met with his counterparts from the U.S. and Mexico. In further support of North American cooperation, the Secretariat has provided advice to the Minister and/or senior management on international economic issues and in preparation for meetings with representatives from other governments (United Kingdom, India, China, Netherlands, Italy, etc.)

Industry Canada was responsible for the management and coordination of the Research Fund on North American Borders, Security and Prosperity. An interdepartmental Director General Committee, coordinated and chaired by Industry Canada, oversaw the completion of 29 research studies focusing on building an evidence base for the impact of border measures on Canadian competitiveness by using a variety of data sources and methodologies. Findings were presented by Industry Canada to participants from government, the private sector and the academic community.

Lessons Learned

Sustained and strategic engagement by the Minister of Industry with his counterparts is required to address issues related to improving the competitiveness of Canadian industry as the global economy shifts, in addition to ensuring that research is disseminated appropriately to inform stakeholders and shape policy debate.


11 – The Global Competitiveness Report, 2011–2012, World Economic Forum. (Format PDF) Return to text


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Program Activity: Internal Services

Program Activity Description

Internal Services is composed of groups of related activities and resources that are administered to support the needs of programs and other corporate obligations of an organization. These groups are Management and Oversight Services, Public Policy Services, Communications Services, Legal Services, Human Resources Management Services, Financial Management Services, Information Management Services, information Technology Services, Real Property Services, Materiel Services, Acquisition Services, and Travel and Other Administrative Services. Internal Services includes only those activities and resources that apply across an organization and not to those provided specifically to a program.

Financial Resources*

Program Activity: Internal Services - Financial Resources graph (the long description is located below the image)

* The lack of financial and human resources for 2008–09 is due to a change in the requirements for reporting on the Internal Services activity in the DPR. In 2008–09, the Internal Services resources were allocated to each of the strategic outcomes. Starting in 2009–10, the Internal Services was reported as a separate activity. (Return to reference)

Long description
Financial Resources
($ millions) 2008–2009 2009–2010 2010–2011
Total Authorities 0 179.0 163.0
Planned 0 82.9 92.6
Actual 0 177.8 161.6

Human Resources*

Program Activity: Internal Services - Human Resources graph (the long description is located below the image)

* The lack of financial and human resources for 2008–09 is due to a change in the requirements for reporting on the Internal Services activity in the DPR. In 2008–09, the Internal Services resources were allocated to each of the strategic outcomes. Starting in 2009–10, the Internal Services was reported as a separate activity. (Return to reference)

Long description
Human Resources
($ millions) 2008–2009 2009–2010 2010–2011
Planned 0 895 1015
Actual 0 1457 1544
2010–11 Financial Resources ($ millions)

* Since 1996, the Department has a funding model whereby it can access up to $66 million in operating funds from repayable contributions of the Defence Industry Productivity Program. These operating funds are accessed through Supplementary Estimates based on the amount collected in the previous year. To ensure the timely progress of program activities, Internal Services advances the funds to all other programs and replenishes itself when Supplementary Estimates are voted, which creates a significant variance between Planned and Actual total spending. (Return to reference)

Planned Spending Total Authorities Actual Spending
92.6 163.0 160.6*
2010–11 Human Resources (full-time equivalents)

* There is a variance between Planned and Actual values for FTEs due to an improvement in methodology used to calculate FTEs. The 2009–10 actual FTEs were 1457, which results in a variance of 87 between years that is largely due to the EAP and changes in the PAA structure. (Return to reference)

Planned Actual Difference
1,015 1,544 529*

Performance Summary and Analysis of Program Activity

The Department's year-over-year Management Accountability Framework (MAF) ratings continue to improve. The Treasury Board (TB) assessment of 2010–11 was very positive, and indicated that even with the increased workload and the delivery of EAP initiatives, Industry Canada's management capacity was very positive overall. In total, the Department was assessed on 12 Areas of Management and received five "Strong" ratings and seven "Acceptable" ratings. More specifically, the TB indicated that Industry Canada provided the appropriate level of information for the Accounts of Canada and the Public Accounts of Canada, and demonstrated an exemplary and commendable progress in the management of internal controls over financial reporting.

The Internal Audit function and the Evaluation function within Industry Canada adhered to the respective plans for 2010–11 and achieved the intended coverage to provide assurance, measure performance and inform decision making. As well, in compliance with the 2009 Policy on Evaluation, the Department drafted the Annual Report on the State of Performance Measurement in Support of Evaluation. The draft report was presented to the Departmental Evaluation Committee. With this in mind, all TB submissions were reviewed to ensure that performance measurement strategies are well articulated, and outcomes are measurable and achievable.

On the Human Resources (HR) front, employee development and retention in 2010–11 was supported with orientation sessions, stay questionnaires for new recruits, a renewed employee recognition program, full-cycle implementation of the Employee Performance Management Framework, an initiative to support corporate memory and knowledge transfer, and exit questionnaires to inform improved HR activities and programs. The Department also developed and provided tools (including learning, competency attainment and talent management) to help Industry Canada's future leaders successfully prepare for and assume executive positions in the organizations.

Highlights of Challenges and Risk Areas

Industry Canada is funded through voted parliamentary spending authorities, statutory authorities and transfer payments, as well as specified types of respendable revenue. To address the Department's variable sources of funding, Industry Canada implemented rigorous, systematic reviews and strong financial management practices and processes to help ensure decisions were made within the allocated resource level.

The Chief Information Office (CIO) used existing information technology (IT) governance processes and the 2010–11 Departmental IT Plan to allocate resources based on departmental priorities and continued to drive a departmental approach that promoted reuse and efficiency. This ensured the CIO had the resources to appropriately support current services and meet the demand for new services.

Successful employee recruitment, development and retention of the talent are needed to create and maintain a productive, sustainable, adaptable, competent and diverse workforce capable of meeting the Department's strategic outcomes. Industry Canada has developed and implemented a three-year People Management Strategy for Renewal and Results, which focuses on four main priority areas: Employee Engagement and Renewal; Leadership Development, HR Service Excellence and Service Improvement; and Integrity and Accountability. In 2010–11, Industry Canada began implementation of year two of this action plan.

Lessons Learned

The Audit and Evaluation Branch conducted an internal audit of staffing and recruitment at Industry Canada during summer/fall 2010 to assess the level of compliance, efficiency and effectiveness of staffing and recruitment processes and practices. The audit revealed a number of strengths, including a robust authority sub-delegation process, HR advice consistent with legislation and policy requirements, and timely and relevant information for managers on staffing. The audit also identified a few areas requiring improvement, mostly relating to filing documentation and non-advertised appointment processes. Audit conclusions mirror findings resulting from internal monitoring exercises, and also address issues and concerns raised by the PSC with respect to staffing across the Public Service.

Follow-up on the audit was discussed at Industry Canada's Management Committee, resulting in the approval of a detailed action plan for 2010–11 and 2011–12. As recommended in the audit, a Roles and Responsibilities document is currently being developed and will be communicated to managers in the next fiscal year.


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Canada's Economic Action Plan

In fiscal year 2010–11, Industry Canada continued to deliver on commitments related to Canada's Economic Action Plan (EAP). A significant portion of EAP resources was used to support science and technology, knowledge and innovation, which helped position the Canadian economy to excel in the global market. This was achieved through the following EAP initiatives:

  • Knowledge Infrastructure Program
  • Broadband Canada: Connecting Rural Canadians
  • Marquee Tourism Events Program
  • Institute for Quantum Computing
  • Modernizing Federal Laboratories
  • Community Adjustment Fund for Northern Ontario

For an overview of linkages between the corporate risks and the Department's priorities, please refer to the Corporate Risk Profile table in Section 4. Some EAP initiatives, due to their nature as well as to their funding, did not have performance indicators and/or expected results in the corresponding RPP; however, this DPR still reports on their results achieved in fiscal year 2010–11. These initiatives are:

  • Canada Foundation for Innovation
  • Ivey Centre for Health Innovation and Leadership
  • Canada Business Network
Strategic Outcome Program Acivity spending

* As a result of the Government's decision to extend the program deadline for key infrastructure programs to October 31, 2011, funding totalling $250.1 million was reprofiled to 2011–12. Return to text

Canada's Economic Action Plan 2009–10 Actual Spending
($ millions)
2010–11 ($ millions)
Main Estimates Planned Spending Total Authorities Actual Spending
EAP 1,080.0 1,263.9 1,322.1 1,049.1 910.2
Total 1,080.0 1,263.9 1,322.1 1,049.1* 910.2

Distribution of spending by EAP initiative

Distribution of spending by EAP initiative (the long description is located below the image)
Long description
Distribution of spending by EAP initiative ($ millions)
EAP Initiative Total Actual Percent
Knowledge Infrastructure Program 745.0 82%
Canada Foundation for Innovation 50.0 5%
Marquee Tourism Events Program 41.0 5%
Broadband Canada: Connecting Rural Canadians 30.0 3%
Community Adjustment Fund in Northern Ontario 18.7 2%
Institute for Quantum Computing 17.0 2%
Other CEAP Initatives 8.5 1%
Total 910.2 100%

Financial Resources*

Financial Resources (the long description is located below the image)

* Due to the fact that Canada's Economic Action Plan was announced in the Budget 2009 speech after the tabling of the 2009–10 RPP, there was no Planned Spending or Planned Human Resources associated with EAP for that year. Total Authorities, Planned Spending and Actual Spending associated with EAP increased in 2010–11 due to the fact that funds for several key initiatives (KIP, Broadband) were deferred to match construction projects' cash requirements. Please refer to each EAP program funding information in the section below for more information. Return to text

Long description
Financial Resources
($ millions) 2008–2009 2009–2010 2010–2011
Total Authorities 0 1579.40 1049.10
Planned 0 0.00 1322.10
Actual 0 1289.30 910.20

Human Resources*

Financial Resources (the long description is located below the image)

* Due to the fact that Canada’s Economic Action Plan was announced in the Budget 2009 speech after the tabling of the 2009–10 RPP, there was no Planned Spending or Planned Human Resources associated with EAP for that year. Total Authorities, Planned Spending and Actual Spending associated with EAP increased in 2010–11 due to the fact that funds for several key initiatives (KIP, Broadband) were deferred to match construction projects’ cash requirements. Please refer to each EAP program funding information in the section below for more information. Return to text

Long description
Human Resources
($ millions) 2008–2009 2009–2010 2010–2011
Planned 0 0 102
Actual 0 102 94

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EAP: 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. KIP falls under Program Activity: Science and Technology, Knowledge, and Innovation are Effective Drivers of a Strong Canadian Economy.

2010–11 Financial Resources ($ millions)

* As a result of the Government’s decision to extend the program deadline for key infrastructure programs to October 31, 2011, funding totalling $250.1 million was reprofiled to 2011–12. Return to text

Planned Spending Total Authorities Actual Spending
999.7 751.6 745.0*
2010–11 Human Resources (full-time equivalents)
Planned Actual Difference
16 17 1
Expected Results
Expected Result Performance Indicators Targets Performance Status

Provide economic stimulus in local economies across Canada through infrastructure investments at post-secondary institutions

Total value of approved projects at colleges and universities

$2 billion

Performance Status:
Met All

The entire $2-billion budget was allocated to support more than 500 renovation, repair and expansion projects at over 240 post-secondary institutions in every province and territory across Canada. As of March 31, 2011, more than $1.7 billion of this funding has been disbursed, with the remainder to follow in 2011–12, given an extension of the original funding deadline for KIP and other infrastructure programs.

Because historical data are unavailable, a trend analysis is not applicable for this performance result.

Performance Summary and Analysis

As part of Canada's EAP, the KIP, provided over $1.7 billion in federal funding by the end of fiscal year 2010–11. These cost-shared infrastructure projects, which leverage additional funding from non-federal sources saw total costs incurred of approximately $3.4 billion by February 28, 2011 (50 percent of which was covered by KIP funding). These projects provided a boost to job creation and economic activity in communities across Canada. Provinces, territories and institutions have reported that more than 300 projects were substantially completed as of March 31, 2011. Along with other key EAP infrastructure programs, the deadline for program funding under KIP was extended to October 31, 2011 to allow sufficient time to complete remaining projects.

Highlights of Challenges and Risk Areas

To meet the objectives of KIP, and provide economic stimulus in a timely fashion to local economies in Canada through infrastructure investments at post-secondary institutions, a combination of stringent monitoring through quarterly progress reports and a flexible approach to reallocating funding among projects were implemented. This enabled recipients to proceed quickly with their projects and to revise funding agreements where appropriate. A seven-month extension to the deadline for KIP and other EAP infrastructure initiatives, to October 31, 2011, was granted to allow full disbursement of the $2 billion budget.

Lessons Learned

KIP was audited as part of the OAG audit of EAP initiatives. The program allocated $2 billion over two years, targeting post-secondary institutions across Canada for deferred maintenance, repair, and expansion of projects to improve the quality of research and development and to deliver advanced knowledge and skills training. KIP was highlighted as an example of speedy implementation, complying with eligibility and legal requirements, and will be used as a best practice in the future within the Department.


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EAP: Broadband Canada: Connecting Rural Canadians

Description

As part of Canada's EAP, funding 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's 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. Broadband Canada: Connecting Rural Canadians falls under Program Activity: Community, Economic and Regional Development.

2010–11 Financial Resources ($ millions)

* $94.3 million was deferred from 2010–11 to future years to accommodate the high number of applications received, delays in the assessment and selection process, multi-year build seasons for remote locations, and additional costs of satellite bandwidth for future years. In addition, $7 million was accessed by the Atlantic Canada Opportunities Agency (ACOA) in 2010–11 to fund broadband initiatives through their Atlantic Innovation Fund. Return to text

Planned Spending Total Authorities Actual Spending
179.7 158.4 30.0*
2010–11 Human Resources (full-time equivalents)
Planned Actual Difference
25 21 4
Expected Results
Expected Result Performance Indicators Targets Performance Status

Broadband coverage extended to as many currently unserved and underserved households in Canada as possible

Percentage of contribution agreements in place that support reaching as many households as possible

100%

Performance Status:
Met All

100% of contribution agreements were signed for projects to provide broadband Internet access to approximately 210,000 households.

Since this is a new indicator, and no historical data are available, a trend analysis is not applicable for this performance result.

Performance Summary and Analysis

At the start of Broadband Canada: Connecting Rural Canadians, Industry Canada estimated that almost 445,000 unserved/underserved households in Canada were eligible for funding through the Broadband Canada: Connecting Rural Canadians initiative. Through the Broadband Canada: Connecting Rural Canadians program, 86 contribution agreements were signed to provide $112 million to projects that will bring broadband Internet access to approximately 210,000 households.

Highlights of Challenges and Risk Areas

To ensure the Broadband Canada program delivered on its mandate to provide broadband coverage to as many currently unserved and underserved households as possible, Industry Canada selected projects according to the principles of reaching as many households as possible and maximizing federal investment. All efforts were made to minimize overbuilding of existing broadband network infrastructure and/or funding areas that will be served through other initiatives. The selection process also ensured a balance between remote and rural needs. This work will continue through 2011–12.

Lessons Learned

The program was very popular, leading to a significant demand for funding and many more applications than anticipated. Unlike other EAP programs, broadband provision is not a shovel-ready proposition. Despite having an extra year, technical and market considerations slowed program roll-out. Thus the program was unable to spend funds according to projected expenditures. There is a significant need for data on broadband service at the federal, provincial and territorial levels. Coordination with other government departments, provinces and territories is critical to the success of this program. In addition, enhanced intra-departmental cooperation in the development and execution of new programs would assist in more rapid deployment. Despite many challenges, the program is rolling out successfully.

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EAP: Marquee Tourism Events Program

Description

The Marquee Tourism Events Program (MTEP) is a two-year EAP 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. MTEP falls under Program Activity: Global Reach and Agility in Targeted Canadian Industries.

2010–11 Financial Resources ($ millions)

* MTEP transferred $8 million to the Canadian Tourism Commission through the 2010–11 Supplementary Estimates to further support marketing activities in priority areas of the Canadian Tourism industry. Return to text

Planned Spending Total Authorities Actual Spending*
49.4 41.7 41.0
2010–11 Human Resources (full-time equivalents)

* In the first year of MTEP, the majority of funding announcements were made close to or after the events' start date. MTEP recruited additional staff in year two which enabled them to significantly improve the timing of funding announcements. Return to text

Planned Actual Difference
11 15 4*
Expected Results
Expected Result Performance Indicators Targets Performance Status

Existing Marquee Tourism Events will enhance their offerings and deliver world-class programs and experiences

Percentage of funded events with sustained or increased numbers of out-of country and out-of-province tourists

80%

Performance Status:
N/A

Premature to report on this performance indicator as 2010–11 economic impact studies have not been received.

Because historical data are unavailable, a trend analysis is not applicable for this performance result.

Percentage of funded events with sustained or increased tourism-related spending

80%

Performance Status:
N/A

Premature to report on this performance indicator as 2010–11 economic impact studies have not been received.

Because historical data are unavailable, a trend analysis is not applicable for this performance result.

Performance Summary and Analysis

In 2010–11, 47 events were approved for funding totalling $39,184,246. By providing targeted financial assistance to marquee tourism events, the program responded to the need for an immediate economic stimulus to the tourism sector. The objective of the program aligns with federal government priorities and is consistent with the mandate and strategic objectives of Industry Canada.

Highlights of Challenges and Risk Areas

To ensure the tourism industry was able to enhance marquee tourism event offerings and optimize use of funds within the MTEP time frame, the Department established firm deadlines to help ensure the processing of applications and contribution agreements in advance of event start dates. Industry Canada also worked with funding recipients to ensure sufficient information for performance reporting would be available by clearly articulating the reporting requirements for the program in the application processes and notifying all successful year-two funding recipients of the reporting requirements prior to the start of their events. This allowed recipients the opportunity to implement measures to collect the required data.

Lessons Learned

In the first year of the MTEP program, the majority of funding announcements were made close to or after the events start date. In year two, the timing of funding announcements with respect to event start dates improved significantly. All announcements for project funding were made on the same day (May 7, 2010). This resulted in nearly all projects receiving notification of funding approval prior to the event start dates.

Additional staff was also recruited and MTEP established a work plan with firm deadlines to process applications for approval in advance of start dates. According to the Fathers of Confederation Buildings Trust (The Charlottetown Festival) final report, dated March 2010, MTEP funding allowed the festival to hire staff to update and enhance its website.


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EAP: 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. IQC falls under Program Activity: Science and Technology, Knowledge, and Innovation are Effective Drivers of a Strong Canadian Economy.

2010–11 Financial Resources ($ millions)
Planned Spending Total Authorities Actual Spending
17.0 17.0 17.0
2010–11 Human Resources (full-time equivalents)
Planned Actual Difference
0 0 -
Expected Result
Expected Result Performance Indicators Targets Performance Status

Support the construction of a new building, the operation of the IQC and scientific outreach activities

Construction of the new IQC building completed

Completed by March 31, 2011

Performance Status:
Somewhat Met

Construction of the IQC's new facility is ongoing and was scheduled to be substantially completed by July 2011.

Because historical data are unavailable, a trend analysis is not applicable for this performance result.

Performance Summary and Analysis

In 2010–11, construction of the Institute for Quantum Computing (IQC) new facility began. The building was scheduled to be substantially completed by July 2011. The recruitment of highly qualified personnel is also ongoing, and knowledge transfer and communication activities are well advanced.

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EAP: Modernizing 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 that hosts six 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. Modernizing Federal Laboratories falls under Program Activity: Communications Research Centre Canada.

2010–11 Financial Resources ($ millions)
Planned Spending Total Authorities Actual Spending
2.2 2.2 2.2
2010–11 Human Resources (full-time equivalents)
Planned Actual Difference
0 0 -
Expected Results
Expected Result Performance Indicators Targets Performance Status

Reduce the risk of larger ad hoc repairs and ongoing repair costs

Percentage of infrastructure installed

90%

Performance Status:
Exceeded

95% of the infrastructure was installed by March 31, 2011.

Because historical data are unavailable, a trend analysis is not applicable for this performance result.

Performance Status and Analysis

Budget 2009 funding for Modernizing Federal Laboratories included $5.4 million to upgrade the Communications Research Centre Canada's (CRC) research campus in Ottawa, which hosts six government laboratories. This investment will support an increase in the output of research and development at the laboratories and improve the ability of the CRC to generate Canadian jobs in the technology sector.

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EAP: 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 two years for the CAF. In Ontario, the CAF will provide $348.9 million over two 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. CAF in Northern Ontario falls under Program Activity: Community, Economic and Regional Development.

2010–11 Financial Resources ($ millions)

* The variance between the Total Authorities and the Actual Spending is due to reprofiling of $1.9 million to 2011–12. Return to text

Planned Spending Total Authorities Actual Spending
16.3 21.2 18.7*
2010–11 Human Resources (full-time equivalents)
Planned Actual Difference
7 7 0
Expected Results

* The target was calculated in error, as one proponent submitted in person-months but listed it as person-years. This was converted to person-months resulting in a higher performance target. The conversion was corrected for the reporting of this result, which explains why the result was significantly lower. This issue has been corrected for future years. Return to text

Expected Results Performance Indicators Targets Performance Status

Support for adjustment measures in communities

Total value of investments anticipated in businesses, organization and communities

$75,469,467

Performance Status:
Mostly Met

$74.6 million was invested in Northern Ontario businesses, organizations and communities to respond to the economic downturn. The total value of investments target decreased as one project was cancelled. This is an improvement from last year's result of $70,172,142.

Number of jobs created (in person-months)

9,600*

Performance Status*:
Not Met

The number of jobs created by CAF in Northern Ontario was 4,429 person-months. This result is an improvement from the previous year's result of 1,074 jobs created.

Performance Summary and Analysis

FedNor delivered the second and final year of the CAF in Northern Ontario. FedNor supported activities that fostered restructuring, economic development, science and technology initiatives, and undertook other measures to promote economic diversification that help to create and maintain jobs in the short term or address transitional and adjustment challenges, thus yielding economic and sustainability benefits over the longer term.

Lessons Learned

As Industry Canada's main point of presence in Northern Ontario, FedNor maintains the organizational capacity and establishes networks to effectively deliver national initiatives and expanded program delivery opportunities in Northern Ontario. This framework allowed the organization to deliver the Northern Ontario portion of the CAF, a national program to provide economic stimulus to mitigate the short-term impacts of the economic downturn.

Using an existing program (NODP) and its related staff and systems, FedNor was well positioned to deliver CAF in Northern Ontario. FedNor was able to identify projects that met the eligibility criteria and objectives of CAF, develop an intake system, manage data and respond to reporting, monitoring, audit and evaluation requirements, all in a timely and effective manner.

Canada's Economic Action Plan (Continued)

EAP: Other Initiatives

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's 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. CFI falls under Program Activity: Science and Technology, Knowledge, and Innovation are Effective Drivers of a Strong Canadian Economy.

2010–11 Financial Resources ($ millions)
Planned Spending Total Authorities Actual Spending
50.0 50.0 50.0
2010–11 Human Resources (full-time equivalents)
Planned Actual Difference
0 0 -
Performance Summary and Analysis

The CFI is continuing to roll out the funding to award recipients through the 2009 Leading Edge Fund and New Initiatives Fund (LEF/NIF) competition.  The CFI has also announced all of the competitions associated with the $600 million provided in Budget 2009:

  • On July 26, 2010, the Government announced $32.5 million would support research infrastructure projects in colleges and polytechnics, enabling them to further support private sector innovation.
  • On August 6, 2010, it was announced that $182 million would support the CFI's Leaders Opportunity Fund, which is designed to help institutions attract and retain top research talent.
  • On August 26, 2010, the Government announced $200.5 million for a new LEF/NIF competition.
  • On October 22, 2010, the Government announced that $185 million would support a portion of the operating costs of select major science initiatives, to ensure that these facilities receive the support they need to remain at the leading edge of their fields and that researchers across Canada continue to have access to the latest equipment, technology and facilities.
  • On December 15, 2010, the CFI formally launched the College-Industry Innovation Fund (CIIF) competition and the Major Science Initiative competition.

Ivey Centre for Health Innovation and Leadership

Description

The Ivey Centre for Health Innovation and Leadership prepares health leaders with the skills they need to identify, assess and facilitate the adoption of innovative technologies, systems and processes that our health systems need in order to be sustainable. The Centre addresses health care's "innovation adoption deficit" and the persistent lack of highly trained and skilled leaders and change-agents able to commercialize innovation or effectively implement new systems and management processes both in the private sector and in our publicly funded health care institutions. Ivey Centre for Health Innovation and Leadership falls under Program Activity: Science and Technology, Knowledge, and Innovation are Effective Drivers of a Strong Canadian Economy.

2010–11 Financial Resources ($ millions)
Planned Spending Total Authorities Actual Spending
1.0 1.0 1.0
2010–11 Human Resources (full-time equivalents)
Planned Actual Difference
0 0 -
Performance Summary and Analysis

In 2010–11, the Ivey Centre for Health Innovation and Leadership carried out the following:

  • Educated over 400 students in the innovation adoption and commercialization of health care technologies, systems and processes via its Health Sector MBA and other academic programs;
  • Held its second annual Ivey Global Health Innovations Conference in November 2010, which was attended by over 200 participants;
  • Released three white papers on issues related to health innovation adoption, commercialization and leadership;
  • Developed partnerships with academic institutions, research institutes and industry; and
  • Completed 1 demonstration project whereby health innovations are tested in real-world settings and 13 health innovation projects (e.g., Ivey Consulting and New Venture Projects).

The Ivey Centre for Health Innovation and Leadership is currently developing six case studies that explore issues in health innovation adoption and commercialization and that will be used for practical applications and decision making in the health care community.

For more information, please visit Ivey Centre for Health Innovation and Leadership website.

Canada Business Network

Description

The Canada Business Network's (CBN) objective is to provide business with the resources needed to grow and prosper, including a wide range of information on Government services, programs and regulations. It promotes entrepreneurship and innovation, and provides assistance through an organized network of service centres across Canada. CBN falls under Program Activity: Marketplace Frameworks and Regulations.

2010–11 Financial Resources ($ millions)*

* The program received funding from the EAP; however, CBN is an ongoing program. Return to text

Planned Spending Total Authorities Actual Spending
1.0 1.0 1.0
2010–11 Human Resources (full-time equivalents)
Planned Actual Difference
27 34 7
Performance Summary and Analysis

For more information on CBN and its performance results, please refer to the Entrepreneurial Economy program activity under Industry Canada's Strategic Outcome 3: Competitive Businesses are Drivers of Sustainable Wealth Creation.


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Section 3: Supplementary Information

Financial Highlights

Condensed Statement of Financial Position
As at March 31
(in thousands of dollars) % Change 2011 2010
(Restated) 
Assets
Financial assets -41 783,030 1,318,021
Non-financial assets -3 98,334 101,292
Total -38 881,364 1,419,313
Liabilities
Accounts payable and accrued liabilities -50 437,258 686,844
Deferred revenue -14 3,775,636 4,376,729
Other liabilities -2 512,910 523,182
Total liabilities -18 4,725,804 5,768,755
Equity -12 (3,844,440) (4,349,442)
Total -38 881,364 1,419,313
Condensed Statement of Operations
For the period ended March 31
(in thousands of dollars) % Change 2011 2010
(Restated) 
Expenses
Transfer payments -14 1,329,185 1,549,602
Operating expenses -4 800,884 832,053
Total expenses -11 2,130,069 2,381,655
Revenues
Sales of services 0 1,109,189 1,103,940
Other -13 16,581 19,156
Total revenues 0 1,125,770 1,123,096
Net cost of operations -20 1,004,299 1,258,559

Financial Highlights Charts/Graphs and Summary of 2011 Financial Results

The financial results presented in Industry Canada financial statements are shaped by the three strategic objectives that aim to help make Canadian industry more productive and competitive in the global economy, thus improving the economic and social well-being of Canadians.

In 2010–11, Industry Canada continued to manage numerous stimulus grants and contributions projects through Canada's Economic Action Plan and maintained an increased level of transfer payment expenses when compared with historic departmental levels. The Government of Canada announced a set of initiatives aimed at providing a quick recovery from the economic downturn and at improving access to financing, supporting small businesses, helping municipalities build stronger communities through investments in infrastructure, and providing short-term support for key industrial and commercial sectors.

Effective August 13, 2009, responsibility for the Southern Ontario Regional Economic Development Branch was transferred to the newly created Federal Economic Development Agency for Southern Ontario in accordance with Order-in-Council P.C. 2009–1411, including the stewardship responsibility for the assets and liabilities related to the program. Due to the timing and the logistical requirements for creating a new entity, the Federal Economic Development Agency for Southern Ontario remained consolidated within Industry Canada's financial records for the purpose of Public Accounts reporting until March 31, 2010. Fiscal year 2009–10 as reported here has been restated to reflect the transfer of assets and liabilities to the Federal Economic Development Agency for Southern Ontario as at August 13, 2009.

Assets

Assets by type

Assets by type (the long description is located below the image)
Long description
Assets by type
Loans 48%
Due from Consolidated Revenue Fund 36%
Tangible Capital Assets 11%
Accounts Receivable 5%

Total assets were $881 million for 2010–11, a decrease of $652 million (43 percent). This decrease can be mostly attributed to the changes in the Due from Consolidated Revenue Fund account, which is dependent on year-end payable levels in the Department. It is a representation of the funds the Department has access to for discharging its liabilities without requiring further parliamentary approvals. There was an increase in loans provided during the year for approximately $60 million but an overall decrease in net loans. The increase in loans can be partially attributed to the Industrial Technologies Office (ITO), which provided loans through the SADI program to seven new competitive projects with aerospace and defence (A&D) firms. These projects helped foster collaboration in R&D between firms and academia across the country, including the University of British Columbia, Université Laval and École Polytechnique de Montréal. The overall decrease in net loans is the result of large unconditionally repayable contributions reaching the end of their work phase under the Strategic Industrial Projects program. When reaching this phase, non-interest-bearing loans carry discounts so that the net loans on the departmental financial statements represent their approximate market value.

Liabilities

Liabilities by type

Liabilities by type (the long description is located below the image)
Long description
Liabilities by Type
Deferred Revenue 80%
Other Liabilities 11%
Account Payable and Accrued Liabilities 9%

Total liabilities were $4.72 billion for 2010–11, a decrease of $1.04 billion (18 percent). Accounts Payable decreased by 50 percent this fiscal year, a decrease that can be attributed to timing differences for large grants and contributions payments during this fiscal year compared with last. Payment requisitions made near year-end in 2009–10 for some large stimulus contribution programs inflated the account. Contributing to this decrease in liabilities was a decrease in deferred revenue for $600 million. Much of this decrease is the recognition of radio spectrum licences sold in the 2 GHz range by auctions in prior fiscal years and recognized as revenue over the period of the licence. Radio licences are managed by the Marketplace Frameworks and Regulations for Spectrum, Telecommunications and the Online Economy.

Expenses

Expenses by type

Liabilities by type (the long description is located below the image)
Long description
Expenses by Type
Transfer Payments 63%
Salaries and Employee Benefits 26%
Other Operating Expenditures 11%

Total expenses were $2.13 billion in 2010–11, a decrease of $252 million (11 percent). While the level of transfer payment expenses was, for the second straight fiscal year, higher than normal for the Department, a decrease in payments made under Canada's Economic Action Plan explains the reduction in expenses year-over-year. Program expenses reduced this fiscal year by approximately $245 million for the Knowledge Infrastructure Program (costs for the program remain estimated at $2 billion overall for the program) under Canada's Research and Innovation Capacity. The program was extended one fiscal year with the remaining $245 million in funding transferred to the next fiscal year. This program was designed to enhance infrastructure to Canadian colleges and universities. Several other transfer payment programs with prior year expenses of approximately $208 million were removed from the departmental reporting structure as FedDev Ontario became an independent organization in 2009–10. This includes programs such as the Community Adjustment Fund, the Ontario Potable Water Program, the Southern Ontario Development Program and the Recreational Infrastructure Canada Program. These reductions are reflected in the departmental financial statements as adjustments to the prior fiscal year. Operating expenses for the Department have remained in the $800-million range and have decreased slightly with the transfer out of FedDev Ontario and with a departmental reduction in professional service spending.

Revenue

Revenue by Type

Revenue by Type (the long description is located below the image)
Long description
Revenue by Type
Radio Spectrum Licences 74%
Other Sales of Services 25%
Other Revenues 1%

Total revenues were $1.13 billion in 2010–11, an increase of approximately $3 million and consistent with reported revenues in 2009–10. The majority of reported revenue in the departmental financial statements is attributed to the recognition of radio spectrum revenue managed by the Marketplace Frameworks and Regulations for Spectrum, Telecommunications and the Online Economy. This type of revenue reflects the recognition of radio spectrum auction licence fees received in prior fiscal years, particularly, $4.26 billion received and deferred in 2008–09 for the 2 GHz range. Other sales of services represent legislative fees and registrations through organizations such as Corporations Canada ($12 million), the Office of the Superintendent of Bankruptcy ($46 million), Competition Bureau ($22 million) and Measurement Canada ($1 million), who report under Marketplace Frameworks and Regulations.

Financial Statements

The financial highlights presented within this DPR are intended to serve as a general overview of Industry Canada's financial position and operations. The Department's financial statements can be found at ic.gc.ca/eic/site/icgc.nsf/eng/06765.html.

List of Supplementary Information Tables

All electronic supplementary information tables found in the 2010–11 Departmental Performance Report can be found on the Treasury Board of Canada Secretariat's website.


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Section 4: Other Items of Interest

4.1. Organizational Contact Information

We welcome your comments on this report by email to ic.info-info.ic@canada.ca, by fax to 613-957-6543 or by mail to:

Planning, Performance and Reporting Group
Comptrollership and Administration Sector
Industry Canada
235 Queen Street
2nd Floor, East Tower
Ottawa ON K1A 0H5

4.2 Information Management and Information Technology Governance (IM/IT) and Responsibilities at Industry Canada

Industry Canada has a broad mandate, with responsibility for more than 50 pieces of legislation and more than 80 programs and initiatives that involve all levels of government and multiple stakeholders. It is a complex, knowledge-based environment in which employees rely on sound and efficient information management (IM) and information technology (IT) to perform their duties and deliver the Department's programs and services. As a result, the IM and IT environments within Industry Canada have a direct impact on the efficiency, effectiveness and overall perception of the Department.

The management of information at Industry Canada is guided by the Department's Information Management Agenda that seeks to establish effective IM governance, a well-informed and well-trained workforce, and suitable tools and infrastructure to support corporate information needs and business outcomes.

The establishment of effective IM governance in 2010–11 focused on continued implementation of the Department-approved IM Governance and Accountability Framework. Committee structures were established to oversee the long term development of information architecture and its integration into the technical and business infrastructures of the Department. Development of a well-informed and well-trained workforce continued: Information Administrator positions, based on generic work descriptions, were staffed in business lines; networks and Communities of Practice were established to support the exchange of information and best practices. The development of IM infrastructure progressed with the establishment and use of information principles to develop of IM requirements for departmental projects. Finally, provision of IM tools has continued with the initial implementation of the business-specific layer of the Department's Business-Based Classification Structure (BCS), and of an Electronic Document and Records Management System (EDRMS) cluster project, in preparation for an enterprise EDRMS deployment.

The IM Agenda continues to support the full integration of IM into departmental business processes and to confirm IM's place as a critical enabler for Industry Canada.

Industry Canada's project management and governance processes continued to mature in 2010–11. Over this period, a departmental Project Portfolio Management system was implemented to support the Department's governance and project management processes. In addition to providing improved information for investment decision making, the system enables executives and project managers to monitor project status and to track benefits in a more comprehensive manner. The system is also used to produce regular reports on project status and benefits for the Deputy Minister's review.

Industry Canada's Information Management Branch (IMB) and Chief Informatics Office (CIO), both located in the Small Business and Marketplace Services Sector, are responsible for directing and supporting the management of corporate information and managing technology requirements.


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Section 4: Other Items of Interest

4.3 Expected Results Information for Program Sub-Activities and Sub-Sub-Activities by Strategic Outcomes

Performance Status Legend

Exceeded: More than 100 percent of the expected level of performance (as evidenced by the indicator and target or planned activities and outputs) for the expected result identified in the corresponding RPP was achieved during the fiscal year.

Met All: 100 percent of the expected level of performance (as evidenced by the indicator and target or planned activities and expected outputs) for the expected result identified in the corresponding RPP was achieved during the fiscal year.

Mostly Met: 80 to 99 percent of the expected level of performance (as evidenced by the indicator and target or planned activities and expected outputs) for the expected result identified in the corresponding RPP was achieved during the fiscal year.

Somewhat Met: 60 to 79 percent of the expected level of performance (as evidenced by the indicator and target or planned activities and outputs) for the expected result identified in the corresponding RPP was achieved during the fiscal year.

Not Met: Less than 60 percent of the expected level of performance (as evidenced by the indicator and target or planned activities and outputs) for the expected result identified in the corresponding RPP was achieved during the fiscal year.

Canada's Economic Action Plan (EAP)

The following EAP initiatives have been transferred to the Federal Economic Development Agency for Southern Ontario (FedDev Ontario):

  • Eastern Ontario Development Program
  • Canada-Ontario Municipal Rural Infrastructure Program
  • Ontario Municipal Rural Infrastructure Top-Up Program
  • Ontario Potable Water Program
  • Brantford Greenwich-Mohawk Remediation Project
  • Canada Strategic Infrastructure Program
  • Building Canada Program

For more information on other EAP initiatives, please visit Industry Canada's main DPR book. These initiatives are the following:

  • Knowledge Infrastructure Program
  • Broadband Canada: Connecting Rural Canadians
  • Marquee Tourism Events Program
  • Institute for Quantum Computing
  • Modernization of Federal Labs
  • Community Adjustment Fund in Northern Ontario

 Strategic Outcome 1: The Canadian Marketplace is Efficient and Competitive

1.1 Marketplace Frameworks and Regulations
1.1.1 Measurement Canada

Description: This special operating agency ensures the integrity and accuracy of goods and services bought and sold on the basis of measurement in Canada. It protects Canadians against financial loss due to inaccurate measurement and maintains the confidence of consumers and businesses in measurement-based financial transactions (trade measurement) by ensuring that devices (e.g., scales, gas pumps, and electricity and natural gas meters) sold for use in Canada meet the legislative standards for accuracy and performance, and by ensuring the detection and the repair or correction of defective measuring devices and unfair measurement practices in the Canadian marketplace.

1.1.1 Measurement Canada
Expected Result Performance Indicator Target Performance Status
Fair and accurate trade measurement in Canada Number of marketplace sectors where compliance improvement strategies and complaint investigation services result in improved consumer protection against financial losses resulting from inaccurately measuring devices or unfair measurement practices 10 Performance Status:
Met All

Measurement Canada increased its inspection presence and detection and correction of inaccurate measurement in 10 sectors: fish, waste collection, forest product, food and beverage, fruit and vegetable, precious metal and stones, chemical products, general merchandise, livestock and poultry, and grain and field crop sectors. This result is improving from the previous year's result of 3 compliant sectors.

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 Performance Status:
Met All

10 sectors, including the retail petroleum, retail food, logging, grain and field crop, dairy, fruit and vegetable, hardware store, transportation, waste disposal, downstream petroleum and mining sectors. This is a new indicator; therefore a trend analysis could not be conducted due to lack of historical data.

1.1.2 Superintendent of Bankruptcy

Description: This provisional special operating agency provides leadership in protecting the integrity of the bankruptcy and insolvency system by supervising the administration of all estates and matters that fall under insolvency legislation, for the benefit of investors, lenders, consumers and the general public.

1.1.2 Superintendent of Bankruptcy
Expected Result Performance Indicator Target Performance Status
Estates are supervised and administered in a timely fashion Percentage of consumer bankruptcy files not older than 3 years 90% Performance Status:
Exceeded

91% of summary filings (as defined by the Bankruptcy and Insolvency Act) are not older than 3 years. There has been no change in performance results from the previous year.

Percentage of commercial bankruptcy files not older than 3 years 60% Performance Status:
Mostly Met

56% of ordinary filings (as defined by the Bankruptcy and Insolvency Act) are not older than 3 years. This result is declining from the previous year's result of 59%.

It is important to note that, while Office of the Superintendent of Bankruptcy (OSB) supervises the administration (thus closing) of the files, private sector trustees administer and ultimately close the files. Closing of files has been impacted by the 2009 legislative amendments that resulted in the delays in receiving the post-bankruptcy tax refunds. This trend is expected to correct itself by next year. The OSB continues to monitor the situation closely through its Annual Banking Review reports and its Trustee Compliance programs and can take action with individual trustees where warranted.

Percentage of banking reports received from trustees analyzed by the Office of the Superintendent of Bankruptcy (OSB) within 3 months of receipt 90% Performance Status:
Exceeded

100% of banking reports received from trustees were analyzed by the OSB within 3 months of receipt. There has been no change in performance results from the previous year.

1.1.3 Corporations Canada

Description: This program is in charge of administering the Canada Business Corporations Act (CBCA), the Canada Corporations Act (CCA), the Boards of Trade Act (BOTA), the Canada Cooperative Associations Act (CCAA) and several other corporate laws governing federal companies (with the exception of financial intermediaries). It also issues and registers official documents under the Great Seal of Canada. The program's main lines of business include incorporation and related services (such as amalgamation or corporate charter amendments), dissolution of corporations, ruling on the use of corporate names, collection and dissemination of information on federal companies, and compliance and enforcement activities related to the statutes that it administers.

1.1.3 Corporations Canada
Expected Result Performance Indicator Target Performance Status
Federally incorporated companies are compliant with corporate laws and regulations Percentage of federally incorporated corporations that comply with statutory filing requirements 80% Performance Status:
Exceeded

82% of active CBCA corporations filed an annual return as required. This result is improving from the previous year's result of 81.4%.

Businesses have timely and reliable access to incorporation services and information Percentage of published Corporations Canada's service standards that are met or exceeded 90% Performance Status:
Exceeded

Service standards met or exceeded 96% of the time. This result is improving from the previous year's result of 94.6%.

Corporations Canada key incorporations services are available/delivered to businesses electronically Percentage of transactions completed online for key services 85% Performance Status:
Exceeded

95% of transactions were completed online. This result is improving from the previous year's result of 92.4%.

1.1.4 Paperwork Burden Reduction

Description: This program raises awareness about the burden that complying with government regulations imposes on small and medium-sized businesses, uses evidence-based research and analysis to draw conclusions about the impact of said compliance on competitiveness, and proposes ways to reduce it. This program supports the horizontal initiative on Paperwork Burden Reduction.

1.1.4 Paperwork Burden Reduction
Expected Result Performance Indicator Target Performance Status
The government will obtain advice from stakeholders on paperwork burden reduction Number of briefings sent to the Minister containing advice provided by the stakeholders on how to reduce paperwork burden 2 Performance Status:
Not Met

There was 1 briefing sent to the Minister on this subject. This is a new indicator; therefore a trend analysis could not be conducted due to lack of historical data.

Stakeholder views on paperwork burden were submitted to the Red Tape Reduction Commission via its online consultations or during the cross-country consultations that took place from February to March 2010. The stakeholders' consultation on paperwork burden was conducted by the Commission instead of the Paperwork Burden Reduction Initiative. This caused a reallocation of resources and resulted in 1 less briefing. The trend should self-correct in following years.

1.1.5 Investment Review

Description: The purpose of the Investment Canada Act is to encourage Canadians and non-Canadians to invest in Canada and contribute to economic growth and employment opportunities. It also provides for the review of significant investment in Canada by non-Canadians. Because of this, the program aims to ensure that foreign investors seeking to acquire control of Canadian businesses demonstrate that their investments are likely to be of net benefit to Canada. The program accomplishes the administration of the Act by processing notifications filed by investors, completing reviews of transactions in accordance with the Act and providing a recommendation to the Minister to assist him/her in the net benefit determination.

1.1.5 Investment Review
Expected Result Performance Indicator Target Performance Status
Timely processing of foreign investment notifications and applications for review filed by foreign investors under the Investment Canada Act Median time required to certify notifications and process applications Notification: 5 days Performance Status:
Exceeded

Median time of 4 days required to certify notifications in 2010–11. This result is improving from the previous year's result of 5 days.

Application: 55 days Performance Status:
Somewhat Met

Median time of 69 days required to process applications in 2010–11. This result is improving from the previous year's result of 70 days.

1.1.6 Canadian Intellectual Property Office (CIPO)

Description: This program administers Canada's system of intellectual property (IP) rights, namely patents, trademarks, copyright, 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. This program is entirely financed through a revolving fund; 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.

1.1.6 Canadian Intellectual Property Office (CIPO)
Expected Result Performance Indicator Target Performance Status
The delivery and quality of CIPO's services respond to client needs and expectations Percentage of overall satisfaction of clients with CIPO's services 80% Performance Status:
Mostly Met

74% of clients were satisfied or very satisfied with CIPO's services (National Client Satisfaction Survey 2008). No additional survey has been conducted. Due to lack of data, a trend analysis could not be conducted this year.

Increased awareness and use of intellectual property (IP) by SMEs Percentage awareness and use of IP by SMEs 40% Performance Status:
Mostly Met

36% of SMEs were familiar with IP in 2006–07. No additional survey has been conducted. Due to lack of data, a trend analysis could not be conducted this year.

1.1.7 Internal Trade Secretariat

Description: The Agreement on Internal Trade (AIT) is an intergovernmental trade agreement signed by Canadian First Ministers that came into force in 1995. Its purpose is to reduce and eliminate, to the extent possible, barriers to the free movement of persons, goods, services and investment within Canada and to establish an open, efficient and stable domestic market. The Internal Trade Secretariat provides administrative and operational support to the Committee on Internal Trade, to its Chair and to other committees or working groups under the Agreement or by the committee, and it works closely with government officials to ensure the effective implementation of the Agreement. The Secretariat supports the Committee on Internal Trade in preparing the reports, compiling and disseminating information from parties, and ensuring appropriate support for the dispute resolution process. As a neutral third party, the Secretariat has facilitated ongoing negotiations to broaden and deepen the scope of the Agreement. The work requires close and continuous contact with federal-provincial-territorial governments to facilitate the smooth and effective operation of the committees and sub-committees. The Secretariat plays an important role in assisting parties to fully implement the Agreement, pursuing the negotiations mandated by the Agreement and completing the outstanding obligations in the Agreement. All parties share the operating costs of the Secretariat. The federal government's share is 50% of the budget of the Secretariat. The mechanism for funding is a grant paid by Industry Canada.

1.1.7 Internal Trade Secretariat
Expected Result Performance Indicator Target Performance Status
The Committee on Internal Trade receives quality service from the Internal Trade Secretariat Percentage of stakeholders satisfied with services provided by the Internal Trade Secretariat 90% Performance Status:
Exceeded

An evaluation of the ITS was conducted in 2011 and included interviews with several relevant federal stakeholders. These interviews showed that all respondents (100%) were satisfied with the overall performance of the ITS. This is a new indicator; therefore a trend analysis could not be conducted due to lack of historical data.


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Section 4: Other Items of Interest

4.3 Expected Results Information for Program Sub-Activities and Sub-Sub-Activities by Strategic Outcomes

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

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.

1.2.1 Spectrum/Telecommunications Program (Operations and Engineering)
Expected Result Performance Indicator Target Performance Status
An up-to-date and appropriate domestic and international, regulatory framework and operational policies, for the governance of Canada's radiocommunications and telecommunications infrastructure to promote a competitive marketplace for telecoms and radiocom services and equipment Percentage of planned initiatives providing access to new wireless services, equipment and technology and improving access for existing services that are started or completed 80% Performance Status:
Exceeded

100% of identified initiatives were completed. A trend analysis is not applicable as information from year to year is not correlated, as planned initiatives may not be weighted equally.

Examples of performance include:

  • All radio, TV and cable applications were processed in accordance with processing standards.
  • More than 4,100 certifications, notifications, reassessments and registrations of radio and terminal equipment were performed as per service performance standards.
1.2.1.1 International Telecommunication Union Participation Program (ITU)

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.

1.2.1.1 International Telecommunication Union Participation Program (ITU)
Expected Result Performance Indicator Target Performance Status
Canadian interests are reflected in United Nations/ International Telecommunication Union operational procedures Percentage of International Telecommunication Union operational instruments and procedures that are responsive to Canadian interests and objectives 100% Performance Status:
Met All

Successfully represented, defended, and promoted 100% of Canadian interests at International Telecommunication Union Standardization Sector and aligned regional interests with the Organization of American States Secretariat of the Inter-American Telecommunication Commission.
There has been no change in performance results from previous year.

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, agreements, technical standards and regulations, and through 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 licensing of the radio spectrum.

1.2.1.2 Spectrum/Telecommunications Management and Regulations
Expected Result Performance
Indicator
Target Performance
Status
Policies, regulations, standards and procedures are in place to enable the introduction of new radiocommunications/ telecommunications technologies, equipment and services Percentage of planned telecommunications and radiocommunication equipment and services or applications introduced in the marketplace (e.g., number of licensing initiatives, number of frequency bands, number of technical regulations/standards, and number of public consultations), that are started or completed 80% Performance Status:
Exceeded

100% of planned telecommunications and radiocommunications services or applications introduction to the marketplace were completed. A trend analysis is not applicable as information from year to year is not correlated, as planned initiatives may not be weighted equally.

Examples of performance include:

  • Renewal Process for Cellular and Personal Communications Services Spectrum Licences, which begin expiring on March 31, 2011, as well as the applicable conditions of licence have been completed and were published in March 2011.
  • Conclusion of competitive licensing process for two 17 GHz satellite licences.
  • Updated test methods for Parts II, VI and VII of Compliance Specification (CS)-03 (CS-03:  Compliance Specification for Terminal Equipment, Terminal Systems, Network Protection Devices, Connection Arrangements and Hearing Aids Compatibility).
  • Release of a new issue of Certification Bodies (CB)-02 procedure for certification bodies to include improved market surveillance requirements and new scopes of accreditation for radio equipment (CB-02:  Recognition Criteria, and Administrative and Operational Requirements Applicable to Certification Bodies for the Certification of Radio Apparatus to Industry Canada's Standards and Specifications).
During times of emergency, telecommunications services are available on a priority basis to first responders followed by Canadians generally Percentage of planned services/programs to alleviate network congestion during emergency (spectrum for public safety agencies, priority services, participation in the planning of drills/exercises, meetings/forums with telecom industry, government and associations), that are started or completed 80% Performance Status:
Exceeded

100% of planned services/programs to alleviate network congestion during emergency were completed. A trend analysis is not applicable as information from year to year is not correlated, as planned initiatives may not be weighted equally.

Examples of performance include:

  • Termination of Priority Access Dialling in January 2011.
  • Examining the feasibility of developing Wireless Priority Services and implementation of a high-probability-of-completion regime, given the new 4th generation wireless technologies and intellectual property-based telecommunications networking that are coming online.
Canadian interests and requirements pertaining to radiocommunications and telecommunication are reflected in international agreements and standards Percentage of planned new/modified Mutual Recognition Agreements (MRAs), International Telecommunication Union (ITU) standards/ recommendations, and Canada/U.S. agreements that are started or completed 80% Performance Status:
Met All

80% of planned new/modified MRAs, ITU standards/ recommendations, and Canada/U.S. agreements are started or completed. A trend analysis is not applicable as information from year to year is not correlated, as planned initiatives may not be weighted equally.

Examples of performance include:

  • Developed 3 cross-border frequency agreements (treaties) with the U.S. for commercial and public safety services in the 700 MHz and 800 MHz bands.
  • Advanced the negotiation of a Canada-Mexico MRA for telecommunications equipment and reached a final draft English text.
  • Advanced the negotiation of a Canada-Israel MRA for telecommunications equipment and reached a final draft English text.
  • Advanced the negotiation of a Memorandum of Understanding on market surveillance collaboration with Europe and the U.S.
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.

1.2.1.3 Regional Operations—Spectrum
Expected Result Performance
Indicator
Target Performance Status
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 Percentage of licence applications processed within service standards 90% Performance Status:
Exceeded

The national service standards were met at 96.5%. Target was again exceeded at 96.5%, similar to last year at 98.1%.

Percentage of clients who indicate that they are satisfied with the services provided by Regional Offices 80% Performance Status:
Not applicable

Last survey took place in 2005 and showed that 79% of our clients were satisfied with the service provided. No additional survey has been conducted. A trend analysis is currently not applicable to this indicator as data are not available for this year.

Compliance with rules and conditions for the use of spectrum Percentage of radiocommunications investigations completed within service standards (12 weeks) 90% Performance Status:
Exceeded

Radiocommunications investigations service standards were met at 95%. Target was again exceeded at 95%, similar to last year at 96%.

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.

1.2.2 Electronic Commerce
Expected Result Performance Indicator Target Performance Status
Personal information and security, and Internet-based trade and commerce, are protected and enhanced Number of planned initiatives that provide increased privacy protection and a more secure environment for online trade 2 Performance Status:
Exceeded

3 initiatives that provide increased privacy protection and a more secure environment for online trade were undertaken. This is a new indicator; therefore a trend analysis could not be conducted due to lack of historical data.

Examples of performance include:

  • Canada's Anti-Spam Legislation (Bill C-28) received Royal Assent on December 15, 2010.
  • Personal Information Protection and Electronic Documents Act amendments (Bill C-29) were at second reading at the dissolution of Parliament for the 2011 election.
  • C-28, Sections 82 through 87, has been enacted through an Order-in-Council. These amendments allow the Privacy Commissioner of Canada to cooperate with counterparts and target financial and human resources more effectively by granting the Commissioner investigatory discretion.
Canadians are aware and make use of e-commerce tools and applications Percentage of improvement by March 31, 2011, of rates of adoption of e-commerce tools and applications (compared to 2006–07 level) 20% Performance Status:
Not applicable

Statistics Canada released household Internet adoption data from the Canadian Internet Use Survey (CIUS) on May 25, 2011. Data on individual Internet adoption will be released in Fall 2011 and will enable comparison between previous releases of the CIUS. A trend analysis is currently not applicable to this indicator as data are not available for this year.

1.3 Consumer Affairs Program

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 in 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, to confirm content and to disseminate outputs.

1.3.1 Consumer Information
Expected Result Performance Indicator Target Performance Status

* The large variance is due to increased media outreach efforts (4 waves of distinct media outreach efforts in 2010–11 versus 1 wave in 2009–10).

Office of Consumer Affairs (OCA) provides consumers with relevant consumer information and tools to make well-informed decisions in the marketplace Number of new consumer information products published per year 3 Performance Status:
Exceeded

OCA published 10 new consumer products in 2010–11. This result is improving from the previous year's result of 9 consumer information products.

Examples of performance include:

Percentage of increase in the number of media stories referencing OCA communications products per year 2% Performance Status:
Exceeded

OCA's programs, products or services were referenced in 318 media articles, websites or television programs resulting in a 511.5%* increase in the number of media stories referencing OCA communication products. This result is improving from the previous year's result: a decrease of 71%* and 52 media articles.

Number of communications activities deployed in partnership with horizontal partners per year 1 Performance Status:
Exceeded

In total, 9 communications activities were deployed in partnership with other federal departments and agencies in 2010–11. This result is improving from the previous year's result of 6 communication activities.

1.3.2 Consumer Policy and Non-Profit Consumer and Voluntary Organizations Contributions Program

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 among governments, both domestically and internationally. It provides contribution funding to not-for-profit consumer and voluntary organizations to encourage them to reach financial self-sufficiency and to assist them in providing meaningful, evidence-based input to public policy in the consumer interest.

1.3.2 Consumer Policy and Non-profit Consumer and Voluntary Organizations Contributions Program
Expected Result Performance Indicator Target Performance Status
Collaborative consumer research and analysis contribute to federal, provincial and territorial government policy decision making Number of instances per year where collaborative consumer research and/or analysis under Chapter 8 of the Agreement on Internal Trade contributes to inter-governmental policy discussions 2 Performance Status:
Exceeded

In 2010–11, there were 3 instances of collaborative consumer research and/or analysis. There has been no change in performance results from the previous year.

Examples of performance include:

  • Manitoba was designated for the purposes of the criminal interest provisions of the Criminal Code, following final approval by the Governor-in-Council of an Order making that designation.
  • A proposed Order Designating Saskatchewan for the Purposes of the Criminal Interest Provisions of the Criminal Code was pre-published in Part 1 of the Canada Gazette in December 2010.  With pre-publication, the federal government invited interested parties to provide comments on the proposed order.  That comment period closed in January 2011, and officials proceeded to prepare recommendations for Governor-in-Council consideration of final approval of the Order in 2011–12.
  • Federal/provincial/territorial officials presented to Deputy Ministers Responsible for Consumer Affairs a set of proposals for harmonization of credit reporting laws in Canada. These officials also reported on best practices in regulatory compliance with respect to consumer protection laws.
Number of consumer research projects per year funded through the Office of Consumer Affairs (OCA) Contributions Program 25 Performance Status:
Mostly Met

23 research projects were funded in 2010–11. This result is declining from the previous year's result of 28 research projects.

Number of projects per year funded through the OCA 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 Performance Status:
Exceeded

9 development projects were funded and completed in 2010–11. This result is improving from the previous year's result of 7 projects funded. Of those 9 projects, 4 supported strengthening the organizations' capacity to work collaboratively in the interest of Canadian consumers, while 5 projects supported strengthening the organizations' capacity to diversify revenue sources and increase their level of self-sufficiency.

1.4 Competition Law Enforcement and Advocacy

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.

1.4.1 Competition Law Enforcement
Expected Result Performance Indicator Target Performance Status

* The variation reflects, in part, a change in strategic direction with a more focused approach on fewer cases yielding larger market and economic impacts. (Return to reference *)

Companies/individuals cease their anti-competitive conduct following compliance interventions conducted by the Competition Bureau Percentage of recidivists or relapse of individuals into anti-competitive behaviour (for example: bid-rigging, price fixing and mass marketing fraud) following a Bureau intervention 5% Performance Status:
Exceeded

In 2010–11, there was a 0% recidivist/relapse rate. There has been no change in performance results from previous year.

Percentage is calculated using the number of parties against whom the Bureau 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%.

  • Criminal Matters Branch: 0%
  • Fair Business Practices Branch: 0%
Number of companies and individuals that change behaviour as a result of a Bureau compliance intervention 40 Performance Status:
Exceeded

In 2010–11, 75 companies or individuals changed their behaviour. This result is declining from the previous year's result of 193 companies.*

This number is calculated using Number of Alternative Case Resolutions, Consent Prohibition Orders, Convictions, Consent Agreements and s. 74.1 Orders (companies and individuals).

  • Civil Matters Branch: 2
  • Fair Business Practices Branch: 29
  • Mergers Branch: 5
  • Criminal Matter Branch: 39
Canadians recognize that anti-competitive activity is unlawful and harmful Number of immunity applicants 10 Performance Status:
Exceeded

In 2010–11, there were 11 immunity applicants. This result is declining from the previous year's result of 15 immunity applicants.

Under the Bureau's 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.

  • Fair Business Practices Branch: 0
  • Criminal Matters Branch: 11
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.

1.4.2 Advocacy in Favour of Market Forces
Expected Result Performance Indicator Target Performance Status
Removal of unnecessary regulation and no implementation of new restrictions on competition Number of market restrictions removed 3 Performance Status:
Met All

There were 3 market restrictions removed in 2010–11. This result is declining from the previous year's result of 4 market restrictions removed.

Examples of performance include

  • Generic Drugs:  British Columbia, Alberta and Ontario reduced the maximum prices that they will pay for generic drugs, citing Bureau studies that showed large rebates being paid by generic drug manufacturers to pharmacies.  Annual cost savings to public and private drug plans and persons paying for medication out of their own pockets are estimated at $380 million for British Columbia alone.
  • Advertising and Marketing Restrictions on Lawyers and Accountants:  A number of provincial law and accounting associations have revised the model marketing and advertising rules developed by their respective national associations to take into account competition principles as outlined in the Competition Bureau 2007 study, Self-regulated professions: Balancing competition and regulation.  These revisions eliminate various unnecessary restrictions on advertising and marketing by members of these professions.
  • Optometry: On May 1, 2010, regulatory changes in British Columbia took effect that removed restrictions preventing retailers from supplying eyeglasses and replacement contact lenses.  The regulatory changes also loosened scope-of-practice restrictions by permitting opticians — as opposed to optometrists and ophthalmologists only — to perform certain sight tests (i.e., refractions).  Various other market restrictions on professions that were removed in 2010–11 are outlined in the forthcoming Competition Bureau Report Self-regulated professions: Post-study assessment.

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Section 4: Other Items of Interest

4.3 Expected Results Information for Program Sub-Activities and Sub-Sub-Activities by Strategic Outcomes

Strategic Outcome Strategic Outcome 2: Science and Technology, Knowledge, and Innovation are Effective Drivers of a Strong Canadian Economy

2.1 Canada's Research and Innovation Capacity
2.1.1 Government Science and Technology (S&T) Policy Agenda

Description: This program supports science, technology and innovation to improve Canada's research and development capacity. This includes positioning science and technology (S&T) and innovation in the context of government policy announcements; and 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 Canada Foundation for Innovation (CFI), the Canadian Institute for Advanced Research (CIFAR), CANARIE, the Council of Canadian Academies (CCA), Genome Canada, the Pierre Elliott Trudeau Foundation (PET), Perimeter Institute, Precarn, and 7 centres of excellence. These are the Brain Research Centre, the Canada School of Energy and Environment, the Heart and Stroke Foundation Centre for Stroke Recovery, the Life Sciences Research Institute, the Li Ka Shing Knowledge Institute, the Montreal Neurological Institute, and the National Optics Institute.

2.1.1 Government Science and Technology (S&T) Policy Agenda
Expected Result Performance Indicator Target Performance Status
Effective, aligned and coordinated investment in R&D activities and infrastructure; highly qualified personnel development; innovation support; and R&D commercialization 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 Performance Status:
Exceeded

In total, Industry Canada produced 12 reports on domestic and international S&T data for internal use or for industry, academia and related stakeholders. This result is declining from the previous year's result of 14 reports and/or consultations.

Percentage of foundations that comply with their funding agreement 100% Performance Status:
Mostly Met

All 17 foundations (88%) were in compliance with their funding agreement. There has been no change in performance results from previous year.

Science and technology policies in the federal government that promote world-class excellence, further collaborations, and enhance partnerships with federal S&T community and other key players that support Canada's domestic and international S&T 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 Performance Status:
Exceeded

Working with partners in the academic community and other stakeholders in government, industrial and non-profit sectors, 4 research projects to provide empirical support for policies and programs related to S&T in Canada were completed. There has been no change in performance results from previous year.

2.1.2 Science, Technology and Innovation Council Secretariat

Description: This program 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.

2.1.2 Science, Technology and Innovation Council Secretariat
Expected Result Performance Indicator Target Performance Status
High-quality research, analytic, communications and administrative services of the Science, Technology and Innovation Council (STIC) Secretariat advance the Council's work, leading to informed advice on science, technology and innovation (ST&I) to the government. Number of advice letters and background documents the Secretariat prepares for the Council and its working groups to advance their deliberations on ST&I issues 4 Performance Status:
Mostly Met

In 2010–11, there were 3 documents prepared. STIC provides its confidential advice in response to specific charges from the Minister of Industry. In 2010–11, STIC delivered 2 advice letters to the Minister. Drafts of an additional advice letter and the public State of the Nation 2010 report were also completed. Research and analysis were also underway on three other charges in 2010–11, for which completion is expected in 2011–12. The work of STIC in 2010–11 was completed, or is on track to be completed, within the time frames specified at the outset of the charges.

To advance the Council's deliberations on the charges in progress during 2010–11, the Secretariat prepared 2 scoping papers, 3 discussion papers, 1 assessment of a key federal program, and one options paper. The Secretariat also conducted over 40 consultations in 2010–11.

This result is declining from the previous year's result of 6 documents composed of 5 advice letters submitted to the Minister of Industry and 1 State of the Nation Report.

2.2 Communications Research Centre Canada
2.2.1 Information and Communications Technologies Expertise for Regulations, Standards and Programs

Description: This program conducts research and development 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.

2.2.1 Information and Communications Technologies Expertise for Regulations, Standards and Programs
Expected Result Performance Indicator Target Performance Status
Industry Canada policy-making and program development sectors are made aware of new and emerging communications technologies and are provided with the technical information they need to make well-informed decisions. Number of major Communications Research Centre Canada (CRC) technical inputs provided to Industry Canada groups developing policies and programs related to the information and communications technologies sector 10 Performance Status:
Exceeded

CRC provided 17 technical inputs to Industry Canada groups in the form of technical briefs, reports, workgroup participation and enhancements to equipment used for spectrum monitoring. For this indicator, a trend analysis is not applicable as information from year to year is not correlated due to the nature of research activities; therefore trends can be misleading.

Performance examples include:

  • Provided information on latest technological and standards developments related to radio and television broadcasting provided to IC and Canadian Radio-television Telecommunications Commission (presentations made at the Canadian Digital Television Task Group and the Canadian Digital Radio Coordination Committee meetings).
  • Provided advice on spectrum monitoring and a number of spectrum monitoring units during the G8/G20 Summit to ensure that regulations on spectrum usage were followed.
  • Advised on routing protocols for mobile ad hoc networks in the International Engineering Task Force. Participating in International working group.
2.2.2 Information and Communications Technologies Expertise for Other Federal Partners

Description: This program provides scientific knowledge and expertise to major government clients in selected areas of information and communications technologies (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.

2.2.2 Information and Communications Technologies Expertise for Other Federal Partners
Expected Result Performance Indicator Target Performance Status
Canadian government departments and agencies (Department of National Defence, Canadian Radio-television and Telecommunications Commission, Canadian Space Agency) are provided with the technical information they need to make well-informed decisions Number of major Communications Research Centre Canada (CRC) technical inputs provided to federal agencies developing policies and programs related to the information and communications technologies sector 5 Performance Status:
Exceeded

CRC provided 20 technical inputs to federal agencies developing policies and programs related to the information and communications technologies sector in the form of technical briefs, reports, workgroup participation and enhancements to equipment used for spectrum monitoring. This is a new indicator; therefore a trend analysis could not be conducted due to lack of historical data.

Performance examples include:

  • Royal Canadian Mounted Police: Report on Audio Surveillance Technology
  • Department of Foreign Affairs and International Trade Canada: Report on the Digital TV Transition presented to the Caribbean Regional Broadcasting Commission
  • Public Safety: Analysis of Canada-U.S. Border Radio Coverage
2.2.3 Innovation and Technology Transfer

Description: This program identifies and closes innovation gaps in Canada's information and communications technologies (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 done to explore new areas of communications technology that 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.

2.2.3 Innovation and Technology Transfer
Expected Result Performance Indicator Target Performance Status
Small and medium-sized Canadian telecommunications companies realize industrial benefits from CRC intellectual property and technology transfer. Number of new and ongoing IP licences issued or in place with the industrial sector 200 Performance Status:
Exceeded

This year, CRC recognized that 365 new and ongoing IP licences were issued or put in place with the industrial sector. This is a new indicator; therefore a trend analysis could not be conducted due to lack of historical data.

From the CRC IP database, the information on new and ongoing IP licences is as follows:

  • 365 active licences
  • 26 new licence agreements to transfer existing technologies to industry in the form of patents, software and/or hardware
  • 25 new evaluation licence agreements to enable SMEs to assess CRC's technologies
2.3 Commercialization and Research and Development Capacity in Targeted Canadian Industries
2.3.1 Industry-Specific Policy and Analysis for Innovation and Research and Development Investment

Description: Through this program, the Department identifies and analyzes opportunities and risks involved in investing in research and development (R&D), innovation and commercialization in specific industries. The Department engages research institutes, associations, the private sector, other federal government departments and other governments to develop knowledge and expertise regarding the trends and impacts on R&D, innovation and commercialization in targeted Canadian industries. This information is packaged into tangible products, such as roadmaps and frameworks, which are disseminated to stakeholders to enhance informed decision making in the private, public and academic sectors. This analysis is used to advise on regulations and policies relating to Canada's R&D, commercialization and innovation capacity.

2.3.1 Industry-Specific Policy and Analysis for Innovation and Research and Development Investment
Expected Result Performance Indicator Target Performance Status

1 Knowledge products include sector profiles, research reports, decks and technology roadmaps. (Return to reference 1)

2 Collaborative policy projects include facilitation of industry networks, participation on committees and joint initiatives with stakeholders. (Return to reference 2)

Internal and external stakeholders are engaged, informed and provided with advice on developments, trends and issues that influence innovation in targeted Canadian industries Number of knowledge products1 developed to analyze trends, challenges and opportunities affecting innovation in targeted Canadian industries 24 Performance Status:
Exceeded

In 2010–11, Industry Canada developed 50 knowledge products. This includes over 10 sector profiles and a number of reports and decks on innovation in targeted industries, including one on venture capital financing for pharmaceutical industries. This is a new indicator; therefore a trend analysis could not be conducted due to lack of historical data.

Number of collaborative policy projects focused on R&D and innovation2 16 Performance Status:
Mostly Met

In 2010–11, Industry Canada collaborated on 15 policy projects. This includes participation on a number of working groups, such as the Green Aviation Research & Development Network and the Canadian Automotive Partnership Council – Working Groups: Innovation and Commercialization, and on reports such as the State of Retail: The Canadian Report 2010. This is a new indicator; therefore a trend analysis could not be conducted due to lack of historical data.

2.3.2 Innovation Capacity in the Automotive Industry

Description: This program advances and supports government priorities by contributing to strategic, large-scale research and development (R&D) projects in the automotive sector that support innovative, greener and more fuel-efficient vehicles. This program provides a strategic opportunity to support projects delivering on the government's wider competitiveness and science and technology agendas by supporting transformative, innovative activities related to automotive engineering, R&D and manufacturing modernization to position the Canadian industry as a leader in producing the "cars of the future." This program also supports Canada's environmental agenda in advancing R&D and innovation to increase fuel efficiency and reduce greenhouse gases, thereby contributing to meeting the objectives of Canada's Clean Air Agenda and new fuel consumption regulations.

2.3.2 Innovation Capacity in the Automotive Industry
Expected Result Performance Indicator Target Performance Status
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 Number of projects involving private sector investments under the Automotive Innovation Fund (AIF) that contribute to Canada's capacity to develop innovative, greener and more fuel-efficient vehicles 3 Performance Status:
Somewhat Met

In 2010–11, there were 2 projects involving private sector investment. There has been no change in performance results from the previous year.

2.3.3 Research and Development Capacity in the Aerospace Industry

Description: This program advances and supports government priorities by contributing strategically to research and development in the aerospace industry, encouraging and leveraging private sector investment, and maintaining and enhancing the technology base and technological capabilities of Canadian aerospace firms. This program will provide conditionally repayable contributions that support the development of new technologies for the next generation of more fuel-efficient and safe aircraft.

2.3.3 Research and Development Capacity in the Aerospace Industry
Expected Result Performance Indicator Target Performance Status
Enhanced capacity for research and development and commercialization of new technologies in the Canadian Aerospace Industry Number of R&D positions maintained and created through this program activity 1,300 Performance Status:
Exceeded

Industry Canada maintained and created 1,450 R&D positions through this program. This is a new indicator; therefore a trend analysis could not be conducted due to lack of historical data.

2.3.4 Strategic Aerospace and Defence Initiative

Description: The Strategic Aerospace and Defence Initiative (SADI) helps to encourage the development of innovative products and services; enhance the competitiveness of Canadian aerospace and defence (A&D) firms; and foster collaboration among research institutes, universities, colleges and the private sector. SADI is an element of the government's science and technology strategy, which aims to leverage greater private sector research and development (R&D) investment in Canada. The program acts as a catalyst for new A&D investments by providing repayable contributions to Canadian A&D companies for strategic industrial research and pre-competitive development. SADI takes continuous applications, and projects are selected following a rigorous review of financial, technical and market criteria. The program is financed from funds previously allocated to Technology Partnerships Canada (TPC) and repayments received from TPC and SADI projects.

2.3.4 Strategic Aerospace and Defence Initiative
Expected Result Performance Indicator Target Performance Status
Increased investment in innovative and competitive aerospace, defence, space and security (A&D) firms Dollars of investment leveraged per dollar of SADI investment $2.00 Performance Status:
Mostly Met

SADI leveraged $1.96 for every dollar invested during 2010–11. This result is improving from the previous year's result of $1.95.

Collaborative partnerships in research and development between aerospace, defence, space and security industries and research institutes, universities, colleges and/or non-profit organizations Number of SADI projects involving collaborative partnerships between industry, universities and research centres 10 Performance Status:
Somewhat Met

SADI signed 7 new contribution agreements during 2010–11, each with collaborative partnerships. This result is declining from the previous year's result of 8 new contribution agreements.

2.3.5 Program for Strategic Industrial Projects

Description: The Program for Strategic Industrial Projects (PSIP) was created in early October 2005 to strengthen the Canadian auto industry through support for the implementation of flexible manufacturing capacity at Canadian assembly plants. The program provides repayable contributions to fund large strategic projects within the automotive sector (in whole or in part) from the fiscal framework. PSIP advances and supports government initiatives through strategic investments in industrial research, pre-competitive development and technology adaptation and adoption. To date, $355 million has been committed to three large, complex projects by major automotive manufacturers resulting in two older assembly plants being modernized to a very high degree and a new world-class assembly plant being built. These investments help increase economic growth within Canada and promote the long-term stability of the auto assembly sector and, by extension, the Canadian auto parts sector.

2.3.5 Program for Strategic Industrial Projects
Expected Result Performance Indicator Target Performance Status
Increased investment in research and development activities in the automotive industry Dollars of investment leveraged per dollar of Program for Strategic Industrial Projects (PSIP) new project $2.00 Performance Status:
Not Met

No new projects were contracted. PSIP terms and conditions expired March 31, 2011. For this indicator, a trend analysis is not applicable.

2.3.6 Technology Partnerships Canada–Research and Development Program

Description: The Technology Partnerships Canada (TPC) program provided repayable contributions to support industrial research and pre-competitive development in the aerospace and defence, environmental, life sciences, information and communications technologies, and advanced manufacturing sectors. The program helped leverage private sector research and development (R&D) and produced a wide range of economic, social and environmental benefits for all Canadians. TPC ended on December 31, 2006; and, while it no longer takes applications, the program continues to manage a $3.5 billion portfolio of existing contracted projects. Repayments on these projects are expected until 2035.

2.3.6 Technology Partnerships Canada – Research and Development Program
Expected Result Performance Indicator Target Performance Status
Increased investment in research and development activities in the aerospace, defence, environmental and enabling technology industries Dollars of investment leveraged per dollar of Technology Partnerships Canada (TPC) – R&D Program investment $2.00 Performance Status:
Exceeded

TPC leveraged $3.02 for every dollar of program investment made during 2010–11. This is a revised indicator; therefore a trend analysis is not applicable.


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Section 4: Other Items of Interest

4.3 Expected Results Information for Program Sub-Activities and Sub-Sub-Activities by Strategic Outcomes

Strategic Outcome Strategic Outcome 3: Competitive Businesses are Drivers of Sustainable Wealth Creation

3.1 Entrepreneurial Economy
3.1.1 Canada Small Business Financing

Description: The Canada Small Business Financing (CSBF) Program is designed to help Canadian small and medium-sized enterprises (SMEs) get access to financing that would not otherwise have been available, or would only have been available under less favourable terms. It is a loan loss-sharing program in partnership with financial institutions. Under the program, financial institutions can make term loans on real property, leasehold improvements and equipment. In the event a registered loan defaults, the government pays 85% of the eligible losses. The CSBF Program is a national program and operates in all provinces and territories. To be eligible for this program, SMEs must be for-profit businesses, the revenues of which do not exceed $5 million per year.

3.1.1 Canada Small Business Financing
Expected Result Performance Indicator Target Performance Status
SMEs have access to financing with government support, to which they would not otherwise have access Number of loans registered with the program 10,000 Performance Status:
Somewhat Met

7,446 loans registered. This result is improving, up from 7,441 loans made in 2009–10. A variety of outreach activities are being conducted throughout Canada in order to increase awareness of the CSBF Program among small businesses, lenders and business support organizations. In addition, the CSBF Program launched a process that enables lenders to electronically submit loan registrations and perform other electronic processes.

Value of loans registered with the program $1 billion Performance Status:
Exceeded

$1.03 billion registered with the program. This result is improving, up (7.3%) from $956.6 million in 2009–10.

Percentage of CSBF loan recipients who would not have otherwise obtained a loan, or would have obtained a loan under less favourable conditions 75% Performance Status:
Exceeded

80% to 85% of CSBF Program borrowers obtained some degree of financial incrementality, an increase ranging from 4.4% to 9.6% from the last incrementality study. There has been no change in performance results from previous year.

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 time for business and assisting them to make well-informed business decisions. This program supports the horizontal initiative on Canada Business Network.

3.1.2 Service to Business
Expected Result Performance Indicator Target Performance Status

* The Business Start-Up Assistant (BSA) was removed from the CB website in September 2010. Its total visits were reported in the 2009–10 statistics (709,800). By removing the BSA statistics, the 2009–10 reporting would have been 1,950,785; thus the actual decrease to the CB national website is only 4.4%. (Return to reference *)

** Since the change to BIL, there were 65,164 calls in total to the integrated federal/provincial BIL in Ontario in 2010–11, including 20,064 calls handled federally by CBO. (Return to reference **)

SME use of government business-related information, programs and services, and facilitated compliance for business Increase in number of clients using the Canada Business Network website over the previous year 10% Performance Status:
Not Met

Decrease of approximately 4.4%. This result is declining from the previous year's decrease of 13.6%.

Total number of clients:

  • 2010–11: 1,865,023
  • 2009–10: 2,660,588*

The Canada Business National Office will attempt to increase awareness of the website through the development of a new branding strategy and will continue to adapt and improve the usability and content of the website based on client feedback and usability testing.

Increase in number of assisted client interactions through regional presence of the Canada Business Network in Ontario, Nunavut, N.W.T. and Yukon 5% Performance Status:
Not Met

Decrease of approximately 36%. This result is declining from the previous year's decrease of 20%.

Total number of calls:

  • 2010–11: 20,169**
  • 2009–10: 31,678

The reduction of calls in Ontario is part of a deliberate strategy to integrate service strategies with the Province of Ontario through a new, single telephone number for federal-provincial business information called the Business Info Line (BIL). BIL is designed to save Ontario entrepreneurs time and money by making it easier to obtain the business information they require from both levels of government. The first full year of operation for BIL took place in 2010–11, replacing the previous Canada Ontario Business Service Centre telephone line where all calls were handled by Industry Canada and then referred to the province where appropriate. Through BIL, routine enquiries are now handled through a robust self-serve menu, as well as by provincial staff offering referrals to government program areas. Higher-value enquiries, which require detailed business knowledge and support such as secondary market research, are handled by Industry Canada through Canada Business Ontario (CBO) staff. While the quantity of calls answered by CBO has reduced through this service strategy, the overall quality and time spent providing information to clients through these calls has increased.

3.1.3 BizPaL

Description: This program provides online access to information on the business permits, licences and regulatory requirements of all levels of government, saving time for existing businesses, as well as for entrepreneurs who want to start a business. It enhances the competitiveness of small and medium-sized enterprises (SMEs) by saving them time, which they can later use to develop strategies and focus on competitiveness. This program supports the horizontal initiative on BizPaL.

3.1.3 BizPaL
Expected Result Performance Indicator Target Performance Status
Integrated business permit and licence information from all levels of government provides value to clients across Canada. Percentage of the Canadian population with access to the BizPaL service 60% Performance Status:
Mostly Met

As a result of the efforts of the BizPaL partnership undertaken during 2010–11, the net population coverage increased to 57.8%. This is a new indicator; therefore a trend analysis could not be conducted due to lack of historical data. In order to meet targets in the following years, BizPaL will continue to engage and recruit municipalities throughout Canada.

3.1.4 Small Business Internship (formerly Student Connections)

Description: The Small Business Internship Program (SBIP) provides small and medium-sized enterprises (SMEs) financial support to employ a youth intern to assist them in increasing their adoption of information and communications technologies (ICT) to augment their productivity and competitiveness.

3.1.4 Small Business Internship (formerly Student Connections)
Expected Result Performance Indicator Target Performance Status

* One student is assigned to each e-business project. The number of student-interns is equal to the number of projects.

Successful collaboration between small and medium-sized enterprises (SMEs) and youth Number of students employed as interns 400 Performance Status:
Exceeded

525 student-internships including 415 student-internships in Summer Works plus 110 student-internships in Career Focus.  Career Focus was supported through additional funds under Canada's Economic Action Plan (EAP) for 2010–11 only.* This is a new indicator; therefore a trend analysis could not be conducted due to lack of historical data.

Improved competitiveness of businesses using e-business Number of e-business projects undertaken by SMEs 400 Performance Status:
Exceeded

525 projects including 415 projects in Summer Works plus 110 projects in Career Focus.  Career Focus was supported through additional funds under the EAP for 2010–11 only.* This is a new indicator; therefore a trend analysis could not be conducted due to lack of historical data.

3.1.5 Small Business Growth and Prosperity

Description: Through advocacy, policy research, analysis and reporting, this program raises government-wide awareness of the importance of entrepreneurship and small businesses to Canada's economy and of the challenges facing their growth and prosperity. In particular, it supports the Canadian Youth Business Foundation (CYBF), which is a not-for-profit organization that provides loans and mentorship to young Canadian entrepreneurs who would not typically receive financial assistance from traditional lending institutions.

3.1.5 Small Business Growth and Prosperity
Expected Result Performance Indicator Target Performance Status
Departmental and other government department (OGD) clients and external stakeholders are aware of small business perspectives Number of meetings and outreach events 15 Performance Status:
Met All

The Policy and Liaison Directorate held 15 meetings and outreach events during the specified period. This is a new indicator; therefore a trend analysis could not be conducted due to lack of historical data.

Increase in the number of young entrepreneurs assisted Number of loans to entrepreneurs between the ages of 18–34 in Canada 480 Performance Status:
Exceeded

The CYBF disbursed a total of 623 loans in fiscal year 2010–11. This is a new indicator; therefore a trend analysis could not be conducted due to lack of historical data.

3.2 Global Reach and Agility in Targeted Canadian Industries
3.2.1 Industry-Specific Policy, Advice and Expertise

Description: This program provides intelligence, analysis and advice to government and industry partners that is oriented towards industry capacity to adapt to the continually evolving economic environment. As the centre of industrial sector expertise, the Department facilitates industry networks, participates on committees, and advises stakeholders on key issues and policies relevant to the sustainability of targeted Canadian industries and their positions within globalized markets and value chains. The Department brings the industry perspective to regulations, agreements and policies developed by the government.

3.2.1 Industry-Specific Policy, Advice and Expertise
Expected Result Performance Indicator Target Performance Status

1 Collaborative policy projects include facilitation of industry networks, participation on committees and joint initiatives with stakeholders. (Return to reference 1)

Internal and external clients are engaged and have access to information on trends and issues affecting the competitiveness of Canadian industries and receive value-added knowledge and advice. Number of collaborative policy projects1 focused on industry competitiveness and agility 50 Performance Status:
Met All

In 2010–11, there were 50 collaborative policy projects. This includes participation on working groups, such as an automotive regulatory harmonization committee, and a number of jointly conducted studies with partners, such as the Canadian Manufacturers and Exporters association. This is a new indicator; therefore a trend analysis could not be conducted due to lack of historical data.

3.2.2 Industry Development and Analysis

Description: This program provides intelligence, analysis, knowledge products, services and advice to targeted sector firms and industries so that they become increasingly agile and competitive within the context of globalized markets. The program monitors trends and business issues impacting targeted industries, and tracks international economic and policy developments to see what effects these will have on Canadian industries. In collaboration with partners, such as industry associations and other government departments, the Department develops products such as value chain studies, research papers and statistical reports. These products are disseminated to stakeholders to enable informed decision making.

3.2.2 Industry Development and Analysis
Expected Result Performance Indicator Target Performance Status

2 Knowledge products include sector and company profiles, research reports and decks. (Return to reference 2)

Focused research and analysis on factors affecting global reach and agility in targeted industries Number of knowledge products2 developed to analyze trends, risks and opportunities affecting the competitiveness of targeted Canadian industries 290 Performance Status:
Exceeded

In 2010–11, Industry Canada produced 358 knowledge products. These include over 270 company profiles and over 25 sector profiles including chemicals, plastics and rubber. This is a new indicator; therefore a trend analysis could not be conducted due to lack of historical data.

3.2.3 Shipbuilding Capacity Development

Description: This program is designed to help ensure that shipyard capability exists for federal marine procurement and maintenance requirements in keeping with the Buy Canada procurement policy. This program provides financing support in the form of a buy down of financing costs to purchasers, either Canadian or foreign, of Canadian-built vessels. Subject to limitations, this support can be up to 15% of the purchase price paid to the Canadian shipyard for the construction or modification of an eligible vessel or offshore marine structure. The support is in the form of a non-repayable contribution.

3.2.3 Shipbuilding Capacity Development
Expected Result Performance Indicator Target Performance Status

* Normally, each vessel represents 1 project. In 2010–11, 1 of the 2 projects was for 5 vessels, which would normally be counted separately and, therefore, the total projects for 2010–11 would have been 6. (Return to reference *)

Investments in support of Canadian shipbuilding industry to help develop necessary critical infrastructure to position the industry for future procurement efforts Percentage of available funding committed to Structured Financing Facility (SFF) projects 80% Performance Status:
Exceeded

This program had $9.3 million of available resources, of which $8.4M (90%) was spent. This result is improving from the previous year's result of 31.2%.
This program was successful in exceeding the target due to re-profiling of unused funds for future projects.

Number of SFF projects approved 4 Performance Status:
Not Met

In 2010–11, there were 2* SFF projects approved. There has been no change in performance results from previous year.

3.2.4 Industrial and Regional Benefits Policy and Program Management

Description: The Industrial and Regional Benefits (IRB) Policy provides the framework for leveraging federal defence and security procurements to generate long-term industrial and regional development within Canada. Created in 1986, the IRB Policy ensures that Canadian companies can derive benefits from federal procurements through the creation of new business opportunities or investments in research and development, technology commercialization or business development activities. Under the IRB Policy, prime contractors who are awarded major federal defence and security contracts are required to generate new business activity in the Canadian economy in an amount equal to the contract value. The investments must be in advanced technology sectors across Canada and can be either directly or indirectly related to the procured item. IRBs are the Canadian version of industrial participation policies practised around the world by over 100 countries. Industry Canada is responsible for the administration and implementation of the IRB Policy. Regional development agencies support the implementation of the IRB Policy through analysis of regional capabilities and industry stakeholder engagement.

3.2.4 Industrial and Regional Benefits Policy and Program Management
Expected Result Performance Indicator Target Performance Status
High-quality, strategic, business-led transactions generating broad, socio-economic benefits to Canada (e.g., business development, R&D, etc.) Percentage of total offset obligations approved as new IRB transactions during the fiscal year 5% Performance Status:
Exceeded

Gross value of new IRB transactions equal to $1.23 billion, resulting in 6% of total offset obligation value being identified in 2010–11. This is a new indicator; therefore a trend analysis could not be conducted due to lack of historical data.

IRB Policy requires companies to undertake business activities in Canada valued at 100%  of the value of the defence or security contract they have been awarded by the Government of Canada. Increases in the gross value of new IRB transactions as a percentage of total offset obligations generate high value-added business activity for Canadian industry.

New business transactions that are examined and assessed annually as a percentage of total applications received. 90% Performance Status:
Exceeded

100% of transactions were examined and assessed. 100 new transactions were received in the 2010–11 fiscal year and were examined and assessed. This is a new indicator; therefore a trend analysis could not be conducted due to lack of historical data.

Ongoing transactions that are reviewed and reported on annually as a percentage of total approved transactions. 50% Performance Status:
Exceeded

In 2010–11, 56 out of 63 (89%) IRB annual reports were on schedule and reviewed. This is a new indicator; therefore a trend analysis could not be conducted due to lack of historical data.

3.3 Community, Economic and Regional Development
3.3.1 Federal Economic Development Initiative for Northern Ontario (FedNor)

Description: FedNor is a regional development organization that promotes economic development and diversification, job creation, and the existence of competitive businesses and sustainable communities in northern and rural Ontario. FedNor achieves this through the delivery of three core transfer payment programs: the Northern Ontario Development Program, the Community Futures Program (Ontario) and the Eastern Ontario Development Program, through which funding is made available to a variety of regional and community businesses and partners to improve community capacity, access to capital and markets, the development of modern infrastructure and technology, innovation, and the development of human capital.

3.3.1 Federal Economic Development Initiative for Northern Ontario (FedNor)
Expected Result Performance Indicator Target Performance Status
Communities in Northern Ontario are viable and businesses in those regions are competitive. Number of businesses and organizations created, expanded or maintained 3,729 Performance Status:
Not Met

In 2010–11, FedNor, through the NODP and CF Program, helped create, expand or maintain 1,738 businesses and organizations. The wide variation between the actual result and the target is attributed to an improved methodology being used to calculate this program area result. This result improved on the previous year's result of 1,607 businesses and organizations measured on a comparable basis.

3.3.1.1 Community Futures Program

Description: This program supports community economic development and builds the capacity of non-metropolitan communities in Ontario to realize their full sustainable potential. Funding is made available through transfer payments that provide contributions to designated Community Futures organizations in Ontario 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.

3.3.1.1 Community Futures Program
Expected Result Performance Indicator Target Performance Status
Communities in rural Northern Ontario are viable and businesses in this region are competitive. Ratio of funds raised from other sources to federal Community Futures (CF) Program investments 1.48:1 Performance Status:
Exceeded

In 2010–11, FedNor, through CF, raised a ratio of 3.3:1 in funds from other sources to federal CF investments. This result is improving from the previous year's result of 1.7:1.

Number of businesses created, expanded, maintained or strengthened in rural Northern Ontario by Community Futures Development Corporations (CFDCs) 353 Performance Status:
Exceeded

In 2010–11, FedNor, through CF, helped create, expand, maintain and strengthen 722 businesses in rural Northern Ontario. This result is declining from the previous year's result of 1,001 businesses.

3.3.1.2 Northern Ontario Development Program

Description: This program promotes economic development and diversification in Northern Ontario and builds on the assets and strengths of communities to maximize their full potential. Funding through transfer payments provides contributions to not-for-profit organizations and small and medium-sized enterprises in six priority areas: community economic development, information and communications technology, innovation, trade and tourism, human capital, and business financing support.

3.3.1.2 Northern Ontario Development Program
Expected Result Performance Indicator Target Performance Status
Communities in Northern Ontario are viable and businesses in this region are competitive Number of Northern Ontario businesses and organizations created, expanded or maintained 3,376 Performance Status:
Not Met

In 2010–11 FedNor, through the NODP, helped create, expand or maintain 1,016 businesses and organizations in Northern Ontario. This target was developed using a methodology from 2008–09. The wide variation between the actual result and the target is attributed to an improved methodology being used to calculate this program area result. This result improved on the previous year's result of 606 businesses and organizations, measured on a comparable basis.

Ratio of funds raised from other sources to Northern Ontario Development Program (NODP) contributions 2.79:1 Performance Status:
Mostly Met

In 2010–11, FedNor, through NODP raised a ratio of 2.73:1 in funds from other sources to NODP contributions. This result is a reduction from the previous year's result of 3.2:1.

3.3.1.3 Eastern Ontario Development Program

Transferred to the Federal Economic Development Agency for Southern Ontario (FedDev Ontario).

3.3.2 Linguistic Duality and Official Languages

Description: The Linguistic Duality and Official Languages program has three components: (1) implementation of Section 41 of the Official Languages Act (OLA); (2) horizontal coordination of the Economic Development Initiative (EDI) under the Government of Canada's Roadmap to Linguistic Duality 2008–2013: Acting for the Future; and (3) implementation of the EDI in Ontario. The first component involves departmental coordination to ensure that all Industry Canada programs and initiatives meet the requirements of Section 41 of the OLA — enhancing the vitality of the English and French linguistic minority communities in Canada, supporting and assisting their development, and fostering the full recognition and use of both English and French in Canadian society. Industry Canada, the three regional development agencies (RDAs), and Indian and Northern Affairs Canada (INAC) are responsible for the delivery of the five-year EDI. This initiative supports economic development of Canada's official language minority communities (OLMCs) and promotes the economic benefits of Canada's linguistic duality. Industry Canada works with the RDAs and INAC to design, coordinate and implement a successful engagement strategy that respects, clarifies and institutionalizes accountability for the EDI, and establishes and delivers on stakeholder expectations for engagement on a national scale. FedNor is responsible for delivery of the EDI within Ontario. The existing Northern Ontario Development Program will be used to implement the EDI in OLMCs throughout Ontario.

3.3.2 Linguistic Duality and Official Languages
Expected Result Performance Indicator Target Performance Status
Industry Canada programs, initiatives and services take account of the presence and needs of Canada's official language minority communities (OLMCs) and support Canada's linguistic duality. Percentage of new Industry Canada programs and services that take account of the needs of OLMCs and support Canada's linguistic duality  100% Performance Status:
Met All

100% of Industry Canada's programs and services take account of the needs of OLMCs and support Canada's linguistic duality. Additionally, 79% of portfolio organizations also used the Official Languages Filter to ensure due diligence in meeting their official language obligations. This is a new indicator; therefore a trend analysis could not be conducted.

Successful implementation of a coordinated process of reporting, evaluation and research for the EDI Percentage of EDI program delivery evaluations that address effectiveness of EDI 100% Performance Status:
Met All

100% of EDI program delivery evaluations addressed the effectiveness of EDI. This is a new indicator; therefore a trend analysis could not be conducted.

SMEs in official language minority communities (OLMCs) have improved access to economic development projects Number of projects or activities in Northern Ontario (innovation, diversification, partnerships, or to support SMEs) 43 Performance Status:
Exceeded

Through the EDI, FedNor provided funding assistance to 45 projects or activities in Northern Ontario. This is a new indicator; therefore a trend analysis could not be conducted.

3.3.3 Canada-Ontario Municipal Rural Infrastructure Program

Transferred to the Federal Economic Development Agency for Southern Ontario (FedDev Ontario).

3.3.4 Ontario Municipal Rural Infrastructure Top-up Program

Transferred to the Federal Economic Development Agency for Southern Ontario (FedDev Ontario).

3.3.5 Computers for Schools

Description: This program refurbishes surplus computers from federal government departments and private sector donors through contribution agreements with licensed delivery agents, and distributes the computers, ready-to-use, to schools and not-for-profit learning organizations throughout Canada. Through a national partnership-based network, the program continues to meet an ongoing demand for sufficient numbers of computers in Canadian schools and libraries, ensuring that more young Canadians have access to the benefits of a knowledge-based economy and society. This program also provides work experience for youth through the Technical Work Experience Program (TWEP). Youth who have demonstrated skills achieved at the post-secondary level are provided with opportunities to work on innovative information and communications technology (ICT) projects in the context of computer refurbishment workshop activities. TWEP supports ICT projects, which enable participants to develop practical work experience in such areas as computer repair, refurbishment and software testing; to cultivate skills such as teamwork, time management and administration; and to perform other activities related to managing a computer refurbishment workshop.

3.3.5 Computers for Schools
Expected Result Performance Indicator Target Performance Status
Distribution of computers to schools, libraries and not-for-profit organizations at low or no cost Number of refurbished computer units delivered annually by province and territory 85,000 Performance Status:
Mostly Met

In 2010–11, the Computers for Schools (CFS) program refurbished and delivered 67,684 computers to schools and not-for-profit learning organizations throughout the country. The wide variation between the actual result and the target is attributed to a different methodology being used to calculate the target. An improved methodology is now being used, which includes direct consultation and target setting with program recipients. This result improved from the previous year's result of 61,914 computers.

Engagement of youth interns to assist in computer refurbishment and information and communications technology (ICT) skills integration Number of youth interns engaged 250 Performance Status:
Exceeded

A total of 403 youth were employed through the Computers for Schools program for 2010–11, providing youth with hands-on technical job experience. This result exceeded the previous year's result of 330 youth.

This increase was a result of additional funds that were received for the program through the Youth Employment Strategy. Funding will return to normal levels for fiscal year 2011–12.

Increased computer awareness, knowledge and skills for youth Proportion of youth interns completing their training 90% Performance Status:
Met All

A total of 90% of youth completed their training in 2010–11, providing them with hands-on technical job experience. Increased skills gained from their CFS internship allowed youth to be more marketable and find employment in a technical field. This result is an improvement from the previous year's result of 65%.

3.3.6 Community Access Program (CAP)

Description: The Community Access Program (CAP) provides affordable public access to the Internet and related information and communications technologies (ICTs) and applications, skills training, and delivery of public and private sector services and information to Canadians in need of this critical support. CAP sites across Canada contribute to the economic and social development of Canadian communities and their residents who face barriers to the use of ICTs. While CAP meets the access needs of all Canadians, a sizable portion of users live and work in rural and remote communities. CAP also provides work experience for up to 1,500 youth annually through placements at CAP sites throughout the country. Youth with demonstrated skills are afforded opportunities to work on innovative ICT projects by providing CAP site users with basic training in using the Internet, accessing online government services, developing websites and using other web-related services. This enables them to develop practical work experience in training and promotion, as well as other useful work-related skills such as teamwork, time management and administration. CAP is subject to program review and funding approval on an annual basis.

3.3.6 Community Access Program (CAP)
Expected Result Performance Indicator Target Performance Status
Public access to the Internet for Canadians and communities to receive public and private sector services and information Average number of users per CAP site per week 10 Performance Status:
Not Met

Data were not collected for the 2010–11 fiscal year. The program is currently exploring new methodologies and options that would allow the collection of comparable user data.

Youth interns are engaged to assist CAP site users in gaining information and communications technology skills. Number of youth interns engaged 1,500 Performance Status:
Exceeded

In 2010–11, 1,824 youths were engaged. This is a new indicator; therefore a trend analysis could not be conducted.

This increase was a result of additional funds that were received for the program through the Youth Employment Strategy. Funding will return to normal levels for fiscal year 2011–12.

Improved entry-level working skills for youth Proportion of youth interns completing their training 90% Performance Status:
Exceeded

In 2010–11, 93% of youths completed their internships. This is a new indicator and there are no historical data to establish a trend.

3.3.7 Ontario Potable Water Program

Transferred to the Federal Economic Development Agency for Southern Ontario (FedDev Ontario).

3.3.8 Brantford Greenwich-Mohawk Remediation Project

Transferred to the Federal Economic Development Agency for Southern Ontario (FedDev Ontario).

3.3.9 Canada Strategic Infrastructure Program

Transferred to the Federal Economic Development Agency for Southern Ontario (FedDev Ontario).

3.3.10 Building Canada Program

Transferred to the Federal Economic Development Agency for Southern Ontario (FedDev Ontario).


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Section 4: Other Items of Interest

4.4 Corporate Risk Profile Table

As part of its continued efforts to advance Integrated Risk Management, Industry Canada identified the corporate risks that had the potential to impact the Department's ability to achieve its mandate and strategic outcomes in its 2010–11 Corporate Risk Profile (CRP). Also, in 2010–11, Industry Canada improved its corporate risk profiling by focusing attention on program risks as part of a comprehensive risk management approach. The CRP process included the development, implementation and ongoing monitoring of mitigation strategies and action plans to ensure Industry Canada's risks were effectively managed. In response to the 15th Public Accounts Committee recommendations, Industry Canada has broadened its presentation of risks in the DPR to better situate the Department's work and present a balanced and transparent performance story.

The 2010–11 CRP identified the following five corporate risk categories for the Department: economic action plan program delivery, spectrum and telecommunication frameworks and regulations, reputational and stakeholder expectations, organizational adaptability, and innovation. Under each of these categories, a number of priority departmental risks were identified. Details on these risks and their associated mitigation strategies can be found in Section 2 of this report, under the appropriate program activity. A Corporate Risk Profile table is also included below to provide better linkages to identified risk categories.

Industry Canada continues to update its Corporate Risk Profile as well as identify, monitor and mitigate corporate risks that may affect the Department's ability to achieve its expected results and deliver its mandate.

Corporate Risk Profile
  Priority
Ensuring marketplace policies help promote competitive markets and instil consumer confidence Fostering business innovation Investing in science and technology to enhance the generation and commercialization of knowledge Fostering internationally competitive businesses and industries Promoting entrepreneurship, community development and sustainable development

*The corporate risks are broad, high-level statements, as identified in Industry Canada's 2010–11 Corporate Risk Profile, which link program risks to departmental priorities. (Return to reference *)

Risk* Implement Economic Action Plan initiatives in a timely fashion and ensure appropriate levels of accountability   X X   X
Fully advance a regulatory and policy framework that will ensure the continued evolution of the telecommunications and wireless infrastructure X        
Manage expectations and maintain Industry Canada's reputation amongst stakeholder groups, the public and the media X X X X X
Meet the demands of shifting and emerging priorities as the economic recovery continues, and that these demands may impact its ability to support program delivery and meet departmental and government priorities X X X X X
The current global and financial context, as well as shifting economic drivers, may impact Industry Canada's ability to provide key stakeholders with the appropriate support for their investment and innovation capacity and their ability to leverage leading-edge research and Science and Technology discoveries   X X   X

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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, 2011, 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's best estimates and judgment and gives due consideration to materiality. To fulfil its accounting and reporting responsibilities, management maintains a set of accounts that provides a centralized record of Industry Canada's financial transactions. Financial information submitted in the preparation of the Public Accounts of Canada, and included in Industry Canada's 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, 2011, 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, 2011.

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 the effectiveness of associated key controls and to make necessary adjustments.

The effectiveness and adequacy of Industry Canada's system of internal control is reviewed through 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's responsibilities for maintaining adequate control 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.

________________________
Richard Dicerni, Deputy Head
Ottawa, Canada

________________________
August 25, 2011

________________________
Kelly Gillis, Chief Financial Officer

________________________
August 22, 2011

Industry Canada
Statement of Financial Position (Unaudited)
As at March 31

(in thousands of dollars)
  2011 2010
Restated
(note 15)

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

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

Assets
Financial assets
Due from Consolidated Revenue Fund
$318,618 $651,544
Accounts receivable and advances (note 4)
41,709 190,807
Loans (note 5)
422,703 475,670
Total financial assets 783,030 1,318,021
Non-financial assets
Prepaid expenses
555 1,025
Tangible capital assets (note 6)
97,779 100,267
Total non-financial assets 98,334 101,292
  $881,364 $1,419,313
Liabilities and Equity of Canada
Liabilities
Accounts payable and accrued liabilities (note 7)
$437,258 $868,844
Vacation pay and compensatory leave
25,896 26,216
Deferred revenue (note 8)
3,775,636 4,376,729
Allowance for loan guarantees (note 11)
360,023 376,699
Allowance for employee severance benefits (note 10)
92,252 87,487
Other liabilities (note 9)
34,739 32,780
  4,725,804 5,768,755
Equity of Canada $(3,844,440) $(4,349,442)
  $881,364 $1,419,313
________________________
Richard Dicerni, Deputy Head
Ottawa, Canada
________________________
Kelly Gillis, Chief Financial Officer
________________________
August 25, 2011
________________________
August 22, 2011

Industry Canada
Statement of Operations (Unaudited)
For the Year Ended March 31

(in thousands of dollars)
  2011
Planned Results
2011 2010
Restated
(note 15)

Segmented information (note 14)

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

Expenses
The Canadian Marketplace is Efficient and Competitive
$448,652 $408,929 $428,251
Science and Technology, Knowledge, and Innovation are Effective Drivers of a Strong Economy
1,491,849 1,228,214 1,371,254
Competitive Businesses are Drivers of Sustainable Wealth Creation
444,763 275,704 357,582
Internal Services
113,731 217,222 224,568
Total expenses 2,498,995 2,130,069 2,381,655
Revenues
The Canadian Marketplace is Efficient and Competitive
1,028,089 1,054,971 1,048,509
Science and Technology, Knowledge, and Innovation are Effective Drivers of a Strong Economy
10,595 13,740 12,694
Competitive Businesses are Drivers of Sustainable Wealth Creation
62,186 56,653 61,447
Internal services
- 406 446
Total revenues 1,100,870 1,125,770 1,123,096
Net cost of operations $1,398,125 $1,004,299 $1,258,559

Industry Canada
Statement of Equity of Canada (Unaudited)
For the Year Ended March 31

(in thousands of dollars)
  2011 2010
Restated (note 15)

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

Equity of Canada, beginning of year $(4,349,442) $(5,111,374)
Net cost of operations (1,004,299) (1,258,559)
Net cash provided by Government 1,753,803 1,653,764
Change in due from the Consolidated Revenue Fund (332,926) 277,125
Services provided without charge by other government departments (note 13) 88,424 88,064
Transfer of assets and liabilities from(to) other government departments (note 15) - 1,538
Equity of Canada, end of year $(3,844,440) $(4,349,442)

Industry Canada
Statement of Cash Flow (Unaudited)
For the Year Ended March 31

(in thousands of dollars)
  2011 2010
Restated
(note 15)

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

Operating activities
Net cost of operations
$1,004,299 $1,258,559
Non-cash items:
Amortization of tangible capital assets
(15,907) (16,245)
Gain (Loss) on disposal of tangible capital assets
208 178
Loss on write-offs of tangible capital assets
- (10,313)
Adjustment to tangible capital assets
193 (1,571)
Services provided without charge by other government departments (note 13)
(88,424) (88,064)
Variations in Statement of Financial Position:
Increase (decrease) in accounts receivable
(149,098) 88,459
Increase (decrease) in loans
(52,967) 70,757
Increase (decrease) in prepaid expenses
(470) 748
Decrease (increase) in accounts payable and accrued liabilities
431,586 (219,131)
Decrease (increase) in vacation pay and compensatory leave
320 (2,306)
Decrease (increase) in deferred revenue
601,093 580,596
Decrease (increase) in allowance for loan guarantees
16,676 (29,985)
Decrease (increase) in future employee benefits
(4,765) 7,583
Decrease (increase) in other liabilities
(1,959) (2,953)
Transfer operations
- (1,538)
Cash used in operating activities 1,740,785 1,634,774
Capital investing activities:
Acquisitions of tangible capital assets
13,276 19,172
Proceeds from disposal of tangible capital assets
(258) (182)
Cash used in capital investing activities 13,018 18,990
Net cash provided by Government of Canada $1,753,803 $1,653,764

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Notes to the Financial Statements (Unaudited)
For the Year Ended March 31

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

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

2. Summary of Significant Accounting Policies

The financial statements have been prepared in accordance with Treasury Board accounting policies 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 does 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 2010–11 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 two special operating agencies: Measurement Canada and the Industrial Technologies Office. The accounts of these sub-entities have been consolidated with those of Industry Canada and all inter-organizational 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 — These 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 represents 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 — These are stated at the lower of cost and net recoverable value. A valuation allowance is recorded for receivables where recovery is considered uncertain. 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.
  9. Loans — These are stated at the lower of cost and net recoverable value. Loans are subject to payment in the event of the default of the debtor. A valuation allowance is recorded for loans where recovery is considered uncertain. A discount is used to reduce the carrying value of the loans to amounts that approximate their net realizable value.
  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 — These include 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. 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.
  15. 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:

    Amortization of tangible capital assets
    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.

  16. 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 Statement 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)
  2011 2010
Restated
(note 15)
Net cost of operations $1,004,299 $1,258,559
Adjustments for items affecting net cost of operations but not affecting authorities:
Revenue not available for spending
967,940 966,745
Repayment of conditionally repayable contributions
155,096 155,067
Services provided without charge by other government departments
(88,424) (88,064)
Provision for loan guarantees
17,459 (29,321)
Bad debts/write-offs/write-down
(4,808) (23,960)
Amortization of tangible capital assets
(15,907) (16,245)
Increase (decrease) in employee severance benefits
(4,765) 6,139
Adjustment of previous year's Accounts Payable
14,182 14,915
Refund of prior year's expenditures
6,763 17,735
Transfer payment adjustments
(128,368) 2,400
Decrease (increase) in allowance for contingent liabilities
(934) 69
Increase in vacation pay and compensatory leave
(73) (2,811)
Net gain on disposal and write-down of tangible capital assets
208 178
Year-end accrual of transfer payments
91,900 40,851
Other
(1,104) (570)
  1,009,165 1,043,128
Adjustments for items not affecting net cost of operations but affecting authorities:
Increase in loans and advances
80,295 72,335
Revenue available for spending
(52,431) (49,212)
Increase in allowance for vacation and compensatory leave
393 318
Acquisitions of tangible capital assets
13,276 19,172
Authorities used by transferred organization (note 15)
- 223,337
  41,533 265,950
Current year authorities used $2,054,997 $2,567,637

(b) Authorities provided and used
(in thousands of dollars)
  2011 2010
Authorities Provided:
Vote 1 — Operating expenditures
$442,489 $497,279
Vote 5 — Capital expenditures
15,516 24,298
Vote 10 — Grants and contributions
1,419,804 1,621,919
Statutory amounts
653,750 1,077,388
  2,531,559 3,220,884
Less:
Authorities available for future years
158,427 153,947
Lapsed authorities: Operating expenditures
25,626 38,058
Lapsed authorities: Capital expenditures
681 5,168
Lapsed authorities: Grants and contributions
291,828 455,996
Lapsed authorities: Proceeds from the disposal of crown assets
- 78
Current year authorities used $2,054,997 $2,567,637

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Notes to the Financial Statements (Unaudited)
For the Year Ended March 31 (continued)

4. Accounts Receivable and Advances

Accounts Receivable and Advances (in thousands of dollars)
  2011 2010
Receivables from other government departments and agencies $17,691 $165,202
Accounts receivable from external parties 30,820 51,878
Accrued receivables 18,094 18,993
Employee advances 60 74
Other receivables 136 6
  66,801 236,153
Allowance for doubtful accounts on receivables from external parties (25,092) (45,346)
  $41,709 $190,807

5. Loans

Loans (in thousands of dollars)
  2011 2010
Restated
(note 15)
Atlantic Provinces Power Development Act $ - $244
Enterprise development loans 110,000 110,000
Less: Unamortized discount loans
20,750 24,208
Net Enterprise development loans
89,250 85,792
Unconditionally repayable contributions 470,085 393,354
Less: Unamortized discount
133,414 467
Less: Allowance for doubtful loans and advances
3,218 3,253
Net unconditionally repayable contributions
333,453 389,634
Loans on expired loan guarantees 97,521 130,570
Less: Allowance for doubtful loans
97,521 (130,570)
Net loans on expired loan guarantees
- -
  $422,703 $475,670

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 electric energy. The loans bear interest at rates from 4.5% to 8.5% per annum and were repayable in annual instalments, with final instalments paid on March 31, 2011.

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 one interest-free loan outstanding, which is repayable at maturity on April 1, 2017.

Unconditionally repayable contributions — Loans have been made to various recipients under several programs managed by Industry Canada, including the Strategic Aerospace Defence Initiative (SADI), Technology Partnerships Canada (TPC) and the Defence Industries Productivity Program (DIPP). All have different repayment terms and maturity dates that are included in the individual agreement. 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

Tangible Capital Assets — Cost
(in thousands of dollars)
Capital asset class Opening balance Acquisitions Disposals and adjustments* Closing balance

*Includes primarily disposals, write-offs and adjustments. (Return to reference *)

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

Land 1,450 - - 1,450
Buildings 45,819 67 (1,211) 47,097
Works and infrastructure 6,291 - - 6,291
Machinery and equipment 67,926 2,143 378 69,691
Vehicles 12,696 701 1,684 11,713
Computer hardware 54,795 1,671 2,385 54,081
Computer software 37,316 350 (1,579) 39,245
Assets under construction** 22,821 8,344 3,081 28,084
Leasehold improvements 36,214 - - 36,214
Total $285,328 $13,276 $4,738 $293,866
Tangible Capital Assets — Accumulated Amortization
(in thousands of dollars)
Capital asset class Opening balance Amortization Disposals and adjustments* Closing balance

*Includes primarily disposals, write-offs and adjustments. (Return to reference *)

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

Land        
Buildings 22,895 1,750 - 24,645
Works and infrastructure 4,490 222 - 4,712
Machinery and equipment 45,866 3,980 541 49,305
Vehicles 8,732 1,176 1,584 8,324
Computer hardware 48,741 2,138 2,433 48,446
Computer software 28,002 4,559 323 32,238
Assets under construction** - - - -
Leasehold improvements 26,335 2,082 - 28,417
Total $185,061 $15,907 $4,881 $196,087
Tangible Capital Assets — Net Book Value
(in thousands of dollars)
Capital asset class 2011 2010
Restated
(note 15)

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

Land 1,450 1,450
Buildings 22,452 22,924
Works and infrastructure 1,579 1,801
Machinery and equipment 20,386 22,060
Vehicles 3,389 3,964
Computer hardware 5,635 6,054
Computer software 7,007 9,314
Assets under construction** 28,084 22,821
Leasehold improvements 7,797 9,879
Total $97,779 $100,267

7. Accounts Payable and Accrued Liabilities

Accounts Payable and Accrued Liabilities (in thousands of dollars)
  2011 2010
Restated
(note 15)
Accounts payable to other government departments and agencies $17,198 $23,202
Accounts payable to external parties 267,144 603,224
Year-end accrual — pending Budget Implementation Act 150,010 241,910
Accrued salaries and wages 1,667 -
Other external payables 39 242
  436,058 868,578
Accrued liabilities 1,200 266
  $437,258 $868,844

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

Deferred Revenue (in thousands of dollars)
  2011 2010
Opening balance $4,376,729 $4,957,325
Licence fees received 207,800 224,699
Licence fees earned (806,732) (801,855)
  (598,932) (577,156)
Fees for trademarks, patents and copyrights received 27,740 26,497
Fees for trademarks, patents and copyrights earned (31,159) (30,249)
  (3,419) (3,752)
Other services of a regulatory nature received 203 154
Other services of a regulatory nature earned (155) (303)
  48 (149)
Prime Minister's Awards received 100 6
Prime Minister's Awards disbursed - (116)
  100 (110)
Customer deposits received 65,312 67,212
Customer deposits disbursed (64,202) (66,641)
  1,110 571
Closing balance $3,775,636 $4,376,729

Notes to the Financial Statements (Unaudited)
For the Year Ended March 31 (continued)

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:

Other Liabilities (in thousands of dollars)
  Opening Balance Receipts Payments Closing Balance
Restitutions under the Competition Act 2 - - 2
Cost-sharing project 1,413 744 920 1,237
Securities in Trust, Bankruptcy and Insolvency Act 83 - - 83
Contra – Securities in Trust, Bankruptcy and Insolvency Act
(31) - - (31)
Unclaimed dividends and undistributed assets 20,216 3,000 1,377 21,839
Petro Canada Enterprises unclaimed shares 689 - - 689
Canada Business Corporations Act (CBCA) 8,976 193 184 8,985
Winding-up and Restructuring Act 1,300 608 - 1,908
Canada/Provinces Business Service Centre 132 400 505 27
  $32,780 $4,945 $2,986 $34,739

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 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

  1. Pension benefits

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

    Both the employees and Industry Canada contribute to the cost of the Plan. The 2010–11 expense amounts to $56,437,460 ($59,495,834 in 2009–10), which represents approximately 1.9 times (1.9 times in 2009–10) 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.

  2. 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:

    Employee Future Benefits — Severance benefit (in thousands of dollars)
      2011 2010
    Restated
    (note 15)
    Accrued benefit obligation, beginning of year $87,487 $95,070
    Expense for the year 14,149 3,892
    Benefits paid during the year (9,384) (10,480)
    Adjustment for transferred operations (note 15) - (995)
    Accrued benefit obligation, end of year $92,252 $87,487

11. Contingent Liabilities

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

  1. Claims and litigation

    Claims have been made against Industry Canada in the normal course of operations. There are a number of claims pending at March 31, 2011, for which a reasonable estimate of the potential liability cannot be determined (Nil, adjusted in 2009–10). 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.

  2. Loan guarantees

    Industry Canada has guaranteed the following debts:

    Contingent Liabilities — Loan guarantees (in thousands of dollars)
      Authorized Limit Loan Guarantee Outstanding Balance
    Enterprise Development Program $1,200,000 $212
    Small Business Loans Act (SBLA) 1,838,292 243
    Canada Small Business Financing Act (CSBFA) 1,678,701 687,975
    Capital Leasing Pilot Project 15,661 4,691
    Regional Aircraft Credit Facility 1,500,000 137,816

    An allowance of $360,023,196 has been recorded for estimated losses on outstanding loan guarantees ($376,699,601 in 2009–10). 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 Loans Act (SBLA) Program and Canada Small Business Financing Act (CSBFA) Program — Loans are made directly by approved lenders to small business enterprises, providing for sharing of each individual loan loss, if any, on the basis of 85% government, 15% lender, to an aggregate, per lending institution not exceeding the Minister's contingent liability, as stated in Section 5 of the SBLA and Section 6(2) of the CSBFA.

The authorized limit represents the Crown's maximum liability incurred on the aggregate amount of loans made by the lender starting in April 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's 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's contingent liability based upon the aggregate amount of leases registered per leasing institution, as stated in Section 7 of the CLPP.

The authorized limit represents the Crown's maximum liability incurred on the aggregate amount of the capital leases having been entered 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's 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:

Contractual Obligations(in thousands of dollars)
  2012 2013 2014 2015 2016 and thereafter Total
Transfer payments $847,610 591,610 439,855 224,767 254,093 $2,357,935
Other goods
and services
84,123 14,027 7,963 6,338 5,691 118,142
Other 49,026 - - - - 49,026
  $980,759 605,637 447,818 231,105 259,784 $2,525,103

Notes to the Financial Statements (Unaudited)
For the Year Ended March 31 (continued)

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.

  1. 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 coverage. These services provided without charge have been recorded in Industry Canada's Statement of Operations as follows:

    Related Party Transactions — Common services provided without charge by other government departments (in thousands of dollars)
      2011 2010
    Restated (note 15)
    Accommodation $55,713 $55,694
    Employer's contribution to the health and dental insurance plans 29,054 28,133
    Workers' compensation coverage 455 514
    Legal services 3,202 3,723
      $88,424 $88,064

    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.

  2. Administration of programs on behalf of other government departments

    Under a memorandum of understanding signed with National Defence on December 11, 1997, Industry Canada administers a program called Development, Test, and Evaluation and Technical Services Activities. During the year, Industry Canada incurred expenses of $3,510,669 ($3,049,742 in 2009–10) on behalf of National Defence. These expenses are reflected in the financial statements of National Defence and are not recorded in these financial statements.

    Under a memorandum of understanding signed with Infrastructure Canada on February 22, 2005, Industry Canada administered the Canada Strategic Infrastructure Funds program in Ottawa until March 31, 2010. During 2009–10, Industry Canada incurred expenses of $95,755,732 on behalf of Infrastructure Canada. These expenses are reflected in the financial statements of Infrastructure Canada and are not recorded in these financial statements.

  3. Other transactions with related parties
    Related Party Transactions — Other transactions with related parties (in thousands of dollars)
      2011 2010
    Expenses — Other government departments and agencies $123,773 $133,767
    Revenues — Other government departments and agencies 14,401 13,717

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 expenses and by major type of revenues. The segment results for the period are as follows:

Segmented Information (in thousands of dollars)
  The Canadian Marketplace is Efficient and Competitive Science and Technology, Knowledge, and Innovation are Effective Drivers of a Strong Economy Competitive Businesses are Drivers of Sustainable Wealth Creation Internal
Services
2011
Total
2010
Total
Restated
(note 15)
Expenses
Transfer payments
Economic Action Plan
$ - 809,685 79,588 - $889,273 $1,159,103
Non-Economic Action Plan
8,030 325,437 106,445 - 439,912 390,499
Total transfer payments 8,030 1,135,122 186,033 - 1,329,185 1,549,602
Operating expenses
Salaries and employee benefits
286,711 65,784 63,791 147,396 563,682 557,105
Professional and special services
44,259 8,559 13,252 27,135 93,205 102,959
Accommodation
27,384 2,154 3,331 22,844 55,713 55,694
Travel
8,819 1,591 2,296 2,620 15,326 16,188
Amortization
8,500 4,193 662 2,552 15,907 16,245
Communication
4,331 868 1,773 5,103 12,075 13,830
Furniture and equipment
4,415 2,279 370 4,993 12,057 14,441
Equipment repair and maintenance
3,634 1,726 113 6,797 12,270 11,700
Rental
9,699 226 375 585 10,885 10,961
Utilities, materials and supplies
2,301 3,193 879 1,175 7,548 8,660
Postage
1,000 1,165 121 457 2,743 1,895
Loss on disposal of capital assets
5 50 11 - 66 10,326
Bad debt expense
7 1,079 3,722 - 4,808 13,647
Other operating expenses
(166) 225 (1,025) (4,435) (5,401) (1,598)
Total operating expenses 400,899 93,092 89,671 217,222 800,884 832,053
Total expenses 408,929 1,228,214 275,704 217,222 2,130,069 2,381,655
Revenues
Radio spectrum licences
825,282 - - - 825,282 822,633
Sales of services
218,058 12,928 52,918 3 283,907 281,307
Revenue from fines
11,188 - - - 11,188 13,342
Amortization of discounts
- - 3,458 318 3,776 3,776
Other revenue
212 782 274 74 1,342 1,848
Gains on disposals of assets
231 30 3 11 275 190
Total revenues 1,054,971 13,740 56,653 406 1,125,770 1,123,096
Net cost from continuing operations $(646,042) $1,214,474 $219,051 $216,816 $1,004,299 $1,258,559

15. Transfers to Other Government Departments (prior-year adjustment)

Effective August 13, 2009, responsibility for the Southern Ontario Regional Economic Development Branch was transferred to the newly created Federal Economic Development Agency for Southern Ontario in accordance with Order-in-Council P.C. 2009-1411, including the stewardship responsibility for the assets and liabilities related to the program. Due to the timing and the logistical requirements for creating a new department, the Federal Economic Development Agency for Southern Ontario remained consolidated within Industry Canada financial records for the purpose of Public Accounts reporting until April 1, 2010. Fiscal year 2009–10 as reported in these financial statements and accompanying notes has been restated to reflect the transfer of assets and liabilities to the Federal Economic Development Agency for Southern Ontario as at August 13, 2009.

Transfers from/to other government departments (in thousands of dollars)
  2010
Assets
Tangible capital assets (net book value) (note 6)
$75
  75
Liabilities
Vacation pay and compensatory leave
64
Employee future benefits (note 10)
995
  1,059
Adjustment to Equity of Canada $(984)

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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, 2011

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 and assess key risks and the effectiveness of the associated key controls and to adjust them as required, as well as to monitor the system's performance in support of continuous improvement. As a result, the scope, pace and status of those departmental assessments of the effectiveness of their systems 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's Statement of Management Responsibility Including Internal Control over Financial Reporting for the fiscal year 2010–11. As required by the Treasury Board Policy on Internal Control, effective April 1, 2009, this second published annex by the Department 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, 2011, 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's 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's 2010–11 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 six 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 $2.13 billion. Transfer payments comprise the majority followed by salaries.
  • Total revenues were $1 billion, largely from the recognition of deferred radio spectrum revenue but also including sales of services and fines.
  • Tangible capital assets comprise 11% of departmental total assets.
  • Deferred revenue comprises 80% of total liabilities while accounts payable and accrued liabilities comprise 9% of total liabilities.

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 (PWGSC) centrally administers the payments of salaries and the procurement of goods and services, as per the Department's Delegation of Authority.
  • The Treasury Board Secretariat provides Industry Canada with information used to calculate various accruals and allowances, such as accrued severance liability.
  • The Department of Justice provides legal services to Industry Canada.

1.4 Material Changes in Fiscal Year 2010–11

During fiscal year 2010–11, the following changes to the control environment at Industry Canada took place:

  • Federal Economic Development Agency for Southern Ontario (FedDev Ontario) has been removed from the departmental financial statements, including all assets and liabilities associated with that organization.
  • There was an upgrade to the departmental financial system. No changes to the control environment with respect to ICFR effectiveness have been identified.

2. Industry Canada's Control Environment Relative to ICFR

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

  • a control environment designed to achieve effective ICFR;
  • an effective risk-assessment process that identifies, analyzes and manages risks related to financial reporting within a broader corporate risk-management framework;
  • an effective information system and communications that identify, capture and communicate timely information relevant to maintain the system of ICFR to 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

Below are Industry Canada's key positions and committees with responsibilities for maintaining and reviewing the effectiveness of the system of ICFR:

Industry Canada's key positions and committees
Position Responsibilities
Deputy Head Industry Canada's Deputy Head, as Accounting Officer, assumes overall responsibility and leadership for the measures taken to maintain an effective system of internal controls.
Chief Financial Officer (CFO) Industry Canada's 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.
Senior Departmental Managers Industry Canada's 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's 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's risk-management, control and governance frameworks. It is composed of 4 external members and was established in 2007. As such, it provides views on the 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.

Key measures include:

  • an Office of Values and Ethics under the Deputy Head;
  • Industry Canada's code of conduct and values and ethics code;
  • a division under the CFO dedicated to quality assurance and 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's control environment;
  • regularly updated delegated authorities matrices;
  • 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;
  • an executive learning plan for key employees;
  • electronic specimen signature cards for delegated financial signing authorities, housed within the departmental financial system.

3. Assessment of Industry Canada's System of ICFR

3.1 Overall Assessment Approach

In support 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 followed.

This includes an assessment of the design and operating effectiveness of the system of ICFR. Assessment of process design effectiveness ensures that key control points are 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 means that the application of key controls has been tested over a defined period and that any required remediation is addressed. Such testing covers all departmental control levels that include corporate or entity, general computer and business process controls.

Ongoing monitoring and continuous improvement of the departmental system of ICFR continues to be an important aspect of Industry Canada's approach.

3.2 Overall Assessment Scope at Industry Canada

Industry Canada has completed an assessment of its system of ICFR, starting from its financial statements, with a focus on the following main accounts:

  • 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 (over three fiscal years) at all three levels of ICFR.

Industry Canada is now following a rotational ongoing monitoring schedule to ensure that all ICFR systems remain up to date and effective. Process documentation, including narratives and descriptions of all key controls, are updated and revalidated on a semi-annual basis by process owners.

4. Assessment Results During 2010–11

Industry Canada has completed its first year of rotational ongoing testing of controls. The following business processes were assessed during the fiscal year 2010–11:

  • Transfer payments
  • Operating expenses
  • Salaries and benefits

In addition to effectiveness testing for these business processes, a new transfer payment program was documented and key controls identified.

4.1 Design Effectiveness of Key Controls

During the fiscal year, Industry Canada completed the process of documenting key financial controls around the Broadband transfer payment program that began in 2009–10 under the Economic Action Plan. With the collaboration of program officials, a transfer payment process narrative was produced and key controls for financial reporting were identified. Testing is planned for fiscal year 2011–12.

4.2 Operating Effectiveness of Key Controls

A summary of findings from testing of specified business processes during the fiscal year are below.

4.2.1 Transfer Payments

Testing of transfer payment programs shows that no significant adjustments to processes are required. The following are items identified for remediation:

  • In a few instances, technical delegation errors for expenditure initiation were made by individuals in acting positions.
  • System access to the grants and contributions management system should be reviewed on a more regular basis, in accordance with the documented controls.
  • Evidence of file review and validation is present before contract agreements are completed but not always formalized with a signature or a completed checklist.
  • Minor changes to program business processes for transfer payments were not reflected in the semi-annual business process narrative update.
4.2.2 Operating Expenses

Overall, the key controls for the operating expense business process are functioning as intended with the following exceptions:

  • In a few cases, the process narrative did not reflect the current process and, as a result, some key controls were found to be functioning differently than originally recorded on the process narrative. Changed processes were evaluated during testing and were found to be designed appropriately. Testing of the changed controls will occur during the next rotational testing of operating effectiveness.
  • Evidence of system access review was not always available.
4.2.3 Salaries and Benefits

The controls surrounding the payroll business process were found to be effective. Testing for this process will continue in accordance with the departmental rotational ongoing monitoring Plan.

5. Industry Canada's Action Plan

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

Industry Canada will continue the ongoing monitoring and rotational testing 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 control process changes occur, 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.

5.1 Progress as of March 31, 2011

Industry Canada's goal to continuously monitor internal controls over its system of ICFR was substantially advanced during the fiscal year, as planned. A rotational operating effectiveness testing plan was created and initiated and resulted in successful re-assessments of internal controls for key business processes. Remedial items will be assessed as rotational testing continues.

5.2 Action Plan for 2011–12 and for Subsequent Years

Ongoing monitoring and rotational plans for fiscal year 2011–12 include testing of general computer controls, an assessment of entity-level controls and business process testing as follows: revenue, transfer payments, capital assets and year-end close.

The results of this testing will be published in this annex and Industry Canada will continue to analyze and refine documentation and procedures surrounding internal controls over financial reporting.

Following is the ongoing monitoring plan for Industry Canada. Control testing is expected to complete its rotation every three fiscal years.

Rotational Ongoing Operating Effectiveness Testing for Internal Control over Financial Reporting
    Operating Effectiveness Testing Rotation
Business Process Internal Control over Financial Reporting 2010–11 2011–12 2012–13
Grants and contributions (tested once each fiscal year) Knowledge Infrastructure Program Yes Yes N/A
Marquee Tourism Events Program Yes Yes N/A
Industrial Technologies Office Yes Yes Yes
National Access Program Branch Yes Yes Yes
One-time Payment Yes Yes Yes
Broadband N/A Yes Yes
Structured Financing Facility Yes Yes Yes
Bombardier expenditures N/A N/A Yes
Operating (tested once every 2 fiscal years) Operating expenditures Yes No Yes
Capital expenditures No Yes No
Financial close No Yes No
Master data – vendors/customers No Yes No
Payroll Yes No Yes
Revenue (tested once every 2 fiscal years) Competition Bureau No Yes No
Corporations Canada No Yes No
Communications Research Canada No Yes No
Office of the Superintendent of Bankruptcy No Yes No
Canada Small Business Financing Program No Yes No
Spectrum Information Technologies and Telecommunications No Yes No
Entity level (tested once every 3 years) Entity-level controls No Yes No
General computer controls (tested once every 3 fiscal years) Enterprise systems No Yes No
BIMS (revenue system) No Yes No
Nucleus (revenue system) No Yes No
CSBFP (grants and contribution system) No Yes No

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