Performance Report as of March 31, 2015

By Canada Economic Development for Quebec Regions

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About this publication

Publication author : Canada Economic Development for Quebec regions

ISSN number : 1490-7380

Catalog number : Iu90-1/13E-PDF

Publish date : January 25, 2016

Summary :

This report deals with Canada Economic Development's principal achievements in regards to its engagements towards the Parliament

Ministers' Message

We are pleased to present this report on the key activities of Canada Economic Development for Quebec Regions in 2014–15.

Our overarching goals within the Innovation, Science and Economic Development portfolio are to help Canadian businesses grow, innovate and export so that they can spur economic development and create good quality jobs and wealth for Canadians in all regions across the country; to help small businesses grow through trade and innovation; to promote increased tourism to Canada; to promote and support scientific research and the integration of scientific considerations in our investment and policy choices. We are committed to working closely with colleagues and stakeholders from all of these diverse fields to achieve these objectives.

We are pleased to present the 2014-15 Departmental Performance Report for Canada Economic Development for Quebec Regions.

Section I - Organizational Expenditure Overview

1.1 Organizational Profile

1.2 Organizational Context

1.2.1 Raison d’être and Responsibilities

As part of its mission, CED promotes the startup and performance of businesses. It helps them become more competitive, productive, innovative and active on markets in Canada and elsewhere. It supports communities’ engagement efforts in the different regions of Quebec and helps attract investment that will increase the prosperity of the Quebec and Canadian economies.

CED thus contributes to the economic vitality of all Quebec regions, by paying special attention to communities with low economic growth, as stipulated in its enabling Act. In this respect, CED uses an Economic Development Index^Endnote3 which allows it, among other things, to determine the economic development levels of Quebec’s 104 communities^Endnote4 in order to meet needs effectively.

CED works with businesses, primarily small and medium-sized enterprises (SMEs), as well as non-profit organizations (NPOs), through its business offices.^Endnote5 By providing financial assistance for projects, among other things, CED supports their development efforts.

CED’s approach is inspired by the best practices identified with respect to regional economic development.^Endnote6 It is:

• consistent with government priorities and national strategies in line with its object and anticipated results;
• geared to the economic issues and challenges of Quebec’s enterprises and its different regions by building on their assets and potential; and
• collaborative with economic agents, such as local partners, other federal departments and agencies, the Quebec government and municipal organizations.

CED’s Grants and Contributions Programs and Initiatives, in effect 2014–15^Endnote7

1.2.2 Strategic Outcome and Program Alignment Architecture

This report is structured according to CED’s Program Alignment Architecture (PAA), which came into effect on April 1, 2012.^Endnote9 The following list presents the complete framework of CED’s four programs and seven sub-programs,^Endnote10the links among them, and the strategic outcome to which they contribute.

• 1. Strategic Outcome: Quebec’s regions have a growing economy
  • 1.1 Program: Business Development
    • 1.1.1 Sub-program: Entrepreneurship Support
    • 1.1.2 Sub-program: Business Performance
  • 1.2 Program: Regional Economic Development
    • 1.2.1 Sub-program: Regional Engagement
    • 1.2.2 Sub-program: Regional Investment
  • 1.3 Program: Strengthening Community Economies
    • 1.3.1 Sub-program: Community Futures Program
    • 1.3.2 Sub-program: Infrastructure Modernization
    • 1.3.3 Sub-program: Targeted and/or Temporary Support
  • 1.4 Program: Internal Services

1.2.3 Organizational Priorities

Priorities represent the areas on which CED has decided to focus, but do not exclude the execution of activities in other areas of the PAA. They are established on the basis of Government of Canada priorities, departmental targeted results and risks, and the economic challenges of Quebec’s different regions. During FY 2014–15, CED implemented the following three priorities, which are in line with those presented in its most recent Reports on Plans and Priorities (RPPs):

1.2.4 Risk Analysis

The main external risk likely to affect the fulfilment of CED’s mandate is linked to changes in the Quebec, Canadian and global economies.

The table below presents this risk, associated response strategies, and the link to the PAA and organizational priorities.

1.3 Actual Expenditures

This section provides an overview of financial and human resources, along with a summary table portraying CED’s performance in 2014–15.

For 2014–15, CED spent $253.9 million out of a possible $256.8 million, or 99% of the authorities.

During the year, CED had to adjust in order to meet Government priorities and the challenges and issues facing Quebec enterprises and communities. In 2014–15, it approved 731 new projects, up 13% from the previous year. CED also implemented new initiatives which contribute to strengthening the economy of communities and regions through targeted and/or temporary support.

CED successfully met its commitments and priorities while remaining within its operating budget. Thus, it had to adapt the allocation of its resources as planned in the RPP 2014–15 among the programs in its PAA. The Strengthening Community Economies and Internal Services programs were in greater demand than had been anticipated for FY 2014–15.

1.4 Alignment of Spending With the Whole-of-Government Framework

1.5 Departmental Spending Trend

The figure below shows CED’s actual and planned spending trend. The light grey bar corresponds to G&C expenditures and operating expenditures under its regular programs,^Endnote17 while the dark grey bar indicates those associated with sunset programs.^Endnote18

Figure 1: Actual Spending^Endnote19 and Planned Spending^Endnote20 Trend, April 1, 2012 to March 31, 2018

Figure 1 presents actual spending from 2012–13 to 2014–15, and planned spending from 2015–16 to 2017–18.

With regard to actual expenditures, the figure above shows a 14% drop in CED’s spending between 2012–13 and 2014–15, from $296 million to $254 million. The largest decline was from 2012–13 to 2013–14. The variation may be explained by, among other things, the termination of the Temporary Initiative for the Strengthening of Quebec’s Forest Economies (TISQFE) and the Support Initiative for International Cruise Development Along the St. Lawrence and Saguenay Rivers. The decline in sunset program budgets from 2013–14 to 2014–15 is largely attributable to the termination of the Community Infrastructure Improvement Fund program.

With respect to CED’s planned spending, the $7-million rise in expenditures from 2014–15 ($233.4 million) to 2015–16 ($240 million) is primarily attributable to increased reinvestment of revenues from clients’ contribution repayments. The same adjustment is not included in planned spending for 2016–17 and 2017–18, since the authorities have not been granted at this stage.

The variation in CED’s sunset programs from 2015–16 to 2017–18 is explained by the variability in funding levels from year to year for the various planned initiatives, including in particular the Economic Recovery Initiative for Lac Mégantic and the Canadian Initiative for the Economic Diversification of Communities Reliant on Chrysotile.

1.6 Expenditures by Vote

For information on CED’s voted appropriations and/or statutory expenditures, please consult the Public Accounts of Canada 2015^Endnoteii on the Public Works and Government Services Canada website.^Endnoteiii

Section II : Analysis of Programs by Strategic Outcome

This section provides information on the results of the Economic Development Agency of Canada for the Regions of Quebec (CED) for 2014–15 in relation to planned outcomes, on the basis of its Program Alignment Architecture (PAA), as illustrated below.^Endnoteiv

2.1 Strategic Outcome (SO): Quebec’s regions have a growing economy

2.2 Program 1.1 – Business Development

Description

This program (P) is designed to support enterprises throughout their life cycle so as to sustain Quebec’s economic growth. Businesses, small and medium-sized enterprises (SMEs) in particular, are an engine of economic development. They are recognized as generating a significant share of economic activity and creating employment in communities.

The Economic Development Agency of Canada for the Regions of Quebec (CED) contributes to the renewal of the pool of enterprises in Quebec by supporting the emergence of new enterprises and business succession. CED also works to increase the competitiveness of existing enterprises and support their survival by enhancing their performance. It does so by supporting projects that enable enterprises to modernize, expand, launch or extend their export activities, reinforce their innovation capability, commercialize, and establish partnerships.

In this program, CED intervenes primarily in relation to enterprises, either directly or through non-profit organizations providing support for enterprises and entrepreneurs. It promotes business development through a grants and contributions program, the Quebec Economic Development Program (QEDP).

2.2.1 Sub-program 1.1.1 – Entrepreneurship Support

Description

This sub-program (SP) is aimed at increasing the pool of enterprises in Quebec, where entrepreneurial dynamism is lower than in the rest of Canada.^Endnote36 CED hopes to boost entrepreneurial dynamism throughout Quebec. It does so by encouraging business pre-startups and startups, and by supporting the survival of existing enterprises through succession planning and business transfers.

In this sub-program, CED provides support primarily to enterprises or non-profit organizations that support enterprises and entrepreneurs, such as entrepreneurship centres, incubators, and transfer and spinoff organizations. It contributes to entrepreneurship support through its grants and contributions program, the QEDP.

2.2.2 Sub-program 1.1.2 – Business Performance

Description

The goal of this sub-program (SP) is to increase Quebec enterprises’ performance and competitiveness. The productivity of the Quebec economy is lower than the average for the rest of Canada,^Endnote41 and productivity gains can be achieved among other things through investment carried out by Quebec enterprises.

In fact, in the context of growing global competition, Quebec enterprises wishing to develop or ensure their survival have to innovate and convert their ideas into business opportunities, enhance their productivity and penetrate new markets.

CED accompanies enterprises from the different regions of Quebec to help them meet these challenges. It does so by encouraging them to invest to optimize their production and increase their efforts with respect to innovation, technology transfer, commercialization and exports. CED also assists in the structuring of business networks in which enterprises operate.

CED’s intervention in this sub-program is aimed primarily at enterprises and non-profit organizations that support enterprises. It helps business performance through a grants and contributions program, the QEDP.

2.3 Program 1.2 – Regional Economic Development

Description

This program (P) is intended to strengthen the regions’ economic base so as to sustain the growth of Quebec’s economy. Quebec’s regions differ in, among other things, their industrial structure, and some are more sensitive to economic fluctuations. Quebec’s prosperity depends on the participation of the different regions in the economy to their full potential.

CED wishes to contribute to building strong, competitive regions. It does so by supporting local communities as they take charge of their economic development, and by stimulating investment in all Quebec regions.

In this program, CED intervenes primarily through non-profit organizations active in economic development. It supports regional economic development through a grants and contributions program, the QEDP.

2.3.1 Sub-program 1.2.1 – Regional Engagement

Description

This sub-program (SP) is aimed at supporting local communities as they take charge of their development so as to strengthen the economic base of Quebec’s regions. Local empowerment with regard to local economic development and the synergy with which stakeholders interact are success factors in eliciting the establishment of growth-generating projects.

CED sustains the growth and diversification of Quebec communities by supporting engagement and joint action by the various stakeholders, planning of their economic development, canvassing, pursuit of funding and implementation of structuring, recovery or diversification initiatives.

In this sub-program, CED intervenes primarily through non-profit organizations with an economic role. It supports Regional Engagement through a grants and contributions program, the QEDP.

2.3.2 Sub-program 1.2.2 – Regional Investment

Description

This sub-program (SP) is aimed at increasing investment in the different regions of Quebec so as to strengthen their economic activity base. Quebec’s regions are faced with global competition, and have to stand out to attract investment needed to maximize their economic growth.^Endnote57

Quebec must build on its current strengths, such as access to the North American market, a diversified economy, niches of excellence, skilled workers, an enviable quality of life, abundant resources, a distinctive tourism offering, and more besides.

CED supports regions in their efforts to acquire the equipment necessary to harness their assets in order to stimulate business and generate economic spinoffs. It also does so by enhancing promotion of regional assets with a view to increasing tourist spending and the attraction of foreign direct investment through foreign firms and international organizations.

In this sub-program, CED focusses on non-profit organizations. It supports Regional Investment through a grants and contributions program, the QEDP.

2.4 Program 1.3 – Strengthening Community Economies

Description

In addition to its regular programs, CED develops, administers and implements Canada-wide programs or targeted and/or temporary initiatives. The common objective is strengthening community economies, in order to increase Quebec’s economic growth.

CED thus supports communities’ economic development and ensures sound, effective management of infrastructure programs in Quebec. CED also supports economic activity in Quebec communities that are sustaining economic shocks, experiencing significant development challenges, or grasping long-term business opportunities.

This program is directed at enterprises and non-profit organizations. CED uses dedicated, temporary or permanent additional funding from the Government of Canada, or specific funds which it allocates via the QEDP. It also intervenes by means of a permanent fund dedicated to the Community Futures Program (CFP).

2.4.1 Sub-program 1.3.1 – Community Futures Program (CFP)

Description

This sub-program (SP) is aimed at assisting local economic development in rural areas in order to strengthen the economy of Quebec communities. It implements a national program also called the Community Futures Program (CFP).

The CFP plays an important role in strengthening rural communities’ ability to diversify their economic base so as to foster long-term prosperity and sustainability.

Through the CFP, CED encourages Quebec rural communities’ planning and socioeconomic development, access to capital, availability of consulting services and support for local projects.

CED delivers the CFP in Quebec with the help of Community Futures Development Corporations and Business Development Centres, under contribution agreements.

2.4.2 Sub-program 1.3.2 – Infrastructure Modernization

Description

This sub-program (SP) is aimed at ensuring sound and effective management of infrastructure programs in order to strengthen the economy of Quebec’s communities. Quality public infrastructure is a key factor in economic development.

CED acts as Infrastructure Canada’s delivery partner for the administration in Quebec of the Building Canada Fund (Communities and Large Urban Centres components).^Endnote72

These programs are the subject of agreements between Infrastructure Canada and the Quebec government and are aimed primarily at municipalities.

2.4.3 Sub-program 1.3.3 – Targeted and/or Temporary Support

Description

This sub-program (SP) is aimed at providing targeted and/or temporary support for Quebec communities’ economic activity in order to stabilize or strengthen their economies. The shifting context requires a real-time response that is geared to the most pressing local needs and consistent with specific government priorities.

CED can thus provide support for Quebec communities facing economic shocks, natural disasters or situations that can have an adverse impact on their economic development, and that are facing serious economic development issues or are presented with development opportunities likely to have a positive impact on the regions.

This sub-program is aimed primarily at enterprises and NPOs. CED intervenes through temporary or dedicated additional funding from the Government of Canada or specific funds which the Agency allocates through a grants and contributions program, the QEDP.

2.5 Program 1.4 – Internal Services

Description

Internal services are groups of related activities and resources that are administered to support the needs of programs and other corporate obligations of an organization. The groups are: Management and Oversight Services; Communications Services; Legal Services; Human Resources Management Services; Financial Management Services; Information Management Services; Information Technology Services; Real Property Management Services; Materiel Management Services; Acquisition Management Services; Travel Management Services and Other Administrative Services. Internal services include only those activities and resources that apply across an organization, and not those provided to a specific program. They lead to higher efficiency in program delivery, thus contributing to quality services for Canadians.

Section III - Supplementary Information

3.1 Financial Statements Highlights

The financial highlights presented below provide an overview of the financial position and operations of Canada Economic Development for Quebec Regions (CED). The unaudited financial statements are drawn up in accordance with government accounting policies, which are based on Canadian generally accepted accounting principles for the public sector.

Note that the spending presented in the tables in Sections I and II of the Report were prepared on a cash basis, while the financial highlights that follow were prepared on an accrual basis. Tables reconciling these two accounting methods are presented in the Notes to CED’s financial statements.

A more detailed statement of operations and associated notes, including a reconciliation of the net costs of operations to the requested authorities, can be found on the CED’s website.^Endnote83

3.1.1 Condensed Statement of Operations

Expenses

• In 2014–15, CED’s total expenses stood at $151.4 million, down $33.4 million (18.1%) from the previous year. This decrease is primarily attributable to the termination of funding for the Community Infrastructure Improvement Fund in 2013–14 and the increase in expenses incurred on the Government’s behalf.
• In fact, transfer payment expenses, totalling $105.4 million, fell by 22.8% from 2013–14 to 2014–15, while operating expenses also declined, by 4.7%, to $46.0 million as of March 31, 2015.
• The difference of some $22.5 million in the value of net expenses is attributable in particular to a decline in non-repayable contributions compared with projected figures, and to higher-than-anticipated expenses incurred on the Government’s behalf owing to a variation in the provision for bad debts. Expenses incurred on the Government’s behalf reduce CED’s expenses, since CED presents net expenses in its financial statements.

Revenues

• Being returned to the Consolidated Revenue Fund, CED’s revenues are declared in its financial statements as having been earned on the Government’s behalf, so the organization’s total net revenues are zero. In 2014–15, CED’s total gross revenues stood at $294,123, down 55.2% from the previous year. Revenues primarily comprise interest charged on missed payments.

3.1.2 Condensed Statement of Financial Position

Liabilities

• As of March 31, 2015, CED’s net liabilities stood at $35.6 million, up 5.9% from the total in 2013–14. This increase is largely attributable to the rise in net accounts payable.
• Accounts payable and accrued liabilities represented the largest component of liabilities, at 90.9% ($32.3 million) of net total liabilities, while future fringe benefits along with vacation pay and compensatory leave accounted for 5.3% ($1.9 million) and 3.8% ($1.4 million) of the organization’s net liabilities, respectively.

Assets

• As of March 31, 2015, net financial assets stood at $32.3 million, up 6.3% from the previous year’s total. This rise is attributable to the increase in amounts due from the Consolidated Revenue Fund (fringe benefits and accrued liabilities).
• Also, CED’s loans held entirely on behalf of the government totalled $283.8 million as of March 31, 2015, up 2.7% from 2013–14 owing to the increase in repayable contributions paid by the organization.
• Furthermore, CED’s non-financial assets stood at $1.1 million as of March 31, 2015, up 33.3% from the previous year. This increase is primarily attributable to the rise in capital asset acquisitions.

3.2 Financial Statements

CED’s unaudited financial statements for the fiscal year ending March 31, 2015 and the Core Control Audit report produced by the Office of the Comptroller General of Canada along with the related Management Action Plan are available on CED's website.^Endnotex

3.3 Supplementary Information Tables

The supplementary information tables listed in the Departmental Performance Report 2014–15 can be found on CED's website.^Endnote85

• Departmental Sustainable Development Strategy;
• Details on Transfer Payment Programs;
• Internal Audits and Evaluations;
• Response to Parliamentary Committees and External Audits;
• User Fees, Regulatory Charges and External Fees;
• Appendix 1 – Technical Notes on Performance Data.

3.4 Tax Expenditures and Evaluations

The tax system can be used to achieve public policy objectives through the application of special measures, such as low tax rates, exemptions, deductions, deferrals and credits. The Department of Finance Canada publishes cost estimates and projections for these measures annually in Tax Expenditures and Evaluations.^Endnotexi. The tax measures presented in that publication are the sole responsibility of the Minister of Finance.

Section IV : Organizational Contact Information

Additional Information

The following information may be found on CED’s website:

• CED Programs
• CED Organizational Chart
• CED Business Offices
• CED Project Submission Guide

Appendix - Definitions

Appropriation:
Any authority of Parliament to pay money out of the Consolidated Revenue Fund.

Budgetary Expenditures:
Include operating and capital expenditures; transfer payments to other levels of government, organizations or individuals; and payments to Crown corporations.

Departmental Performance Report:
Reports on an appropriated organization’s actual accomplishments against the plans, priorities and expected results set out in the corresponding Reports on Plans and Priorities. These reports are tabled in Parliament in the fall.

Full-time Equivalent:
Is a measure of the extent to which an employee represents a full person-year charge against a departmental budget. Full-time equivalents are calculated as a ratio of assigned hours of work to scheduled hours of work. Scheduled hours of work are set out in collective agreements.

Government of Canada Outcomes:
A set of 16 high-level objectives defined for the government as a whole, grouped in four spending areas: economic affairs, social affairs, international affairs and government affairs.

Management, Resources and Results Structure:
A comprehensive framework that consists of an organization’s inventory of programs, resources, results, performance indicators and governance information. Programs and results are depicted in their hierarchical relationship to each other and to the Strategic Outcome(s) to which they contribute. The Management, Resources and Results Structure is developed from the Program Alignment Architecture.

Non-Budgetary Expenditures:
Include net outlays and receipts related to loans, investments and advances, which change the composition of the financial assets of the Government of Canada.

Performance:
What an organization did with its resources to achieve its results, how well those results compare to what the organization intended to achieve and how well lessons learned have been identified.

Performance Indicator:
A qualitative or quantitative means of measuring an output or outcome, with the intention of gauging the performance of an organization, program, policy or initiative respecting expected results.

Performance Reporting:
The process of communicating evidence-based performance information. Performance reporting supports decision making, accountability and transparency.

Planned Spending:
For Reports on Plans and Priorities (RPPs) and Departmental Performance Reports (DPRs), planned spending refers to those amounts that receive Treasury Board approval by February 1. Therefore, planned spending may include amounts incremental to planned expenditures presented in the Main Estimates. A department is expected to be aware of the authorities that it has sought and received. The determination of planned spending is a departmental responsibility, and departments must be able to defend the expenditure and accrual numbers presented in their RPPs and DPRs.

Plans:
The articulation of strategic choices, which provides information on how an organization intends to achieve its priorities and associated results. Generally a plan will explain the logic behind the strategies chosen and tend to focus on actions that lead up to the expected result.

Priorities:
Plans or projects that an organization has chosen to focus and report on during the planning period. Priorities represent the things that are most important or what must be done first to support the achievement of the desired Strategic Outcome(s).

Program:
A group of related resource inputs and activities that are managed to meet specific needs and to achieve intended results and that are treated as a budgetary unit.

Program Alignment Architecture:
A structured inventory of an organization’s programs depicting the hierarchical relationship between programs and the Strategic Outcome(s) to which they contribute.

Report on Plans and Priorities:
Provides information on the plans and expected performance of appropriated organizations over a three-year period. These reports are tabled in Parliament each spring.

Results:
An external consequence attributed, in part, to an organization, policy, program or initiative. Results are not within the control of a single organization, policy, program or initiative; instead they are within the area of the organization’s influence.

Statutory Expenditures:
Expenditures that Parliament has approved through legislation other than appropriation acts. The legislation sets out the purpose of the expenditures and the terms and conditions under which they may be made.

Strategic Outcome:
A long-term and enduring benefit to Canadians that is linked to the organization’s mandate, vision and core functions.

Sunset Program:
A time-limited program that does not have an ongoing funding and policy authority. When the program is set to expire, a decision must be made whether to continue the program. In the case of a renewal, the decision specifies the scope, funding level and duration.

Target:
A measurable performance or success level that an organization, program or initiative plans to achieve within a specified time period. Targets can be either quantitative or qualitative.

Voted Expenditures:
Expenditures that Parliament approves annually through an Appropriation Act. The Vote wording becomes the governing conditions under which these expenditures may be made.

Whole-of-Government Framework:
Maps the financial contributions of federal organizations receiving appropriations by aligning their Programs to a set of 16 government-wide, high-level outcome areas, grouped under four spending areas.

Endnotes

Supplementary Information Tables

All electronic supplementary information tables listed in the 2014–15 Departmental Performance Report can be found on the CED website.

• Departmental Sustainable Development Strategy;
• Details on Transfer Payment Programs;
• Internal Audits and Evaluations;
• Response to Parliamentary Committees and External Audits;
• User Fees Reporting;
• Appendix 1: Methodology and Technical Notes on Performance Data and Performance Status Rating

Departmental Sustainable Development Strategy

1. Overview of the Federal Government’s Approach to Sustainable Development

The Federal Sustainable Development Strategy (FSDS) 2013–2016, tabled on November 4, 2013, presents the Government of Canada’s sustainable development activities, as required by the Federal Sustainable Development Act (FSDA). In keeping with the objectives of the FSDA, to make the environmental decision-making process more transparent and accountable to Parliament, Canada Economic Development for Quebec Regions (CED) supports implementation of the FSDS through the activities found in this supplementary information table.

The Departmental Sustainable Development Strategy (DSDS) presents the results for commitments for Theme I – Addressing Climate Change and Air Quality, within the context of the 2013–2016 FSDS.

2. Themes I–III: Department/Agency-led Targets

CED does not lead any FSDS targets.

3. Themes I–III: Implementation Strategies

The DSDS is implemented through CED’s regular grants and contributions (G&C) program, the Quebec Economic Development Program (QEDP), through which CED supports the development of enterprises and regions.

As shown in the table below, CED’s intervention with respect to FSDS Theme I comes under the Business Development program in the Program Activity Architecture (PAA). Implementation of greening of operations (Theme IV) is carried out under the Internal Services program in the PAA.

Under Theme I, CED undertakes to fund projects that would, among other things, help optimize resource use, enhance residual resources and contribute to eco-efficiency. For instance, CED supports industrial greening projects (e.g., eco-design, eco-efficiency, green energy sources and eco-building) in order to help enterprises meet new requirements (e.g., eco-certification), identify pathways for enhancing environmental performance, and seize emerging (green) sector market opportunities.

Implementation Strategy and FSDS Targets

CED’s undertaking to “fund projects that would, among other things, help optimize resource use, enhance residual resources and contribute to eco-efficiency” ties in with FSDS Theme I: Addressing Climate Change and Air Quality.

Fulfilment of this undertaking should contribute to the attainment of FSDS targets 1.1 (Climate Change Mitigation) and 2.1 (Air Pollutants). CED’s grants and contributions (G&C) management system is geared to collecting information on projects that contribute to the attainment of these goals.

Activities Conducive to DSDS Implementation

In order to implement the DSDS, CED has conducted the following activities:

Information

• Dissemination of information documents and tools concerning sustainable development.
• Dissemination of information concerning sustainable development on the Intranet and in CED’s in-house newsletter.

Co-ordination and liaison

• Participation in FSDS committees of assistant deputy ministers and directors general.

Reporting

• Definition of performance measurement indicators for determining which projects supported contribute to the FSDS.
• Development of DSDS supplementary tables for the Report on Plans and Priorities (RPP) and Departmental Performance Report (DPR).

Strategic environmental assessment (SEA)

• Conducting an SEA when necessary pursuant to the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals.
• Systematization of the SEA process by CED.

Canadian Environmental Assessment Act, 2012 (CEAA)

• Application of the CEAA 2012 to projects supported by CED.

Communications

• Updating of the section concerning sustainable development on CED’s website.

Program funding and delivery

• Identification by the business offices of certain types of projects contributing to sustainable development.

Performance Summary for 2014-15

The table below shows target outcomes, performance indicators, targets and results for 2014–15 compared with established targets.

* For reference, the targets established in the RPP 2015–16 are 15% for businesses started up or transferred, and 10% for businesses working to improve their performance. CED will report on these targets in the DSDS supplementary table for 2015–16. The results for 2014–15 were calculated in line with the methodology for calculating targets for 2015–16.

Targets could be revised once the FSDS 2016–2019 comes into effect.

4. Theme IV: Implementation Strategies

5. Additional Department/Agency Sustainable Development Activities and Initiatives

In addition to the enterprises supported under the Business Development sub-program, CED backed projects contributing to its DSDS under other sub-programs.

Thus, taking into account all projects for which expenditures were made in 2014–15, 79 projects ($17.5M in total expenditures) contributed to CED’s DSDS. Projects associated with CED’s DSDS thus accounted for some 8% of G&C expenditures in 2014–15.

6. Sustainable Development Management System

Responsibility for managing sustainable development is shared among different CED committees and sectors.

Executive Committee
The Executive Committee is chaired by CED’s Deputy Minister/President, and is responsible for collectively managing all CED activities and advising the Deputy Minister/President on policy and management issues.

Program Management Committee
The Program Management Committee is chaired by the Director General, Policy, Research and Programs (Policy and Communications Sector). Its mandate includes optimizing program performance and guiding CED in intervention analysis, performance measurement, and program evaluation. This committee also validates presentations made to it periodically in the course of the preparation of RPPs and DPRs, in which the DSDS is integrated in the form of a supplementary table.

Sustainable Development Committee
The Sustainable Development Committee comprises members from CED’s different branches involved in sustainable development-related activities. The committee takes part in drawing up and updating CED’s DSDS; its members promote the strategy in their respective settings and contribute to its implementation.

Three sectors also share responsibility for sustainable development, as described below.

Policy and Communications Sector
Within the Policy and Communications Sector, the Policy, Research and Programs Branch (PRPB) and the Communications Directorate have sustainable development responsibilities.

The PRPB:

• prepares the DSDS, in conjunction with CED’s other directorates;
• includes DSDS commitments in CED’s policies and programs;
• handles performance measurement, particularly with respect to the FSDS;
• includes a systematic strategic environmental assessment (SEA) process from the design stage of CED’s programs, policies, initiatives and strategies;
• develops DSDS-related tools, as required;
• fulfils commitments concerning the empowerment of CED staff with respect to sustainable development (e.g., training), as required;
• ensures interdepartmental liaison with stakeholders participating in the FSDS by taking part in committees of assistant deputy ministers and directors general; and
• chairs CED’s Sustainable Development Committee.

The Communications Directorate:

• disseminates to CED staff all relevant information or activity concerning sustainable development, as well as informing them about measures taken with respect to the greening of government operations; and
• posts on the Internet all information concerning the FSDS, and the reports and different editions of CED’s DSDS.

Operations Sector
The Operations Sector is responsible for implementing CED’s programs. It includes a network of business offices across Quebec, and contributes to implementation of the DSDS.

More specifically, this sector:

• ensures the development and tracking of projects that contribute to sustainable development;
• determines, for all projects funded by CED, whether they are subject to the requirements of CEAA 2012; and
• inputs information on projects that contribute to the FSDS into its G&C management system, particularly with a view to providing data for performance measurement.

Corporate Services Sector

• is responsible for meeting the targets for greening of CED operations (FSDS Theme IV);
• promotes sound environmental practices within CED;
• provides interdepartmental liaison concerning the greening of government operations (GGO), in particular with the Office of Greening Government Operations of Public Works and Government Services Canada; and
• prepares RPPs and DPRs, which include FSDS-related elements.

7. Strategic Environmental Assessment

During the 2014–15 report submission cycle, CED took into account the environmental impact of initiatives subject to the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals in its decision-making process.

In 2012, CED conducted a strategic environmental assessment of the Quebec Economic Development Program^Endnote1 and updated it in accordance with the Canadian Environmental Assessment Act, 2012 (CEAA 2012)^Endnote2 and the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals.^Endnote3 This assessment concluded that the program’s implementation was not likely to generate significant environmental effects, provided CEAA 2012 is applied to supported projects so as to ensure that no significant environmental effects are generated.

No strategic environmental assessments were conducted in 2014–15.

Details on Transfer Payment Programs

Name of transfer payment program: Quebec Economic Development Program (QEDP)

Start date: April 1, 2012

End date: Indeterminate, in line with the Treasury Board of Canada’s Policy on Transfer Payments, in effect since October 1, 2008

Description: The QEDP contributes to promoting the long-term economic development of the regions of Quebec by paying special attention to those where slow economic growth is prevalent or opportunities for productive employment are inadequate.

Strategic outcome: Quebec's regions have a growing economy.

Results achieved: Through the QEDP, CED invested more than $212.2 million in 2014–15 in 1,083 projects in order to foster business growth and build strong, competitive regions, and to implement national programs as well as initiatives in order to increase Quebec’s economic growth.

Through the Business Development PAA program, CED contributed to the startup of 43% of the enterprises supported. The majority (65%) of enterprises assisted with a view to enhancing their performance through increased productivity or promoting their expansion, innovation, commercialization, exports or partnerships maintained or increased their sales, thereby exceeding the targets.

Under its Regional Economic Development PAA program, CED contributes to building strong, competitive regions: 29% of communities were supported in 2014–15 in their engagement efforts in order to increase their resilience in the face of volatile economic conditions. CED also aims to stimulate investment in the regions: 100% of communities supported implemented community economic facility projects, 6.5 million tourists from outside Quebec were attracted to the regions, and 50 international agencies or foreign firms were maintained in or attracted to the regions supported. These results are conclusive, and surpass expectations.

In 2014–15, CED was called upon to develop, administer and implement national programs or targeted and/or temporary initiatives under its Strengthening Community Economies program.^Endnote4 CED invested a total of $48.5 million in 237 projects aimed at the recovery or diversification of the economies of Quebec communities struggling with targeted economic development issues. CED’s intervention to strengthen community economies generated $776.6 million in total investment in Quebec communities.^Endnote5

Comments on variances: The $7.4-million difference between planned and actual spending in 2014–15 is primarily attributable to the acquisition of funds that were not yet known when planned spending was established:

• $5.9 million for the Economic Recovery Initiative for Lac Mégantic in the aftermath of the derailment during the year via Supplementary Estimates (B);
• $1.5 million for the Strategic Initiative to Combat the Spruce Budworm Outbreak in Quebec (SICSBOQ) obtained in the 2014 federal budget.

Audits completed or planned: N/A

Evaluations completed or planned: An evaluation of the QEDP is planned in 2016-17.

Engagement of applicants and recipients: N/A

Name of transfer payment program: Community Futures Program (CFP)

Start date: May 18, 1995

End date: Indeterminate, in line with the Treasury Board of Canada's Policy on Transfer Payments, in effect since October 1, 2008.

Description: This Canada-wide program provides support for communities in all parts of the country to help them take charge of their own local economic development. In Quebec, the CFP financially supports local and regional development agencies, including Community Futures Development Corporations (CFDCs).

Strategic outcome: Quebec's regions have a growing economy.

Results achieved: CED provided financial support to 56 CFDCs located in designated rural regions and 10 Business Development Centres (BDCs) in disadvantaged peri-urban areas. In 2014–15, some $28.4 million was paid to those agencies to help them support the implementation of 1,463 projects to strengthen the economies of Quebec’s rural communities.

CED also exceeded its results targets as of March 31, 2015. Indeed, 553 economic development initiatives were implemented in communities in 2014–15 following support from CFDCs. With the assistance of CFDCs and BDCs, 69% of the entrepreneurs supported carried out the pre-startup, startup or acquisition of a business (target: 60%), while 89% of enterprises carried out their recovery, expansion or modernization projects (target: 73%).

Comments on variances: Non-significant variance

Audits completed or planned: N/A

Evaluations completed or planned:

• A summative evaluation of the CFP for the period from April 1, 2007 to March 31, 2013 is currently being completed.

Engagement of applicants and recipients: N/A

Internal Audits and Evaluations

Internal Audits Table (2014-15)

Table of Evaluations Under Way or Completed (2014–15)

All CED evaluation reports are available on the CED website.

Response to Parliamentary Committees and External Audits

Response to Parliamentary Committees

• No recommendations were issued by any Parliamentary Committees concerning CED for 2014–15.

Response to the Auditor General of Canada, including to the Commissioner of the Environment and Sustainable Development

• No recommendations were received concerning CED following the tabling of the Report of the Auditor General of Canada and the Report of the Commissioner of the Environment and Sustainable Development for 2014–15.^Endnote6

External audits conducted by the Public Service Commission of Canada or the Office of the Commissioner of Official Languages

• For 2014–15, no audits of CED were conducted by the Public Service Commission of Canada^Endnote7 or the Office of the Commissioner of Official Languages.^Endnote8

User Fees Reporting

User fees: Fees may be charged under the Access to Information Act. Where applicable, other fees may also be charged for reproduction, research, preparation, production, programming and alternate format.

Fee type: Other products and services

Fee-setting authority: Access to Information Act and Regulations

Date last modified: 1983

Performance standards: The person responsible in the organization is required to convey in whole or in part the documents requested, within 30 days following receipt of the access to information request. Pursuant to section 9 of the Act, the response time may be extended; notice of extension must then be sent to the person requesting the information. Further information on the Access to Information Act can be found on the Department of Justice site. Information on the regulations under the Act may also be consulted on the legislation site.

Performance results: In all, 67% of requests were answered within 30 days of their receipt. Considering the number of requests extended in 2014–15, 100% of requests were answered within the timeframe set out in the Access to Information Act.

Other information: CED complies with Treasury Board Secretariat guidelines regarding the imposition of and exemption from access fees. For instance, it waives fees for amounts under $25. For higher sums it determines, based on the perceived public interest, whether it is appropriate to charge the full cost or not. In 2014–15, CED waived $45 in fees under the directive on the administration of the Access to Information Act.

Appendix 1 – Methodology and Technical Notes on Performance Data and Performance Status Rating

1. Canada Economic Development for Quebec Regions (CED) Performance Measurement Methodology

1.1 Tracking of projects

The tracking of CED-supported projects is carried out through a performance data collection system that has been in place since April 1, 2007. On April 1, 2012, a new Performance Management Framework (PMF) was implemented, reflecting CED’s new Program Alignment Architecture (PAA) and its new regular program, the Quebec Economic Development Program (QEDP). Since that date, project tracking has exhibited major improvements, in particular the reduction in the number of indicators, as well as efforts to simplify and automate the management information system (Hermès).

In the field of economic development, expected results are rarely observed during the year of the expenditure. Generally speaking, it is only after one or two years that the impact of an enterprise’s development activities on its sales is seen. The same is true for many activities supported through CED programs, whether in market development, technology transfer or enterprise creation.

To report on the use of funding awarded by CED in 2014–15, and intermediate and final results, two main baselines are used in this report:

• Projects for which an expenditure was made in 2014–15. This baseline tells us about the number of economic development projects which received financial support from CED, along with the amount of that assistance. This baseline contains data on output indicators.
• Projects which have reached the scheduled date for attaining longer-term results (e.g., sales maintained or increased). This baseline is used to measure the impact of CED’s programs on the economic development of Quebec, and of enterprises, regions and communities. It contains projects which were completed (i.e., actual project end date) between 2009–10 and 2014–15.

Moreover, CED’s intervention takes place in two ways:

• Through projects involving direct assistance (DA): by offering financial support to a client, whether an enterprise or a non-profit organization (NPO). For instance, a contribution to an enterprise (client) wishing to acquire new equipment with a view to modernizing its facility;
• Through projects involving intermediary groups (IGs): by awarding financial assistance to a client that will offer its services to third parties. For instance, a contribution to an incubator (client) that will support new entrepreneurs (recipients) so they can start up their enterprises.

1.2 Performance data collection

1.2.1 Reliability of performance data

For DA projects, project results are tracked by business office advisors, as part of regular customer agreement follow-up activities. Generally speaking, the data come from enterprises’ financial statements, thus yielding a high level of reliability. Instructions for using and inputting indicators along with appropriate quality controls ensure standardized input of data into the Hermès financial information system. In that regard, simplification and automation have reduced the time advisors devote to tracking the performance of each project.

In the context of IG projects, CED has introduced a new data collection strategy in order to measure the impact of IGs’ intervention in relation to their recipients. This approach, which involves tracking IGs’ clientele directly, is based on obtaining a list of accompanied recipients so that CED can send them a survey. To date, the results obtained have been conclusive and yield more reliable information on the services offered to recipients. This procedure helps avoid a situation where an enterprise is counted twice, through different intermediary groups. Note that this approach will be broadened to all IGs supported by CED in the years to come.

The Technical Notes section of Appendix 1 provides detailed information on the reliability of the data presented in this Report. Indeed, the findings of the most recent internal audit on the integrity of the information from the Hermès system confirm that the information contained in the Hermès Programmes application, CED’s tracking system, is reliable for decision-making and information purposes.

1.2.2 Attribution of results

CED works closely with several departments and agencies of the Government of Canada and the Quebec government, and with many local and regional stakeholders. This collaboration is reflected in the financial packages put together for projects. That is why CED cannot itself take credit or claim responsibility for all the results obtained. It is therefore fair to say that the financial assistance awarded by CED for the completion of projects contributes to attainment of the results observed.

2. Technical Notes on Performance Data

List of Acronyms:

2.1 Technical notes on Performance Measurement Framework (PMF) indicators

STRATEGIC OUTCOME – Quebec’s regions have a growing economy.

PROGRAM 1.1 – BUSINESS DEVELOPMENT

FINAL RESULT – The pool of enterprises in Quebec is renewed.

SUB-PROGRAM 1.1.1 – Entrepreneurship Support

INTERMEDIATE RESULT – Enterprises are started up or transferred

SUB-PROGRAM 1.1.2 – Business Performance

INTERMEDIATE RESULT – Enterprises improve their performance.

PROGRAM 1.2 – REGIONAL ECONOMIC DEVELOPMENT

FINAL RESULT – Quebec’s regions have a stronger economic base.

SUB-PROGRAM 1.2.1 – Regional Engagement

INTERMEDIATE RESULT – Communities take charge of their economic development.

SUB-PROGRAM 1.2.2 – Regional Investment

INTERMEDIATE RESULT – Quebec regions attract investment.

PROGRAM 1.3 – STRENGTHENING COMMUNITY ECONOMIES

FINAL RESULT – Quebec communities have stronger economies.

SUB-PROGRAM 1.3.1 – Community Futures Program (CFP)

INTERMEDIATE RESULT – Communities are economically sustainable.

SUB-PROGRAM 1.3.2 – Infrastructure Modernization

INTERMEDIATE RESULT – Quebec communities have upgraded public infrastructure.

SUB-PROGRAM 1.3.3 – Targeted and/or Temporary Support

INTERMEDIATE RESULT – Communities have targeted and/or temporary support available for stabilizing or strengthening their economies.

2.2 Technical notes on other performance data

2.2.1 Additional data with respect to strategic outcome

2.2.2 Additional data with respect to Business Performance sub-program

2.2.3 Additional data with respect to Regional Engagement sub-program

2.2.4 Additional data with respect to Community economic facilities sub-sub-program

2.2.5 Additional data with respect to Linguistic Duality Economic Development Initiative (EDI) sub-sub-program