Performance Report as of March 31, 2016

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 : November 21, 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 report the key results of Canada Economic Development for Quebec Regions (CED) for 2015–16.

The programs of the Innovation, Science and Economic Development Portfolio work together to deliver what Canada needs to improve productivity, grow the economy and enhance prosperity and well-being. That means supporting the government’s commitment to developing an Innovation Agenda, which will in turn create well paying jobs for the middle class, drive growth across all industries, and improve the lives of Canadians. The work of the Portfolio includes helping text-left businesses grow through trade and innovation, promoting increased tourism to Canada, and supporting scientific research and the integration of scientific considerations in our investment and policy choices.

As we approach Canada’s 150th anniversary, we pledge to continue working with stakeholders from across the country to strengthen our place in the global economy.

We are honoured to present the 2015–16 Departmental Performance Report for CED.

The Honourable Navdeep Bains
Minister of Innovation, Science and Economic Development

The Honourable Kirsty Duncan
Minister of Science

The Honourable Bardish Chagger
Minister of Small Business and Tourism and Leader of the Government in the House of Commons

Results in Brief

Summary of results

• In 2015–16, more than 10,500 businesses and organizations, established in every region of Quebec, received financial support directly from CED or through non-profit organizations (NPOs) providing them with assistance. The overall client satisfaction rate was 94%.
• Every dollar spent by CED in 2015–16 generated an average investment of $3.10 in the regions, representing nearly 8% growth over its leverage effect posted in 2014–15 ($2.88).^{Footnote i}
• In support of Government of Canada priorities, CED has set up a Dialogue on the economic development of Quebec’s regions, thus initiating a strategy to engage and establish ongoing discussions with the public and regional economic development experts, in order to inform CED’s strategic directions and guide its future action.

Section I: Organizational Overview

Organizational Profile

Organizational Context

Raison d’être and Responsibilities

As part of its mission, CED supports the start-up and performance of businesses. It helps them become more innovative, productive and competitive. It supports communities’ engagement efforts in Quebec’s regions and helps attract investment that will increase the prosperity of the Quebec and Canadian economies.

CED contributes to the economic vitality of all Quebec regions, by building on their competitive regional advantages. It makes investments that support transition and diversification for those communities that remain dependent on a single sector for economic opportunities or have experienced economic shocks.

Through its business offices, located in each region of Quebec, CED works directly and indirectly with businesses, primarily text-left and medium-sized enterprises (SMEs), and through non-profit organizations (NPOs) that support them and the communities.^{Footnote iii} By providing financial assistance for projects, among other things, CED supports their development efforts.

CED’s approach to regional economic development 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 (including representatives of First Nations communities), other federal departments and agencies, the Quebec government, and municipal organizations.

CED contributes to the design, administration and implementation in Quebec of Canada-wide G&C programs and temporary initiatives.

CED’s Grants and Contributions Programs and Initiatives, in effect during 2015–16^{Footnote iv}

CED’s main G&C program, the QEDP, came into effect on April 1, 2012. The program’s main recipients are SMEs, business groups or associations, and NPOs whose principal mission is to support businesses or economic development.

Strategic Outcome and Program Alignment Architecture

This report is structured according to CED’s Program Alignment Architecture (PAA). The following list presents the complete framework of CED’s programs and sub-programs,^{Footnote 1} the 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

Operating Environment and Risk Analysis

The main external risk likely to affect the fulfilment of CED’s mandate is linked to changes in the global, Canadian and Quebec economic contexts and institutional capacity. In 2015–16, the falling Canadian dollar impacted businesses’ plans as to whether or not to follow through with their development projects, and CED’s activities were adapted to the priorities in the new federal government’s agenda. The environment at CED was also affected by the Quebec government’s restructuring of support for regional economic development.

The following table outlines the external risk as well as the response strategies that CED implemented in FY 2015–16 to be able to fulfill its mandate. The table also shows the links to the PAA.

Key Risks

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 the Government of Canada’s priorities, targeted departmental results and risks, and the economic challenges of Quebec’s different regions. The data presented in this section to report on the use of funds are based on new projects approved in 2015–16. During FY 2015–16, CED acted on the following three priorities:

For more information on organizational priorities, please see the Ministerial Mandate Letter.^{Footnote vi}

Section II: Expenditure Overview

Actual Spending

This section provides an overview of human and financial resources, along with a table summarizing CED’s performance in 2015–16.

For 2015–16, CED spent $259.2 million out of a possible $265.7 million, or 98% of its authorities.

Budgetary Performance Summary

The planned spending data is taken from CED’s 2015–16 Report on Plans and Priorities (RPP). The main reason for the variance between planned spending in 2015–16 and planned spending for the following two years is that the reinvestment of clients’ repayable contributions is not yet included in the planned spending for 2016–17 or 2017–18. These amounts will be added to planned spending, once approved in due course by the Treasury Board.

Spending Analysis by PAA Program
For FY 2015–16, CED’s total G&C expenditures and operating expenditures stood at $259.2 million. Of that, $218.5 million was spent in G&C on projects aimed at economic development. Operating expenditures totalled $40.7 million.

a) Performance of PAA programs, excluding Internal Services
The “Budgetary Performance Summary for Programs and Internal Services” table shows that CED’s actual spending for 2015–16, excluding Internal Services expenditures, was $241.4 million, or 93% of total actual spending, broken down among CED’s PAA programs as follows:

• 61% for Business Development;
• 14% for Regional Economic Development; and
• 25% for Strengthening Community Economies.

CED’s programs are flexible, so as to adjust continually to the challenges and issues of Quebec enterprises and regions. To that end, every year, CED internally reallocates available financial resources among the various programs in its PAA.

b) Performance of Internal Services
In 2015–16, CED’s actual spending for Internal Services stood at $17.8 million. Consequently, Internal Services’ relative share of CED’s total spending was 7% in 2015–16.

Agency Spending Trend

The figure below shows CED’s actual and planned spending trend. The dark grey bar corresponds to G&C expenditures and operating expenditures under its programs. The light grey bar corresponds to statutory expenditures associated with CED’s employee benefits plan.

With regard to actual expenditures, the above figure shows a 4% decrease in CED’s spending between 2013–14 and 2015–16, from $269 million to $259 million, as a result of the termination of the Community Infrastructure Improvement Fund program.

With respect to CED’s planned spending, the $43.9-million increase in expenditures between 2015–16 ($259.2 million) and 2016–17 ($303.1 million) is primarily attributable to the awarding of new funds to support Quebec’s economic development, particularly through the Canada 150 Community Infrastructure Program (CIP 150) for the Anniversary of Confederation and funding for the Bellechasse Gas Pipeline. The difference is also attributable to the increased reinvestment of revenues from clients’ contribution repayments.

The main reason for the decrease in planned spending between 2017–18 and 2018–19 is that the reinvestment of clients’ repayable contributions is not yet included in the planned spending for 2016–17 and 2017–18. These amounts will be added to planned spending, once approved in due course by the Treasury Board.

Expenditures by Vote

For information on the voted and statutory expenditures of Canada Economic Development for Quebec Regions, consult the Public Accounts of Canada 2016.^{Footnote vii}

Alignment of Spending with the Whole-of-Government Framework

Financial Statements and Financial Statement Highlights

Financial Statements

CED’s unaudited financial statements for the fiscal year ended March 31, 2016 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.^{Footnote ix}

Financial Statement Highlights

The financial highlights presented below provide an overview of CED’s financial position and operations. 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 II and III 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 with the requested authorities, can be found on CED’s website.^{Footnote x}

Expenses

• In 2015–16, CED’s total expenses stood at $168.2 million, up $16.8 million (11.1%) from the previous year. This increase is primarily attributable to the increase in non-repayable contributions.
• Indeed, transfer payment expenses, totalling $122.2 million, rose by 15.9% between 2014–15 and 2015–16. Operating expenses held steady compared with the previous year, at $46.0 million.
• The $11.1 million variance in the value of net expenses, compared with projected figures, is also attributable to the increase in non-repayable contributions.

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 2015–16, CED’s total gross revenues stood at $129,559, down 56.0% from the previous year. Revenues primarily comprise interest charged on missed payments.

Liabilities

• As at March 31, 2016, CED’s net liabilities stood at $27.2 million, down 23.6% from the total in 2014–15. This decrease is largely attributable to the decline in net accounts payable and accrued liabilities.
• Accounts payable and accrued liabilities represented the largest component of liabilities, at 87.8% ($23.9 million) of total net liabilities, while future fringe benefits, along with vacation pay and compensatory leave, accounted for 6.7% ($1.8 million) and 5.5% ($1.5 million) of the organization’s net liabilities, respectively.

Assets

• As at March 31, 2016, net financial assets stood at $23.9 million, down 26.1% from the previous year’s total. This decrease is attributable to the decline in amounts due from the Consolidated Revenue Fund to discharge liabilities (fringe benefits and accrued liabilities), which were also down.
• Furthermore, CED’s non-financial assets stood at $1.1 million as at March 31, 2016, up 3.8% from the previous year. This increase is primarily attributable to the increase in prepaid expenses.
• Also, CED’s loans, held entirely on behalf of the government, totalled $332.7 million as at March 31, 2016, up 17.2% from 2014–15 owing to the increase in repayable contributions paid by the organization.

Section III: Analysis of Programs and Internal Services

This section provides information on CED’s performance for 2015–16 in relation to planned outcomes, on the basis of its Program Alignment Architecture (PAA), as illustrated on page 8.^{Footnote xii} The data presented in this section to report on the use of funds are based on projects for which an expenditure was made in 2015–16.

Programs

Program: Business Development

Description

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

CED supports 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, and strengthen their capacity to innovate, commercialize, and establish partnerships.

In this program, CED mainly targets businesses either directly or through non-profit organizations serving businesses and entrepreneurs. It promotes business development through a G&C program, the Quebec Economic Development Program (QEDP).

Performance Analysis and Lessons Learned

CED’s 2015–16 performance in the Business Development program exceeded expectations. CED’s intervention in this program was in fact identified as an organizational priority in 2015–16, and involves supporting business expansion, innovation, and export activities. CED has thus spent $132.1 million to support the implementation of 747 projects to foster enterprises’ growth.

The number of entrepreneurs in Quebec is declining, owing to the aging of the population, among other reasons.^{Footnote xiii} Indeed, between 2008 and 2014, the number of entrepreneurs fell by 10%, from 186,200 to 167,500.^{Footnote xiv} Quebec’s entrepreneurial deficit is a major issue that is impacting business start-ups.

In response to this issue, CED supported start-up projects, and considers that it contributes to the renewal of the pool of enterprises in Quebec in 2015–16. CED supported 114 of the 747 projects in this program, for a total of $18.1 million in financial assistance, in order to stimulate the creation of enterprises. Of the businesses that received entrepreneurship support from CED, 38% were started up,^{Footnote 6} slightly surpassing the established target. In addition, 94% of businesses receiving start-up support were still in operation three years after the funding ended.

In 2015–16, CED also supported 633 projects, providing $113.9 million in financial assistance to sustain the prosperity and competitiveness of Quebec enterprises.

CED intervened directly with enterprises, and also reached them indirectly via NPOs. Through its interventions last year, CED contributed to the development of 9,052 enterprises. Of that number, it is worth noting that:

• 4,465 enterprises received direct or indirect support in exports and commercialization;
• 2,020 enterprises received direct or indirect support in their productivity and expansion projects; and
• 1,434 enterprises received direct or indirect support in innovation and technology transfer.

Furthermore, Statistics Canada’s economic impact study^{Footnote xv} confirmed that CED assistance increased enterprises’ chances of success, particularly in terms of sales, productivity, and survival. From the first years following CED funding, enterprises receiving assistance averaged higher revenue growth and productivity than the control group of comparable enterprises. This same study showed that five years after receiving funding, CED clients had a 4.4% higher survival rate than non-clients, so nearly all businesses (99%) supported by CED in their development efforts were still in operation three years after the funding ended. These positive business development outcomes confirm the timeliness and effectiveness of CED support.

Last year, CED also continued its support for the two Canada Business Network service centres in Quebec, namely Info Entrepreneurs in Montreal and Ressources Entreprises in Quebec City, which provide information and referral services to guide entrepreneurs to specialized resources. In 2015–16, these centres responded to more than 23,000 information requests. CED’s financial support through its operating budget represents $1.9 million in total spending.

With respect to the use of financial resources for 2015–16, the $4.1 million variance between planned and actual spending is attributable to the fact that part of the funding originally earmarked for the Business Development program was instead used to fund initiatives under the Strengthening Community Economies program.

Program: Regional Economic Development

Description

This program 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 than others. Quebec’s prosperity depends on the different regions’ participation in the economy to their full potential. CED wishes to contribute to building strong, competitive regions, and 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 G&C program, the QEDP.

Performance Analysis and Lessons Learned

The performance obtained in 2015–16 under the Regional Economic Development program exceeded expectations. In 2015–16, CED spent $31.3 million on 107 projects to strengthen the economic base of Quebec’s regions.

To sustain communities, CED supported the implementation of recovery and diversification plans, as well as projects stemming from those plans. Thus, of the 10 communities receiving financial support from CED in 2015–16 for engagement and development projects, five implemented economic development projects arising from planning, or 50% of the communities supported, thus reaching its target of 50%.

CED also contributed to the competitive positioning efforts of the various regions of Quebec to help them become more attractive and open to the world. It funded 87 projects, for a total of $28.6 million, to stimulate investment in Quebec.

In that regard, the Project to Implement the Eeyou Istchee Broadband Communications Network (ECN) case study^{Footnote xvi} concluded that specific and targeted programs are necessary for supporting remote areas in their growth-generating projects.

CED also fostered the international outreach of Quebec regions’ competitive advantages. It supported the commercialization of destinations or major events, such as festivals, to increase the number of tourists visiting and generate economic spinoffs within communities. According to the latest data,^{Footnote xvii} 6.4 million tourists from outside Quebec visited the province’s different regions in 2014. These tourists spent $3.8 billion, an 8.6% increase over 2013, while international tourists reportedly spent $3.5 billion in Quebec.

In order for the regions to build on their strengths, they must attract investment,^{Footnote xviii} particularly foreign direct investment.^{Footnote xix} In 2015–16, through Montréal International and Québec International, CED helped attract $1.7 billion in investment from foreign firms and international organizations, exceeding its $900-million target. Through its funding to these entities, CED helped maintain or attract 63 foreign firms and international organizations in or to Quebec.^{Footnote xx} This performance is attributable to the establishment and expansion of several subsidiaries of foreign corporations, particularly in Greater Montreal. This foreign direct investment was primarily concentrated in high-technology industries, especially in the information technology and communications sector, thus boosting the region’s productivity and competitiveness.^{Footnote xxi}

With respect to the use of financial resources for 2015–16, the difference of some $1.6 million between planned and actual spending is attributable to the fact that part of the funding originally earmarked for this program was instead used to fund initiatives under the Strengthening Community Economies program.

Program: Strengthening Community Economies

Description

In addition to its regular programs, CED develops, administers and implements Canada-wide programs or temporary and/or targeted initiatives. The common objective throughout is to strengthen 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 undergoing economic shocks, experiencing significant development challenges or grasping long-term business opportunities. CED’s intervention 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).

Performance Analysis and Lessons Learned

Under the Strengthening Community Economies program, CED exceeded its results targets as at March 31, 2016. In 2015–16, CED implemented a Canada-wide program, as well as temporary or targeted initiatives, and administered a fund for Infrastructure Canada.

Through the Community Futures Program (CFP), CED provided financial support for 56 Community Futures Development Corporations (CFDCs) located in designated rural regions and 10 Business Development Centres (BDCs) in peri-urban regions. In 2015–16, CED gave these organizations $28.6 million to help them financially support nearly 1,650 enterprises in their economic development efforts so as to strengthen the economy of Quebec’s rural communities.

The findings of the Evaluation of the Community Futures Program in Quebec (2015)^{Footnote xxii} confirm the program’s timeliness and effectiveness in Quebec. There is a clear need for the CFP and for the services of the CFDCs and BDCs, and the CFP’s current delivery model is the most cost-effective way to achieve results. One of the Evaluation’s recommendations is to set Quebec-specific targets for indicators under the program’s performance measurement strategy (PMS). In response to this recommendation, CED began setting targets for the CFP’s PMS indicators in 2014–15, and has already made the required changes to its performance measurement framework so as to report on these indicators and incorporate them into its 2015–16 Report on Plans and Priorities.

Statistics Canada data show that businesses funded by the CFDCs and BDCs had a greater increase in their sales figures than comparable businesses that did not receive funding from these organizations. This difference tends to increase over time, from a 3.8% variance for 2003–2008 to an 8.1% variance for 2005–2010.^{Footnote xxiii}

Under the Strengthening Community Economies program, CED also provided $26.5 million to support 190 projects stemming from temporary or targeted initiatives to respond to community needs and community and government priorities in a timely manner. Thus, it temporarily supported the economic activity of 71 Quebec communities to stabilize or strengthen their economies. The projects generated $48.9 million in investment in the communities, exceeding the $42-million target.

Canadian Economic Diversification Initiative for Communities Reliant on Chrysotile

• This initiative has a budget envelope of $50 million over seven years (2013–2020).
• It aims to guide communities and enterprises in Des Appalaches and Des Sources RCMs which are dependent on the chrysotile asbestos industry, in their efforts to strengthen and diversify their economic base and thus increase their long-term growth potential.
• In 2015–16, CED spent $6.4 million on 20 projects.

Economic Recovery Initiative for Lac Mégantic

• The Economic Recovery Initiative for Lac Mégantic aims to support the economic recovery and rebuilding of the town in the aftermath of the rail accident of July 6, 2013.
• With a budget envelope of $35 million over seven years (2013–2020), it is divided into three components: rebuilding of the town, direct assistance to enterprises, and creation of two investment funds managed by the Mégantic-area CFDC.
• It has provided for the deployment of a dedicated team in the field to support local stakeholders in their economic development efforts.
• In 2015–16, CED spent $6.3 million on 14 projects, including a feasibility study to assess the possibility of installing a rail line that bypasses downtown Lac Mégantic.

Strategic Initiative to Combat the Spruce Budworm Outbreak in Quebec

• This initiative has a budget envelope of $6 million over four years (2014–2018).
• It aims to support the vitality and sustainability of the forestry sector and the health of Canada’s forests, which are vital to rural communities.
• In 2015–16, CED gave $1.5 million to the Société de protection des forêts contre les insectes et les maladies (SOPFIM), to help control the spruce budworm infestation in the Lower St. Lawrence, Gaspé and North Shore regions.

Linguistic Duality Economic Development Initiative (EDI), 2013–2018

• Through the Canada-wide EDI, CED helped stimulate the economic development of English-speaking communities (i.e., Quebec’s official language minority communities (OLMCs)). This financial assistance is provided under the Roadmap for Canada’s Official Languages 2013–2018, and is in keeping with the commitments arising from Part VII of the Official Languages Act.
• In 2015–16, CED supported 15 projects, for a total of $1.9 million, garnering in all $5.6 million in investment in the communities involved.
• During that same year, of the 62 OLMCs identified in Quebec, 14 received targeted support, or 23% of targeted communities.

Canada 150 Community Infrastructure Program (150 CIP)

• This Canada-wide initiative is part of the Government of Canada’s celebrations to mark the 150th Anniversary of Confederation.
• The 150 CIP aims to provide financial support for the renovation, improvement and expansion of community and recreational infrastructure.
• In Quebec, CED is delivering the 150 CIP with a budget envelope of $62.4 million. Of this amount, $31.2 million was announced in Budget 2015, and $31.2 million in Budget 2016.
• In 2015, CED held its first call for project proposals. Delivery of these projects began in 2016–17.

Restoration Initiative for Watercourse Crossings on Forest Multi-use Roads in Wildlife Areas

• This initiative has a budget envelope of $9.6 million over three years (2014–2017).
• CED funded projects aimed at encouraging the restoration of watercourse crossings damaged by weathering and severe storms, and ensuring the improvement, rehabilitation and maintenance of these multi-use roads in wildlife areas.
• In 2015–16, $4.1 million was spent through this Canada–Quebec Agreement to fund projects.

Local Investment Initiative

• CED funded projects to support local investment in all Quebec regions by encouraging the rehabilitation, improvement or expansion of existing community halls, accessible to the public on a non-commercial basis.
• In 2015–16, $5.1 million was spent by CED on 137 projects.

Extension of the natural gas distribution network between Lévis and Sainte Claire (Bellechasse Gas Pipeline)

• This project will help Bellechasse RCM acquire a gas pipeline, an important asset for stimulating economic development in the region.
• CED’s financial assistance for this project totals $17.5 million.
• In 2015–16, CED spent $934,944 on this project.

CED’s temporary and targeted initiatives in Quebec communities help stabilize and strengthen their economies. For example, the Temporary Initiative for the Strengthening of Quebec’s Forest Economies (TISQFE), in effect from June 2010 to March 2013, aimed to diversify and support communities affected by the forestry crisis. Findings from the TISQFE evaluation^{Footnote xxiv} indicate that this initiative seems to have mitigated the impacts of the crisis, which affected Quebec’s forestry industry in the early 2010s. Moreover, to the same evaluation, without funding from the initiative, job losses in the affected communities could have been higher.

Lastly, in FY 2015–16, CED continued to collaborate with Infrastructure Canada on the Infrastructure Modernization sub-program for delivery in Quebec of the Building Canada Fund (Communities and Large Urban Centres components) to help improve public infrastructure in Quebec communities. Performance highlights on the various infrastructure programs are provided in Infrastructure Canada’s Departmental Performance Reports.^{Footnote xxv}

The $6.5-million variance between planned and actual spending is attributable to the fact that, at the time of the 2015–16 RPP’s publication, the annual budgets of certain initiatives, such as the Bellechasse Gas Pipeline, were not known. Also, to meet the needs of its clientele more effectively, CED reallocated resources across its programs and moved up the delivery of projects linked to the Canadian Economic Diversification Initiative for Communities Reliant on Chrysotile.

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. Internal Services include only those activities and resources that apply across an organization and not those provided to a specific program. The groups of activities 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 Services; and Acquisition Services.

Performance Analysis and Lessons Learned

In keeping with Government of Canada policy, one of the priorities identified by CED for 2015–16 is to build on a culture of innovation to enhance its performance. This priority particularly involves Internal Services.

Over the past year, CED thus built on its capacity for innovation and continuous improvement to modernize its procedures and systems, so as to enhance its openness and transparency and provide its clients with better service in a context that is stimulating for its employees.

To support modernization in 2015–16, CED:

• worked in collaboration with regional development agencies to start developing a government-wide G&C management system;
• migrated to the integrated management software program, PeopleSoft;
• produced a five-year plan for implementation of the Open Government initiative, and introduced planned activities for the first year;
• distributed externally CED’s Map of Interventions^{Footnote xxvi} to Quebec businesses and communities via the Open Data portal;
• implemented a new electronic document and records management system (GCDOCS) for better information management;
• stepped up its use of social media to build a larger pool of followers on its official platforms;
• achieved efficiency gains and boosted innovation through activities conducted by the Oxygen team; and
• continued to implement Blueprint 2020 initiatives so as to continue building the Public Service of the Future.

Section IV: Supplementary Information

Supporting Information on Lower-level Programs

Supporting information on lower-level programs is available on CED’s website.^{Footnote xxvii}

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 with 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.

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

Plan: 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.

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.

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 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.

Result: 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

Related Information on Lower-Level Programs

1.1.1 Sub-program:Entrepreneurship Support

Description

This sub-program (SP) is aimed at increasing the pool of enterprises in Quebec. Entrepreneurial dynamism is lower in Quebec than in the rest of Canada. 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 SP, CED provides support to enterprises or non-profit organizations that support enterprises and entrepreneurs, such as entrepreneurship centres, incubators, and transfer and spinoff organizations. CED contributes to supporting entrepreneurship through its grants and contributions program, the QEDP.

1.1.2 Sub-program: 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, 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 SP is aimed at enterprises and non-profit organizations that support enterprises. CED acts on enterprises’ performance through its grants and contributions program, the QEDP^{Footnote xxxiv}.

1.2.1 Sub-program: 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 accountability 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 SP, CED intervenes primarily through non-profit organizations with an economic role. CED acts on Regional Engagement through its grants and contributions program, the QEDP.

1.2.2 Sub-program: 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 compete to attract investment needed to maximize their economic growth. 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, distinctive tourism, and more. 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 attraction of foreign direct investment through foreign firms and international organizations. In this SP, CED focuses on non-profit organizations. CED intervenes in the Regional Investment SP through its grants and contributions program, the QEDP.

1.3.1 Sub-program: Community Futures Program

Description

This sub-program (SP) is aimed at assisting local economic development in rural areas in order to strengthen the economy of Quebec communities. This SP implements a national program called the Community Futures Program (CFP). The CFP plays an important role in strengthening the ability of rural communities to diversify their economic base to foster long-term prosperity and sustainability. By means of the CFP, CED encourages Quebec rural communities’ planning and socio-economic 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, by means of contribution agreements.

1.3.2 Sub-program: 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 their different programs, including the Building Canada Fund (Community and Large Urban Centres component) and the Municipal Rural Infrastructure Fund (MRIF). These programs are covered in agreements between Infrastructures Canada and the Quebec government, and are aimed primarily at municipalities.

1.3.3 Sub-program: 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 certain local needs or is consistent with specific government priorities. 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 presented with development opportunities likely to have a positive impact on the regions. This SP is aimed primarily at enterprises and NPOs. CED intervenes through temporary or dedicated additional funding from the Government of Canada or specific funds allocated by the Agency through its grants and contributions program, the QEDP.

Supplementary Information Tables

Methodology and Technical Notes on Performance Data