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Details on Transfer Payment Programs of $5 Million or More

Atlantic Innovation Fund - Voted

Start date: May 10, 2001

End date: Ongoing

Type of transfer payment: Contribution

Type of appropriation: Appropriated annually through Estimates

Fiscal year for terms and conditions: 2019-20

Link to department’s Program Inventory: Research and Development, and Commercialization; Innovation Ecosystem

Description: The Atlantic Innovation Fund (AIF ) makes strategic investments in research and development (R&D ) initiatives in the area of natural and applied sciences as well as in social sciences, humanities, and arts and culture. Projects are expected to result in the successful adaptation or development as well as the commercialization of technology-based products, processes or services.

Contributions to non-profit organizations are non-repayable. Contributions to for-profit businesses to fund R&D projects that involve the commercialization of a product, process, technology or service are repayable, either conditionally or unconditionally.

Results achieved: In 2019-20, through the AIF , the Agency approved $20.8 million in funding for four projects, toward total costs of $34.2 million. These investments will result in increased activity in innovation and R&D , leading to technologies, products, processes or services that contribute to economic growth in Atlantic Canada.

The total amount leveraged was $13.4 million, which included funds from the private sector and government.

Most projects involved linkages between private-sector firms or universities, with five key collaborations created for technology development and commercialization within the projects approved.

Findings of audits completed in 2019-20: In May 2019, the Office of the Comptroller General, Internal Audit Sector, completed the Regional Development Agencies Internal Audit of Recipient Selection – Phase II to assess the design and implementation of the management control frameworks over the process for selecting recipients in regional development agencies (RDAs). Two RDAs participated in this audit, FedDev Ontario and ACOA. AIF was one of the transfer payment programs selected for ACOA. The audit made recommendations on such elements as the formal communication of program information to the public and revisions to documents to best assist applicants in the funding process.

Findings of evaluations completed in 2019-20: An evaluation of AIF spending that falls under Research and Development, and Commercialization, and Innovation Ecosystem programming was completed in 2019-20. The evaluation showed continued relevance and performance of the programming through its contributions to small and medium-sized enterprises (SMEs) and ecosystem supports. The evaluation recommended building on efforts to address any gaps in funding, to strengthen the impact of ecosystem supports, to examine AIF funding in relation to current needs, and to address labour and skills shortages.

Engagement of applicants and recipients in 2019-20: ACOA’s transfer payment programs (including the AIF ) are designed, delivered and managed in such a way that they remain client-focused, are relevant to the applicants’ and recipients’ needs, and achieve the expected results for which they are designed.

AIF information is shared with applicants and recipients through ACOA’s website and communication between AIF program delivery staff and clients.

Through Innovation Canada, access to information on funding programs has also increased. When potential applicants enter basic information via their website application, it generates targeted results of potential innovation programs, including the AIF .

(dollars)

Explanation of variances: In 2019-20, there was a lower level of activity than planned because many projects focusing on innovation were approved under the Regional Economic Growth through Innovation program. This shift is a result of the Horizontal Innovation Review that proposed streamlining the federal innovation program suite. As demand shifts from AIF to REGI for certain projects, spending is expected to stabilize.

Business Development Program - Voted

Start date: July 25, 1995

End date: Ongoing

Type of transfer payment: Grant and contribution

Type of appropriation: Appropriated annually through Estimates

Fiscal year for terms and conditions: 2010-11

Link to department’s Program Inventory: Inclusive Communities; Diversified Communities; Research and Development, and Commercialization; Innovation Ecosystem; Business Growth; Trade and Investment; Policy Research and Engagement

Description: Through the Business Development Program (BDP ), the Agency works to create opportunities for economic growth in Atlantic Canada by helping SMEs become more competitive. The Agency also works with communities to develop and diversify local economies, and champions the strengths of the region in partnership with Atlantic Canadians.

The objectives of the BDP are as follows:

• Improve the growth and competitiveness of Atlantic Canadian SMEs.
• Provide for dynamic and sustainable communities in Atlantic Canada.
• Provide for initiatives that strengthen the Atlantic region’s economy.

In general, contributions to for-profit businesses are repayable, either conditionally or unconditionally. Under some of the BDP’s elements, non-repayable contributions to for-profit businesses may be permitted.

Contributions to not-for-profit organizations are generally non-repayable but are conditionally repayable if a project results in what would normally be considered a commercial activity.

Results achieved: Through the BDP , the Agency supported Atlantic Canada’s economic growth and prosperity by helping SMEs compete and succeed in a global market, and by investing in the development of inclusive and diverse communities.

In 2019-20, the Agency approved $29.6 million in BDP funding for nearly 240 projects that leveraged an additional $51.9 million.

Projects included support to SMEs with high growth potential, the hiring of skilled and diverse personnel, the modernization and expansion of businesses, export preparedness, training, and the adoption of new technologies. BDP investments helped businesses and communities accelerate their transition to a cleaner, low-carbon economy through the adoption of clean technologies. The Agency also contributed to the development of dynamic and sustainable communities in Atlantic Canada by investing in initiatives that foster entrepreneurship, talent attraction, skills development, business growth and community vitality (e.g., tourism investments).

Findings of audits completed in 2019-20: In May 2019, the Office of the Comptroller General, Internal Audit Sector, completed the Regional Development Agencies Internal Audit of Recipient Selection – Phase II to assess the design and implementation of the management control frameworks over the process for selecting recipients in RDAs. Two RDAs participated in this audit, FedDev Ontario and ACOA. BDP was one of the transfer payment programs selected for ACOA. The audit made recommendations on such elements as the formal communication of program information to the public and revisions to documents to best assist applicants in the funding process.

Findings of evaluations completed in 2019-20: An evaluation of BDP spending that falls under Research and Development, and Commercialization, and Innovation Ecosystem programming was completed in 2019-20. The evaluation showed continued relevance and performance of the programming through its contributions to SMEs and ecosystem supports.

Engagement of applicants and recipients in 2019-20: ACOA’s transfer payment programs (including the BDP ) are designed, delivered and managed in such a way that they remain client-focused, are relevant to applicants’ and recipients’ needs, and achieve expected results. Engaging key stakeholders in discussions regarding the creation or review of ACOA’s programming is part of the Agency’s operations. To ensure the ongoing relevance of programming, the Agency solicits feedback from clients and stakeholders on an ongoing basis, whether through information sharing, consultations or collaborations.

In ensuring that BDP elements are designed for continuous improvement to support expected outcomes, ACOA engages the following stakeholders: the business sector; community-based economic development organizations and volunteer groups; universities and colleges; research institutes; other levels of government; First Nations communities; and official language minority communities.

Additionally, BDP information is continuously shared with applicants and recipients through ACOA’s website and outreach events in communities across Atlantic Canada.

The Agency also consults its applicants and clients through periodic satisfaction surveys. These surveys provide the Agency with information on the importance of various service features and on areas for improvement.

(dollars)

Explanation of variances: “Actual spending” was higher than “Planned spending” because BDP expenditures increased from residual spending on multi-year projects. As demand shifts from BDP to REGI for certain projects, spending is expected to stabilize.

Regional Economic Growth through Innovation – Voted

Name of transfer payment program:

Growth through Regional Innovation Program (GRIP ) (known as the Regional Economic Growth through Innovation [REGI] Program)

This program includes Women Entrepreneurship Strategy (WES) initiatives in two streams: Pilot Contribution Program (known as the Women Entrepreneurship Fund [WEF]) and WES Ecosystem Fund

Start date: October 18, 2018

End date: REGI – March 31, 2023; WEF – March 31, 2020; WES Ecosystem Fund – March 31, 2023

Type of transfer payment: REGI – Grant and Contribution; WES – Contribution

Type of appropriation: Appropriated annually through Estimates

Fiscal year for terms and conditions: 2018-19

Link to department’s Program Inventory: Business Growth; Innovation Ecosystem; Trade and Investment; Inclusive Communities; Diversified Communities; Research and Development, and Commercialization

Description: The Regional Economic Growth through Innovation (REGI) Program builds on the objectives of the Innovation and Skills Plan. The goal of the REGI Program is to provide streamlined, nationally coordinated yet regionally tailored support for business productivity and scale-up, particularly for SMEs, women entrepreneurs and other underrepresented groups, and assist the enhancement of regional industrial and technology clusters and regional innovation ecosystems.

The program provides assistance through two streams:

• Business Scale-up and Productivity (BSP ) – Invest in and support businesses, including high-growth firms, at various stages of development to accelerate their growth and assist them in scaling up as well as enhance their productivity and competitiveness in both domestic and global markets.
• Regional Innovation Ecosystems (RIE ) – Create, grow and nurture inclusive regional ecosystems that support business needs and foster an entrepreneurial environment conducive to innovation, growth and competitiveness.

The Women Entrepreneurship Strategy (WES) provides nationally coordinated, regionally tailored investments to help women entrepreneurs and support regional innovation ecosystems through two program streams:

• WES Ecosystem Fund – A five-year program to help non-profit, third-party organizations deliver support for women entrepreneurs and address gaps in the ecosystem.
• Pilot Contribution Program (Women Entrepreneurship Fund) – A two-year program that invests directly in women-owned or women-led businesses to help them grow and reach new markets.

Contributions issued under the REGI Program may be unconditionally or conditionally repayable, or non-repayable. Contributions issued under WES are non-repayable.

Results achieved: In 2019-20, the Agency approved $178.6 million in REGI funding for 800 projects that leveraged an additional $309.2 million. Every dollar ACOA invested leveraged an additional $1.73 from other sources.

Projects supported under REGI aimed to accelerate the growth of firms and assisted with the adoption of new, innovative technologies, the scale-up and productivity improvement of SMEs, and the development of and entry into new markets.

REGI also funded projects that supported the growth and development of a strong and inclusive regional ecosystem in order to foster the entrepreneurial environment necessary for more innovative regional economies and to increase the competitiveness of SMEs, women entrepreneurs and underrepresented groups.

Through the WES initiative, the Agency approved nine pilot contribution program (Women Entrepreneurship Fund) projects in 2019-20 for total funding of $800,000 over 2019-20 to 2020-21.

Projects supported under the WES initiative helped women-owned and women-led businesses to grow as well as to invest in activities supporting the pursuit of market opportunities abroad, as well as scale-up, expansion and growth.

Findings of audits completed in 2019-20: No audits were completed or planned during fiscal year 2019-20.

Findings of evaluations completed in 2019-20: An evaluation of REGI spending that falls under Research and Development, and Commercialization, and Innovation Ecosystem programming was completed in 2019-20. Given the REGI Program was implemented in 2018-19, the evaluation focused on early implementation and revealed that this was positive with no major impacts on the ability to fund projects. It also indicated that the introduction of the REGI Program improved internal clarity on project eligibility without affecting flexibility. Overall, the evaluation showed continued relevance and performance of the programming through its contributions to SMEs and ecosystem supports.

Engagement of applicants and recipients in 2019-20: ACOA’s transfer payment programs (including the new REGI Program) are designed, delivered and managed in such a way that they remain client-focused, are relevant to applicants’ and recipients’ needs, and achieve the expected results. Engaging key stakeholders in discussions regarding the creation or review of ACOA’s programming is part of the Agency’s operations. To ensure the ongoing relevance of programming, the Agency solicits feedback from clients and stakeholders on an ongoing basis, whether through information sharing, consultations or collaborations.

In ensuring that REGI elements are designed for continuous improvement to support expected outcomes, ACOA engaged with other RDAs and the following stakeholders: the business sector; community-based economic development organizations and volunteer groups; universities and colleges; research institutes; other levels of government; First Nations communities; and official language minority communities.

Additionally, REGI information is continuously shared with applicants and recipients through ACOA’s website and outreach events in communities across Atlantic Canada.

The Agency also consults its applicants and clients through periodic satisfaction surveys. These surveys provide the Agency with information on the importance of various service features and on areas for improvement.

(dollars)

Explanation of variances: “Actual spending” was lower than “Planned spending” because the REGI Program saw a rise in project approvals and new projects entering the program. Multi-year projects typically have lower expenditures during initial years and spending rises as they are completed.

Community Futures Program - Voted

Start date: May 18, 1995

End date: Ongoing

Type of transfer payment: Contribution

Type of appropriation: Appropriated annually through Estimates

Fiscal year for terms and conditions: 2010-11

Link to department’s Program Inventory: Inclusive Communities; Diversified Communities

Description: The program’s purpose is to help communities develop and implement local solutions to local problems. It provides non-repayable contributions to community futures organizations – known in Atlantic Canada as Community Business Development Corporations (CBDCs) – and their associations. Community-based governance is at the heart of the Community Futures Program. CBDCs are legally incorporated, not-for-profit, autonomous organizations managed by local volunteer board members who make decisions that shape these organizations, affect the lives of entrepreneurs and impact their communities. They provide financial and technical support to SMEs and social enterprises in rural areas.

Results achieved: In 2019-20, CBDCs continued to provide an essential source of investment capital focused on rural businesses as well as business counselling and skills development. CBDCs assisted 1,368 businesses through their investment fund by approving 1,521 loans, representing a total direct investment of $73.4 million in local SMEs. These investments contributed to the creation of 1,730 new jobs in rural communities across Atlantic Canada. The Agency maximized the use of funds available to CBDCs as recipients of Community Futures funding in accordance with the Community Futures of Tomorrow model. ACOA continued to collaborate with the CBDC network in providing business counselling and support to enhance the business skills of local entrepreneurs. In 2019-20, 404 Entrepreneurial Training Fund sessions were completed across the region, with 1,025 participants attending.

Findings of audits completed in 2019-20: No audits were completed or planned during fiscal year 2019-20.

Findings of evaluations completed in 2019-20: A national evaluation, horizontally led by ISED, was completed in 2019-20. The evaluation found that the programming, through its contributions to economic development primarily in rural areas, continued to be relevant and to achieve results. The national evaluation recommended aligning and improving performance measurement nationally and considering ways to reflect GBA+ considerations.

Engagement of applicants and recipients in 2019-20: The Agency continued to engage with and align its support to the CBDC network as part of the implementation of the Community Futures of Tomorrow model under a collaborative joint oversight committee. This maximized all available resources, including the funds provided by the Community Futures Program. With a view to maintaining the long-term viability of the Community Futures Program, the committee acts as a governance body by ensuring that the model’s objectives are managed collaboratively among individual CBDCs, the Atlantic Association of CBDCs, and ACOA.

As part of its due diligence process and accountability to Parliament, the Agency has a responsibility to ensure that appropriate governance practices are in place with respect to organizations to which it provides operational support. ACOA continues to collaborate with the CBDC network and individual organizations to enhance governance practices, where required, and provide ongoing training to board members to ensure a continued understanding of effective governance and the importance of achieving desired results the right way.

ACOA continues to work with other federal regional development agencies, the Community Futures Network of Canada (CFNC ) and the CBDCs to increase the integrity and consistency of performance results, improve the collection of data and implement the Community Futures Program’s performance measurement strategy. In collaboration with other federal government departments responsible for the management of the program, ACOA presents performance results for 2019-20 and continues to engage the CFNC in refining the collection and use of performance information needed by all stakeholders, including the CBDCs.

(dollars)

Explanation of variances: “Actual spending” was higher than “planned spending” because additional funding was transferred from other programs to meet increased demand in support of several community development projects.

Innovative Communities Fund - Voted

Start date: April 1, 2005

End date: Ongoing

Type of transfer payment: Contribution

Type of appropriation: Appropriated annually through Estimates

Fiscal year for terms and conditions: 2009-10

Link to department’s Program Inventory: Diversified Communities; Inclusive Communities; Innovation Ecosystem

Description: The Innovative Communities Fund (ICF ) is designed to make non-repayable contributions to strategic projects that build the economies of Atlantic Canada’s communities. The ICF focuses on investments that lead to long-term employment and economic capacity building in rural communities. Urban initiatives that stimulate the competitiveness and vitality of rural communities may also be considered on a select basis.

Results achieved: The ICF capitalizes on the strengths of Atlantic communities and provides them with the tools needed to identify opportunities for sustainable economic growth. The overall expected result is to build dynamic and sustainable communities in Atlantic Canada while focusing on increased economic and business activity. In 2019-20, ACOA continued to work with communities and stakeholders on strategic projects related to economic development capacity as well as business-sector development. These efforts resulted in the Agency funding 181 projects under the ICF . These projects had total costs of $101.7 million, with an ACOA contribution of $40.2 million and $61.5 million leveraged from other sources. Every dollar invested by ACOA leveraged $1.53 from other partners.

Findings of audits completed in 2019-20: In May 2019, the Office of the Comptroller General, Internal Audit Sector, completed the Regional Development Agencies Internal Audit of Recipient Selection – Phase II to assess the design and implementation of the management control frameworks over the process for selecting recipients in RDAs. Two RDAs participated in this audit, FedDev Ontario and ACOA. ICF was one of the transfer payment programs selected for ACOA. The audit made recommendations on such elements as the formal communication of program information to the public and revisions to documents to best assist applicants in the funding process.

Findings of evaluations completed in 2019-20: No evaluations were completed or planned during fiscal year 2019-20.

Engagement of applicants and recipients in 2019-20: Eligible recipients for the ICF include municipalities and local organizations, First Nations communities, industry-related groups (e.g., industry or sector associations), and non-profit organizations.

Under the ICF , the Agency continues to proactively engage with its partners and stakeholders, including community organizations, educational institutions, official language minority communities, First Nations communities and other levels of government, through discussions regarding strategic community development opportunities. These discussions ensure that the Agency’s investments continue to respond to the evolving economic needs and priorities of Atlantic Canadian communities. In addition, ICF information is continuously shared with applicants and recipients through ACOA’s website.

(dollars)

Explanation of variances: “Actual spending” was higher than “planned spending” because of spending for the Canadian Experiences Fund, which was allocated through a number of ACOA programs, including the ICF . There was also higher demand for ICF projects and increased spending on large multi-year projects.