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Transfer Payment Programs

1) Transfer Payment Program:
Atlantic Innovation Fund (AIF) – Voted
2) Start Date:			3) End Date:
May 10, 2001			March 31, 2011
4) Description of Transfer Payment Program:
AIF focuses on increasing research and development linked to economic development and commercialization objectives in areas that are of strategic importance to the region, particularly those that support the growth of strategic sectors/clusters. AIF emphasizes building the Atlantic system of innovation, including components that bridge the gap between research institutions and the marketplace, and encourages synergies among the various components of this system through partnerships, alliances and networks. AIF also supports research and development projects that focus on the areas of natural sciences, applied sciences, and social sciences and humanities, where these are linked explicitly to the development of technology-based products, processes or services, or their commercialization, thereby strengthening the region’s system of innovation. More information on AIF can be found at http://www.acoa-apeca.gc.ca/e/financial/aif/index.shtml .
5) Strategic Outcomes:
The program is linked to the Enterprise Development strategic outcome.
6) Results Achieved:
The AIF focuses on accelerating the development of the knowledge-based industry by increasing the region’s capacity to carry out leading-edge research and development, contributing to the development of new technology-based economic activity in Atlantic Canada. Clients of the AIF include businesses and institutions such as universities and research institutes. One of the key accomplishments for 2006-2007 was the successful approval of 30 R&D projects for over $77 million in ACOA assistance (29 projects under AIF Round IV and one project under the AIF Strategic Initiative process). As a result of these projects, the Agency was able to leverage an additional $138 million from other sources, such as universities and other research institutions, provincial governments, the private sector, and national programs. The AIF facilitates the development of strategic sectors characterized by regional clusters of firms. Under AIF Round IV, 20 of the 29 approved projects, accounting for $49 million in AIF funding, will augment development of clusters and complement the National Research Council’s Atlantic Cluster Initiative. ACOA encourages AIF project proponents to seek opportunities for collaboration in such areas as research and development, project management, marketing or commercialization expertise, in order to help maximize the economic benefits and enhance the likelihood of commercialization success. In 2006-2007 there were over 85 meaningful partnerships on AIF-funded projects. Given that the level of privately-funded R&D in Atlantic Canada is well below the national average, the AIF has focused on increasing the level of participation by commercial entities in innovation activity. In 2006-2007, the percentage of approved projects from commercial proponents increased to over 70% of the total, up from 52% in 2005-2006. In addition, the percentage of private sector companies acting as project partners remained high at 55%. (It was 58% in 2005-2006.)
Program Activity	($ millions)
	7) 2004-2005 Actual Spending	8) 2005-2006 Actual Spending	2006-2007
			9) Planned Spending	10) Total Authorities	11) Actual Spending	12) Variance (9-11)
13) Fostering SME Development and Regional Economic Capacity Building
- Total Grants	0.0	0.0	0.0	0.0	0.0	0.0
- Total Contributions	56.0	43.6	65.0	59.3	59.3	5.7
- Total Other Types of TPs	0.0	0.0	0.0	0.0	0.0	0.0
14) Total for PA	56.0	43.6	65.0	59.3	59.3	5.7
15) Total for Transfer Payment Program	56.0	43.6	65.0	59.3	59.3	5.7
16) Comment(s) on Variance(s):
The variance between planned and actual spending for 2006-2007 is significantly lower than the variance in 2005-2006. This is attributable to the move to multiple, smaller rounds and to experience gained through previous rounds of AIF funding.
17) Significant audit and evaluation findings and URL(s) to last audit and/or evaluation:
Audit: An internal audit of the Atlantic Innovation Fund was concluded in March 2007. The audit results show that the Agency has exercised due diligence in the delivery of the program, and has substantially complied with the terms and conditions of the program and with the Treasury Board Policy on Transfer Payments. More information can be found at http://www.acoa-apeca.gc.ca/e/library/audit.shtml . Evaluation: A formative evaluation of the AIF was conducted in 2004, and the results can be viewed at: http://www.acoa-apeca.gc.ca/e/library/audit/marchevaluation2004.shtml . A summative evaluation is planned for fiscal year 2009-2010.

1) Transfer Payment Program:
Business Development Program (BDP) – Voted
2) Start Date:			3) End Date:
June 25, 1995			March 31, 2010
4) Description of Transfer Payment Program:
The program helps set up, expand or modernize businesses, and focuses on small and medium-sized enterprises (SMEs). More information on the BDP can be found at http://www.acoa-apeca.gc.ca/e/financial/business.shtml.
5) Strategic Outcomes:
The BDP is linked to the following strategic outcomes: Enterprise Development, Community Development, and Policy, Advocacy and Co-ordination.
6) Results Achieved:
During 2006-2007, the BDP invested in 99 new business establishments and in 336 projects to help companies expand and/or modernize their facilities. The program is very relevant, as gaps still exist in the financing generally available to SMEs, notably with respect to innovation, skills and trade development.
Program Activity	($ millions)
	7) 2004-2005 Actual Spending	8) 2005-2006 Actual Spending	2006-2007
	7) 2004-2005 Actual Spending	8) 2005-2006 Actual Spending	9) Planned Spending	10) Total Authorities	11) Actual Spending	12) Variance (9-11)
13) Fostering SME Development and Regional Economic Capacity Building
- Total Grants	0.3	0.4	1.0	0.2	0.2	0.8
- Total Contributions – BDP Regular	128.4	127.8	123.4	89.8	89.8	33.6
- Total Contributions – AIP (Trade, Investment, EBSD*)	24.1	29.3	23.9	22.2	22.2	1.7
- Total Other Types of TPs	0.0	0.0	0.0	0.0	0.0	0.0
14) Total for PA	152.8	157.5	148.3	112.2	112.2	36.1
13) Community Economic Development
- Total Grants	0.3	0.2	1.0	0.6	0.6	0.4
- Total Contributions	25.9	25.3	8.2	25.3	25.3	(17.1)
- Total Other Types of TPs	0.0	0.0	0.0	0.0	0.0	0.0
14) Total for PA	26.2	25.5	9.2	25.9	25.9	(16.7)
13) Policy Research
- Total Grants	0.0	0.0	0.0	0.0	0.0	0.0
- Total Contributions	0.2	0.7	5.0	0.6	0.6	4.4
- Total Other Types of TPs	0.0	0.0	0.0	0.0	0.0	0.0
14) Total for PA	0.2	0.7	5.0	0.6	0.6	4.4
15) Total for Transfer Payment Program	179.2	183.7	162.5	138.7	138.7	23.8
* EBSD = Entrepreneurship and Business Skills Development
16) Comment(s) on Variance(s):
Spending levels for the BDP were adjusted in-year to provide for increased funding under the Innovative Communities Fund, and to provide a source of funds for the Strategic Community Investment Fund as a result of an extension to the program for its final payout. Spending levels for the BDP in future years have been adjusted to those established with the renewal of the program approved in 2005. BDP spending, including the Atlantic Investment Partnership II elements delivered through the BDP, is expected to be in the order of $115 million per year.
17) Significant audit and evaluation findings (including URL(s) to last audit and/or evaluation):
Audit: An internal audit of the Business Development Program was concluded in November 2006. The audit results show that the Agency has exercised due diligence in the delivery of the program, and has substantially complied with the terms and conditions of the program and with the Treasury Board Policy on Transfer Payments. More information can be found at http://www.acoa-apeca.gc.ca/e/library/audit/bdp_qaa.shtml. Evaluation: A summative evaluation is planned for fiscal year 2008-2009. The last evaluation, conducted in 2002-2003, confirmed that the BDP is producing positive results for the Atlantic economy. The report found that the resulting benefit-cost ratio was 2.1:1, meaning that for every dollar invested the net return to the taxpayer is more than two dollars, even if the total ACOA assistance is not repaid. Because loans are being repaid, the benefit-cost ratio to the taxpayer increases (see chapter 2, page 15 of the evaluation). Additionally, the 2002-2003 evaluation makes the case that the BDP continues to fill important gaps in the availability of conventional financing for young businesses and start-ups, rural businesses, soft costs, and high-risk sectors such as tourism and aquaculture. Other positive findings in the report include: • The BDP’s $814-million investment, almost three-quarters of which has been as repayable contributions to SMEs, has had a major impact on SME performance and the Atlantic economy overall. • Firms assisted through the BDP have experienced growth in employment four times that of unassisted firms. • The benefit-cost ratios for GDP and returns to the taxpayer indicated that the pay-off for BDP investment overall is positive. • The BDP continues to be relevant in terms of its ability to address gaps in the availability of conventional financing. An executive summary of the evaluation is available at http://www.acoa-apeca.gc.ca/e/library/audit/busdevprog.shtml .

1) Transfer Payment Program:
Community Futures Program (CF) – Voted
2) Start Date:			3) End Date:
May 18, 1995			October 2, 2010
4) Description of Transfer Payment Program:
Community Futures is a program that supports community economic development and builds the capacity of communities to realize their full sustainable potential. The program provides financial support to CF organizations (e.g. CBDCs in Atlantic Canada) that, in collaboration with other partners and stakeholders, can assess their situation and develop strategies to meet their needs. It also provides support to small and medium-sized enterprises (SMEs) and social enterprises, and for undertaking appropriate community economic development initiatives.
5) Strategic Outcomes:
The program is linked to the Community Development strategic outcome.
6) Results Achieved:
In 2006-2007, the 41 Community Business Development Corporations (CBDCs) provided a total of 7,825 counselling sessions to clients throughout Atlantic Canada, and contributed to the creation of 1,870 jobs. The CBDCs also provided 1,806 loans for a total investment of $54 million in rural communities.
Program Activity	($ millions)
	7) 2004-2005 Actual Spending	8) 2005-2006 Actual Spending	2006-2007
	7) 2004-2005 Actual Spending	8) 2005-2006 Actual Spending	9) Planned Spending	10) Total Authorities	11) Actual Spending	12) Variance (9-11)
13) Fostering SME Development and Regional Economic Capacity Building
- Total Grants	0.0	0.0	0.0	0.0	0.0	0.0
- Total Contributions	0.0	0.0	0.0	0.2	0.2	(0.2)
- Total Other Types of TPs	0.0	0.0	0.0	0.0	0.0	0.0
14) Total for PA	0.0	0.0	0.0	0.2	0.2	(0.2)
13) Community Economic Development
- Total Grants	0.0	0.0	0.0	0.0	0.0	0.0
- Total Contributions	9.4	11.4	12.3	14.2	14.2	(1.9)
- Total Other Types of TPs	0.0	0.0	0.0	0.0	0.0	0.0
14) Total for PA	9.4	11.4	12.3	14.2	14.2	(1.9)
15) Total for Transfer Payment Program	9.4	11.4	12.3	14.4	14.4	(2.1)
16) Comment(s) on Variance(s):
The increase in ACOA’s 2006-2007 reference levels was to meet higher demands in operating costs. In an effort to align activities with funding levels for 2007-2008, the CBDCs have been made aware of ACOA’s budget limitations in advance.
17) Significant audit and evaluation findings and URL(s) to last audit and/or evaluation:
Audit: A follow-up audit of the Community Futures Program is planned for 2007-2008. The previous audit was concluded in 2005, and indicated that the Agency has exercised due diligence in the delivery of the program. More information can be found at http://www.acoa-apeca.gc.ca/e/library/audit/cfs.shtml. Evaluation: The presence of CBDCs helps keep people in rural communities. The CBDCs also contributed to the municipal tax base through job and business creation. The Community Futures evaluation (2003-2004) can be found at http://www.acoa-apeca.gc.ca/e/library/audit/cbdc/index.shtml. An impact evaluation of Community Futures will begin during 2007-2008, and is expected to be finalized in March 2008.

1) Transfer Payment Program:
Infrastructure Canada Program (ICP) – Voted Canada/Newfoundland and Labrador Agreement Canada/Prince Edward Island Agreement Canada/Nova Scotia Agreement Canada/New Brunswick Agreement
2) Start Date:			3) End Date:
December 12, 2000			March 31, 2009
4) Description of Transfer Payment Program:
The Infrastructure Canada program is a federal-provincial/territorial cost-shared initiative that improves urban and rural municipal infrastructure in Canada. Program objectives include improving Canadians’ quality of life through investments that enhance the quality of the environment, support long-term economic growth, improve community infrastructure, and build 21^st century infrastructure.
5) Strategic Outcomes:
The program is linked to the Community Development strategic outcome.
6) Results Achieved:
Since agreements were signed with the four Atlantic provinces, from 2000 to 2006, approximately $180 million of federal funds has been committed to over 700 approved projects under the ICP. The program’s first priority is green municipal infrastructure (i.e. projects that improve the quality of the environment and contribute to Canada's goal of clean air and clean water). ACOA is well ahead of target on green objectives, with 85% of federal funds having been directed to projects in this category.
Program Activity	($ millions)
	7) 2004-2005 Actual Spending	8) 2005-2006 Actual Spending	2006-2007
	7) 2004-2005 Actual Spending	8) 2005-2006 Actual Spending	9) Planned Spending	10) Total Authorities	11) Actual Spending	12) Variance (9-11)
Canada/Newfoundland and Labrador Agreement 13) Infrastructure Programming
- Total Grants	0.0	0.0	0.0	0.0	0.0	0.0
- Total Contributions	5.0	11.4	4.2	8.6	8.6	(4.4)
- Total Other Types of TPs	0.0	0.0	0.0	0.0	0.0	0.0
14) Total for PA	5.0	11.4	4.2	8.6	8.6	(4.4)
Canada/Prince Edward Island Agreement 13) Infrastructure Programming
- Total Grants	0.0	0.0	0.0	0.0	0.0	0.0
- Total Contributions	0.7	1.2	0.2	0.4	0.4	(0.2)
- Total Other Types of TPs	0.0	0.0	0.0	0.0	0.0	0.0
14) Total for PA	0.7	1.2	0.2	0.4	0.4	(0.2)
Canada/Nova Scotia Agreement 13) Infrastructure Programming
- Total Grants	0.0	0.0	0.0	0.0	0.0	0.0
- Total Contributions	10.0	10.6	4.4	9.2	9.2	(4.8)
- Total Other Types of TPs	0.0	0.0	0.0	0.0	0.0	0.0
14) Total for PA	10.0	10.6	4.4	9.2	9.2	(4.8)
Canada/New Brunswick Agreement 13) Infrastructure Programming
- Total Grants	0.0	0.0	0.0	0.0	0.0	0.0
- Total Contributions	16.1	5.9	4.2	1.6	1.6	2.6
- Total Other Types of TPs	0.0	0.0	0.0	0.0	0.0	0.0
14) Total for PA	16.1	5.9	4.2	1.6	1.6	2.6
15) Total for Transfer Payment Program	31.8	29.1	13.0	19.8	19.8	(6.8)
16) Comment(s) on Variance(s):
In its decision of May 16, 2005, Treasury Board granted an extension to the terms and conditions; on May 19, 2005, five orders-in-council were issued authorizing ministers responsible for the federal delivery partners to amend the agreements to extend the termination dates. Extensions to timelines permitted the orderly winding down of the program, and ensured projects were provided ample time to reach successful conclusion. The amended project completion deadline is March 31, 2008.
17) Significant audit and evaluation findings and URL(s) to last audit and/or evaluation:
Audit: A management audit of the Infrastructure Canada Program in 2005-2006 was positive, with no substantial issues noted. More information can be found at http://www.acoa-apeca.gc.ca/e/library/audit/icp.shtml. Evaluation: A summative evaluation will be conducted by Infrastructure Canada during fiscal year 2009-2010.

1) Transfer Payment Program:
Innovative Communities Fund (ICF) – Voted
2) Start Date:			3) End Date:
April 1, 2005			March 31, 2010
4) Description of Transfer Payment Program:
The program is designed to make a non-repayable contribution in support of strategic initiatives that respond to the economic development needs of communities. To effectively address the wide range of challenges and opportunities of regions, communities and sectors, the ICF takes a comprehensive approach to working with communities at various stages along the economic development continuum, while ensuring sustainable economic outcomes. There are two distinct components of the ICF. The first component (strategic community capacity) is designed to support non-commercial/non-profit strategic initiatives that target the economic development needs of rural communities. The second component (proactive investments) is intended to stimulate transformative change. This component of the ICF will support proactive identification and implementation of strategic opportunities with local partners. The program is designed to respond to the unique and varying needs of communities, and within this flexible approach there will be clear links to sustainable economic development outcomes. This focus on outcomes will ensure the program has the desired impact on the Atlantic region’s economy.
5) Strategic Outcomes:
The program is linked to the Community Development strategic outcome.
6) Results Achieved:
During 2006-2007, the ICF committed a total of $58 million to 167 projects across the region.
Program Activity	($ millions)
	7) 2004-2005 Actual Spending	8) 2005-2006 Actual Spending	2006-2007
			9) Planned Spending	10) Total Authorities	11) Actual Spending	12) Variance (9-11)
13) Community Economic Development
- Total Grants	0.0	0.0	0.0	0.0	0.0	0.0
- Total Contributions	0.0	7.9	10.0	38.8	38.8	(28.8)
- Total Other Types of TPs	0.0	0.0	0.0	0.0	0.0	0.0
14) Total for PA	0.0	7.9	10.0	38.8	38.8	(28.8)
15) Total for Transfer Payment Program	0.0	7.9	10.0	38.8	38.8	(28.8)
16) Comment(s) on Variance(s):
Demand for the program was higher than expected in the second year of the new program. Funds were transferred from the BDP to meet the requirements of the ICF.
17) Significant audit and evaluation findings and URL(s) to last audit and/or evaluation:
Audit: ACOA’s Audit Directorate conducted an internal audit of “Community Economic Development Program Delivery”, which included the Innovative Communities Fund. The final report is expected to be available by July 2007. Evaluation: A mid-term assessment is currently in the final stage of approval. A summative evaluation is planned for fiscal year 2009-2010.

1) Transfer Payment Program:
Saint John Shipyard Adjustment Initiative (SJSAI) – Voted
2) Start Date:			3) End Date:
May 28, 2003			May 31, 2008
4) Description of Transfer Payment Program:
The Saint John Shipyard Adjustment Initiative was approved with the objective of addressing overcapacity at the Saint John shipyard, which was a recurring problem for the industry. The SJSAI funding is designed to address the lack of manufacturing activities at the former Saint John shipyard site and the impact of the shipyard’s closure on New Brunswick’s economy.
5) Strategic Outcomes:
The initiative is linked to the Community Development strategic outcome.
6) Results Achieved:
Two projects totalling $45 million have been approved, demonstrating Irving Shipbuilding Inc.’s efforts toward the redevelopment of the site. These projects will create significant economic benefits, and will contribute to the target of the initiative by mitigating the economic impact of the shipyard’s closure.
Program Activity	($ millions)
	7) 2004-2005 Actual Spending	8) 2005-2006 Actual Spending	2006-2007
			9) Planned Spending	10) Total Authorities	11) Actual Spending	12) Variance (9-11)
13) Special Adjustment Measures
- Total Grants	0.0	0.0	0.0	0.0	0.0	0.0
- Total Contributions	0.7	1.1	24.5	13.0	13.0	11.5
- Total Other Types of TPs	0.0	0.0	0.0	0.0	0.0	0.0
14) Total for PA	0.7	1.1	24.5	13.0	13.0	11.5
15) Total for Transfer Payment Program	0.7	1.1	24.5	13.0	13.0	11.5
16) Comment(s) on Variance(s):
Planned spending has been adjusted to reflect construction schedules for the two projects currently approved. By December 2007, $45 million will have been disbursed. Projects are currently under evaluation that will utilize the remaining funds; these are predicted to flow in fiscal year 2007-2008.
17) Significant audit and evaluation findings and URL(s) to last audit and/or evaluation:
Audit: An internal audit was concluded in March 2006. The audit results show that the Agency has exercised due diligence in the delivery of the program, has complied with the terms and conditions of the program and with the Treasury Board Policy on Transfer Payments. More information can be found at http://www.acoa-apeca.gc.ca/e/library/audit/sjsai.shtml. Evaluation: A summative evaluation is planned, to be completed in March 2008.

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ARCHIVED - Atlantic Canada Opportunities Agency

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Transfer Payment Programs