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2012-13 Departmental Performance Report

Table of Contents

Minister’s Message

Minister of State’s Message

Section I: Organizational Overview

Section II: Analysis of Programs and Sub-Programs by Strategic Outcome

Section III: Supplementary Information

Section IV: Other Items of Interest

Endnotes

Minister's Message

 

The Honourable Rona Ambrose, P.C., M.P., Minister of Health

As Minister responsible for Western Economic Diversification Canada (WD), I am pleased to present the department's 2012–13 Departmental Performance Report.

 

Since its creation in 1987, WD has worked diligently to support a diverse and modern western Canadian economy, playing a vital role in strengthening the West. And this year has been no exception.

Over the last year, I am proud to say that WD achieved its goals in strengthening communities across the West while helping western businesses to be competitive and innovative. Through our support for improvements to community infrastructure, our strategic investments which promote business productivity and innovation, and our important role in facilitating business connections and showcasing western Canadian capabilities, we are building upon the strong foundation that Western Canada provides, and ensuring that this exceptional region continues to prosper.

Specifically, I know that Western Canadian businesses are strong, and well positioned to take advantage of sub-contracts under the built-in-Canada National Shipbuilding Procurement Strategy. We made the decision to build the Royal Canadian Navy's new ships right here in Canada. It will create 15,000 jobs across the country, and infuse $2 billion in annual economic benefit over the next 30 years. Under the Western Canadian Shipbuilding Action Plan, Western business are already benefitting.

WD continues to work strategically through partnerships—with all levels of government, industry associations, and not-for-profit organizations—to get results in creating jobs, growth and long-term prosperity for the West.

 

 

 

 

Minister of State's Message

 

The Honourable Michelle Rempel, P.C., M.P., Minister of State (Western Economic Diversification)

As Minister of State for Western Economic Diversification, I am pleased to share with you the 2012–13 Departmental Performance Report.

 

For over 25 years, WD has been diligently working to deliver on its goal and mandate to provide long term economic competitiveness to the West and improve the quality of life of its citizens by accelerating innovation, helping businesses succeed and building stronger communities.

This past year has seen WD deliver our Government’s Community Infrastructure Improvement Fund (CIIF), which has facilitated investments in communities across Western Canada. Through CIIF, we have contributed to much-needed upgrades that have helped to grow the local economy, created jobs, and left a legacy of lasting infrastructure.

I am proud to say that, in addition to strengthening communities, WD has continued to drive economic growth and prosperity through the delivery of our core programs. In the 2012–13 year, the Department worked diligently to support western Canadian industry by making strategic investments, including:

  • Investments that support innovation and facilitate the commercialization of new technology in emerging sectors in the West;
  • The continued promotion awareness of Western Canada to potential investors and working to facilitate connections between western businesses and international industry; and
  • Investing in improvements to business productivity to create jobs and growth.

WD’s strategic investments have been coupled with efforts to expand opportunities for private enterprises in the West. This includes WD organizing and leading eight supplier development tours to connect western Canadian businesses with prime contractors of federal defence procurement. The department also highlighted the West’s capabilities at 12 aerospace and defence trade shows, and by hosting the Western Canadian Shipbuilding Summit, which brought together more than 600 stakeholders under the National Shipbuilding Procurement Strategy.

Moving forward, we remain committed to expanding opportunities to ensure our region’s continued economic growth and prosperity.  Together, we are showing the world that Canada’s West Means Business.

 


 

Section I: Organizational Overview

Raison d'être

Our Vision

To be leaders in creating a more diversified western Canadian economy that has strong, competitive and innovative businesses and communities.

Western Economic Diversification Canada (WD) was established in 1987 to promote the development and diversification of the economy of Western Canada and to advance the interests of the West in national economic policy, program and project development and implementation.

As the federal economic development department for Western Canada, WD develops and supports economic policies, programs and activities that promote economic growth and assist Western Canada in responding to the economic challenges and opportunities it faces.

Responsibilities

WD's mandate, which is set out in the Western Economic Diversification Act, is to support the development and diversification of the western Canadian economy. This broad mandate allows the department to implement diverse programs and initiatives across the West to help western Canadians create strong, competitive and innovative businesses and communities.

WD helps build on the West's traditional economic strengths while supporting the transition to a more diverse, modern economy.

With offices in each western province and its headquarters in Edmonton, WD provides a strong federal presence in the economic development of the West. Its western base has enabled the department to foster extensive partnerships with business and community organizations, research and academic institutions, as well as provincial and municipal governments across the West.

WD works to convey western perspectives to national economic policy and program decision-makers, working within the federal system to ensure that western interests and perspectives are brought to bear in federal decision making.

WD delivers programs that strengthen the economy of Western Canada in the following areas:

  • Business Development: WD helps small and medium-sized enterprises (SMEs) develop and grow, create jobs, expand their markets, increase their exports and become more innovative and productive. Each year, the more than 100 partners in WD's Western Canada Business Service Network Start, grow, expand your business (WCBSN)1  provide thousands of western entrepreneurs with the information, training and capital they need to start and grow their businesses. In addition, WD supports SMEs to become more productive and engage in international business through other key project investments;
  • Innovation: WD promotes the development and growth of the knowledge-based economy by building innovation capacity and supporting the commercialization of new knowledge-based products, processes and services. The department's investments help to provide the foundation for future economic diversification and growth; and
  • Community Economic Development: WD helps rural and urban communities sustain their local economies, adjust to changing economic circumstances and invest in public infrastructure. The 90 Community Futures2  organizations supported by WD in the West play a role in leading community economic development activities and initiatives to help rural communities compete in a changing global economy.

To ensure that its programs have the greatest impact on the West, WD focused its investments in priority areas–business productivity and growth, trade and investment and technology commercialization. In addition, the department continued to advance western interests in national economic policy, program and project development and implementation.

WD also delivers national initiatives on behalf of the Government of Canada in the West. These have included the Community Infrastructure Improvement Fund (CIIF) under Canada's Economic Action Plan (EAP), programming to upgrade and expand western Canadian infrastructure, as well as the Economic Development Initiative (part of the federal Roadmap for Canada's Linguistic Duality 2008–13) aimed at supporting businesses and economic development in western Canadian francophone communities. WD's flexibility and ability to implement programs such as these enables it to respond quickly to the priorities and needs of the federal government in the West.

Strategic Outcome and Program Alignment Architecture3

In 2012–13, WD supported the programs and sub-programs listed below to achieve its strategic outcome of developing and diversifying the western Canadian economy. These programs, comprising the department's Program Alignment Architecture (PAA), help ensure that Western Canada continues to make a strong contribution to Canada's economic success.

Strategic Outcome Programs Sub-Programs
The western Canadian economy is developed and diversified Business
Development
Improve Business Productivity
Market and Trade Development
Industry Collaboration
Foreign Direct Investment
Access to Capital
Innovation Technology Adoption and Commercialization
Technology Linkages
Technology Research and Development
Community Innovation
Technology Skills Development
Knowledge Infrastructure
Community Economic Development Community Planning
Community Development
Community Economic Adjustment
Community Infrastructure
Policy, Advocacy and Coordination Collaboration and Coordination
Research and Analysis
Advocacy
  Internal Services Governance and Management Support
Resource Management Services
Asset Management Services

 

Organizational Priorities

In 2012–13, WD focused on the six priorities described below. These key areas of focus are at the core of the department's efforts to develop and diversify the western Canadian economy.

Summary of Progress Against Priorities
Priority Type4 Program

Technology Commercialization

On-going

Innovation

Summary of Progress
  • 36.9% of WD's core grant and contribution (G&C) expenditures was related to technology commercialization (target was 37.5%).
  • WD supported nine new projects in this priority area, totaling $15.0M, which will facilitate technology commercialization in emerging sectors in Western Canada. This includes funding for the Li Ka Shing Applied Virology Institute at the University of Alberta,5 the Centre for Soft Materials at Simon Fraser University,6 the Bioscience Applied Research Centre at the Saskatchewan Institute of Applied Science and Technology7 as well as AssentWorks8 in Winnipeg.
  • Further to its announcement in the 2012 Federal Budget, WD developed the Western Innovation (WINN) Initiative to assist SMEs in the commercialization of new innovative products, processes and services for domestic and international markets, with a particular focus on creating market-ready technologies. When it is launched in 2013–14, WINN will ensure that the department's investments continue to support job creation and enable western businesses to be more productive and competitive in the global economy.

Trade and Investment

On-going

Business Development

Summary of Progress
  • 8.3% of WD's core G&C expenditures was related to trade and investment (target was 6.0%).
  • WD supported 15 new projects in this priority area, totaling $9.4M, which will strengthen western Canadian engagement in international markets and global value chains, facilitate connections between western Canadian businesses and multinational aerospace companies and promote Western Canada as an investment destination. This includes funding for Ag-West Bio Inc.,9 the Institute for Applied Poultry Technologies10, 2012 Abbotsford Aerospace & Defence Expo11, 2012 Farnborough International Airshow12, CentrePort Canada Inc.13 and the Canadian Hydrogen and Fuel Cell Association.14

Business Productivity and Growth

On-going

Business Development

Summary of Progress
  • 36.0% of WD's core G&C expenditures was related to business productivity and growth (target was 33.5%).
  • WD supported 14 new projects in this priority area, totaling $14.0M, directed at SMEs to create jobs, improve business processes, adopt best practices, create business networks and improve access to skilled labour. This includes funding for Parkland Regional College15,Portage College16 and Camosun College17.
  • The WCBSN provided a total of 417,931 business information, advisory and training services to SMEs in rural and urban areas, as well as $84.98M in loans that leveraged an additional $124.83M. The impacts included: 6,391 jobs created or maintained through lending18 and 2,221 jobs created or maintained through business services19; and 1,515 businesses created, maintained or expanded through lending and 1,114 businesses created, maintained or expanded through business services.

Advancing the Interests of Western Canada

New

Policy, Advocacy and Coordination

Summary of Progress
  • To help advance and address the needs and interests of western Canadians, WD, through its newly implemented policy framework, identified key areas of focus to help guide policy engagement on key national priorities.
  • WD influenced national policy discussions at the most senior levels of government decision making, including engagement with caucus, and central agencies on emerging isssues such as the Government of Canada's response to the U.S. Federal Maritime Commission investigation. WD also engaged in various Deputy Minister-level committees.
  • WD strengthened business connections and facilitated networking across the shipbuilding industry through activities outlined in Western Canada's Shipbuilding Action Plan20.
  • WD facilitated business development opportunities and access to international markets by leveraging Canada's Industrial and Regional Benefits policy to respond to 18 supplier development requests and to conduct eight supplier development tours and events on behalf of international aerospace and defence firms.
  • WD identified opportunities for economic growth or diversification by representing western interests on all Major Crown Procurements and participating in 12 aerospace and defence-related tradeshows and events.

Performance Measurement

On-going

All programs

Summary of Progress
  • The department's PAA and Performance Measurement Framework (PMF) were streamlined, reducing the number of programs from five to four, reducing the number of sub-programs from 20 to 13 and reducing the number of performance indicators from 106 to 35.
  • Employee training was initiated in March 2013 on the changes to the department's PAA and PMF, as well as the changes to the departmental systems, in order to enhance performance data capture, measurement, reporting and the use of performance results in decision making.

Managing in a Changing Environment

New

All programs

Summary of Progress
  • WD implemented an investment strategy and reviewed operating resources to ensure that WD has allocated resources to areas that have the greatest impact on the western Canadian economy.
  • The Deputy Minister led a staff engagement process to develop a vision for WD 2015 that focused on improving the workplace, employee development and improving programs and services.
  • WD began the consolidation of its accounting operations to the Saskatoon office and its procurement functions to the Edmonton office. The department also adopted a lifecycle approach to managing its G&C projects; this involves having the same staff member assigned to a project from conception to completion, ensuring better continuity in developing and monitoring funded projects.
  • WD managed the transition to a new operating model for information management and technology (IMT) by signing a memorandum of understanding with Shared Services Canada and initiating the re-alignment of remaining IMT resources.
  • WD collaborated with other Regional Development Agencies (RDAs) on common systems and tools for G&C programs to improve efficiency and service to clients. Examples include: hosting Canada Economic Development for Regions of Quebec's CIIF application form on the WD server; and facilitating other RDAs' testing of the Client Relationship Management (CRM) software system through WD's test environment.
  • In response to the 2011 Public Service Employee Survey, WD identified departmental actions and activity leads and outlined milestones to assess progress against those actions.

 

Risk Analysis

Risk Summary Table (with a focus on external risks)
Risk Risk Response Strategy Link to Program Alignment Architecture Link to Organizational Priorities

Low rate of investment in research and development (R&D) and adoption of technologies by SMEs

  • Supported nine new Technology Adoption & Commercialization projects totaling $15.0M
  • Development of the WINN Initiative
  • Innovation
  • Technology Commercialization

Declining competitiveness and slow productivity growth of SMEs

  • Supported 14 new Improve Business Productivity projects totalling $14.0M
  • Business Development
  • Business Productivity and Growth

Small domestic market and increasing global competition

  • Supported 15 new Market and Trade Development projects totaling $9.4M

 

  • Business Development
  • Trade and Investment

Not achieving satisfactory client focused delivery results with the launch of the new WINN Initiative

  • Development and adoption of Client Relationship Management software to manage a higher expected volume of applications and clients
  • Enhance internal processes and train staff appropriately
  • Innovation
  • Technology Commercialization
  • Trade and Investment

WD and other federal government policy and programs do not reflect the needs of western Canadians

  • Support research that assists in the development of relevant policy options
  • Collaborate with key internal and external stakeholders
  • Policy, Advocacy and Coordination
  • Advancing the Interests of Western Canada

 

Organizational Context for Risks

The risks and mitigation strategies outlined in the table above are consistent with those outlined in the 2012–13 Report on Plans and Priorities, as well as WD's Corporate Risk Profile and mitigation plan.

The economic challenges or risks facing Western Canada—low rates of R&D, declining competitiveness, slow productivity growth, a small domestic market and increasing global competition—have been long-standing. By pursuing new investments (described in this Departmental Performance Report (DPR)) in the priority areas of technology commercialization, business productivity and growth, as well as trade and investment, WD will help to diversify and grow the western Canadian economy.

WD's programs and approaches continue to evolve to meet client needs and expectations. The development in 2012–13 and introduction in 2013–14 of the WINN Initiative will more directly help SMEs to commercialize and market their technologies. WINN will involve working directly with a new client base, managing repayable contributions and an increased volume of applicants. Given that this is a new initiative for WD, the department is taking steps to ensure that it achieves satisfactory client focused delivery results. This includes the development and adoption of CRM software to manage a high volume of applications and clients, as well as enhanced internal processes and training for staff.

An important part of WD's mandate is to advocate for Western Canada in the development of national policies and programs. As part of its Policy, Advocacy and Collaboration activities, WD has developed a policy framework to guide departmental policy engagement on key national policy priorities. The department works to ensure that western Canadian interests are considered by central agencies and other government departments.

 

Summary of Performance

Financial Resources – Total Departmental ($ Thousands)
Total Budgetary Expenditures
(Main Estimates)
2012–13
Planned Spending
2012–13
Total Authorities
(available for use) 2012–13
Actual Spending
(authorities used)
2012–13
Difference (Planned vs. Actual Spending)
176,307 176,307 199,762 183,718 (7,411)

Note: Planned Spending varies from Total Authorities due to timing difference between appropriation approvals versus Budget 2012 announcements for the Community Infrastructure Improvement Fund (CIIF).  Actual Spending varies from Planned as a result of time required in responding to new expenditure targets in the WD Investment Strategy, as well as a transfer of funds to Infrastructure Canada.

 

Human Resources (Full-Time Equivalents-FTEs)
Planned
2012–13
Actual
2012–13
Difference
2012–13
408 368 40

Note: The difference between planned and actual FTEs for 2012–13 is attributed to greater efficiencies in program delivery and administration.

 

Performance Summary Table for Strategic Outcome and Programs ($ thousands) – Excluding Internal Services
Strategic Outcome: The western Canadian economy is developed and diversified
Program Total Budgetary Expenditures
(Main Estimates 2012–13)
Planned Spending Total Authorities
(available for use) 2012–13
Actual Spending (authorities used) Alignment to Government
of Canada Outcomes
2012–13 2013–14 2014–15 2012–1321 2011–12 2010–11
Business Development 63,019 63,019 47,980 46,440 65,620 57,741 53,745 48,160 Strong Economic Growth
Innovation 62,259 62,259 45,248 42,867 57,902 59,830 66,545 77,102 An Innovative and Knowledge-Based Economy
Community Economic Development 20,832 20,832 57,605 34,419 43,220 35,377 39,889 304,492 Strong Economic Growth
Policy, Advocacy and Coordination 8,190 8,190 8,613 8,741 8,897 8,539 7,631 8,658 Strong Economic Growth
Strategic Outcome
Sub-Total
154,300 154,300 159,446 132,467 175,639 161,487 167,810 438,412  

Note: Actual Spending under Community Economic Development (CED) is greater than Planned Spending amounts for 2012–13 by $14.5 million primarily due to increased spending for the CIIF, which was offset by a decrease in spending related to a funding transfer to Infrastructure Canada. Planned Spending under CED increases from 2012–13 to 2013–14 as a result of increased spending for the CIIF, as well as realignment of project spending under the new Program Alignment Architecture (PAA) for 2013–14. The variance in Actual Spending from 2010–11 to 2011–12 is due to the wind down of funding for the Community Adjustment Fund (CAF) and Recreational Infrastructure Canada (RInC) initiatives.

 

Performance Summary Table for Internal Services ($ thousands)
Internal Services Total Budgetary Expenditures
Main Estimates 2012–13)
Planned Spending Total Authorities (available for use)
2012–13
Actual Spending (authorities used)
2012–13 2013–14 2014–15 2012–13 2011–12 2010–11
  22,007 22,007 20,755 17,737 24,123 22,231 27,473 28,079
Sub-Total 22,007 22,007 20,755 17,737 24,123 22,231 27,473 28,079

 

Total Performance Summary Table ($ thousands)
Strategic Outcome and Internal Services Total Budgetary Expenditures
(Main Estimates 2012–13)
Planned Spending Total Authorities
(available for use)
2012–13
Actual Spending (authorities used)
2012–13 2013–14 2014–15 2012–13 2011–12 2010–11
  176,307 176,307 180,201 150,204 199,762 183,718 195,283 466,491
Total 176,307 176,307 180,201 150,204 199,762 183,718 195,283 466,491

Total Authorities of $199.8 million for 2012–13 were greater than planned spending of $176.3 million by $23.5 million, as new funding was received through Supplementary Estimates. This consisted of $23.1 million for the CIIF; $3.4 million from collections of repayable contributions; $2.5 million for severance pay, parental leave benefits and leave payout; $2.2 million for operating budget carry forward; $1.5 million for the International Policy Program at the University of Calgary; and $0.6 million for various other minor adjustments. This was offset by reduced appropriations of $9.8 million.

Actual Spending for 2012–13 is lower than Total Authorities, due to a $6.0 million surplus from the Western Diversification Program; a $4.9 million surplus in WD operating expenditures (Vote 1); and a $5.1 million transfer from 2012–13 to meet commitment requirements in future years, including $4.3 million for the CIIF.

 

Expenditure Profile

Departmental Spending Trend

graph: Departmental Spending Trend

WD's actual spending, including sunset programs, for 2012–13 was $183.7 million. Compared with actual spending of $195.3 million in 2011–12, this represents a decrease of six percent, or $11.6 million. The difference between total spending in 2012–13 and 2011–12 is due to a decrease of $6.7 million in operating expenditures and $4.9 million in grants and contributions (Gs&Cs). The net decrease in G&Cs is due in part to the completion of programs and is explained in more detail as follows:

  • An increase of $18.8 million under the CIIF;
  • A decrease of $12.4 million under the EAP for the Recreational Infrastructure Canada initiative;
  • A decrease of $8.4 million under WD's core programs related to reduced appropriations; and
  • A decrease of approximately $2.9 million resulting from normal program fluctuation.

The figures presented in the above chart do not include funds spent through Other Government Department (OGD) suspense accounts on behalf of other federal departments. For example, in fiscal year 2012–13, WD expended approximately $77.9 million on behalf of Infrastructure Canada under the Building Canada Fund, Municipal Rural Infrastructure Fund and the Canada Strategic Infrastructure Fund.

 

Estimates by Vote

For information on WD's organizational Votes and/or statutory expenditures, please see the Public Accounts of Canada 2013 (Volume II)22.  An electronic version of the Public Accounts 2013 is available on the Public Works and Government Services Canada's Web site.

 

Contribution to the Federal Sustainable Development Strategy

The Federal Sustainable Development Strategy (FSDS) outlines the Government of Canada's commitment to improving the transparency of environmental decision making by articulating its key strategic environmental goals and targets. WD ensures that consideration of these outcomes is an integral part of its decision-making processes. WD contributes to the following FSDS themes as denoted by the visual identifiers and associated programs below:

i) Program 2: Innovation:

Addressing Climate Change and Air Quality

Theme I:
Addressing Climate Change and Air Quality

Maintaining Water Quality and Availability

Theme II:
Maintaining Water Quality and Availability

 

ii) Program 5: Internal Services:

Shrinking the Environmental Footprint of Government

Theme IV:
Shrinking the Environmental Footprint -
Beginning with Government

For further information on WD's activities to support sustainable development and strategic environmental assessment, please visit the departmental Web site. For complete information on the FSDS, please visit the Environment Canada Web site23.

Section II: Analysis of Programs and Sub-Programs by Strategic Outcome

Strategic Outcome: The western Canadian economy is developed and diversified

Western Economic Diversification Canada (WD) works to develop and diversify the western Canadian economy, helping to build businesses that are innovative and competitive globally, while diversifying the base of the western Canadian economy beyond primary resource industries.

WD's strategic outcome is advanced through the following programs:

  • Business Development: Strong small and medium-sized enterprises (SMEs) in Western Canada with improved capacity to remain competitive in the global marketplace;
  • Innovation: A strong knowledge-based economy;
  • Community Economic Development (CED): Communities have increased economic opportunities and capacity to respond to economic challenges, as well as the necessary investments in public infrastructure;
  • Policy, Advocacy and Coordination (PAC): Policies and programs that strengthen the western Canadian economy; and
  • Internal Services: Effective and efficient support for advancing the department's strategic outcome.

WD utilizes a number of economic indicators to gauge the competiveness, growth and diversity of the western Canadian economy. The table below outlines Western Canada's performance across four economic indicators over the past four years. Canada's performance in these indicators is included as a benchmark.

Western Canada's performance across four economic indicators over the past four years"
Performance Indicators   Target for 2012 2009 2010 2011 2012 (Preliminary)
Real Gross Domestic Product (GDP) growth Canada - -2.9% 3.4% 2.5% 1.7%
West 3.0% -3.6% 3.7% 4.1% 2.9%
Labour productivity growth (change in real GDP per hour worked) Canada - 1.2% 0.8% 0.4% 0.1%
West 1.5% 1.2% 1.5% 1.3% -0.2%
Primary production as a percentage of GDP Canada - 9.1% 9.5% 9.8% 9.6%
West 14.3% 19.2% 19.4% 19.7% 19.5%
Gross Domestic Expenditures on Research & Development (R&D) as percentage of GDP Canada - 1.9% 1.8% 1.7% Data not yet available
West 1.0% 1.3% 1.2% Data not yet available

The results show strong economic growth in Western Canada for a third consecutive year following the downturn in 2009. Over the past three years, growth in Western Canada's real GDP clearly exceeded that of Canada, although in 2012, Canada's labour productivity growth exceeded that of Western Canada. In 2012, real GDP growth in Western Canada was 2.9 percent. However, this level of real GDP growth in the West did not help contribute to an increase in labour productivity, as the increase in real GDP rose less than the number of hours worked.

Primary production as a percentage of GDP remained stable in Western Canada at 19.5 percent between 2011 and 2012, which is consistent with years prior to the recessionary period between 2008 and 2009. (This indicator is intended to gauge Western Canada's diversification away from the resource industries. The lower the percentage, the less dependent the economy will be on resource industries as a source of wealth.)

Further, gross domestic expenditures on R&D as a percentage of GDP provides an indication of support of the knowledge-based economy, which leads to diversification of the economy. In Western Canada, this indicator has been stable.

Program: Business Development

Program Description

This program works with western Canadian businesses, industry and research organizations to undertake initiatives to enhance business productivity and competitiveness; support trade and investment attraction and penetration of western Canadian technologies, services and value-added products into international markets. Value-added production will be strengthened through support for initiatives in priority sectors to introduce new products, technologies or innovations to existing production and processes. Access to risk capital and business services for entrepreneurs and small business will also be improved through programs and services offered in conjunction with other business services organizations and associations.

Financial Resources - For Program Level ($ thousands)
Total Budgetary Expenditures
(Main Estimates) 2012–13
Planned Spending
2012–13
Total Authorities
(available for use)
2012–13
Actual Spending (authorities used)
2012–13
Difference
(Planned vs. Actual Spending)
63,019 63,019 65,620 57,741 5,278

 

Human Resources (Full-Time Equivalents—FTEs) – For Program Level
Planned
2012–13
Actual
2012–13
Difference
2012–13
80 53 27

 

Note: The number of planned FTEs in the 2012–13 Report on Plans and Priorities (RPP) was based on extrapolated historic trends which is at variance with the actual utilization. WD will review and adjust planned FTEs for future RPPs. The 53 actual FTEs in this area has increased from the 52 actual FTEs reported in the 2011–12 Departmental Performance Report (DPR).

Performance Results - For Program Level
Expected Result Performance Indicators Targets Actual Results
Strong SMEs in Western Canada with improved capacity to remain competitive in the global marketplace SME employment (excluding non-employee) 2.6M 2.6M (2012)
Annual international trade: value of exports excluding primary production sectors $44.0B $59.1B (2012)

Business Development Performance Analysis and Lessons Learned

WD tracks SME revenue and employment levels, as well as annual international trade (excluding primary production) as indicators of SMEs' capacity to remain competitive in the global marketplace. Economic growth in Western Canada outpaced the national average in 2012, and Western Canada's economy met expectations for SME employment and exceeded expectations for annual international trade. SME employment grew to over 2.6 million. The value of Western Canada's annual international trade in non-resource based sectors showed strong growth in 2012; the value of exports excluding primary production sectors increased to $59.1 billion, a 34.3 percent increase over the previous year. While WD's programs contribute to these results, there are many other economic factors that influence these results, most notably global demand and prices for Western commodities.

WD conducted an evaluation of the Women's Enterprise Initiative during 2012–13, which concluded that the initiative continues to fill an important programming gap in business support services for female entrepreneurs. Clients reported improved business practices and business survival. The number of self-employed women in Western Canada has increased 27 percent since the program's inception in 1995. The department is developing a management action plan in response to recommendations made in the evaluation, which will be posted on WD's Web site24.

WD conducted an evaluation of its Trade and Investment activities during 2012–13, which concluded that the department's activities in this area overall have been successful in supporting SME participation in trade shows and in market exploration, promoting western Canadian capabilities to potential foreign buyers or investors and building international partnerships and networks. The evaluation offered a number of suggestions for improvement, including: streamlining project approval and funding disbursement processes; clarifying and communicating the support available and eligibility criteria; improving internal governance structures; enhancing collaboration with industry and federal, provincial and regional authorities; being more proactive in seeking out partnerships and projects; providing support to SMEs directly; and aligning programming with other Regional Development Agencies to create a level playing field across the country. The department is developing a management action plan in response to recommendations made in the evaluation, which will be posted on WD's Web site25.

Sub-Programs related to Business Development:

Descriptions of the following Business Development sub-programs can be found on WD's Web site: Sub-Program Description Item A26:

  • Improve Business Productivity
  • Market and Trade Development
  • Industry Collaboration
  • Foreign Direct Investment
  • Access to Capital
Financial Resources – For Sub-Program Level ($ thousands)
Sub-Program Planned Spending
2012–13
Actual Spending
2012–13
Difference
2012–13
Improve Business Productivity 34,418 33,214 1,204
Market and Trade Development 12,361 9,577 2,784
Industry Collaboration 685 100 585
Foreign Direct Investment 1,483 647 836
Access to Capital 14,072 14,203 (131)
Total 63,019 57,741 5,278

 

Human Resources (FTEs) - For Sub-Program Level
Sub-Program Planned
2012–13
Actual
2012–13
Difference
2012–13
Improve Business Productivity Planning for FTEs occurred at the program level for 2012–13 and 2013–14. 34 Not Applicable
Market and Trade Development 11
Industry Collaboration -
Foreign Direct Investment 3
Access to Capital 5
Total 80 53 27

 

Note: The number of planned FTEs in the 2012–13 Report on Plans and Priorities (RPP) was based on extrapolated historic trends which is at variance with the actual utilization. WD will review and adjust planned FTEs for future RPPs. The 53 actual FTEs in this area increased from the 52 actual FTEs reported in the 2011–12 Departmental Performance Report.

Performance Results - For Sub-Program Level
Sub-Program Expected Results Performance Indicators Targets Actual Results
Improve Business Productivity Increase in SME competitiveness and productivity % client satisfaction with the business services provided through the funded project 82% 97%
# jobs created or maintained 4606 4104
# businesses created/maintained/expanded 2200 2094
# clients trained 21,974 25,869
Market and Trade Development Increased participation in international markets # industry association partnerships created 13 73
# of companies participating in export and market development initiatives 448 1539
# projects promoting participation in major international events 26 33
Industry Collaboration Increase in number of successful partnerships and strategic alliances # partnerships/strategic alliances No reported outcomes anticipated 4
Foreign Direct Investment Increase in foreign investment in Western Canada $ in direct investment facilitated by WD $5,380,835 $6,000,000
Access to Capital Increased investment to targeted western Canadian firms # of jobs created/maintained 5177.0 6417.5
# of businesses created/ maintained/expanded 1307 1483
$s capital funds provided $70,485,244 $78,926,644
$s leveraged $69,720,024 $124,589,593

 

Performance Analysis and Lessons Learned from Sub-Programs Related to Business Development

WD sets targets annually for all performance indicators at the sub-program level in the departmental PMF and tracks progress against targets based primarily upon the results that G&C projects report during the fiscal year. WD met or exceeded targets for 10 of the 12 business development-related performance indicators for which reported outcomes were anticipated (see Performance Results table above). In addition, results were reported against a 13th indicator, for which no activities or outcomes were anticipated (Industry Collaboration – number of partnerships/strategic alliances).

WD identified two key indicators specifically related to the department's business productivity and growth priority—number of businesses created, maintained or expanded and dollar value of capital funds provided—and two key indicators for the trade and investment priority—number of companies participating in export and market development initiatives and value of direct investment facilitated by WD. The results at year end in these key areas exceeded targets (see Performance Results table above). Overall, variances (plus or minus) are largely due to the multi-year nature of funded projects that sometimes report results earlier or later than expected, the reliance on funded organizations to report results, as well as a low volume of projects where individual variances can impact overall results significantly.

Successfully completed projects include the following:

  • FP Innovations—engaged more than 50 First Nation communities across British Columbia (BC) to devise plans for commercializing local timber resources (BC Region, Improve Business Productivity);
  • Portage College—purchased equipment to support a Heavy Equipment Operator Program (Alberta (AB) Region, Improve Business Productivity);
  • Saskatchewan Trade & Export Partnership Inc.—provided exporter readiness services to Saskatchewan companies interested in exporting. (Saskatchewan (SK) Region, Market and Trade Development); and
  • Canadian Malting Barley Technical Centre—supported an advanced malting and brewing laboratory and testing centre (Manitoba (MB) Region, Market and Trade Development).

For further details regarding the impact of the completed projects listed above, please refer to the WD Success Stories27 on the department's Web site.

Program: Innovation

Program Description

This program facilitates the West's transition to a knowledge-based economy. Through innovation, knowledge is translated into new products and services and to new ways of designing, producing or marketing existing products or services for public and private markets. This recognizes that innovation occurs at the firm level, through a highly complex interdependent system that includes elements such as knowledge infrastructure, basic and applied R&D, highly qualified personnel, access to adequate patient financing, technology commercialization facilities and support systems and mechanisms to link these elements to each other. The process of innovation is not linear or isolated but occurs within a broader context known as an "innovation system". This will strengthen the western innovation system in order to facilitate the development of clusters and to enhance the potential of innovation to create value and wealth.

Financial Resources – For Program Level ($ thousands)
Total Budgetary Expenditures (Main Estimates) 2012–13 Planned Spending 2012–13 Total Authorities (available for use) 2012–13 Actual Spending (authorities used) 2012–13 Difference
(Planned vs. Actual Spending)
62,259 62,259 57,902 59,830 2,429

 

Human Resources (FTEs) – For Program Level
Planned
2012–13
Actual
2012–13
Difference
2012–13
62 36 26

 

Note: The number of planned FTEs in the 2012–13 RPP was based on extrapolated historic trends which is at variance with the actual utilization. WD will review and adjust planned FTEs for future RPPs. The 36 actual FTEs is the same as the number of FTEs reported in the 2011–12 DPR.

Performance Results – For Program Level
Expected Result Performance Indicators Targets Actual Results
A stronger knowledge-based economy Total income from the commercialization of intellectual property $21.8M Data source no longer available
Business Expenditures on Research and Development (BERD) as a percentage of GDP 0.59% 0.53% (2010)
Employment in natural and applied science and related occupations as a percentage of total employment 6.50% 6.83% (2012)

Innovation Performance Analysis and Lessons Learned

WD tracks Western Canada's progress in innovation through high-level indicators such as western Canadian university income from the commercialization of intellectual property, BERD and employment in natural and applied science. Income from commercialization of intellectual property in Western Canada is no longer available through Statistics Canada, which has discontinued the Survey of Intellectual Property Commercialization in the Higher Education Sector28 as of 2009. BERD as a percentage of GDP has remained stable from the baseline year of 2004 through 2010 at approximately 0.5 percent, which is low compared to Canada as a whole (1.0 percent). Canada's rate is low compared to international competitors.

Following an evaluation of the Innovation Program, WD reported in the 2011–12 DPR that, based on the evaluation's recommendation, it would review the effectiveness and efficiency of program delivery. The department made progress during 2012–13 implementing an on-line application process for all Western Diversification Program applicants, better tracking of projects throughout the assessment process and streamlining the Program Alignment Architecture for 2013–14 to support effective program management. This evaluation can be found on WD's Web site: Departmental Reports.29

Sub-Programs related to Innovation:

Descriptions of the following Innovation sub-programs can be found on WD's Web site: Sub-Program Description Item B:30

  • Technology Adoption and Commercialization
  • Technology Linkages
  • Technology Research and Development
  • Technology Skills Development.
  • Community Innovation
  • Knowledge Infrastructure

 

Financial Resources - For Sub-Program Level ($ thousands)
Sub-Program Planned Spending
2012–13
Actual Spending
2012–13
Difference
2012–13
Technology Adoption and Commercialization 38,437 44,728 (6,291)
Technology Linkages 5,026 5,018 8
Technology Research and Development 7,274 4,208 3,066
Technology Skills Development 1,026 298 728
Community Innovation 1,328 65 1,263
Knowledge Infrastructure 9,168 5,513 3,655
Total 62,259 59,830 2,429

 

Human Resources (FTEs) – For Sub-Program Level
Sub-Program Planned
2012–13
Actual
2012–13
Difference
2012–13
Technology Adoption and Commercialization Planning for FTEs occurred at the program level for 2012–13 and 2013–14. 25 Not Applicable
Technology Linkages 2
Technology Research and Development 1
Technology Skills Development 2
Community Innovation -
Knowledge Infrastructure 6
Total 62 36 26

Note: The number of planned FTEs in the 2012–13 RPP was based on extrapolated historic trends which is at variance with the actual utilization. WD will review and adjust planned FTEs for future RPPs. The 36 actual FTEs is the same as the number of FTEs reported in the 2011–12 DPR.

Performance Results – For Sub-Program Level
Sub-Program Expected Results Performance Indicators Targets Actual Results
Technology Adoption and Commercialization An increase in the number of technologies developed in research institutions that have commercialization potential and an increase in technologies adopted by existing firms. # of patents filed/issued 24 8
# of technology demonstrations 63 195
# of technologies adopted 50 43
Technology Linkages Increased connections and synergies among innovation system members. # of partnerships/networks formed 14 4
# of attendees at funded conferences 1473 1242
# of new or incremental members of innovation associations 6 26
Technology Research and Development Applied R&D leading to technologies with commercialization potential. # of skilled personnel engaged in R&D through funded projects 25 6
# of products or processes that are identified for further R&D 8 8
# of demonstrations of viability of technology 5 5
Technology Skills Development Increase in training, education and skills building of highly qualified people. # of training events (specific course, series of courses, "boot camp', etc.) 2 2
# of people trained through training events 251 263
Community Innovation Increased technological capacity in a community. $ invested in knowledge infrastructure or technology commercialization facilities No reported outcomes anticipated $1,000,000
Knowledge Infrastructure Increase in physical assets for R&D or training. # of square meters dedicated to R&D and skills training 2825 3970
$ value of R&D undertaken for a 3-year period following completion of the new facility or equipment set-up $5,034,746 $18,850,811
#of incremental physical assets (buildings and equipment) 106 176

A: Description: graphic : Addressing Climate Change and Clean Air W: Description: graphic : Maintaining Water Quality and Availability
Performance Analysis and Lessons Learned from Sub-Programs Related to Innovation

WD sets targets annually for all performance indicators at the sub-program level in the departmental PMF and tracks progress against targets based primarily upon results that G&C projects report during the fiscal year. WD met or exceeded targets for nine of the 14 innovation-related performance indicators for which reported outcomes were anticipated (see Performance Results table above). In addition, results were reported against a 15th indicator, for which no reported outcomes were anticipated (Community Innovation – dollars invested in knowledge infrastructure or technology commercialization facilities).

WD identified two key indicators specifically related to the department's technology commercialization priority—number of patents filed or issued and number of technologies adopted. WD fell short of its targets set for these two indicators because of changes in project time lines, which resulted in either results being realized earlier (in 2011–12) or later than expected (in 2013–14) (see Performance Results table above). Overall, variances (plus or minus) are largely due to the multi-year nature of funded projects that sometimes report results earlier or later than expected, the reliance on funded organizations to report results, as well as a low volume of projects where individual variances can impact overall results significantly.

Successfully completed projects include:

  • Emily Carr University—established the first western Stereoscopic 3D Centre of Excellence in digital media and film technologies (BC Region, Knowledge Infrastructure);
  • Alberta Centre for Advanced MNT Products—acquired and installed specialized technology commercialization equipment to enable SMEs to develop technology and commercialize new products (AB Region, Technology Adoption and Commercialization);
  • Canadian Light Source Inc.provided funding for additional equipment for Phase II Beamlines (SK Region, Knowledge Infrastructure); and
  • University of Manitoba—developed a High Performance Computing Facility (MB Region, Technology Linkages).

For further details regarding the impact of the completed projects listed above, please refer to WD Success Stories31 on the department's Web site.

Program: Community Economic Development

Program Description

This program involves economic development and diversification initiatives that support communities to sustain their economies and adjust to changing and challenging economic circumstances. It includes facilitating economic recovery from depressed economic circumstances. It ensures that economic, social and environmental considerations are taken into account in initiatives designed to foster community growth and economic development. It involves projects that assist communities to assess strengths, weaknesses, opportunities and potential for new economic activity and to develop and implement community plans. It also involves investments in community infrastructure, coordinated with provincial and municipal governments to maximize benefits. The process involves community-based consultations to ensure federal programs, services and horizontal initiatives serve the needs of western Canadian communities.

Financial Resources – For Program Level ($ thousands)
Total Budgetary Expenditures (Main Estimates) 2012–13 Planned Spending 2012–13 Total Authorities (available for use) 2012–13 Actual Spending (authorities used) 2012–13 Difference
(Planned vs. Actual Spending)
20,832 20,832 43,220 35,377 (14,545)

Note: Total Authorities include spending for the CIIF, which was not reflected in the Planned Spending amount.

 

Human Resources (FTEs) – For Program Level
Planned
2012–13
Actual
2012–13
Difference
2012–13
85 43 42

Note: The number of planned FTEs in the 2012–13 RPP was based on extrapolated historic trends which is at variance with the actual utilization. WD will review and adjust planned FTEs for future RPPs. The 43 actual FTEs in this area is down from the 54 actual FTEs reported in the 2011–12 DPR.

 

Performance Results – For Program Level
Expected Result Performance Indicators Targets Actual Results
Communities have increased economic opportunities and capacity to respond to challenges, as well as the necessary investments in public infrastructure Employment: number of new jobs created 18,500* 140,370 (2012)
Percentage of key informants with the opinion that WD delivery of infrastructure programs resulted in investments that reflect western Canadian infrastructure priorities 50% To be measured in 2013–14 through Infrastructure Canada-led evaluations of Municipal Rural Infrastructure Fund and Building Canada Fund -Communities Component.

*Note: The target for "Employment: Number of new jobs created" reflects a forecast of stable growth of 1.8 percent, which was based upon an average of the previous five years.

 

Community Economic Development Performance Analysis and Lessons Learned

In order to capture the impact of its CED activities, WD tracks job creation and the perceived relevance of its infrastructure programs, as indicators of increased economic opportunities and communities' capacity to respond to challenges. In 2012, Western Canada had a net job gain of 140,370, which was seven and one-half times higher than projected, reflecting the economic strength of the region. The survey of key informants regarding infrastructure programs will be conducted during 2013–14.

In terms of CED lessons learned, WD utilized Microsoft Client Relationship Management (CRM) software to manage the intake of over 2800 Community Infrastructure Improvement Fund (CIIF) on-line applications and to track the progress of each application through the assessment process, as updates were required daily. CRM proved to be an invaluable tool and WD is exploring future applications to other program areas.

Sub-Programs related to Community Economic Development:

Descriptions of the following CED sub-programs can be found on WD's Web site: Sub-program item C 32:

  • Community Planning
  • Community Development
  • Community Economic Adjustment
  • Community Infrastructure
Financial Resources - For Sub-Program Level ($ Thousands)
Sub-Program Planned Spending
2012–13
Actual Spending
2012–13
Difference
2012–13
Community Planning 7,651 6,484 1,167
Community Development 10,241 7,177 3,064
Community Economic Adjustment 97 249 (152 )
Community Infrastructure 2,843 21,467* (18,624)
Total 20,832 35,377 (14,545)

Note: Actual Spending under Community Infrastructure includes spending for the CIIF, which was not reflected in Planned Spending amounts.

Human Resources (FTEs) – For Sub-Program Level
Sub-Program Planned
2012–13
Actual
2012–13
Difference
2012–13
Community Planning Planning for FTEs occurred at the program level for 2012–13 and 2013–14. 6 Not Applicable
Community Development 8
Community Economic Adjustment 1
Community Infrastructure 28
Total 85 43 42

Note: The number of planned FTEs in the 2012–13 RPP was based on extrapolated historic trends which is at variance with the actual utilization. WD will review and adjust planned FTEs for future RPPs. The 43 actual FTEs is the same as the number of FTEs reported in the 2011–12 DPR.
 

Performance Results – For Sub-Program Level
Sub-Program Expected Result Performance Indicators Targets Actual Results
Community Planning Enhanced Community Planning # activities providing planning leadership and expertise 3044 3125
# instances facilitating community involvement 1025 1192
# partnerships developed/maintained 3292 3517
# community planning exercises undertaken by Community Futures organizations 190 330
Community Development Increased viability and diversification of local economies # instances of increased capacity in community organizations 1140 1075
# enhanced community services or facilities 421 669
# people trained 14 804
# instances of increased community stability 445 483
Community Economic Adjustment Successful community adjustment to mitigate economic crises Not applicable for 2012-13*
Community Infrastructure To maximize economic, social, cultural and environmental benefits to western Canadians through investments in public infrastructure in a coordinated manner with provincial and municipal governments. # new and improved local infrastructure elements Not Applicable as the CIIF was not anticipated in the department's 2012–13 RPP 66
# jobs created or maintained No reported results
Total infrastructure funding expended (federal, provincial, municipal, and private - as a proxy for local economic stimulus) $17,018,059

*Note: No reported results for Community Economic Adjustment were anticipated during 2012–13 as this sub-program comprises short-term economic initiatives, implemented on an as needed basis only; the Community Adjustment Fund, which fell within this sub-program, was completed during 2011–12.

Performance Analysis and Lessons Learned from Sub-Programs Related to Community Economic Development

Fiscal Year Results

WD sets targets annually for all performance indicators at the sub-program level in the departmental PMF and tracks progress against targets based primarily upon results G&C projects report during the fiscal year. WD met or exceeded targets for seven of the eight CED-related performance indicators (including Economic Action Plan (EAP)-related projects) for which reported outcomes were anticipated (see Performance Results table above). For one of the indicators (number of people trained in the Community Development sub-program), the actual results achieved greatly exceed the target; this was primarily due to one project, which reported an additional 719 people trained in 2012–13.

An example of a successfully completed project is the construction of a public community aquarium by the Ucluelet Aquarium Society (BC Region, Community Development). In addition, the Westman Entrepreneurial Centre, a knowledge-based business incubator supported by Community Futures Westman, was able to recruit Evolve (a full service multi-disciplined acquisition company) to move to Brandon, Manitoba in September 2012. Evolve provides technology solutions used in the oil and gas sector in southwestern Manitoba, creating 12 new jobs in the region.

For further details regarding the impact of the completed projects listed above, please refer to the WD Success Stories33 on the department's public Web site. Specific examples of Community Adjustment Fund, Recreational Infrastructure Canada Program, and CIIF projects that received WD funding through EAP may be found on the WD Media Centre34 on the department's Web site.

Community Infrastructure Sub-Program

WD delivered four national infrastructure programs in the West: Municipal Rural Infrastructure Fund (MRIF), Canada Strategic Infrastructure Fund, BCF–Communities Component (BCF-CC) and BCF–Major Infrastructure Component. Under MRIF, 566 projects with a federal investment of $266.4 million were supported across Western Canada. Of this, 552 projects were completed as of the March 31, 2013 program deadline, with a federal investment of $264 million. To date, 278 projects have been approved under BCF-CC across the West with a federal investment of $339.4 million. With respect to the BCF-CC Top Up program, all 163 projects supported across the West were completed in 2011–12 with a federal investment of $137.5 million. WD fully closed out the program in 2012–13.

As funding for these programs is provided through Infrastructure Canada's (INFC) appropriation, details on the results may be found in INFC's DPR.

WD was allocated $46.2 million over two fiscal years (2012–13 and 2013–14) to deliver the CIIF in Western Canada. Announced in Budget 2012, the CIIF is a two-year national program that will invest $150 million to rehabilitate and improve existing community infrastructure across Canada. The CIIF was not anticipated in the department's RPP for 2012–13 and required the department to re-align resources to deliver this new initiative.

As of March 31, 2013, WD had approved 740 projects which committed all program funds. The CIIF provided WD with an opportunity to expand its role in supporting tourism initiatives, which was identified as a planning highlight in the RPP for 2012–13. Two examples of tourism-related projects approved in 2012–13 through the CIIF include renovations to Centre 200035, a tourism and trade facility in Grande Prairie, Alberta, and the conversion of the Pemberton, BC train station36 into a community, tourism and transportation hub.

Program: Policy, Advocacy and Coordination

Program Description

The Western Economic Diversification Act37 (1988) empowers the Minister to advance the interests of Western Canada in national economic policy, program and project development and implementation, through the establishment of cooperative relationships with the western provinces and other stakeholders and through the initiation of policy research. Through this program, WD advocates for Western Canada in national policy discussions, resulting in effective strategies, policies and programs to address the economic development needs and aspirations of western Canadians. It also includes leading federal and intergovernmental collaboration to pursue key opportunities for long-term growth and diversification in areas of federal or shared federal-provincial jurisdiction. Finally, it includes undertaking research and analysis required to inform policy and program decisions.

 

Financial Resources – For Program Level ($ thousands)
Total Budgetary Expenditures (Main Estimates) 2012–13 Planned Spending 2012–13 Total Authorities (available for use) 2012–13 Actual Spending (authorities used) 2012–13 Difference
(Planned vs. Actual Spending)
8,190 8,190 8,897 8,539 (349)

Note: Actual Spending is lower than total authorities primarily due to planned spending on transfer payments not materializing.

Human Resources (FTEs) – For Program Level
Planned
2012–13
Actual
2012–13
Difference
2012–13
60 61 (1)

 

Performance Results – For Program Level
Expected Result Performance Indicators Targets Actual Results
Policies and programs that strengthen the western Canadian economy Percentage of key informants with the opinion that WD activities provide policies and programs that support the economic development of Western Canada 90% To be measured in 2013–14
Percentage of WD projects completed this fiscal year that successfully met or exceeded performance targets 85% 84%

Policy, Advocacy, and Coordination Performance Analysis and Lessons Learned

The targets set for the PAC program were materially met, with the indicator related to the percentage of WD projects completed this fiscal year that successfully met or exceeded performance targets missing its target by only one percentage point.

WD continually refines and focuses its PAC program to meet the changing priorities of western Canadians. Through the department's policy framework, emerging issues and opportunities are quickly identified and acted on. For instance, WD worked with Department of Foreign Affairs, Trade and Development Canada to ensure WD's support for western Canadian ports was accurately reflected in the Government of Canada's response to the US Federal Maritime Commission investigation. This investigation examined the extent to which the US Harbor Maintenance Tax, other US policies and other factors may incentivize US-bound container cargo to shift from US seaports to those located in Canada and Mexico.

The Evaluation of the Western Economic Partnership Agreements38 (WEPA) assessed the department's investments in WEPA projects implemented in each of the four provinces in Western Canada. The evaluation covered the term of the most recent WEPAs from 2008 to 2012. The evaluation concluded that the decision making process had some challenges, including the time required for project approvals, the complexity of the project approval process and the lack of dedicated provincial funding in some provinces. The evaluation results contributed to WD's decision to not renew the WEPAs, but to continue to work closely with the provinces and industry to invest in initiatives that support communities, jobs and growth in the West.

Sub-Programs related to Policy, Advocacy and Coordination:

Descriptions of the following PAC sub-programs can be found on WD's Web site: Sub-program item D39:

  • Collaboration and Coordination
  • Research and Analysis
  • Advocacy
Financial Resources – For Sub-Program Level ($ Thousands)
Sub-Program Planned Spending
2012–13
Actual Spending
2012–13
Difference
2012–13
Collaboration and Coordination 3,367 2,751 616
Research and Analysis 2,828 2,142 686
Advocacy 1,995 3,646 (1,651)
Total 8,190 8,539 (349)

 

Human Resources (FTEs) – For Sub-Program Level
Sub-Program Planned
2012–13
Actual
2012–13
Difference
2012–13
Collaboration and Coordination Planning for FTEs occurred at the program level for 2012–13 and 2013–14. 24 Not Applicable
Research and Analysis 11
Advocacy 26
Total 60 61 (1)

 

Performance Results – For Sub-Program Level
Sub-Program Expected Results Performance Indicators Targets Actual Results
Collaboration and Coordination Better-coordinated economic development activities, policies and programs in the West Dollars leveraged for projects funded per fiscal year from all WD programs ($ leveraged per WD $) $2.00 $1.59
$ value of project funding provided under interdepartmental agreements to which WD was a party $12,900,000 $15,161,868
% of key informants with the opinion that WD activities provide better coordinated economic activities, policies and programs in the West 90% To be measured in 2013–14
Research and Analysis Improved understanding of western Canadian economic issues, challenges, opportunities and priorities % of key informants with the opinion that WD activities provide an improved understanding and awareness of western issues, challenges, opportunities and priorities 90% To be measured in 2013–14
Advocacy Decisions by other organizations that improve economic policies and programs in the West % of key informants with the opinion that WD activities provide an improved understanding and awareness of western issues, challenges, opportunities and priorities 90% To be measured in 2013–14
% of key informants with the opinion that WD advocacy work results in federal policies and programs that reflect western Canadian needs 90% To be measured in 2013–14
% of key informants with the opinion that WD advocacy work results in improved awareness of industrial and regional benefits and/or federal procurement opportunities 75% To be measured in 2013–14

Performance Analysis and Lessons Learned from Sub-Programs Related to Policy, Advocacy, and Coordination

Fiscal Year Results

WD sets targets annually for the performance indicators at the sub-program level in the departmental PMF. However, several of these targets (i.e., those requiring a departmental survey) are reported on every five years when a survey is conducted.

WD tracks progress annually against three indicators, one at the program level and two at the sub-program level (percentage of WD projects completed this fiscal year that successfully met or exceeded performance targets; dollars leveraged for projects funded per fiscal year from all WD programs; and dollar value of project funding provided under interdepartmental agreements to which WD was a party), which are meant to reflect the impact of WD's policy work on the G&C projects that the department supports. WD met or almost met targets for two of these three indicators, but fell short of its leverage target of $2.00 per WD dollar approved because of the lower leverage rates for a large research and analysis project ($1.00 leveraged per WD dollar approved) and for the CIIF ($1.45 leveraged per project on average per WD dollars approved). Together, these projects accounted for 60 percent of WD approved funding in 2012–13.

The RPP for 2012–13 identified the following as a planning highlight: "Facilitating connections between western Canadian businesses and multinational aerospace, marine and defence companies that receive federal defence and security procurement contracts with IRB obligations." Pursuant to this planned activity, WD responded to 18 requests for supplier capabilities lists, identifying western Canadian SMEs that could meet the prime contractor requirements in anticipation of a bid; and organized eight supplier development tours and events to introduce prime contractors to western Canadian industry and academia.

One significant industry event hosted by WD was the Western Canada Shipbuilding Summit40. In May 2012, WD strengthened business connections and facilitated networking across the shipbuilding industry by attracting more than 600 industry stakeholders representing over 360 organizations to share information about business opportunities arising from the National Shipbuilding Procurement Strategy.

Program: Internal Services

Program 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. These 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 Services; Material Services; Acquisition Services; and Travel and Other Administrative Services. Internal Services include only those activities and resources that apply across an organization and not those provided specifically to a program.

Financial Resources – For Program Level ($ Thousands)
Total Budgetary Expenditures (Main Estimates) 2012–13 Planned Spending 2012–13 Total Authorities (available for use) 2012–13 Actual Spending (authorities used) 2012–13 Difference
(Planned vs. Actual Spending)
22,007 22,007 24,123 22,231 (224)
Human Resources (FTEs) – For Program Level
Planned
2012–13
Actual
2012–13
Difference
2012–13
121 175 (54)

Note: The number of planned FTEs in the 2012–13 RPP was based on extrapolated historic trends which is at variance with the actual utilization. WD will review and adjust planned FTEs for future RPPs. The actual number of Internal Services FTEs fell from 199 in 2011–12 (as reported in the 2011–12 DPR) to 175 in 2012–13, representing a net decrease of 24 FTEs in this area.

Shrinking the Environmental Footprint of Government
Performance Analysis and Lessons Learned

The Report on Plans and Priorities for 2012–13 identified as a planning highlight the need to introduce a new departmental values and ethics code. To prepare for the new Values and Ethics Code for the Public Sector, which came into effect on April 2, 2012, WD decided to build on the foundation of values and ethics articulated in the Public Sector Code and adapt them to WD needs. Consultations were held across the department to develop a WD-specific Code of Conduct that resonated with staff. The WD Code of Conduct incorporates the provisions of the public sector code and outlines WD values that underpin expected behaviour for every member of the department, regardless of level or role. Adhering to the WD Code of Conduct is now a condition of employment for WD employees.

WD is a participant in the Federal Sustainable Development Strategy (FSDS) and contributes to the Greening Government Operations targets through the Internal Services program. The department contributes to the following target areas of Theme IV (Shrinking the Environmental Footprint–Beginning with Government) of the FSDS: e-waste, printing unit reduction, paper consumption, green meetings and green procurement.

For additional details on WD's Greening Government Operations activities, please see the List of Supplementary Information Tables in Section III.
 

Section III: Supplementary Information

Financial Statement Highlights

The financial highlights presented within this Departmental Performance Report are intended to serve as a general overview of Western Economic Diversification Canada’s (WD) financial position and operations. The unaudited financial statements are prepared in accordance with accrual accounting principles (link to complete financial statements can be found at the end of this section).

Condensed Statement of Operations and Departmental Net Financial Position

Western Economic Diversification Canada
Condensed Statement of Operations and Departmental Net Financial Position (Unaudited)
For the Year Ended March 31, 2013
($ thousands)
  2012–13
Planned
Results*
2012–13
Actual
2011–12
Actual
$ Change (2012–13 Planned vs. Actual) $ Change (2012–13 Actual vs. 2011–12 Actual)
Total expenses 175,118 180,084 194,071 (4,966) (13,987)
Total revenues - 5 13 (5) (8)
Net cost of operations before government funding and transfers 175,118 180,079 194,058 (4,961) (13,979)
Departmental net financial position (7,549) (2,950) (5,373) (4,599) 2,423

*Refer to the financial statements for further details.

Expenses - Where Funds Go ($180.1M): 31.1% Business Development; 33.2% Innovation; 17.2% Community Economic Development; 5.1% Policy, Advocacy and Coordination; 13.4% Internal Services

Total Expenses for WD were $180.1 million in 2012–13, a decrease of $14.0 million (seven percent). This year over year decrease is attributed to the implementation of reductions in appropriations, the transfer of operations to Shared Services Canada and the conclusion of the Canada Economic Action Plan. These reductions were partially offset by the implementation of the Community Infrastructure Improvement Fund.

 

Western Economic Diversification Canada
Condensed Statement of Financial Position (Unaudited)
As at March 31, 2013
($ thousands)
  2012–13 2011–12 $ Change
Total net liabilities 88,911 86,918 1,993
Total net financial assets 85,178 80,346 4,832
Departmental net debt 3,733 6,572 (2,839)
Total non-financial assets 783 1,199 (416)
Departmental net financial position (2,950) (5,373) 2,423

Financial Highlights Graphs

Net Financial Assets ($85.2 M): 99.8% Due from Consolidated Revenue Fund; 0.2% Accounts receivable and advances

Net Financial Assets equaled $85.2 million at the end of 2012–13, an increase of $4.8 million (six percent) over the previous year’s total assets of $80.3 million. This increase is related to the amounts due from the Consolidated Revenue Fund, which will be available to draw upon to pay for the increased accounts payable in 2012–13. The increase in accounts payable was primarily due to the implementation of the CIIF, which was approved in Budget 2012.

Liabilities ($88.9 M): 95.7% Accounts payable and accrued liabilities; 1.8% Vacation pay and compensatory leave; 2.5% Employee future benefits

Total Liabilities were $88.9 million at the end of 2012–13, an increase of $2.0 million (two percent) over the previous year’s total liabilities of $86.9 million. This net increase is a result of an increase in accounts payable for the implementation of the CIIF. This increase was offset by a reduction in employee future benefits.

Financial Statements

The complete WD financial statements can be found on WD's Web site - link 1.41

Supplementary Information Tables

All electronic supplementary information tables listed in the 2012–13 Departmental Performance Report can be found on WD's Web site - link 2.42

Tax Expenditures and Evaluations Report

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 publishes cost estimates and projections for these measures annually in the Tax Expenditures and Evaluations43 publication. The tax measures presented in the Tax Expenditures and Evaluations publication are the sole responsibility of the Minister of Finance.

Section IV: Other Items of Interest

Organizational Contact Information

E-mail Address: info@wd-deo.gc.ca
Mailing Address: Suite 1500, 9700 Jasper Avenue, Edmonton, Alberta T5J 4H7
Telephone: 780-495-4164
Toll Free: 1-888-338-WEST (9378)
Teletypewriter (TTY): 1-877-303-3388
Fax: 780-495-4557

Additional Information

In 2012–13, Western Economic Diversification Canada (WD) continued to work with other federal departments to deliver the Economic Development Initiative (EDI), as part of the federal Roadmap for Canada's Linguistic Duality 2008–13: Acting for the Future. For more information about EDI and WD’s other efforts related to the Official Languages Act, please see: Status Reports on the Implementation of Section 41 of the Official Languages Act.44: footnote

Endnotes

1 ftn Western Canadian Business Service Network Start, grow, expand your business

2 ftn Community Futures organizations are community-based, non-profit organizations that provide SMEs in their communities with loans, technical support, training and information. They are also involved in community economic development projects. For more information, visit www.communityfuturescanada.ca.

3 ftn The Government of Canada’s Policy on Management, Resources and Results Structure (MRRS) changed since the preparation of the 2012–13 Report on Plans and Priorities with updates to the MRRS nomenclature. “Program Activity Architecture” is now “Program Alignment Architecture,” “Program Activity” is “Program” and “Sub-Activity” is “sub-program.”

4 ftn Type is defined as follows: previously committed to—committed to in the first or second fiscal year prior to the subject year of the report; ongoing—committed to at least three fiscal years prior to the subject year of the report; and new—newly committed to in the reporting year of the Report on Plans and Priorities or the Departmental Performance Report.

5 ftn WD – News Release, www.wd-deo.gc.ca/eng/77_14796.asp

6 ftn WD – Media Centre

7 ftn WD – News Release, www.wd-deo.gc.ca/eng/77_14739.asp

8 ftn WD – Media Centre

9 ftn Ibid.

10 ftn Ibid.

11 ftn WD – News Release, www.wd-deo.gc.ca/eng/77_13821.asp

12 ftn Aerospace Industries Association of Canada – News Release, www.aiac.ca/uploadedFiles/07.06.12%20-%20FIAS%20WD%20Funding_FINAL_EN.pdf

13 ftn WD – News Release, www.wd-deo.gc.ca/eng/77_13810.asp

14 ftn WD – News Release, www.wd-deo.gc.ca/eng/77_14471.asp

15 ftn WD – Media Centre

16 ftn Ibid.

17 ftn Ibid.

18 ftn Jobs created or maintained through lending by Community Futures and Women’s Enterprise Initiative organizations.

19 ftn Jobs created or maintained through business services provided by Community Futures organizations and Francophone Economic Development Organizations.

20 ftn WD – Policy, Advocacy and Coordination

21 ftn In order to align with departmental authorities by Program, as presented in Vol. II of the Public Accounts, services provided without charge amounts for employer’s contribution to employee insurance plans, such as the Public Service Health Care Plan and the Public Service Dental Plan provided by the Treasury Board of Canada Secretariat, accommodations provided by Public Works and Government Services Canada, Workers’ compensation provided by Human Resources and Skills Development Canada and legal services provided by the Department of Justice are not included in this figure. This information is presented in Departmental Financial Statements only.

22 ftn Public Accounts of Canada 2013, www.tpsgc-pwgsc.gc.ca/recgen/cpc-pac/index-eng.html

23 ftn Environment Canada, www.ec.gc.ca/dd-sd/default.asp?lang=En&n=C2844D2D-1

24 ftn WD – Audit and Evaluation

25 ftn Ibid.

26 ftn WD – Sub-Program Descriptions (a)

27 ftn WD – Success Stories

28 ftn Survey of Intellectual Property Commercialization in the Higher Education Sector, www.statcan.gc.ca/pub/88-222-x/88-222-x2010000-eng.htm

29 ftn WD – Audit and Evaluation

30 ftn WD – Sub-Program Descriptions (b)

31 ftn WD – WD Success Stories

32 ftn WD – Sub-Program Descriptions (c)

33 ftn WD – WD Success Stories

34 ftn WD – Media Centre

35 ftn WD – News Release, www.wd-deo.gc.ca/eng/77_14301.asp

36 ftn WD – News Release, www.wd-deo.gc.ca/eng/77_14272.asp

37 ftn Western Economic Diversification Act, laws-lois.justice.gc.ca/eng/acts/W-6.8/

38 ftn WD – Evaluation of the Western Economic Partnership Agreements -link2

39 ftn WD – Sub-Program Descriptions (d)

40 ftn Western Canada Shipbuilding Summit, www.wd-deo.gc.ca/eng/13736.asp

41 ftn WD – Departmental Plans and Reports

42 ftn Ibid.

43 ftn Department of Finance – Government of Canada Tax Expenditures, www.fin.gc.ca/purl/taxexp-eng.asp

44 ftn WD and the Official Languages Act, Section 41

 

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