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Name of Transfer Payment Program: Asia-Pacific Gateway and Corridor Transportation Infrastructure Fund

Start date: October 19, 2006

End date: March 31, 2014

Description: The Asia-Pacific Gateway and Corridor Transportation Infrastructure Fund is intended to establish the best transportation network, facilitating global supply chains between Asia and North America. The transportation infrastructure investments address near term capacity problems and build strategically for the future.

Strategic Outcome: An efficient transportation system.

Results Achieved: Announced 2 South Shore Trade Area Projects. Signed 6 contribution agreements. Four new projects entered the construction phase. Five projects were completed.

Comment(s) on Variance(s): Market and economic conditions caused construction costs to be lower than anticipated, thus resulting in lower than expected bids on tenders. In addition, regulatory compliance, delays in property acquisition, design changes and restrictions also contributed to project delays.

Audit completed or planned: In May 2009, Transport Canada undertook a risk and control assessment of Canada’s Economic Action Plan initiatives specific to the department. The Asia-Pacific Gateway and Corridor Transportation Infrastructure Fund was included in this assessment.

Evaluation completed or planned: A horizontal evaluation of the program is planned for 2010-2011.

Name of Transfer Payment Program: Gateways and Border Crossings Fund (GBCF)

Start date: February 7, 2008

End date: March 31, 2014

Description: The Gateways and Border Crossings Fund is a merit-based program that funds transportation infrastructure and other related initiatives to develop and exploit Canada’s strategic gateways, trade corridors and border crossings and to better integrate the national transportation system.

Strategic Outcome: An efficient transportation system.

Results Achieved:

• Six new infrastructure projects were announced under the Gateways and Border Crossings Fund.
  
• Ten Contribution Agreements were signed, with a total value of over $358 million.
  
• The majority of the $2.12 billion fund has been committed:
  
  • Significant projects have been announced for all three gateways, including projects to improve the Core National Highway System, major border crossings and key ports.
    
  • These projects aim to improve the flow of goods and people within Canada and with the rest of the world.
• Through the GBCF and in partnership with provinces and other stakeholders, Transport Canada funded numerous studies and research to analyse the transportation network and identify transportation challenges and opportunities.

Comment(s) on Variance(s): Transport Canada had estimated it would spend a total of $413,633,000 in FY 2009-2010. As the fiscal year progressed, it became clear that such an estimate would not be met due to delays in signing contribution agreements with recipients and in commencement of projects by the recipients. Also, some due diligence activities and regulatory approvals took longer than anticipated for various projects.

The main explanation for this variance is:

The GBCF is a large and complex infrastructure program and projects take time to develop, particularly as strategies advance and change. Changes in circumstances, be they with regard to provincial priorities, construction or other logistical issues often result in approved projects developing at a slower pace than anticipated.

In a number of cases, for projects that had been publicly announced, project proposals had not yet been received from the project proponents and thus contribution agreements were not signed. In several other cases, work by proponents on approved projects had slowed and as a result, funds could not be spent as originally forecast.

Audit completed or planned: In May 2009, Transport Canada undertook a risk and control assessment of Canada’s Economic Action Plan (EAP) initiatives specific to the department. The GBCF was included in this assessment. This Fund was also included in TC’s audit of Selected Departmental EAP Initiatives presented to the Departmental Audit Committee in June 2010.

Evaluation completed or planned: An interim evaluation is planned for 2013-2014.

Name of Transfer Payment Program: Northumberland Strait Crossing subsidy payment under the Northumberland Strait Crossing Act (Statutory)

Start date: May 31, 1997

End date: April 1, 2032

Description: The Northumberland Strait Crossing subsidy payments are made to the bridge operator to honor a constitutional obligation to provide a transportation link between Prince Edward Island and the mainland.

Strategic Outcome: An efficient transportation system that contributes to Canada’s economic growth and trade objectives.

Results Achieved: Federal funding is provided for continuous and efficient year-round transportation of people and goods between Prince Edward Island and the mainland to support an efficient, integrated and accessible transportation system.

Comment(s) on Variance(s):

• As per the Northumberland Strait Crossing Act, payments to Northumberland Strait Crossing shall be $41.9 million, adjusted annually to 1992 for inflation in accordance with the Consumer Price Index.
  
• The Consumer Price Index was higher at the time when the planned spending for 2009-2010 was forecasted than when the actual spending was calculated for that year.
  
• Therefore, given the difference in the Consumer Price Index, the actual spending for 2009-2010 is lower than the planned spending for 2009-2010. However, the Consumer Price Index at the time of the calculation of the 2009-2010 actual spending was not below the 2008-2009 rate. Consequently, the actual spending for 2009-2010 is higher than the actual spending for 2008-2009.

Audit completed or planned: Transport Canada did not conduct an internal audit in this area. TC will determine whether an internal audit will be conducted, based on its risk-based audit planning process.

Evaluation completed or planned: As this is a statutory payment, no evaluation is planned.

Name of Transfer Payment Program: Port Divestiture Fund

Start date: April 18, 1996

End date: March 31, 2012

Description: The Port Divestiture Fund was created to facilitate the divestiture process by providing new owner/operators with the resources to continue port operations for the foreseeable future.

Strategic Outcome: An efficient transportation system.

Results Achieved: Ports successfully transferred to local communities and users, and are more responsive to local needs.

Comment(s) on Variance(s): Port divestitures are subject to negotiation with local entities and there were unexpected delays in reaching agreements on expected divestitures in 2009-2010. This resulted in actual spending being less than planned.

Audit completed or planned: Transport Canada conducted an internal audit on the Port Divestiture Fund in 2009. A copy of the report is available online.

Evaluation completed or planned: An evaluation of the program was completed in 2007-2008. The program will be evaluated again in 2011-2012 as part of the Marine Infrastructure evaluation. Evaluation reports can be found online.

Name of Transfer Payment Program: Contribution program for operating, capital and start-up funding requirement for regional and remote passenger rail services.

Start date: June 1, 2004

End date: March 31, 2011

Description: The Regional and Remote Passenger Rail Services Class Contribution Program supports operating, capital and start-up funding requirements for regional and remote passenger rail services by ensuring the continuation of non-via remote and regional passenger rail services.

Strategic Outcome: An efficient transportation system.

Results Achieved: Continuation of safe, viable, reliable and sustainable regional and remote passenger rail services.

Comment(s) on Variance(s): The planned spending for fiscal year 2009-2010 did not originally include provisions for the $4.5 million allocated through the EAP. With that allocation, the total authorities for fiscal year 2009-2010 amount to $20.9 million. The variance of $3.6 million accounts for spent EAP funding. The missing $0.9 million is due to the carrying out of less environmental remediation work than expected by one of the recipients under the program.

Audit completed or planned: In May 2009, Transport Canada undertook a risk and control assessment of Canada’s Economic Action Plan (EAP) initiatives specific to the department. The Regional and Remote Passenger Rail Services Class Contribution Program was included in this assessment. As well, this contribution program was part of TC’s Audit of Selected Departmental EAP Initiatives presented to the Departmental Audit Committee in June 2010.

Evaluation completed or planned: An evaluation of the program was completed in 2010-2011. Evaluation reports can be found online.

Name of Transfer Payment Program: Grant to the Province of British Columbia for ferry and coastal freight and passenger services.

Start date: April 18, 1977

End date: Ongoing

Description: The Grant provides financial assistance to the Province of British Columbia to provide ferry services in the waters of the Province as part of a federal obligation to provide transportation links to the national transportation system from various regions and isolated areas of British Columbia.

Strategic Outcome: An efficient transportation system.

Results Achieved: Transportation links to the national surface transportation system from various regions and isolated areas of British Columbia.

Comment(s) on Variance(s): Variance is due to a clause that allows for indexing based on the Consumer Price Index for Vancouver, B.C.

Audit completed or planned: Transport Canada did not conduct an internal audit of this grant in 2009-2010. The department will determine whether an internal audit will be conducted, based on its risk-based audit planning process.

Evaluation completed or planned: An evaluation of the program was completed in 2005. The next evaluation is planned for 2010-2011. Evaluation reports can be found online.

Name of Transfer Payment Program: Contribution for ferry and coastal passenger and freight services.

Start date: 1941

End date: March 31, 2011

Description: The Ferry Services Contribution Program provides financial assistance to maintain inter-provincial ferry transportation in Atlantic Canada and Eastern Quebec, more specifically, for: the service across the Northumberland Strait, between Wood Islands, Prince Edwards Island, and Caribou, Nova Scotia, operated by Northumberland Ferries Ltd.; the service between Cap-aux-Meules, Iles de la Madeleine, Quebec, and Souris, Prince Edward Island, operated by CTMA Traversier Ltée; and the service between Saint John, New Brunswick, and Digby, Nova Scotia, operated by Bay Ferries Ltd.

Strategic Outcome: An efficient transportation system.

Results Achieved: Commercial viability of ferry services that effectively meet demand and rates that reflect market conditions;

Access to mainland transportation network; and

Safe, efficient and reliable ferry services between Cap-aux-Meules, Iles-de-la-Madeleine and Souris, Prince Edward Island, and Wood Islands, Prince Edward Island and Caribou, Nova Scotia, that contribute to local and regional economic development.

Comment(s) on Variance(s): Program contingencies were not utilized due to factors such as stable fuel costs and better than expected revenue performance.

Audit completed or planned: Internal audits of the contribution for ferry and coastal passenger and freight services (CTMA Traversier Ltée and Northumberland Ferries Ltd.) were completed in 2004. Copies of the audit reports can be found online.

Evaluation completed or planned: An evaluation of the program was completed in 2009-2010. Evaluation reports can be found online.

Name of Transfer Payment Program: Grade Crossing Improvement and Closure Programs (approved under Railway Safety Act)

Start date: January 1, 1989

End date: March 31, 2011

Description: Payments made to railway companies and municipalities to improve the safety at public road/railway grade crossings.

Strategic Outcome: A safe transportation system.

Results Achieved: Safety improvements at grade crossings that result in accident and incident reductions.

Comment(s) on Variance(s): There are two explanations to this variance: 1) An additional $4 million was provided to the program in Budget 2009 under the Canada’s Economic Action Plan for projects to be completed in fiscal year 2010-2011; 2) The variance in spending of $2.6 million in 2009-2010 was due to a higher than expected number of projects completed as well as some carry-overs from the previous year.

Audit completed or planned: In May 2009, Transport Canada undertook a risk and control assessment of Canada’s Economic Action Plan initiatives specific to the department. The Grade Crossing Improvement and Closure Program was included in this assessment.

Evaluation completed or planned: An evaluation of the Grade Crossing Closure Program was completed in 2008-2009. An evaluation of the Grade Crossing Improvement Program was completed in 2009-2010. Evaluation reports can be found online.

Name of Transfer Payment Program: Airports Capital Assistance Program

Start date: April 1, 1995

End date: March 31, 2010

Description: Airports Capital Assistance Program (ACAP) assists eligible applicants in financing capital projects related to safety, asset protection and operating cost reduction.

Strategic Outcome: A safe transportation system.

Results Achieved: Maintained or increased safety, contribution to asset protection, reduction in operating cost and increased use of environmentally sustainable practices at airports, where possible.

Comment(s) on Variance(s): No risk was taken in managing the last year of the 5-year program ending March 2010 and low bids were received for some projects.

Audit completed or planned: Transport Canada conducted an internal audit of ACAP in 2007. A copy of the report is available online.

Evaluation completed or planned: An evaluation of the program was completed in 2009-2010. Evaluation reports can be found online.

Name of Transfer Payment Program: Airport Policing Contribution Program

Start date: May 29, 2008

End date: March 31, 2013

Description: The Program was established in 2002 under the responsibility of the Canadian Air Transport Security Authority (CATSA). In 2007, a decision was made to transfer the program to Transport Canada. The program was created to assist eligible, designated airports in financing the heightened cost of security-related policing in accordance with Transport Canada’s regulated security measures. As a result of Budget 2009, effective January 1, 2010, the policing subsidy for Canada’s eight largest airports was terminated. Contributions to Class II and Class Other airports will continue. Security at airports has not been compromised by the measure, as Transport Canada’s regulations still require Canada’s eight largest airports to provide protective policing and security arrangements.

Strategic Outcome: A secure transportation system.

Results Achieved: Increased security to domestic and international airport passengers and non-passengers;
Increased public confidence in the security of the aviation system; and
Consistent police response.

Comment(s) on Variance(s): Variance between 2009-2010 Planned Spending and 2009-2010 Total Authorities in the amount of $4.6 million is due to a reduction of $4.58 million for 2009-2010 announced in Budget 2009, for Class I airports only.

Audit completed or planned: Transport Canada did not conduct an internal audit of this contribution program in 2009-2010. TC will determine whether an internal audit will be conducted, based on its risk-based audit planning process.

Evaluation completed or planned: An evaluation of the program is planned for 2012-2013.

Name of Transfer Payment Program: Contribution to nav Canada to support security for the 2010 Winter Olympic games

Start date: June 23, 2008

End date: June 30, 2010

Description: nav Canada Olympic Security Contribution Program provides financial assistance to nav Canada for systems and services to ensure the safe movement of security aircraft in the Sea-to-Sky corridor and to ensure aviation domain awareness and control of restricted airspace during the 2010 Winter Olympics.

Strategic Outcome: A secure transportation system.

Results Achieved: Enhanced domain awareness and control of aviation control rings around venues;

Increased capacity for aviation traffic in the Sea-to-Sky corridor allowing for increased security aircraft, first responders, essential services and commercial aviation traffic in the corridor; and

Air navigation capacity for security services (Aviation Security Operations Coordination Centre (ASOCC) and Department of National Defence).

Comment(s) on Variance(s): Some services provided were determined as not required resulting in lower labour costs.

Audit completed or planned: Transport Canada did not conduct an internal audit of this contribution program in 2009-2010. TC will determine whether an internal audit will be conducted, based on its risk-based audit planning process.

Evaluation completed or planned: An evaluation of the program is planned for 2010-2011 as part of the horizontal evaluation of Security and Public Safety at the Vancouver 2010 Olympic and Paralympics Winter Games led by the RCMP.

Name of Transfer Payment Program: Marine Security Contribution Program (voted)

Start date: December 1, 2004

End date: November 30, 2009

Description: Financial assistance to aid in the rapid implementation of security measures and to help offset the costs of ports, marine facilities and domestic ferries that would not have the financial capacity to cover security costs without significantly affecting operating costs. (The description of the Marine Security Contribution Program has been modified to reflect the additional authorities that were provided from Treasury Board with regards to eligible recipients.)

Strategic Outcome: A secure transportation system.

Results Achieved: Fiscal Year 2009-2010 was the Marine Security Contribution Program’s fifth and final year. Out of the $12.5 million allocated for planned spending, the program disbursed $11.8 million (95%) in eligible funds to 297 recipients for security enhancements such as:

• Surveillance equipment
  
• Dockside and perimeter security
  
• Command, control and communications equipment, and
  
• Security training

Over the Marine Security Contribution Program’s five years, funding to over 250 recipients, for more than 1,100 projects, contributed to the:

Enhanced ability of marine ports, marine facilities and domestic ferries to address security gaps;

Increased capacity of facility owners and operators to proactively address evolving marine security requirements;

Compliance of eligible ports, marine facilities and domestic ferries with the requirements of the Marine Transportation Security Regulations (MTSR), the International Ships and Port Facility Security (ISPS) Code and the Domestic Ferries Security Regulations (a performance target of 80% of regulated facilities meeting/exceeding the minimum requirements of the Marine Transportation Security Regulations by 2012 was established).

In addition, the Marine Security Program essentially met its target performance to deliver 75% of program contribution funding by 2010, disbursing $81.3 million in funds to recipients. (It should be noted that in 2008-2009 and 2009-2010, a total of $5 million was removed from the Program’s overall available funding to meet the department’s Strategic Review obligations.)

Comment(s) on Variance(s): The variance between planned and actual spending is due to the difference between projected costs and eligible costs submitted by recipients.

Audit completed or planned: Transport Canada conducted an internal audit of this contribution program in 2009. The audit report was recommended by the Departmental Audit Committee and approved by the Deputy Minister on May 10, 2010. Posting of the report on the Internet is pending.

Evaluation completed or planned: An evaluation of the program was completed in 2006-2007 as part of a larger evaluation of Marine Security initiatives at Transport Canada. Evaluation reports can be found online.

Name of Transfer Payment Program: Contributions to provinces toward highway improvements to enhance overall efficiency and promote safety while encouraging industrial development and tourism from a regional economic perspective: Outaouais Road Development Agreement

Start date: January 17, 1972

End date: Agreement in Perpetuity

Description: To improve the highway system in the Outaouais region, as per a 50/50 cost sharing agreement concluded on January 7, 1972, between the National Capital Commission (NCC) and the Ministère des Transports du Québec (MTQ) (subsequently amended September 15, 1972 and again December 4, 1978). Transport Canada has been responsible for administering the Agreement since 1996, since Cabinet authorized the transfer of the Agreement from the NCC to Transport Canada, without providing resources. Over the last 32 years, the federal government has contributed $205 million to the Outaouais Roads Agreement, of which $30 million was spent since the administration of the Agreement was transferred to Transport Canada in 1996.

Strategic Outcome: An efficient transportation system.

Results Achieved: An improved and efficient Outaouais transportation system by reducing congestion and improving safety, while encouraging regional, industrial development and tourism.

Comment(s) on Variance(s): The actual spending surpassed the planned spending because there was an additional $4.1 million to be re-profiled from the previous year, and as well an amount of $2.3 million from a Treasury Board submission. The environmental assessment (EA) for phase 2 of the Highway 5 project was scheduled to be completed in 2009-2010, however, delays occurred in the completion of the EA due to extensive environmental analysis required by the crown corporation owner of adjacent federal parklands. Additional analysis is needed to properly assess the impacts of the project on these parklands, which are ecologically sensitive. The project is now expected to begin in early fall of 2010.

Audit completed or planned: Transport Canada did not conduct an internal audit in this area. TC will determine whether an internal audit will be conducted, based on its risk-based audit planning process.

Evaluation completed or planned: An evaluation of the program was completed in 2009-2010. The next evaluation is planned for 2012-2013. Evaluation reports can be found online.