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Minister’s Message

As Minister responsible for Western Economic Diversification Canada (WD), I am pleased to present the Departmental Performance Report for the year ending March 31, 2010.

WD works to support the long-term development and diversification of the western economy, playing a vital role in helping build a stronger West and a stronger Canada.  The department achieves its mandate by collaborating with other orders of government and stakeholders to identify projects that support the department's strategic outcomes and priorities.

By investing in projects and activities that encourage innovation and entrepreneurship, strengthen community economic development, and ensure western Canadians have access to the essential infrastructure they need, WD is helping the Government of Canada deliver on its priorities. 

Over the past year, as Canada and the world have faced an economic downturn, WD has also been instrumental in helping deliver Canada’s Economic Action Plan (EAP) in Western Canada.  Specifically, WD has been responsible for delivering the Community Adjustment Fund and Recreational Infrastructure Canada program in the West.  These programs delivered targeted and timely economic stimulus that helps create and maintain jobs, improve the health and quality of life of our communities, and build the foundation for Canada’s future growth and prosperity.

As the world begins to see modest steps towards economic growth and recovery, WD will work diligently to deliver the second year of EAP in Western Canada and continue its work to diversify the western economy and build a stronger West for a stronger Canada.

 

 

The Honourable Jim Prentice, P.C., Q.C., M.P

 

 

Minister of State’s Message

As Minister of State for Western Economic Diversification (WD), I am pleased to present the Departmental Performance Report for the year ending March 31, 2010.

WD's mandate is 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 implementation.  In order to meet these goals, the department focused its work on three, interconnected strategic outcomes:

• economically viable communities in Western Canada with a high quality of life;
• a competitive and expanded business sector in Western Canada and a strengthened western Canadian innovation system; and
• policies and programs that support the development of Western Canada.

Western innovators and entrepreneurs are a vital source of economic growth in the West, accounting for nearly half of all existing jobs in the region.   In 2009-2010, WD approved funding of $43.7M for 33 projects that support innovation.  These projects will help strengthen our knowledge-based economy by improving infrastructure at our universities and research centres, developing technology skills, and supporting research and development.  WD also approved funding of $61.8M for 141 projects that help stimulate international trade and investment, enhance business productivity and competitiveness, foster industry collaboration, and improve access to services for western entrepreneurs.   WD is also committed to advocating on behalf of western Canada, including the development and application of the federal procurement and Industrial and Regional Benefits (IRB) policy. WD is also a business facilitator, partnering with, and promoting western Canadian firms and organizations to Prime Contractors that have IRB obligations.

In addition, WD played a major role in Canada’s Economic Action Plan (EAP) consistent with its reputation for delivering timely and effective programming on behalf of the federal government.  WD was responsible for the delivery of the Recreational Infrastructure Canada (RInC) program, the Community Adjustment Fund (CAF), and assisted Infrastructure Canada in delivering the Building Canada Fund top-up funding that was announced in Budget 2009. As of March 31, 2010, nearly 100 per cent of the total combined EAP federal funding allocation for CAF and RInC of approximately $440M had been committed towards 1,004 projects across the West. These projects are helping western Canadian communities and industries most affected by the downturn get back on their feet.

As we navigate the second and final year of EAP, WD will continue its work delivering CAF and RInC for western communities. However WD's work won't stop there - we will continue to focus on growing a competitive western economy that responds to the needs of industry, both locally and abroad to ensure that Western Canada is stronger than ever.

 

 

The Honourable Lynne Yelich, P.C., M.P

 

 

Section I: Departmental Overview

Raison d’être and Responsibilities

As the federal economic development department for Western Canada, WD is responsible for developing and supporting economic policies, programs and activities that assist Western Canada in responding to the economic challenges and opportunities it faces and promoting economic growth, development and diversification.  The department’s three strategic outcomes - Entrepreneurship and Innovation, Community Economic Development, and Policy, Advocacy and Coordination - establish the framework of objectives, priorities, activities, and results pursued by the department to implement its mandate.

The western Canadian economy is an important part of the Canadian economy as a whole.  The four western provinces have a combined Gross Domestic Product (GDP) equal to or slightly larger than that of Ontario.  About one third of Canadians live in the West.  Economic activity and trade flows in the West are closely linked to the United States (US) - which accouts for over 60 per cent of exports of western provincial output - and increasingly to the large and growing economies of the Asia-Pacific region. Western Canadian issues, economic performance, and economic development opportunities are an essential part of national economic and industrial policy and strategy.

Economic growth and prosperity in Western Canada have been largely resource-driven, benefitting from prolonged periods of high demand and high commodity prices.  While the West’s natural resources are expected to provide a strong foundation for future economic growth, the resource-driven growth has masked a number of fundamental challenges facing Western Canada’s long-term economic prospects.  The strong economic performance of many fast-growing economies such as China, Korea, India, and Brazil, which combine low-cost production with new technology and business innovations, are eroding  the competitive position of many western Canadian firms.  Low levels of new business investment in Western Canada in research and development (R&D), new technologies and equipment outside of the major resource sectors compared to many of our closest competitors have also resulted in declining productivity and competitiveness in both domestic and international markets.

To respond to these challenges WD will build on the West’s existing advantages and strengths and help create new strengths by supporting the development of new and emerging sectors of our economy.

Western Canada’s natural resources have supported the creation of industry clusters in sectors such as mining, forestry, oil and gas, and agricultural production, which anchor economic growth in the West and have a strong presence in the global marketplace.  In order to maintain the competitive position of western Canadian businesses and increase the value they create in Western Canada, WD invests in projects that help businesses increase their productivity and competitiveness through the development, adoption and commercialization of new technologies and business processes. The department also seeks to help businesses increase the economic output of  these sectors through higher value-added production, and gain access to highly competitive global markets through greater awareness and exposure to supply chain management and lean manufacturing processes.

WD also supports and investing in the creation of new economic strengths across the West.  Since WD was created in 1987, Western Canada has become home to major research centres and industries that either did not exist or were very different in scale and nature.  For example, the large and leading-edge Information and Communications Technologies (ICT) sector in Western Canada has experienced rapid growth over the past 20 years and is stimulating the creation of new technologies and industry clusters in areas such as new media and digital communications.  The West has witnessed the advent or increased sophistication of many other leading edge technologies with commercial and business applications such as carbon capture and environmental management technology, composite materials for aerospace and transportation sectors, biotechnology and medical devices, and light source technology.  These innovations provide the foundation for future economic growth and diversification, and help ensure that the West’s world-class scientific and R&D capacity lead to world-class business opportunities for Western Canada.  In some cases these opportunities arise from the creation and commercialization of new technologies and processes.  In others, the opportunities are the result of identifying new markets for western Canadian businesses.

WD partners with other organizations in pursuit of its strategic outcomes. WD’s partners include: other orders of government, academic and research institutes, industry associations, not-for-profit organizations, as well as members of the Western Canada Business Service Network (WCBSN).  The Western Economic Partnership Agreements (WEPA) enable WD and the western provinces to collaborate to identify regional diversification opportunities and make strategic investments that help strengthen the long-term viability of local and regional economies.

The 2009-2010 Departmental Performance Report (DPR) provides an overview of WD’s performance and results over the year, based upon the plans and priorities identified in WD’s 2009-2010 Report on Plans and Priorities (RPP) tabled in Parliament on March 26, 2009.  It also highlights a number of activities undertaken by the department, and projects supported by WD’s grants and contributions (G&C) program budget, to demonstrate how the department’s activities have benefited western Canadians.

As reflected in its DPR, WD’s investments helped ensure that western entrepreneurs have the tools they need to remain competitive in a global economy, that western innovators and researchers have the facilities and expertise to bring new innovations to market, and that western communities have a diversified economic base. Policy development activities identified key trends and ensured that programs and investments meet the department’s mandate, fit within the overall federal agenda, and reflect the priorities of western communities.

Consistent with its role as a delivery agent for federal priorities, WD also played a key role in 2009-2010 in responding to the impacts of the global economic downturn by helping stimulate economic growth and creating or maintaining jobs.  By supporting opportunities for economic growth, investing in infrastructure and delivering short-term stimulus under Canada’s Economic Action Plan (EAP), the department has ensured the long-term economic vitality of western communities.

Strategic Outcomes and Program Activity Architecture

The Program Activity Architecture (PAA) below represents WD’s inventory of program activities and program sub-activities for 2009-2010, and the strategic outcomes towards which they contributed.  The PAA is supported by a performance measurement framework that enables WD to track program-related performance in order to inform design, delivery, and resource allocation decisions and to better achieve results.

Strategic Outcomes	Program Activities	Program Sub-Activities
Entrepreneurship and Innovation	Business Development and Entrepreneurship	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 Economic Planning, Development, and Adjustment	Community Planning
		Community Development
		Community Economic Adjustment
	Infrastructure	Green Municipal Infrastructure
		Local Transportation Infrastructure
		Cultural, Recreational, Tourism, Telecommunications, and Affordable Housing Infrastructure
Policy, Advocacy and Coordination	Collaboration and Coordination
	Advocacy
	Research and Analysis
	Internal Services (supports all strategic outcomes)	Governance and Management Support
		Resource Management Services
		Asset Management Services

Summary of Performance

WD measures its annual contribution towards the achievement of its three strategic outcomes.  Despite the impacts of the economic downturn, WD successfully met or exceeded the majority of its performance targets in 2009-2010.  The extraordinary events of 2009-2010 produced important lessons learned for consideration in the development of the department’s 2010-2011 RPP.

In a year of significant economic challenges for the West, WD successfully mobilized new resources and adapted its existing programs to respond to the economic needs of western Canadians.   At the heart of WD’s response was the rapid delivery of the EAP, which provided new employment opportunities and economic stimulus to counter the impacts of the economic downturn. 

While delivering on the federal government’s EAP was a top priority in 2009-2010, the department continued to deliver its ongoing programs in support of the diversification and development of the western Canadian economy.  These included:

• Capitalizing on the long-range economic opportunities presented by the 2010 Winter Olympic and Paralympic Games in Vancouver, British Columbia, through the support of initiatives such as the 2010 Partnership Investment Program and Place de la Francophonie;
• Supporting projects like Saskatchewan Indian Institute of Technologies' Aircraft Maintenance Engineering training facility  that attracted new investment and growth technologies to the West; and
• Increasing our activities to help Canadian firms access new procurement opportunities.

WD’s performance during 2009-2010 is summarized in the following tables:

• Total financial and human resources; and
• Performance by strategic outcome.

Departmental performance against its targets is explained in greater detail, both by strategic outcome at the program activity level, in Section II of this report. The online version of the DPR includes hyperlinks to WD’s web site, where more details of the results of WD-funded projects are provided.

2009-2010 Financial Resources ($ thousands)

Planned Spending	Total Authorities	Actual Spending
$242,521	$477,110	$421,303

2009-2010 Human Resources (FTEs)

Planned	Actual	Difference
401	468	-67

WD’s total authorities were nearly double its planned spending as a result of new funding received through Supplementary Estimates and the Budget Implementation Act mainly to deliver two EAP programs, $139.2M for the Community Adjustment Fund (CAF, excluding $13.5M transferred to 2010-2011) and $64.2M for the Recreational Infrastructure Canada (RInC)  program.[1]  Actual spending was lower than total authorities, primarily due to the transfer of contractual commitments to future years including: RInC, Mountain Pine Beetle (MPB) Initiatives, Alberta and Saskatchewan Centenaries (ASC) Initiative and International Vaccine Centre's (InterVac) Biosafety Level III Containment Facility in Saskatoon.[2]

The actual number of full-time equivalent (FTE) positions was greater than planned due to increases in staff required to deliver EAP initiatives.

Performance Summary Tables

Macro-level economic indicators, as noted in the table below, are monitored by the department to provide an economic context for planning and priority setting.  The targets for 2009-2010 outlined below were based on performance trends and recent economic forecasts.

Strategic Outcome 1: The western Canadian economy is competitive, expanded and diversified. (Entrepreneurship & Innovation)

Performance Indicators	Targets	2009-2010 Performance
Real GDP growth	3.2% (Stable growth rate)	-3.7% (2009 Decrease based upon preliminary provincial data)
Annual International Trade: value of exports excluding primary production sectors	$42.922B (Increase)	$34.965B (2009 - Decrease)
Research & Development (R&D) intensity: Gross Domestic Expenditures on R&D (GERD) as % of GDP	1.3% (Stable)	1.2% (2007 - Stable; most recent data available)

($ thousands)

Program Activity	2008-2009 Actual Spending	2009-2010				Alignment to Government of Canada Outcomes
		Main Estimates	Planned Spending	Total Authorities	Actual Spending
Business Development and Entrepreneurship	62,275	48,587	48,849	52,420	46,941	Strong Economic Growth
Innovation	77,466	77,001	77,264	80,598	86,869	An Innovative and Knowledge-based Economy
Total	139,741	125,588	126,113	133,018	133,810

 

Strategic Outcome 2: Communities in Western Canada are economically viable. (Community Economic Development)

Performance Indicators	Targets	2009-2010 Performance
Disposable income per capita	$31,082 (Increase)	$31,178 (2008 - Increase; most recent data available)
Labour productivity growth - real GDP per hour worked	1.2% (Stable growth rate)	2.2% (2009 - Increase in rate of growth; based upon preliminary GDP data)

($ thousands)

Program Activity	2008-2009 Actual Spending	2009-2010				Alignment to Government of Canada Outcomes
		Main Estimates	Planned Spending	Total Authorities	Actual Spending
Community Economic Planning, Development and Adjustment	71,234	81,093	81,280	94,161	58,540	Strong Economic Growth
Infrastructure	19,254	7,566	7,566	10,719	8,178	Strong Economic Growth
Total	90,488	88,659	88,846	104,880	66,718

Growth in Western Canada’s labour productivity over 2009 was due to a greater proportional decrease in hours worked, compared to the contraction in the economy.

Community Economic Planning, Development and Adjustment - The difference between total authorities and actual spending is primarily due to the transfer of the contractual commitment for the ASC Initiative (Royal Alberta Museum) of $25.2M to future years and expenditures incurred against other program activities, such as Internal Services.

Infrastructure - Planned and actual spending does not include G&C resources administered by WD on behalf of Infrastructure Canada (Municipal Rural Infrastructure Fund (MRIF) and Canada Strategic Infrastructure Fund (CSIF)) through Other Government Department (OGD) suspense account, as this amount (approximately $133.4M in actual spending) is reported by Infrastructure Canada. 

Strategic Outcome 3: Policies and Programs that strengthen the western Canadian economy.
(Policy, Advocacy & Coordination)

Performance Indicators	Targets	2009-2010 Performance
Percentage of key informants with the opinion that WD activities provide policies and programs that support the economic development of Western Canada.	55%	94% (with respect to policies) 93% (with respect to programs)(2008-2009)
$’s of project funding ($’s WD project funding plus $’s leveraged)	$350.040M	$1.56B (Based upon total project costs of all approved projects in 2009-2010)
% of projects completed this fiscal year that successfully met or exceeded performance targets	85%	91%

($ thousands)

Program Activity	2008-2009 Actual Spending	2009-2010				Alignment to Government of Canada Outcomes
		Main Estimates	Planned Spending	Total Authorities	Actual Spending
Collaboration and Coordination	4,945	2,888	2,888	3,292	3,467	Strong Economic Growth
Advocacy	3,602	3,246	3,246	3,796	3,344	Strong Economic Growth
Research and Analysis	3,397	2,629	2,666	2,851	1,835	Strong Economic Growth
Total	11,944	8,763	8,800	9,939	8,646

Canada's Economic Action Plan ($ thousands)

Program Activity	2008-2009 Actual Spending					Alignment to Government of Canada Outcomes
		2009-2010
		Main Estimates	Planned Spending	Total Authorities	Actual Spending
EAP	-	-	-	207,400	186,314	Strong Economic Growth
Total	-	-	-	207,400	186,314

Funding for the EAP initiatives was announced in Budget 2009, and received through Supplementary Estimates and the Budget Implementations Act.

Internal Services ($ thousands)

Program Activity	2008-09 Actual Spending					Alignment to Government of Canada Outcomes
		2009-2010
		Main Estimates	Planned Spending	Total Authorities	Actual Spending
Internal Services	-	18,762	18,762	21,873	25,815
Total	-	18,762	18,762	21,873	25,815

Commencing in the 2009-2010 Estimates cycle, the resources for this program activity are displayed separately, rather than being distributed among the remaining program activities, as was the case in the previous Main Estimates. This has impacted the comparability of financial and human resources information by program activity between fiscal years.

Contribution of Priorities to Strategic Outcomes

In the 2009-2010 RPP, WD identified four operational priorities and three management priorities.  The operational priorities are areas of the department’s programs and services identified as top priorities for action, while management priorities focus on enhancements to internal management, consistent with the objectives of the Management Accountability Framework (MAF) established by the Treasury Board of Canada.

Operational Priorities

Operational Priorities	Type[3]	Status[4]	Links to Strategic Outcomes and Program Activities
Technology Commercialization	Ongoing	Met all	Entrepreneurship & Innovation (PA - Innovation) Policy, Advocacy and Coordination Contribution of priority to strategic outcome: Investments in 2009-2010 will help to strengthen the western Canadian innovation system.
Invested $25.6M in 17 technology commercialization and adoption projects which are expected to result in 74 technology demonstrations, 43 technologies adopted, nine licences executed, 180 technologies to market, nine spin-off companies formed, 23 patents filed/ issued, $16.5M venture capital invested, and 60 prototypes developed; Developed four sector profiles to assist in a review of WD’s approach to technology commercialization.
Trade and Investment	Ongoing	Met all	Entrepreneurship & Innovation (PA - Business Development and Entrepreneurship) Policy, Advocacy and Coordination Contribution of priority to strategic outcome: Investments in 2009-2010 will support a competitive and expanded business sector in Western Canada.
Provided funding of $416 thousand towards 33 international business development projects through the North American Platform Program (NAPP) to strengthen trade and investment linkages with US and Mexico partnership; Invested $12.0M in 19 market and trade development projects which are expected to result in 23 activities that promote participation in major international events, 80 industry associations/ partnerships, 1,096 companies participating in export and market development initiatives, and 135 export-ready companies; Invested $1.59M in two projects which are expected to result in $7.7M in direct foreign investment; Supported western firms to engage in Canada’s Industrial Regional Benefits (IRBs) as well as access international procurement opportunities by western Canadian businesses by organizing two pan-western supplier development missions and by working with the Western Aerospace Alliance to promote western Canadian capability at the International Paris Air Show; Worked with partners to pursue value-added economic opportunities associated with the Asia-Pacific Gateway & Corridor and the Mid-Continent Trade Corridor, through the continued support of organizations such as the Asia Pacific Foundation of Canada and CentrePort Canada Inc. ($1.6M investment); Supported western Canadian businesses to create new trade development and investment opportunities related to the Vancouver/Whistler 2010 Winter Olympic and Paralympic Games through the 2010 Partnership Investment Program.
Business Productivity and Competitiveness	Previously committed to	Mostly met	Entrepreneurship & Innovation (PA - Business Development and Entrepreneurship) Policy, Advocacy and Coordination Contribution of priority to strategic outcome: Investments in 2009-2010 will support a competitive and expanded business sector in Western Canada.
Continued to facilitate/enable access to risk capital and business services to small- and medium-sized enterprises (SMEs) through the WCBSN, whose members increased lending by $7.6M.  In response to this increase in demand, WD provided an additional $3.5M to Community Futures (CF) investment pools. An evaluation of the Loan and Investment (LI) Program estimated that for every dollar in cost to WD, the program generated $28 in direct and indirect financing. Invested $7.5M in nine projects to improve business productivity, which are expected to result in an increase in sales of $5.6M, 1119 jobs created or maintained, 658 businesses created/ maintained/ expanded, and 81.6% client satisfaction.
Rural Diversification	Previously committed to	Mostly met	Entrepreneurship & Innovation (PA - Business Development and Entrepreneurship) Community Economic Development  (PA - Community Economic Planning, Development, and Adjustment) Contribution of priority to strategic outcome: Investments in 2009-2010 will support the development and diversification of the rural economy across the West, which contributes to all of WD’s strategic outcomes.
Supported CF and other rural-based economic development organizations to focus their efforts to diversify rural communities through projects designed partially to enhance productivity such as the Rural Economic Diversification Initiative and MLTC Resource Development, which tested new technologies, processes and equipment to promote greater efficiency; and Collaborated with other federal departments and agencies in renewal of CF Program in support of rural diversification.

Management Priorities

Management Priorities	Type	Status	Links to Strategic Outcome(s)
Public Service Renewal	Previously committed to	Met all	Public service renewal supports all strategic outcomes.
Integrated human resources(HR) planning into WD business planning process; Advanced employee engagement, career development, talent management, and succession planning; Strategic recruitment and renewal initiatives resulted in ten new indeterminate professional appointments, including nine employment equity recruits (target was eight) and 11 new professional appointments through the student bridging mechanism (compared to eight in 2008-2009); and  Delivered CAF/ RInC HR strategy that included creating 71 new positions, 84 staff appointments, 46 developmental opportunities, 1,418 hours of training, and 11 term offers to post-secondary graduates, seven of whom are employment equity members.
Performance Measurement	Previously committed to	Mostly met	Performance measurement supports all strategic outcomes. Area for improvement: Now that processes are in place to track progress against targets, need to do more work to ensure that performance data better informs decision-making.
MAF VII Area of Management 2 (Utility of the Corporate Performance Framework) - Strong rating; MAF VII Area of Management 7 (Quality of Performance Reporting) - Acceptable rating; Performance Measurement Framework (PMF) developed for 2010-2011, includes clearer performance indicators and targets at each level of the PAA; Enhanced Project Gateway, the departmental project management system, to better track performance, including completion of the Bring Forward Tool to identify priority action items; Developed suite of performance measurement reports to improve the consistency of performance data available through Project Gateway; Prepared nine case studies to supplement departmental performance data and to better capture and report on the long-term impacts of project investments; Developed common performance measures with all Regional Development Agencies for the delivery of EAP; Produced quarterly EAP performance reports to inform Canadians.
Integrated Risk Management	Previously committed to	Met all	Integrated risk management supports all strategic outcomes.
MAF VII Area of Management 9 (Effectiveness of Corporate Risk Management) - Acceptable rating; Completed risk management framework for the delivery of EAP in Western Canada based on the corporate risk profile; Integrated risk management training at all levels of the organization; Developed risk-based tools to ensure compliance with the requirements of the new Treasury Board policies; Developed new tools to assist in risk-based assessment and decision making; Integrated corporate risk assessment into the planning cycle, including mitigation measures; Enhanced risk mitigation requirements in Project Gateway.

Risk Analysis

Operating Environment

Successful achievement of WD’s strategic outcomes depends on the department’s ongoing ability to identify, assess and manage enterprise-wide risks.  WD’s Executive Committee reviews and approves the department’s  corporate risk profile annually to ensure relevance and to inform departmental planning.  The key risks which impacted WD’s performance in 2009-2010 are outlined below.

External Risks

The global economic downturn had a significant impact on the largely commodity-based economies of Western Canada. Of the four western provinces, only Manitoba, with its diversified economic base, avoided a major decline in its overall economic performance in comparison to the other western Canadian and Canadian provinces. As a region, Western Canada’s economy contracted by 3.7 per cent and lost more than 100 thousand jobs in 2009.  To address the challenges related to the global economic recession, the Government of Canada tasked WD with the delivery of CAF and RInC in Western Canada, as part of EAP.

The economic downturn exposed the vulnerability of a commodity-based economy to rapidly evolving economic shifts and revealed persistent weakness in innovation and productivity - as reflected by R&D expenditures, investment in ICT, and university income from the commercialization of intellectual property. WD identified four operational priorities for 2009-2010 to address these vulnerabilities: 1) technology commercialization, 2) trade and investment, 3) business productivity and competitiveness, and 4) rural diversification.  A summary of actions and overall performance against these operational priorities is provided in Section I, above.  In addition, an assessment of the contribution of each WD program activity to these operational priorities, as well as the extent to which external risks hindered the achievement of targets, is presented in Section II.

Internal Risks

As part of its on-going integrated risk management process, WD identified nine key internal risks which might inhibit the successful delivery of the department’s mandate.  Risks such as performance measurement and public service renewal were selected as management priorities for 2009-2010 and results of mitigation efforts are captured in Section I.  Since risk mitigation measures were also incorporated into the design and development of WD’s EAP initiatives, through these initiatives WD has demonstrated the ability of its partners to undertake priority activities, has solidified its strong reputation among stakeholders and partners for effective and relevant programming, and has underscored it’s ability to deliver an effective and consistent communications message.

WD’s longer term resource challenges were addressed through the approval of an additional $14.7M per year in long-term stable program funding for the Western Diversification Program (WDP) in Budget 2010.  WD also carried out an external readiness assessment in preparation for adopting new accounting practices and to aid in demonstrating the effectiveness of its financial control framework and in strengthening budget management.

Expenditure Profile

Figure 1

Spikes in actual spending over the past four years can be attributed to one-time initiatives such as the MPB initiatives, ASC Initiative, and InterVac, which WD delivered in addition to its core programs.  As indicated separately in the table above, 2009-2010 actual spending was augmented by the delivery of three EAP initiatives: CAF, RInC, and on-going funding for the Canada Business Network (CBN).

The wind down of some prior initiatives  may also impact the department’s level of spending from year to year. For example, expenditures under the Infrastructure Canada Program (ICP) decreased over the last three years from $30.6M in 2007-2008, to $12.9M in 2008-2009 and to $3.7M in 2009-2010, whereas expenditures related to the MPB initiatives increased from $2.8M in 2007-2008 to $21.0M in 2009-2010.

The figures presented in the above chart do not include funds spent through Other Government Department (OGD) suspense accounts, on behalf of other departments. For example, in fiscal 2009-2010, WD expended approximately $133.4M on behalf of Infrastructure Canada to deliver MRIF and CSIF.

Canada’s Economic Action Plan

Under EAP, WD was responsible for the delivery of RInC, CAF, and the on-going CBN funding in Western Canada. The department spent a total of $186.3M in 2009-2010.  WD is also delivering the Building Canada Fund (BCF) top-up funding on behalf of Infrastructure Canada, which  was announced in Budget 2009, within WD’s existing operating funding levels.

Voted and Statutory Items
($ thousands)

Vote # or Statutory Item (S)	Truncated Vote or Statutory Wording	2007-08 Actual Spending	2008-09 Actual Spending	2009-2010 Main Estimates	2009-2010 Actual Spending
1	Operating expenditures	45,018	49,645	41,725	54,991
5	Grants and contributions	197,120	187,009	195,245	226,147
(S)	Community Adjustment Fund	-	-	-	133,437
(S)	Contributions to employee benefit plans	5,017	5,481	4,801	6,712
(S)	Collection Agency Fees	3	-	-	2
(S)	Minister of Western Economic Diversification	-	25	-	2
(S)	Spending of Proceeds from disposal of Surplus Crown Assets	2	13	-	12
Total		247,160	242,173	241,771	421,303

The significant differences in Vote 1, 5 and statutory spending between 2008-2009 and 2009-2010 are due to the inclusion of the EAP initiatives. CAF is included as a Statutory Item; RInC is included in Vote 1 and Vote 5; and ongoing Canada Business Network funding is included under Vote 1.

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