Appendix A

Government Themes and Management Issues

a) Territorial Development Policy Committee (TDPC) of the Organisation for Economic Co-operation and Development (OECD)

As the Canadian delegate to the TDPC, in 2003-2004, ACOA participated in the development of the committee's new mandate and co-ordinated the Government of Canada's input in the proposed directions for the 2005-2009 time period. The new mandate (approved June 2004) will build on the key conclusions reached by the committee in previous national and regional studies, namely: the drivers of national competitiveness have become more local; policy must increasingly consist of an array of regional competitiveness policies; and regional policies are required to help overcome sectoral, vertical and horizontal administrative barriers.

These new directions will make the TDPC the principal international forum for policy dialogue and for the exchange of experience and good practices in regional policy and multi level governance. The new mandate will also incorporate changes recommended in the reform proposed by the OECD, which are intended to introduce more modern management practices and increased transparency and accountability.

During fiscal year 2003-2004, the TDPC completed the review of Metropolitan Montreal, which was released in February 2004. The review's objectives were to address issues of governance, fiscal capacity and international competitiveness of Metropolitan Montreal.

As of April 1, 2004, Western Economic Diversification Canada became Canada's official delegate to the TDPC.

b) Federal Regional Councils

ACOA regional Vice-Presidents chair or play co-ordinating roles in Federal Regional Councils in each province. These councils bring together senior officials of federal departments and agencies. Councils play an important role as an executive forum to help improve service delivery, communications with provincial governments and other federal departments on regional perspectives and federal initiatives, as well as co-operation and co-ordination with other jurisdictions.

Some of the specific initiatives undertaken in 2003-2004 were:

In Newfoundland and Labrador, an Issues Environmental Scan was completed to help provide a more informed federal-regional perspective to central agencies on key issues affecting the economic and social well-being of the residents of Newfoundland and Labrador. A very successful Government On-Line outreach program was undertaken to inform people in rural Newfoundland and Labrador of the federal services available to them. The Council also evaluated the Public Sector Leadership and Management Development Program and made the changes necessary to meet the needs of the Manager Community in Newfoundland and Labrador.

In Prince Edward Island, a needs analysis was carried out and a concept was developed for a learning centre that is to be shared by 27 federal department and agencies in that province. The Council also initiated a diversity network for enhancing equality across all federal offices, and the Youth Committee held a forum to help in the development of young public servants. Other initiatives include the development of a federal Official Languages Linguistic Strategy for the province, Security Planning, and the creation of a Web site that provides learning information to public servants. Planning for sessions on Values and Ethics, and Management Accountability was completed and arrangements were made with the University of Prince Edward Island, Holland College and a new school for the public service to deliver training to federal public servants in the province.

In New Brunswick, the Council implemented its new governance structure through a Board of Management where each member acts as a champion on a horizontal file. It also provided for more flexibility and accountability in reporting on such horizontal initiatives. Some of the key files were Aboriginal Dialogue, Youth, Homelessness, Learning Diversity, Official Languages, Emergency Protocol for the province, and the Government Workplace Charitable Campaign in Fredericton.

In Nova Scotia, the Federal Council undertook activities that resulted in significant accomplishments for the public service in the province. The official languages committee fostered significant networking and sharing of best practices, submitted and received major financial support for projects under the regional partnership fund. These projects will include a forum on exemplary public service, language skills training and a feasibility study to single-window approach on service delivery. The service delivery action group has completed research on Government of Canada service delivery issues and conducted seminars on service delivery initiatives in various federal departments. Its current focus is on developing and implementing a pilot on service delivery. ACOA organized learning seminars on horizontal management, climate change and socio-economic inclusion. The Agency has also negotiated and completed a declaration on the advancement of social and economic inclusion, which was endorsed by all Council members.

c) Sustainable Development Strategy

ACOA's goals for sustainable development relate to promoting sustainable communities and businesses in Atlantic Canada and setting an example in the environmental management of ACOA's operations. The majority of targets under ACOA's Sustainable Development Strategy (SDS) I and II were focussed on raising awareness, providing information to clients and staff, partnering with other stakeholders to host workshops and presentations, and greening of internal operations. These targets were met and the framework for SDS III is built to include objectives of working with associations and partners on projects and initiatives that promote and support environmental industries in the region, contributing to improved water and sewer infrastructure, and promoting eco-efficiency and eco-tourism.

Since 2000, community leaders in Bouctouche, New Brunswick, have been leading the "Lessons Learned" program, in partnership with ACOA, to share with other communities in Atlantic Canada their experience of using the concept of eco-tourism to guide regional development. ACOA has supported various tourism operators in the region to participate in the program and will continue this under SDS III.

Two-year funding was approved to establish the Nova Scotia Environmental Industry Association's (NSEIA) ClimAdapt, whose objectives are to pursue emerging world market demand for assessment and planning services of climate change. ClimAdapt is a network of companies within the NSEIA that works in conjunction with the Nova Scotia Department of Environment, the Nova Scotia Department of Labour, the Halifax Regional Municipality, Canadian Climate Impacts and Adaptation Research.

Two-year funding was approved for ongoing operation and incremental activity of the Eco-Efficiency Centre in the Burnside Industrial Park, in the Halifax Regional Municipality. The main objective of the Centre is to work with companies in the Park to improve their environmental and economic efficiency in such areas as waste management and water use. The Centre provides arm's-length credible service to small and medium-sized businesses, with the eventual goal of writing a manual to be distributed to industrial parks worldwide. The Centre is also a prototype and is being marketed nationally and internationally.

ACOA has successfully completed two environmental audits with volunteer clients in New Brunswick who have a high potential for financial and environmental benefits from participating in this process. Both companies are now in the implementation phase of modifying their operations to comply with the reports' recommendations. After the savings are quantified and formally reported, this initiative will be used as a marketing tool to demonstrate to ACOA clients the benefits of adopting sustainable environmental practices.

The Agency has also partnered with environmental industry associations to enhance the technical skills of SMEs so they are more efficient and competitive in the international marketplace. This process, known as "lean manufacturing," involves an expert consultant to work in partnership with a company's management and staff to improve productivity in relation to production (quantity/quality), inventory control, waste reduction, plant layout/design, etc. In addition to enhancing the companies' overall viability, it is expected that there will be significant sustainable benefits as SMEs reduce waste, energy consumption and emissions.

In its internal operations, ACOA has introduced initiatives to recycle paper, print double-sided documents and use paper with at least a 30% recycled paper content. Another important initiative to reduce paper usage has been the introduction of an electronic leave system, which eliminates the need for paper request forms and copies. The Agency's small fleet of 25 vehicles now contains six gasoline-electric hybrid models.

More information on ACOA's Sustainable Development Strategy may be found on ACOA's Web site at http://www.acoa-apeca.gc.ca/e/sustain/strat.shtml.

d) Official Languages Act, Section 41

ACOA's support of the French linguistic minority community in Canada, and especially in the Atlantic region, is evidenced by its membership on the national committee of Section 41 Co-ordinators and the National Committee on Economic Development and Employability. The goals outlined in the Committee's 2002-2007 Operational Strategic Plan are supported by the Agency.

During 2003-2004, ACOA worked on implementing the Atlantic Canada Cultural and Economic Partnership. The focus of this $10-million regional partnership with Canadian Heritage is to stimulate economic development of the culture sector and celebrate the history and cultural diversity of Atlantic Canada by highlighting the 400th anniversary of l'Acadie in 2004. The co-ordinating committee, with equal representation from the two departments, received 175 project proposals, of which 77 were approved.

In Nova Scotia, tourism remains a key economic development sector. Due to its unique culture, heritage and language, Acadian tourism represents an economic growth opportunity. In 2003-2004, ACOA worked with Acadian communities to support initiatives to capitalize on tourism opportunities arising from the Acadian commemorative events and beyond. The Agency also promoted Acadian entrepreneurship and skills development through core financial assistance to the Centre Jodrey at the Université Sainte-Anne, one of five Agency-supported University Business Development Service Centres in Nova Scotia. ACOA also facilitated economic development in the province's Acadian regions by providing core operating support to the Conseil de développement économique de la Nouvelle-Écosse. In 2003-2004, over $1.4 million was invested in support of community development and commercial projects in the Francophone communities on Cape Breton Island.

In New Brunswick, ACOA invested in 73 projects involving the French minority official language community. Organizations that benefited include: Université de Moncton, Collectivité ingénieuse de la Péninsule acadienne, Festival acadien de Caraquet, Pays de la Sagouine, Association des conchyliculteurs professionnels du N.-B., Avancement pédagogique des technologies de l'information et de la communication en Atlantique (APTICA) as well as other non-profit organizations and sector associations, community colleges, Community Economic Development Organizations, Community Business Development Corporations, Conseil économique du N.-B., and municipalities.

In Prince Edward Island, ACOA authorized 10 applications for financial assistance totalling over $1 million in support of Francophone cultural activities. Activities including marketing assistance for the Acadian 400th anniversary celebrations, Community Business Development Corporations, Community Economic Development Organizations, and the Grand-Ruisseau tourism development in the Evangeline area. A dedicated Francophone Affairs Development Officer now works in Wellington to serve the needs of PEI's largest Francophone community. A Memorandum of Understanding between ACOA, the Prince Edward Island Francophone Community and other federal and provincial departments commits the three partners to work together to ensure that policies, programs and services are co-ordinated and support the development of Prince Edward Island's Acadian Francophone community.

In Newfoundland and Labrador, ACOA continued to assist with economic diversification projects in the Francophone communities. These included the implementation of a plan for a Francophone Heritage Touring Route along the Avalon Peninsula, and the implementation of a proposal by the Fédération des Francophones de Terre-Neuve et du Labrador and the Société 2004 Society to plan and carry out activities specific to the Acadian celebrations of 2004. ACOA also collaborated with Canadian Heritage on the assessment and approval of several special projects throughout the province in support of the 2004 Acadian celebrations. These proposals were funded through the Atlantic Canada Cultural and Economic Partnership.

e) Modern Comptrollership

For the past year, ACOA has been implementing Modern Comptrollership, known as Modern Business Management (MBM) within the Agency. Numerous actions have been completed in response to the original Capacity Assessment findings, including most of the activities in the 10 MBM Priority Area Action Plans. In addition to the priority areas, the Agency recognized other opportunities for improvement that could be implemented in the immediate term. These "low-hanging fruit" have all been completed. More information on the action plan and low hanging fruit can be found at http://www.acoa-apeca.gc.ca/e/library/reports/MBM.shtml.

In 2003-2004, the Agency conducted an internal examination of its progress with regard to MBM, in preparation for a capacity review that is currently underway. The report illustrates that ACOA is doing quite well in most areas of MBM and identifies areas for improvement.

ACOA has made progress in implementing the critical elements of modern comptrollership:

• Linking Financial and Non financial Information. The Agency's Report on Plans and Priorities (RPP) and Departmental Performance Report (DPR), complementary documents, show links between the Agency's performance plans and achievement, and demonstrate ACOA's commitment to results-based management. Within these reports, ACOA's three strategic outcomes are identified, supported by several strategic priorities, and presented according to total planned spending on strategic outcomes and allocation of resources to the priorities.
• Managing Corporate Risk. The consulting firm Deloitte and Touche developed a Risk Profile for the Agency, which was presented to ACOA's Executive Committee. The next step is to develop an Integrated Risk Management Framework, identifying appropriate mitigation measures for the three highest priority risk levels identified in the Risk Profile.
• Delegations of Authority. ACOA has systems of control to ensure that delegations of authority are appropriate. Financial signing authority delegation instruments are reviewed regularly and the Agency's master chart is available on its intranet site for ease of use and availability.
• Values and Ethics. Copies of Values and Ethics Code for the Public Service have been distributed to all ACOA staff with a note from the President; values and ethics case study discussions have been held in most ACOA regions, and staff are reminded on a yearly basis of their obligation vis-à-vis the code. No complaints have been received to date by the Senior Integrity Officer.

With the introduction of the Management Accountability Framework (MAF), the Agency has taken some measures to build on its approach to implement Modern Comptrollership and to address the expectations set out in the MAF:

• A highly successful conference on modern business management practices was held for all ACOA managers. The conference focussed on engaging all of management in the implementation of the Agency's MBM action plan. At the conference, a presentation on MAF was delivered by a representative from the Treasury Board Secretariat.
• In early 2004, the ACOA Executive Committee requested a MBM Capacity Review that would include a current assessment of the seven core criteria of modern business management: shared values and ethics, mature risk management, integrated performance information, rigorous stewardship, strategic leadership, motivated people, and clear accountability. The review would also benchmark the three additional criteria identified in the MAF: policy and programs, citizen-focussed services; learning, innovation and change management. The Capacity Review will be completed in the fall of 2004.

f) Government On-Line (GOL)

In the 1999 Speech from the Throne, the Government of Canada committed to giving Canadians on-line access to all its information and key services by 2005. ACOA is well positioned to meet this goal.

A key component of improving service delivery to Atlantic Canadians is ACOA's commitment to the Government On-Line (GOL) strategy to deliver information, programs and services over the Internet. Improving the quality of interaction between Atlantic Canadians and the Agency enables ACOA's clients to request and receive information and services when and where it is most convenient for them. The use of on-line tools is an important part of this strategy. ACOA's vision for GOL can be found at http://www.acoa-apeca.gc.ca/e/about/gol.shtml. Identifying areas of collaboration on GOL initiatives continues through the Agency's chairing of a Regional Development Agency committee including Western Economic Diversification, Canada Economic Development for Quebec Regions, FedNor, Enterprise Cape Breton Corporation.

ACOA, in co-operation with partners, developed two partner-managed Web sites for the delivery of community-based information, one for the PEI Federal Council (http://www.peifc-cfipe.gc.ca) and the other for Team Canada Atlantic (http://www.teamcanadaatlantic.ca).

ACOA entered into an agreement with Treasury Board's secure channel initiative to be one of the first departments/agencies for which a generic process for connectivity to the secure channel infrastructure could be developed. The teams are in place for both partners, and a project plan has been developed and is being followed. Completion of phase one is expected for 2004-2005.

g) Service Improvement Initiative

The Service Improvement Initiative is a key component of the government's commitment to Citizen-Centred Service Delivery. The Agency continued to support this initiative by pursuing several activities, including the second corporate paper-based client survey in late 2003. Over 1,000 clients were surveyed, with a response rate of 43.1%.

Survey responses for the core indicators required by Treasury Board, using the Canadian Centre for Management Development (CCMD) acclaimed Common Measuring Tool (CMT), are shown in the box to the right, While the Agency recorded a slight (less than 2%) decrease in overall satisfaction, ACOA results exceed the overall government rating (64%) by nearly 20%. The Agency is now in the process of reviewing the results of its second client satisfaction survey with the objective of further refinement of the improvement plan.

To contribute to the government's objective of service improvement, the Agency developed a service improvement plan that addresses the major concerns identified in the first client satisfaction survey. In terms of business process improvement, the Agency implemented its process mapping approach to core programming activities, including the Strategic Community Investment Fund.

h) ACOA's Review Services Division and Performance Measurement

ACOA's Review Services Division includes the Agency's internal audit and evaluation functions. The primary goal of these functions is to provide ACOA's managers with timely, accurate, balanced and evidence-based information on the performance, relevance and cost-effectiveness of the Agency's various programs, policies and initiatives and, ultimately, their outcomes. This information is used by external stakeholders such as central agency officials, parliamentarians and the general public to gauge Agency results, and by internal ACOA managers to make strategic and operational decisions on improving the overall effectiveness of the Agency's programming and to account for results.

Performance measurement is usually defined as the ongoing, systematic monitoring and reporting of program accomplishments, particularly progress toward pre-established goals. Performance measures may address the type or level of program activities conducted (process), the direct products and services delivered by a program (outputs), and/or the results of those products and services (outcomes). A "program" may be any activity, project (initiative), function, or policy that has an identifiable purpose or set of objectives.

Depending on their focus, audits and evaluations may examine aspects of program management and operations, or factors in the program environment that may impede or contribute to its success, to help explain the linkages between program inputs, activities, outputs and outcomes. Performance measurement focusses on whether a program has achieved its objectives, expressed as measurable performance standards. In the end, both forms of assessment aim to support resource allocations and other policy decisions to improve service delivery and program effectiveness. But performance measurement, because of its ongoing nature, can serve as an early warning system to management and as a means for improving accountability to Parliament, and to Canadians in general.

Several audits and evaluations of ACOA programs were recently completed, including a program management audit and formative evaluation of the Agency's Atlantic Innovation Fund. A list of evaluations and reviews conducted in 2003-2004 appears in Appendix E. Report summaries are available at http://www.acoa-apeca.gc.ca/e/library/audit.shtml