2013-2014
Departmental Performance Report - Section 2

Section II: Analysis of Programs by Strategic Outcomes

The information presented in this section is organized according to Infrastructure Canada's 2013-2014 Program Alignment Architecture structure:

Strategic Outcome 1:

Provinces, territories and municipalities have federal financial support for their infrastructure priorities.

Strategic Outcome 2:

Funding for quality, cost-effective public infrastructure that meets the needs of Canadians in a competitive economy, a cleaner environment and liveable communities is provided.

2.1 Strategic Outcomes 1

Under Strategic Outcome 1, the Gas Tax Fund and the Provincial-Territorial Infrastructure Base Fund continued to provide stable, predictable funding for jurisdictions and offer them significant flexibility in funding their core infrastructure priorities.

Since the start of the Gas Tax Fund program in 2005, up to 2012-2013, municipalities across Canada have spent $7.3 billion on municipal projects in areas that reflect their local priorities and needs, such as public transit, local roads and bridges, drinking water and wastewater infrastructure (figure 5).

2.1.1 Program: Provincial-Territorial Infrastructure Base Fund

Program Description: for section 2.1.1 Program: Provincial-Territorial Infrastructure Base Fund

This program provides base funding to each province and territory for core public infrastructure priorities. In addition, funding under the Building Canada Fund for the three territories is managed under this fund. The Provincial-Territorial Infrastructure Base Fund was designed to help provinces and territories with their infrastructure priorities. It also supports economic growth and productivity, and promotes a cleaner environment and prosperous communities. While payments are made to provinces and territories, ultimate recipients can also include local and regional governments or private sector bodies. In order for federal funding to flow, provinces and territories submit a list of infrastructure initiatives through a capital plan which must be accepted by the Minister of Infrastructure, Communities and Intergovernmental Affairs, and Minister of the Economic Development Agency of Canada for the Regions of Quebec. Payments are made in advance and cost-sharing provisions apply to a capital plan as a whole, and not to individual initiatives. Provinces and territories may pool, bank, or cash-manage these funds to give them flexibility in implementation.

Financial Resources (In Dollars) for section 2.1.1 Program: Provincial-Territorial Infrastructure Base Fund

2013-2014 Main Estimates	2013-2014 Planned Spending	2013-2014 Total Authorities Available for Use	2013-2014 Actual Spending (Authorities Used)	2013-2014 Difference (Actual Minus Planned)
265,490,056	265,490,056	321,192,991	191,464,385	-74,025,671

Human Resources (Full-Time Equivalents (FTE)) for section 2.1.1 Program: Provincial-Territorial Infrastructure Base Fund

2013-2014 Planned	2013-2014 Actual	2013-2014 Difference (Actual Minus Planned)
3	3	0

Program Expected Results	Performance Indicators	Targets	Actual Results
Infrastructure Canada funding through the Provincial-Territorial Infrastructure Base Fund leverages investments in infrastructure by other partners	Funding leveraged from the provinces, and other partners, as a percentage of federal funding	≥100%	155.8%
	Funding leveraged from the territories, and other partners, as a percentage of federal funding	≥33%	50.1%
Recipient organizations are accountable for funding provided through the Provincial-Territorial Infrastructure Base Fund	Number of jurisdictions in compliance with annual expenditure reporting requirements in accordance with signed funding agreements	13	13

Performance Analysis and Lessons Learned for section 2.1.1 Program: Provincial-Territorial Infrastructure Base Fund

Following the acceleration of the Provincial-Territorial Infrastructure Base Fund (PT Base Fund) as part of the 2009 Economic Action Plan, all funds available under the Provincial-Territorial Infrastructure Base Fund ($2.3 billion) have been committed as of March 31, 2014.

During the reporting period, seven amended capital plans were approved under two jurisdictions, committing an additional $3.6 million in federal funding and leveraging $6.8 million from partners for 12 new initiatives.

Provincial-Territorial Infrastructure Base Fund program parameters require provinces to cost share funds equal to the federal contribution for projects identified in their capital plans. For their part Territories are required to contribute funds representing at least a third of the federal contribution. Actual results show that provinces and territories have contributed well beyond the program's cost sharing requirements.

Infrastructure Canada continues to work with provincial and territorial governments to ensure that the required reports are submitted in a timely fashion, and the Department provides guidance on any issues that may arise during the provincial or territorial audit that would potentially delay their report submissions and related payments. To date, two jurisdictions have completed all reporting obligations and have received their final payments under the PT Base Fund.

2.1.2 Program: Gas Tax Fund

Program Description: for section 2.1.2 Program: Gas Tax Fund

This program provides municipalities with predictable long-term funding, enabling construction and rehabilitation of core public infrastructure. The federal government has concluded Gas Tax Fund Agreements with provinces, territories, the Association of Municipalities of Ontario, the Union of British Columbia Municipalities and the City of Toronto, which were in effect from 2005-2006 to 2013-2014. Moreover, all Gas Tax Fund Agreements have been signed for the permanent Gas Tax Fund, starting in 2014-2015. Gas Tax Fund Agreements establish an accountability framework allowing the Government of Canada to flow Gas Tax Fund money twice a year to signatories which, in turn, flow funds to municipalities based on an agreed-upon allocation formula. For their part, municipalities decide which projects to prioritize within established investment categories. Projects focus on environmental objectives, including cleaner air, cleaner water and reduced greenhouse gas emissions, and increasing communities' long-term planning capacities. Municipalities can pool, bank and borrow against this funding, providing significant additional financial flexibility. Eligible recipients are required to report annually on their use of funds and their compliance to terms and conditions of the Gas Tax Fund Agreements.¹¹

Financial Resources (In Dollars) for section 2.1.2 Program: Gas Tax Fund

2013-2014 Main Estimates	2013-2014 Planned Spending	2013-2014 Total Authorities Available for Use	2013-2014 Actual Spending (Authorities Used)	2013-2014 Difference (Actual Minus Planned)
1,976,235,536	1,976,235,536	2,108,849,290	2,107,905,313	131,669,777

Human Resources (FTE) for section 2.1.2 Program: Gas Tax Fund

2013-2014 Planned	2013-2014 Actual	2013-2014 Difference (Actual Minus Planned)
16	14	-2

Program Expected Results	Performance Indicators	Targets	Actual Results
Provinces, territories and municipal associations are accountable for funding provided to local governments through the Gas Tax Fund	Percentage of jurisdictions in compliance with annual expenditure reporting and periodic outcomes reporting requirements	100%	93% submitted annual expenditure reports 62% submitted periodic outcome reports
Municipalities have access to stable and predictable funding to build and improve infrastructure	Amount of provincial/territorial allocation flowed to municipalities for spending on municipal infrastructure priorities (as a percentage of annual allocation)	95%	98%*
Gas Tax Fund promotes investments in environmentally sustainable municipal infrastructure	Value of spending on projects that promote a cleaner and sustainable environment and make communities more liveable	$1.98 billion	$1.72 billion**

Notes:

[*]Calculation based on amounts flowed to municipalities (transferred to recipients) as reported in most recent annual expenditure report (2012-2013).

[**]Calculation represents actual spending in previous year (2012-2013). The province of Quebec does not provide information on project expenditures; as such, Quebec expenditures are not accounted for in this total. The total 2012-2013 allocation for Quebec was over $463 million.

Performance Analysis and Lessons Learned for section 2.1.2 Program: Gas Tax Fund

In 2013-2014, Infrastructure Canada continued to provide provinces, territories and municipalities with stable and predictable Gas Tax funding. As reported in the 2012-2013 expenditure reports, all projects funded under the Gas Tax Fund helped to build and improve public infrastructure that contributes to cleaner air, cleaner water, or reduced greenhouse gas emissions. Capacity building projects funded under the Gas Tax Fund also supported integrated municipal planning.

Progress on the completion and submission of Outcomes Reports by recipients was delayed in certain jurisdictions. Some recipients noted that the launch of negotiations for the renewed Gas Tax Fund, combined with limited capacity, resulted in an inability to finalise, approve and submit the Outcomes Reports to Infrastructure Canada.

Under the Gas Tax Fund, predetermined yearly allocations are expected to flow to provinces and territories according to a regular payment schedule. However, the release of funding is tied to the submission of an annual expenditure report (AER). Delays in compliance with this program requirement result in payment delays, which are remedied upon reception and acceptance of the reports. In 2013-2014, the submission of previous year outstanding reports explains the difference of $131.7 million between the planned and actual funds flowed.

Infrastructure Canada also made very significant progress on the renewal of the Gas Tax Fund. Extensive discussions were held with provinces, territories and other stakeholders to finalize program parameters and, in November 2013, administrative agreements for the renewed Gas Tax Fund (2014-2015 to 2023-2024) were shared with all the signatories. Audit and Evaluation recommendations, notably in regards to improving federal visibility and communications under the program, have been implemented and revamped communications protocols are integral to all agreements. As of July 31, 2014, negotiations for the renewed Gas Tax Fund were completed and agreements signed with all jurisdictions.

2.2 Strategic Outcome 2

This Strategic Outcome reflected the Department's longer-term infrastructure programs, comprising targeted programs such as the Green Infrastructure Fund and the Building Canada Fund. The Department provides funding to partners for large- and small-scale projects as well as those with national and regional benefits. Transfer payment programs support the priorities of our partners.

Since 2006, the Department's various programs under Strategic Outcome 2 have provided over $10.3 billion in federal funding towards provincial, territorial and municipal infrastructure projects in areas such as transportation (highways, roads, bridges and rail infrastructure), public transit, drinking water, green infrastructure (which includes green energy and wastewater infrastructure), sports and recreation, and culture and tourism. Figure 6 and the accompanying table provide more details on the number of projects and Infrastructure Canada's funding amounts by asset category.

Total number of projects and funding for programs under SO2, by asset category, since 2006

Project Category:	Number of projects:	INFC Funding (in million$):
Transportation	577	2,785.5
Green Infrastructure (including wastewater)	688	1,838.9
Public Transit	33	3,254.1
Sports and Recreation	291	659.9
Drinking Water	663	815.0
Culture and Tourism	90	680.7
Other	513	303.1
Total	2,855	10,337.2

Note: SO2 programs include: Building Canada Fund–Communities Component (BCF–CC), Building Canada Fund–Major Infrastructure Component (BCF–MIC), Green Infrastructure Fund (GIF), Canada Strategic Infrastructure Fund (CSIF), and Municipal Rural Infrastructure Fund (MRIF).

2.2.1 Program: Building Canada Fund–Communities Component

Program Description: for section 2.2.1 Program: Building Canada Fund–Communities Component

This program supports infrastructure needs of smaller communities with populations of less than 100,000. Project costs are shared with provincial and municipal governments, with each order of government generally contributing one-third of the eligible costs. The fund invests in the construction, renewal, and enhancement of basic infrastructure such as potable water, wastewater treatment, local roads, and other infrastructure needs of small communities.¹²

Financial Resources (In Dollars) for section 2.2.1 Program: Building Canada Fund–Communities Component

2013-2014 Main Estimates	2013-2014 Planned Spending	2013-2014 Total Authorities Available for Use	2013-2014 Actual Spending (Authorities Used)	2013-2014 Difference (Actual Minus Planned)
188,733,842	188,733,842	188,868,012	121,255,786	-67,478,056

Human Resources (FTE) for section 2.2.1 Program: Building Canada Fund–Communities Component

2013-2014 Planned	2013-2014 Actual	2013-2014 Difference (Actual Minus Planned)
11	11	0

\

Program Expected Results	Performance Indicators	Targets*a	Actual Results
Infrastructure Canada funding through the Building Canada Fund-Communities Component leverages investments in infrastructure by other partners	Funding leveraged from partners as a percentage of federal funding (committed)	≥200%	207%
Infrastructure is implemented that promotes a cleaner environment for small communities	Number of projects completed that promote cleaner air, water and land and contribute to green energy	206 projects	194 projects
	Value of projects completed that promote cleaner air, water and land and contribute to green energy	$737.6 million	$557.5 million
Infrastructure is implemented that promotes a competitive economy for small communities	Number of projects completed that promote a stronger, competitive and a sustainable economy	7 projects	5 projects
	Value of projects completed that promote a stronger, competitive and a sustainable economy	$14 million	$8.4 million
Infrastructure is implemented that promotes liveable small communities	Number of projects completed that promote safety in communities and makes communities more liveable	485 projects	474 projects
	Value of projects completed that promote safety in communities and makes communities more liveable	$1.4 billion	$1.3 billion

[*a]Cumulative number/value of projects to be completed under the program, up to and including March 31, 2014.

Performance Analysis and Lessons Learned for section 2.2.1 Program: Building Canada Fund–Communities Component

In 2013-2014, Infrastructure Canada and its federal delivery partners made significant progress in implementing the Building Canada Fund-Communities Component program:

• 65 projects valued at $328 million were completed;
• 20 additional projects worth $49 million began construction; and
• 247 projects worth $1.3 billion are still underway.

As of this fiscal period, a total of 930 projects have been funded under the program, and over $1 billion in federal funding has been committed to these projects. Collaboration with federal delivery partners and stakeholders is effectively supporting program delivery. Over 70 percent of projects have been completed even though three years remain in the program.

Infrastructure Canada has also contributed to an additional 14 projects in Quebec through a federal allocation of $200 million under the Large Urban Centres Component of the Building Canada Fund.

The largest investments under the Building Canada Fund–Communities Component by categories are the following: wastewater infrastructure, with a total federal investment of $348 million; water infrastructure, with a total federal investment of close to $260 million; and local road infrastructure, with a total federal investment of over $172 million.

The actual number of projects completed by proponents during the fiscal year and, as a consequence, the total value of projects completed were lower than forecasted for a number of reasons including inclement weather, technical and other construction-related complexities that led to construction delays. Construction on these projects continues and Infrastructure Canada will continue to reimburse recipients as claims are submitted.

Program delivery policies and tools have been implemented to improve monitoring and reporting on the progress of the Building Canada Fund-Communities Component. These tools focus on improving reporting and data quality requirements of the program as this has been identified as an area of improvement for the program. A program evaluation is planned for 2014-2015 and recommendations will be addressed as Infrastructure Canada continues to work with the provinces to ensure that this program moves towards closure in the next three years.

2.2.2 Program: Building Canada Fund–Major Infrastructure Component

Program Description: for section 2.2.2 Program: Building Canada Fund–Major Infrastructure Component

This program targets larger infrastructure projects of national or regional significance. It increases overall investment in public infrastructure and contributes to broad federal objectives: economic growth, a cleaner environment and strong and prosperous communities. At least two-thirds of the funding is targeted to national priorities for water, wastewater, public transit, the core national highway system, and green energy. The Major Infrastructure Component has 12 additional eligible categories of investment, and priority projects are identified through discussions with provinces. By providing federal funding on a cost-shared basis (typically up to one-half of eligible costs for provincial projects and up to one-third of eligible costs for municipal projects), the Major Infrastructure Component program leverages additional contributions from other partners to increase overall investment in infrastructure. Eligible recipients include provinces, local or regional governments and private sector bodies, including non-profit organizations. Projects must be supported by a business case and undergo a stringent federal review against key program criteria.¹³

Financial Resources (In Dollars) for section 2.2.2 Program: Building Canada Fund–Major Infrastructure Component

2013-2014 Main Estimates	2013-2014 Planned Spending	2013-2014 Total Authorities Available for Use	2013-2014 Actual Spending (Authorities Used)14	2013-2014 Difference (Actual Minus Planned)
942,955,457	942,955,457	955,186,117	703,538,461	-239,416,996

Human Resources (Full-Time Equivalents (FTE)) for section 2.2.2 Program: Building Canada Fund–Major Infrastructure Component

2013-2014 Planned	2013-2014 Actual	2013-2014 Difference (Actual Minus Planned)
22	34	12

Program Expected Results	Performance Indicators	Targets*b	Actual Results
Infrastructure Canada funding through the Building Canada Fund-Major Infrastructure Component leverages investments in infrastructure by other partners	Funding leveraged from partners as a percentage of federal funding (committed)	≥100%	193%
Large infrastructure is implemented that promotes a cleaner environment	Number of projects completed that promote cleaner air, water and land and contribute to green energy	6 projects	3 projects
	Value of projects completed that promote cleaner air, water and land and contribute to green energy	$310 million	$160.4 million
Large infrastructure is implemented that promotes a competitive economy	Number of projects completed that promote efficiency and integration of Canada's transportation networks, expand broadband networks and economic development	47 projects	40 projects
	Value of projects completed that promote efficiency and integration of Canada's transportation networks, expand broadband networks, and economic development	$4.5 billion	$4 billion
Large infrastructure is implemented that promotes liveable communities	Number of projects completed that promote safety in communities and makes communities more liveable	37 projects	20 projects
	Value of projects completed that promote safety in communities and makes communities more liveable	$1.5 billion	$610 million

[*b]Cumulative number/value of projects to be completed under the program, up to and including March 31, 2014.

Performance Analysis and Lessons Learned for section 2.2.2 Program: Building Canada Fund–Major Infrastructure Component

In 2013-2014, Infrastructure Canada and its federal delivery partners made progress in the implementation of the Building Canada Fund-Major Infrastructure Component:

• 15 projects valued at close to $3 billion were completed;
• 19 additional projects worth close to $3 billion began construction; and
• 122 projects worth $16.5 billion are still underway.

As of this fiscal period, a total of 188 projects have been funded under the program, and over $7.2 billion in federal funding has been committed to these projects. Collaboration with federal delivery partners and stakeholders is effectively supporting program delivery. Nearly 40 percent of projects are completed.

The largest investments under the Building Canada Fund–Major Infrastructure Component by categories are as follows: public transit infrastructure, with a total federal investment of over $3 billion, and national highway system infrastructure, with a total federal investment of over $2 billion.

The total number of projects completed by project proponents this fiscal year and, as a consequence, the total value of projects completed were slightly lower than the planned target, as some of these large-scale and complex projects encountered delays and were not completed by year-end as forecast. Typically, project delays occur as a result of inclement weather and technical and other construction-related complexities and are beyond Infrastructure Canada's control. However, construction on these projects is ongoing and Infrastructure Canada will continue to monitor progress towards completion and reimburse recipients as claims are submitted.

Program delivery policies and tools have been implemented to improve monitoring and reporting on the progress of the Building Canada Fund–Major Infrastructure Component. It has been noted that forecasting of expenditures under the program is challenging given the large scope of project investments and uncertainties around construction conditions. Infrastructure Canada is implementing measures, such as claims procedures to improve monitoring of expenditures and forecasts. In addition, resources previously assigned to stimulus funding programs are now devoted to the delivery of the program in order to increase monitoring and due diligence capacity as Infrastructure Canada moves towards closure of the Major Infrastructure Component in the next years.

2.2.3 Program: Green Infrastructure Fund

Program Description: for section 2.2.3 Program: Green Infrastructure Fund

This program supports environmental infrastructure projects that promote cleaner air, reduced greenhouse gas emissions and cleaner water. Targeted investments in green infrastructure can contribute to improving the quality of the environment and a more sustainable economy over the longer term. There are five eligible categories of investment: wastewater infrastructure, green energy generation infrastructure, green energy transmission infrastructure, solid waste infrastructure, and carbon transmission and storage infrastructure. By providing up to 50 percent federal funding on a cost-shared basis, the fund leverages additional investments from other partners. Eligible recipients include provinces, territories, local or regional governments, public sector bodies, non-profit organizations and private sector companies, either alone or in partnership with a province, territory or a government body.¹⁵

Financial Resources (In Dollars) for section 2.2.3 Program: Green Infrastructure Fund

2013-2014 Main Estimates	2013-2014 Planned Spending	2013-2014 Total Authorities Available for Use	2013-2014 Actual Spending (Authorities Used)	2013-2014 Difference (Actual Minus Planned)
125,029,717	125,029,717	125,402,876	85,735,908	-39,293,809

Human Resources (Full-Time Equivalents (FTE)) for section 2.2.3 Program: Green Infrastructure Fund

2013-2014 Planned	2013-2014 Actual	2013-2014 Difference (Actual Minus Planned)
29	14	-15

Program Expected Results	Performance Indicators	Targets*c	Actual Results
Infrastructure Canada funding through the Green Infrastructure Fund leverages investments in infrastructure by other partners	Funding leveraged from partners as a percentage of federal funding (committed)	≥100%	171%
Infrastructure is implemented that promotes cleaner air, cleaner water and cleaner land	Number of projects completed that reduce environmental impacts to air, water and land	1 project	1 project
	Value of projects completed that reduce environmental impacts to air, water and land	$142 million	$142 million

[*c]Cumulative number/value of projects to be completed under the program, up to and including March 31, 2014.

Performance Analysis and Lessons Learned for section 2.2.3 Program: Green Infrastructure Fund

In 2013-2014, Infrastructure Canada made progress in the implementation of the Green Infrastructure Fund. More than $675 million in funding commitment is leveraging nearly $1.2 billion from funding partners for a combined total investment of over $1.8 billion towards 19 projects that will support cleaner air, water and land across the country. To date, one project has been completed and 16 more are still underway valued at over $1.5 billion.

The largest categories of investment under the Green Infrastructure Fund are the following: wastewater infrastructure, with a total federal investment of nearly $300 million, and solid waste management infrastructure, with a total federal investment of over $80 million.

The implementation of the Green Infrastructure Fund has been noticeably slower than for other programs. This can be attributed to the nature of projects funded under this program which are innovative and often rely on newly developed technologies. Infrastructure Canada has met its targets under the program and will continue to oversee the implementation of project-specific agreements of the Green Infrastructure Fund, ensuring that the terms of agreements are respected and that claims for payment are processed efficiently.

2.2.4 Program: Canada Strategic Infrastructure Fund

Program Description: for section 2.2.4 Program: Canada Strategic Infrastructure Fund

This program supports projects that sustain economic growth and enhance the quality of life of Canadians. Investments are made in cooperation with the provinces, territories, municipalities, and the private sector, and contribute to the construction, renewal and/or enhancement of public infrastructure. The Canada Strategic Infrastructure Fund leverages additional contributions from other partners by providing up to 50 percent funding for eligible projects.¹⁶

Financial Resources (In Dollars) for section 2.2.4 Program: Canada Strategic Infrastructure Fund

2013-2014 Main Estimates	2013-2014 Planned Spending	2013-2014 Total Authorities Available for Use17	2013-2014 Actual Spending (Authorities Used)	2013-2014 Difference (Actual Minus Planned)
289,102,147	289,102,147	300,714,738	197,363,859	-91,738,288

Human Resources (Full-Time Equivalents (FTE)) for section 2.2.4 Program: Canada Strategic Infrastructure Fund

2013-2014 Planned	2013-2014 Actual	2013-2014 Difference (Actual Minus Planned)
10	9	-1

Program Expected Results	Performance Indicators	Targets*d	Actual Results
Infrastructure Canada funding through the Canada Strategic Infrastructure Fund leverages investments in infrastructure by other partners	Funding leveraged from partners as a percentage of federal funding (committed)	≥100%	194%
Large-scale infrastructure is implemented that promotes a competitive economy	Number of projects completed that promote a stronger, competitive and a sustainable economy	36 projects	34 projects
	Value of projects completed that promote a stronger, competitive and a sustainable economy	$4.5 billion	$4.2 billion
Large-scale infrastructure is implemented that promotes liveable communities	Number of projects completed that promote liveable communities	13 projects	14 projects
	Value of projects completed that contributes to liveable communities	$2.8 billion	$2.6 billion
Large-scale infrastructure is implemented that promotes a cleaner environment	Number of projects completed that promote environmentally sustainable treatment of wastewater	10 projects	9 projects
	Value of projects completed that promote environmentally sustainable treatment of wastewater	$859.3 million	$640 million

[*d]Cumulative number/value of projects to be completed under the program, up to and including March 31, 2014.

Performance Analysis and Lessons Learned for section 2.2.4 Program: Canada Strategic Infrastructure Fund

In 2013-2014, the Department continued to monitor and deliver the program with provincial and territorial partners and Transport Canada for the Canada Strategic Infrastructure Fund:

• 7 projects valued at over $300 million were completed; and
• 26 projects worth $4.4 billion are still underway.

As of this fiscal period, a total of 83 projects have been funded under the program, and more than $4 billion in federal funding has been committed to these projects. Collaboration with federal delivery partners and stakeholders is effectively supporting program delivery. Nearly 70 percent of projects are completed.

The largest categories of investment under the Canada Strategic Infrastructure Fund are the following: highway and rail infrastructure, with a total federal investment of nearly $1 billion, and local transportation infrastructure, which consists primarily of public transit projects, with a total federal investment of close to $900 million.

Infrastructure Canada has largely met its targets under the program and intends to continue the monitoring and due diligence of ongoing projects to ensure their completion as part of the closeout activities of the program. A recent evaluation has recommended improvements to the project outcomes measurement in order to better report on program benefits to Canadians. Consequently, Infrastructure Canada is putting in place measures to improve project outcomes reporting for projects not yet completed.

2.2.5 Program: Municipal Rural Infrastructure Fund

Program Description: for section 2.2.5 Program: Municipal Rural Infrastructure Fund

This sunsetting program supports small-scale municipal infrastructure projects designed to promote and improve quality of life in both urban and rural communities. At least 80 percent of funding has been dedicated to municipalities with a population of less than 250,000. For most projects, the Municipal Rural Infrastructure Fund provides up to one-third federal funding for eligible projects. Its long-term commitment (since 2003) to public infrastructure helps to promote sustainable economic growth, innovation and healthy communities. Projects contribute to the construction, renewal and/or enhancement of public infrastructure to build capacity in partnership with recipients. It is delivered through a partnership with federal regional development agencies.¹⁸

Financial Resources (In Dollars) for section 2.2.5 Program: Municipal Rural Infrastructure Fund

2013-2014 Main Estimates	2013-2014 Planned Spending	2013-2014 Total Authorities Available for Use	2013-2014 Actual Spending (Authorities Used)	2013-2014 Difference (Actual Minus Planned)
78,763,106	78,763,106	78,863,733	42,891,190	-35,871,916

Human Resources (Full-Time Equivalents (FTE)) for section 2.2.5 Program: Municipal Rural Infrastructure Fund

2013-2014 Planned	2013-2014 Actual	2013-2014 Difference (Actual Minus Planned)
8	7	-1

Program Expected Results	Performance Indicators	Targets*e	Actual Results
Infrastructure Canada funding through the Municipal Rural Infrastructure Fund leverages investments in infrastructure by other partners	Funding leveraged from partners as a percentage of federal funding (committed)	≥200%	253%
Small-scale infrastructure is implemented that promotes a competitive economy for rural and urban communities	Number of projects completed that promote a stronger, competitive and a sustainable economy	21 projects	21 projects
	Value of projects completed that promote a stronger, competitive and a sustainable economy	$70 million	$72 million
Small-scale infrastructure is implemented that promotes liveable rural and urban communities	Number of projects completed that promote liveable communities	1,417 projects	1,445 projects
	Value of projects completed that promote liveable communities	$2.2 billion	$2.1 billion
Small-scale infrastructure is implemented that promotes a cleaner environment for rural and urban communities	Number of projects completed that promote a cleaner environment	403 projects	417 projects
	Value of projects completed that promote a cleaner environment	$1.1 billion	$1.1 billion

[*e]Cumulative number/value of projects to be completed under the program, up to and including March 31, 2014.

Performance Analysis and Lessons Learned for section 2.2.5 Program: Municipal Rural Infrastructure Fund

The Municipal Rural Infrastructure Fund program formally concluded on March 31, 2014 in most provinces and territories. Over the past year, Infrastructure Canada, in close collaboration with federal delivery partners, has focused on program closeout activities. A process was developed and adopted by Infrastructure Canada and the federal delivery partners in order to have consistent and effective procedures to monitor the Municipal Rural Infrastructure Fund program closeout. Partners are now actively implementing the closeout guidelines.

Infrastructure Canada has met its targets for the year. To date, over 95 percent of projects funded under the Municipal Rural Infrastructure Fund have been successfully completed, representing $922 million in federal funding.

2.2.6 Program: Border Infrastructure Fund

Program Description: for section 2.2.6 Program: Border Infrastructure Fund

This program provides funding for investments in physical infrastructure, transportation system infrastructure and improved analytical capacity at the largest surface border crossings between Canada and the United States, as well as several other crossing points in Canada. Announced in Budget 2001, the fund provides up to 50 percent federal funding to support eligible projects at Canada's border crossings. Transport Canada is the federal delivery partner for this program.¹⁹

Financial Resources (In Dollars) for section 2.2.6 Program: Border Infrastructure Fund

2013-2014 Main Estimates	2013-2014 Planned Spending	2013-2014 Total Authorities Available for Use	2013-2014 Actual Spending (Authorities Used)	2013-2014 Difference (Actual Minus Planned)
22,965,393	22,965,393	44,177,047	28,261,439	5,296,046

Human Resources (Full-Time Equivalents (FTE)) for section 2.2.6 Program: Border Infrastructure Fund

2013-2014 Planned	2013-2014 Actual	2013-2014 Difference (Actual Minus Planned)
1	1	0

Program Expected Results	Performance Indicators	Targets*f	Actual Results
Infrastructure Canada funding through the Border Infrastructure Fund leverages investments in infrastructure by other partners	Funding leveraged from partners as a percentage of federal funding (committed)	≥100%	130%
Transportation system infrastructure is implemented that improves the flow of people and goods at the border crossings	Number of transportation systems projects completed that promote improvements in the efficiency and capacity at border crossings	10 projects	9
	Value of transportation infrastructure systems projects completed that promote improvements in the efficiency and capacity of border crossings	$301 million**g	$690 million

[*f]Cumulative number/value of projects to be completed under the program, up to and including March 31, 2014.

[subnote **g]Please note that the target provided in the 2013-2014 Report on Plans and Priorities was based on the federal portion of the total value of projects expected to be completed, rather than the total value — this figure should have been $610 million.

Performance Analysis and Lessons Learned for section 2.3.6 Program: Border Infrastructure Fund

As of March 31, 2014, a total of nine projects have been completed under the Border Infrastructure Fund, generating over $690 million in infrastructure investments for transportation systems that promote improvements in the efficiency and capacity at border crossings. Since the inception of the program, the federal government has announced support for 11 border improvement infrastructure projects, with a combined total investment of $1.2 billion.

In 2014-2015, Transport Canada will continue to support the implementation of the final two projects under the Border Infrastructure Fund on behalf of Infrastructure Canada, with a total eligible cost of $515.2 million. A recent program evaluation has recommended to improve outcomes measurement for the program in order to better report on the program benefits to Canadians. Infrastructure Canada is putting in place measures to improve project outcomes reporting for projects not yet completed.

2.2.7 Program: Economic Analysis and Research

Program Description: for section 2.2.7 Program: Economic Analysis and Research

This program promotes the building, connecting and sharing of applied knowledge and research on infrastructure issues, policies and programs.²⁰

Financial Resources (In Dollars) for section 2.3.7 Program: Economic Analysis and Research

2013-2014 Main Estimates	2013-2014 Planned Spending	2013-2014 Total Authorities Available for Use	2013-2014 Actual Spending (Authorities Used)	2013-2014 Difference (Actual Minus Planned)
021	021	5,000	5,000	5,000

Human Resources (Full-Time Equivalents (FTE)) for section 2.2.7 Program: Economic Analysis and Research

2013-2014 Planned	2013-2014 Actual	2013-2014 Difference (Actual Minus Planned)
0	0	0

Performance Analysis and Lessons Learned for section 2.2.7 Program: Economic Analysis and Research

In 2013-2014, through the Building Canada Fund-National Infrastructure Knowledge Component, Infrastructure Canada provided $5,000 to support the Northern Connections project. This project examined internet connectivity gaps in Canada's North. Other federal contributors to the project include Industry Canada, the Canadian Northern Economic Development Agency, and Aboriginal Affairs and Northern Development Canada.

2.3 Program: Internal Services

Program Description: for section 2.3 Program: Internal Services

Internal Services are groups of related activities and resources that are carried out 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 (In Dollars) for section 2.3 Program: Internal Services

2013-2014 Main Estimates	2013-2014 Planned Spending	2013-2014 Total Authorities Available for Use	2013-2014 Actual Spending (Authorities Used)22	2013-2014 Difference (Actual Minus Planned)
35,430,534	35,430,534	38,347,182	35,404,150	-26,384

Human Resources (Full-Time Equivalents (FTE)) for section 2.3 Program: Internal Services

2013-2014 Planned	2013-2014 Actual	2013-2014 Difference (Actual Minus Planned)
231	192	-39

Results Achieved for section 2.3 Program: Internal Services

The Results Achieved from the Planning Highlights of 2013-2014 for Internal Services focus on eight key activities, described below, which help strengthen the services that support the Department in its mandate.

Governance and Management Support

Management and Oversight Services for section 2.3 Program: Internal Services

Internal Audit and Evaluation:

During 2013-2014, the Audit and Evaluation Branch:

• Completed the following audits and reviews based on the approved risk-based audit plan and reported the results to the external Departmental Audit Committee:
  • Audit of the Financial Management Control Framework;
  • Review of Infrastructure Canada's Information Management – Data Quality Initiative; and
  • Audit of Values and Ethics.
• Completed the evaluation of the Canada Strategic Infrastructure Fund and the Border Infrastructure Fund in accordance with the approved evaluation plan. The final report will be reported to the Departmental Evaluation Committee in early 2014-2015.
• Established a collaborative approach for the development of new Performance Measurement Strategies in support of future evaluations for programs such as the Gas Tax Fund and the New Building Canada Fund.
• Reviewed the implementation of outstanding audit and evaluation recommendations, and reported the results to the external Departmental Audit Committee and the Departmental Evaluation Committee respectively.

Risk Management:

During 2013-2014, the Department:

• Monitored and reported on the implementation and effectiveness of the risk responses; and
• Reviewed and updated the Department's Corporate Risk Profile through its established risk management approach including an environmental scan, risk identification and assessment, risk responses and risk monitoring.

Communications Services for section 2.3 Program: Internal Services

During 2013-2014, the Department:

• Promoted the benefits of the new $53-billion New Building Canada Plan announced in Budget 2013;
• Increased awareness of the federal government's significant infrastructure investments to Canadians, in particular the $2-billion annual federal Gas Tax Fund;
• Ensured that key information was readily available to local and national media through announcements and other public affairs activities;
• Improved and updated the public website with information for Canadians and stakeholders;
• Proactively outreached to media and key stakeholder organizations through conferences, key ministerial engagements and other means; and
• Provided effective internal communications support to improve organizational effectiveness, employee awareness and engagement.

Resource Management Services for section 2.3 Program: Internal Services

Information Management/Information Technology for section 2.3 Program: Internal Services

During 2013-2014, the Department:

• Continued the evergreening of the Shared Information Management System for Infrastructure to prevent rust-out. The migration to the Shared Services Canada data centre will see a refresh of the hardware component of the technical architecture.
• Continued to work on the Program Information Management System (PIMS) project to improve the management of major infrastructure program information, and support the new infrastructure programs. (The first major enhancement was ready on April 1, 2014 to support the launch of the programs under the New Building Canada Fund. The project will be completed in 2014-2015).
• Continued to support the migration of the Shared Information Management System for Infrastructure data hosting to Shared Services Canada. The Department made progress on the hosting and service requirements definition and continued detailed migration planning with Shared Services Canada. (The project will be completed in 2014-2015).
• Took measures to support the Treasury Board Secretariat Directive on Recordkeeping. This project is putting in place the tools and processes necessary to ensure that information of business value is managed in accordance with updated policy requirements and best practices. (This project is to be concluded by the Treasury Board Secretariat's deadline of March 31, 2015).
• IM/IT continues to pursue operational savings by maintaining its Information Management/Information Technology contract budget at reduced levels and building internal capacity for application services, while continuing to engage the private sector in a cost-effective manner.

Financial Management Services for section 2.3 Program: Internal Services

During 2013-2014, the Department continued to strengthen the overall effectiveness of financial management by:

• Working with central agencies to confirm operating funding for 2014-2015 and beyond. This was achieved by designing the program parameters for the new permanent Gas Tax Fund and the New Building Canada Fund, as announced in Budget2013, and determining the operating resources needed to implement existing and new programs for the next 10 years.
• Completing the documentation and the final stages of the design effectiveness of entity-level controls, information technology general controls and business process controls with the expectation of completing the full assessment by June 2014.
• Refining the departmental Corporate Costing Model to support the determination of ongoing departmental operating requirements for 2014-2015 and beyond.

Human Resource Management: for section 2.3 Program: Internal Services

During 2013-2014, the Department:

• Delivered on its Integrated Business and Human Resources Plan (IBHRP) and people management strategies to support a flexible and adaptable workforce, employee development and growth, and employee engagement;
• Continued to promote and foster a positive, healthy and inclusive workplace by providing employees with learning opportunities and recognition for their accomplishments;
• Ensured that recruitment reflected Canada's diversity, by clearly identifying the need for diversity in recruitment efforts, and identifying employment equity as an organizational requirement for appointment processes;
• Ensured the Department's culture continued to embrace diversity and a bilingual work environment by investing in language training for employees, and actively encouraging all employees to work in the language of their choice and to act as role models for each other;
• Continued to promote and communicate a departmental Code of Conduct to support Values and Ethics initiatives and guide employees in maintaining and enhancing public confidence in the integrity of the public service;
• Continued to address the priorities of the Clerk by engaging in the dialogue about the future of the public service through the Blueprint 2020 initiative; and
• Continued to promote a strong learning culture, to better coordinate and communicate learning activities and resources, and to provide targeted, relevant and innovative learning and development opportunities.

Footnotes

^[11] Legislation enacting permanent funding for the Gas Tax Fund received Royal Assent on December 15, 2011. Further, as announced in Economic Action Plan 2013, the renewed Gas Tax Fund is now indexed at 2 percent per year, and will give municipalities greater flexibility to spend federal funding on a broader range of infrastructure priorities.

^[12] As a result of the 2010 Strategic Review process, $5.4 million in unallocated funds from the Building Canada Fund-Communities Component was identified for reallocation to other Government of Canada priorities. No announced infrastructure projects were cancelled, or otherwise affected as a result of these funding reallocations.

^[13] As a result of the 2010 Strategic Review process, $4.9 million in unallocated funds from the Building Canada Fund-Major Infrastructure Component was identified for reallocation to other Government of Canada priorities. No announced infrastructure projects were cancelled, or otherwise affected as a result of these funding reallocations. Effective February 13, 2014, the new bridge for the St. Lawrence corridor project, which was under Transport Canada, was transferred under the Minister of Infrastructure, Communities and Intergovernmental Affairs, and Minister of the Economic Development Agency of Canada for the Regions of Quebec. As this program was not part of Infrastructure Canada's Program Alignment Architecture (PAA) structure in 2013-2014, it is being reported under BCF–MIC. Note that while BCF–MIC is a contribution program, the new bridge for the St. Lawrence corridor project is a major capital project, and its spending has no relation to contributions or transfer payment programs.

^[14] The BCF–MIC's Actual Spending in 2013-2014 also includes expenses for the new bridge for the St. Lawrence corridor project (for a total of $8,246,357), for the period of February 13 to March 31, 2014.

^[15] As part of the Government of Canada's commitment to address priority initiatives within existing funding envelopes, the Government of Canada made a policy decision to transfer $169.98 million from the Green Infrastructure Fund to other federal departments to support high-priority initiatives. Detailed information on the transfers and amounts can be found in the Supplementary Information Tables of the 2013-2014 Departmental Performance Report.

In addition, as part of the 2010 Strategic Review process, $45 million in unallocated funds from the Green infrastructure Fund were identified for reallocation to other Government of Canada priorities. No announced infrastructure projects were cancelled, or otherwise affected as a result of these reallocations. As well, in 2012-2013, $58.7 million in unallocated funds from the Green Infrastructure Fund was identified as a source of funds and approved for the operating requirements of the Department for fiscal year 2012-2013.

^[16] Of the $4.3 billion originally allocated to the Canada Strategic Infrastructure Fund (CSIF), $50 million was transferred to the Parks Canada Agency to support a high-priority infrastructure project. In addition, $12.8 million was removed from the CSIF through various government-wide reduction and reallocation exercises prior to the 2010 Strategic Review process.

^[17] In 2013-2014, the Inuvik to Tuktoyaktuk Highway program, which was approved in November 2013, is being reported under the Canada Strategic Infrastructure Fund (CSIF) in the Department's 2013-2014 Program Alignment Architecture (PAA) structure. However, there were no expenses to record under the CSIF in 2013-2014. More information on the Inuvik to Tuktoyaktuk Highway program can be found in the Details of Transfer Payment Programs of the Supplementary Information Tables of this report.

^[18] Under the 2010 Strategic Review process, $23 million in unallocated funds from the Municipal Rural Infrastructure Fund was identified for reallocation to other Government of Canada priorities. No infrastructure projects were cancelled, or otherwise affected as a result of these reallocations.

^[19] Of the $600 million originally allocated to the BIF, approximately $18 million was transferred to the Canada Border Services Agency for border projects. As part of the 2010 Strategic Review process, $10.4 million in unallocated funds from the Border Infrastructure Fund was identified for reallocation to other Government of Canada priorities. No projects were cancelled, or otherwise affected as a result of these reallocations.

^[20] As part of the 2010 Strategic Review process, more than $35.7 million in unallocated funds from the Economic Analysis and Research program was identified for reallocation to other Government of Canada priorities.

^[21] At the time of production of the 2013-2014 Report on Plans and Priorities, there were no planned activities under the Economic Analysis and Research program; as such, no funds were included in the 2013-2014 Main Estimates.

^[22] Infrastructure Canada's Internal Services' Actual Spending in 2013-2014 does not include expenses for the new bridge for the St. Lawrence corridor project, as Transport Canada incurred all internal services costs for 2013-2014.