2011-12 Part III - Departmental Performance Reports (DPR)

2011-12
Departmental Performance Report

Canadian Heritage

The original version was signed by
The Honourable James Moore, P.C., M.P.
Minister of Canadian Heritage and Official Languages

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Table of Contents

Minister's Message

Section I: Organizational Overview

• Raison d'être
• Responsibilities
• Strategic Outcomes and Program Activity Architecture
• Organizational Priorities
• Risk Analysis
• Summary of Performance
• Contribution to the Federal Sustainable Development Strategy
• Expenditure Profile
• Estimates by Vote

Section II: Analysis of Program Activities by Strategic Outcome

• Strategic Outcome 1
  • Program Activity 1: Arts
  • Program Activity 2: Cultural Industries
  • Program Activity 3: Heritage
• Strategic Outcome 2
  • Program Activity 4: Promotion of and Attachment to Canada
  • Program Activity 5: Engagement and Community Participation
  • Program Activity 6: Official Languages
• Strategic Outcome 3
  • Program Activity 7: Sport
• Internal Services

Section III: Supplementary Information

• Financial Highlights
• Financial Highlights Charts and Graphs
• Financial Statements
• List of Supplementary Information Tables

Section IV: Other Items of Interest

• Organizational Contact Information
• Additional Information

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Minister's Message

I am pleased to present the Department of Canadian Heritage's Departmental Performance Report for 2011-12 to Parliament and Canadians.

This report outlines the wide range of activities undertaken by Canadian Heritage and illustrates the vital role it plays in the cultural, civic and economic life of Canadians. Through the Department, the Government of Canada invests in arts and culture, historic commemorations and celebrations, community participation and engagement, official languages and sport-all essential components of our proud heritage. These investments provide people from coast to coast to coast with the opportunity to learn more about our culture, celebrate our history and heritage, and participate in building dynamic, creative communities.

Economic recovery continues to be a priority for the Government, and strong and healthy arts, culture and heritage sectors are essential to keeping our economy on track. In addition to ongoing support for these sectors, we continue the important work of implementing the Roadmap for Canada's Linguistic Duality, supporting and encouraging participation and excellence in sports, and inspiring young Canadians to become active citizens. As well, the Government re-introduced The Copyright Modernization Act, which will play a critical role in protecting and creating jobs in Canada's digital economy, and renewed the Canadian Sport Policy that sets a direction for all governments, institutions and organizations to realize the positive impacts of sport on individuals, communities and society.

In 2011, significant events supported by Canadian Heritage include a Royal Tour of Canada by their Royal Highnesses the Duke and Duchess of Cambridge; the launch of activities to mark the Diamond Jubilee, the 60th Anniversary of Her Majesty Queen Elizabeth II's accession to the Throne as Queen of Canada; and the launch of activities to commemorate the 200th Anniversary of the War of 1812, which laid the foundation for Confederation and the cornerstones of many of our political institutions.

The Performance Report for 2011-12 also details the Department's ongoing efforts to exercise sound financial management. It continues to modernize its operations, improve efficiencies and find innovative solutions to financial challenges in order to better serve Canadians.

As Minister of Canadian Heritage and Official Languages, I am pleased to submit this report outlining the Department of Canadian Heritage's achievements in 2011-12.

Section I: Organizational Overview

Raison d'être

The Department of Canadian Heritage (the Department) and Canada's major national cultural institutions play a vital role in the cultural, civic and economic life of Canadians. We work together to support culture, arts, heritage, official languages, citizenship and participation, Aboriginal, youth and sport initiatives.

Responsibilities

The Department of Canadian Heritage is responsible for policies and the delivery of programs that help all Canadians participate in their shared cultural and civic life. The Department's legislative mandate is set out in the Department of Canadian Heritage Act and in other statutes for which the Minister of Canadian Heritage and Official Languages is responsible, representing a wide-ranging list of responsibilities for the Minister under the heading of "Canadian identity and values, cultural development, and heritage."

The Department oversees the administration of numerous laws, notably: the Broadcasting Act, the Copyright Act and the Investment Canada Act (the latter two acts are shared with Industry Canada), the Official Languages Act (Part VII), the Museums Act, the Cultural Property Export and Import Act, the Status of the Artist Act, and the Physical Activity and Sport Act (shared with Health Canada).

The Department of Canadian Heritage is specifically responsible for formulating and implementing cultural policies related to copyright, foreign investment and broadcasting, as well as policies related to arts, culture, heritage, official languages, sport, state ceremonial and protocol, and Canadian symbols. The Department's main program activities are the funding of community and third-party organizations to promote the benefits of culture, identity, and sport for Canadians.

The Minister of Canadian Heritage and Official Languages is accountable to Parliament for the Department and the 19 organizations that make up the Canadian Heritage Portfolio.

Strategic Outcomes and Program Activity Architecture

2011-12 Program Activity Architecture

[2011-12 Program Activity Architecture]

Organizational Priorities

The Department of Canadian Heritage identified nine priorities for 2011-12, listed below, in areas where it expected to make significant progress during the fiscal year. A summary of progress against these priorities follows.

Priorities

Summary of Progress Against Priorities

Priority	Type1	Strategic Outcome
Ensure programs, policies and legislative frameworks respond to the evolving environment in arts, culture and heritage.	Ongoing	Canadian artistic expressions and cultural content are created and accessible at home and abroad

In 2011-12, one of Canadian Heritage's priorities has been to ensure that programs, policies and legislative frameworks support cultural industries, artists and arts organizations to adapt and flourish in the rapidly-evolving digital economy.

In September 2011, the Government reintroduced the Copyright Modernization Act, Bill C-11, designed to ensure that the Copyright Act is modern, responsive to changes influenced by digital technologies, and positions Canada as a leader in the global digital economy. The Department provided policy advice and analysis to the Minister of Canadian Heritage and Official Languages as co-lead on the legislation, and worked in partnership with Industry Canada.

The Canada Media Fund invested in the creation of Canadian screen-based media content, advancing its goal of producing high quality Canadian television and digital media content choices for consumption by Canadians anytime, anywhere, on the platform or device of their choice.

The Canada Periodical Fund (CPF) ensures Canadians have access to diverse Canadian content in print magazines, print non-daily newspapers and digital periodicals. Budget 2011 secured $15 million in permanent funding for the CPF, thereby ensuring stable long-term funding for an industry that is undergoing major changes as it adapts to digital technologies. The $15 million is administered through the Aid to Publishers component of the CPF. Publishers now have the flexibility to use the funds on a wide range of activities, such as content creation, production, distribution, website development, and expenses related to digital publishing. The new Aid to Publishers funding formula was also introduced, together with a three-year transition plan to help publishers adjust to the change.

In addition to supporting the production of paper books, the Canada Book Fund (CBF) supports the use of digital technologies, encourages the adoption of new business models and the production of e-books. It also provides publishers with ongoing financial stability that allows them to invest in digital technologies and compete in a global market.

TV5MONDE and TV5 Québec Canada continued to offer diversified francophone audiovisual programming to Francophones and Francophiles around the world through traditional television broadcasting as well as other platforms. In addition to reaching more than 220 million households worldwide, including 7 million visits in Canada, visits to the networks' website and its social media presence increased.

Training institutions funded by the Canada Arts Training Fund are embracing new technology to enhance the training they provide for artistic careers in a digital world. For example, the National Ballet School of Canada has undertaken a project entitled "Sharing Dance", an interactive website intended to encourage current and future generations to pursue dance studies.

Summary of Progress Against Priorities

Priority	Type	Strategic Outcome
Support the preservation, presentation and access to Canada's rich and multifaceted heritage.	Ongoing	Canadian artistic expressions and cultural content are created and accessible at home and abroad

In 2011-12, the Canada Cultural Spaces Fund supported 98 infrastructure improvement projects across the country, 42 of which directly enhanced heritage spaces in Canadian communities. Funded projects included improvements to exhibition facilities at the Musée du Haut-Richelieu, Saint-Jean-sur-Richelieu, Quebec, that increased public access to the museum's permanent collection of photographs and artefacts related to local history.

The Strategic Initiatives component of the Canada Cultural Investment Fund supported collaborative projects that advanced the preservation and presentation of Canadian history and artefacts.  Fifty percent of the projects funded by this component in 2011-12 supported the work of the heritage sector.  One such initiative provided 51 heritage organizations in the Ottawa region with tools, training, and resources to develop best practices in the management of heritage collections.

The Canada Travelling Exhibitions Indemnification Program developed a strategy for the allocation of available contingent liability among new applicants and options to enhance the effectiveness of assuming financial liability for loss or damage to objects in major travel exhibitions . Budget 2012 announced that liability limits would be increased from $1.5 billion to $3 billion.

In addition to contributing to the development of 68 online museum exhibits that will be accessible to Canadians through the Virtual Museum of Canada portal, the Canadian Heritage Information Network (CHIN) added 17 new resources to its Professional Exchange website for heritage professionals and volunteers. Taking the form of case studies, tip sheets and interviews, these resources covered subjects such as social media, search engine optimization, writing for the Web, intellectual property, video, 3D technology and augmented reality. Heritage workers undertook nearly 750,000 visits to the online professional resources posted in the Professional Exchange website and CHIN's corporate website.

Summary of Progress Against Priorities

Priority	Type	Strategic Outcome
Ensure programs, policies and legislative frameworks reinforce Canadians' sense of identity through knowledge and experiences that build shared values.	Ongoing	Canadians share, express and appreciate their Canadian identity

The Department supports commemorations of significant people, places and events to raise awareness of Canadian history and foster a strong sense of Canadian identity. In 2011, the Department launched the commemoration of the 200th Anniversary of the War of 1812, a significant chapter in our nation's history and an important milestone in the lead-up to the 150th Anniversary of Confederation in 2017.

The Department is responsible for organizing and delivering events of state, including state funerals, on behalf of the Government of Canada. In August 2011, the Department organized and delivered a state funeral for the leader of Her Majesty's Loyal Opposition, the Honourable Jack Layton in consultation with his family. A lying-in-state ceremony was held on Parliament Hill and the funeral was held in Toronto giving Canadians the opportunity to recognize Mr. Layton's contribution to public life.

In line with the 2011 Speech from the Throne that states: "Canadians... cherish our shared history. Anniversaries are an important part of how a society marks its collective progress and defines its goals for the future," the Department launched activities to mark the Diamond Jubilee.

Their Royal Highnesses, the Duke and Duchess of Cambridge, accepted the Government of Canada's invitation for a Royal Tour of Canada from June 30 to July 8, 2011, that was organized by the Department. Their Royal Highnesses travelled to the National Capital Region, Quebec, Prince Edward Island, the Northwest Territories and Alberta. The Tour received significant media coverage internationally and allowed Canadians to gain a greater understanding of the country's history and institutions.

The Department provided Canadians with opportunities to participate in national and community-based celebrations as a way of encouraging community engagement and attachment to Canada. The Department supported activities across Canada that celebrated National Aboriginal Day, Saint-Jean-Baptiste Day, Canadian Multiculturalism Day and Canada Day. In 2011, over 8 million Canadians participated in more than 2,700 community events celebrating one or more of these national days.

The Department also presented the Noon Show on Parliament Hill on Canada Day, in collaboration with the National Capital Commission. This highly-attended event showcased Canadian artists that represented Canada's official languages and geographic diversity. Their Royal Highnesses, the Duke and Duchess of Cambridge joined Canadians in celebrating Canada's 144th birthday. The 2011 Canada Day festivities on Parliament Hill drew record-breaking crowds of more than 300,000 people and the event was broadcast live on television across Canada.

The Canadian Studies Program provided funding to key history organizations and post-secondary educational institutions for the production of educational resources and activities that enhance Canadians' knowledge about history, civic education and public policy. The Building Communities Through Arts and Heritage Program supported close to 900 projects that include activities, events and festivals that engaged citizens in their local communities through the performing and visual arts in the expression, celebration and preservation of local historical heritage. The Aboriginal Peoples' Program supported more than 300 Aboriginal communities and organizations to strengthen their cultural identity, encourage their full participation in Canadian life, foster responsible citizenship and connections with other Canadians, and preserve and revitalize Aboriginal cultures and languages as living elements of Canadian society.

Summary of Progress Against Priorities

Priority	Type	Strategic Outcome
Enable Canadians to benefit from linguistic duality.	Ongoing	Canadians share, express and appreciate their Canadian identity

Through partnerships and agreements, the Department helped foster the vitality of Canada’s official language minority communities (OLMCs) and enabled them to participate fully in all aspects of Canadian life. As a result of departmental programs, a greater number of Canadians have a better understanding and appreciation of the benefits of official languages, respect the rights of OLMCs, and foster their participation in Canadian society.

The Roadmap for Canada's Linguistic Duality 2008-2013: Acting for the Future has made it possible for OLMCs to strengthen access to services in their preferred language and to further promote the advantages of linguistic duality.  

The Official Languages Support Programs Branch has implemented two programs that support this priority; Development of Official-Language Communities and Enhancement of Official Languages. An evaluation of these programs is currently underway.

The outcomes of the Development of Official-Language Communities were largely achieved through 13 federal-provincial/territorial education agreements that supported teaching in the minority official language and the learning of a second language, as well as 13 federal-provincial/territorial agreements that enable the provinces and territories to provide service in the minority official language, particularly in the areas of justice, health, culture, economic development and municipal services.

In addition, the programs for promoting linguistic duality supported more than 400 national, provincial and local community organizations across the country that directly support the development and vitality of OLMCs, which include nearly 2 million Canadians.

Summary of Progress Against Priorities

Priority	Type	Strategic Outcome
Strengthen the Canadian sport system through strategic investments and enhanced collaboration with provinces and territories.	Ongoing	Canadians participate and excel in sport

In 2011-12, 444 athletes were identified as being at international-level performance standards. Approximately 8 million Canadians participated in sport, as members of National Sport Organizations and through special participation projects funded by Canadian Heritage, consistent with levels from previous years. Through increased funding since 2010-11 to the Sport Support Program, Canadian Heritage has further enhanced its support for sport in Canada. The expected level of performance against standards developed by Sport Canada to assess sport organizations' delivery of technically and ethically sound programs and services was achieved by 57% of funded National Sport Organizations, 93% of Multi-sport Service Organizations and 100% of Canadian Sport Centres. This compares favourably with the 51%, 67%, and 86%, respectively, that met the expected level of performance in 2010-11.

Collaboration and strategic investment with provinces and territories through Sport Participation Bilateral Agreements provided support to projects that improve sport participation opportunities for children and youth. The 22 bilateral agreements in place in 2011-12 supported projects to increase participation from targeted populations, such as persons with a disability and Aboriginal peoples, in support of Sport Canada's Policies on Sport for Persons with a Disability and on Aboriginal Peoples Participation in Sport.

In addition, the renewal of the Canadian Sport Policy has provided an exceptional opportunity to work collaboratively with provinces and territories. In 2011-12, federal-provincial-territorial governments, in collaboration with leaders from the sport sector, led a comprehensive public engagement process to inform the development of a renewed policy. The renewed policy will build on the benefits of the current collaborative approach to sport development in Canada.

Moreover, it will appropriately reflect the interest and concerns of 14 government jurisdictions, the Canadian sport sector, and the other organizations and sectors that influence and derive benefit from sport in Canada.

Summary of Progress Against Priorities

Priority	Type	Strategic Outcome
Public Service Renewal.	Ongoing	All strategic outcomes

In 2011-12, Canadian Heritage submitted a Progress Report on its Public Service Renewal Action Plan to the Clerk of the Privy Council, responding to his three priorities: Engaging Employees in the Excellence Agenda; Renewing the Workforce; and Renewing the Workplace. Our renewal work also supported the Department's Human Resources priority to place employees affected by the department-wide Transformation Initiative (TI).

Engaging Employees in the Excellence Agenda included four activities: communicating the Renewal Action Plan and Progress Report on the departmental intranet site, developing a communications strategy for the Deputy Minister and Associate to share decisions and information on the TI, and creating opportunities for the Deputy Minister and Associate to connect with employees via walkabouts within the Department and in the regions, meetings with small groups of employees, town hall meetings, all-staff meetings, and publishing a renewed presence on the intranet site.  

Renewing the Workforce included five activities directed at the development of our employees and team support; four activities directed at improving the leadership skills of our management; and three activities to support our equity groups and to promote official languages. Highlights include: offering tools and workshops related to dealing with change and the job search during the TI; renewing the Workplace includes two activities based on values and wellness, four activities to promote innovation and foster productivity, and one activity to promote a culture of recognition. This includes the creation of the Office of Values and Ethics which offers individual and group coaching and learning sessions on topics such as well-being and management development.

Summary of Progress Against Priorities

Priority	Type	Strategic Outcome
Grants and Contributions Modernization.	Ongoing	All strategic outcomes

Through the Grants and Contributions Modernization Initiative, Canadian Heritage has established a new program delivery framework that will enable PCH programs to standardize, simplify, streamline and improve services for the Department's Grants and Contributions clients.

In 2011-12, a new risk-based approach to assessing applications was piloted for the following programs: Canada Arts Presentation Fund; the Community Life Component under the Development of Official-Languages Communities Program in the Ontario and Quebec Regions, and Celebrate Canada Program.

Summary of Progress Against Priorities

Priority	Type	Strategic Outcome
Integration of financial, human resources and program performance information.	Ongoing	All strategic outcomes

Following the creation of the resource management directorates (RMDs) in 2010-11 the Department continued to adjust to a new model of operation. The Department has used the RMDs to standardize its processes and tools and to integrate financial, procurement, human resources and administrative services to bring about measurable efficiencies.  

In 2011-12, the data acquisition strategy was supported through departmental consultation and an inclusive Research Plan was developed to improve efficiencies and increase financial savings.

Throughout the Department, program results and performance measures continue to be reviewed and improved, resulting in better overall performance measurement. The Grants and Contribution Modernization Initiative is also developing new ways of collecting performance information for programs.

Summary of Progress Against Priorities

Priority	Type	Strategic Outcome
Maximization of the effectiveness and efficiency of internal services.	Ongoing	All strategic outcomes

The Internal Services Review was launched in 2010-11 as part of the department-wide Transformation Initiative to streamline, standardize and better align internal services with the Department's resource levels. In 2011-12, the following steps were completed:

• Centralization of the delivery of financial, human resources and administrative services in headquarters in order to standardize services, achieve cost-savings and gain efficiencies, while ensuring that accountability and delegated authorities are appropriately supported;
• Transfer of responsibility for regional office  financial transaction processing to the Financial Management Branch in headquarters in order to consolidate work, achieve cost-savings, and increase consistency;
• Simplification and re-alignment of several key business processes (i.e. planning and reporting); and
• Amalgamation of the international and intergovernmental functions in order to ensure a better coordination and strategic coherence department-wide.

Risk Analysis

The Department of Canadian Heritage continues to adapt to social, economic and technological trends in order to operate within a complex and interconnected environment that provides both opportunities and challenges. This environment is influenced by external and internal factors that are identified through mechanisms, such as environmental scanning, and reflected in the operation of the Department's programs and services.

During this time of change, the Department continued with its Transformation Initiative as it works towards restoring its financial stability. The Department is addressing these challenges, while continuing to provide effective and meaningful programs and services for Canadians. As part of its business process, the Department identified key risks and developed corresponding response strategies in its 2011-12 Corporate Risk Profile. These strategies also correspond to the Department's priorities and are supported by the analysis and performance summaries outlined for each program activity in Section II of this Report.

Strategic (External) Risks

The Department took the opportunity to improve its ability to address its current financial challenges. In fact, Canadian Heritage continued with its Transformation Initiative while also developing a long term-financial strategy that will be implemented by 2014-15. Several initiatives more specific to the Internal Services Review, the Resource Allocation Strategy and a departmental reorganization which were undertaken as part of the Department's Transformation Initiative have already addressed much of the Department's structural deficit. This has been accomplished without significantly impacting any programs or services offered to Canadians. In light of this progress, adjustments will be made to the risk responses in the 2012-15 Corporate Risk Profile. Work was also undertaken to strengthen the business planning and budgeting processes within the organization by rethinking and prioritizing what we do to streamline some activities in order to improve efficiency.  

The Department continues to collaborate with stakeholders and the public to support creativity, innovation and access to cultural works, but the ability to fully anticipate changes in Canadian society, in order to respond to the evolving needs of Canadians will always be a challenge. In fact, the popularity of social media and digital technologies has changed the way that Canadians create and access cultural content, and in response, the Department has invested in programs, policies and legislative frameworks that support cultural industries, artists and arts organizations to adapt and flourish in the digital economy. The Department has also continued its review of Canadian feature film policies to better reflect digital opportunities for film production, distribution and consumption and, through programs such as the Canada Media Fund, supported the use of different platforms for creating and disseminating cultural content.

Operational (Internal) Risks

Managing during this time of transformation has been a major focus for the Department. Risks related to planned department reductions as part of the Transformation Initiative and the possible misalignment of deliverables and workload with forecasted resources, priorities, service standards and stakeholder expectations were identified through the integrated business planning process. In response, the Department realigned human resources to better address the demands of shifting workload and priorities. Five Resource Management Directorates were created to integrate financial, human resources and administration services, and to standardize the organization's processes and tools.

Another risk related to the Department's change management is the possibility that it may not be positioned to maintain and expand its capacity to establish a focused mid to long-term strategic policy agenda that fully responds to the Government's strategic direction, priorities and stakeholder's needs. In response, the Department continued to maintain and expand dialogue with its stakeholders and continues to develop effective consultation strategies during policy development processes. Canadian Heritage is committed to considering the views of Canadians and providing them with opportunities to participate in the development of policies and programs, as  with the Roadmap to Canada's Linguistic Duality 2008-2013:  Acting for the Future, where the Department maintains an open and sustained dialogue with stakeholders, including the provinces and territories, and as with the renewal of the Canadian Sport Policy where the Department led in-depth and extensive consultations across Canada.

The Department also ensured that resources were devoted to the highest priority items to better address the shifting workload demands, and manage more complex policies and events.  Strategic and operational planning was reoriented to focus the allocation of resources and staff on the departmental priorities outlined in the Report on Plans and Priorities. The implementation of the recommendations of the Internal Services Review will be completed by the end of the next fiscal year resulting in a resource allocation strategy that is better aligned with departmental priorities.

As part of the management priority to modernize the management and delivery of grants and contributions programs, several programs have piloted a streamlined, risk-based approach to assessing applications. Since fall 2011, the Canada Arts Presentation Fund, the Community Life Component of the Development of Official-Languages Communities Program in the Ontario and Quebec Regions, and the Celebrate Canada Program have all been using the new approach.

One key success factor for Canadian Heritage is the high level of employee engagement, as evidenced by a positive retention rate of highly mobile groups and by the employees' high level of job and organization satisfaction, as per in the Public Service Employee Survey results. The risk that staff well-being, engagement, performance and organizational stability might suffer during this time of restraint was effectively managed through close monitoring and strong and open communication. by senior management. This was accomplished by:  monitoring the performance, engagement and morale of our workforce; developing and implementing a three-year resourcing strategy; developing and implementing a public service Renewal Action Plan; and ensuring continuous communications with employees. These responses worked very well and, indeed, the Department's approach for placement of employees has been publicly recognized by central agencies as a work force adjustment best practice. The Department has experienced successive operational and budget reduction challenges that have impacted employees. During this time, the Department placed 96% of these employees.

Another risk of managing through change that was identified was that the Department may not provide timely policy and performance metrics that tell a strong performance story of value creation, tangible outputs and benefits to Canadians. This risk did not materialize but to mitigate it, the Department did consult on and adopt a consolidated departmental strategy for acquiring data from Statistics Canada. This action improved the organization's access to accurate and timely information that will further aid the Department in achieving its expected results.

Summary of Performance

2011-12 Financial Resources ($ millions)

Planned Spending	Total Authorities*	Actual Spending*
* Excludes amount deemed appropriated to Shared Services Canada, if applicable.
1,186.6	1,343.3	1,308.5

The variance between the Total Authorities and the Planned Spending is due to funding received during the year for programs such as the Canada Media Fund and the Canada Periodical Fund which were not included in the Report on Plans and Priorities' Planned Spending. Detailed explanations are provided in the appropriate Program Activity sections.

2011-12 Human Resources (full-time equivalents)

Planned	Actual	Difference
1,752.8	1,951.3	-198.5

The Planned FTEs are estimated using a calculation based upon salary appropriation divided by an average salary. This methodology involves several assumptions including constant average salary throughout the year. This affects the comparability between the Planned FTE values and the Actual values determined by actual usage.

Summary of Performance Tables

Progress Toward Strategic Outcome 1

Strategic Outcome 1: Canadian artistic expressions and cultural content are created and accessible at home and abroad.

Performance Indicators	2011-12 Performance
Range and volume of Canadian cultural content and artistic works created and produced, by category.	A range of artistic and cultural works was created in 2011-12. There was an increase in Canadian television production; music released by Canadian artists; and the number of community newspapers printed.
Range of Canadian cultural and heritage content and artistic works accessible domestically and internationally, by category.	Access to a range of Canadian artistic expressions and cultural content continued to increase in 2011-12.  There was an increase in the viewing share of Canadian television; in domestic and international sales of Canadian authors and publishers; and in the share of Canadian albums sales.

Performance Summary, Excluding Internal Services

Program Activity	2010-11 Actual Spending	2011-12 ($ millions)				Alignment to Government of Canada Outcomes
		Main Estimates	Planned Spending	Total Authorities*	Actual Spending*
* Excludes amount deemed appropriated to Shared Services Canada, if applicable.
Program Activity 1: Arts	114.6	121.3	121.3	121.5	110.4	Vibrant Canadian culture and heritage
Program Activity 2: Cultural Industries	303.5	203.4	203.4	318.7	311.3	Vibrant Canadian culture and heritage
Program Activity 3: Heritage	41.4	36.2	36.2	44.1	40.1	Vibrant Canadian culture and heritage
Total	459.5	360.9	360.9	484.4	461.8

Progress Toward Strategic Outcome 2

Strategic Outcome 2: Canadians share, express and appreciate their Canadian identity.

Performance Indicators	2011-12 Performance
Level of appreciation by Canadians of their shared values.	The Department fostered an understanding and appreciation of Canada's shared values by delivering events and activities that commemorated Canada's history and that celebrated Canada's identity, such as the Royal Tour and the commemoration of the 200th Anniversary of the War of 1812.
Level of active participation by Canadians in their society.	The Department supported celebrations that provided opportunities for Canadians to come together and participate in their communities. Approximately 8 million people took part in the Celebrate Canada period between June 21 and July 1, 2011.

Performance Summary, Excluding Internal Services

Program Activity	2010-11 Actual Spending	2011-12 ($ millions)				Alignment to Government of Canada Outcomes
		Main Estimates	Planned Spending	Total Authorities*	Actual Spending*
* Excludes amount deemed appropriated to Shared Services Canada, if applicable.
Program Activity 4: Promotion and Attachment to Canada	84.5	71.4	71.4	79.1	78.1	Diverse society that promotes linguistic duality and social inclusion
Program Activity 5: Engagement and Community Participation	88.2	58.8	88.7	89.7	82.3	Diverse society that promotes linguistic duality and social inclusion
Program Activity 6: Official Languages	354.5	353.1	353.1	354.9	359.5	Diverse society that promotes linguistic duality and social inclusion
Total	527.2	483.4	513.2	523.8	519.8

Progress Toward Strategic Outcome 3

Strategic Outcome 3: Canadians participate and excel in sport.

Performance Indicators	2011-12 Performance
Percentage of Canadians who participate in sport.	The 2010 Statistics Canada General Social Survey (GSS) data indicates that 25.8% of Canadians 15 years and older participate in sport. This is a decline of 2.2% from a rate of 28% in the 2005 GSS who actively participated in sports.
Canada's rank on Sport Canada's international ranking indices.	In 2011, Canada ranked 7th on the Olympic Ranking Index*, as it had in 2008, 2009 and 2010. Canada ranked 3rd at the 2010 Winter Paralympics Games** and ranked 10th at the 2008 Summer Olympics.

* The Olympic Ranking Index is based on results per nation across all Olympic events at Olympic Games and World Championships, over a four-year timeframe.

** The Paralympic Ranking is based on the medal results per nation at each Paralympic Games. There were no Olympic/Paralympic Games in 2011-12.

Performance Summary, Excluding Internal Services

Program Activity	2010-11 Actual Spending	2011-12 ($ millions)				Alignment to Government of Canada Outcomes
		Main Estimates	Planned Spending	Total Authorities*	Actual Spending*
* Excludes amount deemed appropriated to Shared Services Canada, if applicable.
Program Activity 7: Sport	211.1	206.7	220.2	220.0	213.2	Vibrant Canadian culture and heritage
Total	211.1	206.7	220.2	220.0	213.2

Performance Summary for Internal Services

Program Activity	2010-11 Actual Spending	2011-12 ($ )
		Main Estimates	Planned Spending	Total Authorities*	Actual Spending*
* Excludes amount deemed appropriated to Shared Services Canada, if applicable.
Internal Services	115.9	92.3	92.3	113.2	113.7

Contribution to the Federal Sustainable Development Strategy

The Federal Sustainable Development Strategy (FSDS) outlines the Government of Canada's commitment to improving the transparency of environmental decision-making by articulating its key strategic environmental goals and targets. Canadian Heritage ensures that consideration of these outcomes is an integral part of its decision-making processes. Canadian Heritage contributes to the following FSDS theme:

Program Activity 8: Internal Services

Canadian Heritage is a participant in the FSDS and contributes to the Greening Government Operations targets through the Internal Services program activity. The Department contributes to the following target areas of Theme IV (Shrinking the Environmental Footprint - Beginning with Government) of the FSDS: green buildings, green procurement, e-waste, printing unit reduction, paper consumption and green meetings.

In compliance with the FSDS tabled in October 2010, Canadian Heritage has implemented measures that demonstrate its commitment to sustainable development. For example, during 2011-12, Canadian Heritage began to reduce the ratio of printing units to departmental office employees and the removal of surplus units has already begun. The Department has adapted Environment Canada's Green Meetings Guide and is working to raise awareness among employees and is promoting ways of minimizing environmental impacts.

For further information on Canadian Heritage's activities to support sustainable development, and strategic environmental assessments, please visit the departmental website. For complete information on the FSDS, please visit the Environment Canada website.

Expenditure Profile

Planned Spending versus Total Authorities

The planned spending for 2009-10 and 2010-11 are both below their respective total authorities. In 2009-10, the variance is mostly explained by items not included in planned spending, such as: Operating Carry Forward, Salary compensation, Canada's Economic Action Plan investments [Canada Cultural Spaces Fund, Canada Arts Training Fund, Canada Periodical Fund (Magazines / Community Newspapers), Canada Media Fund and Special Olympics Canada] and Canada's investment in the 2010 Olympic and Paralympic Winter Games.

In 2010-11, the variance is mostly explained by items not included in planned spending, such as: Operating Carry Forward, Funding to support high performance sport and to increase sport participation, and Funding to support the Michaëlle Jean Foundation.

The planned spending for 2011-12 is also below total authorities. The variance is mostly explained by items not included in planned spending, such as: Operating Carry Forward, Salary compensation, Funding to support the creation of the Canada Media Fund, Funding for the Canada Periodical Fund, Funding to support the commemoration of the 200th Anniversary of the War of 1812, and Funding related to government advertising programs.

Actual Spending versus Total Authorities

In 2009-10, the variance between the actual expenditures and the total authorities is mainly explained by the year-end surplus and the approval of a reprofile of funds to future years that was not published in the Supplementary Estimates. The Building Communities Through Arts and Heritage Program reprofiled funds to future years.

In 2010-11, the variance between the actual expenditures and the authorized level is mainly explained by the Department's surplus and the approval of a reprofile of funds to future years that was not published in the Supplementary Estimates. Both the Canadian Interactive Fund and the Youth Take Charge Program reprofiled funds to future years.

In 2011-12, the variance between the actual expenditures and the authorized level is mainly explained by the Department's surplus and the approval of reprofiles of funds to future years that were not published in the Supplementary Estimates. The Department's surplus is explained by an effort to reduce year-end expenditures and to maximize the carry-forward to provide more financial flexibility for 2012-13. Finally, both the Canada Cultural Spaces Fund and the Game's Hosting Program (2013 Canada Summer Games) reprofiled funds to future years.

Estimates by Vote

For information on Canadian Heritage's organizational Votes and/or statutory expenditures, please see the Public Accounts of Canada 2012 (Volume II). An electronic version of the Public Accounts 2012 is available on the Public Works and Government Services Canada's website.

Section II: Analysis of Program Activities by Strategic Outcome

STRATEGIC OUTCOME 1:

Canadian artistic expressions and cultural content are created and accessible at home and abroad.

Performance Indicators

• Range and volume of Canadian cultural content and artistic works created and produced, by category.
• Range of Canadian cultural and heritage content and artistic works accessible domestically and internationally, by category.

Performance Summary

In 2011-12, the creation and accessibility of a broad range of Canadian artistic expressions and cultural content were supported by an environment fostered by the Department's programs and policies for the arts, cultural industries and heritage organizations both at home and abroad. The Department's investment in the arts, culture and heritage provided social and economic benefits to Canadians with a focus on enabling arts, culture and heritage sectors to take advantage of the digital environment and to be vibrant, resilient and competitive over the long-term.

The Department invested in programs that supported Canada's arts organizations, festivals and performing arts series, as well as programs supporting Canadian film and video, book, periodical, music, broadcasting and interactive digital media industries to produce, market and distribute Canadian artistic expressions and cultural content at home and abroad.

The Department's Arts programs responded to increased interest from organizations seeking to explore the potential of digital technology. Arts organizations are embracing digital technology as a means to enhance the quality of artistic experiences, as valuable tools in training future professional artists, and as a way to improve outreach efforts and connect more Canadians with the arts.

In September 2011, the Government reintroduced the Copyright Modernization Act, Bill C-11, in the House of Commons. The Department supported the work of the Government in the reintroduction of the Bill and through the parliamentary process in 2011-12.

The Department led a successful information campaign to facilitate the transition to digital over-the-air television for Canadian consumers. The transition took place on August 31, 2011.

To better support Canadian cultural creators and creative industries, the Department continued to review its feature film policies in order to better reflect digital opportunities for film production, distribution and consumption and finalized consultations on the implementation of its audiovisual treaty coproduction policy in order to position Canada as a coproduction partner of choice.

Program Activity 1: Arts

[Program Activity 1: Arts]

This program activity improves Canadians' access to varied artistic experiences and to contribute to the sustainability of the arts sector. This is accomplished through funding programs that support the presentation of professional arts festivals or performing arts series; the improvement of arts and heritage infrastructure; the improvement of business and management skills of arts and heritage organizations; a greater integration of arts and heritage within municipal planning; as well as institutions that offer training of the highest calibre, in preparation for professional artistic careers. The core concept of this program is to encourage access, sustainability and excellence in the arts for all Canadians.

2011-12 Financial Resources ($ millions)

Planned Spending	Total Authorities*	Actual Spending*
* Excludes amount deemed appropriated to Shared Services Canada, if applicable.
121.3	121.5	110.4

2011-12 Human Resources (FTEs)

Planned	Actual	Difference
144.1	88.6	55.5

Performance Measurement Framework

Expected Results	Performance Indicators	Targets	Actual Results
Canadian artists are prepared for professional artistic careers in Canada and abroad.	Percentage of employers rating Canada Arts Training Fund graduates as being better prepared for professional careers as opposed to graduates of other programs.	Greater than or equal to 60% of employers rate graduates of Canada Arts Training Fund recipient institutions are better prepared for professional careers.	88% of Canadian employers gave positive ratings to graduates of training institutions funded by the Canada Arts Training Fund.
The sustainability of arts and heritage organizations receiving Canadian Heritage support is strengthened.	Number of types of funding sources (other than Canadian Heritage), for each recipient.	At least 3 funding sources other than Canadian Heritage.	Projects funded by the Strategic Initiatives component of the Canada Cultural Investment Fund were able to secure an average of 5.4 sources of funding. Organizations supported by the Endowment Incentive component secured an average of 11 sources of funding.
Canadians in a variety of communities have access to arts, culture and heritage activities.	Number of communities reached by the Canada Arts Presentation Fund and/or the Canada Cultural Spaces Fund, by type.	Less than or equal to 50% urban communities and greater than or equal to 50% rural communities are reached by the Canada Arts Presentation Fund and/or the Canada Cultural Spaces Fund.	Combined, the Canada Arts Presentation Fund and the Canada Cultural Spaces Fund reached communities at a rate of 32% urban and 68% rural.

Performance Summary and Analysis of Program Activities

The Department of Canadian Heritage continued fostering excellence and diversity in creativity and connecting Canadians and their communities to the arts in 2011-12. The Department invested over $110 million in programs that: supported Canada's top arts training institutions; encouraged long-term financial stability of arts organizations; built and renewed physical infrastructure; and supported festivals and performing arts series to showcase the world of artists. Those investments helped bring arts and cultural experiences to Canadians across the country. 

The Department contributed towards the accessibility of arts, culture and heritage activities to Canadians in their communities. This commitment was demonstrated by the diversity of communities reached by two programs, the Canada Arts Presentation Fund and the Canada Cultural Spaces Fund. Together, they provided funding for projects in a range of communities that was comprised of 44% ethno-cultural communities; 59% young audiences; 23% Aboriginal communities; 34% rural/remote regions and 29% to official language minority communities.

The Canada Arts Presentation Fund supported projects in 257 communities across Canada, including 263 festivals and 258 performing arts series. In a 2009 study², 85% of those surveyed at festivals or series supported by the Canada Arts Presentation Fund reported that they were "very likely" to return in the future, illustrating that with attendance, Canadians are likely to develop an appetite for more such artistic experiences.

The Canada Cultural Spaces Fund contributed to the building of new and improved arts and heritage facilities by funding 39 construction and renovation projects and investing approximately $7 million in 58 projects for the purchase and installation of specialized equipment. These projects enhance the quality of arts experiences available to Canadians and provide communities with valuable space to participate in cultural experiences.

The Canada Arts Training Fund promotes artistic excellence by supporting Canada's top arts training schools.  The 2012 annual survey of funded organizations³ found that 82% of graduates were working professionally in their artistic field in Canada or abroad, demonstrating the schools' effectiveness at training artists who can be competitive internationally. A 2009 research study⁴ reported that 88% of Canadian employers of performing arts graduates gave positive ratings to graduates of Canada Arts Training Fund supported organizations, compared to an average of 76% for graduates of other Canadian training programs, suggesting that schools supported by the program are cultivating skills that are valued by employers in the arts.

The Strategic Initiatives component of the Canada Cultural Investment Fund supports partnerships that enable organizations to improve business practices in the digital age, share best practices, and exploit market development opportunities. In 2011-12, this component⁵ supported 10 strategic initiatives involving 93 partner organizations, which are expected to have a direct impact on more than 2,000 organizations in the arts and heritage sector. Close to $2.4 million was invested in these 10 initiatives, representing only 27% of the total cost for undertaking the projects. This means that for every dollar invested by the program, close to $3 came from a combination of investments by the lead organization and community partners. One such supported project was a collective marketing initiative led by VOX Centre de l'image contemporaine. This project used mobile technology to promote the presence and programming of 23 visual arts organizations in the City of Montréal.

Arts and heritage organizations that have varied sources of revenue exhibit a resilience that enables them to better withstand fluctuations in the economy and continue to provide consistent access to arts and culture experiences for Canadians over time. The Canada Cultural Investment Fund supports arts organizations in diversifying their revenues and leveraging private sector investment through its Strategic Initiatives and Endowment Incentives components. Projects funded by the Strategic Initiatives component secured  an average of 5.4 sources of funding and organizations supported by the Endowment Incentive component averaged 11 sources of funding, exceeding the program's targets of at least three funding sources. To date, the total Government contribution of $140 million to the Endowment Incentives component has leveraged close to $200 million in donations from the private sector, for a total combined investment of $340 million in arts organizations' endowment funds across Canada.

The Cultural Capitals of Canada component of the Canada Cultural Investment Fund supports communities to promote partnerships and engage citizens in the arts and heritage sector. The designated 2012 Cultural Capitals were the Regional Municipality of Niagara, Ontario and Calgary, Alberta, enabling these communities to showcase their cultural vitality and include commemorations of the 200th Anniversary of the War of 1812 and 100 years of the Calgary Stampede in cultural plans. Over 54 partner organizations committed to assist their municipalities in the integration of arts and culture into overall community planning.

Lessons Learned

In 2011-12, the Arts Policy Branch continued to focus on improving service delivery for Canadian Heritage clients and applicants. Practices and guidelines were examined and modified in order to ensure that service remains timely, relevant and sensitive to regional realities.

One result of this work was that consistent definitions for the types of communities reached by programs–Rural, Remote, Large Urban, Medium Urban and Small Urban–were identified. Harmonized definitions have now been developed and are improving the clients’ understanding of application criteria and thus simplifying the application process, enabling the Department to better serve Canadians.

Program Activity 2: Cultural Industries

[Program Activities: Cultural Industries]

This program activity supports the Canadian cultural sector to ensure that a range of Canadian cultural content is produced and is accessible to domestic and international audiences. It also creates conditions that foster sustainability of the Canadian cultural industries. This program activity aims to enable Canadian cultural creators and entrepreneurs to produce market and export Canadian cultural content. This is achieved through delivering programs and services in the form of grants, contributions, tax credits, and policy, regulatory and legislative measures. The core concept of this program activity is to encourage the creation of Canadian cultural content and its consumption both at home and abroad.

2011-12 Financial Resources ($ millions)

Planned Spending	Total Authorities*	Actual Spending*
* Excludes amount deemed appropriated to Shared Services Canada, if applicable.
203.4	318.7	311.3

The variance between the Total Authorities and the Planned Spending is mainly due to funding received during the year for the Canada Media Fund and Canada Periodical Fund which were not included in the Report on Plans and Priorities' Planned Spending.

2011-12 Human Resources (FTEs)

Planned	Actual	Difference
193.7	241.5	-47.8

Performance Measurement Framework

Expected Results	Performance Indicators	Targets	Actual Results
A range of cultural content is created and produced.	Number of cultural works created and produced, by category.	Targets are in place for individual program sub-activities, which will inform the measurement of the overall program activity.	For example, the Canada Music Fund provided production support to 429 albums by Canadian artists. The Canada Periodical Fund enabled the distribution of over 243 million copies of periodicals to Canadians, supported the publication of over 895 print periodicals, and 6 digital-only periodicals.
Canadian cultural industries receiving funding from Canadian Heritage are sustainable.	Gross revenues and/or profit margins of Canadian cultural industries.	Targets are in place for individual program sub-activities, which will inform the measurement of the overall program activity.	Data suggests an overall increase in profit margins and revenues of cultural industries funded by Canadian Heritage in 2010-11 although declines in some areas did occur. The Canadian Periodical Fund recipient magazines had revenues over $623 million; recipient non-daily newspapers had revenues over $275 million.
Canadian cultural content is accessible in Canada and abroad.	Domestic and international reach of Canadian cultural content.	Targets are in place for individual program sub-activities, which will inform the measurement of the overall program activity.	For example, the Canada Book Fund helped companies realize over $330 million in domestic sales of Canadian-authored books, and $100 million more abroad.

Performance Summary and Analysis of Program Activities

In 2011-12, the Department of Canadian Heritage continued to foster the competitiveness and creative output of cultural industries to ensure they provide social benefits, contribute to the Canadian economy and that Canadian and international audiences have access to a range of Canadian content across a variety of formats and platforms. The Department invested over $311 million⁶ in programs that supported Canadian film and video, book, periodical, music, broadcasting and digital media industries to produce market and distribute Canadian cultural content at home and abroad. A range of cultural content was created and produced as Canadian Heritage contributed to the creation of a variety of cultural content across multiple platforms and media. Key achievements include:

• Through the Collective Initiatives component of the Canada Music Fund, a total of $900,000 is now dedicated annually to fund activities directed at expanding markets for Canadian artists through digital distribution, allowing Canadian artists of all music genres to better reach music audiences everywhere.
• In 2009-10, the latest year for which data is available, the Department contributed to the production of 998 television productions and 163 feature films through the Canadian Film or Video Production Tax Credit.
• Through the Convergent Stream component, the Canada Media Fund supported 509 production projects resulting in 2,797 hours of television production hours. Through its Experimental Stream, 90 new innovative projects were supported with $33 million in investment, triggering $50 million in activity, including console and on-line games, web series, e-books, software, portals and social networks, as well as mobile and tablet apps that continue to set new standards for the industry. 

Generally, the amount of content produced for Canadian audiences by these industries has been growing. The latest figures indicate that the number of hours of Canadian television produced,⁷ the number of albums released by Canadian artists,⁸ the number of community newspapers published in Canada's official languages⁹ all increased, while the number of print magazines published in Canada's official languages¹⁰ remained steady. The number of feature films produced in 2010-11 was 86, representing a 12.2% decrease compared to 2009-10.¹¹

Regarding sustainability, when data on gross revenues and profit margins of cultural industries funded by Canadian Heritage are examined, the data suggests an overall increase in profit margins and revenues in 2010-11, the latest period for which industry data is available, although declines in some areas did occur:

• As the music industry continues to adapt to new technology and changes in consumer behaviour, Canadian-controlled companies were more successful than their foreign counterparts. Canadian sound recording firms saw a 7.9% gain in total revenues ($150.8 million in 2010, compared to $139.8 million in 2009), while total revenues for foreign-controlled firms operating in Canada dropped 10.6%. ¹²
• The profit margins of most sub-categories of the film and television industry increased, such as post-production (7.1% in 2010, compared to 6.3% in 2009) and distribution (24.4% in 2010, compared to 20.2% in 2009), while there were only minor decreases in the profit margins of production (1.8% in 2010 compared to 2.1% in 2009) and motion pictures theatres (11.3% in 2010, compared to 11.9% in 2009).¹³
• The budgets of Canadian film and television productions totalled over $2 billion in 2010-11. These productions also generated an estimated 21,900 direct FTEs and another 33,700 spin-off FTEs¹⁴ in 2012-11.
• On the publishing front, there was a minor decrease in the profit margin of book publishers (from 11.4% in 2008 to 11.2% in 2010);¹⁵ however, the profit margin for the Canadian magazine industry rose to 8.5% in 2010 from 5.7% in 2009,¹⁶ and core revenues for community newspapers, defined as the sum of advertising and circulation revenue, totaled $946.1 million in 2010, up from $917.4 million reported in 2009.¹⁷
• The Canada Book Fund (CBF) also supported a broad range of industry activities across the country, including the work of 237 Canadian-owned publishers in more than 75 Canadian towns and cities which directly employ close to 3,000 Canadians.
• CBF recipients produced 4,829 digital editions of books, compared to 3,732 digital editions in 2010-11, a 29% gain. One in five recipients now report sales of digital books.

In order to make Canadian cultural content accessible in Canada and abroad, Canada's cultural industries continued to make content available to domestic and international markets. Overall, performance in this area is positive based on platforms such as television and on consumption patterns, though declines in some areas did occur. In terms of international reach, data from Statistics Canada shows that in 2009, Canada increased its exports of cultural services to $3.1 billion, compared to $2.9 billion in 2008,¹⁸ while the value of Canadian exports of culture goods in 2010 declined slightly to $1.3 billion from $1.5 billion in 2009.¹⁹  In terms of domestic reach, a recent study indicated that Canadians' participation in arts, culture and heritage activities attained record levels in 2010, an indication of the wide accessibility of cultural content domestically.²⁰

• On the audiovisual front, while the availability of Canadian radio services in Canada decreased slightly, this was mainly attributable to the decline in popularity of the AM band.²¹
• For television, there was an increase in the viewing market share of both Canadian English-language²² and French-language²³ television programs in Canada.
• The Department's funding enabled TV5 Québec Canada and TV5MONDE to succeed in the digital environment and to face the challenges of the broadcasting sector. The number of Canadian households having access to TV5 increased in 2011-12²⁴ as well as did its viewing share in Quebec.²⁵ The Department's financial contribution supported an increase in Canadian content in TV5MONDE signals in 2011.²⁶
• The average number of visitors to TV5MONDE's website for mobile users (m.tv5monde.com) increased by 53%. The average number of monthly visitors to TV5 Québec Canada website (tv5.ca) increased from 145,000 last year to 172,000 in the current year. The percentage of Canadian programs broadcast on TV5MONDE signals also increased to 10.1 %, compared with 9 % in the previous year.
• In film and video, the market share of Canadian films at the box office²⁷ dipped slightly from 3.1% in 2010 to 2.8% in 2011. For the DVD sales market,²⁸ Canadian feature film productions represented 1.3% of the number of copies sold in Canada in 2011 up from 1.2% in 2010. For the DVD rental market²⁹, Canadian feature film productions represented 3.3% of all DVDs rented in Canada in 2011 up from 2.9% in 2010.  
• The number of treaty coproduction film and television projects increased from 56 in 2009 to 64 in 2010.³⁰
• On the music front, sales of albums by Canadian artists reached 27.5% of total domestic sales in 2011, the highest market share ever recorded.³¹ On the international front, although the $42.1 million generated internationally from the performance of music produced by Canadian artists in 2010 was 8% higher than 2006, it was a decrease from 2009 where Canadian artists earned $47.1 million.³²
• In publishing, total domestic and international sales of Canadian-authored books published by the Canadian book industry increased 1.2% to a combined $844 million.³³
• Market share of Canadian consumer magazine publishers in 2011 was 42.0%, a slight increase over the past four years.³⁴
• The Department ensured Canada's ongoing leadership in the implementation of the 2005 UNESCO Convention on the Protection and Promotion of the Diversity of Cultural Expressions, notably through its participation to the Convention's governing bodies. The Convention reaffirms the rights of all countries to develop and maintain cultural policies and programs, which help to ensure that Canada can promote its culture at home and abroad.

The Department also worked to develop, modernize and implement policies and legislation to enable Canada's cultural industries to respond effectively to the digital environment and to keep pace with the way Canadians create, share and consume creative content.

In 2011-12, the Government of Canada contributed $134.1 million to the Canada Media Fund (CMF) Corporation which, together with the private funding partners, resulted in $371 million³⁵ in funding support allocated for the creation of screen-based content for consumption by Canadians across multiple platforms and devices. Budget 2011 secured ongoing funding and positioned the CMF as a component of Canada's digital economy strategy.

The transition to over-the-air (OTA) digital television (DTV), on August 31, 2011, was a resounding success. Through collaboration between the broadcasters and CRTC, Industry Canada and Canadian Heritage, Canadians were well prepared for the transition. The digital transition website at digitaltv.gc.ca / telenumerique.gc.ca was established in August 2010, along with a DTV toll-free information line for inquiries from the public. The website received approximately 200,000 visits between January 2011 and March 2012, and the DTV call centre responded to over 11,000 inquiries. A seamless process was implemented at a fraction of the cost and human resources used by other countries in making similar transitions. At a cost of only $2 million, the transition team was able to integrate complex information and inform Canadians in a timely and useful way, along with personalized service. By comparison, the United States spent more than $2 billion on their DTV transition, and Japan used over 20,000 workers to accomplish theirs.

The Department continued its review of Canadian feature film policies to better reflect digital opportunities for film production, distribution and consumption. Activities included consultations with stakeholders on a new feature film performance measurement model and an economic and statistical analysis to develop targets for the English and French-language markets.

Canada's copyright industries are a major economic contributor to Canada's GDP, providing nearly $50 billion in direct economic impact. Recognizing the critical role that a modern copyright regime plays in the digital economy, the Government committed, in the 2011 Speech from the Throne, to seek passage of legislation to modernize Canada's copyright law in a way that balances the needs of creators and users. To this end, the Government reintroduced the Copyright Modernization Act, as Bill C-11, in the House of Commons on September 29, 2011. Second reading debate of the Bill was completed in February 2012 and the Bill was referred to a legislative committee for examination. Between February and March 2012, the committee members heard from over 40 witnesses, received over 100 written submissions, and completed a clause-by-clause study of the Bill. On March 15, 2012, the Bill, as amended by the Parliamentary Legislative Committee, was reported back to the House of Commons. The Bill completed the Parliamentary process and received Royal Assent on June 29, 2012.

Treaty coproduction yields considerable economic benefits for Canadians, as it is an important source of employment for Canadian creators, offers new business opportunities and stimulates foreign investment. Following an eight-week online consultation that ended March 31, 2011, the Department is developing an implementation strategy for Canada's Policy on Audiovisual Treaty Coproduction that considers the participants' comments. The consultation, and further discussions with federal and provincial partners and industry stakeholders from the Canadian audiovisual industry, also assisted the Department to devise a new model treaty that would be used to initiate the renegotiation of current audiovisual coproduction treaties and the negotiation of new ones. Furthermore, negotiation of an audiovisual coproduction treaty with India was actively pursued 

A review of the existing Foreign Investment Policy in Book Publishing and Distribution including extensive consultations was completed in 2010 and the modernization of the policy remains under consideration. Reviews of proposed foreign investments related to the book industry will continue to take into consideration the existing policy as well as the digital technologies that are rapidly changing the industry's operating environment.

Lessons Learned

The success of the transition to over-the-air (OTA) digital television (DTV) exercise highlighted the importance of maintaining close coordination and communications between key stakeholders, and emphasized the importance of clearly explaining regulatory decisions to the public.

Canadians continue to demonstrate a high level of interest in copyright and its implications in an increasingly digital world. The Government of Canada sought to ensure that the interests of affected parties were considered in its efforts to modernize the Copyright Act. Before and after the introduction of Bill C-11, the views of key stakeholder groups were gathered and analyzed. This input helped strengthen the organization’s understanding of stakeholder interests, as well as of new and emerging domestic and international copyright-related issues. This, in turn, enhanced the Department's capacity to provide informed and current advice in support of the Bill C-11 parliamentary process.

Online consultations were used to consult Canadians on the implementation of Canada’s Policy on Audiovisual Treaty Coproduction. The department learned that when planning an on-line consultation related to a specialized topic, extra efforts will be needed to draw on participants beyond industry specialists. We will also benefit from complementing this process with direct interactions with participants. Additional measures could include: bilateral meetings, roundtable discussions, etc.

Program Activity 3: Heritage

[Program Activity 3: Heritage]

This program activity ensures that Canada's cultural heritage is preserved and accessible to Canadians today and in the future. It enables the heritage sector to improve professional knowledge, skills and practices, to preserve and present heritage collections and objects, and to create and circulate exhibitions and other forms of heritage content. This is accomplished by providing funding such as grants, contributions and tax incentives; information, expertise, training and other services; and regulatory and legislative measures. The primary goal of this program activity is to promote the preservation and presentation of Canada's cultural heritage.

[Sub-activities: Heritage]

2011-12 Financial Resources ($ millions)

Planned Spending	Total Authorities*	Actual Spending*
* Excludes amount deemed appropriated to Shared Services Canada, if applicable.
36.2	44.1	40.1

The variance between the Total Authorities and the Planned Spending is in part due to funds received during the year for the Paylist Requirements which were not included in the Report on Plans and Priorities' Planned Spending.

2011-12 Human Resources (FTEs)

Planned	Actual	Difference
156.3	184.1	-27.8

Performance Measurement Framework

Expected Results	Performance Indicators	Targets	Actual Results
Heritage institutions and heritage workers have improved their professional knowledge, skills and practices.	Improvement in professional knowledge, skills and practices reported by participants in learning opportunities provided by the Heritage Group, including online learning materials, publications, and training, as well as by recipients of financial assistance.	Targets are in place for individual program sub-activities, which will inform the measurement of the overall program activity.	Participants in the Heritage Group's learning opportunities reported a significant increase in their professional knowledge, skills and practices.  For example, 86% of respondents who participated in Canadian Conservation Institute learning events and 99% of respondents in Canadian Heritage Information Network workshops and presentations reported an improvement following their attendance.
Heritage collections are preserved by heritage institutions for current and future generations.	Number of heritage collections and objects (artefacts and works of art) whose preservation has been supported by program interventions (expert services, export regulation, direct and tax-based financial support).	Targets are in place for individual program sub-activities, which will inform the measurement of the overall program activity.	The Heritage Group enabled the preservation of heritage objects through several program interventions including providing grants totalling $475,000 to ensure objects of outstanding significance and national importance remained in Canada. The Movable Cultural Property Directorate was also involved in the return to the Republic of Bulgaria of 21,000 coins, pieces of jewellery, and other objects that were illegally imported to Canada. This represented the Government of Canada's largest ever seizure of cultural property.
Canadian and international audiences access content presented by heritage institutions.	Number of visits/visitors to travelling exhibitions and digital heritage content presented through Canadian Heritage Information Network's Virtual Museum of Canada portal.	Targets are in place for individual program sub-activities, which will inform the measurement of the overall program activity.	Travelling exhibitions supported by the Museums Assistance Program and the Canada Travelling Exhibitions Indemnification Program welcomed over one million visitors, whereas digital heritage content presented through the Virtual Museum of Canada portal attracted 2,766,349 visits.

Performance Summary and Analysis of Program Activities

Through its programs and policies, Canadian Heritage fosters the preservation and presentation of Canada's cultural heritage. In 2011-12, the Department's efforts focused on preserving and increasing access to Canadian heritage collections. Canadians continue to support their heritage institutions, as illustrated by the Association for Canadian Studies³⁶ that stated that over 83% of Canadians consider museums to be the most trusted source for history information. In addition, visiting a heritage institution was one of the top three preferred activities listed by Canadians during an overnight domestic trip in 2010³⁷.  Canadians travelling domestically in 2010 were more likely to visit a heritage institution (12.5 million) than go to a beach (12.2 million), go to a national, provincial or nature park (9.9 million), go boating (8.2 million) or go fishing (6.8 million)³⁸. Statistics Canada also reports that Canadians who travelled domestically and listed visiting a heritage institution as an overnight trip activity increased from 11.6 million in 2009 to 12.5 million in 2010, representing an increase of approximately 931,000 visits or 8.0%.³⁹

Policies and programs related to heritage target three complementary objectives: to increase the professional knowledge, skills and practices of heritage workers and institutions who preserve and present Canada's heritage; to enhance the preservation of our heritage; and to increase public access to new heritage content.

The Canadian Conservation Institute (CCI) undertook scientific research on the longevity of popular digital storage media, as well as on techniques for the preservation of access to digital information, via migration or other procedures. The results of this research have been widely distributed and three articles were published by Restorator, one of the world's most important journals on conservation of library and archival materials.

Also, CCI held two workshops on digital photo documentation of cultural objects to meet conservation and documentation requirements to assist heritage professionals in adapting their skills to the digital environment in museums. CCI sold 412 copies of its publication Lighting Methods for Photographing Museum Objects which was used as a reference tool to the digital photo documentation workshop.

As part of the Department's examination of potential approaches to enabling digital preservation, the Canadian Heritage Information Network (CHIN) conducted a detailed online survey of Canadian not-for-profit heritage institutions. The survey quantified the digital assets in their custody, and assessed training needs in areas related to digital preservation. The extensive data collected through this research is now informing the development of professional resources that will address the needs identified by respondents. These efforts will, in turn, benefit the Canadian public by ensuring that digitized and digital-born Canadian heritage content remains publicly accessible to current and future generations.

CHIN's online professional resources and training provided guidance on current topics such as social media, search engine optimization, mobile and multi-platform content development, intellectual property, video production, 3D technology and augmented reality. These resources enable Canada's heritage institutions to make their collections and knowledge increasingly accessible to Canadians.

CHIN invested nearly $2.7 million in the development of original online heritage content by museums of all sizes and disciplines. As a result, 68 new online exhibits will be added to Canada's national virtual museum portal at virtualmuseum.ca. Through the Virtual Museum of Canada (VMC), Canadians and international audiences undertook nearly 2.8 million visits to the digital heritage content contributed by CHIN's 1,527 member heritage institutions. The VMC now showcases more than 650 online exhibits that celebrate Canada's heritage in the sciences, arts and humanities.

The Heritage Group commissioned a study to identify international best practices in the long-term preservation of and access to audio-visual material, including material in digital formats. This project, done collaboratively, led to the drafting of an evaluation tool to assist in granting designation status to organizations in relation to audio-visual collections and other resources that will assist museums. The expected long-term impact is that cultural institutions seeking designation for audio-visual material will meet high standards for the long-term preservation and public access to the collections.

The Department fosters the preservation of Canada's heritage through legislation, research and services, and financial support in the form of both tax expenditures and grants and contributions.

To enable heritage institutions to preserve and provide access to a rich and diverse Canadian heritage content, CCI implemented improved internal processes for evaluating and selecting artefacts for treatment so as to focus conservation treatments on heritage objects and works of art that promote an understanding and appreciation of  Canadian identity.

CCI undertook three major projects related to Canadian identity: displaying the War of 1812 regimental banners that represent an important contribution to Canadian identity and history; providing conservation advice and services to preserve the heritage elements of the Parliamentary Precinct during renovation, contributing to protecting the heritage interiors of the Parliamentary Precinct buildings; and undertaking a scientific examination of the 1670 Royal Charter of the Hudson's Bay Company which is material evidence of Canada's economic history and commercial development. 

CCI approaches the sustainability of museums by assisting heritage professionals and museum management in saving energy and operational costs, while continuing to preserve their collections. This is achieved through the integration of research, expert and advisory services, training and information. CCI contributes to this work in two areas: the development and sharing of reasonable environmental guidelines for managing museum facilities, especially as museums are facing increasing energy costs for display and storage of heritage collections through initiatives such as the offering of presentations and regional workshops on Environmental Guidelines, and the development and implementation of an approach to the assessment of risks to collections that enables museum management to make informed decisions.

The Heritage Group undertook a review to modernize the Cultural Property Export and Import Act, a key aspect of Canada's implementation of international treaties and strategies, through tax incentives, to increase public support and engagement in Canada's heritage. The Department continues its work to modernize this important Act because it serves to encourage and ensure the preservation in Canada of significant examples of our artistic, historic and scientific heritage.

The Movable Cultural Property Program continued to administer the Cultural Property Export and Import Act which aims to preserve heritage of outstanding significance and national importance in Canada so that it is accessible in public collections. Support was provided to the Cultural Property Export Review Board to assist with the certification of donations and sales of cultural property for tax purposes and its consideration of appeals of refused export permits. Movable Cultural Property Grants were awarded to institutions or public authorities in Canada that were designated as meeting the necessary standards to preserve cultural property and make it accessible to the public. Two Movable Cultural Property grants totalling $475,000 were disbursed in 2011-12 in order to preserve objects of outstanding significance and national importance in Canada.

Lessons Learned

CCI determined that its professional development activities have a greater impact when information is easily accessible on its website and found through the use of plain language, as opposed to scientific terms.

CHIN's Online Digital Preservation Survey of Heritage Institutions improved the Department's understanding of these organizations' needs. Drawing from the survey's conclusions, CHIN will develop and make available resources that enable Canadian museums to better preserve Canadian digital heritage content so that it is accessible to future generations. This initiative also served to increase the Department's internal capacity to conduct complex online surveys that gauge the realities and needs of stakeholders.

The project on long-term preservation of and access to audio-visual material brought to light the importance of:

• consulting with experts to assess current knowledge and identify existing best practices; and,
• brainstorming about how new resources can be implemented and shared.

Another important lesson was the realization that a common definition of "significance" is needed for the fair evaluation and assessment of the significance of heritage objects, works of art and heritage interiors that are being considered for treatment. CCI must also focus its knowledge and expertise to ensure the greatest impact on preservation and access to significant heritage collections in Canada. It will also ensure that heritage objects accepted for treatment are significant for the history of Canada.

STRATEGIC OUTCOME 2:

Canadians share, express and appreciate their Canadian Identity.

[Strategic Outcome 2]

Performance Indicators

• Level of appreciation by Canadians of their shared values.
• Level of active participation by Canadians in their society.

Performance Summary

In 2011-12, the Department continued to provide opportunities to advance the sharing, expression and appreciation of Canadian identity as evidenced by the strong levels of Canadians who appreciate their shared values and participate actively in their society. Through its activities, the Department promoted a sense of pride and attachment to Canada, created opportunities for Canadians of all origins to participate and engage in celebrations, commemorations and events of past and present importance, and enabled Canadians to learn about the country's history. Through its policies, programs and commitments, the Department continued to support the vitality of official language minority communities, continued the coordination and implementation of the Roadmap for Canada's Linguistic Duality 2008-2013, encouraged the participation of youth and increased their sense of belonging to Canada, enabled Aboriginal peoples to address the social, cultural, and economic issues affecting their lives, and strengthened their cultures, fulfilled Canada's international human rights reporting obligations and raised awareness and understanding of human rights.

Recent findings confirm that a sense of attachment and pride, as well as the importance of knowledge of history, commemoration, participation and engagement, remain strongly positive in Canada. In 2011, 90% of Canadians reported a sense of attachment to Canada,⁴⁰ and 95% reported feeling proud to be Canadian.⁴¹ When citizenship is defined as active engagement in a community, province or country, 76% of Canadians identified themselves as "full" citizens.⁴² Canadians are also keen to learn more about Canada's history and recognize that such knowledge bears upon their sense of identity. In 2011, 78% of Canadians believed that "learning more about the history of Canada" strengthened their attachment to the country,⁴³ and 67% felt that commemorating events like the War of 1812 added to their sense of belonging⁴⁴ and 74% agreed that the Government should support events and activities that educate Canadians about their country's history.⁴⁵

The Department delivered events and activities aimed at strengthening understanding of Canada's history, especially in the lead up to the celebrations of Canada's 150th Anniversary in 2017. Building a sense of shared history and heritage supports attachment to and appreciation of Canadian identity. In 2011-12, the Department provided leadership and coordination for Government of Canada initiatives commemorating the 200th Anniversary of the War of 1812. The Department also launched activities and events marking the 60th Anniversary of Her Majesty Queen Elizabeth II as Queen of Canada.

Canada was proud to host Their Royal Highnesses The Duke and Duchess of Cambridge who joined Canadians in celebrating Canada Day drawing record crowds of more than 300,000 to the nation's capital. In addition to the National Capital Region, Their Royal Highnesses also toured Quebec, Prince Edward Island, the Northwest Territories and Alberta.

The Department also supported community celebrations during the Celebrate Canada period from June 21 through July 1 (National Aboriginal Day, Saint-Jean-Baptiste Day, Canadian Multiculturalism Day, and Canada Day). Every year these celebrations, often through the support of volunteers, bring Canadians together in their communities and provide opportunities for expressions of pride in being Canadian. The Department supports these celebrations and in 2011, approximately 8 million Canadians participated in one or more of these celebrations.

The Department continued the coordination of the implementation of the Roadmap for Canada's Linguistic Duality 2008-2013. As the published mid-term report of the Roadmap shows, the 32 initiatives included in the Roadmap have already had a positive impact on the lives of Canadians, strengthening their ability to live, work, and thrive in the official language of their choice.

Through the Youth Take Charge Program, the Department provided opportunities for over 70,000 youth to gain awareness of the importance of being an active and engaged citizen, thus contributing in the long-term to their attachment to Canada and a sense of shared Canadian identity among youth.

Through its activities, the Department was able to support linguistic duality which is a part of the Canadian identity. In 2011-12, more than 100 Canadian volunteer organizations held all or some of their activities (conferences, annual meetings, services) in both official languages. Thirteen education agreements with the provinces and territories supported the teaching of English and French as a second language to 2.4 million young Canadians, including over 325,000 immersion students. More than 7,900 young Canadians participated in a summer language acquisition development program, and more than 750 young people found jobs through Young Canada Works in both Official Languages.

Through partnerships and agreements, the Department enhanced the capacity of official language minority communities to access quality education, programs and services in their official language of choice in their communities. Education agreements with provinces and territories helped close to 240,000 young Canadians living in minority communities study in their language at over 900 schools across the country and supported the work of 40 minority language school boards and 39 minority language postsecondary institutions. The Department gave direct support to more than 400 national, provincial and local community organizations nationwide, making it possible to support community media (27 radio stations and 74 newspapers), 24 youth organizations, and 13 parent organizations.

Program Activity 4: Promotion of and Attachment to Canada

[Program Activity 4: Promotion of and Attachment to Canada]

This program activity promotes Canadian identity through building trust, pride, and a sense of national purpose in Canadians. It represents and celebrates Canada to Canadians and Canada to the world, showcasing ingenuity, achievements, innovations, excellence and leadership; and expresses shared values, cultural diversity and Canada's place in the global community. It also promotes civic education and participation among young Canadians through exchanges, forums, youth-led projects, and community service, as well as provides them with the opportunity to learn about and understand Canada's society, diversity, history and institutions. The core concept of this program activity is to promote Canadian values to Canadians and the world.

2011-12 Financial Resources ($ millions)

Planned Spending	Total Authorities*	Actual Spending*
* Excludes amount deemed appropriated to Shared Services Canada, if applicable.
71.4	79.1	78.1

The variance between the Total Authorities and the Planned Spending is mainly due to funding received during the year for the War of 1812 initiative which was not included in the Report on Plans and Priorities' Planned Spending.

2011-12 Human Resources (FTEs)

Planned	Actual	Difference
57.5	129.7	-72.2

Performance Measurement Framework

Expected Results	Performance Indicators	Targets	Actual Results
Knowledge of and appreciation for Canada's shared values and common interests by Canadians, including youth, and by the international community.	Percentage of the Canadian population reached by Canadian Heritage initiatives who report increased level of awareness, knowledge of and appreciation for Canada's values and culture.	75% of Exchanges Canada participants (youth exchanges/forums) report enhanced knowledge and understanding of Canada; having created new ties with other young Canadians; a better understanding of what Canadians have in common and greater appreciation of how diverse Canada is.	13,000 participants had the opportunity to learn about Canada. 83% agreed that they learned new things about Canada; 95% of participants indicated that they created new ties with people from other communities, 89% asserted that they learned about Canadian cultural communities other than their own.
	Percentage of increased awareness of Canada's theme messages (representing the extent of international recognition).	15% of Canada Pavilion visitors interviewed report an increased awareness of Canada's theme messages.	No participation in 2011-12.
	Percentage of Canadians reached by activities, events, commemorations and exhibits.	Targets exist for the program sub-activities.	In 2011, over 8 million Canadians, which represents 23% of the 2011 total population of Canada, participated in community events across Canada that celebrated National Aboriginal Day, Saint-Jean-Baptiste Day, Canadian Multiculturalism Day and Canada Day. The 2011 Canada Day festivities on Parliament Hill drew record-breaking crowds of more than 300,000 people and the event was broadcast live on television across Canada.

Performance Summary and Analysis of Program Activities

The Department promotes Canadian identity by building pride and a sense of national purpose in Canadians. It enables participation by Canadians in activities that celebrate Canada, showcasing our achievements and excellence, our shared values and our cultural diversity. The Department is committed to promoting civic education and participation by providing opportunities to learn about Canada's history, diversity, society, and institutions.

Through funding provided to key national Canadian history and civics sector organizations and post-secondary educational institutions, the Canadian Studies Program encouraged learning about Canada, its history, stories, people, and systems of government. By supporting the development or enhancement of learning materials; the organization of learning and developmental experiences; and the maintenance of networks, the Program continued to encourage Canadians to enhance their understanding of Canada. Also, through the Canadian Studies Program the Department contributed to the commemoration of the 200th Anniversary of the War of 1812 by supporting the initial research required for the development of bilingual resources to educate Canadians on the importance of this milestone in Canada's history.

The Department is supporting and celebrating the important milestone of Her Majesty's Diamond Jubilee. In 2011, the Department launched the Diamond Jubilee funding initiative to provide support for unique, grassroots celebrations as these types of activities reflect the unique communities in which they are held and encourage Canadians to actively celebrate in ways that are most meaningful to them.

To promote the Diamond Jubilee and to strengthen Canadians' awareness of our institutions, the Department produced promotional materials that were distributed to organizations and citizens planning celebrations. In 2011-12, items were in high demand and were distributed in response to requests received; resulting in posters being sent to 17,000 schools and 7,000 libraries. This level of interest is expected to continue for the next year. In addition, a revised edition of the publication "A Crown of Maples," a publication about the history of the Crown, its current role and its symbolic importance in Canada, was produced and will be distributed to parliamentarians, non-governmental organizations, schools and libraries across Canada and the general public in 2012-13.

The Department worked in collaboration with the Office of the Governor General of Canada and the Royal Canadian Mint to develop and launch The Diamond Jubilee Medal Program to honour significant contributions and achievements by Canadians. The Department also worked with Canada Post and the Royal Canadian Mint to develop and launch new postage stamps and collector coins that serve as a tribute to Her Majesty and her 60 years of service.

The War of 1812 was a defining chapter in Canada's history as a nation and the Department, on behalf of the Government, is leading and coordinating the commemoration of the 200th Anniversary of the War of 1812.⁴⁸

A national announcement with seven satellite events across Canada was held in October 2011 to ensure a broad reach of activities and to build awareness of the commemoration. The announcement also unveiled the visual identity, the mobile application and the 1812.gc.ca website, a single portal for Canadians to access information on the War of 1812. Engagement meetings were held with provincial and municipal governments, not-for-profit organizations, multicultural and youth communities, regional groups and private sector organizations. In addition, the Department held engagement meetings with First Nations and Métis.

The 1812 Commemoration Fund was also launched to foster greater awareness and understanding among Canadians of the importance of the War of 1812. This Fund makes $11.5 million available over three years for community-based projects across Canada that commemorate the 200th Anniversary of the War of 1812. Over 240 applications were received indicating a high level of interest in the fund. Twenty projects were approved from the Fund in 2011-12 for a total of $2.5 million and an additional $3 million was invested from other existing programs within the Department.

The Department continues its ongoing work with 17 federal departments and agencies to share information, leverage investments and coordinate a government-wide approach towards the planning and delivery of commemoration activities across Canada.

Through programs such as Canadian Studies, Exchanges Canada, and Youth Take Charge, the Department provided opportunities for Canadians to become more knowledgeable about Canadian society, civics, and history, as well as more connected to each other and active in their communities.

In 2011-12, the Canadian Studies Program supported Action Canada's leadership development, Canada's History Awards and the promotion of excellence in the study and teaching of Canadian history to teachers, students, academics and local and Aboriginal historians. The Program also supported the development of new content for the Universities of Laval and Toronto's The Dictionary of Canadian Biography, which included finalizing16 biographies, and the Historica Dominion Institute's Canadian Encyclopedia / Encyclopedia of Music in Canada for 4,500 new articles. Funding also supported the Association for Canadian Studies' 8th biennial National History Conference, which enabled history teachers, educators, academics and researchers to share knowledge about teaching in Francophone communities, and for Canadian Themes/Thèmes canadiens, the official publication for the history conferences, which provides a platform for in-depth discussion related to Canadian history, civics and identity. These activities and materials gave Canadians opportunities to learn about Canada's history, civic life and public policy.

The Exchanges Canada Program offered opportunities to approximately 13,000 youth to learn about Canada; to create linkages with one another; and to better appreciate the diversity and shared aspects of the Canadian reality.  As a result of their participation in the Program, 95% indicated that they created new ties with people from other communities, 89% asserted that they learned about Canadian cultural communities other than their own, and 83% of youth agreed that they learned new things about Canada.

The Youth Take Charge Program provided over 70,000 youth with opportunities to be engaged directly in activities from coast to coast including northern youth. Of the 23 organizations' projects, 8 projects are in Civic engagement and youth service, 11 projects in Arts and culture, 3 projects in History and heritage and 1 project in Economic activities. The recent Youth Take Charge Survey has shown that, as a result of their participation in Youth Take Charge activities, 82% report realizing they share a common sense of shared Canadian identity, 79% report that they recognize the importance of being an active and engaged citizen, and 67% of youth report an increased sense of attachment to Canada.⁴⁷

Lessons Learned

In 2011-12, the Exchanges Canada Program continued to implement the recommendations of the 2010 program summative evaluation for continued enhancements to the Program.  In addition, the Program is piloting a new online version of its program questionnaire, which aims to reduce the administrative burden on participants, organizers, and parents, while still obtaining required program results.

The Youth Take Charge Program worked with funded organizations to develop an outreach strategy to encourage its youth participants to complete the Program's post-participation questionnaire. Youth had access to the questionnaire through e-link, Facebook and paper. Responses compiled from the questionnaire were used to demonstrate the impact of the Program.

As demonstrated through the 2010 Royal Tour the use of social media significantly increased access and garnered increased participation of Canadians. Given this success, the Department took advantage of the opportunities available to reach Canadians online and developed and launched a website, a mobile website, a Facebook page, a Twitter account and a YouTube channel for the Diamond Jubilee. The website was launched in September 2011, and has had more than 900 visits a month with peaks of 25,000 in February and 21,000 in March. The Twitter account averaged 18 clicks a day before the Royal Tour and 161 clicks a day during the Tour. The Crown in Canada Facebook page had the most "likes" of any Government of Canada Facebook page in the month of March 2012. The Canadian Crown iPhone app was launched in February and had a total of 1,028 downloads by the end of March. The website features a new tool, a calendar of events, to connect Canadians with opportunities to celebrate in their communities.

To ensure the integrity and historical accuracy of different initiatives for the 200th Anniversary of the War of 1812, the Department established an informal panel of Canadian historians to act as expert advisors in the planning of the commemoration. The creation of the panel has been viewed as a positive model for future use. The panel has been consulted on a number of different elements of the commemoration including key messaging, links between the War of 1812 and modern day regiments, and the national monument. In addition, the Federal Secretariat has sought the expertise of particular panel members on an ad-hoc basis regarding content for the 1812.gc.ca website, mobile application and the advertising campaign. Panel members have been involved in thought-provoking and engaging discussions that have led to a number of constructive recommendations.

Program Activity 5: Engagement and Community Participation

[Program Activity 5: Engagement and Community Participation]

This program activity aims to ensure that Canadians are engaged and have the opportunity to participate in the civil, social and cultural aspects of life in Canada and in their communities. This is accomplished through funding programs and initiatives that support the efforts of communities to build stronger citizen engagement and social inclusion through the performing and visual arts; express, celebrate and preserve local heritage; and contribute to increasing the respect for and awareness of human rights in Canada and develop innovative and culturally appropriate solutions to the social, cultural, economic and other obstacles that impede Aboriginal peoples' community and personal prospects. This program activity has strong social benefits, as it contributes to the preservation of the history and identity of Canada's diverse communities, while offering a way for traditions and identities to evolve over time. The program activity supports the Department's mandate to strengthen Canadian identity and values and build attachment to Canada.

2011-12 Financial Resources ($ millions)

Planned Spending	Total Authorities*	Actual Spending*
* Excludes amount deemed appropriated to Shared Services Canada, if applicable.
88.7	89.7	82.3

2011-12 Human Resources (FTEs)

Planned	Actual	Difference
115.2	106.2	9.0

Performance Measurement Framework

Expected Results	Performance Indicators	Targets	Actual Results
Canadians are engaged and have the opportunity to participate in social and cultural aspects of community life in Canada.	Level of engagement and participation by Canadians in social and cultural aspects of community life in Canada.	Targets are being developed for individual program sub-activities, which will inform the measurement of performance of the overall program activity.	For example, the Aboriginal communities component of the Aboriginal Peoples' Program provided financial support for the operation of 115 Friendship Centres in urban communities across Canada; 192 projects for urban Aboriginal youth, supported by community youth committees in 146 communities across Canada; employment to 225 summer students across Canada in over 124 communities; career fairs including 63 workshops in Yellowknife, NT and Halifax, NS attended by 806 students in grades 8-12; and 35 Aboriginal women's projects in 25 communities across Canada.

Performance Summary and Analysis of Program Activities

Through its various initiatives and activities, the Department provides opportunities for Canadians to participate and actively engage in the social, civic and cultural aspects of their society. This program activity enables Canadians to celebrate and preserve their local arts and heritage, and increases understanding, respect and awareness of human rights. It also supports Aboriginal peoples and their communities in the preservation and strengthening of Aboriginal languages, culture and identities.

Through funding to local festivals and commemorative events, projects and activities, the Building Communities Through Arts and Heritage Program (BCAH) has continued to provide opportunities for local artists and artisans to be engaged in their communities, for groups to commemorate local heritage and for citizens to be exposed to local arts and heritage. In 2011-12, BCAH provided funding to a total of 896 arts and heritage projects, which included 757 local festivals, 118 community anniversaries and 21 commemorative capital projects, in 561 communities across the country. In addition, BCAH provided support for community-based commemorations of locally significant anniversaries and recurring local festivals related to the commemoration of the 200th Anniversary of the War of 1812.

The Aboriginal Peoples' Program provided funding to Aboriginal communities and organizations in support of the cultural expression and community engagement, and the preservation and revitalization of Aboriginal languages and cultures. Substantial progress was made in 2011-12 to consolidate this multi-faceted program, including the development of a new logic model, new performance indicators, revised results reporting requirements and justification for a new results database.

Within the Aboriginal living cultures component of the Aboriginal Peoples' Program, key activities focused on the preservation and revitalization of languages and cultures, including the production and televising of the National Aboriginal Achievement Awards held in Vancouver, BC honouring 15 recipients and attended by over 2,000; funding to First Nations, Inuit and Métis community organizations for 90 projects in 68 communities across Canada to preserve and revitalize their Aboriginal languages; educational and cultural performance events on National Aboriginal Day that attracted over 40,000 people in the National Capital Region; and support to 13 northern Aboriginal communications societies for the development of radio and television productions and broadcasts accessible to Aboriginal peoples living in Canada.

In the area of human rights, Canadian Heritage provides overall coordination of Canada's reports to the United Nations (UN) on the seven international human rights treaties to which Canada is a party. A year or two following the submission of each report, Canada is required to appear before the treaty's monitoring committee to present its report and to answer questions. In 2011-12, Canadian Heritage worked collaboratively with other federal departments in preparation for Canada's appearance before the UN Committee for the Elimination of Racial Discrimination, and coordinated provincial and territorial government participation in this process. Further, in relation to Canada's Universal Periodic Review and reporting on international human rights treaties, Canadian Heritage also worked in collaboration with other federal departments in the development of a strategy for raising awareness of international human rights treaties within the federal public service and a framework for future consultations with civil society and Aboriginal organizations. The Department also completed a preliminary review of data sources in relation to Canada's reporting under the Convention on the Rights of the Child.

Lessons Learned

In response to concerns expressed by Aboriginal communities, the Department revised the regional allocation targets under the Aboriginal Languages Initiative to better reflect the number of Aboriginal languages spoken in each region. Funds formerly provided for conferences, travel and planning have been channelled directly to communities to support their efforts to preserve and revitalize their languages.

In 2011-12, the Aboriginal Peoples' Program began implementing the recommendations set forth by the recipient audits completed in 2011. The recommendations included the need for more clear and concise contribution agreements, and increased on-site monitoring of the agreements and recipients.  As a result, the Program has improved its approach to the monitoring of contribution agreements for activities, expenditures and results.  This will ensure that activities and expenditures are in accordance with the terms of the agreements.  Plans to implement recommendations from recipient audits completed in 2012 are currently underway.  In addition, the terms and conditions regarding eligible recipients are being slightly modified to provide better clarity.

With a focus on continuous improvement, BCAH and Heritage Program further streamlined the application and guidelines for the program to ensure clarity and reduce the need to return to applicants for additional information. The program worked closely with the Centre of Expertise on Grants and Contributions to prepare for its participation in the Grants and Contribution Modernization Initiative in 2012-13.

Program Activity 6: Official Languages

[Program Activity 6: Official Languages]

Canadian Heritage is responsible for the planning, implementation and management of the Official Languages Support Programs pertaining to the promotion of linguistic duality within Canada and the development of official language minority communities, in accordance with Canadian Heritage's mandate pursuant to article 43 of the Official Languages Act (OLA). This activity connects to the Government Outcome "A diverse society that promotes linguistic duality and social inclusion." Canadian Heritage plays a coordination and support role among federal institutions in the implementation of their commitment to the development of official language minority communities and to the promotion of linguistic duality, as conferred by article 42 of the OLA. Canadian Heritage is also responsible for the horizontal coordination of the Official Languages Program covering all activities of federal institutions subject to the OLA, including language of service or of work, support for the promotion of linguistic duality within Canada and support for the development of official language minority communities.

2011-12 Financial Resources ($ millions)

Planned Spending	Total Authorities*	Actual Spending*
* Excludes amount deemed appropriated to Shared Services Canada, if applicable.
353.1	354.9	359.5

2011-12 Human Resources (FTEs)

Planned	Actual	Difference
77.9	131.5	-53.6

Performance Measurement Framework

Expected Results	Performance Indicators	Targets	Actual Results
Canadians recognize and support linguistic duality.	Percentage of Canadians who agree that having two official languages is key to their definition of being Canadian.	Greater than or equal to 60%.	The Departmental Survey on Attitudes and Perceptions Toward Canada's Official Languages will measure against these targets in 2012-13.
OLMCs can live in their language, in their communities.	Percentage of members of minority communities that report being satisfied with the regional services offered in their language.	Greater than or equal to 70%	The Departmental Survey on Attitudes and Perceptions Toward Canada's Official Languages will measure against these targets in 2012-13.

Performance Summary and Analysis of Program Activities

In 2011-12, the Department fostered the vitality of Canada's official language minority communities (OLMCs) through the Official Languages Support Programs resulting in more Canadians having a greater understanding and appreciation of the benefits of Canada's linguistic duality. Through its activities and agreements, the Department strengthened the Government's capacity for official languages and enhanced social inclusion by promoting linguistic duality and its practical use in the daily lives of Canadians.

The Department coordinates the implementation by the federal institutions of the Government's commitment to the development of OLMCs and to the appreciation of French and English in Canadian society. Canadian Heritage has renewed its approach to interdepartmental coordination in consideration of how the official languages issue has evolved and in order to better fulfill its mandate.

Canadian Heritage implemented a new approach to coordination that includes all institutions but that has been adapted according to their respective mandates, their contribution to the development of OLMCs as well as to their promotion of linguistic duality. This approach is also consistent with the Government’s obligations on official languages and includes an integrated reporting process that was developed with the Treasury Board Secretariat.

The Department conducted a series of presentations with various networks and key stakeholders to inform them of the Government's objectives for the new Canadian Heritage and Treasury Board Secretariat integrated approach. The Department ensured that the federal institutions that were required to report on their outcomes for the first time in 2011-12 were well informed and prepared to fulfill their obligations.

The Department ensured that the main spokespersons of the OLMCs, as well as the Office of the Commissioner of Official Languages, were regularly informed and consulted throughout the development and implementation of the new approach.

The Roadmap to Canada's Linguistic Duality 2008-2013: Acting for the Future, is a government-wide strategy conducted by fifteen federal departments and organizations to promote the full recognition of our two official languages and greater participation by Canadians in using and learning them, as well as to support the development efforts of OLMCs. In 2011-12, the second last year of the five-year strategy, Canadian Heritage's Official Languages Secretariat conducted events and activities to develop options for the next federal official languages strategy.

The Secretariat met regularly with community organizations and participated in a number of events with national and sectoral organizations. It also consulted the non-government sector from May to September 2011 on the implementation of the Roadmap and its progress, in addition to preparing the Roadmap for Canada's Linguistic Duality 2008-2013: Acting for the Future Mid-Term Report that was presented to Parliament in April 2012.

In September 2011, the Secretariat organized a symposium on official languages research, in part to solicit ideas and opinions from the communities that will inform decisions and future actions.

Since fall 2011, as part of its study on the Roadmap, the Secretariat has undertaken a literature review and an analysis of information from community organizations that have appeared before the House of Commons Standing Committee on the Official Languages. This information has enabled the Secretariat to define the needs, concerns and priorities of the community organizations in order to develop options for the next federal strategy.

Recognizing that the Roadmap initiatives work together with those of the provinces and territories, under the areas of their specific jurisdiction, the development of options for the next federal strategy depends on open and sustained intergovernmental dialogue. The Minister of Canadian Heritage invited his provincial and territorial counterparts to share their thoughts on official languages with the Department to better inform the development of options for the future.

In addition, the Department continued its activities for the development of OLMCs through direct support to more than 400 national, provincial and local community organizations across the country. These organizations form networks that make it possible to support community media (27 radio stations and 74 newspapers); to support the work of 131 local, regional and national cultural organizations; and to hold activities in 102 community or cultural centres in 74 schools and 37 Community Learning Centres throughout the country.

Through education agreements, these programs work with the provinces and territories to enable nearly 240,000 young Canadians living in minority communities to study in their language in more than 900 schools and 40 minority school boards country wide; and enable 2.4 million young Canadians to learn French or English as a second language, including over 325,000 students in immersion programs.

Lastly, these programs have enabled more than 100 Canadian volunteer organizations in every field (e.g. health, arts and culture, environment, professional groups) to hold a portion of their activities in both languages and allowed 8,950 Canadian youth to upgrade their language skills through various programs.

Lessons Learned

The Official Languages Secretariat realized the importance of maintaining ongoing dialogue with Roadmap stakeholders (i.e. those in the non-governmental sector, federal partners and provincial and territorial governments). The mid-term consultations and a symposium on official languages research allowed the Secretariat to increase its knowledge and understanding of the issues facing both minority environments and linguistic duality.

The Department adopted a realistic and consistent approach in order to meet the expectations of OLMCs and to comply with Government obligations, while also considering the working environment of federal institutions. The consultations with institutions and community representatives suggest that the approach used by the Department will help the Government to better fulfill its obligations and better highlight the outcomes achieved by all federal institutions as a whole, in order to benefit the OLMCs and the promotion of the official languages.

The Department continued to work in cooperation with the Treasury Board Secretariat in order to integrate the reporting process that will facilitate data collection and ensure a consistent implementation of the various aspects of the Act through Government.

STRATEGIC OUTCOME 3:

Canadians participate and excel in sport.

[Strategic Outcome 3]

Performance Indicators

• Percentage of Canadians who participate in sport.
• Canada's rank on Sport Canada's international ranking indices.

Performance Summary

Programs delivered through Canadian Heritage aim to make the Canadian sport system more effective and, in the longer term, expect that Canadians will participate and excel in sport as indicated by Canada's ranking on Sport Canada's international ranking indices.

Program activities supporting sport participation are intended to encourage more Canadians to participate in sport and slow the declining participation levels of Canadians. The 2010 Statistics Canada General Social Survey (GSS) data indicates that 25.8% of Canadians 15 years and older participate in sport (defined as physical activities usually involving competition and rules and that develop specific skills). ⁴⁹  This represents a decline of 2.2% from a participation rate of 28% in the 2005 GSS who actively participated in sports.

Canada's rank on the Sport Canada Olympic Ranking Index is used as a measure of excellence. This Index is based on results per nation across all Olympic events at Olympic Games and World Championships, over a four-year timeframe. The Paralympic Ranking is based on the Medal results per nation at each Paralympic Games. In 2011, Canada ranked 7^th on the Olympic Ranking Index, as it had in 2008, 2009, and 2010. There is no result available for the Paralympic Ranking as there were no Paralympic Games in 2011-12. However initiatives such as Own the podium have contributed to Canada maintaining a top 8 ranking internationally.

Program Activity 7: Sport

[Program Activity 7: Sport]

This program activity promotes development and excellence in sport among Canadians and Canadian communities, provides direct support to Canadian high-performance athletes, enhances Canada's ability to host the Canada Games and international sport events in Canada, supports the development of excellence in the Canadian sport system and contributes to increasing participation in sport by Canadians of all ages and abilities. This program activity provides funding, expertise and other services to Canadian athletes, sport organizations and event organizers. The core concept of this program is to enhance and promote Canadian participation and excellence in sport, sport organizations and sporting events.

2011-12 Financial Resources ($ millions)

Planned Spending	Total Authorities*	Actual Spending*
* Excludes amount deemed appropriated to Shared Services Canada, if applicable.
220.2	222.0	213.2

2011-12 Human Resources (FTEs)

Planned	Actual	Difference
103.5	119.5	-16.0

Performance Measurement Framework

Expected Results	Performance Indicators	Targets	Actual Results
Canada has a sport system where high-performance athletes and Canadians can participate and excel in sport with a technically sound and ethically supportive structure.	Number of athletes who are at international-level performance standards.	An estimated 450 athletes are identified as meeting international level performance standards.51	444 athletes met the international level performance standards.
	Number of Canadians participating in sport through sport organizations’ special projects and provincial/territorial bilateral agreements.	At least 957,000 Canadians are participating in sport through funding for sport organizations’ special projects. At least 1.6 million Canadians are participating in sport through funding for provincial/territorial Bilateral Agreements.	2.4 million Canadians participated in sport through development initiatives and funding for sport organizations’ special projects. Results for 2010-11, the latest year for which data is available, show that over 1.5 million Canadians participated in these types of activities.
	Percentage of funded National Sport Organizations, Multi-sport Service Organizations and Canadian Sport Centres that have achieved the established threshold of Fully Met accountability standards.	At least 73% of Multisport Service Organizations have fully met 67% of their respective accountability standards. At least 67% of National Sport Organizations have fully met 85% of their respective accountability standards. At least 85% of Canadian Sport Centres have fully met 80% of their respective accountability standards.	93% of Multisport Service Organizations met their respective accountability standards. 57% of National Sport Organizations met their respective accountability standards. 100% of Canadian Sport Centres fully met their respective accountability standards.

Performance Summary and Analysis of Program Activities

Canada has an effective sport system, where high-performance athletes and Canadians participate and excel in sport within a technically sound and ethical support structure.

In 2011-12, Canadian Heritage contributed to the pursuit of excellence through its direct support to 2,485 athletes already at or having the potential to be in the top sixteen in the world in their sport, enabling athletes to combine their sport and academic or working careers while training intensively in pursuit of world-class performances.  Of these athletes, 444 achieved top 16 within their sport, internationally. 

Through increased funding since 2010-11 to the Sport Support Program, Canadian Heritage has further enhanced its support for sport in Canada. The Department began to implement its Sport Excellence Strategy by building on the successes of the first strategy that was launched in 2005. The goal of the renewed Strategy is for Canadian athletes to consistently achieve podium-level performances in sports at the Olympic and Paralympic Games and their Senior World Championships. Other initiatives, such as the successful Own the Podium, have been continued. 

The Department continued its work to increase opportunities for sport participation among all Canadians, including targeted under-represented groups, through Special Projects for persons with and without a disability, and bilateral agreements on sport participation, including a component directly targeting Aboriginal communities, with provinces and territories. In 2011-12, 2.4 million Canadians participated in sport through the Special Projects, and further opportunities were provided through projects jointly funded through 22 bilateral agreements with provinces and territories.

Canadian Heritage works with sport organizations to help them achieve established National Standards that will ultimately result in the provision of a more effective, technically-sound and ethically-based sport system. The National Standards (such as Organizational Governance, Official Languages, Coaching Development, and Equity and Access), were developed by Sport Canada and serve as a measure of the organizations' progress against predetermined national performance parameters and from part of the Sport Funding and Accountability Framework. As noted in the table above, 57% of National Sports Organizations, 93% of Multisport Service Organizations, and 100% of Canadian sport Centres achieved full compliance with established standards. This compares with 51%, 67% and 86%, respectively, that were fully compliant in 2010-11.

The Own the Podium initiative has continued to provide independent expert technical analysis and recommendations to the Government of Canada and the other national funding parties. While these recommendations are geared toward achieving podium performances at the 2012 Olympic and Paralympic Games, the results at World Championships in non-Olympic years are monitored. Canada won 17 medals at World Championships events on the Olympic calendar in 2011 for a ranking of 14^th on the total medal table. The World Ranking Index, a rolling four-year aggregate of results developed by Sport Canada, shows that Canada currently ranks 2nd in the world among winter sport nations, 18^th among summer sport nations (an improvement of one position over last year) and 7^th among all nations when the summer and winter results are combined.

Sport Canada along with Own the Podium, the Canadian Olympic Committee and the Canadian Paralympic Committee partnered to initiate a discussion to outline their respective roles and responsibilities in the pursuit of high performance sport excellence. Sport Canada plans to further collaborate with these and other parties, including the provinces and territories, to define and clarify the roles and responsibilities for the delivery of high performance sport.

Sport Canada, in collaboration with provincial and territorial governments and sport sector stakeholders, took significant steps to renew the Canadian Sport Policy, leading in-depth and extensive consultations across Canada with the Canadian public and representatives of the sport sector and other related sectors, such as health, recreation and education. The Canadian Sport Policy is a pan-Canadian, intergovernmental policy, developed jointly by the Government of Canada and all provinces and territories. It provides a powerful vision and goals to guide the development and implementation of sport programs and initiatives. The renewed Canadian Sport Policy will encourage the ongoing development of a collaborative approach to increasing quality sport participation opportunities for Canadians and the achievement of athletic excellence by Canadian high performance athletes.

The Government of Canada contributed $13,455,502 to the capital budget for the Toronto 2015 Pan American and Parapan American Games for 2011-12. The funds covered costs associated with the planning and design of sport venues, including the identification of the technical sport requirements for the training and competition sites, the development of appropriate architectural designs and the management of the procurement processes. Once all the construction has been completed in 2014-15, the Government of Canada will have contributed towards eight new venues and twenty three improved venues in Canada. The Government of Canada is the major source of funding for the capital costs, including those associated with design, planning, and construction although capital costs are shared between the Government of Canada and facility owners, such as municipalities or universities.

In 2011-12, the Sport Canada Branch of Canadian Heritage collaborated with the eleven federal departments and agencies committed to providing essential federal services to meet the Government of Canada's commitment to the 2015 Toronto Pan American and Parapan American Games. A Federal Governance Framework was developed to ensure that an appropriate and effective governance structure was established in relation to inter-departmental collaboration and engagement with the 2015 Games stakeholders. The Governance Framework also confirms the roles and responsibilities of the participating federal organizations and outlines the structure and mechanisms to be implemented by Canadian Heritage to oversee and support collaborative, coordinated planning, performance and risk management as well as the reporting and evaluation aspects of this important initiative.

Lessons Learned

Sport Sector Collaboration

The key lesson learned over the past few years has been that the number of organizations that have high performance sport leadership as all or part of their mandate has caused confusion among sport stakeholders. The clarification and articulation of the roles and responsibilities of the various contributing and delivery partners addresses this issue and will provide direction for the future.

Policy Development

For the renewal of the Canadian Sport Policy, the Department has seen the benefit of committing to a strong rigor in policy development, including the integration of the principles of transparency, public engagement, inter-sectorial collaboration, and performance management. The renewed policy will provide a unifying vision that will reflect the growing collective desire to continue working together, across sports, across governments, and across sectors to further strengthen sport in Canada.

Hosting International Major Multi-sport Games

Lessons learned and best practices from the 2010 Winter Olympic and Paralympic Games were instrumental in mitigating early obstacles during the initial planning stages of preparing for the 2015 Toronto Pan American and Parapan American Games, and will continue to influence the project as it progresses through its stages.

Internal Services

Program Activity 8: Internal Services

Internal Services are groups of related activities and resources that are administered to support the needs of programs and other corporate obligations of an organization. These groups are: Management and Oversight Services; Communications Services; Legal Services; Human Resources Management Services; Financial Management Services; Information Management Services; Information Technology Services; Real Property Services; Materiel Services; Acquisition Services; and Travel and Other Administrative Services. Internal Services include only those activities and resources that apply across an organization, and not to those provided specifically to a program.

2011-12 Financial Resources ($ millions)

Planned Spending	Total Authorities*	Actual Spending*
* Excludes amount deemed appropriated to Shared Services Canada, if applicable.
92.3	113.2	113.7

The variance between the Total Authorities and the Planned Spending is mainly due to funding received during the year for the Operating Budget Carry Forward and the Paylist Requirements which were not included in the Report on Plans and Priorities' Planned Spending.

2011-12 Human Resources (FTEs)

Planned	Actual	Difference
904.6	950.1	-45.5

Performance Summary and Analysis of Program Activities

In 2011-12, Canadian Heritage continued to contribute to the Government's commitment to restore Canada's economic fiscal balance, in addition to addressing the Department's own financial pressures and challenges. Canadian Heritage strived to increase cost-effectiveness and efficiency while maintaining its quality and level of service for program delivery.

The Department focused on its four management priorities: Public Service Renewal; Grants and Contributions Modernization; Integration of Financial, Human Resources and Program Performance Information; and Maximization of the Effectiveness and Efficiency of Internal Services. The first two priorities are in response to the priorities of the Clerk of the Privy Council concerning Public Service Renewal, the efforts of central agencies to cut red tape in the management of grants and contributions, while the latter two priorities reflect commitments related to the Management Accountability Framework. All four priorities reinforce the Department's commitment to promote and improve best practices and management excellence.

In 2010-11, the Department launched a department-wide initiative to modernize its operations and to seek innovative solutions to address financial challenges, while maintaining an acceptable level of accountability and diligence. The Transformation Initiative consisted of four components:  a Resource Allocation Strategy; a Departmental Structure Review; an Internal Services Review; and the Grants and Contributions Modernization Initiative. The Transformation Initiative has enabled the Department to move forward with the modernization of its operations and the implementation of innovative solutions to better serve Canadians, while addressing departmental fiscal challenges.

The Internal Services Review is almost complete and it has given the organization an opportunity to reflect on how it delivers programs and services and to change how it does business. The final changes to be implemented in 2012-13 include the reduction of the number of personal printers in the Department, the bulk purchase of IT equipment for cost savings and the standardization of the offices of Directors General and the Assistant Deputy Ministers.

Public Service Renewal

In 2011-12, Canadian Heritage continued to face the challenges presented by a period of transformation. The Department implemented human resources strategies to address the recommendations of the Internal Services Review, such as:

• Supporting employees and managers during the Transformation Initiative. Tools and workshops were offered to assist in dealing with change and the job search, resulting in the placement of 90% of affected employees within 90 days;
• Providing and promoting information sessions and appropriate tools to promote day-to-day recognition and employee well-being as an important part of a healthy workplace. Since the beginning of the Transformation Initiative, over 600 employees attended these sessions;
• Improving the leadership skills of our management cadre by promoting performance management and ensuring a better alignment with organizational commitments. In addition to this, a talent management initiative for managers has been developed;
• Supporting employment equity through an action plan. Official languages have been promoted by the use of an Official Languages fund, and a buddy program; and
• The creation of the Office of Values and Ethics which offers individual and group coaching and learning sessions on topics such as well-being and management development. Canadian Heritage's Code of Values and Ethics, along with the related communications strategy and learning tools were approved.

Grants and Contributions Modernization Initiative

Under the Transformation Initiative, the Department undertook the Grants and Contributions Modernization Initiative which has enabled Canadian Heritage to simplify, streamline and improve service for the Department's grants and contributions clients.

The first phase of this initiative focused on redesigning internal business processes related to the assessment of funding applications. The Department also introduced substantial technology improvements which have resulted in efficiencies for the pilot programs.

Integration of Financial, Human Resources and Program Performance Information

The Department works to continuously improve its corporate management processes and tools. Throughout the Department, the implementation of the Management, Resources and Results Structure policy that provides a common government-wide approach to the collection management and public reporting of financial and non-financial performance information is progressing as program results and performance measures have been reviewed and improved. The Grants and Contribution Modernization Initiative is also developing new ways of collecting performance information for programs.

In 2011-12, to improve efficiency and to achieve financial savings, the data acquisition strategy was supported by a departmental-wide consultation and an inclusive Research Plan was developed.

Maximization of Internal Services

The Internal Services Review (ISR) continued in 2011-12 as part of the department-wide Transformation Initiative. As a result of the review, internal services continue to be streamlined, standardized and better aligned with the Department's resource levels. The review also helped ensure that best practices and excellence in management are being integrated throughout the organisation, both at NHQ and in regions.

Following the creation of the RMDs in 2010-11, the Department continued to adjust to a new model of operations. The Department has used the RMDs to standardize its processes and tools and to integrate financial, procurement, human resources and administrative services to bring about measurable efficiencies.

Gender-Based Analysis

In 2011-12, Canadian Heritage completed its commitment to Phase II of the government-wide Gender-Based Analysis (GBA) Action Plan initiative by offering the research-specific training module, Using GBA in Research: An applied course on Gender-Based Analysis for researchers. The Department continues to participate in the Interdepartmental Community of Practice on GBA and is leading an interdepartmental working group in the development of another GBA training module.

Lessons Learned

The Department continued to manage the change in the organization, as 2011-12 continued to be a year of transition for Canadian Heritage. The Department remained committed to supporting employees, through the use of frequent and open communication during the Transformation Initiative which translated into a high level of moral because senior management approached the transformation with transparency, flexibility and respect for people. The Department’s approach for placements during the Transformation Initiative has been identified as a best practice in the federal public service.

The Department’s innovation led to accomplishments in other areas as well. An examination of operational processes resulted in the implementation of a departmental service model that merged administrative functions and that has improved efficiencies and money savings. The modernization of the grants and contributions programs that is currently underway will also lead to a delivery model that is more streamlined, functional and accountable.

Impacts on Financial and Human Resources Resulting from the Establishment of Shared Services Canada

2011-12 Financial Resources ($ millions)

	Planned Spending	Total Authorities*
* Pursuant to section 31.1 of the Financial Administration Act and Orders in Council P.C. 2011-0881, P.C. 2011-0877 and P.C. 2011-1297, this amount was deemed to have been appropriated to SSC, which resulted in a reduction in the appropriation for Canadian Heritage. ** Total authorities, as presented in the "2011-12 Financial Resources" table (and other relevant tables) in the "Summary of Performance" section, is the net of any transfers to SSC. Actual spending does not include expenditures incurred on behalf of SSC as of the OIC date.
Net transfer post Orders in Council (OIC)** to Shared Services Canada (SSC)	6.2	6.2

2011-12 Human Resources (FTEs)

	Planned	Actual
Deemed to SSC	17.3	13.2

Section III: Supplementary Information

Financial Highlights

The financial highlights presented within this Departmental Performance Report are intended to serve as a general overview of Canadian Heritage financial position and operations. The unaudited financial statements are prepared in accordance with accrual accounting principles. The supplementary information presented in the financial tables in this report was prepared on a modified cash basis of accounting to be consistent with appropriations-based reporting.

Condensed Statement of Financial Position (Unaudited)
($ thousands)
As at March 31, 2012

	Change %	2011-12	2010-11
Total net liabilities	(24%)	419,477	552,844
Total net financial assets	(23%)	394,496	514,367
Departmental net debt	(35%)	24,981	38,477
Total non-financial assets	(15%)	14,066	16,625
Departmental net financial position	(50%)	(10,915)	(21,852)

Condensed Statement of Operations and Departmental Net Financial Position (Unaudited)
($ thousands)
For the Year Ended March 31, 2012

	Change %	2011-12	2010-11
Total expenses	(1%)	1,320,279	1,332,152
Total revenues	4%	6,701	6,453
Net cost of operations before government funding and transfers	(1%)	1,313,578	1,325,699
Departmental net financial position	(50%)	(10,915)	(21,852)

Financial Statements

Full unaudited Financial Statements of the Department of Canadian Heritage for 2011-12, including the Statement of Management Responsibility Including Internal Control over Financial Reporting, are available at http://www.pch.gc.ca/eng/1349272778481.

Canadian Heritage Portfolio

The Portfolio Affairs Branch's responsibilities are the same regarding the existing portfolio organizations.

The Portfolio Affairs Branch assists the Minister and the Deputy Minister in carrying out their Portfolio responsibilities and supporting the Government's agenda. Its objective is to integrate horizontal policy issues, planning, reporting, allocation of financial resources, central agencies coordination, appointments, governance and strategic communications related to the Canadian Heritage Portfolio organizations.

List of Supplementary Information Tables

Electronic supplementary information tables listed in the 2011–12 Departmental Performance Report can be found on the Canadian Heritage website.⁵²

• Details on Transfer Payment Programs
• Greening Government Operations
• Horizontal Initiatives
• Internal Audits and Evaluations
• Response to Parliamentary Committees and External Audits
• Sources of Respendable and Non-Respendable Revenue
• Up-Front Multi-Year Funding
• User Fees Reporting

Section IV: Other Items of Interest

Financial Statements

Report on the Administration of the Investment Canada Act

Report on Annual Expenditures for Travel, Hospitality and Conferences

Organizational Contact Information

Address:
Canadian Heritage
15 Eddy Street
Gatineau, Quebec
K1A 0M5

Email: info@pch.gc.ca
Telephone: 819-997-0055
Toll-free*: 1-866-811-0055
TTY** (Toll-free): 1-888-997-3123

*The toll-free lines have agents available to answer your questions, Monday to Friday, 8:30 a.m. to 5:00 p.m. (Eastern Time).
**The TTY is a telecommunications device for people who are deaf, hard of hearing, or speech-impaired.

Additional Information

• Legislation related to Canadian Heritage
• Portfolio Crown corporations and other organizations
• Regional offices