2014-2015
Departmental Performance Report - Section 1

  

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Section I: Organizational Expenditure Overview

Organizational Profile

Minister: The Honourable Amarjeet Sohi, P.C., M.P.

Deputy Head: Jean-François Tremblay

Ministerial Portfolio: Minister of Infrastructure and Communities

As per the Order in Council P.C. 2014-144 dated February 10, 2014, the control and supervision of that portion of the federal public administration in the Department of Transport known as the Unit Responsible for Federal Bridges in the Region of Montreal, which includes the New Bridge for the St. Lawrence Corridor (NBSLC) project and oversight of the Jacques Cartier and Champlain Bridges Incorporated (JCCBI) was transferred from the Minister of Transport to the Minister of Infrastructure, Communities and Intergovernmental Affairs, and Minister of the Economic Development Agency of Canada for the Regions of Quebec, effective February 13, 2014.

Enabling Instruments:

Year of Incorporation / Commencement: The Office of Infrastructure of Canada was established in 2002.

Other: Infrastructure Canada (INFC) works in collaboration with other federal departments and agencies to deliver some of its transfer payment programs. These departments and agencies share their knowledge of local needs and priorities. INFC's federal delivery partners for certain sunsetting programs are:

  • Atlantic Canada Opportunities Agency;
  • Economic Development Agency of Canada for the Regions of Quebec;
  • Canadian Northern Economic Development Agency;
  • Federal Economic Development Agency for Southern Ontario;
  • Western Economic Diversification Canada; and
  • Transport Canada.

In addition, INFC works with PPP Canada (as public-private partnership (P3) advisors) for both the New Building Canada Fund (NBCF) and the NBSLC project which also works with Public Works and Government Services Canada (as the contract authority).

Organizational Context

Raison d'être

The key to building Canada for the 21st century is a strategic and collaborative long-term infrastructure plan that builds cities and communities that are economically vibrant, strategically planned, sustainable and inclusive. INFC works in partnership with all orders of government and other partners to enable investments in economic, social and environmental infrastructure as well as the infrastructure needed to increase trade and economic growth.

Responsibilities

Canada's public infrastructure forms the backbone of our nation and contributes to its quality of life. From the water we drink to the roads we drive on, infrastructure benefits all Canadians every day. Our systems of public infrastructure support strong communities and a resilient, competitive economy. Public infrastructure investments support economic growth and productivity by allowing goods and people to move more efficiently, facilitating trade activities, and promoting local and regional development.

Infrastructure Canada leads the Government of Canada's effortsFootnote 2 in addressing Canada's public infrastructure challenges. This is accomplished through three main activities: investing in provincial, territorial and municipal assets; engaging in key partnerships with the provinces, territories, municipalities, municipal associations, not-for-profit organizations and the private sector; and developing and implementing sound policies. Established in 2002, the Department helps to ensure that Canadians benefit from world-class public infrastructure from coast to coast to coast.

INFC delivers billions of dollars' worth of infrastructure investments through various cost-sharing arrangements (transfer payment programs). Certain arrangements leverage funding from other partners, such as provinces, territories, municipalities or the private sector to address national priorities as well as local and regional infrastructure needs. INFC uses various program models to deliver infrastructure funding, including direct contribution agreements with project recipients for large scale infrastructure projects and funding agreements with delivery partners (provinces, territories, and other federal departments) to administer community-based programming on INFC's behalf. These transfer payment programs operate under the New Building Canada Plan (NBCP), the 2007 Building Canada Plan (now in a later stage of its lifecycle), as well as earlier-announced sunsetting programs. In addition, the Gas Tax Fund (GTF) and the Provincial-Territorial Base Fund provides predictable and flexible funding to provinces, territories and municipalities to support their infrastructure priorities.

Through the New Building Canada Plan, the Government of Canada's investments span the country and cover priorities in all major public infrastructure categories. More information on the New Building Canada PlanEndnote vi can be found on INFC's website.

Furthermore, the Department works to ensure that large infrastructure projects are delivered in the most cost-effective manner possible. In some cases, Public-Private Partnerships (P3s) improve the delivery of public infrastructure for Canadians, and provide better value for money for taxpayers through performance-based contracts. A portion of the funding from the New Building Canada Plan goes to the P3 Canada Fund which is administered by PPP Canada, a federal Crown corporation.

INFC is the project authority charged with delivering the NBSLC project in Montreal, Quebec. In order to ensure safe and efficient transportation for commuters and commercial vehicles, the Government of Canada is committed to building a new bridge for the St. Lawrence to replace the existing Champlain Bridge, which is nearing the end of its useful life. INFC is responsible for ensuring that the new bridge is in service by December 2018, with the rest of the corridor to be completed by November 2019.This project is being carried out as a P3, allowing the Government to harness the innovation of the private sector to build the bridge on time and on budget, and providing better value for money for taxpayers and users.

Strategic Outcomes and Program Alignment Architecture

For 2014-2015, INFC's Program Alignment Architecture (PAA) was amended to include one Strategic Outcome and six Programs, as well as Internal ServicesFootnote 3 in support of its activities. During the 2014-2015 fiscal year, the PAA was further amended to include the NBSLC project following the transfer in February 2014. The Programs are discussed in detail in Section II of this report.

Strategic Outcome: Public Infrastructure for a More Prosperous Canada
  • 1.1 Program: Funding for Provincial-Territorial Priorities
  • 1.2 Program: Permanent and Flexible Public Infrastructure Funding
  • 1.3 Program: Investments in National Infrastructure Priorities
  • 1.4 Program: Large-Scale Infrastructure Investments
  • 1.5 Program: Infrastructure Investments in Smaller Communities
  • 1.6 Program: New Bridge for the St. Lawrence Corridor Project
  • Internal Services

The six Programs of the PAA outline the Department's key business lines and initiatives for 2014-2015. INFC has two distinct core business lines. Firstly, it provides flexible funding support for municipal, provincial and territorial infrastructure priorities and leverages funding for infrastructure projects, by partnering with and providing funding to provinces, territories, municipalities, municipal associations, not-for-profit organizations and private sector partners. Secondly, it is responsible for completing the NBSLC project.

Organizational Priorities

Priority 1 TypeFootnote 4 Strategic Outcome(s) [and/or] Program(s)
Work with partners to implement renewed Gas Tax Fund agreements New Program: Permanent and Flexible Public Infrastructure Funding
Summary of Progress for Priority 1

INFC negotiated and signed all renewed Gas Tax Fund agreements by early 2014-2015, and issued annual funding letters to each jurisdiction, ensuring a seamless transition.

By March 31, 2015, a total of $1.97 billion flowed to all provinces and territories under the Gas Tax FundEndnote vii.

Priority 2 Type Strategic Outcome(s) [and/or] Program(s)
Work with funding partners to implement the New Building Canada Fund New

Programs:

  • Investments in National Infrastructure Priorities
  • Large-Scale Infrastructure Investments
  • Infrastructure Investments in Smaller Communities
Summary of Progress for Priority 2

Following the launch of the New Building Canada Fund, in March 2014, INFC has made significant progress.

INFC has engaged with provinces and territories to identify priorities for federal funding under the New Building Canada Fund: Provincial-Territorial Infrastructure Component, National/Regional Projects. As of March 31, 2015, the Government of Canada has announced funding for 15 projects supporting economic growth, a cleaner environment and stronger communities.

During 2014-2015, under the Provincial-Territorial Infrastructure Component, Small Communities Fund, 26 projects were approved and $15.9 million of the $1 billion federal share was committed for this program.

Further, under the New Building Canada Fund: National Infrastructure Component, INFC received 14 business cases from proponents and announced funding support for two projects for priorities of national significance representing investments in port infrastructure and local regional airport infrastructure.

Priority 3 Type Strategic Outcome(s) [and/or] Program(s)
Work with funding partners in the continued implementation of existing programs, while providing prudent stewardship and oversight of these programs Ongoing

Programs:

  • Funding for Provincial-Territorial Priorities
  • Investments in National Infrastructure Priorities
  • Large-Scale Infrastructure Investments
  • Infrastructure Investments in Smaller Communities
Summary of Progress for Priority 3

INFC worked with provincial, territorial and municipal governments, as well as non-governmental recipients to identify new infrastructure projects, commit remaining funds and advance projects through the approval and funding agreement negotiation process, while ensuring prudent stewardship and oversight.

In addition, INFC ensured proper file closure for projects under the 2007 Building Canada Plan and other sunsetting programs, including project and program audits and evaluations, as required. INFC used a streamlined process and effective oversight, working with provinces and territories, to commit the remaining funds and to ensure the timely completion of projects currently underway.

Priority 4 Type Strategic Outcome(s) [and/or] Program(s)
Continue to implement operational efficiencies in the effective delivery of the Department's mandate Previously committed to

Programs:

  • Funding for Provincial-Territorial Priorities
  • Permanent and Flexible Public Infrastructure Funding
  • Investments in National Infrastructure Priorities;
  • Large-Scale Infrastructure Investments
  • Infrastructure Investments in Smaller Communities
  • Internal Services
Summary of Progress for Priority 4

In 2014-2015, INFC continued to develop tools, frameworks, streamlined processes and approaches to ensure the appropriate review and due diligence with respect to New Building Canada Fund (NBCF) projects.

In an effort to streamline processes and increase efficiencies, INFC undertook a Lean exercise of four key processes related to Human Resources, Information Management, Internal Audit, and transfer payment claims.

The launch of the NBCF provided an opportunity to standardize and integrate pre-approval risk-assessments with current reporting tools. It is anticipated that the use of this tool will build upon lessons learned, will reduce duplication in terms of development and maintenance of information management tools, and will lead to increased collaboration between INFC and Transport Canada.

Risk Analysis

For the 2014-2015 fiscal year, Infrastructure Canada originally identified three risks to the achievement of its Strategic Outcome. In the fall of 2014, the Department amended its Corporate Risk Profile to reflect the transfer of responsibility of the New Bridge for the St. Lawrence Corridor (NBSLC) project from Transport Canada, to INFC.

INFC applies a comprehensive approach to identify, assess and manage risks at the strategic, operational, program and project levels. This approach includes conducting regular environmental scans with direct participation of the INFC Senior Management. In order to improve the integration between risk management and corporate planning, INFC also established new linkages between the elements of the Corporate Risk Profile and branch-level planning components contained in the Integrated Business Plan.

Key Risks
Risk Risk Response Strategy Link to Program Alignment Architecture
Timely launch of the New Building Canada Plan programsFootnote 5

Launched on March 28, 2014, the NBCF officially opened for business allowing new projects to be identified and approved in fiscal year 2014-2015.

INFC also worked with provinces, territories, municipalities and municipal associations to ensure that all agreements for the permanent Gas Tax Fund (GTF) were signed on time to allow the 2014-2015 payments to flow. Negotiations for the renewed GTF were completed and agreements signed with all jurisdictions by July 31, 2014. INFC continues to work with partners to implement these agreements, supporting the infrastructure priorities of Canadian communities.

  • Permanent and Flexible Public Infrastructure Funding
  • Investments in National Infrastructure Priorities
  • Large-Scale Infrastructure Investments
  • Infrastructure Investments in Smaller Communities
The number of current and future large scale whole-of-government IM/IT initiatives may impact the Department's ability to react quickly and nimbly to other internal business pressures that require timely IM/IT solutions and ongoing service availabilityFootnote 6.

INFC continued to foster a strong relationship with Shared Services Canada (SSC) by holding regular meetings (e.g., monthly DG-level meetings, bi-weekly meetings with the SSC Account Executives and Service Delivery Executives) and by communicating early to SSC the IM/IT requirements contained in its departmental plan.

Further, IM/IT implemented processes to effectively engage SSC to ensure the most efficient correction of issues during the SIMSI Migration Project. As a result, this project was successfully completed.

IM/IT has also completed the Program Information Management System (PIMS) project, which was launched in April 2014 to support the NBCF. Final phases of this project were completed in March 2015.

Finally, planning, staffing and procurement actions have been taken to ensure adequate resources to support the delivery of IM/IT plans and initiatives.

  • Internal Services

The Department's ability to deliver the NBCF and future programs could be diminished and lead to delays in providing timely infrastructure funding given factors such as the three-year cap on its operating budget and need to maintain sufficient capacityFootnote 6

INFC implemented key strategic actions from its Integrated Business and Human Resources Plan to increase its capacity to deliver infrastructure programs and implement new government-wide initiatives. Human Resources has consulted with Branch heads to identify critical positions requiring immediate staffing actions. INFC also continued to provide employees with sufficient developmental opportunities. For example, Human Resources launched a talent management program and continued to manage an inter-departmental mentoring program. Furthermore, internal Information sessions, titled INFRA Recess, were introduced in 2014-2015 to allow employees with expertise in any work-related subject to volunteer to lead sessions.

INFC also adapted its organizational structure to ensure proper alignment of its resources to effectively deliver on its priorities. Senior Management approved a revised governance structure for improved decision-making capacity.

  • Internal Services

Timely delivery of the New Bridge for the St. Lawrence Corridor ProjectFootnote 7

INFC focused on concluding agreements with governmental and municipal entities. Negotiations to obtain signed agreements with the Government of Quebec, the municipalities and other entities deemed relevant are well underway.

New Bridge for the St. Lawrence Corridor Project

The Project Review Panel (PRP) provides assurance to the Deputy Minister, and the Minister that, for each project, an independent challenge function is performed by senior management (includes the Assistant Deputy Minister of Policy and Communications, the Assistant Deputy Minister of Program Operations, the Assistant Deputy Minister of Corporate Services and the Chief Financial Officer (CFO) and two independent external members). It also provides assurances that the delegated authority for the Minister to proceed without TB approval is documented and fully justified. The PRP has proven to be an effective means of providing the Minister with a high level of assurance that all pertinent factors related to a project's risk have been assessed. The PRP has demonstrated its capacity to review, perform its challenge function and either send back or recommend for approval a large number of projects within a short period of time. In addition, projects which have been assessed and recommended for Ministerial approval through PRP have been successfully implemented taking into account all risk mitigation measures. The PRP reviews projects at two stages: first, to recommend the project for approval-in-principle to the Minister, and second, before the legally binding contribution agreement is signed. In Fiscal Year 2014-15, the PRP reviewed 13 projects under the NBCF, 28 projects under the BCF-MIC, and 2 under the GIF.

Actual Expenditures

Budgetary Financial Resources (dollars)
2014-20145 Main Estimates 2014-2015 Planned Spending 2014-2015 Total Authorities Available for Use 2014-20145 Actual Spending (authorities used) Difference (actual minus planned)
3,321,597,771 3,321,597,771 3,713,614,655 3,095,882,113 (225,715,658)
Human Resources (Full-Time Equivalents [FTEs])
2014-2015 Planned 2014-2015 Actual 2014-2015 Difference (actual minus planned)
Not ApplicableFootnote 8 333 Not ApplicableFootnote 8

Infrastructure Canada's program design recognizes the provincial, territorial and municipal responsibility for a majority of public infrastructure, and the Department's participation as a funding partner. Accordingly, Infrastructure Canada is not responsible for the management of infrastructure projects, with the exception of the NBSLC. More specifically, in the case of its contribution programs, Infrastructure Canada reimburses eligible expense claims submitted by the recipients – the project managers. As such, it is important to note that the Department's cash flows almost always lag behind the actual rate of construction of projects. Work begins upon project approval: contracts are put in place, plans drawn up, materials are ordered and construction starts. While the Department commits funds upon project approval, federal funding does not actually flow to recipients until they have submitted claims for actual costs incurred. This is a key risk-management approach for the Department, one that ensures that it only pays for work that has already been undertaken. This also means that Infrastructure Canada performance results are directly affected by project proponents' schedules, which may change. In particular, INFC Programs targeting large-scale projects can experience delays due to factors that are outside the Department's control such as inclement weather, technical or other construction-related complexities.

The Department works continually with provinces, territories, municipalities and other partners to ensure that forecasts are as accurate as possible, and to reprofile Infrastructure Canada's funding to meet the needs of its partners.

Budgetary Performance Summary for Strategic Outcomes and Programs (In Dollars)
Strategic Outcomes, Programs and Internal Services 2014–2015 Main Estimates 2014–2015 Planned Spending 2015-2016 Planned Spending 2016-2017 Planned Spending 2014–2015 Total Authorities Available for Use 2014–2015 Actual Spending (authorities used) 2013-2014 Actual Spending (authorities used) 2012-2013 Actual Spending (authorities used)
Strategic Outcome: Public Infrastructure for a More Prosperous Canada
Funding for Provincial-Territorial Priorities 55,351,611 55,351,611 91,061,247 31,890,514 62,678,546 25,078,120 191,464,385 236,858,957
Permanent and Flexible Public Infrastructure Funding 1,973,411,002 1,973,411,002 1,976,213,928 2,074,891,927 1,974,402,893 1,974,387,706 2,107,905,313 1,965,101,267
Investments in National Infrastructure Priorities9 193,145,913 193,145,913 148,607,942 263,432,775 251,121,321 139,119,440 See footnote 9 See footnote 9
Large-Scale Infrastructure Investments9 958,832,530 958,832,530 1,174,990,518 1,214,341,987 1,078,295,752 787,479,954 See footnote 9 See footnote 9
Infrastructure Investments in Smaller CommunitiesFootnote 9 139,431,232 139,431,232 171,319,905 204,271,622 184,946,167 92,993,364 See footnote 9 See footnote 9
New Bridge for the St. Lawrence Corridor Project 0Footnote 10 0Footnote 10 42,661,977 0Footnote 11 124,863,136 40,687,967 See footnote 10 See footnote 10
Programs under Former PAA 0 0 0 0 0 0 1,179,051,643 1,508,590,450
Sub-Total 3,320,172,288 3,320,172,288 3,604,855,517 3,788,828,825 3,676,307,815 3,676,307,815 3,478,421,341 3,710,550,674
Internal Services Sub-Total 1,425,483Footnote 12

1,425,483Footnote 12

28,407,230 27,932,752 37,306,840 36,135,562 35,404,150 42,105,718
Total 3,321,597,771 3,321,597,771 3,633,262,748 3,816,761,576 3,713,614,655 3,095,882,113 3,513,825,491 3,752,656,392

INFC provides significant funding for some large, complex projects which can result in variance in programs 1.3 for national infrastructure priorities and 1.4, large infrastructure investments. It is typical for some of these projects to require a significant amount of upfront planning, design and procurement. For these programs as well as for program 1.5 for smaller communities, even once construction has started, a number of factors beyond the control of funding recipients can result in lower spending than forecasted. These factors range from lower-than-anticipated project costs to project delays as a result of inclement weather, technical and other construction-related complexities. It is also important to note that the disbursement of federal contributions follows the actual construction of projects as recipients are reimbursed for incurred expenditures only once they submit claims.

Alignment of Spending With the Whole-of-Government Framework

Alignment of 2014-2015 Actual Spending with the Whole-of-Government FrameworkEndnote viii (dollars)
Strategic Outcome Program Spending Area Government of Canada Outcome 2014-2015
Actual Spending
Public Infrastructure for a More Prosperous Canada Funding for Provincial-Territorial Priorities Economic Affairs Strong Economic Growth 25,078,120
Permanent and Flexible Public Infrastructure Funding Economic Affairs Strong Economic Growth 1,974,387,706
Investments in National Infrastructure Priorities Economic Affairs Strong Economic Growth 139,119,440
Large-Scale Infrastructure Priorities Economic Affairs Strong Economic Growth 787,479,954
Infrastructure Investments in Smaller Communities Economic Affairs Strong Economic Growth 92,993,364
New Bridge for the St. Lawrence Corridor Project Economic Affairs Strong Economic Growth 40,687,967
Total Spending by Spending Area (dollars)
Spending Area Total Planned Spending Total Actual Spending
Economic Affairs 3,320,172,288 3,059,746,551

Note: The Total Planned Spending number provided in this table does not include expenses made by the Department under its Internal Services.

Departmental Spending Trend

In 2014-2015, INFC's actual spending was nearly $3.1 billion on infrastructure investments under its Programs to meet the expected program results and contribute to its Strategic Outcome.

Figure 1: Departmental Spending Trend

Figure 1: Departmental Spending Trend

* Voted is comprise of sunsetting programs (time-limited programs that do not have an ongoing funding nor policy authority) and includes the New Building Canada Fund programs; Provincial-Territorial Infrastructure Component-National and Regional Projects (PTIC-NRP), Provincial-Territorial Infrastructure Component-Small Communities Fund (PTIC-SCF) and the National Infrastructure Component (NIC) and, the New Bridge for the St. Lawrence Corridor Project.
** Statutory (Gas Tax Fund) includes both Voted Spending and Statutory Spending. Until March 31, 2014 the program was Voted Spending, and as of April 1, 2014 spending under this program became Statutory Spending.

Departmental spending has decreased from approximately $3.7 billion and $3.5 billion in 2012-2013 and 2013-2014 respectively to nearly $3.1 billion in 2014-2015, as sunsetting programs are approaching completion.

In 2014, the GTF became statutory with spending at around $2 billion a year. As announced in Budget 2013, a new wave of programs under the NBCF was introduced, and formally launched in March 2014. Spending under the NBCF programs started in 2014-2015 with funding obtained through 2014-2015 Supplementary Estimates.

Estimates by Vote

For information on INFC's organizational voted and statutory expenditures, consult the Public Accounts of Canada 2015ix, which is available on the Public Works and Government Services Canada websitex.

Footnotes

Footnote 1

The project is also commonly referred to as the New Champlain Bridge Corridor Project.

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Footnote 2

The Department along with other federal departments and agencies such as Transport Canada, Finance Canada, PPP Canada, Aboriginal Affairs and Northern Development, Atlantic Canada Opportunities agency, Economic Development for the Regions of Quebec, Federal Economic Development Agency for Southern Ontario, the Western Economic Diversification Canada and the Royal Canadian Mounted Police provide federal support for provincial, territorial and municipal infrastructure as shown in Figure#nbsp;3.

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Footnote 3

Internal Services funding includes operating funding for core administration and program delivery.

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Footnote 4

Type is defined as follows: previously committed to—committed to in the first or second fiscal year prior to the subject year of the report; ongoing—committed to at least three fiscal years prior to the subject year of the report; and new—newly committed to in the reporting year of the Report on Plans and Priorities or the Departmental Performance Report.

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Footnote 5

As this risk has been fully mitigated, it was removed during the update process leading to the Amended 2014 Corporate Risk Profile.

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Footnote 6

The focus of this risk was changed during the update process leading to the Amended 2014 Corporate Risk Profile. Therefore the wording is slightly different from the wording used in the 2014-2015 RPP.

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Footnote 7

New risk introduced to reflect the transfer of responsibility of the New Bridge for the St. Lawrence Corridor project from Transport Canada to INFC.

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Footnote 8

The 2014-2015 Report on Plans and Priorities did not present Planned FTEs indicating that this was to be determined. INFC was in the process of obtaining approval for its operating budget for 2014-2015 and beyond. The current operating budget was subsequently approved on March 27, 2014.

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Footnote 9

There were no expenditures under these programs in 2012-2013 and 2013-2014, as until March 31, 2014 INFC had a different Program Alignment Architecture (PAA) structure. The Department's current PAA structure came into effect on April 1, 2014.

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Footnote 10

Although no planned spending was included in INFC's 2014-2015 Main Estimates, nor planned spending and human resources (HR) requirements included in the 2014-2015 RPP, planned spending and HR requirements were estimated when the NBSLC project was under Transport Canada's responsibility. The NBSLC project was transferred to the Minister of Infrastructure and Communities' responsibility from the Minister of Transport on February 13, 2014 through Order-in-Council.

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Footnote 11

There is currently no 2016-2017 Planned Spending expenditures for this program. Funding for this program in 2016-2017 is expected to be obtained through 2015-2016 Supplementary Estimates processes.

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Footnote 12

Internal Services funding amounts for 2014-2015 Main Estimates and 2014-2015 Planned Spending do not reflect funding for Infrastructure Canada's operating budget. These amounts represent opening balances only, as operating budget amounts for 2014-2015 and beyond had not yet been confirmed.

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