The year 2018 marked a significant milestone for the AGCO – it commemorated the agency’s 20-year anniversary, which was celebrated with pride on February 22^nd, 2018. It has been another busy and rewarding year for the AGCO. This Business Plan outlines the agency's accomplishments over the past year, including the transformative changes the AGCO has undergone to advance its agenda to modernize its regulatory approach, business processes and workplace environment. The Business Plan also sets out the path forward for 2019/20 - 2020/21, which promises to be another exciting chapter in the AGCO’s ongoing history.

The Ontario Government has clearly communicated its support for enhancing economic development in Ontario, in part, through the reduction of administrative and regulatory burden on businesses. The Alcohol and Gaming Commission of Ontario (AGCO) is in the process of continuing a major transformation to improve services and increase flexibility while continuing to regulate these industries to ensure they operate with honesty and integrity and in the public interest. As it develops and implements the licensing structure for storefront recreational cannabis, these goals are top of mind.

The AGCO’s Strategic Plan has been refreshed to establish three strategic goals for the organization: Modern Regulator, Service Excellence and People-Centric. These goals are aligned with and support the achievement of key government objectives for enhanced accountability and efficiency in the delivery of public services, evidence-based decision making and policy development, reducing the administrative burden on businesses, and increasing consumer choice.

The continued transition to a risk-based, outcomes-based and compliance-focused approach to regulation, as well as the implementation of this model in the cannabis sector, has provided greater flexibility for regulated entities in terms of how they achieve regulatory compliance. At the same time, these approaches have also enabled the AGCO to more effectively manage risks, while prioritizing resources to ensure its approach to regulation is fair and responsive and protects the public interest.

The AGCO continues its commitment to strategic engagement as a key aspect of how it does business. This strategy has enhanced stakeholder awareness about major corporate initiatives and has been leveraged as a means of consensus-building for the development of evidence-based policy. This approach has aided the AGCO in its support of significant government objectives, including the harmonization of Sunday hours for liquor sales.

Going forward, modernization efforts in accordance with the AGCO Strategic Plan will continue to be realized through a number of significant initiatives, most notably the ongoing implementation of iAGCO, the AGCO’s new electronic service delivery platform that supports licensing, permits and registrations for its regulated sectors. As of November 19, 2018, Ontario’s lottery and gaming registrants can now conduct all of their transactions with the AGCO online. Preparations are underway to launch cannabis and horse racing phases of implementation in the coming year. As of early 2019, iAGCO functionality will allow for the online application and issuance of all liquor licenses.

As the AGCO enters the first year of its new five-year Strategic Plan, the organization is refocussing on the new strategic goals, while continuing to evolve its regulatory and business functions in support of government objectives. The AGCO continues to strive to successfully meet its ever-expanding regulatory mandate within Ontario’s complex alcohol, gaming, horse racing, and storefront retail cannabis sectors.

During the last year, the AGCO accomplished a number of key achievements in support of the AGCO’s Strategic Goals and Business Plan commitments, the following include a few highlights:

Modern regulator

• The AGCO has been moving quickly to define the licensing process for private cannabis retailers once the legislation has been enacted and will work closely with the government to support the goal of having these retailers licensed and open for business in April 2019.
• Working with the Ontario Lottery and Gaming Corporation (OLG) to implement the overall modernization strategy, including transitioning new Casino Operators, and supporting key components of the OLG Player Platform and Lottery Modernization Strategy;
• Amendment of several policies for liquor manufacturers: removal of the cap on value-add promotions; no longer mandating licensed off-site winery retail stores to be closed during certain holidays; extension of by-the-glass licensing to include distilleries; expansion of wine sales at Farmers’ Markets to include honey and maple wine; and permitting the sale of ICB wine at on-site wiry retail stores (blend of imported/domestic) and most recently the harmonization of Sunday hours for liquor retailers;
• As part of the “Moving Ahead: Horse Racing Regulation in Ontario” project, and following extensive consultation with Ontario’s horse racing industry, the AGCO implemented changes to the Equine Drug Program process and changes to the Rules of Racing, including the introduction of a Temperature Standard for Race Tracks. The updated rule books were published in fall 2018.  An online version of the rule book is also being developed and scheduled for launch in 2019.
• Broadening the Electronic Raffle Regulatory Framework as part of the launch of Phase 2 in November 2018, in order to reduce the administrative burden on Ontario charities and religious organizations, and to provide them with greater flexibility when conducting and managing raffles.

Service Excellence

• The continued modernization of the AGCO service delivery model through the phased implementation of the iAGCO web-based portal included the implementation of new phases in 2018.
  • Phase 2 went live in January 2018, and included Liquor Sales Licences, and other liquor licensing applications such as Manufacturer’s Representatives, Ferment on Premises and Liquor Delivery services.
  • Phase 3 iAGCO services for Gaming Assistants and Lottery Retailers, among others, went live in November 2018.

• A new Complaints and Inquiries Handling Policy was launched to clarify how complaints and inquiries should be received and responded to at the AGCO, and to affirm the intention of the AGCO to use information from complaints and inquiries to support continuous improvement.  
• Designing and delivering a number of educational webinar sessions to industry stakeholders affected by new policy directives.

People-Centric

• Under the organizational design initiative, the AGCO is examining the optimal structure for the agency and to identify ways to help it to be more flexible, dynamic, and agile.  The aim is to make sure the organization is structured to support the best possible delivery of services and strategic priorities, and able to anticipate and support future internal and external disruption and change.
• The first stage of the Remote Work Arrangements program was launched to provide a structure for employees to be able to work from an alternate work location part of the time, when appropriate to their duties and functions.
• As part of the AGCO Next initiative that is about internally transforming the agency, employees were invited to create and deliver a ‘NEXT Talk’ presentation related to a specific theme. Two successful talks were delivered based on the themes ‘making connections that matter’ and ‘empowering people and fostering growth’.
• In response to the Employee Engagement Survey results the AGCO committed to developing action plans to build on two corporate themes. The first is ‘opportunities to have ideas adopted and put into use’, and the second is ‘efficient and effective work structures and processes’.
• Successfully held the first-ever AGCO virtual Town Hall series to connect with AGCO staff across the province over the course of one week, through a combination of live streaming interactive sessions, themed days with customised content, recorded presentations and a social media platform to respond to questions.  The approach was a modern and cost-effective way to engage employees across the province.

Since its inception in 1998, the AGCO’s mandate has continuously evolved in support of the general overall growth of the liquor, gaming, and, more recently, horse racing and storefront recreational cannabis sectors in Ontario. Doing so has required that the AGCO’s regulatory approach remain nimble and adaptive to ensure these sectors continue to be regulated effectively and efficiently, while always ensuring that the AGCO is acting in the public interest and in accordance with the principles of honesty, integrity, and social responsibility as prescribed in the AGCO’s governing legislation.

The AGCO Strategic Plan articulates the vision, goals and key commitments the agency has made to fulfill the regulatory mandate and to support the achievement of the priorities outlined by the Ontario Government: 

• Working harder, smarter and more efficiently;
• Reducing the regulatory burden; and
• Respecting consumers to make the responsible choices that work best for them.

As a provincial Crown agency that reports to the Ministry of the Attorney General, the AGCO’s People-Centric strategic goal aligns with MAG’s values of collaboration, respect, integrity and inclusion. The strategic goal of Service Excellence reflects MAG’s own commitment to service excellence, as well as the Ministry’s commitment to accountability. MAG’s vision of an innovative, sustainable and responsive justice system that inspires public confidence and upholds the rule of law inspired the AGCO’s own vision of being a world class regulator that is proactive and socially responsible.

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The AGCO oversees, promotes and enforces compliance with its legislation while protecting the public’s interests in accordance with the principles of honesty, integrity and social responsibility, and in alignment with government and ministry priorities. The following core activities enable the AGCO to effectively fulfill its mandate in Ontario’s alcohol, gaming, horse racing and storefront recreational cannabis sectors:

• Licensing and regulating establishments that sell or serve liquor, liquor delivery services, liquor manufacturers, their representatives and representatives of foreign manufacturers, and ferment on premise facilities.
• Administering the Special Occasion Permit program.
• Authorizing manufacturers’ retail stores, which includes on-site and off-site winery retail stores, on-site distillery retail stores and brewery retail stores, and Brewers Retail Inc. stores (“The Beer Store”).
• Authorizing grocery stores to retail alcohol to the public.
• Registering operators, suppliers, retailers/sellers and gaming assistants in the lottery and gaming sectors.
• Administering, in partnership with municipalities and First Nations licensing authorities, the regulatory framework governing the issuance of charity lottery licences (e.g. bingo, raffle and break open ticket events).
• Licensing games of chance at fairs and exhibitions.
• Approving rules of play or changes to rules of play for games of chance conducted and managed by the Ontario Lottery and Gaming Corporation (OLG).
• Excluding persons from accessing gaming premises in Ontario pursuant to the Gaming Control Act, 1992.
• Regulating the conduct of horse racing conducted at Ontario’s licensed racetracks through the Rules of Racing for thoroughbred, standardbred and quarter horse breeds, and exercising authority for the overall governance of horse racing in Ontario.
• Promoting safety and consistency for both horse racing participants and the equine athletes.
• Licensing individuals and businesses involved in the horse racing industry, including the processing of applications from racing participants and for racetracks and teletheatre locations and conducting due diligence reviews and investigations of applicants.
• Licensing and regulating participants in the storefront recreational cannabis, including retail operators; retail managers; and store locations.

Compliance Activities

• Inspecting and monitoring licensed establishments to ensure compliance with the Liquor Licence Act and regulations.
• Inspecting and monitoring authorized grocery stores for compliance with the Liquor Licence Act, Regulation 232/16 under the Liquor Control Act and relevant terms and conditions.
• Inspecting and monitoring casinos, charitable gaming events/facilities and retail locations where OLG lottery products are sold for compliance with the Gaming Control Act, 1992 and its regulations, licence/registration requirements and standards and requirements established by the Registrar of Alcohol, Gaming and Racing.
• Testing, approving and monitoring slot machines and gaming and lottery management systems.
• Proactively providing education to all sectors and to those who are regulated, to increase their understanding of regulatory obligations and to improve overall compliance.
• Investigating alleged horse racing violations, horse abuse, race fixing or other racing and rule infractions, as well as investigating horse deaths.
• Ensuring an Official Veterinarian is in attendance to supervise live racing and confirm that horses are healthy and fit to race.
• Monitoring and enforcing the Equine Medication and Drug Control Program including identification and investigation of people and businesses involved directly and indirectly with illegal equine medication and drugs, as well as identifying new and unknown drugs and medication being used in horse racing.
• Administering and overseeing the Human Alcohol and Drug Program for horse racing participants which is designed to detect and deter substance abuse and to offer programs of intervention, rehabilitation and support to those identified as having substance abuse problems.
• Supporting the health and welfare of horses and horse racing participants.
• Ensuring the safe, responsible and lawful sale of cannabis, consistent with the Cannabis Licence Act, 2018.

Appeals

• Hearing appeals of rulings made by Judges, Stewards and Racing Officials under the Rules of Racing (note this responsibility lies with the Horse Racing Appeal Panel, which is an independent adjudicative tribunal, the members of which are appointed by the AGCO Board).

Arbitration

• Conducting arbitration of lottery disputes.

The liquor, gaming, horse racing, and cannabis sectors in Ontario have become increasingly complex, global and dynamic. This reality challenges the AGCO to adapt its regulatory approach while maintaining a high degree of public confidence in fulfilling its regulatory mandate in these sectors. In particular, these sectors operate within a multifaceted social and economic context where business considerations need to be balanced with public safety and public health issues related to liquor, cannabis, gambling and horse racing. The AGCO aims to balance the views and interests of industry, social responsibility stakeholders and government when considering and recommending changes to legislation, regulations or policy and when establishing programs and strategies for regulating these sectors.

As with other public sector organizations, the AGCO faces the challenge of managing an expanding mandate, often without a corresponding expansion of resources. In the last few years, the AGCO has taken on new industries, assuming responsibility for the regulatory responsibilities of the horse racing industry and private cannabis retailers, as well as new programs, including the ongoing expansion of beer, wine, and cider sales in grocery stores.  At the same time, public expectations and the AGCO’s visibility continue to rise, making it even more imperative that the AGCO regulate effectively. These new challenges underline the importance of focusing regulatory attention on higher-risk areas, so that the AGCO is better equipped to navigate a changing environment.

The AGCO recognizes that capable and motivated employees are critical to achieving business objectives and increasing capacity to better deliver services. As a result, the AGCO is committed to fostering a work environment where:

• Employees believe that their contributions are valued;
• Employees are supported by their managers;
• Managers are focused on achieving outcomes as opposed to task-based management; and
• Creativity and openness in giving and receiving feedback are encouraged.

Strategy and Alignment

The AGCO continues to work on strengthening the skills and abilities of AGCO staff as the agency works through transformation and change. In order to support these initiatives, the AGCO is introducing new processes and building on existing ones. The following are examples of the initiatives underway:

• Talent Acquisition: Transforming how the AGCO source, recruit and hire talent.
• Diversity and Inclusion Plan: Continually monitoring the workplace and identifying new opportunities to promote a diverse and inclusive workplace.
• Health & Wellness: Moving the AGCO’s wellness strategy forward and identifying new ways to promote a healthy lifestyle.
• Leadership Development: Developing leaders through AGCO’s coaching program and move towards leaders becoming certified coaches.
• Modernize Human Resources: Implementing systems to support performance management and electronic file management.
• Supporting AGCO Initiatives: Providing strategic human resources supports to leaders and staff to for corporate initiatives.
• Total Health Index: Developing and implementing strategies to improve coping and resiliency skills and strengthen leadership effectiveness.

Talent Acquisition

AGCO’s workforce demographics are also changing as 86% of the senior executive team and 24.7% of staff across the organization are eligible for retirement in the next five years. Ensuring that the leaders and staff possess the requisite skills through knowledge transfer and succession planning is essential, particularly as AGCO continues its organizational transformation.

In addition to streamlining processes, the AGCO is also undertaking a review of how it sources, recruits, and trains staff, particularly leaders. The AGCO has adopted a new approach to hiring management for organizational fit and is aligned to the Manager 2020 corporate initiative which is focused on developing and recruiting leaders to be people-centric over being process focused. Furthermore, the AGCO is shifting its management culture to focus on placing managers in leadership roles based on their ability to effectively manage people, and not solely based on their technical expertise.

The talent acquisition process has been streamlined and automated through the introduction of a new applicant tracking/talent acquisition software product.  This system provides improved and efficient internal processes and reduced time to screen candidates applying to AGCO vacancies.

Organizational Chart (as of December 20, 2018)

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Staff Numbers

The total number of AGCO employees is determined by adding the number of active employees employed as of the end of a month.  Employees on a leave of absence are included in the headcount.  Employees on long-term disability are excluded.  This chart provides a breakdown of headcount by employment status.^[1]

AGCO Headcount^[2]

AGCO’s Information Technology plan will continue to focus on building and maturing its strategy around electronic service delivery.

With the initial 3 phases of iAGCO completed, a number of legacy systems centered around liquor and gaming have been migrated to iAGCO. In addition to being the future platform for multiple legacy systems, the iAGCO platform will be the core electronic service delivery enabler in the organization’s ability to implement the new Cannabis Retail line of business.

Through the implementation of iAGCO, customers across all lines of business with have the ability to conduct their business with AGCO online. By the end of January 2019, all applications processed through iAGCO, will be processed online.  This is a stark contrast to the paper-based forms required for processing with the supporting legacy systems.

AGCO’s Regulatory Intelligence (RI) Platform will be a key contributor in the agency realizing its strategic goal of becoming a modern regulator. RI will help provide valuable insight into the sectors we regulate, supporting AGCO’s risk-based approach to regulation.

Quality data is central to the enablement of our analytics capabilities. As a result, AGCO will be expanding the development of a Data Governance practice to ensure the improvement and integrity or our data assets as well as maximizing availability.

The mobility of the AGCO’s workforce is becoming a key differentiator and supporting our goal of being a Modern Regulator, both in terms of remote work strategies and increasing mobile access to accurate, timely and relevant data in the field.

As AGCO continues to evolve as a Modern Regulator, AGCO is developing a data centre strategy that will support the organization’s operational and strategic requirements today and into the future. Leveraging the most appropriate platforms to provide the agility and resilience our constituents have come to expect.

The AGCO remains committed to developing new partnerships with third parties nationally and internationally and will continue to foster existing relationships through available channels. Within Ontario, the AGCO continues to partner and engage across the alcohol, cannabis, gaming and horse racing sectors.

In January 2018, the AGCO successfully launched the second phase of its electronic service delivery channel, iAGCO. As such, all alcohol-related licensing transactions by the AGCO are now available online through the iAGCO web-based portal. In April 2018, the AGCO successfully ended the transition period for paper-based applications impacted by Phase 1 iAGCO roll out. The AGCO has worked closely with the LCBO to provide continual service for applicants during the transition phase. The AGCO continues to meet with the LCBO on a regular basis to ensure continued quality service experiences for licensees and authorization holders.  

The AGCO continues to organize and execute significant stakeholder engagement activities across all sectors it regulates. One example is through working groups with membership from a range of third-party representatives including the horse racing, liquor, gaming, cannabis and social responsibility sectors. Regular meetings and communication with these groups has helped the AGCO to maximize its ability to be responsive to stakeholder needs, feedback and public interests. Other examples of stakeholder engagement activities planned for the upcoming year include the continual implementation of the municipal engagement strategy that has provided an opportunity for the AGCO to build its relationship with and engage more regularly in a coordinated manner with its stakeholders at the municipal government level.

In addition to leading its own stakeholder engagement activities, the AGCO continues to actively participate in stakeholder and industry association meetings and conferences in an effort to promote a two-way dialogue with the sectors that it regulates. Some of the conferences the AGCO has participated in include but are not limited to the Ontario Craft Brewers Conference, Canadian Restaurant and Bar Show, the 2018 Municipal Licensing and Law Enforcement Forum, and the Canadian Gaming Summit.  The AGCO anticipates participating in these events again in the upcoming year.    

The AGCO will remain committed to building and maintaining partnerships with law enforcement agencies across Ontario. Whether through regular contact with members of the OPP Bureau assigned to the AGCO, specialized educational seminars and materials on liquor and cannabis enforcement for front-line police officers, or information sharing on liquor, cannabis, gaming and horse racing investigations, the AGCO values their partnerships with law enforcement agencies.

Internationally, the AGCO continues to be a well-respected member organization of both the International Association of Gaming Regulators (IAGR) and the North American Gaming Regulators Association (NAGRA). In addition, the AGCO often receives requests from international delegations to learn about the organization and the AGCO’s regulatory approach.  For example, this year the AGCO hosted the Casino Regulatory Authority of Singapore and the Government of Japan.

Nationally, the AGCO is a member organization of the Association of Liquor Licensing Authorities of Canada (ALAC), the Canadian Partnership for Responsible Gambling (CPRG), the Canadian Association of Gaming Regulatory Agencies (CAGRA) and other regulatory associations. The AGCO is looking at ways to engage with provincial and international colleagues in the cannabis regulation sphere. The AGCO is committed to engaging with other regulators in Ontario and abroad on pursuing additional MOUs and formal agreements of cooperation where opportunities exist to support greater collaboration or support the regulatory outcomes of each party.

The AGCO has committed to engaging with its diverse stakeholder network to ensure the implementation of iAGCO, and the new regulatory framework for retailing recreational cannabis meets the needs and interests of those being regulated as well as the AGCO’s own requirements from a regulatory perspective.

The AGCO’s Diversity, Inclusion and Accessibility Plan supports the agency’s progress towards meeting the Strategic Goals outlined in the AGCO’s Strategic Plan. Building a culture of inclusion as an employer and service supplier aligns with the Strategic Goals of creating a Rewarding Workplace and providing a Quality Service Experience. 

In addition, this strategy will help the AGCO to fulfill its broader mandate to regulate the alcohol, gaming and horse racing sectors in accordance with the principles of honesty and integrity, and in the public interest by ensuring that accessibility and inclusion are fundamental to the agency’s operations. In 2016, the AGCO made a significant effort to increase awareness by delivering “cultural competency” training to all staff and management. The program has now been incorporated into the AGCO’s onboarding program for new hires. A key goal in the next fiscal year is to conduct a demographic survey to gain a better understanding of the AGCO’s workforce and to work towards developing plans for bridging gaps that are identified through the survey.

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The AGCO’s Accessibility Plan and Policies were first published in January 2013 and were developed in accordance with the Integrated Accessibility Standards Regulation (IASR) under the AODA. The Plan outlines the AGCO’s commitment and strategy to prevent and remove barriers and improve opportunities for people with disabilities and address the current and future requirements of the AODA. The plan serves as a framework for how the AGCO will continue to educate and engage its employees in identifying, preventing and removing barriers to aid the organization to better serve the public, and refine its policies and practices with respect to accessibility.

Since the initial publication of its Accessibility Plan and Policies, the AGCO has implemented many of the requirements outlined in the plan and participated in supporting activities, including consultation sessions with persons with disabilities and the organizations that serve, represent or advocate on their behalf. These activities continue to assist the AGCO in better understanding the barriers that persons with disabilities often experience when accessing services and have informed mitigation strategies and the ongoing review and development of AGCO’s Accessibility Plan and Policies.

To ensure the AGCO continues to meet the requirements under the AODA, and that its policies remain effective, the AGCO has implemented a number of ongoing initiatives and policies in recent years. For example, all current employees have received training on the requirements of Ontario’s accessibility laws, including the IASR and the Ontario Human Rights Code, 1990, with all new employees required to receive such training as soon as practicable. The AGCO maintains records of the individuals trained, and the dates on which training was received, via AGCO’s learning management system. Accessibility training resources and materials, as well as supplementary accessibility information and e-training modules, are available to staff at all times via the AGCO’s intranet.

The AGCO has also taken steps to ensure that its employees and the public are aware of the availability of accommodations for disabilities, where needed, to support participation in all areas, such as undertaking a critical review of the AGCO’s recruitment processes to ensure all those interested in potentially joining the AGCO as an employee are aware of the AGCO’s policies with respect to accessibility and accommodations for persons with disabilities. As part of this review, several policies were updated, such as the AGCO’s Accommodation and Return to Work Policy and the Short-Term Income Protection Policy, as well as the Absence and Disability Management Program to help employees further manage their health and wellness.

In spring 2017, the AGCO launched a newly refreshed website which was designed to be compliant, both in design and functionality, with the AODA. The AGCO endeavors to make all of its communications and publications accessible and will ensure it continues to meet Web Content Accessibility Guidelines (WCAG) 2.0, Level A Standards when updates, upgrades or changes are made to its website. The AGCO will also continue to work to enhance the design and functionality of its website to conform to the WCAG 2.0 Level AA by January 1, 2021. The AGCO’s multi-year plan and its policies are reviewed annually and updated where necessary to inform the public on the AGCO’s progress. More information on planned and ongoing activities with respect to accessibility is available via the AGCO website.

The AGCO is an agency reporting to MAG, the AGCO’s annual spending authority comes from the Ministry’s printed estimates, as approved by the Legislature, and all revenues are remitted to the Consolidated Revenue Fund. The AGCO Board of Directors reviews the annual budget.

The recent expansion of the AGCO’s mandate has necessitated a strategic and comprehensive review of the AGCO’s funding framework in 2017–18.  AGCO’s funding framework has further expanded in 2018-19 to include licensing and regulation of Cannabis retail stores. The financial tables below reflect additional resources and fees.

AGCO Revenue – Key Explanations

• In 2018–19, a Liquor revenue decline of $0.23M (1.6%) is expected due to less grocers being authorized to sell beer, wine and cider in their stores. Gaming revenue growth of $0.16M (1.1%) is expected due to an increased number of registration fees received from service providers operating gaming sites, and more employee registrations as a result of new and expanded gaming sites across the province.
• As a whole, we are expecting a steady increase in revenue over the next three fiscal years mainly driven by the demand for new applications and renewals from the Cannabis retail implementation.

AGCO Expenditures – Key Explanations

To align with the Government-wide expenditure management strategy, the 2018–19 Gross Expenditures Forecast to Budget savings of $12.18M is a result of restrictions on spending and hiring for the Ontario Public Service (OPS).

1. _{2018–19 Budget and Forecast includes Cannabis funding of $8.00M. The financial table above assumes costs related to the ongoing regulation of Cannabis.}
2. _{2018–19 Forecast includes due diligence costs to procure external service providers to assist in Eligibility Assessments (EA) of $0.63M for Gaming Modernization and $4.00M for Cannabis, which are fully recoverable. 2019-20 Budget includes $9.17M of EA for Gaming Modernization.  In 2019–20, 2020–21 and 2021–22, Cannabis EA is budgeted at $4.20M, $4.00M and $4.00M, respectively.}

AGCO Capital Assets – Key Explanations

The AGCO’s Capital Budget consists of the purchase of IT hardware and costs related to the implementation of the multi-year iAGCO IT business application project. With the addition of Cannabis, the implementation of iAGCO is now extended to 2020–21.

• AGCO IT hardware includes the purchase of personal computing devices, mainframes, data network equipment and storage devices.
• iAGCO capital assets include all build costs including hardware, software, licences and services.

1. _{2018–19 IT Hardware Budget and Forecast includes $93.80K for Cannabis.}
2. _{iAGCO Budget and Forecast includes $2.00M of Cannabis and as a result, the project timeline has been extended to 2020–21.}

The AGCO’s approach to performance measurement enables the agency to improve program effectiveness by promoting a focus on results, service quality and value for money through continued targeting, monitoring, and evaluation of results.

Performance measures are an integral component of the AGCO’s strategic planning process. Effective strategic planning requires continuous feedback on progress towards achieving stated objectives, through performance measures aligned with the Strategic Goals identified in the AGCO Strategic Plan.

In keeping with the principle of a ‘critical few’ performance measures, the selected measures (see Appendix B) are intended to provide a broad overview of the AGCO’s activities, but are not intended to measure all facets of the agency’s operations. As part of the enhanced planning framework, performance measures will continue to be developed for the corporate and divisional plans which are intended to be more granular and project-specific in nature.

The 2017-18 fiscal year marks the fifth year of the AGCO’s current strategic performance measures. The results from these measures, shown above, demonstrate that in 2017-18 the AGCO has met or surpassed minimum agency targets in every respect. The achievement of these measures results from a number of overarching projects and initiatives at the AGCO, including:

• the introduction of iAGCO;
• a renewed focus on stakeholder engagement and an enhanced approach to stakeholder education;
• a modern regulatory approach which is risk-based, compliance-focused, and outcomes-based; and
• the introduction of numerous services to support a rewarding workplace for employees.

The AGCO is committed to ensuring that agency-wide performance measures support the goals outlined in its Strategic Plan. To meet this commitment, the AGCO will continue to engage in multi-year goal setting and continue to refine its approach to linking resource planning and performance measurement to support a results-oriented organization.