Quarterly Financial Report for the Quarter Ended December 31, 2024
Table of contents
- Introduction
- Highlights of fiscal quarter and fiscal year to date (YTD) results
- Risk and uncertainties
- Significant changes in relation to operations, personnel and programs
- Statement of Authorities (unaudited)
- Departmental budgetary expenditures by Standard Object (unaudited)
1. Introduction
This quarterly financial report has been prepared by management as required by section 65.1 of the Financial Administration Act and in the form and manner prescribed by the Treasury Board. It should be read in conjunction with the 2024-25 Main Estimates. It has not been subject to an external audit or review nor has it been subject to the approval of the Audit Committee.
1.1 Authority, mandate and programs
The Canadian Institutes of Health Research (CIHR) is the Government of Canada's health research funding agency. It was created in June 2000 by the Canadian Institutes of Health Research Act with a mandate “to excel, according to internationally accepted standards of scientific excellence, in the creation of new knowledge and its translation into improved health for Canadians, more effective health services and products and a strengthened Canadian health care system.”
CIHR invests in high quality health research and health research personnel to help create and apply new knowledge that can improve health outcomes for Canadians, lead to innovative products and services that improve Canada's health care system, and create high quality employment and commercial opportunities.
Further details on CIHR’s mandate and programs can be found in Part II of the Main Estimates and the Departmental Plan.
1.2 Basis of presentation
This quarterly report has been prepared by CIHR management using an expenditure basis of accounting. The accompanying Statement of Authorities includes CIHR’s spending authorities granted by Parliament and those used by CIHR, consistent with the Main Estimates supplied thus far for the 2024-25 fiscal year. This quarterly report has been prepared using a special purpose financial reporting framework designed to meet financial information needs with respect to the use of spending authorities.
The authority of Parliament is required before monies can be spent by the Government of Canada (the Government). Approvals are given in the form of annually approved limits through appropriation acts or through legislation in the form of statutory spending authority for specific purposes.
CIHR uses the full accrual method of accounting to prepare and present its annual departmental financial statements that are part of the departmental results reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis.
2. Highlights of fiscal quarter and fiscal year to date (YTD) results
This quarterly financial report reflects the results of the current fiscal period in comparison to the authorities supplied by the Main Estimates to date for fiscal year 2024-25, as well as budget adjustments approved by Treasury Board up to December 31, 2024.
2.1 Financial Highlights – Statement of Authorities (Refer to Section 5)
As of December 31, 2024, total authorities available for use for CIHR have increased by $83.3 million compared to December 31, 2023 as shown in Figure 2.1.1. below. The increase to CIHR’s total authorities available is due to:
- $23.0 million of new funding in Budget 2024 for funding to increase support to core research grants;
- $22.6 million of new funding in Budget 2024 for funding to support graduate students and postdoctoral researchers;
- $21.2 million net increase in funding for the Clinical Trial Fund due to a reduction in reprofiling to future years;
- $12.7 million increase resulting from CIHR’s participation in tri-agency programs in collaboration with the Natural Sciences and Engineering Research Council (NSERC) and the Social Sciences and Humanities Research Council (SSHRC). Funding for these programs varies by fiscal year as CIHR is allocated funding following each distinct competition depending on the successful applicants’ alignment with CIHR’s health-related mandate. CIHR received more funds in 2024-25 for the Canada First Research Excellence Fund ($11.1 million), Canada Excellence Research Chairs ($1.5 million), College and Community Innovation Program ($0.5 million), and fewer funds for the Network Centres of Excellent ($0.4 million);
- $10.0 million of new funding in Budget 2024 for funding for the Gairdner Foundation in support of increased prize amounts for international awards;
- $9.9 million of new funding to build a World-Class Health Data System for Canadians;
- $5.6 million increase in funding for compensation adjustments for employee salaries;
- $2.2 million increase in funding for Dementia and Brain Health in Aging;
- $0.7 million increase in funding for Canada’s Black students and postdoctoral fellows;
- $0.2 million increase in funding for Early Career Investigators;
- $0.2 million increase in funding for the Strategy for Patient-Oriented Research;
- $0.3 million decrease in funding due to various immaterial adjustments;
- $1.7 million decrease due to employee benefit plan adjustments from the Treasury Board Secretariat;
- $2.1 million decrease in funding for Eliminating Cervical Cancer in Canada (sunsetting);
- $2.6 million decrease in the operating budget carryforward;
- $3.7 million decrease in net transfers from other government departments for specific programs and initiatives; and
- $14.6 million decrease in funding for Pediatric Cancer (sunsetting).
Total authorities used as of December 31, 2024 increased by $48.5 million (5.2%) compared to the prior fiscal year mainly due to an increase in grant payments made through the third quarter. CIHR has used 68.6% (69.3% in 2023-24) of its available authorities through the third quarter which is consistent with its annual spending pattern.
Figure 2.1.1 Total annual authorities available and cumulative authorities used
($ thousands)
Long Description
| 2024-25 | 2023-24 | |
|---|---|---|
| Total authorities available for use the year ended March 31Footnote * | $1,423,826 | $1,340,522 |
| Cumulative authorities used as at December 31 | $976,922 | $928,374 |
| 2024-25 | 2023-24 | Variance | ||||||
|---|---|---|---|---|---|---|---|---|
| Annual authorities available | Cumulative authorities used (as at December 31) | % used | Annual authorities available | Cumulative authorities used (as at December 31) | % used | (1) vs (3) | (2) vs (4) | |
| (1) | (2) | (3) | (4) | |||||
| Vote 1 - Operating Expenditures | 77,957 | 53,483 | 68.6% | 73,938 | 53,599 | 72.5% | 5.4% | -0.2% |
| Vote 5 - Grants | 1,336,871 | 916,832 | 68.6% | 1,257,718 | 868,126 | 69.0% | 6.3% | 5.6% |
| Statutory Authorities – Employee benefits plan | 8,998 | 6,607 | 73.4% | 8,866 | 6,649 | 75.0% | 1.5% | -0.6% |
| Total | 1,423,826 | 976,922 | 68.6% | 1,340,522 | 928,374 | 69.3% | 6.2% | 5.2% |
Figure 2.1.2 Total annual authorities available and authorities used by quarter ($ thousands)
Long description
| 2024-25 | 2023-24 | |
|---|---|---|
| Total authorities available for use the year ended March 31Footnote * | $1,423,826 | $1,340,522 |
| Authorities used as at June 30 | $297,815 | $293,414 |
| Authorities used as at September 30 | $319,299 | $299,402 |
| Authorities used as at December 31 | $359,807 | $335,558 |
| 2024-25 | 2023-24 | Variance | ||||||
|---|---|---|---|---|---|---|---|---|
| Annual authorities available | Q3 authorities used | % used | Annual authorities available | Q3 authorities used | % used | (1) vs (3) | (2) vs (4) | |
| (1) | (2) | (3) | (4) | |||||
| Vote 1 - Operating Expenditures | 77,957 | 19,039 | 24.4% | 73,938 | 17,902 | 24.2% | 5.4% | 6.4% |
| Vote 5 - Grants | 1,336,871 | 338,566 | 25.3% | 1,257,718 | 315,440 | 25.1% | 6.3% | 7.3% |
| Statutory Authorities – Employee benefits plan | 8,998 | 2,202 | 24.5% | 8,866 | 2,216 | 25.0% | 1.5% | -0.6% |
| Total | 1,423,826 | 359,807 | 25.3% | 1,340,522 | 335,558 | 25.0% | 6.2% | 7.2% |
Vote 1 – Operating Expenditures
Total authorities available for use for Vote 1 – Operating expenditures increased by $4.0 million (5.4%) as at December 31, 2024 compared to the prior fiscal year.
This increase is due to:
- $4.7 million increase in funding for compensation adjustments for employee salaries;
- $0.9 million of new funding to build a World-Class Health Data System for Canadians;
- $0.8 million of new funding in Budget 2024 for funding to increase support to core research grants;
- $0.5 million of new funding in Budget 2024 for funding to support graduate students and postdoctoral researchers;
- $0.3 million increase in funding for Clinical Trials Fund due to a reduction in reprofiling to future years;
- $0.3 million increase in net transfers from other government departments for specific programs and initiatives;
- $0.5 million decrease in funding due to various immaterial adjustments;
- $0.4 million decrease in funding for Pediatric Cancer (sunsetting); and
- $2.6 million decrease in the operating budget carryforward
Authorities used through the third quarter for Vote 1 – Operating Expenditures authorities have decreased by $0.1 million (-0.2%) as compared to the prior fiscal year. The most significant change was a decrease of $1.0 million in professional and special services (for example, management consulting, one time membership costs). Other decreases include $0.3 million for transportation and communications (mainly due to less travel), $0.1 million for repairs and maintenance, and $0.1 million for materials and supplies. Increases include $0.5 million for Personnel (increased wages offset by lower employee count), $0.3 million for information (for example, a new research analysis solution), $0.3 million for rentals (mainly due to increased costs of existing licenses), other subsidies and payments ($0.2 million), and Acquisition of machinery and equipment ($0.1 million). The percentage of operating authorities used has decreased from the prior year (68.6% and 72.5% respectively) due to the aforementioned reasons.
Overall spending as of December 31, 2024 is consistent with CIHR management expectations.
Vote 5 – Grants
Authorities available for use for Vote 5 – Grants as of December 31, 2024 were $1,336.9 million and included funding for the following transfer payment programs:
- Grants for research projects and personnel support – $1,183.3 million
- Canada First Research Excellence Fund (CFREF) – $58.4 million
- Canada Graduate Scholarships (CGS) – $52.6 million
- Institute support grants – $16.7 million
- Canada Excellence Research Chairs (CERC) – $13.1 million
- Vanier Canada Graduate Scholarships – $8.4 million
- Canada 150 Research Chairs (C150) – $2.7 million
- College and Community Innovation Program (CCI) – $1.7 million
Vote 5 authorities available for use increased by $79.2 million (6.3%) as of December 31, 2024 as compared to the prior fiscal year. This increase is due to the following:
- $22.1 million of new funding in Budget 2024 for funding to increase support to core research grants;
- $22.0 million of new funding in Budget 2024 for funding to support graduate students and postdoctoral researchers;
- $20.9 million net increase in funding for the Clinical Trial Fund due to a reduction in reprofiling to future years;
- $12.7 million increase resulting from CIHR’s participation in tri-agency programs in collaboration with the Natural Sciences and Engineering Research Council (NSERC) and the Social Sciences and Humanities Research Council (SSHRC). Funding for these programs varies by fiscal year as CIHR is allocated funding following each distinct competition depending on the successful applicants’ alignment with CIHR’s health-related mandate. CIHR received more funds in 2024-25 for the Canada First Research Excellence Fund ($11.1 million), Canada Excellence Research Chairs ($1.5 million), College and Community Innovation Program ($0.5 million), and fewer funds for the Network Centres of Excellent ($0.4 million);
- $10.0 million of new funding in Budget 2024 for funding for the Gairdner Foundation in support of increased prize amounts for international awards;
- $8.8 million of new funding to build a World-Class Health Data System for Canadians;
- $2.2 million increase in funding for Dementia and Brain Health in Aging;
- $0.7 million increase in funding for Canada’s Black students and postdoctoral fellows;
- $2.1 million decrease in funding for Eliminating Cervical Cancer in Canada (sunsetting);
- $4.0 million decrease in net transfers from other government departments for specific programs and initiatives; and
- $14.1 million decrease in funding for Pediatric Cancer (sunsetting).
Grant authorities used through the third quarter of 2024-25 increased by $48.7 million (5.6%) compared to the prior fiscal year. The percentage of grant authorities used is consistent with the prior year (68.6% and 69.0 % respectively) as grants are typically paid out in monthly installments throughout the year.
Overall spending as of December 31, 2024 is consistent with CIHR management expectations.
Statutory Authorities
Contribution to employee benefit plans
Budgetary statutory authorities representing CIHR’s contribution to employee benefit plans available for use increased year over year by $0.1 million (1.5%). The increase to CIHR’s statutory authorities available is due to:
- $0.9 million increase in funding for compensation adjustments for employee salaries;
- $0.2 million of new funding to build a World-Class Health Data System for Canadians;
- $0.2 million increase in funding for Early Career Investigators;
- $0.2 million increase in funding for the Strategy for Patient-Oriented Research;
- $0.1 million of new funding in Budget 2024 for funding to increase support to core research grants;
- $0.1 million of new funding in Budget 2024 for funding to support graduate students and postdoctoral researchers;
- $0.1 million decrease in funding for Pediatric Cancer (sunsetting); and
- $1.7 million decrease due to employee benefit plan adjustments from the Treasury Board Secretariat.
Actual spending for statutory authorities in the third quarter of 2024-25 is 75.0% of the total available authorities for use for the year, which is consistent with CIHR management expectations given that this expenditure is distributed equally throughout the fiscal year.
2.2 Financial Highlights – Statement of Departmental Budgetary Expenditures by Standard Object (Refer to Section 6)
As of December 31, 2024, total authorities available for use by CIHR increased by $83.3 million (6.2%) compared to the prior fiscal year. Total authorities used as of December 31, 2024 increased by $48.5 million (5.2%) compared to the prior fiscal year. These variances are reflected in Table 2.2.1 (where expenditure types are re-grouped into three categories: Personnel, Other Operating Expenditures and Transfer Payments) for further analysis.
| 2024-25 | 2023-24 | Variance | ||||||
|---|---|---|---|---|---|---|---|---|
| Annual authorities available | Cumulative authorities used | % used | Annual authorities available | Cumulative authorities used | % used | (1) vs (3) | (2) vs (4) | |
| (1) | (2) | (3) | (4) | |||||
| PersonnelFootnote * | 73,878 | 54,405 | 73.6% | 67,349 | 54,003 | 80.2% | 9.7% | 0.7% |
| Other Operating Expenditures | 13,077 | 5,685 | 43.5% | 15,455 | 6,245 | 40.4% | -15.4% | -9.0% |
| Transfer Payments | 1,336,871 | 916,832 | 68.6% | 1,257,718 | 868,126 | 69.0% | 6.3% | 5.6% |
| Total | 1,423,826 | 976,922 | 68.6% | 1,340,522 | 928,374 | 69.3% | 6.2% | 5.2% |
|
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| 2024-25 | 2023-24 | Variance | ||||||
|---|---|---|---|---|---|---|---|---|
| Annual authorities available | Q3 authorities used | % used | Annual authorities available | Q3 authorities used | % used | (1) vs (3) | (2) vs (4) | |
| (1) | (2) | (3) | (4) | |||||
| PersonnelFootnote * | 73,878 | 19,594 | 26.5% | 67,349 | 18,109 | 26.9% | 9.7% | 8.2% |
| Other Operating Expenditures | 13,077 | 1,647 | 12.6% | 15,455 | 2,009 | 13.0% | -15.4% | -18.0% |
| Transfer Payments | 1,336,871 | 338,566 | 25.3% | 1,257,718 | 315,440 | 25.1% | 6.3% | 7.3% |
| Total | 1,423,826 | 359,807 | 25.3% | 1,340,522 | 335,558 | 25.0% | 6.2% | 7.2% |
|
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Personnel and Other Operating Expenditures
Authorities available for Personnel Expenditures for the period ended December 31, 2024 increased by $6.5 million (9.7%) as compared to the prior year. Authorities available for Other Operating Expenditures decreased by $2.4 million (-15.4%). These variances are due to:
- $5.6 million (Personnel) increase in funding for compensation adjustments for employee salaries;
- $0.9 million (Personnel) increase and $0.2 million (Other) increase of new funding to build a World-Class Health Data System for Canadians;
- $0.6 million (Personnel) increase and $0.3 million (Other) increase of new funding in Budget 2024 for funding to increase support to core research grants;
- $0.4 million (Personnel) increase and $0.2 million (Other) increase of new funding in Budget 2024 for funding to support graduate students and postdoctoral researchers;
- $0.4 million (Personnel) increase and $3.0 million (Other) decrease in the operating budget carryforward;
- $0.3 million (Other) increase in net transfers from other government departments for specific programs and initiatives;
- $0.2 million (Personnel) increase and $0.1 million (Other) increase in funding for the Clinical Trial Fund;
- $0.2 million (Personnel) increase in funding for Early Career Investigators;
- $0.2 million (Personnel) increase in funding for the Strategy for Patient-Oriented Research;
- $0.2 million (Personnel) increase and $0.5 million (Other) decrease in funding due to various immaterial adjustments;
- $0.5 million (Personnel) decrease in funding for Pediatric Cancer (sunsetting); and
- $1.7 million (Personnel) decrease due to employee benefit plan adjustments from the Treasury Board Secretariat.
Personnel authorities used through the third quarter increased by $0.4 million (0.7%) compared to the prior fiscal year. This increase is less than the increase in wages as a result of a decreased employee count. The percentage of authorities used for Personnel Expenditures through the third quarter (73.6%) is reasonable for this type of expenditure and is consistent with the prior year (80.2%).
Other Operating Expenditures used through the third quarter decreased by $0.6 million (-9.0%) compared to the prior fiscal year due mainly to a $1.0 million decrease in professional and special services, and decreases for transportation and communications ($0.3 million), materials and supplies ($0.1 million), and repairs and maintenance ($0.1 million). These decreases were offset by increases in expenditures for rentals ($0.3 million), information ($0.3 million), other subsidies and payments ($0.2 million), and acquisitions of machinery and equipment ($0.1 million).
Overall spending as of December 31, 2024 is consistent with CIHR management expectations.
Transfer Payments
Authorities available for the period ended December 31, 2024 increased by $48.7 million (5.6%) over the prior year due primarily to new funding announced in Budget 2024 ($54.1 million), as well as a reduced reprofiling of funding to future years for the Clinical Trials Fund ($20.9 million), an increase of $12.7 million for CIHR’s share of tri-agency programs and other new funding for building a world-class health data system ($8.8 million). These increases were offset by a decrease of $14.1 million for pediatric cancer research as this funding is sunsetting, as well as $4.0 million decrease in transfers from other departments. The remaining change is made up of less significant increases and decreases to programs. Authorities used through the quarter ended December 31, 2024 increased by $79.2 million (6.3%) compared to the prior fiscal. The percentage of grant authorities used through the third quarter of 2024-25 (68.6%) is similar to the authorities used through the third quarter of 2023-24 (69.0%).
2.3 Other Non-Financial Highlights
Other non-financial highlights for the third quarter of 2024-25 include:
- On October 9, Minister Holland announced $37.6 million over five years for the renewal of the Network Environments for Indigenous Health Research (NEIHR). This investment will support the nine established NEIHR Centres in their vital work, assist the NEIHR National Coordinating Centre, and expand the program into the Yukon.
- On October 21, Minister Holland announced $13.7 million to support 24 research projects related to women’s and gender diverse people’s health, including endometriosis, women’s heart health, intimate partner violence, mental health, access to safe abortion and more.
- On October 29, Minister Holland announced $4.3 million to help transform Canada’s health systems through the Health System Impact program, with projects aimed at generating evidence to improve Canada’s health systems, services and policies.
- On November 14, Minister Holland announced $5.2 million to support 35 research projects that will help Canada prevent, prepare for, recover from, and respond to outbreaks of avian influenza A(H5N1).
3. Risk and uncertainties
CIHR is funded through voted parliamentary spending authorities and statutory authorities for operating expenditures and transfer payments. As a result, its operations are impacted by any changes to funding approved through Parliament. Delivering programs and services may depend on several risk factors such as economic fluctuations, technological and scientific development, evolving government priorities, and central agency or government-wide initiatives.
CIHR is committed to a disciplined, risk management process in its daily operations. In 2023–24, CIHR developed a new Corporate Risk Profile (CRP) through a cross-organizational consultation process led by an external consultant firm to identify current risks for the Agency. The CRP provides a proactive response to manage and monitor risks to ensure CIHR's ability to deliver on its mandate. The key risks identified for implementation in 2023–24 and 2024–25 are as follows.
Risk 1 - Corporate Prioritization
There is a risk that CIHR’s current corporate prioritization process may cause it to establish new priorities without preplanning to ensure the necessary resources (e.g., infrastructure, staff, funding) are available thus risking the viability of initiatives, programs and Agency plans as well as expending available resources beyond sustainable levels.
Risk 2 - CIHR/Institutes’ Authorities, Roles, and Responsibilities
There is a risk that the lack of a clear governance framework within CIHR and between CIHR and the Institutes including the authorities, roles, and responsibilities may cause an important misalignment between who is accountable for what, and how decisions are made, leading to potential reputational damage to CIHR as well as inefficient decision-making and use of limited resources.
Risk 3 - Tri-Agency Grants Management Solution (TGMS)
There is a risk that CIHR’s current issues in sustaining the ongoing TGMS initiative could result in the failure of the TGMS project itself (or unacceptable delays in its operational delivery), thus leading to a significant loss of confidence in CIHR’s role as an innovative leader in the health research eco-system.
Risk 4 – Cybersecurity
There is a risk that CIHR’s current IM/IT infrastructure (e.g., systems, software) and support framework (e.g., strategies, policies, procedures, expertise) may allow for significant cybersecurity incidents affecting confidentiality, integrity, and availability of services (core and/or critical).
Risk 5 – Research Funding Integrity
There is a risk related to partnered research competitions and initiatives with regards to 1) inconsistent interpretation and application of Central Agency policies as well as 2) conflicting or misaligned policies and/or competition delivery requirements between CIHR and the partner. This may impact CIHR’s overall reputation and financial management autonomy as well as the integrity of the process and may result in uneven and/or non-compliant application of the research funding delivery process.
4. Significant changes in relation to operations, personnel and programs
On October 1, 2024, CIHR announced the appointment of Dr. Chelsea Gabel as the next Scientific Director of the CIHR Institute of Indigenous Peoples’ Health for a term of four years, effective October 1, 2024.
On November 14, Minister Holland announced the appointment of Dr. Paul C. Hébert as the next President of CIHR for a term of five years, effective January 2, 2025.
Approval by Senior Officials
Approved by:
[original signed by]
Paul C. Hébert, MD, MHSc, FRCPC, FCAHS
President
[original signed by]
Jimmy Fecteau, MBA, CPA, CMA
Chief Financial Officer
Ottawa, Canada
February 28, 2025
5. Statement of Authorities (unaudited)
For the quarter ended December 31, 2023
| Fiscal year 2024-25 | Fiscal year 2023-24 | |||||
|---|---|---|---|---|---|---|
| (in thousands of dollars) | Total available for use for the year ending March 31, 2025Footnote * | Used during the quarter ended December 31, 2024 | Year to date used at quarter-end | Total available for use for the year ending March 31, 2024Footnote * | Used during the quarter ended December 31, 2023 | Year to date used at quarter-end |
| Vote 1 – Operating expenditures | 77,957 | 19,039 | 53,483 | 73,938 | 17,902 | 53,599 |
| Vote 5 - Grants | 1,336,871 | 338,566 | 916,832 | 1,257,718 | 315,440 | 868,126 |
| Budgetary statutory authorities | ||||||
| Contributions to employee benefit plans | 8,998 | 2,202 | 6,607 | 8,866 | 2,216 | 6,649 |
| Total budgetary authorities | 1,423,826 | 359,807 | 976,922 | 1,340,522 | 335,558 | 928,374 |
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6. Departmental budgetary expenditures by Standard Object (unaudited)
For the quarter ended December 31, 2024
| Fiscal year 2024-25 | Fiscal year 2023-24 | |||||
|---|---|---|---|---|---|---|
| (in thousands of dollars) | Planned expenditures for the year ending March 31, 2025Footnote * | Expended during the quarter ended December 31, 2024 | Year to date used at quarter-end | Planned expenditures for the year ending March 31, 2024Footnote * | Expended during the quarter ended December 31, 2023 | Year to date used at quarter-end |
| Expenditures: | ||||||
| Personnel | 73,878 | 19,594 | 54,420 | 67,349 | 18,109 | 54,003 |
| Transportation and communications | 799 | 90 | 295 | 853 | 218 | 591 |
| Information | 663 | 114 | 502 | 317 | 56 | 204 |
| Professional and special services | 6,623 | 618 | 1,621 | 9,907 | 899 | 2,644 |
| Rentals | 4,529 | 676 | 2,687 | 3,276 | 655 | 2,320 |
| Repair and maintenance | 174 | 32 | 88 | 44 | 161 | 186 |
| Utilities, materials and supplies | 29 | 11 | 15 | 301 | (3) | 120 |
| Acquisition of machinery and equipment | 260 | 107 | 250 | 757 | 26 | 180 |
| Transfer payments | 1,336,871 | 338,566 | 916,832 | 1,257,718 | 315,440 | 868,126 |
| Other subsidies and payments | - | (1) | 212 | - | (3) | 0 |
| Total budgetary expenditures | 1,423,826 | 359,807 | 976,922 | 1,340,522 | 335,558 | 928,374 |
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