Social Sciences and Humanities Research Council of Canada
Quarterly Financial Report for the Quarter Ended June 30, 2024

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Statement outlining results, risks and significant changes in operations, personnel and programs

1. Introduction
   1. 1.1 Authority, mandate and programs
   2. 1.2 Basis of presentation
2. Highlights of fiscal quarter and fiscal year-to-date results
   1. 2.1 Significant changes to budgetary authorities
   2. 2.2 Significant changes to authorities used
3. Risks and uncertainties
4. Significant changes related to operations, personnel and programs
5. Statement of authorities (unaudited)
6. Departmental budgetary expenditures by standard object (unaudited)

1. Introduction

This Quarterly Financial Report (QFR) has been prepared by management as required by section 65.1 of the Financial Administration Act (FAA), and in the form and manner prescribed by the Treasury Board. It should be read in conjunction with the 2024–25 Main Estimates and Supplementary Estimates (A). This report has not been subject to an external audit or review.

1.1 Authority, mandate and programs

The Social Sciences and Humanities Research Council of Canada (SSHRC) was established in 1977 by the Social Sciences and Humanities Research Council Act and is a departmental corporation named in Schedule II of the FAA. SSHRC is a funding agency that promotes and supports postsecondary research and training in the social sciences and humanities to enhance the economic, social and cultural development of Canada, its communities and regions. Social sciences and humanities research builds knowledge about people in the past and present, to help create a better future.

Further information on the SSHRC mandate and program activities can be found in Part II of the Main Estimates.

1.2 Basis of presentation

Management prepared this quarterly report using an expenditure basis of accounting. The accompanying Statement of Authorities includes SSHRC’s spending authorities granted by Parliament and those used by the agency, consistent with the Main Estimates and Supplementary Estimates (A) for fiscal 2024-25. 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 the Government of Canada can spend monies. 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.

SSHRC uses the full accrual method of accounting to prepare and present its annual 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 results

This section highlights the significant items that contributed to the change in resources available for the fiscal year, as well as the actual year-to-date expenditures compared with the previous fiscal year.

The following graph provides a comparison of budgetary authorities available for the full fiscal year, and budgetary expenditures by quarter, for fiscal 2024-25 and fiscal 2023-24.

2.1 Significant changes to budgetary authorities

As of June 30, 2024, SSHRC’s total available authorities for fiscal 2024-25 amounted to $1.198 billion. This represents an overall increase of $37.4 million (3.2%) from the comparative period of the previous year. The major changes in SSHRC’s budgetary authorities between the current and previous fiscal years include:

• an increase of $36.0 million from Budget 2021 for a reprofile of the Canada Biomedical Research fund;
• a decrease of $8.4 million from Budget 2021 for the Race, Gender, and Diversity Partnership program;
• an increase of $6.6 million from Budget 2014 for the Canada First Research Excellence Fund, to help post-secondary institutions excel globally in research areas that create long-term economic advantages for Canada;
• an increase of $3.7 million from Budget 2022 for the Sustainable Agriculture & Agri-Food Innovation in a Net Zero Economy program to support university researchers in developing technologies and crop varieties that will enable net-zero emission agriculture;
• an increase of $3.1 million for the College and Community Innovation program, transferred from the Natural Sciences and Engineering Research Council, to increase innovation through partnerships among Canadian colleges, universities, and local companies; and,
• a decrease of $2.9 million from Budget 2019 for the adjusted distribution of the Canada Graduate Scholarships among the three granting agencies.

2.2 Significant changes to authorities used

Year-to-date spending

The following table provides a comparison of cumulative spending by vote for the current and previous fiscal years.

Year-to-date budgetary expenditures used at quarter-end (millions of dollars)	2024-25	2023-24	Variance
Vote 1—Operating expenditures
Personnel (includes contributions to employee benefit plans)	10.8	9.7	1.1
Non-personnel	1.0	1.0	-
Vote 5—Grants and scholarships	162.6	124.9	37.7
Total budgetary expenditures	174.4	135.6	38.8

Total budgetary expenditures amounted to $174.4 million at the end of the first quarter of fiscal 2024-25 compared to $135.6 million reported in the same period in the previous fiscal year.

Grants and scholarships

At the end of the first quarter of fiscal 2024-25, grant and scholarship expenses increased by $37.7 million compared to those reported in the same period in the previous fiscal year. The increase is due mainly to the increased funding for the Canada Biomedical Research fund and the timing of other award payments.

Operating expenditures

Personnel expenditures, which include contributions to employee benefit plans, have increased by $1.1 million compared to the same period in the previous year, primarily due to additional resources required to support the Sustainable Agriculture & Agri-Food Innovation in a Net Zero Economy program as well as the Canada Excellence Research Chairs program, whose funding increased in 2024-25.

Total non-personnel expenditures as of the first quarter of fiscal 2024-25 have remained largely in line with the comparative period in the previous fiscal year. There were increases in the acquisition of machinery and equipment on servers and application software, in professional and special services resulting from non-routine activities for the Data Centre move and the negotiation of a new collective agreement, and in transportation and telecommunications expenditures. This was partially offset by a decrease in information expenditures related to publication services. See the Departmental budgetary expenditures by standard object table in Section 6 for details.

Total authorities used at the end of the first quarter of fiscal 2024-25 ($174.4 million) represent 15% of total available authorities ($1.198 billion).

3. Risks and uncertainties

Through the corporate risk identification exercise, SSHRC produces an annual Corporate Risk Profile that includes strategic risks along with risk levels and mitigation activities. SSHRC has linked corporate risk management with its integrated planning process to ensure greater cohesion and executive oversight in delivering its mandate.

The 2024-25 risk assessment exercise provided the level of insight required to properly respond to risk through the allocation of resources, both human and financial, and prioritization of activities. Senior management is closely monitoring the following three key risks:

Risk 1—Managing resources

The continuing ageing of SSHRC’s legacy information management and information technology systems, compounded by multiple resource pressures facing the organization (e.g., design and delivery of new programs, expanded collaboration with external stakeholders, modernization of grants management systems and the continued adaptation to the new hybrid workplace), may limit SSHRC’s capacity to allocate financial and human resources to support existing and new priorities.

Risk 2—Managing change

The continued volume and complexity of changes facing SSHRC may challenge our ability to create and sustain an inclusive, agile and innovative workplace culture able to manage change.

Risk 3—Managing reputation

SSHRC’s reputation as a global leader in social sciences, humanities and interdisciplinary research funding could be adversely affected by public perceptions of our relevance and impact in both official languages, our ability to foster a more equitable and inclusive research environment, our capacity to adapt to changing government priorities, and an evolving research ecosystem that may require new types of infrastructure, collaboration, skills and partnerships.

4. Significant changes related to operations, personnel and programs

Budget 2024 announced an increase in the annual value and number of scholarships and fellowships for the Canadian Institutes of Health Research (CIHR) / Natural Sciences and Engineering Research Council (NSERC) / SSHRC master’s and doctoral students and postdoctoral researchers. Highlighting the commitment to bolster Canada’s research landscape, Budget 2024 proposes a significant investment of $1.8 billion over five years, and $748.3 million per year ongoing, to the federal granting councils to increase core research grant funding. Budget 2024 also announced funding for the Tri-agency grants management solution (TGMS) to better support applicants, administrators and reviewers during the grants management lifecycle. This will result in a more streamlined and user-friendly application process and experience.

In addition, Budget 2024 announced the creation of a new capstone research funding organization, within which the granting councils will continue to exist, that will provide better coordination across the federally funded research ecosystem. The three federal research funding agencies will focus on supporting excellence in investigator-driven research and actively contributing to the collective and strategic direction of the new organization. The capstone organization will be designed to advance internationally collaborative, multidisciplinary, and mission-driven research. On June 17, 2024, the Government of Canada asked the tri-agencies to jointly undertake engagement with the research community by July 2024 to inform its ongoing work to create the new organization and structure. Further details on these efforts will be provided in the 2024 Fall Economic Statement.

The Policy on Sensitive Technology Research and Affiliations of Concern (STRAC) is being implemented by the federal granting agencies in a harmonized manner to fund opportunities that launched as of May 1, 2024. The agencies also published a new Tri-agency guidance on research security webpage to provide up-to-date guidance for the research community with regards to their implementation of research security measures. 

On April 10, 2024, CIHR, NSERC, SSHRC and the Canada Foundation for Innovation (CFI) launched a consultation seeking feedback from the research community on draft guidance related to the use of artificial intelligence in developing and reviewing research proposals. The agencies developed the draft guidance based on the advice and recommendations of an ad hoc panel of external experts. The guidance is intended to clarify how existing agency policies apply to the use of artificial intelligence.

After a successful three-year-long pilot phase, the Tri-agency Interdisciplinary Peer Review Committee (TAIPR) will continue as a regular feature of each agency’s selected funding opportunities, including SSHRC’s Insight Grants and Insight Development Grants, CIHR’s Project Grants and NSERC’s Discovery Horizons.

On February 28, 2024, the Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry, announced the reappointment of Dr. Ted Hewitt as the president of SSHRC for a two-year term.

On March 18, 2024, SSHRC welcomed its new Vice-President Stakeholder Relations and Advancement of Society, Tara Lapointe, who is providing strategic leadership to advance and mobilize social sciences and humanities research.

Seven new members were appointed to SSHRC’s governing council in Spring 2024, bringing the membership to a total of 16. SSHRC's governing council offers a broad view of Canada’s needs and opportunities, and advises the president of SSHRC on strategy, risk management, performance management and stakeholder relations. Council members are leading representatives from the not-for-profit, public, private and academic sectors who are appointed by the Governor in Council on the recommendation of the Minister of Innovation, Science and Industry.

From June 28th at 4:00 pm to July 2nd at 8:00 am, NSERC and SSHRC successfully moved their joint Data Centre from Constitution Square to a Shared Services Canada (SSC) location in Gatineau, QC. This project had been well planned and implemented, with a comprehensive contingency plan to manage critical risks.

Approved by:

Ted Hewitt, PhD
President

Dominique Osterrath
Vice-President and Chief Financial Officer

Ottawa, Canada
August 29, 2024

5. Statement of authorities (unaudited)

6. Departmental budgetary expenditures by standard object (unaudited)