Social Sciences and Humanities Research Council of Canada
Quarterly Financial Report for the Quarter Ended December 31, 2024

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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)

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

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, Supplementary Estimates (A) and Supplementary Estimates (B). 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 SSHRC’s 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, Supplementary Estimates (A) and Supplementary Estimates (B) for fiscal year 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 years 2024-25 and 2023-24.

2.1 Significant changes to budgetary authorities

As of December 31, 2024, SSHRC’s total available authorities for fiscal year 2024-25 amounted to $1.3 billion. This represents an overall increase of $134.0 million (11.5%) 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 $63.1 million from Budget 2024 for the increase in value of scholarships and fellowships awards;
• an increase of $36.0 million from Budget 2021 for a reprofile of the Canada Biomedical Research Fund;
• an increase of $28.8 million from Budget 2024 to increase core research grants;
• a decrease of $8.4 million from Budget 2021 for the Race, Gender and Diversity Initiative;
• an increase of $6.6 million from Budget 2014 for the Canada First Research Excellence Fund, to help postsecondary institutions excel globally in research areas that create long-term economic advantages for Canada;
• an increase of $5.7 million from Budget 2008 for the adjusted distribution of the Canada Excellence Research Chairs Program between SSHRC, the Canadian Institutes of Health Research (CIHR) and the Natural Sciences and Engineering Research Council of Canada (NSERC);
• an increase of $4.7 million from Budget 2022 for the Social Sciences and Humanities Research Network on Sustainable Agriculture and Agri-Food Innovation in a Net Zero Economy program to support university researchers in developing technologies and crop varieties that will allow for net-zero emission agriculture; and
• a decrease of $2.9 million from Budget 2019 for the adjusted distribution of the Canada Graduate Scholarships between 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)	40.5	30.3	10.2
Non-personnel	4.2	4.6	(0.4)
Vote 5—Grants and scholarships	854.5	757.1	97.4
Total budgetary expenditures	899.2	792.0	107.2

Total budgetary expenditures amounted to $899.2 million at the end of the third quarter of fiscal year 2024-25 compared to $792.0 million reported in the same period of the previous fiscal year.

Grants and scholarships

At the end of the third quarter of fiscal year 2024-25, grant and scholarship expenses increased by $97.4 million compared to those reported in the same period of the previous fiscal year. The increase is due mainly to additional budget authorities (refer to section 2.1) and the timing of award payments.

Operating expenditures

Personnel expenditures, which include contributions to employee benefit plans, have increased by $10.2 million compared to the same period of the previous year, mainly due to the implementation of the new collective agreement (October 2024) and related clauses relative to salary increases and retroactive payments.

Total non-personnel expenditures as of the third quarter of fiscal year 2024-25 have remained largely in line with the comparative period of the previous fiscal year. There was a decrease in professional and special services due to the reduced use of information technology and telecommunications consultants and a decrease in information for less spending on subscriptions and publications, offset by an increase in rentals of software and in transportation and communications. See the Departmental budgetary expenditures by standard object table in section 6 for details.

Total authorities used at the end of the third quarter of fiscal year 2024-25 ($899.2 million) represent 69% of total available authorities ($1.3 billion).

Quarterly spending

The total authorities used during the third quarter of fiscal year 2024-25 amounted to $323.4 million (25% of the total available authorities; 25% of total authorities for grants and scholarships programs; and 33% of total authorities for operating expenditures and employee benefits).

Budgetary expenditures used during the third quarter (milions of dollars)	2024-25	2023-24	Variance
Vote 1—Operating expenditures
Personnel (includes contributions to employee benefit plans)	18.5	10.3	8.2
Non-personnel	1.9	1.9	-
Vote 5—Grants and scholarships	303.0	248.0	55.0
Total budgetary expenditures	323.4	260.2	63.2

Grants and scholarships

Transfer payments represent 95% of SSHRC’s available authorities. Variations occur in transfer payment expenditures between quarters due to the nature of program cycles. During the third quarter of fiscal year 2024-25, SSHRC’s transfer payment expenditures increased by $55 million compared with the same quarter of the previous fiscal year.

The variance is due mainly to additional budget authorities (refer to section 2.1) and the timing of award payments.

Operating expenditures

Personnel expenditures (includes contributions to employee benefit plans) for the third quarter of fiscal year 2024-25 have increased by $8.2 million compared to the comparative period of 2023-24, mainly due to the implementation of the new collective agreement (October 2024) and related clauses relative to salary increases and retroactive payments.

Total non-personnel expenditures for the third quarter of fiscal year 2024-25 have remained in line with expenses incurred during the same period of the previous fiscal year. There was an increase in rentals of software and in transportation and communications, offset by a decrease in information for less spending on subscriptions and publications services, in acquisition of client software, and in professional and special services due to the reduced use of information technology and telecommunications consultants. See the Departmental budgetary expenditures by standard object table in section 6 for additional details.

3. Risks and uncertainties

Through the corporate risk identification exercise, SSHRC produces an annual Corporate Risk Profile that includes strategic risks, 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 three key risks.

Risk 1—Managing resources

Strains on SSHRC’s aging legacy information management and information technology systems are being 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 ongoing adaptation to the new hybrid workplace). Together, these factors 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 our ability to foster a more equitable and inclusive research environment, our capacity to adapt to changing government priorities, public perceptions of our relevance and impact in both official languages, 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

On October 24, the presidents of the three federal funding agencies announced they would gradually transition to a new, narrative-style tri-agency CV for their competitions. Over the next few years, all funding opportunities will be moved to the new CV as they are each onboarded to the tri-agency grants management solution (TGMS). This project will modernize the funding agencies’ systems to better support applicants, administrators and reviewers. On November 28, SSHRC further shared that it will begin the process by gradually transitioning funding opportunities that use the Convergence Portal to the new CV format, starting in December 2024. The first funding opportunity to use the new tri-agency CV will be the 2025 Impact Awards competition.

Following the success of a five-year pilot, the Dimensions: equity, diversity and inclusion Canada program will launch a new phase. This federal tri-agency initiative was co-designed with a cohort of 17 postsecondary institutions to help address systemic barriers and foster a culture where equity, diversity and inclusion are embedded across all aspects of research.

On November 6, SSHRC announced that award top-ups have been sent to eligible students, postdoctoral researchers and institutions, following increased investment in research and innovation in Budget 2024.

To support research and research training in the social sciences and humanities, $315,493,311 of the $1.8 billion will be allocated to SSHRC’s Insight Research program and Research Partnerships program over five years, with $136,273,247 ongoing. The new investments will fund more research projects, supporting more scholars, students and postdoctoral researchers. In addition to the increased award values, approximately 1,720 additional graduate students and fellows will have access to new funding when the new harmonized programs are launched.

On November 18, the three federal granting agencies and the Canada Foundation for Innovation released Guidance on the use of Artificial Intelligence in the development and review of research grant proposals. Intended for researchers in Canada and Canadian postsecondary institutions, the guidance, developed by the agencies, draws heavily on the advice from the expert panel’s findings and on feedback from the research community received during a public consultation period that closed in June 2024.

On December 2, SSHRC launched a new funding opportunity: Destination Horizon Grants. Valued at $15,000 for one year, these grants are intended to support researchers affiliated with eligible Canadian postsecondary institutions in building capacity, fostering existing partnerships and further developing networks/consortia with researchers from the European Union and other associated countries. The ultimate goal of these new grants is to enable Canadian researchers to apply to Horizon Europe Pillar 2 calls for proposals. This funding opportunity follows an agreement signed by the Government of Canada and the European Commission allowing for increased Canadian participation in Horizon Europe under Pillar 2. This agreement provides Canadians with greater access to Horizon Europe.

As announced in Budget 2024 and updated in the Fall Economic Statement, the three federal research funding agencies - CIHR, NSERC and SSHRC - invited community input on the Government of Canada’s vision to create a new capstone research funding organization. Over the past few months, through engagement sessions and written submissions, respondents in all disciplinary communities and those representing community-wide interests articulated clear and consistent themes in calling for sustained community engagement and further clarity in the scope and mandate of the proposed capstone organization, urging officials to build on core principles and existing strengths in the research ecosystem while setting out practical approaches to shape the new organization. The government is ensuring that the research community is engaged in all stages of development, and further details will be announced in the coming months.

Approved by:

Ted Hewitt, PhD
President

Dominique Osterrath
Chief Financial Officer and Vice-President, Common Administrative Services Directorate

Ottawa, Canada
February 28, 2025

5. Statement of authorities (unaudited)

6. Departmental budgetary expenditures by standard object (unaudited)