Social Sciences and Humanities Research Council of Canada
Quarterly Financial Report for the Quarter Ended December 31, 2025

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 2025-26 Main Estimates 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 and Supplementary Estimates (B) for fiscal year 2025-26. 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 to the same period of 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 2025-26 and 2024-25.

2.1 Significant changes to budgetary authorities

As of December 31, 2025, SSHRC’s total available authorities for fiscal year 2025-26 amounted to $1.3 billion. This represents an overall increase of $32.4 million (2.5%) 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 $29.4 million from Budget 2024 to increase support for core research grants; and
• an increase of $4.6 million for the transfer of funds related to the College and Community Innovation program from the Natural Sciences and Engineering Research Council (NSERC), to increase innovation through partnerships between Canadian colleges, universities and local companies.

2.2 Significant changes to authorities used

Year-to-date spending

The following table provides a comparison of cumulative spending, at the end of the third quarter, by vote for the current and previous fiscal years.

Year-to-date budgetary expenditures used at quarter-end (millions of dollars)	2025-26	2024-25	Variance
Vote 1—Operating expenditures
Personnel (includes contributions to employee benefit plans)	37.3	40.5	(3.2)
Non-personnel	4.2	4.2	-
Vote 5—Grants and scholarships	926.4	854.5	71.9
Total budgetary expenditures	967.9	899.2	68.7

Total budgetary expenditures amounted to $967.9 million at the end of the third quarter of fiscal year 2025-26 compared to $899.2 million reported in the same period of the previous fiscal year.

Grants and scholarships

At the end of the third quarter of fiscal year 2025-26, grant and scholarship expenses increased by $71.9 million compared to those reported in the same period of the previous fiscal year. The increase is mainly due to additional budget authorities (see section 2.1) and the timing of award payments.

Operating expenditures

Personnel expenditures, which include contributions to employee benefit plans (EBP), have decreased by $3.2 million compared to the same period of the previous year, mainly due to the implementation of the new collective agreement in October 2024, resulting in salary increases and retroactive payments in 2024-25.

Total non-personnel expenditures as of the third quarter of fiscal year 2025-26 have remained largely in line with the comparative period of the previous fiscal year. There was an increase in acquisition of client software and computer hardware, offset by a decrease in rentals of client, application and server software, and a decrease in professional services of the information technology and telecommunications. 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 2025-26 ($967.9  million) represent 73% of total available authorities ($1.3 billion).

Quarterly spending

The total authorities used during the third quarter of fiscal year 2025-26 amounted to $315.8 million (23.7% of the total available authorities; 23.7% of total authorities for grant and scholarship programs; and 24.6% of total authorities for operating expenditures and employee benefits).

Budgetary expenditures used during the quarter (millions of dollars)	2025-26	2024-25	Variance
Vote 1—Operating expenditures
Personnel (includes contributions to employee benefit plans)	12.8	18.5	(5.7)
Non-personnel	1.6	1.9	(0.3)
Vote 5—Grants and scholarships	301.4	303.0	(1.6)
Total budgetary expenditures	315.8	323.4	(7.6)

Grants and scholarships

Transfer payments represent 95.6% 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 2025-26, SSHRC’s transfer payment expenditures decreased by $1.6 million compared to the same quarter of the previous fiscal year.

The variance is due mainly to the timing of award payments partially offset by additional budget authorities (see section 2.1).

Operating expenditures

Personnel expenditures (includes contributions to EBP) for the third quarter of fiscal year 2025-26 have decreased by $5.7 million compared to the same period of 2024-25, mainly due to the implementation of the new collective agreement in October 2024, resulting in salary increases and retroactive payments in 2024-25.

Total non-personnel expenditures for the third quarter of fiscal year 2025-26 have remained largely in line with the comparative period of the previous fiscal year. There was an increase in acquisition of client software and computer hardware, offset by a decrease in rentals of client, application and server software, as well as a decrease in information technology and telecommunication professional services, translation and computer services. 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 2025-26 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

SSHRC’s ability to allocate financial and human resources, including the recruitment and retention of talent, to support new and existing priorities may be limited by the implementation of a new grant management solution and the continued maintenance of SSHRC’s legacy information management and information technology systems compounded with multiple resource pressures facing the organization (e.g., design and delivery of new programs, expanded collaboration with external stakeholders and the continued adaptation to an evolving environment).

Risk 2—Managing change

The continued volume, complexity and uncertainty of changes facing both SSHRC and the research ecosystem will have a significant impact on SSHRC staff and may challenge SSHRC’s ability to successfully deliver core programming and implement new investments and new structures.

Risk 3—Reinforcing the value of research and research training in the social sciences and humanities

SSHRC’s influence and role in the Government of Canada’s science and innovation strategy and the broader research ecosystem is affected by public perceptions of the value of social science and humanities research, which is directly impacted by how well we identify and communicate, in both official languages, the excellence and impact of the research and training we support and build strong partnerships across sectors.

4. Significant changes related to operations, personnel and programs

On October 9, 2025, SSHRC welcomed its new Chief Information Officer, Deputy Chief Security Officer, and Director General of the Information and Innovative Solutions Division for both SSHRC and NSERC, Stéphane Caron. In addition, Joann Shields also joined both organizations as Transformation Lead for the Tri-agency Grants Management Solution (TGMS) project, on the same date.

Budget 2025 announced new investments totalling $1.7 billion through a targeted one-time initiative to recruit more than 1,000 highly qualified international researchers to Canada. In the context of the Comprehensive Expenditure Review, the Budget established a savings target of 2% of the review base for SSHRC and the other federal research funding agencies. Implementing these savings, while simultaneously delivering the new investments noted above and advancing the TGMS initiative, will create compounding operational pressures for the organizations.

On December 9, 2025, the Canada Global Impact+ Research Talent Initiative was launched, which includes the Canada Impact+ Research Chairs, the Canada Impact+ Emerging Leaders and the Canada Impact+ Research Training Awards. This suite of new funding initiatives is designed to attract top global talent to Canada, which will help drive Canadian innovation, growth and prosperity.

Approved by:

Ted Hewitt, PhD
President

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

Ottawa, Canada
February 27, 2026

5. Statement of authorities (unaudited)

6. Departmental budgetary expenditures by standard object (unaudited)