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Section III: Supplementary Information

Table 5: Departmental Link to Government of Canada Outcome Areas (for DPRs)

Strategic Outcome: 1.0 Outstanding Research
($ millions)	Actual Spending 2007-2008			Alignment to Government of Canada Outcome Area
	Budgetary	Non-budgetary	Total
Activity 1.1 - Fund health research	$539.5	$ -	$539.5	Economic: An innovative and knowledge-based economy

 

Strategic Outcome: 2.0 Outstanding Researchers in Innovative Environments
($ millions)	Actual Spending 2007-2008			Alignment to Government of Canada Outcome Area
	Budgetary	Non-budgetary	Total
Activity 2.1 - Fund health researchers and trainees	$202.3	$ -	$202.3	Economic: An innovative and knowledge-based economy
Activity 2.2 - Fund research resources, collaboration and other grants to strengthen the health research community	$68.0	$ -	$ 68.0	Social: Healthy Canadians with access to quality health care
Activity 2.3 - Develop and support strong health research community through national and international alliances and priority setting	$24.0	$ -	$24.0	Social: Healthy Canadians with access to quality health care
Activity 2.4 - Inform research, clinical practice and public policy on ethical, social and legal issues (ELSI) related to health and health research	$2.2	$ -	$2.2	Social: Healthy Canadians with access to quality health care

 

Strategic Outcome: 3.0 Transforming Health Research into Action
($ millions)	Actual Spending 2007-2008			Alignment to Government of Canada Outcome Area
	Budgetary	Non-budgetary	Total
Activity 3.1 - Support activities on knowledge translation, exchange, use and strategies to strengthen the health system	$39.8	$ -	$39.8	Social: Healthy Canadians with access to quality health care
Activity 3.2 - Support national efforts to capture the economic value for Canada of health research advances made at Canadian institutions	$98.3	$ -	$98.3	Economic: An innovative and knowledge-based economy

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Table 6: Comparison of Planned to Actual Spending (including FTEs)

($ millions)	2005-2006 Actual	2006-2007 Actual	2007-2008
			Main Estimates	Planned Spending	Total Authorities	Actual
Fund health research	466.5	499.5	493.5	493.5	535.7	539.5
Fund health researchers and trainees	178.3	190.4	203.6	203.6	208.5	202.3
Fund research resources, collaboration and other grants to strengthen the health research community	70.0	66.2	70.0	70.0	69.7	68.0
Develop and support a strong health research community through national and international alliances and priority setting	23.4	23.3	28.1	28.1	28.2	24.0
Inform research, clinical practice and public policy on ethical, legal and social issues (ELSI) related to health and health research	1.9	2.2	6.3	6.3	6.3	2.2
Support activities on knowledge translation, exchange, use and strategies to strengthen the health system	35.4	35.0	40.7	40.7	41.9	39.8
Support national efforts to capture the economic value for Canada of health research advances made at Canadian Institutions	25.4	26.7	27.3	27.3	103.4	98.3
Total	800.9	843.3	869.5	869.5	993.7	974.1
Less: Non‑respendable revenue	4.1	2.4	N/A	2.8	N/A	3.1
Plus: Cost of services received without charge	4.8	5.2	N/A	5.5	N/A	5.6
Total Departmental Spending	801.6	846.1	N/A	872.2	N/A	976.6
Full-time Equivalents	324	347	406	406	406	361

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Table 7: Voted and Statutory Items

Vote or Statutory Item	Truncated Vote or Statutory Wording	2007-2008 ($ millions)
		Main Estimates	Planned Spending	Total Authorities	Actual
15	Operating expenditures	42.5	42.5	45.1	42.8
20	Grants and contributions	822.4	822.4	944.0	926.7
(S)	Contributions to employee benefit plans	4.6	4.6	4.6	4.6
	Total	869.5	869.5	993.7	974.1

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Table 8: Sources of Respendable and Non-Respendable Revenue

Non-Respendable Revenue

($ millions)	Actual 2005-2006	Actual 2006-2007	2007-2008
			Main Estimates	Planned Revenue	Total Authorities	Actual
Fund health research
Refunds of Previous Years' Expenditures	2.2	1.3	N/A	1.5	N/A	1.7
Fund health researchers and trainees
Refunds of Previous Years' Expenditures	1.1	0.6	N/A	0.8	N/A	0.8
Fund research resources, collaboration and other grants to strengthen the health research community
Refunds of Previous Years' Expenditures	0.3	0.2	N/A	0.2	N/A	0.2
Develop and support a strong health research community through national and international alliances and priority setting
Refunds of Previous Years' Expenditures	0.1	0.1	N/A	0.1	N/A	0.0
Inform research, clinical practice and public policy on ethical, legal and social issues (ELSI) related to health and health research
Refunds of Previous Years' Expenditures	0.1	0.0	N/A	0.0	N/A	0.1
Support activities on knowledge translation, exchange, use and strategies to strengthen the health system
Refunds of Previous Years' Expenditures	0.2	0.1	N/A	0.1	N/A	0.2
Support national efforts to capture the economic value for Canada of health research advances made at Canadian Institutions
Refunds of Previous Years' Expenditures	0.1	0.1	N/A	0.1	N/A	0.1
Total Non-Respendable Revenue	4.1	2.4	N/A	2.8	N/A	3.1

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Table 9: Crosswalk - Performance Indicators Used in 2007-2008 RPP vs. 2007-2008 DPR

CIHR continues to make modifications to the set of performance indicators used to monitor its various program activities and sub-activities. In some cases the indicators used differ from those identified in the 2007-2008 RPP due to the availability of performance data or concerns that the data was not reliable. However, the indicators used in this report are consistent with those used in the DPR for 2006-2007.

Program Activity and Expected Results	Performance Indicators Used in 2007-2008 RPP	Performance Indicators Used in 2007-2008 DPR
1.1: Funding health research Effective and efficient funding programs that enable ethical health research creating health knowledge that responds to opportunities and priorities.	1. Success of CIHR-funded research programs, including results, awareness and satisfaction levels 2. Extent to which Institutes have appropriately influenced the research, policy and/or practice agendas in their communities	1. Level of activity: number and dollar value of investments 2. Success of CIHR-funded research programs, including results, awareness and satisfaction levels 3. Extent to which Institutes have appropriately influenced the research, policy and/or practice agendas in their communities
2.1: Fund health researchers and trainees Effective and efficient funding programs that ensure a supply of highly trained health researchers and trainees are available to conduct outstanding research.	1. Success of CIHR-funded salary and training programs, including results, awareness and satisfaction levels 2. Level and success of Institute activity in creating opportunities for capacity development based on successful initial and ongoing identification and targeting of research domains in need of capacity development	1. Level of activity: number and dollar value of investments 2. Success of CIHR-funded salary and training programs, including results, awareness and satisfaction levels
2.2: Fund research resources, collaboration and other grants to strengthen the health research community Effective and efficient partnerships and funding programs that lead to a dynamic research environment and outstanding research.	1. Success of CIHR-funded research resources and collaboration programs, including results, awareness and satisfaction levels 2. Expenditure levels and distribution 3. Level of Institute leadership, activity and success in strengthening research infrastructure/environment	1. Level of activity: number and dollar value of investments 2. Success of CIHR-funded research resources and collaboration programs, including results, awareness and satisfaction levels
2.3: Develop and support a strong health research community through national and international alliances and priority-setting National and international research agendas are formulated and implemented.	1. Success of CIHR-funded partnership research programs, including results, awareness and satisfaction levels 2. Number, diversity and scope of linkages, exchanges, alliances and partnerships with other organizations including health policy-makers at all levels of government (especially provincial governments) compared to baseline. Includes willingness of stakeholders to support research in Institute domains and number and size of funding flows through jointly-funded partnership programs where relevant	1. Level of activity: number and dollar value of investments 2. Success of CIHR-funded partnership research programs, including results, awareness and satisfaction levels
2.4: Inform research, clinical practice and public policy on ethical, legal and social issues (ELSI) related to health and health research. Uptake and application of ethics knowledge as an integral part of decision-making in health practice, research and policy.	1. Success of CIHR's ELSI activities, for example, changes in the number of ethics-related incidents that arise from health practice, research, and policies 2. Number of publications resulting from ELSI research 3. Number of public policies influenced by ELSI principles 4. Opinions of health researchers, and policy-makers regarding their success in uptake and application of ethical knowledge	1. Level of activity: number and dollar value of investments 2. Success of CIHR ELSI activities, including results, awareness and satisfaction levels
3.1: Support activities on knowledge translation, exchange, use and strategies to strengthen the health system. Effective dissemination, exchange, synthesis and application of research results take place to create new knowledge, strengthen Canadian capacity and networks and, together with our partners, enable effective research and application of health research results.	1. Success of CIHR-funded research programs, including results, awareness and satisfaction levels 2. Increased number, scope and diversity of knowledge translation activities supported by CIHR (and its partners where relevant) or resulting from CIHR activities (for example, synthesis papers, briefs, participation in policy task forces) compared to baseline 3. Identification of and initial communication with key knowledge translation stakeholders, followed by increased number of inputs (driven by research evidence) to stakeholders' decision processes	1. Level of activity: number and dollar value of investments 2. Success of CIHR-funded research programs, including results, awareness and satisfaction levels
3.2: Support national efforts to capture the economic value for Canada of health research advances made at Canadian institutions. Implement strategies to enable the effective development and commercialization of health research that will lead to a better quality of life for Canadians through improvements in the Canadian health system, products and economy. As well, plan, launch and manage competitions and programs for grant funds to create and transfer new knowledge, strengthen Canadian capacity and networks and undertake effective commercialization of health research.	1. Success of CIHR-funded research programs, including results, awareness and satisfaction levels 2. Number and nature of patents, spin-off companies and licenses for intellectual property (IP) generated from CIHR-funded research	1. Level of activity: number and dollar value of investments 2. Success of CIHR-funded research programs, including results, awareness and satisfaction levels. 3. Number and nature of patents, spin-off companies and licenses for intellectual property (IP) generated from CIHR-funded research.

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Table 10: Financial Statements

Canadian Institutes of Health Research
Management Responsibility for Financial Statements

Responsibility for the integrity and objectivity of the accompanying financial statements of the Canadian Institutes of Health Research (CIHR) for the year ended March 31, 2008 and all information contained in these statements rests with CIHR's management. These financial statements have been prepared by management in accordance with Treasury Board accounting policies and year-end instructions issued by the Office of the Comptroller General, which are consistent with Canadian generally accepted accounting principles for the public sector.

Management is responsible for the integrity and objectivity of the information in these financial statements. Some of the information in the financial statements is based on management's best estimates and judgement and gives due consideration to materiality. To fulfil its accounting and reporting responsibilities, management maintains a set of accounts that provides a centralized record of CIHR's financial transactions. Financial information submitted to the Public Accounts of Canada and included in CIHR's Departmental Performance Report and Annual Report is consistent with these financial statements.

Management maintains a system of financial management and internal control designed to provide reasonable assurance that financial information is reliable, that assets are safeguarded and that transactions are in accordance with the Financial Administration Act, are executed in accordance with prescribed regulations, within Parliamentary authorities, and are properly recorded to maintain accountability of Government funds and endowments. Management also seeks to ensure the objectivity and integrity of data in its financial statements by careful selection, training and development of qualified staff, by organizational arrangements that provide appropriate divisions of responsibility and by communications programs aimed at ensuring that regulations, policies, standards and managerial authorities are understood throughout the organization.

The Standing Committee on Performance Measurement, Evaluation and Audit, appointed by the Governing Council of CIHR, has reviewed these statements with management and the auditors, and has reported to the Governing Council. The Governing Council has approved the financial statements.

The financial statements of CIHR have been audited by the Auditor General of Canada, the independent auditor for the Government of Canada.

Approved by:

James Roberge, CMA Chief Financial Officer

Pierre Chartrand, PhD Acting President

May 30, 2008

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Auditor's Report

To the Canadian Institutes of Health Research and the Minister of Health

I have audited the statement of financial position of the Canadian Institutes of Health Research (CIHR) as at March 31, 2008 and the statements of operations, equity and cash flow for the year then ended. These financial statements are the responsibility of CIHR's management. My responsibility is to express an opinion on these financial statements based on my audit.

I conducted my audit in accordance with Canadian generally accepted auditing standards. Those standards require that I plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.

In my opinion, these financial statements present fairly, in all material respects, the financial position of CIHR as at March 31, 2008 and the results of its operations and its cash flows for the year then ended in accordance with Canadian generally accepted accounting principles.

Nancy Y. Cheng, FCA
Assistant Auditor General
for the Auditor General of Canada

Ottawa, Canada
May 30, 2008

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Canadian Institutes of Health Research
Statement of Operations
for the Year Ended March 31

(in thousands of dollars)

		2008	2007
Expenses (Note 4)
	Health research	547,858	511,042
	Health researchers in innovative environments	317,424	284,348
	Transforming health research into action	143,060	62,421
Total Expenses		1,008,342	857,811
Revenues (Note 5)
	Health research	5,099	6,319
	Health researchers in innovative environments	2,954	3,516
	Transforming health research into action	1,332	772
Total Revenues		9,385	10,607
Net Cost of Operations		998,957	847,204

The accompanying notes are an integral part of these financial statements.

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Canadian Institutes of Health Research
Statement of Financial Position
as at March 31

(in thousands of dollars)

			2008	2007
Assets Financial Assets
	Due from the Consolidated Revenue Fund		36,371	15,751
	Accounts receivable:
		Other Federal Government departments	296	678
		External parties	465	395
	Advances		196	196
Total financial assets			37,328	17,020
Non-financial assets
	Prepaid expenses		82	445
	Tangible capital assets (Note 6)		3,134	3,904
Total non-financial assets			3,216	4,349
Total Assets			40,544	21,369
Liabilities
	Accounts payable and accrued liabilities
		Other Federal Government departments	465	444
		External parties	3,894	2,577
		Gairdner Foundation grant (Note 7)	20,000	-
	Vacation pay and compensatory leave		1,316	1,110
	Deferred revenue (Note 8)		12,011	12,730
	Employee severance benefits (Note 9)		6,573	5,248
Total Liabilities			44,259	22,109
Equity of Canada			(3,715)	(740)
Total Liabilities and Equity of Canada			40,544	21,369

Contingent liabilities (Note 10)
Contractual obligations (Note 11)
The accompanying notes are an integral part of these financial statements.

Approved by Governing Council: Pierre Chartrand, PhD Acting President

Approved by Management: James Roberge, CMA Chief Financial Officer

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Canadian Institutes of Health Research
Statement of Equity
as at March 31

(in thousands of dollars)

		2008	2007
Equity of Canada, Beginning of Year		(740)	(41)
	Net cost of operations	(998,957)	(847,204)
	Net cash provided by Government	969,803	844,170
	Change in Due from the Consolidated Revenue Fund	20,620	(2,889)
	Services provided without charge by other Government departments (Note 12)	5,559	5,224
Equity of Canada, End of Year		(3,715)	(740)

The accompanying notes are an integral part of these financial statements.

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Canadian Institutes of Health Research
Statement of Cash Flow
for the Year Ended March 31

(in thousands of dollars)

			2008	2007
Operating Activities
	Net cost of operations		998,957	847,204
	Non-cash items:
		Amortization of tangible capital assets	(1,868)	(1,498)
		Services provided without charge by other Government departments	(5,559)	(5,224)
		Gain on disposal of capital assets	-	4
			(7,427)	(6,718)
	Variations in Statement of Financial Position:
		(Decrease) increase in accounts receivable and advances	(312)	358
		(Decrease) increase in prepaid expenses	(363)	(97)
		(Increase) decrease in liabilities	(22,150)	2,074
			(22,825)	2,335
Cash Used by Operating Activities			968,705	842,821
Capital Investment Activities
	Acquisitions of tangible capital assets		1,098	1,358
	Proceeds on disposal of capital assets		-	(9)
Cash Used by Capital Investment Activities			1,098	1,349
Financing Activities
	Net Cash Provided by Government of Canada		969,803	844,170

The accompanying notes are an integral part of these financial statements.

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Canadian Institutes of Health Research
Notes to the Financial Statements
for the Year Ended March 31, 2008

1. Authority and Objectives

The Canadian Institutes of Health Research (CIHR) was established in June 2000 under the Canadian Institutes of Health Research Act, replacing the former Medical Research Council of Canada. It is listed in Schedule II to the Financial Administration Act as a departmental corporation.

CIHR's objective is to excel, according to international standards of scientific excellence, in the creation of new knowledge, and its translation into improved health, more effective health services and products, and a strengthened Canadian health care system. CIHR achieves these objectives through three strategic outcomes. The first strategic outcome is outstanding research, achieved by funding excellent and ethical health research across all disciplines that are relevant to health. The second strategic outcome is outstanding researchers in innovative environments, achieved by providing funding to develop and sustain health researchers in vibrant, innovative and stable research environments. The third strategic outcome is transforming health research into action, achieved by CIHR's knowledge translation activities and funding aimed to accelerate the transformation of research results into health benefits for Canadians and an improved health care system as well as helping to move new research breakthroughs toward potential commercial applications.

CIHR is led by a President who is the Chairperson of a Governing Council of not more than nineteen other members appointed by the Governor in Council. The Governing Council sets overall strategic direction, goals and policies and oversees programming, resource allocation, ethics, finances, planning and accountability.

CIHR has thirteen Institutes that focus on identifying the research needs and priorities for specific health areas, or for specific populations, then developing strategic initiatives to address those needs. Each Institute is led by a Scientific Director who is guided by an Institute Advisory Board, which strives to include representation of the public, researcher communities, research funders, health professionals, health policy specialists and other users of research results.

CIHR's grants, awards, and operating expenditures are funded by budgetary authorities. Employee benefits are funded by statutory authorities.

2. Significant Accounting Policies

These financial statements have been prepared in accordance with Treasury Board accounting policies and year-end instructions issued by the Office of the Comptroller General, which are consistent with Canadian generally accepted accounting principles for the public sector. The most significant accounting policies are as follows:

(a) Parliamentary appropriations - CIHR is financed by the Government of Canada through Parliamentary appropriations. Appropriations provided to CIHR do not parallel financial reporting according to generally accepted accounting principles since appropriations are primarily based on cash flow requirements. Consequently, items recognized in the statement of operations and the statement of financial position are not necessarily the same as those provided through appropriations from Parliament. Note 3 provides a high-level reconciliation between the bases of reporting.

(b) Net cash provided by government - CIHR operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by CIHR is deposited to the CRF and all cash disbursements made by CIHR are paid from the CRF. The net cash provided by Government is the difference between all cash receipts and all cash disbursements including transactions between departments of the Federal Government.

(c) Due from the Consolidated Revenue Fund represents the amount of cash that CIHR is entitled to draw from the Consolidated Revenue Fund without further appropriations, in order to discharge its liabilities.

(d) Revenues

• Funds received from external parties for specified purposes are recorded upon receipt as deferred revenues. These revenues are recognized in the period in which the related expenses are incurred.
• Other revenues are accounted for in the period in which the underlying transaction or event occurred that gave rise to the revenues.

(e) Expenses - Expenses are recorded on the accrual basis:

• Grants and awards are recognized when the entitlement has been established, the recipient has met the eligibility criteria, and program authority exists.
• Vacation pay and compensatory leave are expensed as the benefits accrue to employees under their respective terms of employment.
• Services provided without charge by other government departments are recorded as operating expenses at their estimated cost.

(f) Refunds of previous years' expenses - These amounts include the return of grants and awards funds to CIHR in the current fiscal year for expenses incurred in previous fiscal years due to cancellations; refunds of previous years' expenses related to goods or services; and adjustments of previous years' accounts payable. These refunds and adjustments are recorded as expenses in the financial statements but are recorded as revenue on an appropriation basis and therefore are excluded when determining current year appropriations used.

(g) Employee future benefits

1. Pension benefits: Eligible employees participate in the Public Service Pension Plan, a multiemployer defined benefit plan administered by the Government of Canada. CIHR's contributions to the Plan are charged to expenses in the year incurred and represent the total obligation of CIHR to the Plan. Current legislation does not require CIHR to make contributions for any actuarial deficiencies of the Plan.

2. Severance benefits: Employees are entitled to severance benefits under labour contracts or conditions of employment. These benefits are accrued as employees render the services necessary to earn them. The obligation relating to the benefits earned by employees is calculated using information derived from the results of the actuarially determined liability for employee severance benefits for the Government as a whole.

(h) Accounts receivable - These are stated at amounts expected to be ultimately realized.
A provision for doubtful accounts is made for any amounts where recovery is considered uncertain.

(i) Contingent liabilities - Contingent liabilities are potential liabilities which may become actual liabilities when one or more future events occur or fail to occur. To the extent that the future event is likely to occur or fail to occur, and a reasonable estimate of the loss can be made, an estimated liability is accrued and an expense is recorded. If the likelihood is not determinable or an amount cannot be reasonably estimated, the contingency is disclosed in the notes to the financial statements.

(j) Tangible capital assets - All tangible capital assets having an individual initial cost of $5,000 or more are recorded at their acquisition cost. Amortization of tangible capital assets is done on a straight-line basis over the estimated useful life of the capital asset as follows:

Asset Class	Amortization Period
Informatics hardware	3-5 years
Informatics software	3 years
Office equipment	10 years
Motor vehicles	5 years

Amounts included in work-in-progress are uncompleted capital projects which are transferred to the appropriate asset class upon completion, and are then amortized according to CIHR's policy.

(k) Measurement uncertainty - The preparation of these financial statements in accordance with Treasury Board accounting policies and year-end instructions issued by the Office of the Comptroller General, which are consistent with Canadian generally accepted accounting principles for the public sector, requires management to make estimates and assumptions that affect the amounts of assets, liabilities, revenues and expenses reported in the financial statements. At the time of preparation of these statements, management believes the estimates and assumptions to be reasonable. The most significant items where estimates are used are contingent liabilities, the liability for vacation pay and compensatory leave, employee severance benefits, the useful life of tangible capital assets, and services provided without charge. Actual results could differ significantly from those estimated. Management's estimates are reviewed periodically and, as adjustments become necessary, they are recorded in the financial statements in the year they become known.

3. Parliamentary Appropriations

CIHR receives most of its funding through annual parliamentary appropriations. Items recognized in the statement of operations and the statement of financial position in one year may be funded through parliamentary appropriations in prior, current or future years. Accordingly, CIHR has different net results of operations for the year on a government funding basis than on an accrual accounting basis. The differences are reconciled in the following tables:

(a) Reconciliation of net cost of operations to current year appropriations used
(in thousands of dollars)

			2008	2007
Net cost of operations			998,957	847,204
Adjustments for items affecting net cost of operations but not affecting appropriations:
	Add (Less):
		Services provided without charge	(5,559)	(5,224)
		Gairdner Foundation grant (Note 7)	(20,000)	-
		Gain on disposal of capital assets	-	4
		Refunds of previous years' expenses	3,087	2,432
		Employee severance benefits	(1,325)	(615)
		Amortization of tangible capital assets	(1,868)	(1,498)
		Vacation pay and compensatory leave	(206)	(200)
		Other adjustments	249	(94)
			(25,622)	(5,195)
Adjustments for items not affecting net cost of operations but affecting appropriations
	Add (Less):
		Acquisitions of tangible capital assets	1,098	1,358
		Prepaid expenses	(363)	(97)
Current year appropriations used			974,070	843,270

(b) Appropriations provided and used
(in thousands of dollars)

	2008	2007
Parliamentary appropriations provided:
Vote 15 - Operating expenditures	45,060	43,021
Less:
Lapsed appropriation	(2,333)	(3,657)
	42,727	39,364
Vote 20 - Grants	943,967	816,183
Less:
Lapsed appropriation	(17,251)	(16,536)
	926,716	799,647
Statutory contributions to employee benefit plans	4,627	4,259
Current year appropriations used	974,070	843,270

(c) Reconciliation of net cash provided by Government to Parliamentary appropriations used
(in thousands of dollars)

		2008	2007
Net cash provided by Government		969,803	844,170
Refunds of previous years' expenses		3,087	2,432
Cash proceeds on disposal of capital assets		-	9
		972,890	846,611
Change in net position in the Consolidated Revenue Fund
	Variation in accounts receivable and advances	312	(358)
	Variation in accounts payable and accrued liabilities	1,338	(1,273)
	Variation in deferred revenue	(719)	(1,616)
	Other adjustments	249	(94)
		1,180	(3,341)
Current year appropriations used		974,070	843,270

4. Expenses
(in thousands of dollars)

		2008	2007
Grants and awards
	Open competitions	516,541	487,917
	Strategic initiatives	210,842	195,762
	Gairdner Foundation grant (Note 7)	20,000	-
	Institute support grants	13,000	13,000
	Knowledge translation	8,224	3,864
	Canada Research Chairs	86,482	82,205
	Networks of Centres of Excellence	27,500	27,500
	Centres of Excellence in Commercialization and Research	73,512	-
Total grants and awards		956,101	810,248
Less: Refunds of previous years' grants and awards		(3,087)	(1,972)
		953,014	808,276
Operations and administration
	Salaries and employee benefits	36,551	31,683
	Professional and special services	5,300	4,845
	Travel	3,696	3,425
	Accommodation	3,399	3,314
	Amortization of tangible capital assets	1,868	1,498
	Furniture, equipment and software	1,813	1,998
	Communication	1,439	1,450
	Other	1,262	1,322
Total operations and administration		55,328	49,535
Total Expenses		1,008,342	857,811

5. Revenues
(in thousands of dollars)

The following are the revenues recognized for the year:

	2008	2007
Donations for health research	9,235	9,362
Cost sharing agreements with other Government departments	150	1,240
Gain on disposal of capital assets	-	4
Endowments for health research	-	1
Total Revenues	9,385	10,607

6. Tangible Capital Assets
(in thousands of dollars)

	Cost				Accumulated amortization
Capital asset class	Opening balance	Acquisitions	Transfers, disposals and write-offs	Closing balance	Opening balance	Amortization	Transfers, disposals and write-offs	Closing balance	2008 Net Book Value	2007 Net Book Value
Informatics hardware	1,928	142	-	2,070	1,546	169	-	1,715	355	382
Informatics software	7,780	953	-	8,733	4,531	1,659	-	6,190	2,543	3,249
Office equipment	345	-	-	345	123	35	-	158	187	222
Vehicles	32	-	-	32	4	5	-	9	23	28
Work-in-progress	23	3	-	26	-	-	-	-	26	23
Total	10,108	1,098	-	11,206	6,204	1,868	-	8,072	3,134	3,904

Amortization expense (in thousands of dollars) for the year ended March 31, 2008 is $1,868 (2007 - $1,498).

7. Gairdner Foundation Grant

On March 31, 2008, CIHR entered into a funding agreement with the Gairdner Foundation, a not-for-profit, independent organization devoted to the recognition of outstanding achievement in health research worldwide. CIHR agreed to provide the Gairdner Foundation with a grant at the requisition of the Minister of Health in the amount of $20,000,000. The purpose of the endowment is to support and enhance the Gairdner International Awards, which are among the world's most respected health prizes. The Gairdner Foundation has proposed to use the investment proceeds from the endowment to increase the value of each Gairdner International Award to $100,000 in keeping with their stature. The endowment will also be used to establish a new individual award for global health to be named the "Canada Gairdner Global Health Award". After the endowment is disbursed, the Gairdner International Awards will be renamed the "Canada Gairdner International Awards".

8. Deferred Revenue

Monies received as donations from various organizations and individuals for health research as well as interest on endowments are recorded as deferred revenue until such time as they are disbursed in accordance with agreements between the contributor and CIHR or in accordance with the terms of the endowments.

The transactions relating to these accounts are as follows:
(in thousands of dollars)

			2008	2007
Donations for health research
Balance, beginning of the year			12,726	14,344
	Add:
		Donations received	8,049	7,191
		Interest earned	465	553
	Less:
		Grants expensed	9,235	9,362
Balance, end of the year			12,005	12,726
Interest on endowments for health research
Balance, beginning of the year			4	2
	Add:
		Interest earned	3	3
	Less:
		Miscellaneous expenses	1	1
Balance, end of the year			6	4
Total deferred revenue			12,011	12,730

9. Employee Benefits

Employees of CIHR are entitled to specific benefits on or after termination or retirement, as provided for under various collective agreements or conditions of employment.

(a) Pension benefits: CIHR's employees participate in the Public Service Pension Plan, which is sponsored and administered by the Government of Canada. Pension benefits accrue up to a maximum period of 35 years at a rate of 2% per year of pensionable service, multiplied by the average of the best five consecutive years of earnings. The benefits are integrated with the Canada/Quebec Pension Plans benefits and they are indexed to inflation. Both the employees and CIHR contribute to the cost of the Plan. CIHR's responsibility with regard to the Plan is limited to its contributions. Actuarial surpluses or deficiencies are recognized in the financial statements of the Government of Canada, as the Plan's sponsor.

The 2007-08 expense represents approximately 2.1 times (2.3 in 2006-07) the contributions by employees.

CIHR's and employees' contributions to the Public Service Pension Plan for the year were as follows:
(in thousands of dollars)

	2008	2007
CIHR's contributions	3,373	3,139
Employees' contributions	1,584	1,378

(b) Severance benefits: CIHR provides severance benefits to its employees based on eligibility, years of service and final salary. These severance benefits are not pre-funded. Benefits will be paid from future appropriations. Information about the severance benefits, measured as at March 31, is as follows:
(in thousands of dollars)

	2008	2007
Accrued benefit obligation, beginning of year	5,248	4,633
Expense for the year	1,624	898
Benefits paid during the year	(299)	(283)
Accrued benefit obligation, end of year	6,573	5,248

10. Contingent Liabilities

A legal suit for employment equity was initiated by the Public Service Alliance of Canada against Her Majesty the Queen naming certain separate employer organizations of the Government of Canada, including the Canadian Institutes of Health Research (CIHR), as defendants. The amount of this claim, as it relates to CIHR, is estimated to be $747,000. In management's opinion, the outcome of this litigation is not presently determinable and no estimated liability has been accrued or expense recorded in the financial statements. CIHR may be subject to other claims in the normal course of business. In management's view, these claims do not have any material impact on the financial statements and consequently, no provision has been made for these claims.

11. Contractual Obligations

CIHR is committed to disburse grants and awards in future years subject to the appropriation of funds by Parliament. In addition, the nature of CIHR's operating activities result in some multi-year contracts whereby CIHR will be committed to make some future payments when the goods or services are rendered. Future year contractual obligations are as follows:

(in thousands of dollars)	2009	2010	2011	2012	2013 and thereafter	Total
Grants and awards	739,175	537,309	363,679	197,477	119,781	1,957,421
Operating	2,091	418	2	-	-	2,511
Total	741,266	537,727	363,681	197,477	119,781	1,959,932

12. Related Party Transactions

CIHR is related in terms of common ownership to all Government of Canada departments, agencies, and Crown Corporations. CIHR enters into transactions with these entities in the normal course of business and on normal trade terms.

(a) Services provided without charge by other Government departments

During the year, CIHR received services which were obtained without charge from other Government departments. The estimated costs of these services have been included as an expense in the department's Statement of Operations in the following amounts:
(in thousands of dollars)

	2008	2007
Accommodation provided by Public Works and Government Services Canada	3,399	3,314
Employer's contribution to the health and dental insurance plans provided by Treasury Board Secretariat	2,027	1,772
Audit services provided by the Office of the Auditor General of Canada	133	138
Total services provided without charge by other Government departments	5,559	5,224

(b) Administration of programs on behalf of other Government departments

CIHR administers funds received from other federal departments and agencies to issue grants, awards and related payments on their behalf. During the year, CIHR administered $150,000 ($1,239,838 in 2007) in funds for grants and awards. These amounts are reflected in CIHR's Statement of Operations as both revenues and expenses.

(c) Administration of CIHR funds by other Government departments

Other federal departments and agencies administer funds on behalf of CIHR to issue grants, awards and related payments. During the year, other federal departments and agencies administered $91,061,335 ($87,331,623 in 2007) in funds for grants and awards, primarily pertaining to the Canada Research Chairs program. These amounts are reflected in CIHR's Statement of Operations as expenses.

13. Financial Instruments

The fair values of financial assets and liabilities approximate the carrying amounts of these instruments due to the short period to maturity.

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Table 11: Details on Transfer Payment Programs (TPPs)

Name of Transfer Payment Program: Grants for research projects and personnel support
Start Date: October 2000			End Date: N/A
Description: CIHR administers a large suite of grant programs all of which are listed in its Grants and Awards Guide and/or made available publicly on the web http://www.cihr.gc.ca/. For each program, the website provides a description of the program, eligibility criteria, application guidelines and forms, and policies and procedures governing the use of funds.
Strategic Outcomes: 1.0 - Fund Health Research, 2.0 - Fund Health Researchers and Trainees, 3.0 - Support Activities on Knowledge Translation, Exchange and Use
Results Achieved: Please refer to section II of this DPR (Analysis by Strategic Outcome) for detailed information on the achieved results.
($ millions)	Actual Spending 2005-2006	Actual Spending 2006-2007	Planned Spending 2007-2008	Total Authorities 2007-2008	Actual Spending 2007-2008	Variance(s) [Actual / Planned]
Program Activity 1.1 - Fund Health Research
Total Grants	$ 443.9	$ 476.4	$ 468.7	$ 509.5	$ 514.4	($ 45.7)
Total Contributions	-	-	-	-	-	-
Total Other Types of TPs	-	-	-	-	-	-
Total Program Activity	$ 443.9	$ 476.4	$ 468.7	$ 509.5	$ 514.4	($ 45.7)
Program Activity 2.1 - Fund Health Researchers
Total Grants	$ 158.5	$ 168.6	$ 185.0	$ 185.3	$ 175.6	$ 9.4
Total Contributions	-	-	-	-	-	-
Total Other Types of TPs	-	-	-	-	-	-
Total Program Activity	$ 158.5	$ 168.6	$ 185.0	$ 185.3	$ 175.6	$ 9.4
Program Activity 2.2 - Fund Research Resources, Collaboration and Other Grants to Strengthen the Health Research Community
Total Grants	$ 66.6	$ 62.7	$ 67.3	$ 66.9	$ 64.2	$ 3.1
Total Contributions	-	-	-	-	-	-
Total Other Types of TPs	-	-	-	-	-	-
Total Program Activity	$ 66.6	$ 62.7	$ 67.3	$ 66.9	$64.2	$ 3.1
Program Activity 2.3 - Develop and Support Strong Health Research Community through National and International Alliances and Priority-Setting
Total Grants	$ 9.1	$ 9.0	$ 10.8	$ 10.8	$ 9.5	$ 1.3
Total Contributions	-	-	-	-	-	-
Total Other Types of TPs	-	-	-	-	-	-
Total Program Activity	$ 9.1	$ 9.0	$ 10.8	$ 10.8	$ 9.5	$ 1.3
Program Activity 2.4 - Inform Research, Clinical Practice and Public Policy on Ethical, Legal and Social Issues (ELSI) Related to Health and Health Research
Total Grants	$ 1.4	$ 1.7	$ 3.8	$ 3.8	$ 1.8	$ 2.0
Total Contributions	-	-	-	-	-	-
Total Other Types of TPs	-	-	-	-	-	-
Total Program Activity	$ 1.4	$ 1.7	$ 3.8	$ 3.8	$ 1.8	$ 2.0
Program Activity 3.1 - Support Activities on Knowledge Translation, Exchange, Use and Strategies to Strengthen the Health System
Total Grants	$ 33.3	$ 32.8	$ 37.7	$ 38.7	$ 37.4	$ 0.3
Total Contributions	-	-	-	-	-	-
Total Other Types of TPs	-	-	-	-	-	-
Total Program Activity	$ 33.3	$ 32.8	$ 37.7	$ 38.7	$ 37.4	$ 0.3
Program Activity 3.2 - Support National Efforts to Capture the Economic Value for Canada of Health Research
Total Grants	$ 24.2	$ 25.4	$ 25.6	$ 28.1	$ 23.4	$ 2.2
Total Contributions	-	-	-	-	-	-
Total Other Types of TPs	-	-	-	-	-	-
Total Program Activity	$ 24.2	$ 25.4	$ 25.6	$ 28.1	$ 23.4	$ 2.2
Comment(s) on Variance(s): The lapsed funding in the Grants and Awards was the result of difficulties experienced by universities in filling Canada Research Chairs at the rate that had been hoped for.
Activities completed in 2007-2008: Results Based Management Accountability Frameworks (RMAF) Completed: Draft CIHR/Rx&D RMAF Draft Clinical Research Initiative RMAF Update of the Common Evaluation Framework for the 13 Institutes Institute Support Grant Integrated RMAF/RBAF Evaluation Reports Completed and Approved in 2007-2008: STIHR Evaluation: The evaluation found the STIHR to be important and relevant to the CIHR mandate, the health research community, the federal government and other external stakeholders and that it provided good value added. Key stakeholders considered the STIHR to be comparable with programs like the Canada Graduate Scholarships, the Doctoral Research Awards, and CIHR Fellowship awards in terms of trainees' disciplinary background; early scholarly productivity; and perceptions of the training environment and trainee experience. Integrated Report of the Evaluation of CIHR's 13 Institutes: The issues addressed in the evaluation met the needs of CIHR and Treasury Board requirements for formative evaluations. In brief summation, the issues and the overall conclusions in each area are as follows: Relevance: To what extent is there still a need for this Institute to support the development of Canadian capacity and research excellence in this field of health research? CIHR as a whole and each of the 13 Institutes remain a relevant and needed component of support to health research in Canada. Their mandates and strategic priorities are regarded as appropriate and relevant. However, views were expressed for most Institutes that their mandates are very broad given their available resources. Delivery: What has been the influence of other factors on the overall effectiveness of Institutes? All 13 Institutes have been successful in establishing effective organizations and program delivery. The evaluation results showed that all 13 Institutes have used strategic and operational planning mechanisms effectively, and that the consultative processes used in these mechanisms have strengthened linkages and engagement of stakeholder communities. Effectiveness: How effectively has this Institute achieved its objectives, fulfilled its mandate and mission, and achieved its vision? How effectively and uniquely has this Institute contributed to the overall objective of the CIHR? Overall, the evaluations showed that the Institutes have performed well, making substantial progress in fulfilling their mandates and strategic priorities. The greatest effectiveness was noted in the areas of creating new knowledge, developing health research capacity, and developing partnerships and collaborations through a broad range of innovative initiatives. Although a priority, knowledge translation has been a significant challenge for the majority of Institutes. Institute evaluations suggested that they have struggled with a lack of clarity on the vision and definition of knowledge translation within CIHR. Alternatives: Are there alternative ways to achieve the same or better results in terms of research capacity, excellence and impacts in this research domain with greater efficiency? While the issue was explored through the evaluations, the determination was that no-viable alternative to the Institute model was presented. Networks of Centers of Excellence (NCE) (Tri-Agency - NSERC lead agency): Results of the evaluation can be found here: http://www.nce.gc.ca/pubs/reports/2007/evaluation/NCEEvaluationReport2007-eng.pdf Performance Measurement Studies: - 13 Institute Performance Reports Evaluability Assessment: - Obesity Strategic Initiative Other Substantive Studies/Reviews: Development of RRS System Blue Sky II - CIHR Impact Framework IHRT/CAHR Evaluation Framework Activities planned for in 2008-2009: A Corporate 5-Year Evaluation Plan is being finalized based upon a risk-based 5-year evaluation prioritization exercise and approved schedule. The work for 2008-2009 includes: (1) completion of the Tri-agency Canada Graduate Scholarship evaluation; (2) completion of the Doctoral Research Award Evaluation; (3) completion of STIHR case (4) initiation of an evaluation of Team-Type Programs (5) initiation of studies as part of an Operating Grant Program evaluation (6) initiation of an evaluation study of Randomized Controlled Trials program (7) participation in Tri-Council evaluations of the Indirect Costs Program and of the Tri-Council Panel and Secretariat on Research Ethics
The approved Risk-Based Annual Internal Audit Plan for 2008-2009 includes audits of (1) the Non-Financial Administration of Open Operating Grants and (2) the Financial Administration of Open Operating Grants. These audits are expected to be completed by December 31, 2008. In addition, the approved Risk Assessment and Risk-Based 5-Year Internal Audit Plan includes audits of the Non-Financial Administration of (1) the Salary Program - in 2009-2010 (2) Training Program - in 2010-2011 and (3) Research Related Activity - in 2011-2012. The timing and scope of these future audits may change as a result of the 2008-2009 audits of Open Operating Grants, the results of audits by the Office of the Auditor General and the Office of the Comptroller General, and TBS priorities.

 

Name of Transfer Payment Program: Institute Support Grants (ISG)
Start Date: October 2000			3) End Date: N/A
Description: Health Research Institutes will assess research priorities in their area, determine gaps and opportunities that present research is not addressing, and will devote resources toward answering these questions and addressing these gaps. Payment of Institute Support Grants will be integrated into CIHR's payment systems currently in place for Research Funding Programs. These Programs are paid in bi-monthly installments and are in compliance with TBS's policy on transfer payments.
Strategic Outcomes: 2.0 - Fund Health Researchers and Trainees
Results Achieved: Please refer to section II of this DPR (Analysis by Strategic Outcome) for detailed information on the achieved results.
($ millions)	Actual Spending 2005-2006	Actual Spending 2006-2007	Planned Spending 2007-2008	Total Authorities 2007-2008	Actual Spending 2007-2008	Variance(s) [Actual / Planned]
Program Activity 2.3 - Develop and Support Strong Health Research Community through National and International Alliances and Priority-Setting
Total Grants	$ 13.0	$ 13.0	$ 13.0	$ 13.0	$ 13.0	-
Total Contributions	-	-	-	-	-	-
Total Other Types of TPs	-	-	-	-	-	-
Total Program Activity	$ 13.0	$ 13.0	$ 13.0	$ 13.0	$ 13.0	-
Comment(s) on Variance(s): N/A
The approved Risk Assessment and Risk-Based 5-Year Internal Audit Plan does not include an audit of ISGs.

 

Name of Transfer Payment Program: Canada Graduate Scholarships
Start Date: Fiscal Year 2003-2004			End Date: N/A
Description: The Canada Graduate Scholarships Program administered by CIHR is intended to provide special recognition and support to students who are pursuing a Master's or Doctoral degree in a health related field in Canada. These candidates are expected to have an exceptionally high potential for future research achievement and productivity. This program awards scholarships through national competitions by the granting agencies; NSERC, SSHRC, and CIHR. These awards are intended to sustain recipients while they pursue graduate studies.
Strategic Outcomes: 2.0 - Fund Health Researchers and Trainees
Results Achieved: Please refer to section II of this DPR (Analysis by Strategic Outcome) for detailed information on the achieved results.
($ millions)	Actual Spending 2005-2006	Actual Spending 2006-2007	Planned Spending 2007-2008	Total Authorities 2007-2008	Actual Spending 2007-2008	Variance(s) [Actual / Planned]
Program Activity 2.1 - Fund Health Researchers and Trainees
Total Grants	$ 8.1	$ 10.1	$ 10.5	$ 14.4	$ 13.9	($ 3.4)
Total Contributions	-	-	-	-	-	-
Total Other Types of TPs	-	-	-	-	-	-
Total Program Activity	$ 8.1	$ 10.1	$ 10.5	$ 14.4	$ 13.9	($ 3.4)
Comment(s) on Variance(s): N/A
A "Tri-Agency" evaluation of the CGS program, led by CIHR, was initiated in Fall 2007-2008 and is expected to be completed in late 2008-2009.
The approved Risk Assessment and Risk-Based 5-Year Internal Audit Plan does not include an audit of CGS.

 

Name of Transfer Payment Program: Centres of Excellence for Commercialization and Research
Start Date: Fiscal Year 2007-2008			End Date: 2011-12
Description: The Centres of Excellence for Commercialization and Research (CECR) Program supports research and commercialization centres capable of achieving global leadership for Canada and translating knowledge into significant commercial advantage. CECR is a joint program of the Tri-council, in partnership with Industry Canada. Through this program, the Federal Government will identify the best initiatives based on international peer review and advice from a Private Sector Advisory Board, and make investments in partnership with others, such as the provinces and businesses.
Strategic Outcomes: 3.0 - Support Activities on Knowledge Translation, Exchange and Use
Results Achieved: Please refer to section II of this DPR (Analysis by Strategic Outcome) for detailed information on the achieved results.
($ millions)	Actual Spending 2005-2006	Actual Spending 2006-2007	Planned Spending 2007-2008	Total Authorities 2007-2008	Actual Spending 2007-2008	Variance(s) [Actual / Planned]
Program Activity 2.1 - Fund Health Researchers and Trainees
Total Grants	-	-	-	$ 73.5	$ 73.5	($ 73.5)
Total Contributions	-	-	-	-	-	-
Total Other Types of TPs	-	-	-	-	-	-
Total Program Activity	-	-	-	$ 73.5	$ 73.5	($ 73.5)
Comment(s) on Variance(s): N/A
A "Tri-Agency evaluation was recently completed of the Networks of Centres of Excellence which subsumes the Centres of Excellence for Commercialization and Research as part of its portfolio. The Centres of Excellence for Commercialization and Research is a new program that was launched in Summer of 2007-2008, therefore no evaluation was completed for this program in 2007-2008.
The approved Risk Assessment and Risk-Based 5-Year Internal Audit Plan does not include an audit of CECR.

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Table 12: Internal Audits and Evaluations

The following table identifies a list of planned evaluations and audits at CIHR for 2007-2008.

Planned Internal Audit or Evaluation	Estimated Start Date	Estimated Completion Date
Audit of the Electronic Information System (EIS)	April 2007	Completed: October 2007
Audit of the Acquisition Cards Program	June 2007	Completed: November 2007
Audit of Delegation of Financial Signing Authorities	September 2007	Completed: February 2008
Audit of the Report on Plans and Priorities (RPP)	September 2007	Completed: February 2008
Audit of Research Ethics	Carried forward from 2007-08 to 2008-09	March 2009
Evaluation of the Strategic Training Initiative in Health Research	In progress	Actual completion date: June 2008
Evaluation of the Canada Graduate Scholarships Program (4th-year review)	In progress	Estimated completion date: October 2008
Summative Evaluation of the Interdisciplinary Health Research Teams and Community Alliances in Health Research Programs	This project has been cancelled	This evaluation has been integrated with the evaluation of CIHR team type programs. The framework for the team type programs evaluation was completed in April 2008.
Evaluation of the Small Health Organization Partnership Program	October 2007
Evaluation Framework for the Operating Grants Program	In progress	Estimated completion date: October 2008
Evaluation Framework for the CIHR/Rx&D Program	N/A	This project has been cancelled due to a lack of financial resources.
Evaluation Framework for Obesity and Healthy Body Weights Program	In progress	Actual completion date: June 2008

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