Research is my business partner: Annual Report 2019

Research is my

business partner

Annual report 2019–20

This report should be cited as:

The Canada Foundation for Innovation, 2020. Research is my business

partner: Annual report 2019–20 / La Fondation canadienne pour

l’innovation, 2020. Mon partenaire d’aaires : la recherche – Rapport

annuel 2019-2020 Ottawa, Ontario.

1100-55 Metcalfe Street

Ottawa ON K1P 6L5

Telephone: 613.947.6496

Email: info@innovation.ca

ISBN: 978-1-926485-28-7

ISSN: 1712-0608

Research is my business partner

Businesses across Canada

innovate,grow and prosper when

they build research partnerships

inleading-edge labs

For small- and medium-sized enterprises, thecrux

ofstaying competitive is strategic change.

These trailblazers are rethinking previously accepted

ideas to unlock new opportunities, reimagining how

we do things to nd more sustainable, and more

protable, solutions or reinventing the technologies

we take for granted to make them more powerful

andopen up new markets.

And since the world is changing faster than ever,

businesses that can evolve will rise to the top, and

economies that support the research that fuels

those transformations willbe the ones to ourish.

Throughout this report, discover stories of Canadian

companies that have found the path to business

success by collaborating with world-class research labs.

Contents

3 OVERVIEW

What we do

How we do it

Our commitment to equity, diversity and inclusion

5 A YEAR TO BE GRATEFUL FOR

STATE-OF-THE-ART RESEARCH

6 RESPONDING TO COVID-19

8 INVEST

John R. Evans Leaders Fund

College-Industry Innovation Fund

Innovation Fund

Infrastructure Operating Fund

Major Science Initiatives Fund

11 EVALUATE

Analyzing corporate performance

Talking to our stakeholders

Focusing on results

Developing a common classication system for Canadian research

12 MANAGE

Financial highlights

Reviewing our investment strategy and policy

Remaining accountable

Governance

19 COMMUNICATE

23 LOOKING TOWARD THE FUTURE

What we are working on for 2020–21

25 FINANCIAL STATEMENTS

CANADA FOUNDATION FOR INNOVATION

Since its creation in 1997 the CFI has committed, with the

generous support of the Government of Canada, almost

$8.3 billion

for 11,314 projects

at 160 research institutions

in 78 municipalities across Canada.

* As of March 31, 2020

Overview

What we do

Researchers need world-class research

infrastructure to collaborate on the global stage.

The Government of Canada created the Canada

Foundation for Innovation (CFI) in 1997 to fund the

tools essential for conducting outstanding research

in the 21st century. We support the evolving needs

ofCanada’s universities, colleges, research hospitals

and non-prot research institutions across all

areas of research — from health and medicine, to

the natural sciences and engineering, to the social

sciences and humanities — by funding state-of-the-

art equipment, laboratories and facilities.

Our objectives

• Increase Canada’s capacity to carry

out important world-class scientic

research and technology development

• Support economic growth and job creation,

as well as health and environmental

quality through innovation

• Expand research and job opportunities

for the next generation of Canadian

researchers, technicians and entrepreneurs

• Promote productive networks and

collaboration among Canadian universities,

colleges, research hospitals, non-prot

research institutions and the private sector

How we do it

The CFI maximizes the funding it receives from

the Government of Canada by contributing up to

40 percent of a project’s research infrastructure

costs. Institutions — the ultimate recipients of our

funding — secure the remaining 60 percent through

partnerships with provincial governments and other

public, private and non-prot organizations.

This means the nearly $8.3 billion invested by the

Government of Canada through the CFI has been

leveraged into a total investment of $19.9 billion

in research infrastructure in Canadian institutions

since we were created.

We have a well-established, rigorous and

independent merit-review process that rewards

research excellence. We rely on experts from

around the world to assess proposals from eligible

Canadian institutions on three main criteria: the

quality of the research and need for infrastructure;

the project’s contribution to strengthening the

capacity for innovation; and the potential benets

of the research to Canada.

Our process ensures that the infrastructure projects

that best meet these criteria receive funding.

ANNUAL REPORT 2019–20

Our commitment to equity, diversity and inclusion

Our values

The CFI is committed to the principles of equity,

diversity and inclusion (EDI). In all our activities, we

recognize that a breadth of perspectives, skills and

experiences contributes to excellence in research.

Equity

We aim to ensure all CFI-eligible institutions have

the opportunity to access and benet from our

programs through our well-established, fair and

impartial practices.

Diversity

We value attributes that allow institutions and their

researchers — from any background and from

anywhere — to succeed. This includes individual

attributes such as gender, language, culture and

career stage; institutional attributes such as size,

type and location; and attributes that encompass

the full spectrum of research, from basic to applied

and across all disciplines.

Inclusion

Our corporate culture encourages collaboration,

partnership, contributions and engagement among

diverse groups of people, institutions and areas

of research to maximize the potential of Canada’s

research ecosystem.

We believe that nurturing an equitable, diverse

and inclusive culture is the responsibility of

everymember of the research ecosystem,

including funders, institutions, researchers,

experts and reviewers.

CANADA FOUNDATION FOR INNOVATION

Roseann O’Reilly Runte

President and CEO

Ingrid Pickering

Chair of the Board

A year to be grateful for

state-of-the-art research

This year began on a celebratory note as we

launched a new competition of our agship fund,

the Innovation Fund, the goal of which is to keep

Canadian research at the forefront, ready to

address the most pressing global challenges.

It ended with a stark example of why it is so

criticalto do so.

The global coronavirus pandemic of 2020 underlined

the importance of keeping laboratories equipped

and ever-ready.

That importance reached across disciplines.

Vaccine researchers in laboratories all over the

country doubled down, as did those with expertise

in the social and policy implications of the

countermeasures used to contain the spread

of the virus.

Researchers in psychology oered innovative ways

to maintain mental health during a stressful time;

leaders in education technologies extended new

options to parents and schoolboards scrambling

to continue teaching students from a distance;

material scientists and engineers retooled

laboratory equipment and helped industry to

produce much-needed medical supplies.

Trying times remind us to be grateful. That these

laboratories had been established and were ready

to perform under the most urgent circumstances is

a reection of the importance of science globally in

the 21st century. It made us glad to live in Canada, a

country that knows the importance of research.

That we live in a time where we reap the rewards

ofrapid technology development to stay

connected, working and healthy was another

silverlining.

In February and March, as the world’s laboratories

mobilized to nd solutions, the critical role of the

CFI was clearer than ever.

This work will undoubtedly continue for many years

to come, as researchers grapple with the fallout of

the pandemic and how it has changed us all.

It is not just a matter of recovering. This experience

has also opened our eyes to many challenging and

interesting new areas of inquiry. That is the beauty

and the essence of research — as we discover

more, we open the door to new concepts, new ways

to serve humankind today and in the future. At the

CFI, we understand that a research community that

reects equity, diversity and inclusion brings us

much closer to those goals.

We look forward to the important ndings and

inspiring possibilities that new research and

knowledge will provide.

ANNUAL REPORT 2019–20

July 15

A second Exceptional Opportunities Fund

competition launches to invest $2million

in research related to COVID-19 at

colleges, polytechnics and Cégeps.

June 8

The CFI launches a competition to invest up to

$25million from the Exceptional Opportunities

Fund to support COVID-19-related research

from all disciplines at Canadian universities

andresearch hospitals.

April 3

The CFI provides up to $5 million to

optimize the research services oered by

VIDO-InterVac to the national research

community working against COVID-19.

March 24

The CFI’s Board of Directors meeting shifts

from in-person to videoconference for the

rst time ever.

March 23

Prime Minister Justin Trudeau announces

more than $11 million from the Major

Science Initiatives Fund to support the

operation of VIDO–InterVac in their eort

to nd a vaccine for the novel coronavirus.

March 20

The CFI makes provisions to allow

salarysupport for research personnel

who are temporarily redeployed from

CFI-funded infrastructure to support

COVID-19 research.

March 16

The CFI’s downtown Ottawa oce closes

and CFI sta begin working remotely.

Late February

CFI’s programs sta begin to recongure

91 expert committee meetings involving

349 experts from 23 countries for the 2020

Innovation Fund competition, keeping the

400-million-dollar competition on track for

November 2020 Board decisions, while

maintaining the integrity of the review process.

January 22

The University of Saskatchewan’s

CFI-funded Vaccine and Infectious Disease

Organization-International Vaccine Centre

(VIDO-InterVac) receives approval from

the Public Health Agency of Canada

to work on COVID-19 allowing Canada to

join the global research and development

eorts coordinated by the World

HealthOrganization.

Responding to COVID-19

As the COVID-19 pandemic took hold, the CFI took action to

ensureCanadian research labs would remain at the forefront

CANADA FOUNDATION FOR INNOVATION

Rening

sparkling wines

Ontario winemakers are using innovations

from Brock University to be more competitive

Brock University’s Cool Climate Oenology and Viticulture

Institute conducts research to help winemakers in the

Niagara peninsula overcome the challenges posed by

the region’s geography and climate, including helping

Fielding Estate Winery, where Heidi Fielding is Director

of Sales and Marketing, grow its sparkling wine sales

by30percent.

ANNUAL REPORT 2019–20

projects

528

million

$97.9

million

up to

$400

projects

million

$10.2

Invest

Bringing the world’s best researchers

to Canada, and keeping them here

John R. Evans Leaders Fund

The John R. Evans Leaders Fund helps institutions

attractand retain world-leading researchers with

competitive research support packages that include key

infrastructure and a portion of operating and maintenance

costs. This year, we awarded more than $97.9 million to

support 528projects.

Supporting business innovation

College-Industry

Innovation Fund

The College-Industry Innovation Fund (CIIF) helps

colleges foster strategic partnerships with the private

sector. Stream 1 of this fund supports infrastructure

requests aimed at enhancing existing applied research

and technology development capacity in colleges.

Stream 2 supports research infrastructure associated

with an application for a ve-year grant from the College

and Community Innovation – Innovation Enhancements

program, which is managed by the Natural Sciences and

Engineering Research Council of Canada. This year, we

awarded more than $10.2 million to support 14projects

through both CIIF streams.

Big ideas, big impact

Innovation Fund

We launched our latest Innovation Fund competition

inApril 2019. For this competition, the CFI will invest

up to $400million in capital funding and $120 million in

associated operating costs through the Infrastructure

Operating Fund. In January 2020, we received

307proposals requesting $1.1 billion for this competition.

Bythe end of the scal year in March, we had to recongure

our merit-review process to ensure we could maintain

the integrity and high standard of excellence that form

the foundation of this process while CFI sta and experts

worked remotely because of the pandemic.

CANADA FOUNDATION FOR INNOVATION

million

$32.4

Keeping things running

Infrastructure

Operating Fund

We awarded over $32.4 million through the

Infrastructure Operating Fund, which provides

funding equivalent to 30 percent of CFI capital

awards to assist institutions in the operation and

maintenance of CFI-funded infrastructure.

Supporting major research facilities

Major Science Initiatives Fund

Through our Major Science Initiatives Fund, we help

make sure that 17 national research facilities have

the support they need to operate optimally.

Whether physical spaces or virtual networks, these

facilities serve a critical mass of researchers tackling

important issues facing society, from climate change

to cancer. They also act as hubs to bring together

some of our country’s best researchers and to foster

international scientic collaborations.

As the challenges facing scientists become more

complex, this major science infrastructure becomes

critical for exploring the frontiers of research.

This year, following a formal review, we extended

funding for 15 of these facilities to March 31, 2023.

The CFI will also fully support the operations

of the Advanced Research Computing (ARC)

platform, through Compute Canada, until the end

of March 2022. ARC is one of the key elements

of the Government of Canada’s Digital Research

Infrastructure (DRI) strategy. Starting April 1, 2022,

funding for the operations and maintenance of

the ARC platform will transition to that strategy.

The DRI strategy represents a signicant

evolution in strengthening Canada’s capacity for

advanced research computing and research data

management. In addition to providing uninterrupted

access to ARC’s computing resources for

researchers and their students, the CFI funding

until 2022 will also ensure that Compute Canada

continues to participate in strategic planning during

the transition period so the national DRI system is

well-positioned to succeed.

ANNUAL REPORT 2019–20

Reinventing

kiteboard

equipment

A British Columbia kiteboard manufacturing

company has set a newbar for kiteboard

technology withan innovative product,

nowlicensedinternationally

Victoria-based kiteboarding company Ocean Rodeo, where

Richard Myerscough is CEO and Founder, increased its

sales by working with experts at Camosun College to create

strongerplastic control bars that could better withstand the

force of wind andthe torque of performing tricks.

CANADA FOUNDATION FOR INNOVATION

Evaluate

Analyzing corporate

performance

We are committed to remaining publicly accountable

and one way we did that in 2019–20 was by

reviewing and updating our 2015 Performance

evaluation, risk and audit framework. We revised it to

better align with our 2019 Contribution Agreement

with the Government of Canada. It now includes

new indicators of success, such as tracking the

participation of underrepresented groups including

women, indigenous people, visible minorities and

people with disabilities inourfunding programs.

Using this framework, we draft annual reports on

the CFI’s performance, which are reviewed by CFI

management and its Board of Directors.

Early in 2019–20, Innovation, Science and

Economic Development Canada (ISED) began an

evaluation of the CFI to assess the eciency and

eectiveness of our operations over the past ve

years. This evaluation will draw on, among other

things, data collected through the framework.

Talking to our

stakeholders

In the spring of 2019, we surveyed a number of

CFI stakeholders: administrators and researchers

at institutions that are eligible for CFI funding,

representatives from federal and provincial

governments, and other funders and partners in the

research community. This third biennial stakeholder

survey included questions about the eectiveness

and eciency of our activities and elicited views

on the progress we have made in meeting our

mandate. Among other things, we found that, in

keeping with previous years:

• 93 percent of respondents believe the CFI is

valuable to science, technology and innovation

• 87 percent of respondents are

satised or very satised with how

the CFI delivers its programs

Focusing on results

Over the past four years, we have been producing

a series of reports to demonstrate how the CFI

is meeting its objectives. Each “Focusing on

results” report looks at one or more outcomes of

CFI investments and relies on data from various

sources, including the project progress reports we

receive from the institutions we fund, interviews,

focus groups, surveys and datafrom external

sources, such as bibliometrics.

In a study done this year, we examined how CFI

investments have helped advance knowledge. We

found that CFI-funded research infrastructure enables

researchers to advance knowledge in all areas of

research, and that studies acknowledging the CFI

arecited more frequently than the global average.

Developing a common

classication system

for Canadian research

The Canadian Research and Development

Classication provides Canadian researchers,

research institutions and funding organizations

a new way to categorize their work. The CFI has

collaborated with the Canadian Institutes of

Health Research (CIHR), the Natural Sciences and

Engineering Research Council of Canada (NSERC),

the Social Sciences and Humanities Research

Council of Canada (SSHRC) and Statistics Canada

on the initiative.

It provides a common approach to classifying

research across institutions and governments.

Having one standard to classify research will make

it easier to assess Canada’s overall contribution

to any one eld or type of research, or to any

particular socioeconomic challenge. The new

classication system was completed at the end

of scal year 2019–20. The CFI will be the rst to

implement it in its awards management system in

summer 2020.

ANNUAL REPORT 2019–20

$100

$200

$300

$400

$500

$600

20202018201620142012201020082006200420022000

0.0%

2.5%

5.0%

3.9%

AVERAGE 3.3%

Annual disbursements to institutions and operating expenses

as a percentage ofdisbursements

Manage

Financial highlights

(For the year ending March 31, 2020)

Since the CFI began:

$8.8

billion

Total amount committed in grants to the CFI by

the Government of Canada, of which $6.1 billion

has been received. The balance will be received

infuture years, based on annual cash requirements.

$8.3

billion

Awards approved

$19.9

billion

Investments of CFI contributions (typically

40percent of project cost) plus those from

institutions and their partners (typically 60 percent)

This scal year:

$359.6

million

Total disbursements to eligible institutions

$391.3

million

Allocations received from the

GovernmentofCanada

$380

million

Awards approved

$13.9

million

Operating expenses

CANADA FOUNDATION FOR INNOVATION

49.1%

CFI

49.1%

CFI

12.4%

Corporations/ﬁrms

6.3%

Federal government

(departments or agencies)

50.9%

Partners

0.2%

Voluntary organizations

6.1%

Institutions, trust funds

or foundations

6.4%

Other

0.7%

Other governmental sources

(municipal or foreign)

18.8%

Provincial governments

(departments or agencies)

41.7%

CFI

41.7%

CFI

12.1%

Corporations/ﬁrms

2.6%

Federal government

(departments or agencies)

58.3%

Partners

0.3%

Voluntary organizations

11.2%

Institutions, trust funds

or foundations

4.3%

Other

0.2%

Other governmental sources

(municipal or foreign)

27.6%

Provincial governments

(departments or agencies)

CFI contribution and other funding sources since our inception: Total $19.9 billion

CFI contribution and other funding sources for scal year 2019–20: Total $774.5 million

ANNUAL REPORT 2019–20

Reviewing our

investment strategy

and policy

Our Board of Directors’ Investment Committee, which

oversees the management of the CFI’s investment

portfolio, reviewed our investment strategy and policy

in the fall of 2019. Our portfolio of investments is

decreasing and will continue to do so in the coming

months as funds transferred to the CFI from the

Government of Canada in the early years are now

almost entirely depleted. Since 2008, the CFI has

been receiving funds from the federal government

sucient to cover projected award disbursements

to institutions in a given year. As a result, the CFI

concentrates on more liquid investments and

maintains an appropriate liquidity policy.

Remaining accountable

We regularly visit recipient institutions to discuss their

policies, practices, processes and controls for grant

management over the lifecycle of CFI awards, and

assess how well they are managing their CFI-funded

projects. We use a risk-based approach to select

institutions for these monitoring visits. This year, we

conducted three visits and shared good practices

institutions use for managing CFI funds. We also

conduct contribution audits and other cost reviews

of institutions to ensure they are using the funding

they receive for a given project in accordance with

the terms and conditions of the award agreement,

and with applicable policies and guidelines. We

performed contribution audits or other cost reviews

on six projects in 2019–20. All projects with a CFI

contribution exceeding $10million are automatically

subject to an audit, and the risks associated to a

project determine the scope, nature and extent of the

audit activities. Institutions submit nancial reports for

each of their CFI-funded projects at specic intervals,

ranging from quarterly reporting to biennial reporting.

We determine the frequency by the complexity and

risk of each project. This year we received more than

950nancial reports from recipient institutions. These

reports provide information on individual project

costs, funding and timelines for the acquisition of the

infrastructure. We reviewed each of these nancial

reports to identify and address any issues.

Ranges of remuneration

CFI management (officers)

Roseann O’Reilly Runte

President and CEO

$221,400 to $310,100

Isabelle Henrie

Vice-President, Finance and Corporate Services

$146,800 to $203,100

Pierre Normand

Vice-President, External Relations

andCommunications

$146,800 to $203,100

Claire Samson (eective March 2020)

Vice-President, Programs and Planning

$146,800 to $203,100

Employees

Director, Programs

$121,600 to $162,200

Director, Communications

Director, Corporate Services

Director, Finance

Director, Performance, Analytics andEvaluation

$105,900 to $141,300

Manager, Information Management/

Information Technology

Manager, John R. Evans Leaders Fund

Senior Advisor, Policy and Planning

Senior Programs Ocers

Senior Project Manager

$96,300 to $128,100

Manager, Administration

Manager, Creative Services

Manager, Human Resources

Senior Financial Monitoring Ocer

$86,500 to $115,000

Analyst, Finance

Financial Reporting Analyst

Senior Business Intelligence Developer

Senior Evaluation Analysts, Performance,

Analytics and Evaluation

$76,700 to $102,300

CANADA FOUNDATION FOR INNOVATION

Governance

Board of Directors

The CFI Board of Directors is composed of a

maximumof 13 individuals from a variety of

backgrounds, each Director oering a unique

perspective and understanding of the research

community and bringing expertise from one or

more of the private, institutional, academic and

research sectors.

The Government of Canada appoints six Directors

(known as Governor-in-Council appointments),

including the Chair, while CFI Members appoint the

remaining Directors. Directors are nominated and

appointed for three-year terms.

Ingrid Pickering*, Chair

Audit and Finance Committee, Governance and

Nominating Committee, Investment Committee

Margaret Bloodworth, Vice-Chair

Chair, Governance and Nominating Committee

Catherine Boivie*,

Audit and Finance Committee,

Investment Committee

Micheline Bouchard,

Chair, Investment Committee,

Audit and Finance Committee

Lynda Brown-Ganzert*

Governance and Nominating Committee

John Kelly*

Audit and Finance Committee,

InvestmentCommittee

Ronald Layden*

Governance and Nominating Committee

Leslie MacLaren

Audit and Finance Committee,

Investment Committee

Cecilia Moloney

Governance and Nominating Committee

Christopher Mushquash

(appointed July 2019)

Marc Ouellette

Governance and Nominating Committee

Ian Seymour

Chair, Audit and Finance Committee,

Investment Committee

Mamdouh Shoukri*

Governance and Nominating Committee

* Governor-in-Council appointment

ANNUAL REPORT 2019–20

Members

The Board of Directors reports to a higher

governing body made up of our Members, who

represent the Canadian public. Members nominate

and appoint their fellow Members for ve-year

terms. They meet in June each year and are

responsible for appointing seven of the Board

Directors, appointing external auditors, reviewing

audited nancial statements and approving the

annual report.

Louise Proulx

Co-Chair

Emőke Szathmáry

Co-Chair

Lorne Babiuk

Harold Cook

Members Governance

and Nominating Committee

Elizabeth Douville

Joanne Gassman

Jack Gauldie

Chair, Members Governance

and Nominating Committee

Linda Humphreys

Marilyn Luscombe

Members Governance

and Nominating Committee

Ronald Morrison

Pierre Richard

Vianne Timmons

Members Governance

and Nominating Committee

Luc Vinet

Remuneration

Directors opting to receive remuneration from

the CFI are entitled to an annual retainer of $5,000.

Committee Chairs receive $7,500, and the Board

Chair receives $10,000. Directors are also entitled

toreceive a per diem fee of $750 for attending

Board or committee meetings and a $500 fee for

attending acommittee meeting associated with

a Board meeting. Members are not entitled to any

remuneration. Members and Directors may, however,

be reimbursed for any reasonable out-of-pocket

expenses incurred while performing their duties or

attending CFI meetings. In 2019–20, the remuneration

of Board Directors ranged from $0 to $17,500.

CANADA FOUNDATION FOR INNOVATION

Repairing

the roads

There’s booming demand for a Manitoba

company’s product that transforms unpaved

roads into smooth, durable surfaces

Winnipeg’s Cypher Environmental , where Teaghan Wellman

is Vice President of Research and Development, has a global market

for itscatalyst that, when mixed with clay, creates a road surface

that is resistant to ruts and potholes. To sell the product in Canada,

the company partnered with Brandon University to prove it can

withstand Manitoba winters.

ANNUAL REPORT 2019–20

Repurposing

the MRI

A New Brunswick company is making its mark

around the world by commercializing a new

technology that uses Magnetic Resonance

Imaging (MRI), typically a healthcare technology,

to extract oil and gas more eciently

Green Imaging Technologies Inc. in Fredericton, which was

co-founded by Jill Green, uses MRI software to analyse the

behaviour of oil and gas inside rocks. The technique, developed

in partnership with the University of New Brunswick and sold

around the world, makes it possible to retrieve more oil and

gas from every well, an eciency that translates to as much

as$100,000 per day for one well for decades.

CANADA FOUNDATION FOR INNOVATION

Funding announcements

OnFebruary10,2020, at the Cégep de Trois-Rivières,

the Government ofCanada announced $7 million for

seven projects at six colleges through the College-

Industry Innovation Fund. Jean-Philippe Jacques (with

back to photo), director of the Cégep’s Innobre, Centre

d’innovation des produits cellulosiques, displays

samples of products made out of recycled pulp and

paper. Looking on are (from left to right) Parliamentary

Secretary to Minister of Innovation, Science and

Industry (Science), William Amos; Pierre Normand,

Vice-President, External Relations and Communications

at the CFI; and Louis Gendron (face hidden), President

ofCégep de Trois-Rivières.

Other funding announcements held this year:

• $2 million through the John R. Evans Leaders

Fund to support three Canada Excellence

Research Chairs, announced April 17

• $160 million for the Major Science Initiatives

Fund, including $40 million for seven nationally

signicant facilities, held April 29 at the University

of Saskatchewan’s Canadian Light Source

• $12 million awarded to 17 research projects

at colleges and polytechnics through

the College-Industry Innovation Fund, held

June13 at Georgian College in Barrie, Ont.

• More than $4 million through the

JohnR. Evans Leaders Fund to support

30Canada Research Chairs, announced

June 14 at the University of Victoria

• $61 million to support 261 projects at 40

universities through the John R. Evans Leaders

Fund, held August 12, at the University of Alberta

* Projects announced this scal year may have been approved

in a previous scal year so amounts may not match those

listed elsewhere in this report.

New year, new blog

In January, our President and CEO, Roseann

O’Reilly Runte launched a new blog, “innovision:

Reections on research,” where she provides

thoughtful comments on research, innovation

and research policy and funding in Canada. Early

posts touched on developing regional strengths

through research, unconventional careers in

science and working during a pandemic.

Research is mybusiness partner

At the beginning of 2020, we launched a

promotional campaign — Research is my business

partner — to highlight how small- and medium-

size companies across Canada benet from

partnerships in CFI-funded research labs. You

can nd these stories throughout this report.

We promoted these proles of successful

collaborations between the private sector

and publicly funded research online, in select

publications and around Ottawa (above).

Communicate

ANNUAL REPORT 2019–20

Canada booth at the annual meeting

of the American Association for

the Advancement of Science

In February, we participated in the Canada booth at the

annual meeting of the American Association for the

Advancement of Science (AAAS) in Seattle, Washington.

Led by the Oce of the Chief Science Advisor, MonaNemer

(centre, in green), and supported by a number of

organizations, the Canadian presence at this international

conference aimed to highlight the benets of studying and

conducting research in Canada for prospective students

andresearchers from abroad.

Photo: Cara Marshall

Annual public meeting

Roseann O’Reilly Runte, CFI President and

CEO(far left) moderates a discussion between

EdMcCauley, President and Vice-Chancellor

at the University of Calgary, and Marie-Josée

Hébert, Vice-Rector of Research, Discovery,

Creation and Innovation at the Université de

Montréal, about the innovative ways their

respective institutions are working to embrace

collaboration across disciplines and engaging

with the community. The keynote panel capped

o our annual public meeting on December 3.

Science Machines

Science Machines is a CFI-led outreach program that aims to provide young women opportunities to see rst hand the

amazing tools scientists use every day. Tasheena (holding clipboard), Elan, Alexis and Aurora, members of the University

of Regina’s Educating Youth in Engineering and Science (EYES) All Girls After School Club, and Chris Somers, biology

professor at the University of Regina, look on as undergraduate researcher Linnea McClellan asks a suckersh to smile for

the camera. At this Science Machines event on March 7 the girls used sh-tracking equipment to catch and tag sh through

the ice of Saskatchewan’s Bualo Pound Lake.

Photo: Natalie Selinger

CANADA FOUNDATION FOR INNOVATION

Navigator highlights this year

695

facilities across Canada

105

institutions

sectors of application

1,980

average monthly webvisits

Making connections that matter

This year, the Research Facilities Navigator —

theCFI’s online directory of leading-edge, publicly

funded research facilities — helped create over

239connections between labs and potential partners

from industry, academia andgovernment.

Navigator facilities supporting

Canada’s contribution to

COVID-19 included:

• VIDO–InterVac (research team above) is one of the

largest and most advanced research facilities in

the world working on animal and human infectious

diseases. It is also part of the worldwide research

eort to create a vaccine for COVID-19.

• The Walker Advanced Manufacturing Innovation

Centre produced 2,000 face shields using

laser-cutting technology and computer

design tools in their lab at Niagara College.

• Researchers at SNOLAB in Sudbury, Ont.,

used their expertise in managing gas ow and

gas handling to build a ventilator prototype.

Photo: VIDO-InterVac, University of Saskatchewan

#IAmInnovation Twitter contest

To highlight the work of a new generation

of researchers, we launched our third

#IAmInnovation Twitter contest in December

and announced the winners in February. We

asked contestants to submit videos or photos

that demonstrate their work in CFI-funded

labs andfacilities. The three winnerswere:

• PhD candidate Nicole Lerminiaux of the

Department of Biology at the University

of Regina, who is discovering how

our natural environment inuences

antibiotic resistance in bacteria.

• PhD student Alex Szojka of

the Department of Surgery

at the University of Alberta in

Edmonton, who is developing

lab-grown knee meniscus

replacements for people with

non-healing injuries to prevent

development of osteoarthritis.

• PhD student Anna Cooper

Reed of the Institute of Health

Policy, Management and

Evaluation at the University

of Toronto, who is exploring

healthcare services for

Canada’s aging population.

ANNUAL REPORT 2019–20

Revolutionizing

construction

A Quebec company has created a

construction product that lets builders

reachnew heights and gives the forestry

industry a new way to make money and

increase employment

Two-hundred and fty of Chantiers Chibougamau’s

employees — a quarter of its workforce — have jobs

directly linked to a new line of engineered wood products for

construction which are now sold internationally. The forestry

company, where Frédéric Verreault is Executive Director,

Corporate Development, partnered with FPInnovations to

develop the products, which also opened up new building

design and construction possibilities.

CANADA FOUNDATION FOR INNOVATION

Looking toward the future

What we are working

on for 2020–21:

• Making funding decisions for the

2020 Innovation Fund competition,

with a budget of $400 million and an

additional $120 million in support from

the Infrastructure Operating Fund

• Finalizing the consultation and launching

the new Northern Research Infrastructure

Fund, which will support research projects

conducted by Northern institutions

on issues relevant to Northerners

• Using the lessons learned during the

COVID-19 pandemic to explore an online

review process for future competitions

• Building on our commitment to support

equity, diversity and inclusion in

Canada’s research community with

deliberate and meaningful actions

• Evaluating how the College-Industry

Innovation Fund meets the needs

of colleges and their partners and

identifying possible renements to

the design or delivery of the fund

• Planning the International Conference on

Research Infrastructures, which the CFI will

host in Ottawa in June 2021, to bring together

stakeholders including policy experts,

facility managers and leading researchers to

discuss challenges and emerging trends for

research infrastructures around the world

• Continuing to work with the Fonds de

recherche du Québec and the Ministère de

l’Économie et de l’Innovation to understand

the social, cultural and economic impact

of research and research infrastructure

funding on regions in Quebec

• Growing the number of users of the

Navigator and promoting it as a key

resource in driving Canadian research

partnerships and innovation

• Continuing to show the return on CFI

investments by sharing compelling

stories— from increasing the capacity

for bright minds to conduct research to

providing spaces where the next generation

of researchers can grow their careers

Revolutionizing

construction

A Quebec company has created a

construction product that lets builders

reachnew heights and gives the forestry

industry a new way to make money and

increase employment

Two-hundred and fty of Chantiers Chibougamau’s

employees — a quarter of its workforce — have jobs

directly linked to a new line of engineered wood products for

construction which are now sold internationally. The forestry

company, where Frédéric Verreault is Executive Director,

Corporate Development, partnered with FPInnovations to

develop the products, which also opened up new building

design and construction possibilities.

ANNUAL REPORT 2019–20

Financial statements

Independent auditor’s report

To the Members of the

Canada Foundation for Innovation

Opinion

We have audited the nancial statements of the Canada Foundation for Innovation [the

“Foundation”], which comprise the statement of nancial position as at March 31, 2020, and

the statement of operations and statement of cash ows for the year then ended, and notes

to the nancial statements, including a summary of signicant accounting policies.

In our opinion, the accompanying nancial statements present fairly, in all material respects,

the nancial position of the Foundation as at March 31, 2020 and its results of operations

and its cash ows for the year then ended in accordance with Canadian public sector

accounting standards for government not-for-prot organizations.

Basis for opinion

We conducted our audit in accordance with Canadian generally accepted auditing

standards. Our responsibilities under those standards are further described in the Auditor’s

responsibilities for the audit of the nancial statements section of our report. We are

independent of the Foundation in accordance with the ethical requirements that are relevant

to our audit of the nancial statements in Canada, and we have fullled our other ethical

responsibilities in accordance with these requirements. We believe that the audit evidence

we have obtained is sucient and appropriate to provide a basis for our opinion.

Responsibilities of management and those charged

with governance for the nancial statements

Management is responsible for the preparation and fair presentation of the nancial

statements in accordance with Canadian public sector accounting standards for government

not-for-prot organizations, and for such internal control as management determines is

necessary to enable the preparation of nancial statements that are free from material

misstatement, whether due to fraud or error.

In preparing the nancial statements, management is responsible for assessing the

Foundation’s ability to continue as a going concern, disclosing, as applicable, matters related

to going concern and using the going concern basis of accounting unless management

either intends to liquidate the Foundation or to cease operations, or has no realistic

alternative but to do so.

Those charged with governance are responsible for overseeing the Foundation’s nancial

reporting process.

Auditor’s responsibilities for the audit of the nancial statements

Our objectives are to obtain reasonable assurance about whether the nancial statements

as a whole are free from material misstatement, whether due to fraud or error, and to issue an

auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance,

but is not a guarantee that an audit conducted in accordance with Canadian generally

CANADA FOUNDATION FOR INNOVATION

accepted auditing standards will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in

the aggregate, they could reasonably be expected to inuence the economic decisions of

users taken on the basis of these nancial statements.

As part of an audit in accordance with Canadian generally accepted auditing standards, we

exercise professional judgment and maintain professional skepticism throughout the audit.

We also:

• Identify and assess the risks of material misstatement of the nancial statements,

whether due to fraud or error, design and perform audit procedures responsive to

those risks, and obtain audit evidence that is sucient and appropriate to provide

a basis for our opinion. The risk of not detecting a material misstatement resulting

from fraud is higher than for one resulting from error, as fraud may involve collusion,

forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design

audit procedures that are appropriate in the circumstances, but not for the purpose of

expressing an opinion on the eectiveness of the Foundation’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of

accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management’s use of the going concern

basis of accounting and, based on the audit evidence obtained, whether a material

uncertainty exists related to events or conditions that may cast signicant doubt on

the Foundation’s ability to continue as a going concern. If we conclude that a material

uncertainty exists, we are required to draw attention in our auditor’s report to the

related disclosures in the nancial statements or, if such disclosures are inadequate,

to modify our opinion. Our conclusions are based on the audit evidence obtained up

to the date of our auditor’s report. However, future events or conditions may cause

the Foundation to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the nancial statements,

including the disclosures, and whether the nancial statements represent the

underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the

planned scope and timing of the audit and signicant audit ndings, including any signicant

deciencies in internal control that we identify during our audit.

Ottawa, Canada Chartered Professional Accountants

June 23, 2020 Licensed Public Accountant

ANNUAL REPORT 2019–20

Statement of nancial position

As at March 31

2020 2019

$ $

ASSETS

Cash 48,523,090 41,330,110

Interest and other receivables 1,546,530 1,364,230

Investments (note 4) 202,018,544 183,330,635

Prepaid expenses 368,664 188,040

Capital assets, net (note 5) 3,068,020 3,996,368

255,524,848 230,209,383

LIABILITIES AND NET ASSETS

Liabilities

Accounts payable and accrued liabilities 1,028,393 505,569

Deferred lease inducement (note 6) 625,781 695,962

International Conference on Research

Infrastructures project deposits

553,279 94,826

2,207,453 1,296,357

Deferred contributions (note 7)

Expenses of future years 250,249,375 224,916,658

Capital assets 3,068,020 3,996,368

Total liabilities 255,524,848 230,209,383

Commitments (note 8)

Net assets (note 9) — —

255,524,848 230,209,383

See accompanying notes

ON BEHALF OF THE BOARD

Ingrid Pickering Ian Seymour

Director Director

CANADA FOUNDATION FOR INNOVATION

Statement of operations

Year ended March 31

2020 2019

$ $

REVENUE (note 7)

Recognition of deferred contributions related

toamounts granted to eligible recipients

359,593,581 386,098,462

Recognition of deferred contributions related

tocurrent-year operations

12,842,624 13,191,013

Amortization of deferred contributions related

tocapital assets

1,078,201 1,245,665

373,514,406 400,535,140

EXPENSES (note 12)

Grants to eligible recipients 359,593,581 386,098,462

General and administration 12,842,624 13,191,013

Amortization of capital assets 1,078,201 1,245,665

373,514,406 400,535,140

Excess of revenue over expenses for the year — —

See accompanying notes

ANNUAL REPORT 2019–20

Statement of cash ows

Year ended March 31

2020 2019

$ $

OPERATING ACTIVITIES

Excess of revenue over expenses for the year — —

Items not involving cash

Amortization of capital assets 1,078,201 1,245,665

Amortization of deferred contributions

relatedtocapital assets

(1,078,201) (1,245,665)

Loss on equipment disposals and write-os — 6,244

Decrease of deferred contributions related

toequipment disposal

— (6,244)

Net decrease in amortization of discount/

premium on investments

(251,429) (5,283,882)

Net decrease in deferred contributions related to

expenses of future years

(365,967,283) (396,260,456)

(366,218,712) (401,544,338)

Net change in non-cash working capital balances

related to operations (note 11)

548,172 1,221,912

Cash used in operating activities (365,670,540) (400,322,426)

Capital

Purchase of capital assets (149,853) (3,050,525)

Increase in deferred contributions related

tocapital assets

149,853 3,050,525

Cash used in capital activities — —

Cash used in operating and capital activities (365,670,540) (400,322,426)

INVESTING ACTIVITIES

Purchase of investments (782,633,485) (452,104,887)

Proceeds from disposal of investments 764,197,005 543,209,490

Cash provided by investing activities (18,436,480) 91,104,603

FINANCING ACTIVITIES

Grants received (note 7) 391,300,000 330,700,000

Cash provided by nancing activities 391,300,000 330,700,000

Net increase in cash during the year 7,192,980 21,482,177

Cash, beginning of year 41,330,110 19,847,933

Cash, end of year 48,523,090 41,330,110

See accompanying notes

CANADA FOUNDATION FOR INNOVATION

Notes to nancial statements

1. Description of business

The Canada Foundation for Innovation [the “CFI”] was incorporated on April 25, 1997, under

Part I of the Budget Implementation Act, 1997 [the “Act”] for the purpose of making research

infrastructure grants to Canadian universities, colleges, hospitals and non-prot research

institutions to increase the capability for conducting high-quality research.

Grants received from the Government of Canada and related investment income are

administered and invested in accordance with the requirements of the Act and the terms

and conditions of the Funding and the Contribution Agreements between the CFI and the

Government of Canada.

The CFI is a non-taxable entity under paragraph 149(1) I) of the Income Tax Act(Canada).

2. Summary of signicant accounting policies

The nancial statements have been prepared by management in accordance with Canadian

public sector accounting standards for government not-for-prot organizations and include

the following signicant accounting policies:

REVENUE RECOGNITION

The CFI follows the deferral method of accounting for contributions that include grants from

the Government of Canada and potential donations from other sources.

Externally restricted contributions and related investment income are deferred and

recognized as revenue in the year in which the underlying expenditures are incurred. A

receivable is recognized if the amount to be received can be reasonably estimated and

collection is reasonably assured.

Externally restricted contributions applied toward the purchase of capital assets are

deferred and amortized to revenue on a straight-line basis, at a rate corresponding with the

amortization rate for the related capital assets.

GRANTS TO ELIGIBLE RECIPIENTS

Grants to eligible recipients are recognized as expenses as the disbursements of funds are

authorized by management and all eligibility criteria are met.

FINANCIAL INSTRUMENTS

The CFI records interest and other receivables, investments and accounts payable and

accrued liabilities at amortized cost using the eective interest method of amortization.

Cash is measured at fair value.

Purchases of investments are recorded on the settlement date.

Financial instruments recorded at fair value are grouped into Levels 1 to 3 based on the

degree to which fair value is observable:

• Level 1—fair value measurements are those derived from quoted prices [unadjusted]

in active markets for identical assets or liabilities;

• Level 2—fair value measurements are those derived from inputs other than quoted

prices included within Level 1 that are observable for the asset or liability, either

directly [i.e., as prices] or indirectly [i.e., derived from prices]; and

• Level 3—fair value measurements are those derived from valuation techniques that

include inputs for the asset or liability that are not based on observable market data

[unobservable inputs].

The fair value hierarchy requires the use of observable market inputs whenever such inputs

exist. A nancial instrument is classied to the lowest level of hierarchy for which a signicant

input has been considered in measuring fair value.

The nancial instrument recorded on the statement of nancial position at fair value is

composed of cash and is listed as Level 1.

ANNUAL REPORT 2019–20

CAPITAL ASSETS

Purchased capital assets are recorded at cost while contributed capital assets, if any, are

recorded at fair value at the date of contribution. Repairs and maintenance costs are charged

to expenses. When a capital asset no longer contributes to the CFI’s ability to provide

services, its carrying amount is written down to its residual value.

Capital assets are amortized on a straight-line basis using the following annual rates

andterms:

Leasehold improvements Term of the lease

Furniture and other equipment 5 years

Computer and software 3-5 years

Awards management system Remaining months to March 2021

Development costs for the CFI awards management system are capitalized and amortized

when the new functionalities become operational. Development costs are composed mainly

of professional services.

USE OF ESTIMATES

The preparation of these nancial statements requires the CFI’s management to make

estimates and assumptions that aect the reported amounts of assets and liabilities and

disclosure of contingent assets and liabilities as at the date of the nancial statements

and the reported amounts of revenue and expenses during the reporting period. Actual

results could dier from these estimates. These estimates are reviewed periodically and,

as adjustments become necessary, they are reported in the periods in which they become

known. The most signicant estimates used in preparing these nancial statements include

assumptions used in determining the collectability of accounts receivable, the estimated

useful lives of capital assets and the amount of accrued liabilities.

3. Capital management

In managing capital, the CFI focuses on liquid resources available for operations and to be

disbursed to eligible recipients. The CFI’s objective is to have sucient liquid resources

to continue operating in accordance with the Funding and the Contribution Agreements

between the CFI and the Government of Canada, despite adverse events with nancial

consequences, and to provide it with the exibility to take advantage of opportunities that

will advance its purposes. The need for sucient liquid resources is considered in the

preparation of an annual corporate plan, including long-term cash ow projections and

budget. Disbursements to eligible recipients and actual operating results are monitored and

compared to the cash ow projections to ensure availability of sucient liquid resources. As

at March 31, 2020, the CFI has met its objective of having sucient liquid resources to meet

its current obligations.

CANADA FOUNDATION FOR INNOVATION

4. Investments

Investments comprise the following nancial instruments:

2020 2019

Fair value

Carrying

value

Fair value

Carrying

value

Money market funds 52,352,006 52,334,165 — —

Bonds — — 33,606,490 33,612,331

High-interest savings accounts 149,684,379 149,684,379 149,718,304 149,718,304

202,036,385 202,018,544 183,324,794 183,330,635

MARKET RISK

Interest rate risk

Interest rate risk arises when the value of an investment uctuates due to changes in market

interest rates.

The CFI invests in money market funds and high-interest savings accounts and, as such, the

interest rate does not present a signicant nancial risk for the CFI.

Price risk

Price risk is the risk that the fair value of a nancial instrument will uctuate because of

changes in market prices [other than those arising from interest rate risk], whether those

changes are caused by factors specic to an individual nancial instrument or its issuer, or

factors aecting all similar securities traded in the market.

As at March 31, 2020, a 1% increase in market price would result in an increase of the fair

value for investments of approximately $2.0 million [2019 – $1.8 million].

The CFI’s grant commitments do not exceed the total of its investments, related investment

income and grants committed from the government that will be received in future years.

The timing of investment maturities is matched to projected cash outows. The degree of

volatility is mitigated by the CFI’s policy that it will not invest in shares, warrants or other

equities, convertible debt securities, derivatives, swaps, options or futures. As such,

management believes that interest rate and price risks are appropriately managed.

The high-interest savings accounts are tiered-rate interest accounts that combine high

interest, liquidity and security of a simple deposit account, established for the purpose

ofinvestment. The interest rates for these accounts range from 1.45% to 2.35%

[2019 – 1.82% to 2.51%].

Currency risk

Currency risk is the risk that the fair value of a nancial instrument will uctuate because of

changes in foreign exchange rates. The CFI is not exposed to currency uctuations.

LIQUIDITY RISK

Liquidity risk is the risk of not being able to meet cash requirements in a timely and cost-

eective manner.

The CFI matches the timing of investment maturities to projected cash outows.

Furthermore, the entire portfolio is made up of cash and money market instruments. As such,

liquidity does not present a signicant nancial risk to the CFI.

The maturities of money market funds range between April 2020 and May 2020.

ANNUAL REPORT 2019–20

CREDIT RISK

Credit risk arises from the potential that the issuer of an investment will fail to perform its

obligations. Concentrations of credit risk exist when a signicant proportion of investments

are invested in securities with similar characteristics or subject to similar economic, political

or other conditions.

It is the CFI’s policy to invest only in securities with at least AA investment ratings or the

equivalent. In addition, the CFI’s investment policy restricts the single largest issuer, in the

case of all but AAA Government, to a maximum of 1% to 20% [2019 – 1% to 20%] of the total

investment portfolio depending on the investment category. As such, management believes

that credit risk is appropriately managed.

5. Capital assets

Capital assets consist of the following:

2020 2019

Cost

Accumulated

amortization

Net book

value

Net book

value

Leasehold improvements 2,306,907 363,625 1,943,282 2,161,22

Furniture and other equipment 804,768 390,591 414,177 532,931

Computers and software 1,281,010 1,066,029 214,981 166,646

Awards management system 6,629,688 6,134,108 495,580 1,135,571

11,022,373 7,954,353 3,068,020 3,996,368

Total cost and accumulated amortization related to capital assets held as at March 31, 2019,

were $10,872,520 and $6,876,152, respectively.

6. Deferred lease inducement

In August 2017, the CFI signed a lease ending February 28, 2029, for new premises and

received an inducement. The lease provides for eleven months of free basic rent totalling

$455,590 and seven months of free additional rent totalling $287,159. The total amount

of $742,749 has been recognized as an inducement. The amortization of the inducement

is over 127 months commencing August 1, 2018. As at March 31, 2020, the unamortized

balance is $625,781.

7. Deferred contributions

The CFI operates under two active Funding Agreements and three Contribution Agreements

with the Government of Canada. As at March 31, 2020, the Government of Canada had

committed $8.79 billion in grants to the CFI under these agreements, of which $6.12 billion

had been received. The terms and conditions of these agreements call for remaining grants

to be paid to the CFI annually, subject to sucient appropriation by Parliament, based

on the estimated cash requirements for the year. During the scal year, the CFI received

$391.3million [2019 – $330.7 million] related to these agreements.

CANADA FOUNDATION FOR INNOVATION

EXPENSES OF FUTURE YEARS

Deferred contributions related to expenses of future years represent unspent externally

restricted grants received to date, together with investment revenue earned, for the purpose

of providing grants to eligible recipients and paying for operating and capital expenditures in

future years.

2020 2019

$ $

BALANCE, BEGINNING OF YEAR 224,916,658 290,477,114

Add grants received 391,300,000 330,700,000

Add restricted investment revenue earned 6,618,775 6,073,300

Less amount recognized as revenue (372,436,205) (399,289,475)

Less amount applied toward capital assets

acquired

(149,853) (3,050,525)

Loss on equipment disposals — 6,244

BALANCE, END OF YEAR 250,249,375 224,916,658

CAPITAL ASSETS

Deferred contributions related to capital assets represent the unamortized amount

of restricted grants received and applied toward the purchase of capital assets. The

amortization of capital contributions is recorded as revenue in the statement of operations

on the same basis as the amortization of the related capital assets.

2020 2019

$ $

BALANCE, BEGINNING OF YEAR 3,996,368 2,197,752

Restricted grants applied towards the

purchaseof capital assets

149,853 3,050,525

Loss on equipment and write-os — (6,244)

Less amount amortized to revenue (1,078,201) (1,245,665)

BALANCE, END OF YEAR 3,068,020 3,996,368

8. Commitments

During the year, the CFI approved grants for a maximum amount of $380.0 million

[2019 – $135.3 million]. Total disbursements to eligible recipients during the scal year were

$359.6 million [2019 – $386.1 million]. As at March 31, 2020, the CFI has approved grants

for a maximum amount of $8,300.6 million, of which $7,322.3 million had been disbursed. To

date, the CFI has award agreements in place related to these approved grants in the amount

of $8,018.6 million and, therefore, has outstanding contractual obligations of $696.3 million

as at March 31, 2020.

ANNUAL REPORT 2019–20

The CFI estimates these obligations to be disbursed as follows:

in millions of

2021 250.7

2022 160.1

2023 132.3

2024 62.7

2025 onwards 90.5

TOTAL ESTIMATED DISBURSEMENTS 696.3

In August 2017, the CFI signed a lease for premises at 55 Metcalfe Street, Ottawa, Ontario

fora period ending February 28, 2029. The minimum annual lease payment related to the

new premises is approximately $1.0 million.

9. Restricted contributions and net assets

The requirements of the Act, which governs the CFI and the terms of its Funding and

Contribution Agreements with the Government of Canada, externally impose restrictions

on all of the CFI’s net assets. Investment revenue to be earned on the grants received from

the Government of Canada is also restricted. Accordingly, the entire net assets of the CFI

are deferred and taken into revenue as expenditures are made with no net asset balance

outstanding at any time. A statement of changes in net assets has not been prepared since

itwould not provide additional useful information.

10. Pension plan

The employees of the CFI may elect to become members of the Universities Canada Pension

Plan [the ”Plan”], a dened contribution plan managed by Sun Life Financial Inc. The employer

contributions made to the Plan during the year ended March 31, 2020, amounted to $766,907

[2019 – $770,598].

11. Statement of cash ows

2020 2019

$ $

Interest and other receivables (182,300) 678,364

Prepaid expenses (180,624) 112,745

Accounts payable and accrued liabilities 522,824 (359,985)

Deferred lease inducement (70,181) 695,962

International Conference on Research

Infrastructures project deposits

458,453 94,826

548,172 1,221,912

12. Global coronavirus pandemic

The global coronavirus pandemic has resulted in estimated losses of $125,295 relating to

travel costs incurred for the 2020 Innovation Fund merit-review process. These have been

reected in general and administration expenses. Further impacts are unknown at this time.

CANADA FOUNDATION FOR INNOVATION