Canada Foundation for Innovation | Annual Report 2023-24 : simplebooklet.com

Table of contentsServingCanada ...................................................................2Overview .................................................................................4Our strategic plan ...............................................................6Invest.........................................................................................9Manage .................................................................................13Understand .........................................................................18Connect globally ..............................................................18Communicate ....................................................................20Looking toward the future ...........................................23Financial statements ...................................................... 24

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ServingCanadaThe Canada Foundation for Innovation (CFI) provides the necessary equipment, laboratories and spaces where researchers in all elds can work individually and collaboratively across disciplines to solve some of the challenges of today’s world. Their work will assure Canada’s success by driving new medical treatments, creating innovative processes and devices, and improving the preservation of our environment. Their innovations and inventions will enable the development of highly sophisticated technologies and techniques that will take these ideas to market, creating employment, beneting the economy and improving our lives.This year, as we put into action our strategic plan, Aiming high, we were resolutely innovative in responding to the needs of the research community by encouraging early career researchers, supporting technical sta, inviting increased participation by humanists and social scientists, and inspiring creative collaborations in co-lab spaces. We opened the door to the greater involvement of not-for-prot organizations as applicants and research partners. In these activities, as in all we do, we were guided by our desire to be collaborative across disciplines and geography and respectful of the principles of equity, diversity and inclusion.Over the last 27 years, the CFI has built a solid base for research extending across the country and as the population grows and needs and interests expand, we have strived to meet them. For example, after extensive consultation, we launched the new Northern Fund (read more about this new funding program on page 11). With the goal of supporting the platforms that are being developed by institutions and not-for-prot agencies in the North, we will invest in creating and equipping the facilities in which Northern communities will work to resolve some of the unique challenges they face. Addressing the goals of contributing to environmental sustainability and international collaboration, the CFI was pleased to be elected to membership in the Belmont Forum, an international organization that fosters collaboration on topics including environmental research (read more about our participation on page 18). The CFI’s rst activity will be to organize an international panel on research and research infrastructure in support of Arctic sustainability. The Navigator, the CFI’s virtual guide linking business and industry with research facilities, celebrated its tenth anniversary and its 800-plus listings, including government labs that welcome business collaborations along with those in colleges, universities and hospitals (read more about the Navigator on page 20). Recent goals include attracting companies to Canada and serving those already here. The Navigator is also looking to articial intelligence and new partners to expand the services it oers.In this world of change, the CFI stands in unwavering support of excellence that benets Canada. We encourage the new ideas and concepts that will make our country a world leader and actively contribute to a strong vision for the future of research. Indeed, we drafted a value proposition that outlines our vision for research in Canada, and which has been supported by the leaders of many organizations. We share it with you along with our enthusiasm and hope for an innovative future. We would also like to express our gratitude to our Board Directors and Members for their diligence in thoughtful consideration of issues and reports, to sta for their assiduous eorts and professionalism, to the communities we serve for their brilliant initiatives, and to the governments of Canada and the provinces and territories for their continuous and wise investment in research infrastructure.Roseann O’Reilly RuntePresident and CEOIngrid J. PickeringChair of the Board2CANADA FOUNDATION FOR INNOVATION

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OverviewWhat we do With a bold, future-looking mandate, the CFI equips researchers to be global leaders in their elds and to respond to emerging challenges. Our investments in state-of-the-art tools, instruments and facilities at universities, colleges, research hospitals and non-prot research institutions underpin both curiosity- and mission-driven research that cuts across disciplines and bridges all sectors. The research infrastructure we fund mobilizes knowledge, spurs innovation and commercialization, and empowers the talented minds of a new generation.Our objectives • Support economic growth and job creation, as well as health and environmental quality through innovation • Increase Canada’s capability to carry out important world-class scientic research and technology development • Expand research and job opportunities by providing support through research infrastructure for the development of highly qualied personnel • Promote productive networks and collaboration among Canadian universities, colleges, research hospitals, non-prot research institutions and the private sectorHow we do it Optimizing federal government investmentsThe CFI typically contributes up to 40 percent of a project’s research infrastructure costs. Research institutions — the ultimate recipients of our funding — secure the remaining 60 percent through partnerships with provincial and territorial governments, industry and other public, private and not-for-prot organizations. By attracting co-funding from strategic partners, this unique funding model optimizes the Government of Canada’s investments in research infrastructure. This means that Government of Canada investments have enabled CFI awards of $10.97 billion (as approved by the CFI Board of Directors), which have been leveraged into a total investment of $25.85 billion in research infrastructure in Canadian institutions since we were created.* Rewarding excellence 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 contribution of the research infrastructure project to strengthening innovationcapacity • The benets of the research to Canada. Our process ensures that the infrastructure projects that best meet these criteria receive funding.177 research institutions in82 municipalities across Canada.*billion for Since 1997, Government of Canada investments have enabled CFI awards of $10.97 * As of March 31, 20244CANADA FOUNDATION FOR INNOVATION

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Our valuesThe CFI is committed to the principles of equity, diversity and inclusion. 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 our programs and research infrastructure 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. They include gender, language, culture and career stage; institutional characteristics such as size, type and location; and attributes that encompass the full spectrum of research, from basic to applied and across all disciplines. Inclusion We encourage a culture of collaboration and partnership which includes contributions from 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.For our part, we strive to be:Responsible Collaborative InnovativeHow we live it externallyWe remain transparent and accountable by monitoring and communicating the outcomes of our activities andinvestments.We are client-focused, providing eective, ecient services and actively consulting with our stakeholders.We believe in a bright future for Canada’s research community. Our investments allow researchers to think big and have a profound, transformative impact on society.How we live it internallyWe are objective, ensuring the integrity and independence of our processes and decisions.We foster teamwork, valuing and considering the opinions, and trusting the skills and knowledge, of our colleagues.We bring fresh ideas into a work environment that fosters excellence and creative thinking.ANNUAL REPORT 2023–245

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Our strategic planThe CFI’S 2023–28 strategic plan is built on ve pillars that underpin our vision for Canadian research. Follow the icons in this annual report to see how our activities supported these pillars this year.Fostering the science of tomorrow:Building today the research capacity that supports the science oftomorrowWe are building a strong future for Canada through research. We do this by investing in the facilities and equipment that: drive discovery and advance knowledge; contribute to the training, recruitment and retention of a new generation of talent; and bring social and economic benets to Canada.Building prosperous and healthy communities:Enhancing the connection between research and communitiesResearch institutions provide both tangible and intangible benets to the communities where they are located. Recognizing that research increasingly spans many social and economic sectors, our programs foster opportunities for all members of a community to contribute to and benet from research. To do this, we partner with organizations from dierent sectors to support research.Contributing to a sustainable world:Contributing to environmental, social and economic sustainabilityWe seek to contribute to the attainment of the United Nations’ Sustainable Development Goals (SDGs) by leveraging our role as an enabler of research. We encourage research institutions to nd ways to integrate the SDGs into the projects we fund. And as an organization with an impact of its own to consider, we also strive to make our operations and activities more sustainable.6CANADA FOUNDATION FOR INNOVATION

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Inspiring the nextgeneration: Promotingequity, diversity, inclusion and communityWith the understanding that research that involves people from a range of experiences often has the greatest impact, we encourage institutions to create environments that bring people together, making them feel welcome and enabling the kind of interaction and understanding that can lead to discovery and innovation. We recognize that investments in research facilities and equipment are also investments in the development of a new generation of research talent and we encourage the training, recruitment and retention of new researchers through our program activities.Delivering for the research community: Leveraging institutional partnerships andcollaborationIn Canada and internationally, advances in scientic research result from the combined eorts of multiple actors from the academic, public, private and not-for-prot sectors. We nd opportunities to collaborate and partner with other organizations to maximize the impact of public funding for research. This results in programs and policies that foster Canada’s research enterprise and enable academic and private research institutions to continue tosuccessfully compete with the best in the world. ANNUAL REPORT 2023–247

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InvestThis year, we successfully completed the 2023 Innovation Fund competition and, in collaboration with the Tri-agency Institutional Programs Secretariat (TIPS), delivered the second competition of our Biosciences Research Infrastructure Fund which supports the Government of Canada’s Biomanufacturing and Life Sciences Strategy. We also continued to administer our two annual funds — the John R. Evans Leaders Fund and the College Fund. By the end of the scal year, our Board of Directors approved 483 projects for a total CFI contribution of nearly $760.4 million in capital funding and $226.4 million in infrastructure operating and maintenance costs. We also implemented research security measures related to research infrastructure in support of the Government of Canada’s National Security Guidelines for Research Partnership and their Policy on Sensitive Technology Research and Aliations of Concern. These new measures require applicant institutions to identify and mitigate potential risks related to research partnerships. Through these measures, we will continue to fund projects that include open and collaborative research partnerships while also safeguarding the country’s national security interests.Thinking big for meaningfulimpact Innovation Fund The Innovation Fund provides continued investments in infrastructure across the full spectrum of research, from the most fundamental to applied through to technology development. Projects funded through the Innovation Fund will help Canada remain at the forefront of exploration and knowledge generation while making meaningful contributions to generating social, health, environmental and economic benets and addressing global challenges. In 2023–24, we completed the review process for the 2023 Innovation Fund competition and awarded $397.7million in capital funding through this funding program and $117.7million through the Infrastructure Operating Fund (IOF) for associated operating costs. This was in support of 100 research infrastructure projects led by 32 institutions. These projects address top-of-mind concerns for Canadians, including therapies to address opioid addiction, protecting our freshwater resources and advancing new vaccines.Enhancing innovation throughpartnerships College Fund The College Fund supports projects that enhance the capacity of Canadian colleges to carry out applied research and technology development and foster partnerships that generate innovative products, processes or services that address the social, business, health or environmental needs of a Canadian industry or community.In 2023–24, we supported 23 research infrastructure projects at 22 colleges, Cégeps and polytechnics. We awarded $13.9million in capital funding through this funding program and $4.2 million through the IOF for associated operating costs. Projects range from helping food and beverage companies nd sustainable packaging solutions to creating an experimental site to test new emergency response technologies for natural disasters like res and oods.ANNUAL REPORT 2023–249

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Supporting Canada’s Biomanufacturing and LifeSciencesStrategyBiosciences Research InfrastructureFund The Biosciences Research Infrastructure Fund (BRIF) supports the bioscience infrastructure needs of postsecondary institutions and research hospitals by providing high-performance tools, innovative research spaces and biocontainment facilities.In February 2024, the CFI Board of Directors approved $278.1million in capital funding and $83.4 million through the IOF for associated operating costs. This was in support of 14research infrastructure projects involving 21 institutions. This funding was delivered as a joint program along with the Canada Biomedical Research Fund (CBRF), which is administered by TIPS.The research infrastructure projects will contribute to:• Building Canada’s capacity to identify and monitorpathogens through new technologies andimprovedprocesses• Identifying and addressing gaps to ensure the country’sbiomanufacturing processes are reliable, scalableand adaptable• Strengthening our collaborative biomanufacturing ecosystem while providing hands-on training across arange of career trajectories and stages• Researching and developing new vaccines, antibiotics and immune-based therapeutics• Improving diagnostic testing, including working with marginalized communities to address diagnostic gaps• Preparing policy and practice to increase public trust in, and access to, safe and eective vaccines and other bioscience innovations.The research infrastructure funded aligns with the objectives of the ve hubs announced by the Government of Canada in March 2023, which were funded in the rst stage of the CBRF funding opportunity. These hubs — led by the University of British Columbia in Vancouver, B.C., the University of Alberta in Edmonton, Alta., the University of Toronto in Toronto, Ont., the University of Ottawa in Ottawa, Ont., together with McMaster University in Hamilton, Ont., and the Université de Montréal in Montréal, Que. — aim to speed up the research and development of vaccines and other medicines and diagnostics, and support the training and development of highly skilled bioscience professionals.Supporting research facilities ofnational importance Major Science InitiativesFund The Major Science Initiatives Fund (MSIF) provides support for the ongoing operating and maintenance needs of research facilities of national importance. It promotes responsible stewardship by ensuring these facilities adopt best practices for their management and governance.In November, we gathered 130 representatives from the 19research facilities supported through this funding program, including members of their governing boards, administrative institutions and funding partners, for a workshop at the University of Saskatchewan in Saskatoon, Sask. Attendees discussed good practices for managing these vital research facilities, along with challenges and plans for their optimal operation and maintenance. Participants took advantage of the location to tour the Canadian Light Source, the Vaccine and Infectious Disease Organization, Global Water Futures Observatories and the Super Dual Auroral Radar Network (SuperDARN), all of which are located at the university.10CANADA FOUNDATION FOR INNOVATION

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Attracting and retaining the world’s best researchers John R. Evans Leaders Fund At a time of intense international competition, the John R. Evans Leaders Fund (JELF) is a critical strategic investment tool designed to help institutions attract and retain the very best of today’s and tomorrow’s researchers.This funding program, which pays tribute to the rst Chair of the CFI’s Board of Directors, includes streams that accept proposals submitted alongside an application for research support from our funding partners:• TIPS’s Canada Research Chairs and Canada Excellence Research Chairs programs• The Natural Sciences and Engineering Research Council of Canada (NSERC) through its Alliance Grantsprogram • The Social Sciences and Humanities Research Council of Canada (SSHRC) through its Insight Grants and Partnership Grants programs. In 2023–24, we awarded $72.3 million in capital investments through this funding program and $21.7million through the IOF for associated operating costs. These investments will support 351 research infrastructure projects at 53institutions. Of these projects:• 272 (awarded $54.9 million) were unaliated to anypartnership • 66 (awarded $11 million) supported Canada ResearchChairs• Seven (awarded $4.7 million) supported Canada Excellence Research Chairs • Three (awarded $742,000) were partnerships withNSERC• Three (awarded $910,235) were partnerships withSSHRC. Investing in the North Northern Fund The Northern Fund will provide eligible institutions and organizations in Northern Canada with research infrastructure that will enhance the capacity for projects that address the priorities of the region and its communities. These research projects will be conceived, developed, led and managed by Northern institutions, researchers and communities.On January 31, 2024, we launched the call for proposals for this new funding program. Over ve years, the CFI will invest up to $25 million in research infrastructure funding, including associated operation and maintenance funding through the IOF.ANNUAL REPORT 2023–2411

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ManageFinancial highlights (for the year ending March 31, 2024)Since 1997:$11.46 billion*Total amount committed to the CFI by the Government of Canada, of which $7.6 billion has been received. The balance will be received in future years, based onannual cashrequirements. $10.97Total awards approved by the CFI Board of Directors, of which $8.94 billion has been disbursed to eligible institutions. The remaining $2.03 billion will be disbursed infuture years as institutions implement CFI-funded projects.$25.85Total investment in research infrastructure including CFI contributions (typically 40 percent of project cost) plus those from institutions and their partners (typically 60 percent) This scal year:$496.07 millionTotal disbursements to eligible institutions $375.81Allocations received from the GovernmentofCanada$986.8Awards approved$15.81CFI operating expenses billion billion million million million* The CFI has generated an additional $1.73 billion in interest income since its inception, $1.41 billion of which has now been awarded to eligible institutions. The remaining amount of $321.07 million has been allocated to CFI operating expenses or will be awarded to eligible institutions.Annual disbursements to institutions and operating expenses as a percentage of disbursements 01002003004005006002024202320222021202020192018201720162015201420132012201120102009200820072006200520043.2%AVERAGE 3.4%OPERATING EXPENSES(as a % of disbursements to institutions)DISBURSEMENTS TO INSTITUTIONS(millions $)0.02.55.0ANNUAL REPORT 2023–2413

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Contributions to eligible costs from the CFI and other funding sources since the CFI’s creation in 1997: Total $25.85 billionContributions to eligible costs from the CFI and otherfunding sources for scal year 2023–24: Total$2.02 billion48.9%CFI10.8%Corporations/rms3.6%Federal government(departments or agencies)0.1%Voluntary organizations4.1%Institutions, trust fundsor foundations0.3%Other1.8%Other governmental sources(municipal or foreign)30.4%Provincial governments(departments or agencies)48.9%CFI51.1%Partners42.4%CFI42.4%CFI12.8%Corporations/rms2.9%Federal government(departments or agencies)57.6%Partners0.2%Voluntary organizations10.8%Institutions, trust fundsor foundations4.4%Other0.4%Other governmental sources(municipal or foreign)26%Provincial governments(departments or agencies)14CANADA FOUNDATION FOR INNOVATION

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Managing 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 2023. Since 2008, the CFI has been receiving funds from the federal government sucient to cover projected award disbursements to institutions. As a result, the CFI concentrates on liquid investments and maintains an appropriate liquidity policy. Remaining accountable We perform ongoing oversight activities to ensure that institutions spend CFI funds as intended and have appropriate processes and controls in place to manage awards. Theseinclude:• Contribution audits of projects where the CFI investment is $10 million or more, as well as other projects, depending on the risks associated with them• Review of nancial reports to monitor what institutions are spending for each project • An annual analysis of nancial trends among institutions that have ongoing CFI projects, to more precisely align payments to institutions with spendingtrends.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, industry, not-for-prot, institutional, academic and research sectors. The Government of Canada appoints six Directors (these are 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, Board of Directors; Audit and Finance Committee; Governance and Nominating Committee; InvestmentCommittee Cecilia Moloney Vice Chair, Board of Directors; Chair, Governance and Nominating Committee William Waterman Chair, Audit and Finance Committee; Chair, InvestmentCommitteeCatherine Aczel Boivie* Audit and Finance Committee; Investment Committee Lynda Brown-Ganzert* John Kelly* Audit and Finance Committee; Investment Committee Ronald Layden* Audit and Finance Committee; InvestmentCommittee Christopher Mushquash Governance and Nominating Committee Marc Ouellette Governance and Nominating Committee Morag Park Governance and Nominating CommitteeGail Powley Governance and Nominating CommitteeMamdouh Shoukri* Governance and Nominating Committee*Governor-in-Council appointment ANNUAL REPORT 2023–2415

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Members The Board of Directors reports to a higher governing body made up of our Members, who represent the Canadian public. Following a careful review of recommendations for possible candidates, Members nominate and appoint new Members for five-year terms. They meet in June each year and are responsible for appointing seven of the Board Directors, appointing external auditors, reviewing audited financial statements and approving the annual report. Sophie Bouard and Marilyn Luscombe, Co-Chairs Jack Gauldie Chair, Members Governance and NominatingCommitteeLorne Babiuk Members Governance and NominatingCommittee Jean-Paul Deveau Elizabeth Douville Joanne Gassman Members Governance and NominatingCommittee Alexandra King Erasmus OkineLouise ProulxPierre Richard Members Governance and NominatingCommittee Luc Vinet David M. C. WalkerRemuneration Remuneration for Board Directors andMembersDirectors 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 fee of $750 for attending Board or committee meetings.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 2023–24, the remuneration of Board Directors ranged from $2,400 to $16,750.Ranges of remuneration for CFI sta Ocers Position level 2023–24 rangePresident $246,700 to $345,500Vice President $163,500 to $226,400Other staPosition levels with pay ranges that exceed $100,000/year 2023–24 range7 $135,500 to $180,8006 $117,900 to $157,5005 $107,300 to $142,8004S $96,300 to $128,2004 $85,500 to $114,000ANNUAL REPORT 2023–2417

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UnderstandWe use data to improve our processes and program delivery as well as to explore, assessanddemonstrate our results and their benets to Canadians.Analyzing corporate performanceWe monitor and communicate the outcomes of our activities and investments in order to remain transparent and accountable for the funding we receive from the Government of Canada. To that end, we revised our 2020 Performance, evaluation, risk and audit framework (PERAF) in response to: • The completion, in 2023, of the internal audit of the risk oversight activities for funded projects and institutions • The adoption of a new strategic plan for 2023 to 2028• The launch, in 2021, of the Biosciences Research Infrastructure Fund• The launch, in 2024, of the Northern Fund.We also updated our performance measurement framework to ensure it continues to align with our organizational objectives and the evolving research landscape.Taking the pulse of ourstakeholdersIn spring 2023, we resumed our biennial satisfaction survey of CFI stakeholders, including representatives from federal, provincial and territorial governments, other funders and partners in the research community, and administrators and researchers at institutions eligible for CFI funding. The 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. In keeping with previous years, the CFI continues to be recognized as a valuable organization for supporting Canadian science and technology development. Most survey respondents are satised or very satised with the CFI, and both the design and delivery of CFI funding programs continue to receive high ratings.Developing a new project progress report for the Biosciences Research Infrastructure FundWe developed a targeted project progress report (PPR) questionnaire to track the outputs and outcomes of projects funded through BRIF. The PPR is an online questionnaire completed by project leaders and submitted by institutions each year to report on the outcomes resulting from their CFI-funded infrastructure. The new questionnaire aligns our data collection to the objectives and prerequisites of the funding program. It will be available in the CFI Awards Management System in April 2025.Connect globally This year, we continued to develop partnerships with international counterparts to further our strategic plan commitments of increasing Canadian access to international research institutions; increasing the participation in assessment committees of international experts from outside Europe and North America; promoting Canadian research infrastructures internationally; and signaling our commitment to environmental sustainability in research. InOctober, we became Canada’s rst research funding body to sign a memorandum of understanding with the Agence universitaire de la francophonie (AUF), an organization representing over 1,000 francophone postsecondary institutions in 120 countries worldwide. In November, we became a partner of the Belmont Forum, an international partnership of national research funding organizations that mobilizes funding of research on environmental change. 18CANADA FOUNDATION FOR INNOVATION

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CommunicateThrough our communications activities we strive to demonstrate the value and impact the investmentswe make have on the Canadian research and innovation community — andhowthey benet Canadians.Research Facilities Navigator: 10 years andcounting On November 27, we launched a campaign marking the 10th anniversary of the Research Facilities Navigator, an online tool which helps connect academia with innovators and entrepreneurs across all sectors. This campaign includes videos from researchers, partners and participating institutions on the value of the Navigator to Canada’s innovation ecosystem, as well as advertising in key publications and social media promotion — all amplied by our partners in innovation.In addition, in November we announced a partnership with eCampus Ontario that will provide Ontario businesses with greater opportunities to connect with research and development support available in universities and colleges across the province. The partnership leverages the information on the Navigator to support theOntario Collaborative Innovation Platform(OCIP), eCampusOntario’s business and researcher matchmaking program.Ready for a changingworld In September, we launched “Ready for a changing world,” a campaign that showcased research infrastructure projects in the area of climate change and environmental sustainability to raise awareness about the research CFI funding has enabled in those areas and the benets it brings to Canadians.Inspiring the next generationWe held two webinars for postsecondary students called “Future you: How to build your career in environmental sustainability.” Featuring eight young professionals working in sustainability elds who had previously trained in CFI-funded labs, the webinars aimed to inspire young people to pursue careers in these elds. The panelists oered advice and reected on the value of lab work in developing relevant skills that helped them build rewarding careers. Making the caseWe produced a series of case studies that look at the impact of eight dierent CFI-funded research infrastructure projects in addressing climate change and environmental sustainability. Ranging from the development of new products and improving regulations to responding to emerging environmental issues and protecting natural resources, the case studies highlight the breadth of benets funding for research infrastructure has ultimately had on Canadians. 20CANADA FOUNDATION FOR INNOVATION

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Among the case studies were:Protecting Canada’s coastlinesOil spills pose environmental and economic threats to the nearly 6.5 million people who live in Canada’s marine and coastal areas. Researchers at the world-class Coastal Environment Research Laboratory (CERL) at Memorial University of Newfoundland in St. John’s, Nd., including project leader Baiyu Zhang (above), are studying how oils behave in marine waters and developing evidence-based ways to expand the country’s oil-spill toolkit.Ensuring Canada’s freshwater futureFreshwater ecosystems not only provide water for drinking, agriculture and energy production, but they are also integral elements of climate resilience. With approximately 20 percent of the world’s total freshwater resources located in Canada, research taking place at the University of Windsor’s (in Windsor, Ont.) Real-time Aquatic Ecosystem Observation Network (RAEON) is helping improve our understanding of these ecosystems so we can better manage and conserve them.Nature’s bellwethers Birds are widely recognized as biological indicators of environmental change. The Facility for Applied Avian Research (FAAR) at the University of Saskatchewan in Saskatoon, Sask., helps us understand how agricultural pesticides and pollutants are having an impact on wild bird populations, which are half of what they were 50 years ago.Safeguarding clean water Although water may seem like an innite resource, in Canada it is often contaminated. The team at the Centre for Research, Development and Validation of Water Treatment Technologies and Processes (CREDEAU), a consortium of four Quebec universities (Polytechnique Montréal, Université de Montréal, École de technologie supérieure and McGill University, all in Montréal, Que.) works with over 70 municipal partners to tackle the most pressing issues in drinking water, wastewater, rainwater, industrial wastewater and sludge treatment.ANNUAL REPORT 2023–2421

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Looking toward the futureWhat we are working on in 2024–25: Collaborating with our partners • Working in collaboration with TIPS to ensure alignment with Canada’s Biomanufacturing and Life Sciences Strategy and to develop the mid-term performance assessment of projects supported by the Biosciences Research Infrastructure Fund • Working with the federal research funding agencies, provinces, territories and institutions toimplement the federal government’s policies to protect Canadian research against securitythreats • Working with Innovation, Science and Economic Development Canada (ISED) to implement the Major Research Facilities framework • Working with ISED, other government departments and agencies, and the three federal research funding agencies to respond to Government of Canada priorities as they relate to research security, encouraging multidisciplinary research, international engagement and the country’s ability to undertake mission-driven research Supporting Canada’s research needs • Responding to emerging needs of the research community by launching the 2025 Innovation Fund competition, which is designed to attract proposals from the social sciences, humanities and arts, and to support the development of core facilities and the research professionals required to run them • Promoting Canadian research and international cooperation by participating in key international forums, including the Organisation for Economic Co-operation and Development’s (OECD) Global Science Forum, the Agence universitaire de la francophonie (AUF) and the Belmont Forum, and expanding our participation to other international research bodies and our work with international partners Raising the prole of research • Showcasing Canada’s new generation of innovators and entrepreneurs who translate skills gained while training on CFI-funded research infrastructure into launching new businesses orhelping existing ones thrive • Enhancing our service to businesses by seeking to align the Research Facilities Navigator and its content with other organizations that have a mandate to support various aspects of private-sector innovation • Promoting the 19 facilities supported through the Major Science Initiatives Fund to enhance their national and international proles and to promote their activities, impact and importance in Canada and abroadANNUAL REPORT 2023–2423

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A member rm of Ernst & Young Global LimitedIndependent auditor’s reportTo the Members of theCanada Foundation for InnovationOpinionWe have audited the financial statements of the Canada Foundation for Innovation [the “Foundation”], whichcomprise the statement of financial position as at March 31, 2024, and the statement of operations and statementof cash flows for the year then ended, and notes to the financial statements, including a summary of significantaccounting policies.In our opinion, the accompanying financial statements present fairly, in all material respects, the financial positionof the Foundation as at March 31, 2024 and its results of operations and its cash flows for the year then ended inaccordance with Canadian public sector accounting standards for government not-for-profit organizations.Basis for opinionWe conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilitiesunder those standards are further described in the Auditor’s responsibilities for the audit of the financial statementssection of our report. We are independent of the Foundation in accordance with the ethical requirements that arerelevant to our audit of the financial statements in Canada, and we have fulfilled our other ethical responsibilitiesin accordance with these requirements. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion.Responsibilities of management and those charged with governance for the financial statementsManagement is responsible for the preparation and fair presentation of the financial statements in accordance withCanadian public sector accounting standards for government not-for-profit organizations, and for such internalcontrol as management determines is necessary to enable the preparation of financial statements that are freefrom material misstatement, whether due to fraud or error.In preparing the financial statements, management is responsible for assessing the Foundation’s ability to continueas a going concern, disclosing, as applicable, matters related to going concern and using the going concern basisof accounting unless management either intends to liquidate the Foundation or to cease operations, or has norealistic alternative but to do so.Those charged with governance are responsible for overseeing the Foundation’s financial reporting process.Auditor’s responsibilities for the audit of the financial statementsOur objectives are to obtain reasonable assurance about whether the financial statements as a whole are free frommaterial 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 accordancewith Canadian generally 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, theycould reasonably be expected to influence the economic decisions of users taken on the basis of these financialstatements.ANNUAL REPORT 2023–2425

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A member rm of Ernst & Young Global Limited– 2 –As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the financial statements, whether due to fraud orerror, design and perform audit procedures responsive to those risks, and obtain audit evidence that issufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatementresulting 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 areappropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of theFoundation’s internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimatesand related disclosures made by management. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, basedon the audit evidence obtained, whether a material uncertainty exists related to events or conditions that maycast significant doubt on the Foundation’s ability to continue as a going concern. If we conclude that a materialuncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in thefinancial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are basedon the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions maycause the Foundation cease to continue as a going concern. Evaluate the overall presentation, structure and content of the financial statements, including the disclosures,and whether the financial statements represent the underlying transactions and events in a manner thatachieves fair presentation.We communicate with those charged with governance regarding, among other matters, the planned scope andtiming of the audit and significant audit findings, including any significant deficiencies in internal control that weidentify during our audit.Ottawa, CanadaJune 17, 202426CANADA FOUNDATION FOR INNOVATION

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Canada Foundation for InnovationAs at March 312024 2023$ $AssetsCash and cash equivalents [note 4]79,131,635 203,308,131Interest and other receivables1,163,350 1,426,645Prepaid expenses505,222 401,239Capital assets, net [note 5]1,249,484 1,473,00582,049,691206,609,020Liabilities and net assetsLiabilitiesAccounts payable and accrued liabilities995,990 1,968,696Deferred lease inducement [note 6]345,057 415,2381,341,047 2,383,934Deferred contributions [note 7]Expenses of future years 79,459,160 202,752,081Capital assets 1,249,484 1,473,005Total liabilities 82,049,691 206,609,020Commitments [note 8]Net assets [note 9]— —82,049,691206,609,020See accompanying notesOn behalf of the Board:Director DirectorStatement of financial positionANNUAL REPORT 2023–2427

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Canada Foundation for InnovationYear ended March 312024 2023$ $Operating activitiesExcess of revenue over expenses for the year — —Add (deduct) items not affecting cashAmortization of capital assets 338,752 425,741Amortization of deferred contributions related to capital assets (338,752) (425,741)Decrease in deferred contributions related to expenses of future years net of investment income [note 7](499,097,979) (392,527,650)Net change in non-cash working capital balancesrelated to operations [note 11](883,575) (538,830)Cash used in operating activities (499,981,554) (393,066,480)Capital activitiesPurchase of capital assets (115,231) (125,440)Increase in deferred contributions related to capital assets 115,231 125,440Cash provided by capital activities — —Financing activitiesGrants received [note 7]375,805,058 443,200,294Cash provided by financing activities 375,805,058 443,200,294Net increase (decrease) in cash and cash equivalentsduring the year (124,176,496) 50,133,814Cash and cash equivalents, beginning of year 203,308,131 153,174,317Cash and cash equivalents, end of year79,131,635203,308,131See accompanying notesStatement of cash flowsANNUAL REPORT 2023–2429

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Canada Foundation for InnovationNotes to financial statementsMarch 31, 202411. Description of businessThe Canada Foundation for Innovation [the “CFI”] was incorporated on April 25, 1997, under Part I of the BudgetImplementation Act, 1997 [the “Act”] for the purpose of making research infrastructure grants to Canadianuniversities, colleges, hospitals and non-profit 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 inaccordance with the requirements of the Act and the terms and conditions of the Funding and the ContributionAgreements 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 significant accounting policiesThe financial statements have been prepared by management in accordance with Canadian public sectoraccounting standards for government not-for-profit organizations and include the following significant accountingpolicies:Cash and cash equivalentsCash and cash equivalents consist of cash deposits and short-term investments with terms to maturity less than90 days from the date of acquisition or that are able to be cashed on demand.Revenue recognitionThe CFI follows the deferral method of accounting for contributions that include grants from the Government ofCanada and potential donations from other sources.Externally restricted contributions and related investment income are deferred and recognized as revenue in theyear in which the underlying expenditures are incurred. A receivable is recognized if the amount to be receivedcan be reasonably estimated and collection is reasonably assured.Externally restricted contributions to be applied toward the purchase of capital assets are deferred and amortizedto revenue on a straight-line basis, at a rate corresponding with the amortization rate for the related capital assets.Grants to eligible recipientsGrants to eligible recipients are recognized as expenses as the disbursements of funds are authorized bymanagement and all eligibility criteria are met.Financial instrumentsThe CFI records cash and cash equivalents, interest and other receivables and accounts payable and accruedliabilities at amortized cost using the effective interest method of amortization, which approximates fair value giventhe short term to maturity. Transactions are recorded on a settlement date.30CANADA FOUNDATION FOR INNOVATION

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Canada Foundation for InnovationNotes to financial statementsMarch 31, 20242Capital assetsPurchased capital assets are recorded at cost while contributed capital assets, if any, are recorded at fair value atthe date of contribution. Repairs and maintenance costs are charged to expenses. When a capital asset no longercontributes 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 leaseFurniture and other equipment 5 yearsComputer and software35 yearsAwards management system Fully amortizedUse of estimatesThe preparation of these financial statements requires the CFI’s management to make estimates and assumptionsthat affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities asat the date of the financial statements and the reported amounts of revenue and expenses during the reportingperiod. Actual results could differ from these estimates. These estimates are reviewed periodically and, asadjustments become necessary, they are reported in the periods in which they become known. The most significantestimates used in preparing these financial statements include assumptions used in determining the collectabilityof accounts receivable, the estimated useful lives of capital assets and the amount of accrued liabilities.3. Capital managementIn managing capital, the CFI focuses on liquid resources available for operations and to be disbursed to eligiblerecipients. The CFI’s objective is to have sufficient liquid resources to continue operating in accordance with theFunding and the Contribution Agreements between the CFI and the Government of Canada, despite adverseevents with financial consequences, and to provide it with the flexibility to take advantage of opportunities that willadvance its purposes. The need for sufficient liquid resources is considered in the preparation of an annualcorporate plan, including long-term cash flow projections and budget. Disbursements to eligible recipients andactual operating results are monitored and compared to the cash flow projections to ensure availability of sufficientliquid resources. As at March 31, 2024, the CFI has met its objective of having sufficient liquid resources to meetits current obligations.4. Cash and cash equivalentsCash and cash equivalents comprise the following financial instruments:20242023FairvalueCarrying valueFairvalueCarrying value$ $ $ $Cash79,131,63579,131,635181,388,641 181,388,641Cash equivalents——21,921,907 21,919,49079,131,63579,131,635203,310,548 203,308,131ANNUAL REPORT 2023–2431

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Canada Foundation for InnovationNotes to financial statementsMarch 31, 20243Market riskInterest rate riskInterest rate risk arises when the value of a financial instrument fluctuates due to changes in market interest rates.The CFI invests in money market securities and deposit accounts and, as such, the interest rate does not presenta significant financial risk for the CFI.Price riskPrice risk is the risk that the fair value of a financial instrument will fluctuate because of changes in market prices[other than those arising from interest rate risk], whether those changes are caused by factors specific to anindividual financial instrument or its issuer, or factors affecting all similar securities traded in the market.As at March 31, 2024, the entire portfolio is composed of cash. As such, fluctuations in market price would nothave an impact on the fair value of the financial instrument.The CFI’s grant commitments do not exceed the total of its financial instruments, related investment income andgrants committed from the government that will be received in future years. The timing of financial instrumentsmaturities is matched to projected cash outflows. The degree of volatility is mitigated by the CFI’s policy that it willnot 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 deposit accounts are tiered-rate interest accounts that combine competitive interest, liquidity and security of asimple deposit account. The interest rates for these accounts range from 4.75% to 5.35% [2023 – 0.75% to 4.85%].Currency riskCurrency risk is the risk that the fair value of a financial instrument will fluctuate because of changes in foreignexchange rates. The CFI is not exposed to currency fluctuations.Liquidity riskLiquidity risk is the risk of not being able to meet cash requirements in a timely and cost-effective manner.The CFI matches the timing of financial instrument maturities to projected cash outflows. Furthermore, the entireportfolio is made up of cash. As such, liquidity does not present a significant financial risk to the CFI.Credit riskCredit risk arises from the potential that the issuer of an investment will fail to perform its obligations.Concentrations of credit risk exist when a significant proportion of investments are invested in securities with similarcharacteristics or subject to similar economic, political or other conditions.32CANADA FOUNDATION FOR INNOVATION

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Canada Foundation for InnovationNotes to financial statementsMarch 31, 20244It 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 maximumof 1% to 20% [2023 – 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 assetsCapital assets consist of the following:20242023CostAccumulatedamortizationNet bookvalueNet bookvalue$ $ $ $Leasehold improvements2,309,4611,236,2201,073,2411,291,528Furniture and other equipment828,687813,77414,91354,771Computers and software1,159,524998,194161,330126,706Awards management system6,629,6886,629,688——10,927,3609,677,8761,249,4841,473,005Total cost and accumulated amortization related to capital assets held as at March 31, 2023, were $10,812,129and $9,339,124, respectively.The awards management system became fully amortized on March 31, 2021. On-going maintenance of this systemis charged to expenses.6. Deferred lease inducementIn August 2017, the CFI signed a lease ending February 28, 2029, for new premises and received an inducement.The lease provides for 11 months of free basic rent totalling $455,590 and seven months of free additional renttotalling $287,159. The total amount of $742,749 has been recognized as an inducement. The amortization of theinducement is over 127 months commencing August 1, 2018. As at March 31, 2024, the unamortized balance is$345,057.7. Deferred contributionsThe CFI operates under two active Funding Agreements and four Contribution Agreements with the Governmentof Canada. As at March 31, 2024, the Government of Canada had committed $11.46 billion in grants to the CFIunder these agreements, of which $7.60 billion had been received. The terms and conditions of these agreementscall for remaining grants to be paid to the CFI annually, subject to sufficient appropriation by the Parliament, basedon the estimated cash requirements for the year. During the fiscal year, the CFI received $375.8 million[2023 – $443.2 million] related to these agreements.ANNUAL REPORT 2023–2433

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Canada Foundation for InnovationNotes to financial statementsMarch 31, 20245Expenses of future yearsDeferred contributions related to expenses of future years represent unspent externally restricted grants receivedto date, together with investment revenue earned, for the purpose of providing grants to eligible recipients andpaying for operating and capital expenditures in future years.20242023$ $Balance, beginning of year202,752,081152,079,437Add grants received375,805,058443,200,294Add restricted interest revenue earned12,564,0038,524,502Less amount recognized as revenue(511,546,751)(400,926,712)Less amount applied toward capital assets(115,231)(125,440)Balance, end of year79,459,160202,752,081Capital assetsDeferred contributions related to capital assets represent the unamortized amount of restricted grants receivedand applied toward the purchase of capital assets. The amortization of capital contributions is recorded as revenuein the statement of operations on the same basis as the amortization of the related capital assets.20242023$ $Balance, beginning of year1,473,0051,773,306Add restricted grants applied towards the purchase of capital assets115,231125,440Less amount amortized to revenue(338,752)(425,741)Balance, end of year1,249,4841,473,0058. CommitmentsDuring the year, the CFI approved grants for a maximum amount of $986.8 million [2023 – $920.5 million]. Totaldisbursements to eligible recipients during the fiscal year were $496.1 million [2023 – $386.9 million]. As atMarch 31, 2024, the CFI has approved grants for a maximum amount of $10,970.0 million, of which $8,942.7million had been disbursed. To date, the CFI has award agreements in place related to these approved grants inthe amount of $9,951.7 million and, therefore, has outstanding contractual obligations of $1,009.0 million as atMarch 31, 2024.34CANADA FOUNDATION FOR INNOVATION

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Canada Foundation for InnovationNotes to financial statementsMarch 31, 20246The CFI estimates these obligations to be disbursed as follows:$ millions2025 249.12026 207.42027 172.92028 140.82029 onwards 238.8Total estimated disbursements1,009.0In August 2017, the CFI signed a lease for premises at 55 Metcalfe Street, Ottawa, Ontario, for a period endingFebruary 28, 2029. The minimum annual lease payment related to the new premises is approximately $0.9 million.9. Restricted contributions and net assetsThe requirements of the Act, which governs the CFI and the terms of its Funding and Contribution Agreementswith the Government of Canada, externally impose restrictions on all of the CFI’s net assets. Investment revenueto be earned on the grants received from the Government of Canada is also restricted. Accordingly, the entire netassets of the CFI are deferred and taken into revenue as expenditures are made with no net asset balanceoutstanding at any time. A statement of changes in net assets has not been prepared since it would not provideadditional useful information.10. Pension planThe employees of the CFI participate in the Universities Canada Pension Plan [the “Plan”], a defined contributionplan managed by Sun Life Financial Inc. The total contributions to the Plan are 18% of the employee salary ofwhich 5% is from the employee and 13% from the CFI. The employer contributions made to the Plan during theyear ended March 31, 2024 amounted to $1,030,937 [2023 – $965,505] and are recorded in General andadministration expenses.11. Statement of cash flowsThe net change in non-cash working capital balances related to operations consist of the following:20242023$ $Interest and other receivables263,295(571,339)Prepaid expenses(103,983)(78,653)Accounts payable and accrued liabilities(972,706)476,444Deferred lease inducement(70,181)(70,181)International Conference on Research Infrastructure project deposits—(295,101)(883,575)(538,830)ANNUAL REPORT 2023–2435