In 2018, Parliament passed the Canadian Gender Budgeting Act. The departmental plans and departmental results reports are being used to fulfill the President of the Treasury Board’s obligations to make public, every year, analysis on the impacts of expenditure programs on gender and diversity.

Each organization is responsible for conducting their own Gender-based Analysis Plus (GBA Plus).

All organizations must complete GBA Plus supplementary information tables in departmental plans and departmental results reports on an annual basis.

In 2024–25, NSERC will continue to advance the implementation of Tri-Agency EDI Action Plan, working closely with the Canadian Institutes of Health Research (CIHR), the Social Sciences and Humanities Research Council (SSHRC), and other organizations and institutions. As outlined in NSERC’s strategic plan, NSERC 2030: Discovery, innovation, inclusion, the agency envisions a diverse and inclusive research ecosystem, one that expands the existing talent pool and research practices, finds common space for mutually respectful exploration, and serves to advance Indigenous research priorities. NSERC also continues to implement its Accessibility Plan, which aims to identify and remove barriers that hinder the full participation of persons with disabilities in the research ecosystem, and in the achievement of NSERC’s results by 2040.  

Self-identification data is collected from applicants and peer reviewers, enabling NSERC staff to undertake GBA Plus and other EDI-focused analyses, taking an intersectional approach. To report publicly on EDI in competition results, Discovery Grants, Research Tools and Instruments and Subatomic Physics Grants application rates and competition results are provided in dynamic dashboards on the NSERC website. In 2024–25, the agencies will review the Tri-Agency self-identification questionnaire. NSERC will work with the other agencies to strengthen governance and enhance availability and use of self-identification data to support initiatives such as ensuring equity in funding decisions and diversifying representation in peer review and advisory committees.

As part of the Tri-agency EDI Action Plan and NSERC 2030 strategic plan, NSERC commits to applying GBA Plus and integrating EDI considerations into its policies, plans, programs and processes in order to identify and address systemic biases that hinder equitable access to its programs. NSERC builds and sustains internal GBA Plus capacity by operating a GBA Plus Community of Practice and by allocating staff resources dedicated to EDI within the Programs and Human Resources divisions. In 2024–25, NSERC plans to synthesize GBA Plus findings from analyses of funding opportunities conducted to date, in order to identify gaps and best practices as well as provide recommendations for future analyses.

Mandatory GBA Plus and EDI training for NSERC staff will continue in 2024–25. In addition, NSERC is working with CIHR and SSHRC to update training for members of peer review committees. A comprehensive update of the ‘Bias in Peer Review’ training module is expected to be published in 2024–25.

The accompanying notes form an integral part of this Future-Oriented Statement of Operations.

The Natural Sciences and Engineering Research Council (NSERC) was established in 1978 by the Natural Sciences and Engineering Research Council Act, and is a departmental corporation named in Schedule II to the Financial Administration Act. NSERC’s purpose is to help make Canada a country of discoverers and innovators for the benefit of all Canadians, by supporting students, postdoctoral fellows, university professors and university-industry research partnerships. NSERC delivers its objectives under two Core Responsibilities which are described in the Departmental Plan.

NSERC’s grants, scholarships and operating expenditures are annually funded by voted budgetary authorities. Employee benefits are funded by statutory authorities.

The Future-Oriented Statement of Operations has been prepared based on government priorities and departmental plans as described in the Departmental Plan.

The information in the forecast results for fiscal year 2023–24 is based on actual results as at December 31, 2023 and on forecasts for the remainder of the fiscal year. Forecasts have been made for the planned results for fiscal year 2024–25.

The main assumptions underlying the forecasts are as follows:

• NSERC’s activities will remain substantially the same as in the previous year, except for a decrease from Budget 2023 in professional services and travel expenditures. These reductions will be offset by an increase in funding for the Lab to Market grants from Budget 2022 to launch a new national program to help students and researchers take their work to market.
• Expenses and revenues, including the determination of amounts internal and external to the government, are based on experience. The general historical pattern is expected to continue.

These assumptions are made as at December 31, 2023.

Although every attempt has been made to forecast final results for the remainder of 2023–24 and for 2024–25, actual results achieved for both years are likely to differ from the forecast information presented, and this variation could be material.

In preparing this Future-Oriented Statement of Operations, NSERC has made estimates and assumptions about the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances, and are continually evaluated.

Factors that could lead to material differences between the Future-Oriented Statement of Operations and the historical statement of operations include:

• the timing and the amount of acquisitions and disposals of property, plant and equipment, which may affect gains, losses and amortization expense;
• the implementation of new collective agreements;
• economic conditions, which may affect both the amount of revenue earned and the collectability of loan receivables;
• interest rates in effect at the time of issue, which will affect the net present value of non interest bearing loans; and
• other changes to the operating budget, such as new initiatives or technical adjustments later in the fiscal year.

After the Departmental Plan is tabled in Parliament, NSERC will not be updating the forecasts for any changes in financial resources made in ensuing supplementary estimates. Variances will be explained in the Departmental Results Report.

The Future-Oriented Statement of Operations has been prepared using the Government of Canada’s accounting policies in effect for fiscal year 2023–24 and is based on Canadian public sector accounting standards. The presentation and results using the stated accounting policies do not result in any significant differences from Canadian public sector accounting standards.

Significant accounting policies are as follows:

1. a) Expenses

   Grants and scholarships (transfer payments) are recognized as an expense in the year in which the entitlement of the recipient has been established, the transfer is authorized and all eligibility criteria have been met.

   Other expenses are generally recorded when goods are received or services are rendered and include expenses related to personnel, professional and special services, repair and maintenance, utilities, materials and supplies, as well as amortization of tangible capital assets. Provisions to reflect changes in the value of assets or liabilities, such as provisions for bad debts, loans, investments and advances and inventory obsolescence, as well as utilization of inventories and prepaid expenses, and other are also included in other expenses.

   Expenses also include provisions to reflect changes in the value of assets, including provisions for bad debt on accounts receivable and amortization of tangible capital assets which is done on a straight-line basis over the estimated useful life of the asset as follows:

   Asset Class	Amortization Period
   Computer hardware	3 years
   Computer purchased and developed software	5 years
   Machinery and equipment	5 years
   Other equipment (including furniture)	7 years
   Motor vehicles	7 years
   Leasehold improvements	Lesser of the remaining term of lease or useful life of the improvement

2. b) Revenues

   Revenues are recognized in the period in which the related transactions or the event that gives rise to the revenues occurred. Respendable revenues are revenues provided under a revolving fund or a net-voting authority and are netted against the costs of operations.

   Funds received from external parties for specified purposes are recorded upon receipt as deferred revenue. These revenues are recognized in the period in which the related expenses are incurred.

   Deferred revenue consists of amounts received prior to the provision of goods or services that will be recognized as revenue in a subsequent fiscal year as the performance obligations are met.

   Other revenues are recognized in the period the event giving rise to the revenues occurred and future economic benefits are expected to be received.

   Revenues that are non-respendable are not available to discharge the department’s liabilities. Although the deputy head is expected to maintain accounting control, he or she has no authority over the disposition of non-respendable revenues. As a result, non respendable revenues are earned on behalf of the Government of Canada and are therefore presented as a reduction of the department’s gross revenues.

NSERC is financed by the Government of Canada through parliamentary authorities. Financial reporting of authorities provided to NSERC differs from financial reporting according to generally accepted accounting principles because authorities are based mainly on cash flow requirements. Items recognized in the Future-Oriented Statement of Operations in one year may be funded through parliamentary authorities in prior, current or future years. Accordingly, NSERC has different net cost of operations for the year on a government funding basis than on an accrual accounting basis. The differences are reconciled in the following tables:

• a) Reconciliation of Net Cost of Operations to Requested Authorities
  (in thousands of dollars)

  	Forecast results 2023-24	Planned results 2024-25
  Net cost of operations before government funding and transfers	1,382,442	1,391,894
  Adjustments for items affecting net cost of operations but not affecting authorities:
  Revenues	203	203
  Amortization of tangible capital assets	(626)	(626)
  Services provided without charge by other government departments	(11,134)	(11,887)
  Increase in vacation pay and compensatory leave	(378)	(111)
  Decrease in employee future benefits	114	109
  Refund of previous years’ expenditures	4,107	4,107
  Total items affecting net cost of operations but not affecting authorities	(7,714)	(8,205)
  Adjustments for items not affecting net cost of operations but affecting authorities:
  Acquisitions of tangible capital assets	145	145
  Decrease in prepaid expenses	(766)	-
  Total items not affecting net cost of operations but affecting authorities	(621)	145
  Requested authorities	1,374,107	1,383,834

• b) Authorities Requested
  (in thousands of dollars)

  	Forecast results 2023-24	Planned results 2024-25
  Authorities requested:
  Vote 5 – Grants and scholarships	1,310,954	1,318,172
  Vote 1 – Operating expenditures	58,709	58,597
  Statutory amounts:
  Contributions to the employee benefit plan	6,841	6,862
  Spending of revenues pursuant to subsection 4(2) of the NSERC Act	203	203
  	1,376,707	1,383,834
  Less:
  Lapsed: Operating	(2,600)	-
  Total authorities requested	1,374,107	1,383,834

As Canada’s largest funder of science and engineering, the Natural Sciences and Engineering Research Council of Canada (NSERC) supports the work of the best and most promising researchers, students and postdoctoral fellows at universities, colleges, CÉGEPS and polytechnics across the country. The research programs and projects it funds can be curiosity-driven, industry-focused, interdisciplinary or high-risk/high-reward, thereby enriching the research ecosystem and society.

NSERC plays a central role in supporting Canada’s innovation ecosystem by connecting innovative research to key partners in the private, public and not-for-profit sectors. NSERC enables stakeholders to access the wealth of resources Canada’s first-rate academic institutions have to offer and to access new knowledge and technologies to put them to use. NSERC supports research that advances the prosperity and quality of life of Canadians. NSERC also recognizes the profound impact that international collaboration can have on research outcomes and is actively working to enhance the profile of Canadian research through international partnership activities.

Canada’s future discoverers and innovators can realize their full potential with the support of NSERC’s scholarships and fellowships programs, along with funding to support trainees through discovery and partnership awards. NSERC promotes the value of science, engineering and the thrill of discovery in Canada, helping to ensure our research ecosystem can meet the talent, industry and technological demands of today and the future. Canada needs a diverse pool of world-class researchers to maximize its research potential; fostering a lifelong love of science in youth across the country is the best way to expand that pool.

NSERC is a separate agency of the Government of Canada created in 1978. It is funded directly by Parliament and reports to it through the Minister of Innovation, Science and Industry. NSERC’s President is the Chief Executive Officer and is advised by a Council composed of the President and up to 18 other distinguished members selected from the private, public and not-for-profit sectors. The elected Vice-President is the Chair of the Council and of its Executive Committee. NSERC’s Council is advised on policy and program matters by various standing committees. Funding decisions are made by the President, or designate, on the basis of recommendations made by peer review committees.

The functions of NSERC, based on the authority and responsibility assigned to it under the Natural Sciences and Engineering Research Council Act (1976-1977, c.24), are to:

• promote and assist research in the natural sciences and engineering, other than the health sciences; and
• advise the Minister in respect of such matters relating to such research as the Minister may refer to the Council for its consideration.

For more general information about the agency, see the Supplementary information section of this report.

With funding from the Government of Canada, NSERC supports the world-class research of talented students and professors at universities and colleges across the country. NSERC funding supports research excellence in an evolving Canadian post-secondary education sector, which is experiencing changing student demographics and an aging workforce, and is working towards greater equity, diversity and inclusion throughout the ecosystem. The postsecondary education sector is also striving to better equip graduates with market-ready skills which are highly sought after in a context of labor shortage.

In today's highly competitive global economy that values sound knowledge, the private, public and not-for-profit sectors are increasingly seeking to anchor their strategic priorities and decisions in scientific evidence. NSERC supports 76% of Canada's top researchers in the natural sciences and engineering (NSE). By playing a convener role, NSERC contributes to the connections between researchers in the NSE with key partners from those sectors. NSERC also fosters international partnerships to help scientists and engineers harness global expertise that can address the most important challenges of our times.

NSERC works closely with the Canadian Institutes for Health Research (CIHR), the Social Sciences and Humanities Research Council (SSHRC) and the Canada Foundation for Innovation (CFI) to advance priorities of the Canada Research Coordinating Committee (CRCC), to ensure that the granting agencies and the CFI are aligned with evolving priorities, objectives and programs for stronger research in Canada. Accordingly, the granting agencies and the CFI recognize the importance of research security in the conduct of research and research training, as well as in research funding opportunities and policies, to contribute to safeguarding Canada’s national security and its open and collaborative research ecosystem.

People are at the heart of NSERC's success as an organization. NSERC nurtures a workforce that is dedicated, talented, agile, and diverse, and strives to embody a modern, healthy, inclusive, and accessible work culture. NSERC is working toward achieving the vision laid out in its long-term strategic plan, NSERC 2030: Discovery, Innovation, Inclusion.