CIHR Annual Report 2011–12: The Measure of Success

Auditor's Report and Financial Statements

Canadian Institutes of Health Research
Statement of Management Responsibility Including Internal Control over Financial Reporting

Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2012, and all information contained in these statements rests with the management of the Canadian Institutes of Health Research (CIHR). These financial statements have been prepared by management using the Government's accounting policies, which are based on Canadian public sector accounting standards.

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

Management is also responsible for maintaining an effective system of internal control over financial reporting (ICFR) designed to provide reasonable assurance that financial information is reliable, that assets are safeguarded and that transactions are properly authorized and recorded in accordance with the Financial Administration Act and other applicable legislation, regulations, authorities and policies.

Management seeks to ensure the objectivity and integrity of data in its financial statements through careful selection, training, and development of qualified staff; through organizational arrangements that provide appropriate divisions of responsibility; through communication programs aimed at ensuring that regulations, policies, standards and managerial authorities are understood throughout CIHR and through conducting an annual risk-based assessment of the effectiveness of the system of ICFR.

The system of ICFR is designed to mitigate risks to a reasonable level based on an ongoing process to identify key risks, to assess effectiveness of associated key controls, and to make any necessary adjustments.

A risk-based assessment of the system of ICFR for the year ended March 31, 2012, was completed in accordance with the Treasury Board Policy on Internal Control and the results and action plans are summarized in the annex 1.

The effectiveness and adequacy of CIHR's system of internal control is documented by the Chief Financial Officer, who conducts periodic assessments of different areas of CIHR's operations, and reviewed by CIHR's Audit Committee, which oversees management's responsibilities for maintaining adequate control systems and the quality of financial reporting, and which recommends the financial statements to the President of CIHR and its Governing Council.

The Office of the Auditor General of Canada, the independent auditor for the Government of Canada, has expressed an opinion on the fair presentation of the financial statements of CIHR which does not include an audit opinion on the annual assessment of the effectiveness of CIHR's internal controls over financial reporting.

Approved by:

Alain Beaudet, MD, PhD
President

James Roberge, CMA
Chief Financial Officer

Ottawa, Canada
June 26, 2012

Independent Auditor's Report

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

I have audited the accompanying financial statements of the Canadian Institutes of Health Research, which comprise the statement of financial position as at 31 March 2012, and the statement of operations and departmental net financial position, statement of change in departmental net debt and statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with Canadian generally accepted auditing standards. Those standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.

Opinion

In my opinion, the financial statements present fairly, in all material respects, the financial position of the Canadian Institutes of Health Research as at 31 March 2012, and the results of its operations, changes in its net debt, and its cash flows for the year ended in accordance with Canadian public sector accounting standards.

Lissa Lamarche, CA
Principal
for the Auditor General of Canada

26 June 2012
Ottawa, Canada

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

(in thousands of dollars)

2012 2011
Restated
(note 13)

Contractual obligations (note 9)
Contingent liabilities (note 10)

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

Liabilities
Accounts payable and accrued liabilities (note 4) $3,872 $5,207
Vacation pay and compensatory leave 1,544 1,507
Deferred revenue (note 5) 6,357 7,590
Employee future benefits (note 6) 3,285 8,914
Total liabilities 15,058 23,218
Financial assets
Due from the Consolidated Revenue Fund $10,221 $12,789
Accounts receivable and advances (note 7) 554 701
Total financial assets 10,775 13,490
Departmental Net Debt $4,283 $9,728
Non-financial assets
Prepaid expenses $595 $799
Tangible capital assets (note 8) 3,172 3,982
Total non-financial assets 3,767 4,781
Departmental net financial position $(516) $(4,947)

Canadian Institutes of Health Research
Statement of Operations and Departmental Net Financial Position
For the Year Ended March 31

(in thousands of dollars)

2012 2012 2011
Planned Results
(note 2)
Restated
(note 13)

Segmented information (note 12)

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

Expenses
Health Knowledge $448,721 $469,075 $469,206
Health and Health Services Advances 264,453 283,056 288,728
Health Researchers 206,883 181,672 195,769
Health Research Commercialization 46,380 55,984 52,579
Internal Services 31,398 30,685 33,752
Total expenses 997,835 1,020,472 1,040,034
Revenues
Health Knowledge $4,760 $85 $138
Health and Health Services Advances 2,806 14,584 11,197
Health Researchers 2,195 86 79
Health Research Commercialization 492 2 48
Total revenues 10,253 14,757 11,462
Net cost of operations before government funding $987,582 $1,005,715 $1,028,572
Government funding
Net cash provided by Government $1,005,601 $1,025,417
Change in due from the Consolidated Revenue Fund (2,568) (2,917)
Services provided without charge by other government
departments (note 11) 7,113 6,691
Net cost of operations after government funding (4,431) (619)
Departmental net financial position – Beginning of year (4,947) (5,566)
Departmental net financial position – End of year $(516) $(4,947)

Canadian Institutes of Health Research
Statement of Change in Departmental Net Debt
For the Year Ended March 31

(in thousands of dollars)

2012 2011
Restated
(note 13)

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

Net Cost of Operations after government funding $(4,431) $(619)
Change due to tangible capital assets
Acquisition of tangible capital assets 414 1,012
Amortization of tangible capital assets (1,224) (1,025)
Proceeds from disposal of tangible capital assets - (10)
Net loss on disposal of tangible capital assets - (3)
Total change due to tangible capital assets (810) (26)
Change due to prepaid expenses (204) 553
Net decrease in departmental net debt (5,445) (92)
Departmental net debt – Beginning of year 9,728 9,820
Departmental net debt – End of year $4,283 $9,728

Canadian Institutes of Health Research
Statement of Cash Flows
For the Year Ended March 31

(in thousands of dollars)

2012 2011
Restated
(note 13)

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

Operating activities
Net cost of operations before government funding $ 1,005,715 $ 1,028,572
Non-cash items:
Amortization of tangible capital assets (1,224) (1,025)
Loss on disposal of capital asset - (3)
Services provided without charge by other government departments (note 11) (7,113) (6,691)
Variations in Statement of Financial Position:
Increase (decrease) in accounts receivable and advances (147) 10
Increase (decrease) in prepaid expenses (204) 553
Decrease in accounts payable and accrued liabilities 1,335 194
Increase in vacation pay and compensatory leave (37) (32)
Decrease in deferred revenue 1,233 2,724
Decrease in future employee benefits 5,629 113
Cash used in operating activities 1,005,187 1,024,415
Capital activities
Acquisitions of tangible capital assets 414 1,012
Proceeds on disposal of capital assets - (10)
Cash used in capital activities 414 1,002
Net cash provided by Government of Canada $ 1,005,601 $ 1,025,417

Canadian Institutes of Health Research
Notes to The Financial Statements
For the year ended March 31, 2012

1. Authority and Objectives

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

CIHR's objective is to excel, according to international standards of scientific excellence, in the creation of new knowledge, and its translation into improved health, more effective health services and products, and a strengthened Canadian health care system. CIHR achieves these objectives through its strategic outcome of being a world-class health-research enterprise that creates, disseminates and applies new knowledge across all areas of health research. The strategic outcome is based on four program activities. The first program activity is Health Knowledge; these programs aim to support the creation of new knowledge across all areas of health research to improve health and the health system. The second, Health and Health Services Advances, aims to support the creation of new knowledge in strategic priority areas and its translation into improved health and a strengthened health system. The third program activity, Health Researchers, aims to build health research capacity to improve health and the health system by supporting the training and careers of excellent health researchers. The fourth, Health Research Commercialization, aims to support and facilitate the commercialization of health research to improve health and the health system.

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

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

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

2. Summary of Significant Accounting Policies

These financial statements have been prepared using the Government's accounting policies stated below, which are 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:

(a) Parliamentary authorities – CIHR is financed by the Government of Canada through Parliamentary authorities. Financial reporting of authorities provided to CIHR does not parallel financial reporting according to generally accepted accounting principles since authorities are primarily based on cash flow requirements. Consequently, items recognized in the Statement of Operations and Departmental Net Financial Position and the Statement of Financial Position are not necessarily the same as those provided through authorities from Parliament. Note 3 provides a reconciliation between the bases of reporting. The planned results amounts in the Statement of Operations and Departmental Net Financial Position are the amounts reported in the future-oriented financial statements included in the 2011–12 Report on Plans and Priorities.

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

(c) Amounts due from the CRF are the result of timing differences at year end between when a transaction affects authorities and when it is processed through the CRF. Amounts due from the CRF represent the net amount of cash that CIHR is entitled to draw from the CRF without further authorities to discharge its liabilities.

(d) Revenues

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

(f) Refunds of previous years' expenses – These amounts include the return of grants and awards funds to CIHR in the current fiscal year for expenses incurred in previous fiscal years due to cancellations; refunds of previous years' expenses related to goods or services; and adjustments of previous years' accounts payable. These refunds and adjustments are presented against the related expenses in the financial statements but are recorded as revenue in accordance with accounting policies and therefore are excluded when determining current year authorities used.

(g) Employee future benefits

(h) Accounts receivable and advances are stated at the lower of cost and net recoverable value. A valuation allowance is recorded for receivables and advances where recovery is considered uncertain.

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

(j) Tangible capital assets – All tangible capital assets having an individual initial cost of $5,000 or more are recorded at their acquisition cost.

Amortization of tangible capital assets is done on a straight-line basis over the estimated useful life of the capital asset as follows:

Asset class Amortization period
Informatics hardware 3–5 years
Informatics software 3–10 years
Office equipment 10 years
Vehicles 5 years

Assets under construction are recorded in the applicable capital asset class in the year that they become available for use and are not amortized until they become available for use.

(k) Measurement uncertainty – The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses reported in the financial statements. At the time of preparation of these statements, management believes the estimates and assumptions to be reasonable. The most significant items where estimates are used are contingent liabilities, the liability for employee future benefits and the useful life of tangible capital assets. Actual results could significantly differ from those estimated. Management's estimates are reviewed periodically and, as adjustments become necessary, they are recorded in the financial statements in the year they become known.

3. Parliamentary Authorities

CIHR receives most of its funding through annual Parliamentary authorities. Items recognized in the Statement of Operations and Departmental Net Financial Position and the Statement of Financial Position in one year may be funded through Parliamentary authorities in prior, current or future years. Accordingly, CIHR has different net results of operations for the year on a government funding basis than on an accrual accounting basis. The differences are reconciled in the following tables:

(a) Reconciliation of net cost of operations to current year authorities used

(in thousands of dollars)

2012 2011
Restated
(note 13)
Net cost of operations before government funding $1,005,715 $1,028,572
Adjustments for items affecting net cost of operations
but not affecting authorities:
Amortization of tangible capital assets (1,224) (1,025)
Loss on disposal of capital assets - (3)
Services provided without charge by other government
departments
(7,113) (6,691)
Increase in vacation pay and compensatory leave (37) (32)
Decrease in employee future benefits 5,629 113
Refunds of previous years' grants and awards 5,825 4,203
Other adjustments 85 169
3,165 (3,266)
Adjustments for items not affecting net cost of operations
but affecting authorities:
Acquisitions of tangible capital assets 414 1,012
Increase (Decrease) in prepaid expenses (204) 553
210 1,565
Current year authorities used $1,009,090 $1,026,871

(b) Authorities provided and used

(in thousands of dollars)

2012 2011
Restated
(note 13)
Authorities Provided:
Vote 20 - Operating expenditures $55,908 $54,255
Vote 25 - Grants 952,647 969,215
Statutory amounts 6,662 6,453
Less:
Authorities available for future years (2,117) -
Frozen allotments (2,093) -
Lapsed: Operating - (666)
Lapsed: Grants (1,917) (2,386)
Current year authorities used $1,009,090 $1,026,871

4. Accounts Payable and Accrued Liabilities

The following table presents details of CIHR's accounts payable and accrued liabilities:

(in thousands of dollars)

2012 2011
Restated
(note 13)
Accounts payable - Other government departments and agencies $1,493 $1,732
Accounts payable - External parties 914 1,298
Total accounts payable 2,407 3,030
Accrued liabilities 1,465 2,177
Total accounts payable and accrued liabilities $3,872 $5,207

5. Deferred Revenue

Deferred revenue represents the balance at year end of unearned revenues stemming from amounts received from external parties that are restricted in order to fund the expenditures related to specific research projects and stemming from amounts received for fees prior to services being performed. Revenue is recognized in the period that these expenditures are incurred or in which the service is performed. Details of the transactions related to this account are as follows:

(in thousands of dollars)

2012 2011
Restated
(note 13)
Opening balance $7,590 $10,314
Amounts received 13,524 8,738
Revenue recognized (14,757) (11,462)
Closing balance $6,357 $7,590

6. Employee Future Benefits

(a) Pension benefits:

CIHR's employees participate in the Public Service Pension Plan, which is sponsored and administered by the Government. Pension benefits accrue up to a maximum period of 35 years at a rate of 2% per year of pensionable service, times the average of the best five consecutive years of earnings. The benefits are integrated with the Canada/Quebec Pension Plans benefits and they are indexed to inflation.

Both the employees and CIHR contribute to the cost of the Plan. The 2011–12 expense (in thousands of dollars) amounts to $4,790 ($4,530 in 2010–11) which represents approximately 1.8 times (1.9 times in 2010–11) the contributions by employees.

CIHR's responsibility with regard to the Plan is limited to its contributions. Actuarial surpluses or deficiencies are recognized in the financial statements of the Government of Canada, as the Plan's sponsor.

(b) Severance benefits:

CIHR provides severance benefits to its employees based on eligibility, years of service and salary at termination of employment. These severance benefits are not pre-funded. Benefits will be paid from future authorities. Information about the severance benefits, estimated as at the date of these statements, is as follows:

As part of collective agreement negotiations with certain employee groups, and changes to conditions of employment of CIHR executives and non-represented employees, the accumulation of severance benefits under the employee severance pay program ceased for these employees commencing 2011–12. Employees subject to these changes have been given the option to be immediately paid in full or partial value of benefits earned to date or collect the full remaining value of benefits on termination from the public service. These changes have been reflected in the calculation of the outstanding severance benefit obligation.

(in thousands of dollars)

2012 2011
Restated
(note 13)
Accrued benefit obligation – Beginning of year $8,914 $9,027
Expense for the year (3,109) 233
Benefits paid during the year (2,520) (346)
Accrued benefit obligation – End of year $3,285 $8,914

CIHR reduced its severance liability in 2011–12 by $3,109,000 as a result of changes made to its severance benefit entitlements under its conditions of employment. This reduction was required to better reflect CIHR's current severance liability given these changes. The use of the government-wide actuarial assumptions for calculating the severance liability was not reflective anymore of CIHR's severance liability.

Severance payments in 2012–13 amount to $1,146,000.

7. Accounts Receivable and Advances

The following table presents details of CIHR's accounts receivable and advances balances:

(in thousands of dollars)

2012 2011
Restated
(note 13)
Receivables - Other government departments and agencies $124 $266
Receivables - External parties 232 261
Accountable advances 203 186
Subtotal 559 713
Allowance for doubtful accounts on receivables from external parties (5) (12)
Net accounts receivable $554 $701

8. Tangible Capital Assets

(in thousands of dollars)

Cost Accumulated amortization Net Book Value
Capital
asset
class
Opening
balance
Acquisitions Disposals
and
write-offs
Closing balance Opening balance Amortization Disposals
and
Closing
balance
2012 2011
Restated
(note 13)
Informatics hardware $2,883 $20 $- $2,903 $2,289 $237 $- $2,526 $377 $594
Informatics software 11,079 394 - 11,473 8,011 932 - 8,943 2,530 3,068
Office equipment 570 - - 570 274 51 - 325 245 296
Vehicles 28 - - 28 4 4 - 8 20 24
Total $14,560 $414 $- $14,974 $10,578 $1,224 $- $11,802 $ 3,172 $ 3,982

Amortization expense (in thousands) for the year ended March 31, 2012 is $1,224 (2011 – $1,025).

9. Contractual Obligations

The nature of CIHR's activities can result in some large multi-year contracts and obligations whereby CIHR will be obligated to make some future payments in order to carry out its grants and awards payment programs or when the services/goods are received. Significant contractual obligations that can be reasonably estimated are summarized as follows:

(in thousands of dollars)

Contractual Obligations 2013 2014 2015 2016 2017 and thereafter Total
Grants $ 806,250 $ 606,851 $ 408,187 $ 225,420 $ 147,242 $ 2,193,950
Operating expenditures 2,879 133 34 1 - 3,047
Total $ 809,129 $ 606,984 $ 408,221 $ 225,421 $ 147,242 $ 2,196,997

10. Contingent Liabilities

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

CIHR may be subject to other claims in the normal course of business. In management's view, these claims do not have any material impact on the financial statements and consequently, no provision has been made for these claims.

11. Related Party Transactions

CIHR is related as a result of common ownership to all Government departments, agencies and Crown Corporations. CIHR enters into transactions with these entities in the normal course of business and on normal trade terms. During the year, CIHR received common services which were obtained without charge from other Government departments as disclosed below.

(a) Common services provided without charge by other government departments

During the year, CIHR received services without charge from certain common service organizations, related to accommodation and the employer's contribution to the health and dental insurance plans. These services provided without charge have been recorded in CIHR's Statement of Operations and Departmental Net Financial Position as follows:

(in thousands of dollars)

2012 2011
Restated
(note 13)
Accommodation provided by Public Works and Government Services Canada $3,605 $3,450
Employer's contribution to the health and dental insurance plans provided by Treasury Board Secretariat 3,508 3,241
Total $7,113 $6,691

The Government has centralized some of its administrative activities for efficiency, cost-effectiveness purposes and economic delivery of programs to the public. As a result, the Government uses central agencies and common service organizations so that one department performs services for all other departments and agencies without charge. The costs of these services, such as the payroll and cheque issuance services provided by Public Works Government Services Canada and audit services provided by the Office of the Auditor General of Canada are not included in CIHR's Statement of Operations and Departmental Net Financial Position.

(b) Administration of CIHR funds by other government departments

Other federal departments and agencies administer funds on behalf of CIHR to issue grants, awards and related payments. Other federal departments and agencies are forecasted to administer $98,472,582 in funds for grants and awards ($95,322,985 in 2010–11), primarily pertaining to the Canada Research Chairs program. These expenses are reflected in CIHR's Statement of Operations and Departmental Net Financial Position.

12. Segmented Information

Presentation by segment is based on CIHR's program activity architecture. The presentation by segment is based on the same accounting policies as described in the Summary of significant accounting policies in note 2. The following table presents the expenses incurred and revenues generated for the main program activities, by major object of expense and by major type of revenue. The segment results for the period are as follows:

(in thousands of dollars)

2012 2011
Health Knowledge Health and Health Services Advances Health Researchers Health Research Commercialization Internal Services Total Total
Restated
(note 13)
Transfer payments
Grants and Awards $ 459,823 $ 270,316 $ 179,807 $ 55,328 $ - $ 965,274 $ 978,291
Refunds of previous years' grants and
awards
(3,011) (1,185) (1,561) (68) - (5,825) (4,203)
Total transfer payments 456,812 269,131 178,246 55,260 - 959,449 974,088
Operating Expenses
Salaries and employee benefits 8,800 11,189 3,091 634 22,057 45,771 47,612
Professional and special services 509 696 50 4 2,370 3,629 6,692
Accomodation 750 845 198 37 1,774 3,604 3,450
Travel 1,923 935 72 45 370 3,345 3,338
Other 232 128 15 4 1,537 1,916 1,363
Amortization of tangible capital assets - - - - 1,224 1,224 1,026
Communication 42 119 - - 897 1,058 1,191
Furniture, equipment and software 7 13 - - 456 476 1,274
Total operating expenses 12,263 13,925 3,426 724 30,685 61,023 65,946
Total expenses 469,075 283,056 181,672 55,984 30,685 1,020,472 1,040,034
Revenues
Donations for health research 85 14,584 86 - - 14,755 11,462
Endowments for health research - - - 2 - 2 -
Total revenues 85 14,584 86 2 - 14,757 11,462
Net cost from continuing operations $ 468,990 $ 268,472 $ 181,586 $ 55,982 $ 30,685 $ 1,005,715 $ 1,028,572

13. Accounting changes

During 2011, amendments were made to Treasury Board Accounting Standard 1.2 – Departmental and Agency Financial Statements to improve financial reporting by government departments and agencies. The amendments are effective for financial reporting of fiscal years ending March 31, 2012, and later. The significant changes to CIHR's financial statements are described below. These changes have been applied retroactively, and comparative information for 2010–11 has been restated.

Net debt (calculated as liabilities less financial assets) is now presented in the Statement of Financial Position. Accompanying this change, CIHR now presents a Statement of Change in Net Debt and no longer presents a Statement of Equity.

Government funding, as well as the credit related to services provided without charge by the other government departments, are now recognized in the Statement of Operations and Departmental Net Financial Position below "Net cost of operations before government funding." In previous years, CIHR recognized these transactions directly in the Statement of Equity of Canada. The effect of this change was to decrease the net cost of operations after government funding by $1,010,146 for 2012 ($1,029,191 for 2011).

14. Comparative information

Comparative figures have been reclassified to conform to the current year's presentation.

Footnotes

Footnote 1

Summary of the Assessment of Effectiveness of the Systems of Internal Control over Financial Reporting and the Action Plan of the Canadian Institutes of Health Research for the Fiscal Year 2011–12 (Unaudited).

1

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