Governance and Finance
For the year ended July 31, 2024 (in thousands of dollars)
In the 2023/24 fiscal year, Perimeter continued full standard operations with both in-person and virtual programming in research, training, and outreach. A full year of programs – including conferences and workshops, student training and internships, and public lectures and outreach events – saw over 2,000 members of the public and scientific community come through Perimeter’s doors.
Research continued with great activity, including a higher-than-average number of conferences and workshops, a full complement of seminars and colloquia, and recruitment activities for student, postdoctoral, and faculty research positions. Perimeter’s world-leading training programs, from PhD, to Perimeter Scholars International (PSI), to undergraduate programs like PSI Start, continued to attract and train talented young people from across Canada and around the world. The Outreach team delivered outstanding programs to teachers, students, and the general public, including exciting public lectures, informative training and professional development for physics educators, and inspiring content for grade school and high school physics students.
All these activities were accomplished in the 2023/24 fiscal year while effectively managing inflationary impacts across the wider economy. The past year saw significant financial activity across various areas of the Institute, much of it towards strategic execution in critical areas. Most notably, Perimeter Institute’s funding was renewed at both the federal and provincial level. The Province of Ontario renewed its support for a further three years of funding, through 2027. Perimeter was also one of the chosen recipients for funding through the Strategic Science Fund, managed by Innovation, Science and Economic Development Canada, a five-year funding stream through 2029.
Advancing our understanding of the universe at the most fundamental level remains Perimeter’s core focus. The Institute continued to invest in the research mandate, with an emphasis on supporting a robust hybrid and in-person environment, led by a world-renowned faculty across nine research fields and home to one of the largest cohorts of theoretical physics postdoctoral researchers in the world. Faculty and postdoctoral researcher recruitment continued at the expected pace. Research expenditures increased by 11 percent compared with 2022/23, due in large part to a prioritization of bringing exceptional postdoctoral recruits to the Institute and additional emphasis on the Visiting Fellow program to bring exceptional international physics talent to Perimeter. This year also saw the recruitment of a new Executive Director for the Institute, which involved significant recruitment costs and time, reflecting the importance of leadership in driving Perimeter’s scientific vision.
The Institute continued to invest in innovative research training programs, such as the PSI master’s program, the PhD program, and the portfolio of undergraduate programs, including PSI Start and PSI Bridge. Each program attracts and trains top scientific talent – increasing expertise, advancing research, and producing job-ready leaders in many fields that drive economic growth in Canada. Expenditures increased by 20 percent compared with the previous year across Perimeter’s training programs. As in the previous year, the increases were driven by inflationary impacts of cost of living for students, particularly in food and accommodation, which are provided to all PSI students by the Institute. In response to inflation, Perimeter has also increased the “top-up” scholarship provided to resident PhD students to ensure that they receive a competitive and sustainable salary. This additional support is designed to help offset the rising cost of living and maintain ’Perimeter’s status as an attractive destination for top-tier students globally.
Perimeter’s world-class educational outreach program has continued to build on both digital and in-person resources for engagement and training. The Outreach team continued to offer educators classroom-ready digital and curriculum-compliant materials as well as online and in-person professional development workshops. EinsteinPlus, Perimeter’s flagship professional development program for educators, was offered in person to Canadian and international teachers. Other outreach programs continued to reach teachers, students, and the general public, from the largest cities to remote and underserved communities, helping to prepare Canadian youth for STEM-based careers and to inform the Canadian public about the value of scientific research. Public lectures brought hundreds of local attendees into the building, and two new YouTube series – Quantum 101 and Cosmology 101 – with Outreach Faculty member Katie Mack reached hundreds of thousands of viewers around the world. Total outreach expenditures in 2023/24 remained flat compared with the previous year. Overall communications spending has been refocused ahead of the coming year, where celebrations of Perimeter’s 25th anniversary will likely lead to increased spending as planning intensifies and early activities for the 2025 year begin. The anniversary provides an opportunity for Perimeter to both celebrate its past achievements and lay the groundwork for future growth.
Indirect research and operating expenditures cover the costs of core support areas, including administration, advancement, information technology, and facilities. Perimeter continues to invest in technology, understanding that hybrid and online environments are a part of the future and allow for greater breadth of audiences and improved access for more people. Indirect support areas faced increasing cost pressures for goods and services, which remain closely monitored and managed by Perimeter. Overall, indirect research and operations expenditures decreased by 6 percent compared with the previous fiscal year. The majority of the decrease was due to vacancies in key roles, particularly in senior leadership in Advancement; however, with these roles now filled, Perimeter expects Advancement operations to return to full capacity and will facilitate growth in this area of strategic importance.
Perimeter continues to receive support from the public sector, the private sector, and research grants. However, recent shifts in Perimeter’s funding landscape, including reduced federal funding through the Strategic Science Fund program and provincial funding renewed at unchanged levels but for a shorter three-year term, rather than the previous five-year commitments, have necessitated a change to the Institute’s strategic financial approach for the coming years. Perimeter has increased its reliance on its endowment fund, drawing more heavily than in previous years to ensure that all existing research activities are maintained at their current levels. Perimeter recognizes the critical importance of preserving the endowment and will continue to attract active and committed Board members and marquee fundraising volunteers, will continue to expand the Institute’s base of visionary private supporters, will source research grants where possible, and will maintain active partnerships with the federal and provincial governments to support ongoing operations and growth.
Perimeter’s financial position remains strong and resilient. Under the guidance and commitment of the Investment Committee, funds remain invested in accordance with Board-approved investment policies and procedures.
A fairly stable economic environment and strategic investment resulted in a positive annual return of 14 percent. This is a testament to Perimeter’s adherence to Board-approved investment policies, which guide the Institute’s asset allocation strategies. By balancing risk and returns, the Investment Committee ensures that the endowment can continue to support ’Perimeter’s activities, even as external funding pressures intensify. However, variabilities are inevitable over time, and Perimeter is in a strong financial position to withstand them, while retaining the flexibility and speed to take advantage of scientific opportunities as they arise, creating major assets for Ontario, and Canada, as a global centre of theoretical research and technology development.
Perimeter Institute exists through cooperative and highly successful public and private partnerships that provide for ongoing operations while safeguarding future opportunities.
The Institute remains committed to advancing world-class research, training, and outreach programs to benefit Canadians and advance humanity’s knowledge. The recruitment of a new Executive Director in the 2023/24 fiscal year represented major action toward the Institute’s ongoing and future strategic goals.
At the end of this fiscal year, Perimeter completed the final year of two-year commitments of $20 million from the federal government and $24 million from the provincial government and began a five-year commitment of $34 million from the federal government and a three-year commitment of $36 million from the provincial government. As Perimeter begins new funding agreements at both levels of government, the Institute will continue to focus towards federal and provincial renewals in coming years. Despite external challenges such as inflation and changes in the funding landscape, Perimeter has demonstrated resilience and foresight in managing its financial resources. With a strong endowment, prudent financial management, and a clear long-term strategy, Perimeter Institute is well equipped to continue its important work in advancing theoretical physics and training the next generation of scientists.
