Laurentian was treading water financially until it started construction projects, auditor general says
![Laurentian University Laurentian University in Sudbury, Ontario. (Alana Everson/CTV News)](/content/dam/ctvnews/en/images/2020/7/29/laurentian-university-1-5044022-1653945243944.jpg)
Laurentian University was able to keep itself afloat until it began major building projects, Auditor General Bonnie Lysyk said Wednesday.
Lysyk is conducting a value-for-money audit of the insolvent university. While her work has been slowed by a dispute over access to confidential documents, she provided an overview of LU's finances between 2012 and 2020. In the last five years, she said the school has received an average of $85.9 million in funding each year from the province.
"Laurentian generated a net loss of $11.9 million in aggregate between 2012/13 and 2019/20," Lysyk wrote. "During this time, its debt ratio increased and approached the ministry’s benchmark maximum debt ratio of 35 per cent."
By April 2016, for every dollar it had in debt, LU only had 67 cents to pay them off.
"Laurentian was historically able to manage its cash flows because the university did not have a significant number of capital projects under active development and its cash flows from operating activities tended to break even over the last decade," Lysyk wrote.
"However … between 2014/15 and 2018/19 the university completed several capital projects which put significant strain on the university’s cash flow."
In that time, Laurentian opened the $45 million school of architecture, and announced a $63 million capital renewal plan. Officials at the university said they were able to manage until the COVID-19 pandemic hit in 2020, leading to a drastic reduction in fees from international students the school had been relying on.
The university declared insolvency Feb. 1 and is undergoing restructuring under the Companies' Creditors Arrangement Act (CCAA). That process has been costly, the auditor said.
"Laurentian has spent approximately $9.86 million from Jan. 30, 2021, to Aug. 13, 2021 on restructuring costs," Lysyk wrote.
"These are costs for services retained by Laurentian to conclude its CCAA proceedings. Including projections to Feb. 4, 2022, Laurentian is estimated to spend a total of $19.84 million on restructuring costs between Jan. 30, 2021 and Feb. 4, 2022."
CTVNews.ca Top Stories
![](https://www.ctvnews.ca/polopoly_fs/1.6967586.1721249164!/httpImage/image.jpg_gen/derivatives/landscape_800/image.jpg)
Trudeau cabinet to meet Friday as speculation around a shuffle swirls
Prime Minister Justin Trudeau's cabinet is expected to meet on Friday, CTV News has learned. The agenda sets aside 30 minutes for ministers to meet virtually Friday morning, to talk about 'appointments.' The meeting comes amid speculation around the prime minister shaking up his inner circle.
Poilievre vows to fire envoy as Canada buys a $9M condo for diplomat in NYC
Conservative Leader Pierre Poilievre is promising to fire Canada’s consul general in New York City if the Tories wins the next federal election.
'I feel like he did not die in vain': Family responds to report on tortured B.C. boy's death
The heartbreak over the death of an Indigenous 11-year-old Fraser Valley boy, tortured and then ultimately killed by his foster parents, was felt by all who knew him.
Rare photos reveal uncontacted tribe in Peruvian Amazon as loggers move in
Rare images of the Mashco Piro, an uncontacted Indigenous tribe in the remote Peruvian Amazon, were published on Tuesday by Survival International,
Here's who will take the podium today at the Republican National Convention
This year's Republican National Convention continued Wednesday with a packed list of speakers including vice presidential candidate Sen. JD Vance, Donald Trump Jr. and Texas Gov. Greg Abbott.
In ethics hearing about Liberal minister, business exec admits he lied to a reporter
The chief witness in a parliamentary probe said Wednesday that he lied to a reporter when asked about ethics allegations against a federal minister.
'Tragic trend' of fatal crashes prompts plea from B.C. Highway Patrol
Mounties who patrol B.C.'s highways are urging drivers in the province to slow down amid a 'tragic trend' of recent, fatal crashes.
Trump shooter requested Saturday off from work and told colleagues he'd be back at work Sunday, officials say
The shooter who attempted to assassinate former U.S. president Donald Trump on Saturday normally would have been at work that day, but he told his boss he needed that the day off because he had 'something to do,' according to multiple law enforcement officials.
U.S. eases new border rules for dogs from Canada as Liberals try to secure exemption
Health Minister Mark Holland says he's trying to convince U.S. authorities that Canadian dogs should be allowed to cross the border without restrictions.