Laurentian was treading water financially until it started construction projects, auditor general says
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
There's actually no such thing as vegetables. Here's why you should eat them anyway
The rumours are true: Vegetables aren't real — that is, in botany, anyway. While the term fruit is recognized botanically as anything that contains a seed or seeds, vegetable is actually a broad umbrella term.
'It looked so legit': Ontario man pays $7,700 for luxury villa found on Booking.com, but the listing was fake
An Ontario man says he paid more than $7,700 for a luxury villa he found on a popular travel website -- but the listing was fake.
The Met Gala was in full bloom with Zendaya, Jennifer Lopez, Mindy Kaling among the standout stars
The Met Gala and its fashionista A-listers on Monday included Jennifer Lopez, Zendaya and a parade of others in a swirl of flora and fauna looks on a green-tinged carpet lined by live foliage.
Israeli forces seize Rafah border crossing in Gaza, putting ceasefire talks on knife's edge
Israeli tanks seized control of Gaza's vital Rafah border crossing on Tuesday as Israel brushed off urgent warnings from close allies and moved into the southern city even as cease-fire negotiations with Hamas remained on a knife's edge.
Canadian cadets rock mullets and place second at U.S. military competition
Sporting mullets, Canadian Armed Forces officer cadets placed second in an annual military skills competition in the U.S.
Highlights from the 2024 Met Gala exhibit: Sleeping Beauty would wake up for these gowns
Sure, she was a royal princess and all. But there’s no way Sleeping Beauty — either before or after her nap — ever had quite the fabulous wardrobe that’s been assembled at the Metropolitan Museum of Art.
Noelia Voigt resigns as Miss USA, citing her mental health
Noelia Voigt, who was crowned Miss USA in November 2023, has announced she is resigning from her role, saying the decision is in the best interest of her mental health.
Putin begins his fifth term as president, more in control of Russia than ever
Vladimir Putin began his fifth term Tuesday as Russian leader at a glittering Kremlin inauguration, setting out on another six years in office after destroying his political opponents, launching a devastating war in Ukraine and concentrating all power in his hands.
Winnipeg man admits to killing four women, argues he's not criminally responsible
Defence lawyers of Jeremy Skibicki have admitted in court the accused killed four Indigenous women, but argues he is not criminally responsible for the deaths by way of mental disorder – this latest development has triggered a judge-alone trial rather than a jury trial.