Ontario AG audits four universities' financial management, here is what she found
Following the Laurentian University financial crisis, the Ontario Auditor General conducted audits on the financial management of the province's universities and released her findings Wednesday in her 10th annual report.
In the report – which includes 15 different value-for-money audits -- Bonnie Lysyk reviewed the financial operations at four of Ontario’s small to medium-sized universities in the wake of Laurentian University's unprecedented decision to file for creditor protection last year. LU emerged from insolvency Monday, two days ahead of its deadline.
Lysyk's audit finds all four universities audited – Nipissing University, Algoma University, Ontario Tech and University of Windsor -- are currently operating in a financially-stable manner.
The audit found Nipissing and Algoma had accumulated a surplus of funds and were financially stable at the time of the audit.
However, out of the four universities audited, only Algoma had a consistent surplus from 2016/17 to 2020/21.
- Download our app to get alerts sent to your device
- Get the latest newsletter sent right to your inbox
Nipissing and Algoma established debt policies in 2021, but limits would have been exceeded prior to 2019/20 if the new debt policies were applied retroactively.
The audit found neither Nipissing nor Algoma reviewed or monitored the profitability of the ancillary services they provide.
"(It) also determined the Ministry of Colleges and Universities does not have a clear strategy or long-term vision for the post-secondary sector," the Office of the Auditor General of Ontario said in a news release Wednesday.
"Ontario’s domestic tuition reduction and freeze and relatively low per-student funding have necessitated an increased financial dependence on international students’ tuition fees."
The report summary said in 2021/22, three of the four selected universities (Algoma, Nipissing, and Windsor) relied significantly on one country (India) for their international students.
ALGOMA UNIVERSITY
The Sault Ste. Marie-based insitution's revenue was largely driven by international students from India who enrolled at its Brampton campus, the report summary said.
"As of 2021/22, the Brampton campus generated 65 per cent of the university’s revenue and 51 per cent of the university’s total enrolment; 90 per cent of Brampton’s enrolment are international students," it said.
Algoma University President and Vice-Chancellor Asima Vezina said all post-secondary institutions are focussing on the same thing.
"We’re just entering into a new strategic planning process right now which will guide the university into the next three years," Vezina said.
NIPISSING UNIVERSITY
Nipissing experienced deficits in four of five fiscal years from the 2016/17 school year to the 2020/21 school year, causing it to draw down its net assets by $9.4 million.
The report found Nipissing was losing money overall on its academic programming prior to the pandemic and had not adjusted its program offerings.The school also has $34.7 million in debt from various construction projects.
"We believe strongly in the liberal arts institution and the entire board remains committed to that," said Nipissing University President and Vice-Chancellor Kevin Wamsley.
Nipissing relies primarrily on domestic tuition and government grants, with 99 per cent of its student population local.
"There are some challenges in the sector and Ontario, like other provinces, are trying to establish a sustainable university publicly-funded model," Wamsley said.
"We’re aware and the audit took place at the end of 2021 fiscal. So we’ve had a year and a half since then to work on a number of projects since then to support our revenues."
ONTARIO TECH UNIVERSITY
The Oshawa-based school had surpluses four of the last five years due in part to an increase in international student enrolment from various countries, the report summary said.
"As of March 31, 2021, Ontario Tech’s debt totalled $188 million. Ontario Tech did not always assess the financial feasibility of major capital projects before proceeding with them," the summary said.
UNIVERSITY OF WINDSOR
"Despite having the third-highest debt-per-student ratio among 19 Ontario universities, there was no policy in place limiting external financing. At the end of 2020/21, the university had $234.3 million in debt, primarily comprising debentures maturing in 2043 or after," the report summary said.
"In 2020/21, 60 per cent of international students at the university were from India and 12 per cent were from China. Over-reliance on a few geographic regions increases the risk that external factors, such as a global economic downturn or foreign policy shift, could significantly impact a university’s financial health."
Each university surveyed cooperated fully, was open for discussion and receptive to all recommendations made, the report said.
The audit includes 21 recommendations for improvement and said if issues are left unaddressed, weaknesses in the university's financial management practices could put the future of sustainability of the schools at risk.
Read the summary report here.
CTVNews.ca Top Stories
NEW Toxic forever chemicals in drinking water: Is Canada doing enough?
As the United States sets its first national limits on toxic forever chemicals in drinking water, researchers say Canada is lagging when it comes to regulations.
Why drivers in Eastern Canada could see big gas price spikes, and other Canadians won't
Drivers in Eastern Canada face a big increase in gas prices because of various factors, especially the higher cost of the summer blend, industry analysts say.
How to avoid the trap of becoming 'house poor'
The journey to home ownership can be exciting, but personal finance columnist Christopher Liew warns about the trappings of becoming 'house poor' -- where an overwhelming portion of your income is devoured by housing costs. Liew offers some practical strategies to maintain better financial health while owning a home.
'A living nightmare': Winnipeg woman sentenced following campaign of harassment against man after online date
A Winnipeg woman was sentenced to house arrest after a single date with a man she met online culminated in her harassing him for years, and spurred false allegations which resulted in the innocent man being arrested three times.
Arrest made, manslaughter charge pending in 2022 death of Calgary toddler
Calgary police have arrested a man and a charge is pending in connection with the death of a toddler in 2022.
When new leaders took over in ancient Maya, they didn't just bury the former royals. They burned their bodies in public
New archeological investigations in Guatemala reveal that the ancient Maya people had a ritual of burning royal human remains as a public display of political regime change.
Where did the gold go? Crime expert weighs in on unfolding Pearson airport heist investigation
Almost 7,000 bars of pure gold were stolen from Pearson International Airport exactly one year ago during an elaborate heist, but so far only a tiny fraction of that stolen loot has been found.
Some customers steaming after McDonald's ends free hot drink sticker program
It took years for Vinnie Deluca to collect more than 400 cards worth of free McDonald's McCafe coffee, a collection that now has "zero value" after the company discontinued the program.
Prince William returns to public duties after wife Kate's cancer revelation
Prince William will return to public duties on Thursday for the first time since his wife Kate revealed she was undergoing preventative chemotherapy for cancer.