Science North struggling with $10M in cost overruns, poor planning, auditor says
Poor planning and project management led to a $10 million increase in Science North’s Go Deeper project, Ontario’s acting auditor general says.
Nick Stavropoulos said Wednesday in his report that even with reduced scope, the now-$15 million project is still coming in far over-budget. Initially expected to open this year, Go Deeper won’t open until sometime in 2024.
“We found that the cost overrun and delay were caused by poor planning and ineffective project management,” Stavropoulos wrote.
“For example, no reliable third-party estimate was completed during the planning phase to assess the reasonableness of the cost projections. A more reliable cost estimate would have been produced if a consultant with an engineering and construction background had been engaged during the planning phase.”
While pointing the finger at the planning process, he said the budget increases were largely due to rising excavation and construction costs.
“The project had also run into significant delays,” Stavropoulos wrote.
“In 2019 Science North proceeded with the project, setting an initial completion date of February 2023. At the time of our audit, the project was expected to be completed by winter 2024. The delay was mostly due to the COVID-19 pandemic, the City of Greater Sudbury identifying additional requirements for site remediation, which delayed municipal permit approvals, and a lack of available funding.”
Currently, Science North has paused "key elements of the project," the report said, because of a lack of funds and are again reviewing it to reduce the scope and cut costs further.
Poor planning and project management led to a $10 million increase in Science North’s Go Deeper project, Ontario’s acting auditor general says. (File)
In addition, the centre’s plan to expand to Thunder Bay and Kenora is estimated to cost more than $90 million, but a cost-benefit analysis hasn’t been completed.
“Science North sought board approval for this expansion without the benefit of a business case that would include a cost/benefit analysis and assessment of alternative options,” the report said.
“At the time of our audit, Science North had received only conditional board support for the expansion and had not yet sought funding for the expansion from any level of government or from the private sector.”
Science North estimates that operating budgets for the two new science centres would be $5.5 million and asked the province to cover $4 million.
“Centre management projected that self-generated revenue would cover the remaining $1.5 million,” the report said.
“The ministry had not assessed the feasibility and financial sustainability of the expansion to Thunder Bay and Kenora.”
IMAX ATTENDANCE PLUNGED
Attendance before the COVID-19 pandemic was down by eight per cent, driven largely by plunging attendance at the IMAX theatre, which had declined by 26 per cent from 2015-2019.
But it’s not all bad news: attendance has recovered since the pandemic ended.
“In 2022/23, attendance has increased by three per cent from pre-pandemic levels,” the report said.
“Science North projected attendance to remain at this level in the upcoming three fiscal years.”
The average age of exhibits both at Science North and Dynamic Earth is 11 years and none have changed significantly since 2017.
The report also recommended the centre change its accounting practices so costs are allocated to specific lines of business.
“Without allocating these costs, it is difficult to assess which lines of business are profitable and which need to manage costs more effectively,” the report said.
In its response to the AG report, Science North said it agrees with the recommendations.
- Download our app to get local alerts on your device
- Get the latest local updates right to your inbox
“In leveraging new technology, Science North will improve its current process for allocating appropriate costs to lines of business where able and will continue to seek and analyze new opportunities for self-generated revenue,” the centre said in its response.
“The organization will take additional measures to ensure visitor feedback informs all major exhibits and their renewals, while further leveraging memberships with Canadian and international science centre associations to streamline research and best practices.”
Read the full report, and Science North’s responses, here.
CTVNews.ca Top Stories
Canadian former Olympic snowboarder wanted in Ontario double homicide: DOJ
A Canadian former Olympic snowboarder who is suspected of being the leader of a transnational drug trafficking group that operated in four countries is wanted for allegedly orchestrating the murder of an 'innocent' couple in Ontario in 2023, authorities say.
Ontario school board trustees under fire for $100K religious art purchase on Italy trip
Trustees with an Ontario school board are responding to criticism over a $45,000 trip to Italy, where they purchased more than $100,000 worth of religious statues.
A photographer snorkeled for hours to take this picture
Shane Gross, a Canadian marine conservation photojournalist, has won the title of Wildlife Photographer of the Year.
Tobacco giants would pay out $32.5 billion to provinces, smokers in proposed deal
Three tobacco giants are proposing to pay close to $25 billion to provinces and territories and more than $4 billion to some 100,000 Quebec smokers and their loved ones as part of a corporate restructuring process triggered by a long-running legal battle.
More Trudeau cabinet ministers not running for re-election, sources say shuffle expected soon
Federal cabinet ministers Filomena Tassi, Carla Qualtrough and Dan Vandal announced Thursday they will not run for re-election. Senior government sources tell CTV News at least one other, Marie-Claude Bibeau, doesn't plan to run again, setting the stage for Justin Trudeau to shuffle his cabinet in the coming weeks.
Robert Pickton's handwritten book seized after his death in hopes of uncovering new evidence
A handwritten book was seized from B.C. serial killer Robert Pickton's prison cell following his death earlier this year, raising hopes of uncovering new evidence in a series of unprosecuted murders.
Former members of One Direction say they're 'completely devastated' by Liam Payne's death
The former members of English boy band One Direction reacted publicly to the sudden death of their bandmate, Liam Payne, for the first time on Thursday, saying in a joint statement that they're 'completely devastated.'
Israel says it has killed top Hamas leader Yayha Sinwar in Gaza
Israeli forces in Gaza killed top Hamas leader Yahya Sinwar, a chief architect of last year's attack on Israel that sparked the war, the military said Thursday. Troops appeared to have run across him unknowingly in a battle, only to discover afterwards that a body in the rubble was Israel's most wanted man.
Indian government employee charged in foiled murder-for-hire plot in New York City
The U.S. Justice Department announced criminal charges Thursday against an Indian government employee in connection with a foiled plot to kill a Sikh separatist leader living in New York City.