ON Auditor General releases preliminary report on Laurentian’s insolvency

Ontario Auditor General Bonnie Lysyk has released a preliminary report on the causes behind Laurentian University’s insolvency. The report found that Laurentian’s problems date back over a decade and grew with “poor management of its financial affairs,” capital expansions from 2012 to 2020, and growth in both the size and costs associated with Laurentian’s senior administration. The auditor general also stated that Laurentian’s choice to go through the Companies’ Creditors Arrangement Act (CCAA) could have been avoided with earlier, transparent work with Ministry staff, and was not appropriate for the situation. Ultimately, the Globe and Mail reports, the decision to pursue creditor protection led to nearly 200 job losses, millions in added costs, and damage to Laurentian’s reputation. A future report will include recommendations to increase university financial oversight. Report (PDF)| Globe and Mail| CBC| CAUT| OCUFA Note: Archived stories may contain dead links or be missing source links.

Globe and Mail | Report (PDF) | CAUT