Ontario's auditor general says Laurentian lacks transparency

Ontario's auditor general said Sudbury's Laurentian University has been the least transparent institution she has dealt with during her time in that role.

On April  28 the Standing Committee on Public Accounts unanimously passed a motion requesting that the Office of the Auditor General conduct a value-for-money audit on Laurentian's operations from 2010 to 2020. 

That decision followed the university's insolvency in February, and cuts in April that eliminated more than 30 programs to reduce its operating expenses. More than 100 faculty and staff members were also terminated.

When she presented her annual report Wednesday, Auditor General Bonnie Lysyk said it has been a frustrating experience dealing with the university.

"We started the audit earlier in the year and it was moving slowly, but it was moving," she told the CBC. 

"And then at some point there was a decision by Laurentian not to provide us privileged information."

Lysyk said her office was restricted not only from privileged information between Laurentian's lawyers and the institution, but non-privileged information as well.

"So for instance, if we needed to see emails, they had their legal counsel going through all the emails," she said. "If we wanted to talk to people, there was instruction in how they would talk to us."

She previously said Laurentian "created a culture of fear" about talking to her office.

Lysyk said Laurentian's response to her office was "the first time we've encountered anything like this."

She said other auditees, which have included government ministries and the broader public sector, including other universities, have been very transparent with her office.

In early October Lysyk filed an application to the courts to gain greater access to Laurentian's documents.

A court hearing is scheduled for Monday, Dec. 6 to determine whether Lysyk is entitled to access to privileged information shared between the university and its lawyers.

From what she has been able to access so far at Laurentian, the auditor general found that the university was on fairly sound financial footing until 2014 when the new $45 million school of architecture and several other new buildings on campus put significant strain on the university's cash flow."

Lysyk also reported that Laurentian spent $9.86 million on its restructuring plan between January and August and the total bill is expected to be close to $20 million. 

Laurentian responds

In an email to CBC News, Laurentian said it has been cooperating with the auditor general's audit.

"The university has authorized and encouraged all staff to participate in interviews with the auditor general," the email said.

"We have also granted her office direct access to our entire financial database, enrolment system, as well as all requested, non-privileged documents. "

But Lysyk said if Laurentian wanted to cooperate with her office it could waive privilege and provide their information "just like every auditee has historically done in Ontario."

She added Laurentian has been selective with the information it has provided so far.

"Sometimes we get material and things are pulled and we don't know what's missing," she said.

"And so it's been a lot of extra work. So it is a situation that I can honestly say we haven't encountered as an office before."