Algoma University's financial health has had its ups and downs over the last few years.
The university's finances were put under the microscope in 2022 when the province's Office of the Auditor General (OAG) performed a comprehensive performance audit.
Now two years later, a review of the steps taken by the university since that audit shows some successes, with many areas still in need of improvement.
Algoma U’s financial performance was evaluated alongside Nipissing University, Ontario Tech University and the University of Windsor. Some insights from the Auditor General were also directed at Ontario's Ministry of Colleges and Universities.
Of those four universities, Algoma U is the only one able to boast consistent annual surpluses over five fiscal years, from 2016 to 2021.
Although Algoma U had overall surpluses in those years, an analysis of revenues and expenses for 2022 to 2023 showed its ancillary services were unprofitable, with $1.3 million of those losses generated by its varsity operations.
In its report, the OAG noted a plan by the university to offset that loss would not be enough to close the gap.
"The university was also targeting to increase varsity revenue by $100,000 through fundraising, however, this increase would not be enough to cover the $1.3-million deficit incurred in 2022/23 from varsity," said the OAG in its report.
An analysis also showed 20 per cent of programs at Algoma U were operating at a loss. Music, Visual Arts and Anishnaabemowin were among the programs that were losing money.
"In early 2023, the university contracted a third-party consulting firm to provide market research/analysis to review existing programs as well as determine the feasibility of introducing new programs, courses or curricula, as determined by the university from time to time," said the OAG in its report.
The 2022 OAG audit also recommended that Algoma U reduce its Board of Governors from 18 member to 15, reduce the number of committees and extend the terms of board members. In the update, OAG noted that the university was resisting many of those recommended changes.
"A risk to having a large board is the likelihood that an executive (or other) committee becomes a 'board within a board,' where decisions are made in the committee and are brought to a board for ratification only, rather than inclusive review, discussion and decision," the OAG said in the report.
The university told the OAG it would not reduce the number of people sitting on its board because "the Governance Committee determined that the internal member perspectives were critical to the bi-cameral model of governance and special mission of the university."
The number of board committees and sub-committees was reduced from seven to five since the 2022 audit but term limits were not increased, as recommended.
Through its manager of communications Mo Kahlout, Algoma U declined an interview request to discuss the findings in detail.
"Algoma University remains committed to the recommendations outlined by the Auditor General of Ontario and values the Auditor General’s guidance in strengthening our institution. Since the 2022 Performance Audit report, Algoma University has made significant progress, and we are pleased that the Auditor General has acknowledged the University’s efforts," Kahlout said by email.
"Ensuring transparency, accountability, and strong fiscal management is a top priority for the University. We continue focusing on policies, procedures, and processes that best support student success, quality program delivery, good governance practice, risk management, enrolment growth, graduate programming, continuing education, new infrastructure, capital commitments, and so much more.
"These recommendations will strengthen our institution further. As part of our commitment to continuous improvement, we thank the Auditor General and her team for their work and professionalism throughout the process."