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Laurentian board replaces long-standing auditors

The insolvent university put out an RFP in April to replace long-standing auditors KPMG, and BDO was the only firm to submit a proposal
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Laurentian University’s board of governors voted unanimously earlier this month to replace the university's long-standing auditors, KPMG, with the firm BDO.

The university continues to undergo restructuring under the Companies’ Creditors Arrangement Act (or CCAA) after declaring insolvency in the winter of 2021.

The decision to replace KPMG as the university’s auditors was made at a June 2 special meeting of Laurentian’s board of governors. 

Although the decision was made in-camera, the June 2 motion passed by the board is included as part of the information package for the upcoming June 24 Laurentian board of governors meeting.

The preamble for the motion, which was moved by board member Robert Brouillette and seconded by fellow board member Martin Bayer, said KPMG was appointed through a RFP process for a five-year period from April 2014 to April 2018.

The appointment came with reappointment options for April 2019, April 2020 and April 2021. 

KPMG was reappointed last year as the auditors for the financial year ending April 2021, although, given Laurentian’s insolvency, more senior people were put on the file.

The audited financial statements for Laurentian’s 2020-21 financial year were finally presented, months later than usual, in March 2022. The audited financial statements for the 2021-22 financial year, which ended April 30, have not yet been presented.

BDO has been selected to audit Laurentian’s financial statements for the next five fiscal years, more specifically “the fiscal years ending April 30, 2022 to April 30, 2027.”

The university conducted an RFP in April of this year, and BDO was the only firm that submitted a proposal through the Ontario Education Collaborative Marketplace, a sourcing partner for Ontario's broader public sector.

The motion said that Laurentian’s administration reviewed BDO’s proposal and met with the principals of the firm to discuss Laurentian’s audit requirements.