Laurentian University has reported a $37.9-million surplus for the financial year 2023-2024, which ended April 30.
The university’s board of governors approved LU’s 2023-24 financial statements, audited by the financial firm BDO, at the Oct. 18 meeting.
You can view these financial statements in the board package. Laurentian’s financial report for the year 2023-2024, which provides commentary on Laurentian’s financial situation, is also included.
Universities must submit their financial statements from the previous fiscal year to the province and post them publicly by the end of this month.
Contributing to the surplus was the increase in revenue from international graduate students, explained Sylvie Lafontaine, Laurentian’s vice-president, finance and administration. Laurentian saw a large increase in its international student population last year.
“That increased by over 10 per cent, generating an increase of $14.9 million,” she said.
The statements show that Laurentian brought in almost $67.8 million in tuition in 2023-2024, as opposed to $52.8 million the year prior.
However, there was some discussion during the meeting of the ongoing efforts by the federal government to reduce the number of international students coming to Canada.
Provost Malcolm Campbell said he’s most worried about the ripple effects this will have on Canada’s reputation, and the impact on recruitment of international students, who can be charged higher tuition fees.
Lafontaine also pointed out that 2023-2024 was the university’s first full year following its late 2022 exit from its nearly two-year insolvency restructuring under the Companies’ Creditors Arrangement Act (CCAA).
With the CCAA, many employees left the university, leaving positions vacant, and having an impact on the university’s bottom line.
“There were still a significant number of positions that were vacant by the end of the fiscal year in April, and therefore we did generate that surplus,” Lafontaine said.
The university had cash and short-term investments of $174.4 million as of the end of the fiscal year.
Laurentian University Faculty Association (LUFA) president Fabrice Colin commented during the meeting that he appreciates that the surplus was built because of an increase in revenues, but it was also due to a reduction in expenses on the backs of his members.
“Maybe some of the board members are not aware of it, but salary was rolled back by five per cent and then frozen, so just to give you an idea, the current salary of full-time faculty members is the same as it was maybe four or five years ago, not mentioning the increased workload, not mentioning also sacrifices made to the pension plan,” he said.
A year ago, Laurentian posted a surplus of $52.6 million for the financial year 2022-2023.
Laurentian’s excess of revenue over expenses for the financial year 2022-23, was actually at $208 million before factoring in some numbers related to its 2021-2022 insolvency.
That included liabilities that were extinguished as part of Laurentian’s plan of arrangement stemming from its time under the CCAA.
The university posted a deficit of $66.7 million in 2020-21 and a surplus of $16.8 million in 2021-22.
The university would have actually had a $41.5 million surplus in 2023-2024, but it spent $3.6 million on transformation costs in 2023-2024. Laurentian is legally obligated to take part in a transformation of its operations following insolvency.
“The estimated value of the transformation project is $32 million to be spent over four years starting in 2023-24 and is included in the five-year financial projections to the Ministry of Colleges and Universities,” said the financial statements.
The university also paid out continuing professional fees related to the CCAA of $368,000, as well as principal payments of $1.4 million and interest of $2.1 million on a $35-million long-term loan with the province, taken out to replace private insolvency bridge loans.
As of the end of this past fiscal year, the university still owed $31.3 million to the province on this loan.
Although it exited insolvency almost two years ago, Laurentian has not yet paid out what it owes creditors under its plan of arrangement, which it is to do through sales of land to the province of Ontario, which have yet to be completed. The deadline is Nov. 28, 2025.
The land sales, which represent nine per cent of the university’s total acreage and five buildings, are to be for up to $53.5 million, less $5.9 million already paid out to certain types of creditors. This money is to fund the creditors’ pool.
Related to this arrangement, the financial statements reveal Laurentian’s plan to sell its Vale Living With Lakes and Watershed Building to the province for proceeds of $8 million, and then lease back the property.
The financial documents say the sale of this building is expected to be completed by the end of this year. “All parties are working diligently to ensure sale proceeds on all earmarked properties are available to creditors by Nov. 28, 2025,” said LU’s annual financial report, which was also included in the board package.
The financials also note that the proceeds from the sale of the Laurentian president’s home earlier this year, which had a “gain on disposal of $872,000,” have been added to the distribution pool.
The university said that having just exited insolvency Nov. 28, 2022, Laurentian started the 2023-2024 fiscal year with “significantly diminished capacity and needed to re-invest in its academic and research programs, along with administrative support.”
Laurentian also saw capital expenditures of $6.2 million in 2023-2024, “related mostly to various roof replacements on campus as well as equipment purchases.”
Heidi Ulrichsen is Sudbury.com’s assistant editor. She also covers education and the arts scene.
