Laurentian University has created a ‘culture of fear’ among staff, hampered value-for-money auditing, says AG

Financially troubled Laurentian University has hampered the auditor general’s office by refusing to hand over necessary documents while creating “a culture of fear” among staff who are afraid to speak, says a special report released Wednesday.

In an update on the audit of value for money at the University of Sudbury, the first public postsecondary institution in the country to go to court for creditor protection, the Office of the Auditor General said that “there is an expectation from the public for transparency and accountability … Unfortunately, Laurentian has denied our office access to information that we consider absolutely necessary for the conduct of our audit work. “

The university “has refused to provide our office with information that its internal and external legal counsel decided is subject to attorney-client privilege. In many cases, he has also refused to provide inside information … such a pervasive restriction on our audit work is unprecedented. “

The auditor general’s office also said that “in addition, Laurentian has put in place communication and documentation protocols that discourage university staff from speaking freely with us or providing our office with unrestricted access to information without fear of reprimand. These protocols have created a culture of fear around interactions with our office. “

In late September, the auditor took the unusual step of filing an application with the Superior Court of Justice for an order on the right to documents. After that, the province’s public accounts committee sent four letters instructing Laurentian to hand over the documents, and although some have been published, “it is not clear if all the requested material will be received,” the report says. special.

The auditor is looking for college board and committee documents, legal expenses, human resources, and union complaint files.

“We routinely receive inside information during our audit work,” the special report says. “… Our experience has been that in such cases the auditees provide us with direct and unrestricted access with the understanding that such access does not waive the privilege and that there will be an opportunity for the auditee to review our draft audit report prior to the termination to ensure that the customer’s inside information is not disclosed. ”

The university, in a factum filed with the Superior Court of Justice on November 29, argued that the Auditor General is “getting ready” and that her office does not have the automatic right to force the school to provide inside information.

The school also said that it “opposes in the strongest terms the allegation … that it has ‘created a culture of fear to speak to the (auditor general’s office)'” and that it “has provided access to all staff for interviews … the claim that it has created a ‘culture of fear’ appears to be based purely on the direction of the university to its staff not to reveal inside information. That directive was totally appropriate. “

Failure to provide information to the Office of the Auditor General can result in a prison sentence of up to one year.

Laurentian filed for creditor protection last February, a process typically used by struggling companies like Air Canada, and said it had struggled financially for a decade with annual deficits, declining demographics, capital expansion, registration freezes and the impact. of COVID-19.

According to court documents, Laurentian’s total debt was $ 321 million, including loans of approximately $ 107 million, $ 18.5 million in current liabilities and $ 89 million in longer-term debt. It also has approximately $ 214 million in other debts and obligations to employees and other creditors.