N.S. not adequately monitoring universities’ use of public funds: AG report
Nova Scotia’s auditor general recently released a report highlighting the lack of effective accountability measures in place for universities receiving public funds from the provincial government. The report raises concerns about the allocation of operating grants, monitoring of funding for health-care programs, and ensuring long-term sustainability.
Auditor General Kim Adair emphasized the delicate balance between universities being independent academic institutions and receiving a significant portion of their funding from the Department of Advanced Education. Over the past five years, Nova Scotia’s 10 universities received a total of $2.5 billion in department funding, in addition to revenue from tuition, research grants, and endowments.
One of the key findings of the audit was the arbitrary allocation of operating grants totaling $1.9 billion over five years. The report criticized the outdated formula used to distribute funds, leading to inconsistencies in per-student funding levels across universities. This raises concerns about inequitable distribution and the need for a more transparent and accountable funding model.
In terms of health education funding, the report highlighted a lack of assessment regarding the effectiveness of $163.8 million in grants. Specifically, the report questioned the impact of a $65 million nursing seat expansion program on increasing the number of nurses in the workforce. Additionally, $119 million in health education grants remained unspent by September 2024, prompting concerns about the utilization of allocated funds.
The report also raised alarms about universities’ financial health and sustainability, noting a total long-term debt of $370 million among the institutions. Some universities had a high debt per student ratio, indicating potential financial strain. The report emphasized the need for proactive financial monitoring and collaboration between the department and universities to address financial challenges.
To address these issues, the report included 11 recommendations for the Department of Advanced Education, such as creating a new funding allocation model, establishing clear goals and reporting mechanisms for health education funding, and defining financial health benchmarks for universities. The department agreed with all recommendations and highlighted the introduction of new bilateral agreements with universities to enhance accountability.
In response to the report, Advanced Education Minister Brendan Maguire acknowledged the need for improved accountability measures and highlighted the government’s commitment to working with universities to ensure their long-term sustainability. However, some within the university community, like Scott Stewart, president of the Association of Nova Scotia University Teachers, argue that inadequate funding is the root cause of financial struggles faced by universities.
The report comes amid discussions about newly proposed legislation that would increase government oversight of universities, potentially impacting their autonomy and ability to serve their communities effectively. As the province navigates these challenges, collaboration between the government, universities, and stakeholders will be crucial to ensuring a sustainable and accountable higher education system in Nova Scotia.
