Description: Universities in Ontario are banding together to try and find cost savings through efforts like joint procurement and combining course offerings, all in the shadow of provincial government pressures to find efficiencies before they will be allowed to increase tuition fees. But the Council of Ontario Universities stated the fiscal situation is becoming “increasingly untenable,” with several schools facing very large deficits. Jill Dunlop, the government minister responsible for universities has received a report from a high-profile panel that recommends a 10% increase in the grants to universities along with a 5% tuition increase. Dunlop’s panel included a look at university administrative costs as part of its review, noting that this area has “considerable room for improvement.”
Date: December 1, 2023
Source: thestar.com
Discussion points:
1) Are you a student at an Ontario university? If so, how have these financial issues impacted you?
2) Do you think the Ontario government has been correct in insisting on increased efficiency in the university sector?
3) Pages 4-1 and 4-2 of Wiley’s Financial Accounting: Tools for Business Decision-Making talks about accounting at Western University in London, Ontario. What are the various types of revenues and expenses for a university that are mentioned in this vignette?
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