Finance and Budget

• Plan of Compromise and Arrangement
• Notice of Distribution from the Monitor

The Plan of Compromise and Arrangement was negotiated with Laurentian’s creditors during insolvency in 2021. The purpose of the Plan was to restructure the University’s liabilities, allowing it to continue to operate.

Laurentian’s obligations under the Plan

Laurentian reached an important milestone in August 2025 in fulfilling its obligation under the Plan, when it completed the sale of the designated real estate properties to the Province of Ontario. The funds from this sale allowed Laurentian to fully fund the Distribution Pool under the CCAA Plan, which is used to pay back its creditors.

Laurentian continues to have ongoing obligations under the CCAA Plan, including to operate within an approved budget that is balanced, not undertaking capital projects or incurring expenses that would cause its financial position to become unstable, investing in various operational and governance projects (including the Transformation Program), and operating in a manner that ensures financial sustainability.

Domestic

International

Total

*as of April 1, 2026.

Projected Revenues by Source for 2026-27

Projected Expenses by Source for 2026-27

*as of April 1, 2026.

The budget book presents Laurentian’s consolidated budget, which combines financials from its operating and research activities, ancillary services, and capital maintenance. Together, these components provide an overall view of Laurentian’s financial position and the resources required to support its academic mission, research activities, and campus operations. MIRARCO and its share of SNOLAB results are also included in the consolidated budget as related entities.

The operating budget represents the majority of expenses, on average, approximately 80%. The Operating Fund includes the resources available for teaching, student services, and academic and administrative support. The operating budget is divided into budgetary units, each of which is responsible for managing the financial activities of its department. 

The Ancillary Fund includes non-academic units providing services that enhance campus life and support Laurentian’s academic and research mission. Each ancillary service is required, at a minimum, to be financially self-sustaining. This includes units such as Residence Life, Dining Services, Print Hub, and Parking Services. The ancillary budget is approved separately by the Board earlier in the year and is included in the consolidated budget.

The Capital Fund supports renovations to existing spaces, deferred maintenance projects, and major capital assets. These investments may be funded through government grants, internal operating resources, and other sources designated for capital purposes.

The Research Fund includes externally restricted research funds, as well as internally designated funds that support research and scholarly activities. Future funds for which activities are not reflected in the operating budget include endowed and special-purpose donations.

Laurentian’s financial sustainability depends on ensuring that costs do not exceed revenues. Our revenues come primarily from provincial operating grants, which represent about 43 per cent of total revenue; student tuition fees, which represent 30 per cent of total revenue; ancillary services such as revenues from residences, food services, and parking; and also research grants.

Our costs are largely driven by salaries and benefits, as well as operating and research costs, occupancy costs, and scholarships and bursaries. Our costs are inherently inflationary, meaning that they go up every year. This includes salary increases, utilities, and ongoing expenses associated with maintaining our buildings, among other things.

Since our costs increase every year, our revenues - especially our student enrolment - must grow at a similar rate in order to maintain a balanced budget. When enrolment projections do not support that level of growth, we must adjust the budget accordingly to ensure that it remains balanced.

A reserve is an accumulated surplus. It increases at the end of a fiscal year when operating revenues cover all expenses for the year. These are presented as ‘Net Assets – Unrestricted and Internally Restricted’ on the Statement of Financial Position in the budget report.

As with any university, Laurentian’s reserves act as its ‘savings account’. This fund can be used to support special projects, to pay for infrastructure projects or renovations, or for other one-time purposes.

Since Laurentian cannot borrow money, reserves are especially important as they become the only source of funding for unexpected costs. This means that any unexpected event – from failing electrical infrastructure, to a broken pipe, or a significant decline in enrolment – must be funded internally. Laurentian’s reserves ensure the University can continue to operate and pay employees if something negatively affects our revenues or costs.

Importantly, reserves are ‘one-time money’. Once the money has been spent, it is gone. As a result, the University cannot use reserves to fund costs that recur on an annual basis, such as salaries.

As outlined in the Exit Loan Agreement, any excess over revenue that Laurentian generates must be placed into its reserves.

Types of reserves

Laurentian’s reserves are made up of two types: restricted and unrestricted.

‘Internally Restricted Net Assets’ are funds set aside and approved by the Board of Governors for specific, designated future purposes, such as capital projects or the Transformation program, or funds received for future purposes such as research grants. These funds are not available for general spending.

‘Unrestricted Net Assets’ are not currently committed and can be used for a variety of one-time purposes. Unrestricted reserves are the only savings that can be used to cover one-time, short-term operational financial gaps. Access to these unrestricted funds is necessarily limited, because they represent the University’s only reserve in the case of deficits or other financial challenges.

Accessing reserves

As a requirement of its restructuring, Laurentian cannot access its unrestricted reserves without approval by both the Board of Governors and the provincial government.