Employer adopts a misleading narrative on the university’s financial position

In recent communications to YUFA members and to the university community, the Employer continues to repeat “the significant financial challenges” of the university and suggest that YUFA is in some manner responsible for these. This is false.

The university is not facing a financial crisis. The Office of the Auditor General of Ontario, in its report of December 2023, stated: “Our audit concluded that York University was financially sustainable, with a positive net asset balance of $1.9 billion at the end of fiscal year 2022/23” (p. 4). York University president Rhonda Lenton replied with “The University agrees with the auditor general’s overall conclusion that York is financially sustainable” (YFile, Dec. 6, 2023)

The University’s own audited financial statements, included in the June 25, 2024, York University Board of Governor’s Agenda package, state:

“The University’s operating cash and cash equivalents increased by $11M, primarily due to $73M in cash generated from operations, $29M from endowments and other restricted contributions
“The market value of the University’s endowments increased by $44M from $583M at April 30, 2023 to $627M at April 30, 2024. The endowment rate of return was 9.5% in 2023/24 (2022/23: 8.1%)” (p. 133).

The Ontario Auditor General, however, noted the administrative bloat at York University. Between 2016 and 2023, the number of senior executives and administrators who perform professional or managerial functions increased by 41% (from 774 to 1090), while the number of YUFA members increased by 13% (from 1564 to 1764). During this time, the number of undergraduate students rose by less than 2% and the number graduate students by 8%.

The Auditor General’s report revealed major deficiencies by the Employer in financial oversight, planning, and accountability of expensive capital projects.

York University, like other Ontario universities, had ample time to adjust its financial strategies to take into account government decisions. Blaming external conditions without acknowledging the Employer’s role in inadequate strategic planning undermines the Employer’s argument that it has no control over the financial situation of the university.

The Employer’s strategy of pleading poor, and seeking to assign blame to YUFA, is misguided and unhelpful in the current negotiations.