Assessing University Performance Using Financial Statements

ABSTRACT

This instructional case asks students to assess and communicate the financial performance of Ontario postsecondary institutions following the 2021 insolvency at Laurentian University, a publicly funded postsecondary institution in the province of Ontario, Canada. Students are provided with excerpts from a report by the Auditor General of Ontario on the insolvency crisis at Laurentian University, as well as publicly available financial data for the period 2014–2023 for 20 Ontario postsecondary institutions. Students are then tasked with performing and analyzing trend analysis for revenues, expenses, debt burden, and key financial metrics, including net operating revenue ratio, interest burden ratio, in‐year surplus, expendable net assets, and cash flows from operations. Deliverables include spreadsheet analysis, data visualization, and written communication about financial performance across multiple years in an Ontario postsecondary institution setting. The case is designed to meet big data and data analytic competencies according to the CPA Competency Map 2.0 and the CPA Professional Program Academic Guide.