Nova Scotia failing to hold universities account for spending, auditor general says

The Nova Scotia auditor general says the province is failing to hold universities to account for their spending.

HALIFAX — Nova Scotia’s auditor general says the provincial government is not properly keeping track of the billions of dollars it is sending to universities.

In a new report today, Kim Adair says Nova Scotia’s 10 universities have received $2.5 billion in government funding over the last five years, including $1.9 billion in unrestricted operating grants.

Adair says the annual allocation of the unrestricted operating grants is “arbitrary” and based on a formula that is more than 25 years old, which she recommends changing.

She says the funding structure for the grants allows universities to spend the money on areas it wasn’t meant for, such as student aid, routine maintenance, staff salaries and executive compensation.

The report also says the province has not assessed whether $163.8 million in health education grants are achieving health-care priorities established by the government.

As well, Adair says it’s unclear how many nurses have been added to the workforce despite $65 million spent to expand the number of nursing seats at universities.

However, the auditor general says new bilateral funding agreements introduced last year, which are due to expire at the end of March, included performance targets and measures to hold universities accountable for those funds.

“The new bilateral agreements, if followed, should improve accountability,” Adair said. “We encourage the use of performance targets in future bilateral agreements.”

Under legislation currently before the House of Assembly, the provincial government is looking to link university funding to the province’s economic and social priorities.

This report by The Canadian Press was first published March 4, 2025.