Students' union files lawsuit against University of Regina over terminated fee agreement
A statement issued Friday by URSU's board of directors says the university is making "unilateral decisions without any co-ordinated input from the student body." The board claims the university is putting services at risk with potential negative impacts on students.
Earlier this month, university president Jeff Keshen announced he had terminated the U of R's fee collection agreement with the student union effective Aug. 31.
Keshen said university officials had lost confidence in URSU after an auditor reviewed its 2024 audited financial statements and found its finances unsustainable.
WATCH| U of Regina ends funding agreement with students' union
"The auditor pointed to an ongoing material uncertainty, which in auditor's language means that the financial sustainability of that organization is in serious question, meaning that they may not be able to pay their bills, they may not be sustainable," Keshen told CBC News earlier this month.
URSU's financial report found that during the 2023-2024 fiscal year it had posted revenue of $8.9 million and expenses of $10.2 million, leaving the organization in a "deficit position" of approximately $1.3 million.
Keshen said the auditors found URSU is "depleting any reserves that they have," and that the university has a responsibility to students to ensure the fees they pay are used responsibly.
'Unsubstantiated rumours'
URSU's statement on Thursday claims the university should not have intervened in student governance "absent evidence of fraud."
"Despite unsubstantiated rumours you might have read on social media, we do not have evidence that anyone committed fraud or that admittedly poor decisions were made in bad faith," the statement reads.
The board admits that its prior record of financial loss is a reflection of much needed change to URSU's governance structure and its internal spending policies.
In a statement, the University of Regina said it is "disappointed" with URSU's legal action.
"Over the past several months, the University has tried to work with URSU leadership, offering financial and governance assistance. Unfortunately, URSU has not undertaken the steps recommended by the University to improve and address these matters," the statement reads.
As a result, the university's administration says, it made the decision to terminate the agreement.
The university said that earlier this year it implemented a payment protocol that would allow URSU to receive student fees so that its operations and student services, such as the UPasss bus pass and health and dental benefits, would not be interrupted.
URSU has chosen to not engage with that protocol or access the funds, according to the U of R.
"The University will be defending the action, and will not comment further while the matter is before the Courts," the statement reads.
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