The government of Saskatchewan moved on Tuesday to prop up the financially strapped First Nations University in Regina with a one-time $2 million infusion of cash.

Rob Norris, the province's minister of advanced education, employment and labour, said the money was given to address a chronic deficit problem at the institution.

"I attended a meeting towards the end of July and there was an acute financial situation," Norris told reporters at news conference following a ceremony with university leaders. "Our ministry officials sat down and began to work through the situation we were confronting to ensure that we understood the scope and scale of the challenge. From that, we began to formulate a plan."

The plan is to provide $1.6 million to the university to cover salary increases and operating expenses. Another $400,000 will be spent on a review of the university's long-term operations.

Charles Pratt, president of the university, called it an exciting development for the institution.

"It's a time to celebrate our university," Pratt said. "We had three initiatives. One, you know, to honour the commitment of our faculty. Secondly, to provide some short-term operational resources, and thirdly, to empower and enable our university to realize our strategic vision."

The extra money was delivered with one string attached. About $500,000 is conditional, and will only be provided if the university attains some management benchmarks, including meeting new standards of accountability.

The university has been rocked by allegations of mismanagement and political interference in recent years.

Since the allegations were made, new people were put in several key positions within the university and an outside accountant was hired under contract to help the university keep better track of its spending.

Two former administrators of the institution have been accused of defrauding the university. Those matters are still before the courts.