Auditor General issues public accounts audit opinion
Auditor General of Newfoundland and Labrador, Denise Hanrahan, has issued an unqualified (clean) audit opinion of the province’s 2025-26 financial statements, known as the Public Accounts.
Public Accounts are prepared in accordance with the standards established for governments by the Chartered Professional Accountants of Canada. While no audit opinion is offered regarding the financial statement discussion and analysis report ‘Understanding the Financial Health of the Province of Newfoundland and Labrador,’ the Auditor General encourages the public to read that report as it provides valuable context and trend information. This analysis report and the notes to the Consolidated Financial Statements (Volume 1 of the Public Accounts) provide details on the operating deficit of $378 million, net debt of $19 billion, and total liabilities of $36 billion.
“While the province continues to receive an unqualified audit opinion, I want to emphasize that provincial debt remains at a historic high and continues to be an area of concern,” commented Auditor General Hanrahan.
The accounting issues related to last year’s tobacco settlement were not present this year. We note that the province paid the remaining $98 million in total settlement legal fees upfront, rather than link the payments to future revenue as it is realized. In the prior year Public Accounts, the notes stated that the legal fees related to the settlement are 25 per cent of the gross total settlement proceeds, approximately $132.7 million, payable as the settlement proceeds are received.
Our Office will release an information report in the coming weeks to assist citizens with understanding and interpreting the province’s financial statements. Insights into our Office’s 2026 financial statement audits, including recommendations for improvements, will be provided in the Auditor General Report on the Province’s 2026 Financial Statement Audits, which will be released in early 2027.
“I am pleased to have issued my Office’s 32nd consecutive unqualified audit opinion. I would like to sincerely thank my team and the team at the Office of the Comptroller General for their dedication to this important work,” added Auditor General Hanrahan.
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