Auditor general issues clean opinion on Newfoundland and Labrador’s financial statements

Newfoundland and Labrador’s 2025-26 financial statements have received a clean audit opinion, despite an operating deficit of $378 million and provincial net debt of $19 billion.

Auditor General Denise Hanrahan issued the unqualified opinion on the province’s Public Accounts, marking the 32nd consecutive year the province has received such an opinion.

However, Hanrahan cautions that provincial debt remains at a historic high and continues to be a concern.

The Public Accounts also report total provincial liabilities of $36 billion. The figures are detailed in the notes to the Consolidated Financial Statements and a separate report examining the province’s financial health.

The latest statements also show a change in how legal fees associated with last year’s tobacco settlement were handled. The province paid the remaining $98 million in settlement-related legal fees upfront rather than linking payments to the future receipt of settlement revenue.

In the previous year’s Public Accounts, legal fees were reported as 25 per cent of the gross settlement proceeds, amounting to approximately $132.7 million, payable as settlement revenue was received.

The Office of the Auditor General plans to release an information report in the coming weeks to help residents understand the province’s financial statements.

A broader report on the office’s 2026 financial statement audits, including recommendations for improvements, is expected in early 2027.