Auditor General of Newfoundland and Labrador, Denise Hanrahan, has issued an unqualified (clean) audit opinion of the province’s 2023-24 Public Accounts. The Public Accounts also includes the latest information on government’s rate mitigation plan, and. while there is no present impact on the public accounts, the long-term impact of the rate mitigation plan on Public Accounts remains unknown.
“I am pleased to have issued my office’s 30th unqualified audit opinion on the financial statements for the year ended March 2024. However, it is important to keep in mind that the province’s expenses exceeded its revenues by $459 million, which is worse than originally budgeted and last year. Total liabilities of the province are now almost $32 billion with net debt having increased by 7.3 per cent over last year to $17.7 billion. Our net debt per capita is double the rest of Canada. Even with an increasing population, these financial indicators and the challenging demographic and economic risks we face suggest that the province’s financial position is worsening,” commented Auditor General Hanrahan.
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 entitled ‘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.
“Rate mitigation may have a significant effect on the province’s financial statements in the near future,” continued Auditor General Hanrahan. “The current rate mitigation plan only provides for a limit to rate increases up to and including 2030. Given that Muskrat Falls assets and related debt will extend well beyond 2030, I urge government to plan for this known risk.”
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Chrysta Collins
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