Report of the Auditor General of Canada on the 2024–25 Consolidated Financial Statements of the Government of Nunavut
Ullaakkut. Good morning, Mr. Chair, and thank you for inviting us to appear before the committee to discuss our audit of the Government of Nunavut’s consolidated financial statements for the 2024–25 fiscal year. Joining me today is Fera Awada, the principal responsible for the audit.
The consolidated financial statements in the Nunavut Public Accounts are a key government accountability document that helps members of the Legislative Assembly understand the government’s financial position and the results of its financial activities. As the Government of Nunavut’s auditor, the Office of the Auditor General of Canada is responsible for auditing the consolidated financial statements and expressing an opinion on them. We also report on the government’s compliance with authorities.
The committee’s review of the territory’s Public Accounts is an important step in ensuring accountability for how public funds are spent and how government finances are reported. Our work supports the Legislative Assembly’s oversight of the government and promotes transparency and good financial management.
The government carries out its accounting and financial reporting responsibilities through its Office of the Comptroller General in the Department of Finance. The Deputy Minister of Finance and the Comptroller General will answer questions about the preparation of the financial statements. I will focus on the results of our audit work.
The result of our work is found in our independent auditor’s report in Section II of the Public Accounts. We issued an unmodified, or “clean,” audit opinion on the government’s consolidated financial statements for the 2024–25 fiscal year. This means that the financial statements were prepared in accordance with generally accepted accounting principles for the public sector.
I will draw the committee’s attention to an issue that put the government at risk of not meeting its statutory reporting deadline.
During the 2024–25 fiscal year, the government implemented the first of 2 planned releases in its conversion to the Oracle financial system. We found that implementing the new system shortly before year-end, in February 2025, resulted in delays in the government finalizing its financial reporting and providing critical information needed for our audit. These government delays, in turn, delayed our audit and put the government at risk of not meeting its statutory reporting deadline. We are already auditing the 2025–26 financial statements, and we plan to finalize our work this fall. The government needs to present these statements and our auditor’s report to the Legislative Assembly before December 31, 2026.
I also want to update the committee on the long-standing concern related to inventory management at the Qulliq Energy Corporation.
For many years, we have been reporting inadequate inventory management practices and significant control deficiencies related to spare parts and lubricants. Although we found some improvements this year, significant shortcomings remain. This matters because incomplete information on these inventories prevented us from concluding whether they were accurately recorded and valued.
I would also like to make the committee aware of an important accounting change that will affect the government’s 2025–26 financial statements. As discussed last year, the Public Sector Accounting Board has revised its Conceptual Framework for Financial Reporting in the Public Sector, including a new reporting model, which took effect on April 1, 2026. We are pleased that the government and territorial corporations have chosen to early adopt these new standards for the 2025–26 fiscal year. The new reporting model involves significant changes to how information is presented in the financial statements, including a new statement of net financial assets or liabilities.
I would like to thank the Deputy Minister of Finance, the Comptroller General, their staff, and the staff of the departments and territorial corporations who were involved in preparing the government’s financial statements. We appreciate their effort and collaboration.
This concludes my opening remarks. We would be pleased to answer any questions the committee may have. Nakurmiik. Thank you, Mr. Chair.