Audit of the Government of Saskatchewan’s 2025–26 Financial Statements

Government financial statements are used to show accountability, which outlines how public dollars are raised and spent, and how much taxpayers can expect to pay to fund existing programs and services in the future.

It’s essential the Government of Saskatchewan records all transactions and estimates accurately to support effective decision-making.

Provincial Auditor’s Opinion on the 2025–26 Government Financial Statements

The Government received an unmodified (clean) audit opinion on its 2025–26 financial statements.

This means the financial statements meet Canadian public sector accounting standards and users can place reliance on the Government’s financial statements. Overall, our Office is satisfied with the credibility of the financial statements, and they are free of significant errors.

Key Audit Matters

Key audit matters are those determined as most important in requiring substantial audit effort and in the possibility of significant errors. They include matters that are complex and have a high degree of estimation or judgment.

Key audit matters in 2025–26:

• Individual and corporate income tax revenue, which provided $5 billion in revenue in 2025–26 (2025: $4.8 billion). Estimates of individual and corporate income tax revenue involve several inputs and assumptions requiring evaluation and confirmations with the Federal Government.
• Pension liabilities of $5.7 billion at March 31, 2026, (2025: $5.9 billion) where responsibility for funding lies with the Government and the estimated liability requires considerable judgment about future events (e.g., pension plan members’ average lifespan) and economic conditions. Audit work included assessing the appropriateness of the actuarial methodology, reasonableness of assumptions, and testing the accuracy of data provided to the actuary.

Certain Financial Highlights from the 2025–26 Public Accounts

• Total revenue of $21.13 billion and total expenses of $22.08 billion
• Non-renewable resources revenue at $2.73 billion—an increase of over 6% from prior year
• Decrease of $196 million in income from the utility sector from prior year
• Nearly 60% of spending in heath and education, $13.2 billion of total spending on health and education combined
• Salaries and benefits account for 41% or $9.16 billion of expenses—a $701 million increase from 2025
• Total public debt at $39.74 billion at March 31, 2026 (2025: $35.22 billion)

The Office’s Role in Relation to the Government’s Summary Financial Statements

Our Office is required by law to audit the Government of Saskatchewan’s financial statements and provide independent assurance to the Members of the Legislative Assembly and the people of Saskatchewan that public money is spent as presented, and sufficient information is provided to inform users and readers of the financial statements.

Our audit assesses whether the financial statements are presented in accordance with Canadian public sector accounting standards. These standards are developed by an independent standard-setting body to serve the public interest by strengthening accountability in the public sector and setting financial reporting standards of good practice. Other provincial governments as well as the Federal Government use these standards to prepare their financial statements; using these standards help to ensure that a government’s financial statements are complete, consistent, and comparable.

We are responsible for the direction, supervision, and review of the audit work performed and remain solely responsible for the audit opinion. This year’s audit required work around a new financial system called GEM.

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