Auditor General On 2025 Consolidated Fund
Auditor General Heather Thomas has issued a statement on the Government’s 2025 financial statements.
A spokesperson said, “Auditor General Heather Thomas is the Government of Bermuda’s independent auditor, and whose office is mandated to report whether the Government’s financial statements are fairly stated in accordance with public sector accounting standards accepted in Bermuda and Canada.
“The Audit Act 1990 requires the Auditor General to report on whether the Government’s ‘financial statements are fairly presented in accordance with generally accepted accounting principles.’ The Independent Auditor’s Report and the summary financial statements were signed off December 9, 2025, and tabled in the House of Assembly – Friday, February 20, 2026.
“The Auditor General’s office provides the citizens of Bermuda and users of Government’s financial statements with the independent assurance that those statements are fairly stated, or to alert the users of matters that were of most significance in her professional judgement of the audit of the Financial Statements of the Consolidated Fund of the Government of Bermuda for the current year.
“In her Independent Audit Report, Ms. Thomas highlighted a key audit matter on Government’s Asset Retirement Obligations [ARO]. Reporting on key audit matters provides additional insights and transparency into how important items were addressed by her Office during the audit. Matters that are complex, have a high degree of uncertainty or are important to the public are highlighted as key audit matters.
“The liability for ARO was raised as a key audit matter because these liabilities are significant estimates of future costs, and, in the fiscal year 2023, the Government of Bermuda was required to adopt Public Sector Accounting Standard PS 3280 Asset Retirement Obligations.”
“I qualified my opinion in the audit reports relating to fiscal years 2023 and 2024 on the basis that the Government had not provided sufficient appropriate audit evidence regarding the completeness, valuation of the amounts recorded and the disclosures required. In fiscal year 2025, the Government prepared a supported ARO estimate. As of March 31, 2025, the Government recorded $44.4 million in ARO. Much of the liability relates to the removal of asbestos. It includes identifying legal requirements and assumptions to estimate the future costs required to complete the necessary future remediation. I concluded that liabilities for ARO are fairly stated, in all material respects, and are disclosed appropriately in accordance with the requirements of public sector accounting standards generally accepted in Bermuda and Canada”, stated Ms. Thomas.
The spokesperson said, “Similar to prior years, in her Auditor’s Opinion, the Auditor General included an Emphasis of Matter paragraph to highlight that the Consolidated Fund financial statements are not summary consolidated financial statements of the Government of Bermuda.”
Ms. Thomas said: “There are approximately 50 entities, their assets and liabilities of which are outside of the Consolidated Fund, and I encourage the Government of Bermuda to account for the full nature and extent of the financial affairs and resources which the Government controls. Summary accounts of the Government of Bermuda would give the citizens of Bermuda and users of the government audited accounts the tool to understand and assess the totality of the public financial affairs and resources entrusted to the government.’ said Ms. Thomas
The spokesperson said, “The Auditor General expressed her appreciation to her team, the Accountant General’s Department, and the Ministry of Finance for their cooperation throughout the audit.”
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