The North Carolina Office of the State Auditor (OSA) has released a new report summary highlighting key aspects of North Carolina’s overall financial health. The report was created from financial statements audited by OSA in the State of North Carolina’s Annual Comprehensive Financial Report (ACFR).
“The State Auditor’s Office audits the financial information used to determine whether North Carolina’s financial statements are reliable. Our team made six adjustments this year and had one material finding related to the Department of Commerce,” said State Auditor Dave Boliek. “Because of our team’s work, these issues were corrected, resulting in true and accurate financial figures being presented to the public. With the State Auditor Office's opinion, state executives, policymakers, and industry leaders can confidently rely on these important financial statements for future decision-making.”
OSA identified six material adjustments during its audit, which have since been corrected. Adjustments related to the Department of Commerce were significant enough to result in a financial reporting finding, which will be included in the State’s upcoming Single Audit Report. Total overstatements for the Department of Commerce were $872.8 million, and understatements were $262.5 million.
Upon publication of the 2025 ACFR, OSA’s audit determined the State’s financial statements for the fiscal year ended June 30, 2025 are accurate and reliable. Highlights from the report summary include:
- The State’s net position increased by $6 billion or 6.51%. At year-end, net position of governmental activities and business-type activities totaled $88.67 billion and $9.48 billion, respectively.
- Individual Income Tax revenue saw an increase of $637.82 million, reflecting a growth of 3.87%.
- Health and Human Services spending increased by $5.67 billion or 16.37%.
- Higher Education spending increased by $884.48 million or 13.51%.
- The State’s investment in capital assets was $76.57 billion, an increase of 4.85% from the previous fiscal year-end.
- In 2025, the top three rating agencies – Standard & Poor’s, Moody’s Investors Service, and Fitch Ratings – all affirmed the AAA bond rating for the State. North Carolina remains one of only 14 states with a AAA rating from all three rating agencies.
The full report can be found online through the North Carolina Office of the State Controller website.