Billions of dollars spent on health, but scattershot financial reporting leaves decision-makers, Manitobans in the dark, auditor general says

Manitoba’s auditor general says significant gaps in health-sector financial reporting make it difficult to understand how billions of dollars in public funds are spent.

Auditor General Tyson Shtykalo is calling for clearer, more transparent reporting in his latest report, titled Observations on Health Sector Financial Reporting and Accountability in Manitoba.

“Manitoba spends nearly $10 billion annually on health care, but current financial reporting does not provide a clear picture of how that money is spent, what services cost, or the financial pressures facing the system,” Shtykalo said in a news release.

While some financial information is available, the reports do not provide a “complete, consistent, or easily understood” picture of how health-care funds are spent, the report said.

Information is fragmented across multiple organizations and reports and often lack the detail needed to fully understand service delivery costs, financial performance, and emerging financial risks.

In his report, Shtykalo says he observed shortcomings in annual reporting, inconsistencies in financial statement presentation and areas where significant costs are not clearly disclosed or easily understood.

“These issues limit the usefulness of financial information for decision-makers and the public,” he wrote.

The report found annual reports do not provide sufficient information for accountability, financial reporting does not clearly show the full cost of health services, some audited reporting provides limited value to decision-makers, gaps exist in compensation disclosure for physicians and financial pressures in the health system are increasing.

Health-care spending is Manitoba’s largest expenditure, the report said. In the fiscal year ending March 31, 2025, health spending was $9.6 billion, making up about 38 per cent of expenditures. Both health-care spending and overall provincial government expenditures in Manitoba increased by 28 per cent over the past five years.

The report says the province’s growing and aging population will lead to increased demands on the health-care system. Age, chronic conditions and disability deliver an increasing number of visits to health centres and emergency rooms, as well as referrals to specialists and followup rehabilitation.

As of July 1, 2025, 17.2 per cent of Manitobans were aged 65 or older, according to Shtykalo’s findings.

The report includes five recommendations to make health-sector financial information clearer, more consistent, more transparent and easier to understand.

In July Shtykalo released a report saying errors continue to occur in the province’s financial reporting. He said the system, in which deputy ministers oversee departments, is decentralized, and there’s a need for ongoing guidance and training.

nicole.buffie@freepress.mb.ca