Consolidated
Financial
Statements

AUDITOR'S REPORT

To the Legislative Assembly of the
Province of Ontario

I have audited the consolidated statement of financial position of the Province of Ontario as at March 31, 2006 and the consolidated statements of operations, change in net debt, and cash flow for the year then ended. These financial statements are the responsibility of the Government of Ontario. My responsibility is to express an opinion on these financial statements based on my audit.

I conducted my audit in accordance with Canadian generally accepted auditing standards. Those standards require that I plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. The audit also includes assessing the accounting principles used and significant estimates made by the Government, as well as evaluating the overall financial statement presentation.

In my opinion, these consolidated financial statements present fairly, in all material respects, the financial position of the Province as at March 31, 2006 and the results of its operations, the changes in its net debt, and its cash flows for the year then ended in accordance with Canadian generally accepted accounting principles.

Toronto, Ontario August 2, 2006	Jim McCarter, CA Auditor General

 

Province of Ontario
Consolidated Statement of Operations
For the year ended March 31 ($ Millions)	Budget1 2006	Actual 2006	Actual 2005
Revenues (Schedule 1)
Personal Income Tax	20,026	21,041	19,320
Retail Sales Tax	15,475	15,554	14,855
Corporations Tax	9,248	9,984	9,883
Employer Health Tax	4,033	4,197	3,886
Gasoline and Fuel Taxes	3,041	3,010	3,004
Ontario Health Premium	2,422	2,350	1,737
Other Taxes	3,481	3,781	3,290
Total Taxation	57,726	59,917	55,975
Government of Canada	13,173	13,251	11,882
Income from Investment in Government Business Enterprises (Schedule 8)	4,019	4,308	3,578
Other	6,769	6,749	6,406
	81,687	84,225	77,841
Expenses (Schedules 2 and 3)
Health	33,362	32,834	31,572
Education	11,640	11,599	10,859
Children's and Social Services	9,944	10,067	9,230
Interest on Debt	9,796	9,019	9,368
Environment, Resources and Economic Development	6,433	8,502	6,459
Training, Colleges and Universities	4,819	4,714	4,605
Justice	3,073	3,058	2,958
General Government and Other	4,416	4,134	4,345
	83,483	83,927	79,396
Reserve	1,000
Annual Surplus (Deficit)	(2,796)	298	(1,555)
Accumulated Deficit at Beginning of Year		(125,743)	(124,188)
Less: Net Assets of Broader Public Sector Organizations at Beginning of Year (Note 2, Schedule 9)		16,290	–
Accumulated Deficit at End of Year		(109,155)	(125,743)
See accompanying Notes and Schedules to the Financial Statements.
1 Amounts reported in 2005 Budget, which exclude the impact of consolidation of broader public sector organizations.

 

Province of Ontario
Consolidated Statement of Financial Position
As at March 31 ($ Millions)		2006		2005
Liabilities
Accounts Payable and Accrued Liabilities (Schedule 4)		13,272		13,629
Debt (Note 3)	154,906		156,377
Unamortized Foreign Exchange Gains	426		424
		155,332		156,801
Power Purchase Contracts (Note 5)		3,389		3,785
Nuclear Funding Liability (Note 5)		768		1,410
Pensions and Other Employee Future Benefits (Note 6)		1,686		1,747
Other Liabilities (Note 7)		3,858		5,146
		178,305		182,518
Financial Assets
Cash and Cash Equivalents		4,342		10,032
Temporary Investments (Note 8)		2,979		4,321
Accounts Receivable (Schedule 5)		6,447		6,164
Loans Receivable (Schedule 6)		6,851		6,364
Other Assets		2,588		2,473
Investment in Government Business Enterprises (Schedule 8)		13,170		12,243
		36,377		41,597
Net Debt		(141,928)		(140,921)
Non-Financial Assets
Net Assets of Broader Public Sector Organizations (Note 2, Schedule 9)		16,739		–
Tangible Capital Assets (Note 9)
		16,034		15,178
		32,773		15,178
Accumulated Deficit		(109,155)		(125,743)
Contingent Liabilities (Note 10) and Contractual Obligations (Note 11)
See accompanying Notes and Schedules to the Financial Statements.

 

Province of Ontario
Consolidated Statement of Change in Net Debt
For the year ended March 31 ($ Millions)	2006		2005
Annual Surplus (Deficit)		298		(1,555)
Acquisition of Tangible Capital Assets	(1,675)		(1,388)
Amortization of Tangible Capital Assets (Note 9)	815		801
Proceeds on Sale of Tangible Capital Assets	45		18
Loss (Gain) on Sale of Tangible Capital Assets	(41)		19
Increase in Net Assets of Broader Public Sector Organizations (Schedule 9)	(449)
			–
		(1,305)	(550)
Increase in Net Debt	(1,007)		(2,105)
Net Debt at Beginning of Year	(140,921)		(138,816)
Net Debt at End of Year	(141,928)		(140,921)
See accompanying Notes and Schedules to the Financial Statements.

 

Province of Ontario
Consolidated Statement of Cash Flow
For the year ended March 31 ($ Millions)	2006	2005
Operating Transactions
Annual Surplus (Deficit)	298	(1,555)
Amortization of Tangible Capital Assets (Note 9)	815	801
Loss (Gain) on Sale of Tangible Capital Assets	(41)	19
Income from Investment in Government Business Enterprises (Schedule 8)	(4,308)	(3,578)
Remittances from Government Business Enterprises (Schedule 8)	3,381	3,365
Decrease in Liability for Pensions and Other Employee Future Benefits (Note 6)	(61)	(53)
Decrease in Power Purchase Contracts (Note 5)	(396)	(236)
Decrease in Nuclear Funding Liability (Note 5)	(642)	(506)
Increase (Decrease) in Accounts Payable and Accrued Liabilities (Schedule 4)	(357)	2,468
Decrease in Other Items	(2,173)	(1,179)
Cash Applied to Operating Transactions	(3,484)	(454)
Capital Transactions
Acquisition of Tangible Capital Assets	(1,675)	(1,388)
Proceeds from Sale of Tangible Capital Assets	45	18
Increase in Net Assets of Broader Public Sector Organizations (Schedule 9)	(449)	–
Cash Applied to Capital Transactions	(2,079)	(1,370)
Investing Transactions
Decrease (Increase) in Temporary Investments (Note 8)	1,342	(1,387)
Cash Provided by (Applied to) Investing Transactions	1,342	(1,387)
Financing Transactions
Debt Issued	19,955	26,141
Debt Retired	(21,424)	(18,073)
Cash Provided by (Applied to) Financing Transactions	(1,469)	8,068
Net Increase (Decrease) in Cash and Cash Equivalents	(5,690)	4,857
Cash and Cash Equivalents at Beginning of Year	10,032	5,175
Cash and Cash Equivalents at End of Year	4,342	10,032
See accompanying Notes and Schedules to the Financial Statements

Notes to the Consolidated Financial Statements
(all tables in millions of dollars)

1. Summary of Significant Accounting Policies

Basis of Accounting

The Consolidated Financial Statements are prepared in accordance with the accounting principles for governments recommended by the Public Sector Accounting Board (PSAB) of the Canadian Institute of Chartered Accountants (CICA) and, where applicable, the recommendations of the Accounting Standards Board (AcSB) of the CICA.

Reporting Entity

These financial statements report the activities of the Consolidated Revenue Fund combined with those organizations that are controlled by the government as defined in PSAB standards.

Commencing April 1, 2005 public hospitals, specialty psychiatric hospitals, school boards and colleges, collectively referred to as the "Broader Public Sector (BPS) organizations", are included in the government reporting entity under the revised PSAB accounting standard. The BPS organizations are consolidated on a sector basis in these financial statements.

Other organizations that are controlled by the Province are individually consolidated provided they meet one of the following criteria: i) their revenues, expenses, assets or liabilities are greater than $50 million, or ii) their outside sources of revenues, deficit or surplus are greater than $10 million. A listing of these organizations is provided in Schedule 7.

The activities of smaller organizations that do not meet the above criteria are reflected in these financial statements through the accounts of the ministries responsible for them. Trusts administered by the government on behalf of other parties are excluded from the reporting entity but are disclosed in Note 12.

Principles of Consolidation

Government organizations, except for government business enterprises and broader public sector organizations, are consolidated on a line-by-line basis with the Consolidated Revenue Fund in these financial statements. Where necessary, adjustments are made to present the accounts of these organizations on a basis consistent with the accounting policies described below, and to eliminate significant inter-organization accounts and transactions.

Government business enterprises are defined as those government organizations that i) have the financial and operating authority to carry on a business, ii) have as their principal activity and source of revenue the selling of goods and services to individuals and non-government organizations and iii) are able to maintain their operations and meet their obligations from revenues generated outside the government reporting entity. The activities of government business enterprises are recorded in the financial statements using the modified equity method. Under this method, their combined net assets are included in the financial statements as Investment in Government Business Enterprises on the Consolidated Statement of Financial Position and their combined net income is shown as a separate item, Income from Investment in Government Business Enterprises, on the Consolidated Statement of Operations. Government business enterprises are reported in accordance with the accounting principles generally accepted for business enterprises.

Broader Public Sector organizations are recorded in the financial statements using the modified equity method. Under the modified equity method, their combined net assets are included on the Consolidated Statement of Financial Position as Net Assets of Broader Public Sector Organizations. Their combined net expenses, that is, the total annual expenses of all BPS organizations net of revenues they receive from sources other than the Province, are included on a sector basis in Expenses on the Consolidated Statement of Operations. The combined net expenses of hospitals are included with Health expenses, school board net expenses are included with Education expenses, and college net expenses are included in Training, Colleges and Universities expenses in the Consolidated Statement of Operations. Significant gains and losses resulting from inter-organizational transactions occurring from within the government reporting entity are eliminated upon consolidation. BPS organizations are reported in accordance with the accounting principles generally accepted for their sector, except that the school boards sector has been adjusted to a full accrual basis of accounting upon consolidation.

Measurement Uncertainty

Uncertainty in the determination of the amount at which an item is recognized in the financial statements is known as measurement uncertainty. Such uncertainty exists when it is reasonably possible that there could be a material variance between the recognized amount and another reasonably possible amount.

Measurement uncertainty in these financial statements and notes thereto exists in the valuation of the power purchase contracts, the accruals for pensions and other employee future benefits obligations, the value of tangible capital assets, and the accruals for personal income and corporations tax revenues.

The nature of the uncertainty in the valuation of the power purchase contracts arises from fluctuations in market prices that would impact this liability. The uncertainty related to pensions and other employee future benefits accruals arises because actual results may differ significantly from the Province's best estimate of expected results (for example, difference between actual results and actuarial assumptions regarding return on investment of pension fund assets and health care cost trend rates for retiree benefits). Uncertainty in the value of tangible capital assets exists because estimates of historical cost are used when actual cost is unknown and because of differences between estimated useful lives and actual useful lives. Uncertainty related to the accrual for personal income tax and corporations tax revenues arises because of the possible differences between the estimated and actual economic growth and the impact of future tax assessments on taxes receivable.

Estimates are based on the best information available at the time of preparation of the financial statements and are reviewed annually to reflect new information as it becomes available.

Revenues

Revenues are recognized in the fiscal year that the events giving rise to the revenues occur and they are earned. Amounts received prior to the end of the year, which relate to revenues that will be earned in a subsequent fiscal year, are deferred and reported as liabilities.

Expenses

Expenses are recognized in the fiscal year that the events giving rise to the expense occur and resources are consumed. Expenses include:

• The incurrence of liabilities for goods or services consumed;
• Transfer payments authorized and owing to recipients;
• Interest accruing on debt;
• Pension and other employee future benefits;
• The amortization of tangible capital assets; and
• Losses in the value of assets.

Transfer payments are recognized in the year during which the payment is authorized, all eligibility criteria are met and a reasonable estimate of the amount can be made.

Interest on Debt includes the following: i) interest on outstanding debt net of interest income on investments and loans; ii) amortization of foreign exchange gains or losses; iii) amortization of debt discounts, premiums and commissions; iv) amortization of deferred hedging gains and losses; and v) servicing and other costs.

Employee future benefits such as pensions, other retirement benefits and entitlements upon termination are recognized as expenses over the years in which the benefits are earned by employees. These expenses are the government's share of the cost of benefits including the current year's cost of benefits, interest on the net benefits liability or surplus, amortization of actuarial gains or losses, cost of or gain on plan amendment and other adjustments.

Other employee future benefits are either recognized in the period the event that obligates the government occurs or when the benefits are earned and accumulated by employees.

The costs of buildings and transportation infrastructure owned by the Province are amortized and recognized as expenses over their estimated useful lives on a straight-line basis. Amortization of tangible capital assets owned by government organizations consolidated in these financial statements is also included in expenses.

The Province is phasing in the implementation of PSAB recommendations on tangible capital assets. Consequently, the costs of acquisition of other tangible capital assets owned by the Province, such as furniture and vehicles, continue to be recorded as expenses. Also, for significant capital leases entered into by the Province, an amount equal to the present value of the minimum lease payments required over the term of the lease continues to be recorded as an expense at the inception of the lease, with an offsetting liability recorded for the lease obligation.

Liabilities

Liabilities are recorded to the extent that they represent present obligations of the government to outside parties as a result of events and transactions occurring prior to the end of the fiscal year. The settlement of liabilities will result in sacrifice of economic benefits in the future.

Liabilities include probable losses on loan guarantees issued by the government, and contingencies when it is likely that a loss will be realized and the amount can be reasonably determined.

Liabilities also include obligations to government business enterprises.

Debt

Debt is comprised of treasury bills, commercial paper, medium and long-term notes, savings bonds, debentures and loans.

Debt denominated in foreign currencies that has been hedged is recorded at the Canadian dollar equivalent using the rates of exchange established by the terms of the hedge agreements. Other foreign currency debt, liabilities and assets are translated to Canadian dollars at year-end rates of exchange and any exchange gains or losses are amortized over the remaining term to maturity.

The Province uses derivative financial instruments (derivatives) for the purposes of minimizing interest costs and to manage risk. The Province does not use derivatives for speculative purposes. Derivatives are financial contracts, the value of which is derived from underlying instruments. Gains or losses arising from derivative transactions are deferred and amortized over the remaining life of the related debt issue.

Pensions and Other Employee Future Benefits

The liabilities for pensions and other employee future benefits are calculated on an actuarial basis using the government's best estimates of future inflation rates, investment returns, employee salary levels and other underlying assumptions, and where applicable, the government's borrowing rate. When actual plan experience of pensions, other retirement benefits and termination pay differs from that expected, or when assumptions are revised, actuarial gains and losses arise. These gains and losses are amortized over the expected average remaining service life of plan members.

The liabilities for Employee Future Benefits such as pensions, other retirement benefits and termination pay represent the government's share of the actuarial present values of benefits attributed to services rendered by employees and former employees, less its share of the assets of the plans. In addition, the liability includes the Province's share of the unamortized balance of actuarial gains or losses, and other adjustments primarily for differences between the fiscal year-ends of the pension plans and the Province.

Assets

Assets are resources controlled by the government from which it will derive future benefits. Assets are recognized in the year the events giving rise to the government's control of the benefit occur.

Financial Assets

Financial assets are resources that can be used to discharge existing liabilities or finance future operations. They include cash, temporary investments, accounts receivable, loans receivable, advances, and investments in government business enterprises.

Temporary investments are recorded at the lower of cost or fair value.

Accounts receivables are recorded at cost. Valuation allowances are made when collectibility is considered doubtful.

Loans receivable with significant concessionary terms are considered in part as grants and are recorded on the date of issuance at face value discounted by the amount of the grant portion. The grant portion is recognized as an expense at the date of issuance of the loan. The amount of the loan discount is amortized to revenue over the term of the loan. Loans receivable include amounts owing from government business enterprises.

Investment in Government Business Enterprises represents the net assets of government business enterprises recorded on the modified equity basis as described under Principles of Consolidation.

Net Assets of Broader Public Sector Organizations

The net assets of the broader public sector (BPS) organizations are comprised of tangible capital assets and financial assets of BPS organizations net of their liabilities. While the assets of BPS organizations are consolidated, they are owned, managed and operated by members of the BPS organizations. Tangible capital assets of hospitals and colleges are recorded at historical cost in their financial statements. Although school boards do not presently record tangible capital assets in their financial statements, their financial information has been adjusted upon consolidation to recognize the estimated historical cost of their land and building assets.

Tangible Capital Assets

Tangible capital assets are recorded at historical cost. Historical cost includes the costs directly related to the acquisition, design, construction, development, improvement or betterment of tangible capital assets. Cost includes overheads directly attributable to construction and development but excludes interest. Estimated historical cost was used to record existing tangible capital assets if actual cost was unknown when the Province first implemented tangible capital assets accounting.

As the Province is phasing in the implementation of PSAB recommendations on provincially owned tangible capital assets, the following categories are included under tangible capital assets and recorded at historical cost: land, buildings and transportation infrastructure owned by the Province; and all tangible capital assets owned by government organizations that are consolidated in these financial statements. The remaining other tangible capital assets comprised primarily of leased assets, computers, equipment, vehicles and furniture are expensed as acquired. The Province intends to apply PSAB's recommendations on the remaining other tangible capital assets in 2008-09.

Maintenance and repair costs are recognized as an expense when incurred. Betterments or improvements that significantly increase or prolong the service life or capacity of a tangible capital asset are capitalized.

Trust Funds

Trust funds that have been deposited into the Consolidated Revenue Fund are included in Other Liabilities on the Consolidated Statement of Financial Position.

2. Accounting Policy Changes

In August 2003, PSAB revised its reporting entity standard for fiscal years commencing April 1, 2005. The government reporting entity is comprised of organizations that are controlled by the government as defined in the new standard. Accordingly, the Province's reporting entity has been expanded to include public hospitals, specialty psychiatric hospitals, school boards, and colleges, collectively referred to as Broader Public Sector (BPS) organizations.

The net book value of the net assets of the BPS organizations as at April 1, 2005 was established at $16.3 billion. The Province's accumulated deficit as at April 1, 2005 has been correspondingly reduced. Adoption of the new accounting policy resulted in a $449 million decrease in expenses for the 2005-06 fiscal year.

The comparative results from the 2004-05 fiscal year have not been restated to reflect the revised accounting policy, as its effect on the previous year's financial results is not reasonably determinable. Consequently, comparisons between the current and prior fiscal years may not be meaningful.

3. Debt

The Province borrows in both domestic and international markets. Total Debt of $154.9 billion, as at March 31, 2006 (2005, $156.4 billion), is composed of bonds and debentures issued in both the short-term and long-term public capital markets and non-public debt held by certain federal and provincial public sector pension plans, government agencies and private financial institutions. Debt was comprised of Debt Issued for Provincial Purposes of $126.9 billion (2005, $128.9 billion) and Ontario Electricity Financial Corporation (OEFC) debt of $28.0 billion (2005, $27.5 billion). The table on page 50 presents the maturity schedule of the Province's outstanding debt, by currency of repayment, expressed in Canadian dollars, and reflects the effects of related derivative contracts.

Debt As at March 31						2006	2005
Currency	Canadian Dollar	U.S. Dollar	Japanese Yen	Euro1	Other Currency2	Total	Total
Maturing in:
2006							$24,073
2007	$17,646	3,315	460	–	–	$21,421	14,864
2008	8,078	5,397	320	–	224	14,019	12,777
2009	14,876	3,538	–	795	207	19,416	19,276
2010	8,431	1,654	717	1,443	870	13,115	12,758
2011	6,002	–	–	–	252	6,254
1–5 years	55,033	13,904	1,497	2,238	1,553	74,225	83,748
6–10 years	21,772	5,214	99	1,188	1,707	29,980	28,994
11–15 years	4,694	–	–	–	–	4,694	2,996
16–20 years	11,766	–	–	–	–	11,766	10,156
21–25 years	12,843	–	–	–	–	12,843	14,993
26–403 years	21,398	–	–	–	–	21,398	15,490
Total4, 5	$127,506	19,118	1,596	3,426	3,260	$154,906	$156,377
Debt Issued for Provincial Purposes6	104,284	14,924	1,596	3,426	2,643	126,873	128,859
OEFC Debt	23,222	4,194	–	–	617	28,033	27,518
Total4, 5	$127,506	19,118	1,596	3,426	3,260	$154,906	$156,377
Effective interest rates (weighted average)
2006	6.39%	5.04%	4.09%	5.61%	4.44%	6.14%	–
2005	6.64%	5.31%	5.20%	5.49%	4.72%	–	6.36%
1 Euro debt includes debt issues in Euro and French franc legacy currency.
2 Other currencies comprise: Australian dollar, New Zealand dollar, Pound sterling, Swiss franc, Hong Kong dollar and South African rand.
3 The longest term to maturity is to March 1, 2045.
4 Total foreign currency denominated debt as at March 31, 2006, was $27.4 billion (2005, $32.3 billion). Of that, $384 million (2005, $400 million) was unhedged U.S. dollar denominated debt, $695 million (2005, $800 million) was unhedged Japanese yen denominated debt and $23 million (2005, Nil) was unhedged Swiss franc denominated debt; the remaining balance of $26.3 billion or 95.9% (2005, $31.1 billion or 96.3%) was fully hedged to Canadian dollars.
5 Total debt includes issues totalling $4.8 billion (2005, $2.9 billion), which have embedded options exercisable by either the Province or the bond holder under specific conditions.
6 Debt denominated in Canadian dollars as at March 31, 2006 includes $1.0 billion (2005, $1.0 billion) of long-term debt purchased by the Province but not cancelled.

 

Debt As at March 31	2006	2005
Debt Payable to:
Public Investors	$130,760	$130,988
Canada Pension Plan Investment Fund	10,233	10,233
Ontario Teachers' Pension Plan	7,596	8,666
Public Service Pension Plan	2,705	2,886
Ontario Public Service Employees Union Pension Fund	1,285	1,371
Canada Mortgage and Housing Corporation	960	1,003
Others1	1,367	1,230
Total	$154,906	$156,377
1 Debt payable to others includes debt payable to Ontario Municipal Employees' Retirement Fund, Colleges of Applied Arts and Technology Pension Plan and Ryerson Retirement Pension Plan. It also includes the School Board Trust Debt, debt of Ontario Immigrant Investor Corporation and Royal Ontario Museum.

Fair value of debt issued approximates amounts at which debt instruments could be exchanged in a current transaction between willing parties. In valuing the Province's debt, fair value is estimated using discounted cash flows and other valuation techniques and is compared to public market quotations where available. These estimates are affected by the assumptions made concerning discount rates and the amount and timing of future cash flows.

The estimated fair value of debt at March 31, 2006 was $170.6 billion (2005, $172.3 billion). This is higher than the book value of $154.9 billion (2005, $156.4 billion) because current interest rates are generally lower than the interest rates at which the debt was issued. The fair value of debt does not reflect the effect of related derivative contracts.

School Board Trust Debt

A School Board Trust was created in June 2003 to permanently refinance debt incurred by 55 school boards. The Trust issued 30-year sinking fund debentures amounting to $891 million in June 2003. The Trust provided $882 million of the proceeds to the 55 school boards in exchange for the irrevocable right to receive future transfer payments from the Province related to this debt. These amounts will be reduced over the 30 year period by the transfer payments made by the Ministry of Education to the Trust under the School Board Operating Grant program. As at March 31, 2006, the outstanding amount of $854 million (2005, $867 million) advanced to school boards is included in Other Assets and outstanding debentures of $863 million (2005, $876 million) are included in Debt.

4. Risk Management and Derivative Financial Instruments

The Province employs various risk management strategies and operates within defined risk exposure limits to ensure exposure to risk is managed in a prudent and cost effective manner. A variety of strategies are used, including the use of derivative financial instruments ("derivatives").

Derivatives are financial contracts, the value of which is derived from underlying instruments. The Province uses derivatives to hedge and to minimize interest costs. Hedges are created primarily through swaps, which are legal arrangements under which the Province agrees with another party to exchange cash flows based upon one or more notional amounts using stipulated reference interest rates for a specified period. Swaps allow the Province to offset its existing obligations and thereby effectively convert them into obligations with more desirable characteristics. Other derivative instruments used by the Province include forward foreign exchange contracts, forward rate agreements, futures, options, caps and floors.

Foreign exchange or currency risk is the risk that foreign currency debt principal and interest payments and foreign currency transactions will vary in Canadian dollar terms due to fluctuations in foreign exchange rates. To manage currency risk, the Province uses derivative contracts including foreign exchange forward contracts, futures, options and swaps to convert foreign currency cash flows into Canadian dollar denominated cash flows. Most of the derivative contracts hedge the underlying debt by matching all the critical terms to achieve effectiveness. In the instances where the term of foreign exchange forward contracts used for hedging is shorter than the term of the underlying debt, the effectiveness is maintained by continuously rolling the foreign exchange forward contract over the remaining term of the underlying debt, or until replaced with a long-term derivative contract.

The current policy allows the net of unhedged foreign currency debt principal and foreign currency holdings to reach a maximum of 5 per cent of Debt Issued for Provincial Purposes and OEFC debt. At March 31, 2006, the respective unhedged levels were 0.8 and nil per cent (2005, 0.8 and 0.1 per cent). For every one-cent increase in the Canadian dollar versus the U.S. dollar, there would be an increase in debt amount of $3 million (2005, $3 million) and an increase in Interest on Debt of $1.7 million (2005, $1.4 million). For every one Japanese yen decrease versus the Canadian dollar, there would be an increase in debt amount of $7 million (2005, $9 million) and an increase in Interest on Debt of $2.0 million (2005, $2.1 million). Total foreign exchange gains recognized in the Statement of Operations for 2005-06 were $112 million (2004-05, $56 million).

Interest on debt expense may also vary as a result of changes in interest rates. In respect of Debt Issued for Provincial Purposes, the risk is measured as interest rate resetting risk which is the net of floating rate exposure, liquid reserves and fixed rate debt maturing within the next 12-month period as a percentage of Debt Issued for Provincial Purposes. In respect of OEFC debt, the risk is the floating rate exposure as a percentage of OEFC debt. Depending on market conditions, the Province creates or reduces its exposure to interest rate changes by issuing or retiring short-term debt, or by entering into or closing out derivative positions. The current policy limits interest rate resetting risk for Debt Issued for Provincial Purposes to a maximum of 25 per cent and floating rate risk for OEFC debt to a maximum of 20 per cent.

As at March 31, 2006, interest rate resetting risk for Debt Issued for Provincial Purposes was 14.1 per cent (2005, 10.2 per cent) while floating rate risk for OEFC debt was 9.6 per cent (2005, 8.5 per cent). Based on floating rate interest-bearing financial instruments on hand at the balance sheet date plus planned issues for the coming year, a one per cent (100 basis points) increase in interest rates would result in an increase in Interest on Debt of $250 million (2005, $250 million).

Liquidity risk is the risk that the Province will not be able to meet its current short-term financial obligations. To reduce liquidity risk, the Province maintains liquid reserves, that is, cash and temporary investments (Note 8), at levels that will meet future cash requirements and will give the Province flexibility in the timing of issuing debt. In addition, the Province has short-term note programs as alternative sources of liquidity.

The table below presents a maturity schedule of the Province's derivatives, by type, outstanding at March 31, 2006, based on the notional amounts of the contracts. Notional amounts represent the volume of outstanding derivative contracts and are not indicative of credit risk, market risk or actual cash flows.

Derivative Portfolio Notional Value As at March 31									2006	2005
Maturity in Fiscal Year	2007	2008		2009	2010	2011	6-10 Years	Over 10 Years	Total	Total
Swaps:
Interest rate	$8,648		$13,272	$10,403	$7,769	$2,111	$18,286	$4,246	$64,735	$69,116
Cross currency	4,596		4,451	4,630	5,053	502	9,203	–	28,435	30,947
Forward foreign exchange contracts	3,639		–	–	–	–	–	–	3,639	5,241
Caps and floors	444		–	–	88	–	–	–	532	761
Futures	–		–	–	–	–	–	–	–	62
Total	$17,327		$17,723	$15,033	$12,910	$2,613	$27,489	$4,246	$97,341	$106,127

The use of derivatives introduces credit risk, which is the risk of a counterparty defaulting on contractual derivative obligations in which the Province has an unrealized gain. The Province manages its credit risk exposure from derivatives by, among other things, dealing only with high credit quality counterparties and regularly monitoring compliance to credit limits. In addition, the Province enters into contractual agreements ("master agreements") that provide for termination netting and, if applicable, payment netting with virtually all of its counterparties. Gross credit risk exposure represents the loss that the Province would incur if every counterparty to which the Province had credit risk exposure were to default at the same time, and the contracted netting provisions were not exercised or could not be enforced. Net credit risk exposure is the loss including the mitigating impact of these netting provisions.

The table below presents the credit risk associated with the derivative financial instrument portfolio, measured through the replacement value of derivative contracts, at March 31, 2006.

Credit Risk Exposure As at March 31	2006	2005
Gross credit risk exposure1	$1,507	$1,865
Less: Netting2	(1,395)	(1,618)
Net Credit Risk Exposure	$112	$247
1 Gross credit risk exposure is the gross credit exposure to counterparties with net positive exposure (that is, the Province has an unrealized gain).
2 "Netting" is the gross negative credit exposure to counterparties with net positive credit exposures covered by master agreements providing for close out netting when contracts do not have co-terminus settlement dates.

5. Ontario Electricity Financial Corporation Liabilities

The Ontario Electricity Financial Corporation (OEFC) is consolidated as a government organization in these financial statements. In addition to the current liabilities and long-term debt of OEFC, recorded in these financial statements under Accounts Payable and Accrued Liabilities and Debt respectively, the following liabilities of OEFC are also reflected in these financial statements:

i)  Power Purchase Contracts

Power purchase contracts and related loan agreements were entered into by Ontario Hydro with non-utility generators (NUGs) located in Ontario. As the legal continuation of Ontario Hydro, OEFC is the counterparty to these contracts. A liability arose because these contracts, expiring on various dates to 2048, provided for the purchase of power at prices that were expected to be in excess of the market price.

The NUG liability had been valued at $4.3 billion on a discounted cash-flow (DCF) basis since Ontario Hydro was continued as OEFC on April 1, 1999. Prior to open access to the electricity market in May 2002, power purchased from NUGs was resold at cost to the revenue pool managed by Ontario Power Generation Inc. (OPG). After the market opened, OEFC sustained annual losses on power purchased from NUGs. The DCF model was updated as of March 31, 2003, which reduced the estimated liability, by $422 million to $3.7 billion. The revaluation change is being amortized to operations over a 10-year period.

Under the Electricity Restructuring Act, 2004, effective January 1, 2005, OEFC began receiving actual contract prices for power from ratepayers and will no longer incur losses on these power purchase contracts. The Ministry of Finance estimates that the bulk of the liability will be eliminated over 12 years as existing electricity contracts expire. The decrease in the liability for power purchase contracts for 2005-06 was $396 million (2004-05, $236 million). This results in a liability of $3.4 billion as at March 31, 2006 (2005, $3.8 billion).

ii)  Nuclear Funding Liability

OEFC as the continued Ontario Hydro assumed a liability in the amount of $2.4 billion representing nuclear waste management and asset removal liabilities that were incurred prior to April 1, 1999. The Province and OPG are parties to the Ontario Nuclear Funds Agreement (ONFA) to establish, fund and manage segregated funds to ensure that sufficient funds are available to pay for costs of nuclear waste management and station decommissioning.

The board of directors of OEFC approved the funding of the Decommissioning Segregated Fund, established by OPG, thus discharging the nuclear funding liability over a four-year period. OEFC contributed $1.2 billion towards the fund liability on July 24, 2003, $600 million on March 31, 2005 and $709 million on October 4, 2005.

Interest is accrued at a rate equal to the Ontario Consumer Price Index plus 3.25 per cent in accordance with the terms of ONFA which were finalized on July 24, 2003. A commitment-in-lieu of $768 million as at March 31, 2006 (2005, $1.4 billion) has been provided to the Decommissioning Segregated Fund.

6. Pensions and Other Employee Future Benefits

Pensions and Other Employee Future Benefits Liability (Asset) As at March 31	2006 Pensions	2006 Other Employee Future Benefits	2006 Total	2005 Total
Obligation for benefits	$59,004	$5,508	$64,512	$59,566
Less: plan fund assets	(64,421)	(325)	(64,746)	(60,389)
Unamortized actuarial gains (losses)	1,602	(1,156)	446	1,170
Adjustments1	1,474	–	1,474	1,400
Total	($2,341)	$4,027	$1,686	$1,747
1 Adjustments consist of:
i) differences for amounts reported by the pension plans at December 31, instead of the Province's year-end of March 31;
ii) unamortized difference between employer and employee contributions for jointly sponsored pension plans;
iii) unamortized employee contribution reductions for solely sponsored plans;
iv) unamortized initial unfunded liabilities of jointly sponsored plans; and
v) amounts payable by the Province that are reflected as contributions in the pension plan assets.

 

Pensions and Other Employee Future Benefits Expense For the year ended March 31	2006 Pensions	2006 Other Employee Future Benefits	2006 Total	2005 Total
Cost of benefits	$1,506	$262	$1,768	$1,606
Amortization of actuarial losses (gains)	(432)	45	(387)	(250)
Employee contributions	(173)	–	(173)	(158)
Cost of (gain on) plan amendments	44	211	255	(5)
Interest expense (revenue)	(310)	200	(110)	(178)
Adjustments1	(113)	–	(113)	142
Total2	$522	$718	$1,240	$1,157
1 Adjustments for Pensions consist of amortization of:
i) the difference between employer and employee contributions for jointly sponsored pension plans;
ii) employee contribution reductions for solely sponsored plans; and
iii) initial unfunded liability of jointly sponsored pension plans.
Adjustments for Other Employee Future Benefits include the increase in Other Employee Future Benefits Liability as at April 1, 2004 as a result of a change in estimation method.
2 Total Pensions and Other Employee Future Benefits Expense is reported in Schedule 2. The Teachers' Pension expense of $295 million (2004–05, $240 million) is included in the Education expense in the Consolidated Statement of Operations and is disclosed separately in Schedule 3. The Public Service and OPSEU Pension expense of $227 million (2004–05, $237 million) and Other Employee Future Benefits — Retirement Benefits expense of $502 million (2004–05, $221 million) are included in the General Government and Other expense in the Consolidated Statement of Operations. The combined total of Public Service and OPSEU Pension and Other Employee Future Benefits — Retirement Benefits expense of $729 million (2004–05, $458 million) is disclosed separately in Schedule 3. The remainder of Other Employee Future Benefits expense is included in the relevant ministries' expenses in Schedule 3.

Pensions

The Province sponsors several pension plans. It is the sole sponsor of the Public Service Pension Plan (PSPP) and joint sponsor of the Ontario Public Service Employees Union (OPSEU) Pension Plan, and the Ontario Teachers' Pension Plan (OTPP).

These three plans are contributory defined benefit plans that provide Ontario government employees and elementary and secondary school teachers and administrators with a guaranteed amount of retirement income. Benefits are based primarily on the best five-year average salary of members and their length of service, and are indexed to changes in the Consumer Price Index to provide protection against inflation. Plan members normally contribute between 7 and 9 per cent of their salary to these plans. The Province matches these contributions.

Funding of these plans is based on statutory actuarial funding valuations undertaken at least every three years. The Province contributed $740 million to the OTPP in 2005-06 (2004-05, $708 million), $136 million to the PSPP (2004-05, $124 million) and $143 million to the OPSEU Pension Plan (2004-05, $135 million). During calendar year 2005, the OTPP paid benefits, including transfers to other plans of $3.6 billion (2004, $3.4 billion), the PSPP paid $793 million (2004, $799 million) and the OPSEU Pension Plan paid $524 million (2004, $493 million). Under agreements between the Province and OPSEU, and between the Province and the Ontario Teachers' Federation (OTF), gains and losses arising from statutory actuarial funding valuations are shared by the co-sponsors.

The government's best estimate of the future annual inflation rate used in the pension and other employee future benefits calculations is 2.5 per cent, the salary escalation rate is 3.5 per cent, the discount rate and the expected rate of return on pension plan assets are 6.75 per cent (2005, 7 per cent) for OTPP, 6.5 per cent for PSPP and 6.75 per cent for OPSEU Pension Plan. Actuarial gains or losses are amortized over periods of 10 to 13 years.

The Province is also responsible for sponsoring the Ontario Teachers' Retirement Compensation Arrangement and the Public Service Supplementary Benefits Plan. Expenses and liabilities of these plans are included in the Pensions Expense and Pensions Liability reported in the above tables.

Other Employee Future Benefits

Other Employee Future Benefits are non-pension retirement benefits, post-employment benefits and compensated absences. The discount rate used in the Other Employee Future Benefits (except retirement benefits) calculation for 2005-06 is 4.65 per cent (2004-05, 5.25 per cent).

Retirement Benefits

The Province provides dental, basic life insurance, supplementary health and hospital benefits to retired employees through a self-insured, unfunded defined benefit plan. The Province paid $119 million for benefits under the plan in 2005-06 (2004-05, $95 million). The liability for non-pension retirement benefits of $2.5 billion as at March 31, 2006 (2005, $2.1 billion) is included in the Other Employee Future Benefits Liability. The expense for 2005-06 of $502 million (2004-05, $221 million) is included in the Other Employee Future Benefits Expense.

The discount rate used in the other retirement benefits calculation for 2005-06 is 5.15 per cent (2004-05, 5.75 per cent).

During the year, the Province entered into an agreement with OPSEU to change various supplemental health benefits. The cost of these changes of $211 million is included in the 2005-06 Other Employee Future Benefits Expense.

Post-Employment Benefits

The Province provides employees who have completed 5 years of service, termination pay equal to one week's salary for each year of service up to a maximum of 50 per cent of their annual salary. Employees who have completed one year of service but less than 5 years are also entitled to termination pay in the event of death, retirement or release from employment. The termination pay benefits are unfunded and are administered by the Province. The Province paid out $49 million in termination pay in 2005-06 (2004-05, $43 million). The liability for termination pay of $805 million as at March 31, 2006 (2005, $777 million) is included in the Other Employee Future Benefits Liability. The expense for 2005-06 of $76 million (2004-05, ($39 million) including a $112 million reduction in the liability as a result of a change in estimation method) is included in the Other Employee Future Benefits Expense.

The Province also provides on a self-insured basis workers' compensation benefits, long-term disability benefits and regular benefits to employees who are on workers' compensation and/or long-term disability. The liability for workers' compensation of $360 million as at March 31, 2006 (2005, $349 million) net of deposits of $3 million (2005, $3 million) is included in the Other Employee Future Benefits Liability. The expense for 2005-06 of $53 million (2004-05, $120 million) including a $41 million payment made in 2005-06 (2004-05, $39 million) is included in the Other Employee Future Benefits Expense. The 2004-05 expense included a $92 million increase in the liability as a result of a change in estimation method.

The unfunded liability for long-term disability benefits of $209 million as at March 31, 2006 (2005, $183 million) is net of deposits of $322 million (2005, $321 million), and is included in the Other Employee Future Benefits Liability. The 2005-06 expense of $82 million (2004-05, $232 million including the impact of compliance with PSAB recommendations on long-term disability benefits) is included in the Other Employee Future Benefits Expense. A $56 million payment for long-term disability benefits was made in 2005-06 (2004-05, $47 million).

7. Other Liabilities

Other Liabilities As at March 31	2006	2005
Deferred Revenue:
Federal Transfers	$1,407	$2,346
Vehicle & Driver Licences	579	322
Other	562	582
Total Deferred Revenue	2,548	3,250
Electricity Consumer Price Protection Fund	–	528
Other Funds and Liabilities	1,310	1,368
Total	$3,858	$5,146

Other Liabilities include deferred revenues, Electricity Consumer Price Protection Fund (remaining surplus in discontinued fund to be returned to consumers), pension and benefit funds related to the Provincial Judges' Pension Fund and the Deputy Ministers' Supplementary Benefit Account, externally restricted funds and other miscellaneous liabilities.

Deferred Revenue — Federal Transfers
		Amortized to Revenue		Deferred Revenue	Amortized to Revenue
	Total Transfer Received	2004–05 and prior	2005–06	2005–06	2006–07	2007–08 and thereafter
Wait Times Reduction 2004–05	$1,655	$242	$243	$1,170	$467	$703
Public Health and Immunization 2003-04	156	50	53	53	53	–
Other Federal Transfers	190	2	4	184	11	173
Total	$2,001	$294	$300	$1,407	$531	$876

The above federal transfers were received by the Province and are intended to provide funding for provincial expenditures over several accounting periods. The Wait Times Reduction Fund and the Public Health and Immunization Trust are recognized as revenue in the periods identified by the federal government. They have been used to fund health care expenditures including grants to hospitals.

The Province provides a two-year vehicle licence plate renewal option and multi-year driver licence renewals (two years for seniors and five years for all others). Amounts received under these multi-year renewals are recognized as revenue over the periods covered by the licences. During the year, the Province refined the method of estimating deferred revenue for vehicle and driver licences. Consequently, the deferred revenue balance as at March 31, 2006 increased by $257 million from March 31, 2005.

8. Temporary Investments

Temporary Investments As at March 31	2006	2005
Temporary investments	$7,327	$5,644
Add: assets purchased under resale agreements	80	2,594
Less: assets sold under repurchase agreements	(4,428)	(3,917)
Total	$2,979	$4,321

The fair value of temporary investments, including assets purchased and sold under resale and repurchase agreements, at March 31, 2006 is $3.1 billion (2005, $4.4 billion). Temporary investments primarily consist of investments in government bonds. Fair value is determined using quoted market prices.

A resale agreement is an agreement between two parties to purchase and subsequently resell a security at a specified price on a specified date. A repurchase agreement is an agreement between two parties to sell and subsequently repurchase a security at a specified price on a specified date.

9. Tangible Capital Assets

Tangible Capital Assets As at March 31	2006 Cost	2006 Accumulated Amortization	2006 Net Book Value	2005 Net Book Value
Land	$5,366	$ –	$5,366	$5,036
Buildings	4,151	1,360	2,791	2,684
Transportation Infrastructure	11,963	5,031	6,932	6,566
Other	2,115	1,170	945	892
Total	$23,595	$7,561	$16,034	$15,178

Land includes land acquired for transportation infrastructure, parks, buildings and other program use, and land improvements that have an indefinite life and are not being amortized. Land excludes Crown lands acquired by right.

Buildings include administrative and service structures, and buildings under construction, but leased premises are excluded.

Transportation infrastructure includes provincial highways, railways, bridges and related structures and facilities, but excludes land and buildings.

Other includes railway equipment, computer equipment, vehicles, furniture, and administrative and service equipment owned by government organizations that are consolidated. Similar assets owned by provincial ministries will be included in 2007-08. Works of art and historical treasures including the Legislative Building are excluded from tangible capital assets.

All tangible capital assets, except buildings under construction, land and land improvements with an indefinite life, are being amortized on a straight-line basis over their estimated useful lives. Amortization expense for the fiscal year 2005-06 totaled $815 million (2004-05, $801 million). The useful lives of the Province's tangible capital assets have been estimated as:

Buildings	20 to 40 years
Transportation Infrastructure	10 to 60 years
Other	3 to 25 years

10. Contingent Liabilities

Obligations Guaranteed by the Province

The authorized limit for loans guaranteed by the Province as at March 31, 2006 was $3.8 billion (2005, $3.9 billion). The outstanding loans guaranteed and other contingencies amounted to $3.3 billion at March 31, 2006 (2005, $3.2 billion). A provision of $504 million (2005, $409 million) based on an estimate of the likely loss arising from guarantees under the Student Support Programs has been reflected in these Consolidated Financial Statements.

Ontario Nuclear Funds Agreement

The Province, Ontario Power Generation Inc. (OPG), a wholly owned subsidiary, and certain subsidiaries of OPG, are parties to the Ontario Nuclear Funds Agreement (ONFA), to establish, fund, and manage segregated funds to ensure sufficient funds are available to pay the costs of nuclear station decommissioning and nuclear used fuel waste management.

Under ONFA, the Province is liable to make payments should the cost estimate for nuclear used fuel waste management rise above specified thresholds, for a fixed volume of used fuel. The likelihood and amount by which the cost estimate could rise above these thresholds cannot be determined at this time. The cost estimate will be updated periodically, to reflect new developments in the management of nuclear used fuel waste.

As well, under ONFA, the Province guarantees a return of 3.25 per cent over the Ontario Consumer Price Index for the nuclear used fuel waste management fund. If the earnings on assets in that fund exceed the guaranteed rate, the Province is entitled to the excess.

Two agreements are in place to satisfy the Canadian Nuclear Safety Commission (CNSC) licensing requirements for financial guarantees in respect of OPG's nuclear station decommissioning and nuclear waste management obligations. One agreement gives the CNSC access to the segregated funds established under ONFA. The other agreement provides a direct provincial guarantee to the CNSC on behalf of OPG. This guarantee, for up to $1.5 billion, relates to the portion of the decommissioning and waste management obligations not funded by the segregated funds. In return, the Province receives from OPG an annual fee equal to 0.5 per cent of the value of the direct provincial guarantee.

Social Housing — Loan Insurance Agreements

For all non-profit housing projects in the provincial portfolio, the Province is liable to indemnify and reimburse the Canada Mortgage and Housing Corporation (CMHC) for any net costs, including any environmental liabilities, incurred as a result of project defaults, directly or indirectly, through the Ministry of Municipal Affairs and Housing or the Ontario Housing Corporation.

At March 31, 2006, there were $8.6 billion (2005, $8.8 billion) of mortgage loans outstanding. As operating subsidies provided are sufficient to ensure that all mortgage payments can be made when due, default is unlikely. To date, there have been no claims for defaults on insured mortgage loans.

Claims Against the Crown

There are claims outstanding against the Crown of which 94 (2005, 82) are for amounts over $50 million. These claims arise from legal action, either in progress or threatened, in respect of aboriginal land claims, breach of contract, damages to persons and property and like items. The cost to the Province, if any, cannot be determined because the outcome of these actions is uncertain.

11. Contractual Obligations

The nature of the government's activities results in significant multi-year contracts and obligations, including the following:

• Ontario Power Generation Inc.'s future contributions under the Ontario Nuclear Funds Agreement of $3.7 billion, long-term debt repayment obligations of $3.7 billion and fuel supply agreements of $1.4 billion; and
• Transfer payment for long-term care beds of $2.2 billion.

The following table summarizes the government's total contractual obligations.

Contractual Obligations As at March 31	2006	2005
Ontario Power Generation	$10,930	$10,023
Transfer payments	5,193	6,095
Leases	1,452	1,095
Construction Contracts	1,007	730
Other	6,581	3,208
Total Contractual Obligations	$25,163	$21,151

The following table summarizes the information presented above to indicate the minimum amounts required to satisfy the contractual obligations each year from 2007 to 2011 inclusive, and a total for amounts due in the year 2012 and subsequent years.

Schedule of Minimum Payments
As at March 31
Minimum Payments to be made in:	Ontario Power Generation	Transfer Payments	Leases	Construction Contracts	Other	Total
2007	$2,715	$1,335	$231	$625	$1,139	$6,045
2008	1,715	841	171	270	641	3,638
2009	1,662	471	140	81	577	2,931
2010	1,062	320	108	21	522	2,033
2011	1,490	242	86	9	397	2,224
2012 and thereafter	2,286	1,984	716	1	3,305	8,292
Total	$10,930	$5,193	$1,452	$1,007	$6,581	$25,163

12. Trust Funds Under Administration

Summary financial information from the most recent financial statements of trust funds under administration is provided below.

Workplace Safety and Insurance Board As at December 31	2005	2004
Assets	$14,547	$13,643
Liabilities	21,057	20,063
Unfunded Liability	(6,510)	(6,420)
Revenues	4,416	4,130
Expenditures	4,506	4,503
Deficit	(90)	(373)
Unfunded Liability, Beginning of Year	(6,420)	(7,135)
Effect of Changes in Accounting Policy	—	1,088
Unfunded Liability, End of Year	$(6,510)	$(6,420)

 

Other Trust Funds As at March 31, 2006	Assets	Liabilities	Fund Balance (Unfunded Liability)
The Public Guardian and Trustee for Province of Ontario	$1,229	$1,150	$ 79
Motor Vehicle Accident Claims Fund	$ 49	$ 188	$ (139)
Pension Benefits Guarantee Fund	$ 143	$ 417	$ (274)
As at December 31, 2005	Assets	Liabilities	Fund Balance
Deposit Insurance Corporation of Ontario	$ 95	$ 10	$ 85

Any unfunded liability of trusts under administration are not included in the Province's financial statements as they are the responsibility of external parties. The most recent financial statements of these trusts are reproduced in Volume 2 of the Public Accounts of Ontario.

13. Subsequent Event

As part of the sale of its 50 per cent interest in Teranet in August 2003, the Province retained the right to share in the value of any future sale of Teranet.

On May 8, 2006, the Province granted permission to Teranet Inc. to proceed with an initial public offering (IPO) of the company. On June 16, 2006, the Province received substantially all of its estimated share of the IPO proceeds of $571 million, and agreed to contribute $54 million to Teranet for service improvements and system enhancements to Ontario's electronic land registration system. The Province will record the estimated revenue of $571 million and expense of $54 million in fiscal year 2006-07.

14. Comparative Figures

The comparative figures have been reclassified as necessary to conform to the 2006 presentation.

Schedules to the Consolidated Financial Statements

Schedule 1    Revenues

Schedule 2    Expenses by Object

Schedule 3    Expenses by Ministry

Schedule 4    Accounts Payable and Accrued Liabilities

Schedule 5    Accounts Receivable

Schedule 6    Loans Receivable

Schedule 7    Government Organizations

Schedule 8    Government Business Enterprises

Schedule 9    Broader Public Sector Organizations

 

Province of Ontario
Schedule 1: Revenues
For the year ended March 31 ($ Millions)	Budget1 2006	Actual 2006	Actual 2005
Taxation
Personal Income Tax	20,026	21,041	19,320
Retail Sales Tax	15,475	15,554	14,855
Corporations Tax	9,248	9,984	9,883
Employer Health Tax	4,033	4,197	3,886
Ontario Health Premium	2,422	2,350	1,737
Gasoline Tax	2,308	2,281	2,277
Tobacco Tax	1,511	1,379	1,453
Land Transfer Tax	1,056	1,159	1,043
Electricity Payments-In-Lieu of Taxes	656	951	511
Fuel Tax	733	729	727
Other Taxes	258	292	283
	57,726	59,917	55,975
Government of Canada
Canada Health Transfer	7,127	7,148	5,640
Canada Social Transfer	3,039	3,052	2,912
CHST Supplements	584	584	775
Social Housing	520	520	522
Infrastructure Programs	293	285	209
Early Learning and Child Care	272	272	–
Wait Times Reduction Fund	243	243	242
Medical Equipment Funds	194	194	387
Indian Welfare Services Agreement	146	182	154
Bilingualism Development	63	86	70
Labour Market Agreement for Persons with Disabilities	63	81	62
Youth Criminal Justice	69	67	68
Public Health and Immunization Trust	53	52	50
Legal Aid Criminal	43	51	50
Other	464	434	741
	13,173	13,251	11,882
Income from Investment in Government Business Enterprises (Schedule 8)	4,019	4,308	3,578
Other
Electricity Debt Retirement Charge	1,018	1,021	997
Power Sales	961	779	610
Local Services Realignment	765	775	733
Vehicle and Driver Registration Fees	1,017	763	976
Other Fees and Licences	510	550	506
Liquor Licence Board of Ontario Revenues	502	516	489
Sales and Rentals	369	465	352
Net Reduction of Power Purchase Contracts	396	396	236
Royalties	236	191	278
Independent Electricity System Operator Revenue	151	141	149
Miscellaneous	844	1,152	1,080
	6,769	6,749	6,406
Total Revenues	81,687	84,225	77,841
1 Amounts reported in 2005 Budget, which exclude the impact of consolidation of broader public sector organizations.

 

Province of Ontario
Schedule 2: Expenses by Object
For the year ended March 31 ($ Millions)	2006	2005
Transfer Payments	62,636	58,030
Interest on Debt	9,019	9,368
Salaries and Wages	4,477	4,305
Services	2,747	2,512
Pensions and Other Employee Future Benefits (Note 6)	1,240	1,157
Amortization of Tangible Capital Assets (Note 9)	815	801
Power Purchases	803	840
Supplies and Equipment	794	726
Employee Benefits	573	560
Transportation and Communication	445	419
Increase in Net Assets of Broader Public Sector Organizations (Note 2, Schedule 9)	(449)	–
Other	827	678
Total Expenses	83,927	79,396

 

Province of Ontario
Schedule 3: Expenses by Ministry
For the year ended March 31 ($ Millions)	Budget1 2006	Actual 2006		Actual 2005
Agriculture, Food and Rural Affairs	876	1,147		1,400
Attorney General	1,273	1,291		1,209
Board of Internal Economy	167	150		145
Children and Youth Services	3,305	3,330		2,851
Citizenship and Immigration	76	93		64
Community and Social Services	6,639	6,737		6,379
Community Safety and Correctional Services	1,800	1,767		1,749
Culture	390	475		344
Democratic Renewal Secretariat	4	2		2
Economic Development and Trade	450	202		84
Education	11,350	418		10,619
School Boards (Note 2, Schedule 9)	—	10,886		—
Teachers' Pension (Note 6)	290	295		240
Energy	200	207		194
Environment	327	275		307
Executive Offices	19	19		19
Finance	1,741	1,748		1,926
Contingency Fund	557	—		—
Interest on Debt	9,796	9,019		9,368
Power Purchases	961	803		840
Government Services	674	562		898
Public Service/OPSEU Pension and Other Employee Future Benefits (Note 6)	514	729		458
Health and Long-Term Care	33,058	17,722		31,331
Hospitals (Note 2, Schedule 9)	—	14,816		—
Health Promotion	304	296		241
Intergovernmental Affairs	8	10		13
Labour	146	141		129
Municipal Affairs and Housing	774	928		772
Natural Resources	546	632		563
Northern Development and Mines	671	337		320
Office of Francophone Affairs	4	4		3
Public Infrastructure Renewal	92	107		41
Capital Contingency Plan	175	—		—
Research and Innovation	323	370		263
Secretariat for Aboriginal Affairs	17	50		21
Tourism	179	210		167
Training, Colleges and Universities	4,819	3,529		4,605
Colleges (Note 2, Schedule 9)	—	1,185		—
Transportation	1,458	3,435		1,831
Year-End Savings2	(500)	—		—
Total Expenses	83,483	83,927		79,396
1 Amounts reported in 2005 Budget, which exclude the impact of consolidation of broader public sector organizations.
2 For Budget purposes, these items were not allocated to individual ministries.

 

Province of Ontario
Schedule 4: Accounts Payable and Accrued Liabilities
As at March 31 ($ Millions)	2006	2005
Transfer Payments	5,296	5,417
Interest on Debt	4,313	4,066
Liability for CRA1 Overpayment	1,064	1,197
Salaries, Wages and Benefits	416	421
Restructuring	200	360
Obligations Under Capital Leases	50	68
Other	1,933	2,100
Total Accounts Payable and Accrued Liabilities	13,272	13,629
1 CRA – Canada Revenue Agency

 

Province of Ontario
Schedule 5: Accounts Receivable
As at March 31 ($ Millions)	2006	2005
Taxes	5,045	4,721
Transfer Payments1	945	942
Other Accounts Receivable	1,015	1,071
	7,005	6,734
Less: Provision for Doubtful Accounts2	(1,662)	(1,579)
	5,343	5,155
Government of Canada	1,104	1,009
Total Accounts Receivable	6,447	6,164
1 The transfer payment receivable consists primarily of recoverables of $838 million (2005, $818 million) for the Ontario Disability Support Program – Financial Assistance.
2 The provision for doubtful accounts includes a provision of $770 million (2005, $750 million) for the Ontario Disability Support Program – Financial Assistance.

 

Province of Ontario
Schedule 6: Loans Receivable
As at March 31 ($ Millions)	2006	2005
Government Business Enterprises and Trusts1	5,137	4,959
Municipalities2	1,172	704
Students3	1,146	1,147
Pension Benefit Guarantee Fund4	308	319
Industrial and Commercial5	274	190
Universities6	165	162
School Boards and Colleges7	110	167
Other	44	48
	8,356	7,696
Unamortized Concession Discounts	(283)	(242)
Allowance for Doubtful Accounts	(1,222)	(1,090)
Total Loans Receivable	6,851	6,364

¹ Loans to Government Business Enterprises bear interest at rates of 2.99% to 6.65%.
² Loans to Municipalities bear interest at rates up to 7.38%.
³ Loans to Students bear interest at rates of 4.25% to 5%.
⁴ The loan to the Pension Benefit Guarantee Fund is interest free.
⁵ Loans to industrial and commercial enterprises bear interest at rates up to 11.25% and include forgivable loans totalling $19.3 million (2005, $19.3 million) which are fully provided for in the Allowance for Doubtful Accounts.
⁶ Loans to Universities are mortgages bearing interest at rates of 5.875% to 10.81%.
⁷ Loans to School Boards and Colleges bear interest at rates of 7.25% to 11.04%.

Repayment terms are as follows:
Year ended March 31	Principal Repayment
2007	1,885
2008	722
2009	690
2010	879
2011	742
	4,918
2012–2016	1,052
2017–2021	197
2022–2026	161
2027–2031	60
2032 and thereafter	120
	6,508
No fixed maturity	1,848
	8,356

 

Province of Ontario
Schedule 7: Government Organizations
Government Business Enterprises1		Responsible Ministry
Algonquin Forestry Authority (AFA)		Natural Resources
Hydro One Inc. (HOI)		Energy
Liquor Control Board of Ontario (LCBO)		Public Infrastructure Renewal
Niagara Parks Commission (NPC)		Tourism
Ontario Clean Water Agency (OCWA)		Environment
Ontario Lottery and Gaming Corporation (OLGC)		Public Infrastructure Renewal
Ontario Northland Transportation Commission (ONTC)		Northern Development and Mines
Ontario Power Generation Inc. (OPG)		Energy
Provincial Agencies1		Responsible Ministry
Agricorp		Agriculture, Food and Rural Affairs
Cancer Care Ontario		Health and Long-Term Care
Education Quality and Accountability Office		Education
Independent Electricity System Operator		Energy
Infrastructure Ontario2		Public Infrastructure Renewal
GO Transit (Toronto Area Transit Operating Authority		Transportation
and Greater Toronto Transit Authority)
Legal Aid Ontario		Attorney General
Metropolitan Toronto Convention Centre		Tourism
Northern Ontario Heritage Fund Corporation		Northern Development and Mines
Ontario Educational Communications Authority		Education
Ontario Electricity Financial Corporation		Finance
Ontario Energy Board		Energy
Ontario Financing Authority		Finance
Ontario Housing Corporation		Municipal Affairs and Housing
Ontario Immigrant Investor Corporation		Economic Development and Trade
Ontario Strategic Infrastructure Financing Authority		Public Infrastructure Renewal
Ontario Place Corporation		Tourism
Ontario Power Authority		Energy
Ontario Racing Commission		Government Services
Ontario Realty Corporation		Public Infrastructure Renewal
Ontario Science Centre		Culture
Ontario Securities Commission		Finance
Ontario Tourism Marketing Partnership Corporation		Tourism
Ontario Trillium Foundation		Culture
Royal Ontario Museum		Culture
Smart Systems for Health Agency		Health and Long-Term Care
Toronto Waterfront Revitalization Corporation2		Public Infrastructure Renewal
1 The most recent audited financial statements of these organizations are reproduced in Volume 2, Public Accounts of Ontario.
2 The organization met the criteria for consolidation in fiscal year 2005–2006.
Broader Public Sector Organizations
Public Hospitals – Ministry of Health and Long-Term Care
Lennox and Addington County General Hospital	Services de sant de Chapleau Health Services
Four Counties Health Services	Public General Hospital Campus, Chatham-Kent Health Alliance
Stevenson Memorial Hospital	St. Joseph's Hospital Campus, Chatham-Kent Health Alliance
Almonte General Hospital	North York General Hospital
Arnprior and District Memorial Hospital	Clinton Public Hospital
Atikokan General Hospital	Lady Minto Hospital
Royal Victoria Hospital of Barrie Inc.	Collingwood General and Marine Hospital
Blind River District Health Centre	Religious Hospitallers of St. Joseph Health Centre of Cornwall Hotel Dieu
West Park Healthcare Centre	Deep River and District Hospital Corporation
South Muskoka Memorial Hospital	Dryden Regional Health Centre
Brantford General Hospital	Haldimand War Memorial Hospital
Brockville General Hospital	St. Joseph's General Hospital
Brockville Providence CCC	Englehart and District Hospital
Campbellford Memorial Hospital	Espanola General Hospital
Carleton Place and District Memorial Hospital	South Huron Hospital Association
Hornepayne Community Hospital	Groves Memorial Community Hospital
Alexandra Hospital	Cambridge Memorial Hospital
Anson General Hospital	Geraldton District Hospital
Lady Dunn Health Centre	Alexandra Marine & General Hospital
Sensenbrenner Hospital	West Lincoln Memorial Hospital
Religious Hospitallers of St. Joseph of the Hotel Dieu of Kingston	Guelph General Hospital
Kingston General Hospital	St. Joseph's Health Centre
Kingston Providence CCC	St. Joseph's Healthcare Hamilton
Kirkland and District Hospital	St. Peter's Hospital
St. Mary's General Hospital	Hanover & District Hospital
York Central Hospital	Hpital Notre Dame Hospital
Leamington District Memorial Hospital	Listowel Memorial Hospital
Ross Memorial Hospital	St. Joseph's Health Care, London
Joseph Brant Memorial Hospital	Hawkesbury and District General Hospital
Manitouwadge General Hospital	Seaforth Community Hospital
Wilson Memorial General Hospital	Glengarry Memorial Hospital
Bingham Memorial Hospital	Norfolk General Hospital
Mattawa General Hospital	Smooth Rock Falls Hospital
Huronia District Hospital	Stratford General Hospital
Credit Valley Hospital	Strathroy Middlesex General Hospital
Kemptville District Hospital	McCausland Hospital
West Haldimand General Hospital	Tillsonburg District Memorial Hospital
Southlake Regional Health Centre	Lake of the Woods District Hospital
Nipigon District Memorial Hospital	Baycrest Centre for Geriatric Care
Orillia Soldiers' Memorial Hospital	Hospital for Sick Children
Children's Hospital of Eastern Ontario	Mount Sinai Hospital
Hpital Montfort	Bridgepoint Hospital
Willett Hospital	Runnymede Healthcare Centre
Pembroke Regional Hospital	St. Michael's Hospital
Penetanguishene General Hospital	Salvation Army Toronto Grace Hospital
St. Francis Memorial Hospital	Toronto East General Hospital
Peterborough Regional Health Centre	James Bay General Hospital
Providence Healthcare	Sydenham District Hospital - Chatham-Kent Health Alliance
Queensway-Carleton Hospital	St. John's Rehabilitation Hospital
St. Joseph's Care Group	West Nipissing General Hospital
Manitoulin Health Centre	St. Marys Memorial Hospital
Renfrew Victoria Hospital	St. Thomas - Elgin General Hospital
Hotel Dieu Health Sciences Hospital, Niagara	Casey House Hospice
Winchester District Memorial Hospital	Headwaters Health Care Centre
Temiskaming Hospital	Hotel-Dieu Grace Hospital
Wingham and District Hospital	Perth and Smiths Falls District Hospital
Woodstock General Hospital	Grand River Hospital
Red Lake Margaret Cochenour Memorial Hospital	West Parry Sound Health Centre
St. Joseph's Health Centre	Sisters of Charity of Ottawa Hospital
Riverside Health Care Facilities Inc.	Windsor Regional Hospital
Huntsville District Memorial Hospital	Thunder Bay Regional Health Sciences Centre
Markham Stouffville Hospital	London Health Sciences Centre
North Bay General Hospital	Haliburton Highlands Health Services Corporation
Timmins and District Hospital	Bloorview MacMillan Centre
Humber River Regional Hospital	Northumberland Hills Hospital
Hamilton Health Sciences Corporation	William Osler Health Centre
South Bruce Grey Health Centre	Lakeridge Health Corporation
University Health Network	Sunnybrook & Women's College Health Sciences Centre
Trillium Health Centre	Rouge Valley Health System
Halton Healthcare Services Corporation	Grey Bruce Health Services
Quinte Healthcare Corporation	Toronto Rehabilitation Institute
Ottawa Hospital	Sioux Lookout Meno-Ya-Win Health Centre
Hpital rgional de Sudbury Regional Hospital	Sault Area Hospital
Scarborough Hospital	Bluewater Health
University of Ottawa Heart Institute	Cornwall Community Hospital
Niagara Health System	North Wellington Health Care Corporation (Louise Marshall)
Specialty Psychiatric Hospitals - Ministry of Health and Long-Term Care
Royal Ottawa Health Care Group	Centre for Addiction and Mental Health
Northeast Mental Health Centre	Whitby Mental Health Centre
School Boards – Ministry of Education
Airy and Sabine District School Area Board	Huron-Perth Catholic District School Board
Algoma District School Board	Huron-Superior Catholic District School Board
Algonquin and Lakeshore Catholic District School Board	Ignace Roman Catholic Separate School Board
Asquith-Garvey District School Area Board	James Bay Lowlands Secondary School Board
Atikokan Roman Catholic Separate School Board	Kawartha Pine Ridge District School Board
Avon Maitland District School Board	Keewatin-Patricia District School Board
Bloorview MacMillan School Authority	Kenora Catholic District School Board
Bluewater District School Board	KidsAbility School Authority
Brant Haldimand Norfolk Catholic District School Board	Lakehead District School Board
Bruce-Grey Catholic District School Board	Lambton Kent District School Board
Campbell Children's School Authority	Limestone District School Board
Caramat District School Area Board	London District Catholic School Board
Catholic District School Board of Eastern Ontario	Mine Centre District School Area Board
Collins District School Area Board	Missarenda District School Area Board
Connell and Ponsford District School Area Board	Moose Factory Island District School Area Board
Conseil des coles publiques de l'Est de l'Ontario	Peterborough Victoria Northumberland and Clarington Catholic District School Board
Conseil scolaire de district catholique Centre-Sud	Moosonee Roman Catholic Separate School Board
Conseil scolaire de district catholique de l'Est ontarien	Murchison and Lyell District School Area Board
Conseil scolaire de district catholique des Aurores borales	Nakina District School Area Board
Conseil scolaire de district catholique des Grandes Rivires	Near North District School Board
Conseil scolaire de district catholique du Centre-Est de l'Ontario	Niagara Catholic District School Board
Conseil scolaire de district catholique du Nouvel-Ontario	Niagara Peninsula Children's Centre School Authority
Conseil scolaire de district catholique Franco-Nord	Nipissing-Parry Sound Catholic District School Board
Conseil scolaire de district des coles catholiques du Sud-Ouest	Northeastern Catholic District School Board
Conseil scolaire de district du Centre Sud-Ouest	Northern District School Area Board
Conseil scolaire de district du Grand Nord de l'Ontario	Northwest Catholic District School Board
Conseil scolaire de district du Nord-Est de l'Ontario	Ottawa Children's Treatment Centre School Authority
District School Board of Niagara	Ottawa-Carleton Catholic District School Board
District School Board Ontario North East	Ottawa-Carleton District School Board
Dubreuilville Roman Catholic Separate School Board	Parry Sound Roman Catholic Separate School Board
Dufferin-Peel Catholic District School Board	Peel District School Board
Durham Catholic District School Board	Penetanguishene Protestant Separate School Board
Durham District School Board	Moosonee District School Area Board
Essex County Children's Rehabilitation Centre School Authority	Rainbow District School Board
Foleyet District School Area Board	Rainy River District School Board
Foleyet Roman Catholic Separate School Board	Red Lake Area Combined Roman Catholic Separate School Board
Gogama District School Area Board	Renfrew County Catholic District School Board
Gogama Roman Catholic Separate School Board	Renfrew County District School Board
Grand Erie District School Board	Simcoe County District School Board
Greater Essex County District School Board	Simcoe Muskoka Catholic District School Board
Halton Catholic District School Board	St. Clair Catholic District School Board
Halton District School Board	Sudbury Catholic District School Board
Hamilton-Wentworth Catholic District School Board	Summer Beaver District School Area Board
Hamilton-Wentworth District School Board	Superior North Catholic District School Board
Hastings and Prince Edward District School Board	Superior-Greenstone District School Board
Hornepayne Roman Catholic Separate School Board	Thames Valley District School Board
Thunder Bay Catholic District School Board	Waterloo Catholic District School Board
Toronto Catholic District School Board	Waterloo Region District School Board
Toronto District School Board	Wellington Catholic District School Board
Trillium Lakelands District School Board	Windsor-Essex Catholic District School Board
Upper Canada District School Board	York Region District School Board
Upper Grand District School Board	York Catholic District School Board
Upsala District School Area Board
Colleges – Ministry of Training, Colleges and Universities
Algonquin College of Applied Arts and Technology	La Cit collgiale
Cambrian College of Applied Arts and Technology	Lambton College of Applied Arts and Technology
Canadore College	Loyalist College of Applied Arts and Technology
Centennial College of Applied Arts and Technology	Mohawk College of Applied Arts and Technology
Collge Boral	Niagara College of Applied Arts and Technology
Conestoga College of Applied Arts and Technology	Northern College of Applied Arts and Technology
Confederation College	Sault College of Applied Arts and Technology
Durham College	Seneca College of Applied Arts and Technology
Fanshawe College of Applied Arts and Technology	Sheridan College of Applied Arts and Technology
George Brown College of Applied Arts and Technology	Sir Sanford Fleming College
Georgian College of Applied Arts and Technology	St. Clair College of Applied Arts and Technology
Humber College Institute of Technology and Advanced Learning	St. Lawrence College of Applied Arts and Technology

 

Province of Ontario
Schedule 8: Government Business Enterprises
Summary financial information of Government Business Enterprises is provided below.1
For the year ended March 31, 2006 ($ Millions)	Algonquin Forestry Authority	Hydro One Inc.	Liquor Control Board of Ontario	Niagara Parks Commission	Ontario Clean Water Agency	Ontario Lottery and Gaming Commission	Ontario Northland Transportation Commission	Ontario Power Generation Inc.	Total
Assets
Cash and Temporary Investments	3	119	101	–	34	760	–	919	1,936
Accounts Receivable	4	736	24	–	17	46	21	397	1,245
Inventories	–	62	284	6	–	–	18	680	1,050
Prepaid Expenses	–	–	13	–	2	57	1	–	73
Long-Term Investments	–	–	–	–	9	–	–	–	9
Fixed Assets	1	10,197	228	131	5	2,294	266	11,351	24,473
Other Assets	3	1,015	—	—	125	88	92	8,236	9,559
Total Assets	11	12,129	650	137	192	3,245	398	21,583	38,345
Liabilities
Bank Indebtedness	–	10	–	8	–	–	22	–	40
Accounts Payable	1	710	326	5	12	392	29	900	2,375
Deferred Revenue	–	–	–	–	–	17	7	153	177
Long-Term Debt	–	5,367	41	3	–	642	29	3,594	9,676
Other Liabilities	1	1,333	–	3	9	150	61	11,350	12,907
Total Liabilities	2	7,420	367	19	21	1,201	148	15,997	25,175
Net Assets	9	4,709	283	118	171	2,044	250	5,586	13,170
Revenue	28	4,382	3,683	80	113	6,090	134	5,948	20,458
Expenses	28	3,878	2,486	78	132	4,063	140	5,345	16,150
Net Income (Loss)	–	504	1,197	2	(19)	2,027	(6)	603	4,308
Net Assets — Beginning of Year	9	4,566	286	116	191	1,842	250	4,983	12,243
Payments from (to) CRF	–	(361)	(1,200)	–	(1)	(1,825)	6	–	(3,381)
Net Assets	9	4,709	283	118	171	2,044	250	5,586	13,170
1 The information in this table represents unaudited results of Government Business Enterprises for the year ended March 31, 2006.

Schedule 8: Government Business Enterprises

---

Algonquin Forestry Authority (AFA)

The Algonquin Forestry Authority is responsible for forest management in Algonquin Park.

Hydro One Inc. (HOI)

The principal business of Hydro One is the transmission and distribution of electricity to customers within Ontario. It is regulated by the Ontario Energy Board.

Liquor Control Board of Ontario (LCBO)

The Liquor Control Board of Ontario regulates the purchase, sale and distribution of liquor for home consumption and liquor sales to licensed establishments through Liquor Control Board stores, Brewers' Retail stores and winery retail stores throughout Ontario. The Board buys wine and liquor products for resale to the public and tests all products sold to the public to maintain high standards of quality. The Board also establishes prices for beer, wine and spirits.

Niagara Parks Commission (NPC)

The Commission maintains, preserves and enhances the beauty and surroundings of the Horseshoe Falls and the Niagara River from Fort Erie to Niagara-on-the-Lake.

Ontario Clean Water Agency (OCWA)

The Agency assists municipalities in providing more cost-effective water and sewage services and encourages Ontario residents, municipalities and industries to conserve water. The Agency also finances, builds and operates water and sewage systems, as well as providing services to communities, all on a cost-recovery basis.

Ontario Lottery and Gaming Corporation (OLGC)

Under the Ontario Lottery and Gaming Corporation Act, 1999, the Corporation conducts lottery games and operates commercial casinos, charity casinos, and slot machines at 15 Ontario racetracks.

Ontario Northland Transportation Commission (ONTC)

The Commission provides rail, bus, ferry, air and telecommunications services to Northern Ontario.

Ontario Power Generation Inc. (OPG)

The principal business of Ontario Power Generation Inc. is the generation and sale of electricity in the Ontario wholesale market and in the interconnected markets of Quebec, Manitoba and the United States northeast and midwest.

 

Province of Ontario
Schedule 9: Broader Public Sector Organizations
Summary financial information of Broader Public Sector Organizations is provided below.
For the year ended March 31, 20061 ($ Millions)	Hospitals	School Boards	Colleges	Total
Expense
Salaries, Wages and Benefits	11,606	13,613	1,382	26,601
Bursaries, Student Aid and Other Grants	–	–	72	72
Interest Expense	56	297	41	394
Amortization Expense	727	419	145	1,291
Other	5,086	3,788	741	9,615
Total Expenses	17,475	18,117	2,381	37,973
Revenue
School Property Taxes	–	6,080	–	6,080
Fees, Donations and Other Primary	922	395	1,004	2,321
Interest and Investment Income	23	69	12	104
Other	1,714	687	180	2,581
Total Revenue	2,659	7,231	1,196	11,086
Net Expenses	14,816	10,886	1,185	26,887
Transfers from the Province	15,275	10,798	1,263	27,336
Increase/(Decrease) in Net Assets of Broader Public Sector	459	(88)	78	449
Net Assets – Beginning of Year	7,293	7,428	1,569	16,290
Net Assets	7,752	7,340	1,647	16,739
Financial Assets	4,576	2,818	797	8,191
Liabilities	7,644	9,954	1,367	18,965
Net Debt	3,068	7,136	570	10,774
Tangible Capital Assets	10,820	14,476	2,217	27,513
Net Assets	7,752	7,340	1,647	16,739
1 Amounts reported include consolidation adjustments made to eliminate significant inter-organizational gains and losses, to record tangible capital assets for school boards, and to conform school boards to the Province's fiscal year.

Sources of Additional Information

The Ontario Budget

The Ontario government presents a Budget each year, usually in the early spring. This document outlines expected expense and revenue for the upcoming fiscal year. For an electronic copy of the Ontario Budget, visit the Ministry of Finance website at www.fin.gov.on.ca.

The Estimates of the Province of Ontario

The government's spending Estimates for the fiscal year commencing April 1 are presented to members of the Legislative Assembly following the presentation of the Ontario Budget by the Minister of Finance. The Estimates outline the spending plans of each ministry and are submitted for approval to the Legislative Assembly, per the Supply Act. For electronic access, go to: www.fin.gov.on.ca.

Ontario Finances

This is a quarterly report on the performance of the government's Budget for the fiscal year. It covers developments during a quarter and provides a revised outlook for the remainder of the year. Copies may be obtained free by writing to the Ministry of Finance, Communications and Corporate Affairs Branch, 3rd Floor, Frost Building North, 95 Grosvenor Street, Toronto, Ontario, M7A 1Z1. For electronic access, go to: www.fin.gov.on.ca.

Ontario Economic Accounts

This quarterly report contains data on Ontario's economic activity. Copies may be obtained free by writing to the Ministry of Finance, Communications and Corporate Affairs Branch, 3rd Floor, Frost Building North, 95 Grosvenor Street, Toronto, Ontario, M7A 1Z1. For electronic access, go to: www.fin.gov.on.ca.