Public Accounts 2006-2007: Consolidated Financial StatementS

CONSOLIDATED
FINANCIAL
STATEMENTS

Office of the Auditor General of Ontario
Bureau du vérificateur général de l'Ontario

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, 2007 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, 2007 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 July 23, 2007	Jim McCarter, CA Auditor General Licensed Public Accountant

Box 105, 15th Floor
20 Dundas Street West
Toronto, Ontario
M5G 2C2
416-327-2381
fax 416-326-3812

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www.auditor.on.ca

Province of Ontario Consolidated Statement of Operations
($ Millions)	2006–07 Budget1	2006–07 Actual	2005-06 Actual
Revenues (Schedule 1)
Personal Income Tax	21,671	23,655	21,041
Retail Sales Tax	16,165	16,228	15,554
Corporations Tax	9,845	10,845	9,984
Employer Health Tax	4,314	4,371	4,197
Gasoline and Fuel Taxes	3,045	3,033	3,010
Ontario Health Premium	2,551	2,589	2,350
Other Taxes	3,683	3,589	3,781
Total Taxation	61,274	64,310	59,917
Government of Canada	13,582	14,036	13,251
Income from Investment in Government Business Enterprises (Schedule 8)	3,920	4,196	4,308
Other	6,954	7,855	6,749
	85,730	90,397	84,225
Expenses (Schedules 2 and 3)
Health	35,516	35,698	32,947
Education	12,062	12,058	11,621
Children's and Social Services	10,227	10,442	9,985
Interest on Debt	9,429	8,831	9,019
Environment, Resources and Economic Development	6,534	7,697	8,441
Postsecondary Education and Training	5,201	5,383	4,689
Justice	3,167	3,224	3,037
General Government and Other	4,944	4,795	4,188
	87,080	88,128	83,927
Reserve	1,000
Annual Surplus (Deficit)	(2,350)	2,269	298
Accumulated Deficit at Beginning of Year		(109,155)	(125,743)
Less: Ontario Electricity Financial Corporation Unfunded Liability Adjustment at Beginning of Year (Note 4)		110
Less: Net Assets of Broader Public Sector Organizations at Beginning of Year		–	16,290
Accumulated Deficit at End of Year		(106,776)	(109,155)
See accompanying Notes and Schedules to the Financial Statements.
1 Amounts reported in 2006 Budget.

Province of Ontario Consolidated Statement of Financial Position
As at March 31 ($ Millions)		2007		2006
Liabilities
Accounts Payable and Accrued Liabilities (Schedule 4)		12,463		13,206
Debt (Note 2)	156,993		154,906
Unamortized Foreign Exchange Gains	318		426
		157,311		155,332
Power Purchase Contracts (Note 4)		2,977		3,389
Nuclear Funding Liability (Note 4)		–		768
Pensions and Other Employee Future Benefits (Note 5)		1,398		1,686
Other Liabilities (Note 6)		4,398		3,858
		178,547		178,239
Financial Assets
Cash and Cash Equivalents		4,329		4,447
Temporary Investments (Note 7)		2,293		2,979
Accounts Receivable (Schedule 5)		7,876		6,423
Loans Receivable (Schedule 6)		7,378		6,875
Other Assets		1,590		2,417
Investment in Government Business Enterprises (Schedule 8)		13,981		13,170
		37,447		36,311
Net Debt		(141,100)		(141,928)
Non-Financial Assets
Tangible Capital Assets (Note 8)		17,245		16,034
Net Assets of Broader Public Sector Organizations (Schedule 9)		17,079		16,739
		34,324		32,773
Accumulated Deficit		(106,776)		(109,155)
Contingent Liabilities (Note 9) and Contractual Obligations (Note 10)
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)	2007		2006
Annual Surplus		2,269		298
Acquisition of Tangible Capital Assets	(2,120)		(1,675)
Amortization of Tangible Capital Assets (Note 8)	838		815
Proceeds on Sale of Tangible Capital Assets	20		45
Loss (Gain) on Sale of Tangible Capital Assets	51		(41)
Increase in Net Assets of Broader Public Sector Organizations (Schedule 9)
	(340)		(449)
		(1,551)		(1,305)
Decrease (Increase) in Net Debt	718		(1,007)
Net Debt at Beginning of Year	(141,928)		(140,921)
Less: Ontario Electricity Financial Corporation Unfunded Liability Adjustment at Beginning of Year (Note 4)	110		–
Net Debt at End of Year	(141,100)		(141,928)
See accompanying Notes and Schedules to the Financial Statements.

Province of Ontario Consolidated Statement of Cash Flow
For the year ended March 31 ($ Millions)	2007		2006
Operating Transactions
Annual Surplus		2,269		298
Amortization of Tangible Capital Assets (Note 8)		838		815
Loss (Gain) on Sale of Tangible Capital Assets		51		(41)
Income from Investment in Government Business Enterprises (Schedule 8)		(4,196)		(4,308)
Remittances from Government Business Enterprises (Schedule 8)		3,385		3,381
Decrease in Liability for Pensions and Other Employee Future Benefits (Note 5)		(288)		(61)
Decrease in Power Purchase Contracts (Note 4)		(412)		(396)
Decrease in Nuclear Funding Liability (Note 4)		(768)		(642)
Decrease in Accounts Payable and Accrued Liabilities (Schedule 4)		(743)		(371)
Decrease in Other Items		(479)		(2,153)
Cash Applied to Operating Transactions		(343)		(3,478)
Capital Transactions
Acquisition of Tangible Capital Assets		(2,120)		(1,675)
Proceeds from Sale of Tangible Capital Assets		20		45
Increase in Net Assets of Broader Public Sector Organizations (Schedule 9)		(340)		(449)
Cash Applied to Capital Transactions		(2,440)		(2,079)
Investing Transactions
Decrease in Temporary Investments (Note 7)		686		1,342
Cash Provided by Investing Transactions		686		1,342
Financing Transactions
Debt Issued		19,210		19,955
Debt Retired		(17,231)		(21,424)
Cash Provided by (Applied to) Financing Transactions		1,979		(1,469)
Net Decrease in Cash and Cash Equivalents		(118)		(5,684)
Cash and Cash Equivalents at Beginning of Year		4,447		10,131
Cash and Cash Equivalents at End of Year		4,329		4,447
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.

Public hospitals, specialty psychiatric hospitals, school boards and colleges, collectively referred to as the “Broader Public Sector (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 organizations that do not meet the materiality thresholds 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 11.

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-organizational 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, government business enterprises are reported in accordance with the accounting principles generally accepted for business enterprises.  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. 

Broader Public Sector (BPS) organizations are recorded in the financial statements using the equity method. Under the equity method or “one-line” basis, BPS organizations are reported in accordance with the accounting principles generally accepted for governments.  Significant gains and losses resulting from inter-organizational transactions occurring from within the government reporting entity are eliminated upon consolidation. Their combined net assets are included in the financial statements as Net Assets of Broader Public Sector Organizations on the Consolidated Statement of Financial Position. 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 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 Postsecondary Education and Training expenses in the Consolidated Statement of Operations.

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 Provinces best estimate of expected results (for example, the 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 of differences between estimated useful lives and actual useful lives. Uncertainty related to the accrual for personal tax and corporations tax revenues arises because of the possible difference 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:

• accounts payable accruals
• transfer payments
• interest accruing on debt
• pension and other employee future benefits
• the amortization of tangible capital assets
• net expenses of hospitals, school boards and colleges.

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 governments share of the cost of benefits including the current years 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 when 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, are 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 is 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 the sacrifice of economic benefits in the future.

Liabilities include present obligations for environmental costs, 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 consists 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 managing 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 governments best estimates of future inflation rates, investment returns, employee salary levels and other underlying assumptions, and where applicable, the governments 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 selected employee future benefits (such as pensions, other retirement benefits and termination pay) represent the governments 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 Provinces 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 governments 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. A valuation allowance is recorded when collection of the receivable 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 consist of tangible capital 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 BPS organizations. Tangible capital assets of hospitals and colleges are recorded at historical cost in their financial statements. Interest incurred during construction of major projects is capitalized and included in historical cost when specific project financing is provided. Although school boards do not presently record tangible capital assets in their financial statements, an adjustment is made upon consolidation to record the estimated historical cost of their land and building assets in the Provinces financial statements.

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, including leased assets, computers, equipment, vehicles and furniture, are expensed as acquired. The Province intends to apply PSABs recommendations on the remaining other tangible capital assets in 2009–10.

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. External contributions for acquisition of tangible capital assets are recorded as deferred revenue and amortized on the same basis as the related tangible capital assets.

2. Debt

The Province borrows in both domestic and international markets. Debt of $157.0 billion, as at March 31, 2007 (2006, $154.9 billion), is composed of mainly bonds and debentures issued in both the short and long-term public capital markets and non-public debt held by certain federal and provincial public sector pension plans. Debt comprises Debt Issued for Provincial Purposes of $129.1 billion (2006, $126.9 billion) and Ontario Electricity Financial Corporation (OEFC) debt of $27.9 billion (2006, $28.0 billion). The table blow presents the maturity schedule of the Provinces outstanding debt, by currency of repayment, expressed in Canadian dollars, and reflects the effects of related derivative contracts.

Debt As at March 31								2007	2006
Currency	Canadian Dollar		U.S. Dollar	Japanese Yen	Euro1	Other Currency2		Total	Total
Maturing in:
2007									$21,421
2008		$13,213	5,461	320	–	228	$19,222		14,019
2009		15,406	4,090	–	795	265	20,556		19,416
2010		9,069	1,629	709	1,443	870	13,720		13,115
2011		6,186	–	–	–	252	6,438		6,254
2012		5,944	1,136	–	–	47	7,127		–
1–5 years		49,818	12,316	1,029	2,238	1,662	67,063		74,225
6–10 years		22,902	7,606	98	1,188	2,018	33,812		29,980
11–15 years		6,424	–	–	–	–	6,424		4,694
16–20 years		12,300	–	–	–	–	12,300		11,766
21–25 years		13,606	–	–	–	–	13,606		12,843
26–403 years		23,788	–	–	–	–	23,788		21,398
Total4, 5		$128,838	19,922	1,127	3,426	3,680	$156,993		$154,906
Debt Issued for Provincial		105,180	16,617	1,127	3,426	2,753	129,103		126,873
Purposes6
OEFC Debt		23,658	3,305	–	–	927	27,890		28,033
Total4, 5		$128,838	19,922	1,127	3,426	3,680	$156,993		$154,906
Effective Interest Rates (Weighted Average)
2007		6.28%	4.93%	3.48%	5.13%	4.46%	6.02%		–
2006		6.39%	5.04%	4.09%	5.61%	4.44%	–		6.14%
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, South African rand and New Turkish lira.
3 The longest term to maturity is to June 2, 2047.
4 Total foreign currency denominated debt as at March 31, 2007, was $28.2 billion (2006, $27.4 billion). Of that, $27.2 billion or 96.4% (2006, $26.3 billion or 95.9%) was fully hedged to Canadian dollars. The remaining 3.6% (2006, 4.1%) of foreign debt was unhedged as follows: $291 million (2006, $384 million) U.S. dollar denominated debt, $686 million (2006, $695 million) Japanese yen denominated debt and $24 million (2006, $23 million) Swiss franc denominated debt.
5 Total debt includes issues totalling $3.3 billion (2006, $4.8 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, 2007 includes $1.0 billion (2006, $1.0 billion) long-term debt purchased and held by the Province.

Debt As at March 31	2007	2006
Debt Payable to:
Public Investors	$134,431	$130,760
Canada Pension Plan Investment Fund	10,233	10,233
Ontario Teachers' Pension Plan	6,411	7,596
Public Service Pension Plan	2,502	2,705
Ontario Public Service Employees Union Pension Fund	1,188	1,285
Canada Mortgage and Housing Corporation	914	960
Others1	1,314	1,367
Total	$156,993	$154,906
1 Debt payable to others includes debt payable to Ryerson Retirement Pension Plan, the School Board Trust Debt, debt of Ontario Immigrant Investor Corporation, debt of Royal Ontario Museum and Independent Electricity System Operator.

Fair value of debt issued approximates amounts at which debt instruments could be exchanged in a current transaction between willing parties. In valuing the Provinces 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, 2007 was $174.7 billion (2006, $170.6 billion). This is higher than the book value of $157.0 billion (2006, $154.9 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, 2007, the outstanding amount of $840 million (2006, $854 million) advanced to school boards is included in Other Assets and outstanding debentures of $848 million (2006, $863 million) are included in Debt.

3. Risk Management and Derivative Financial Instruments

The Province employs various risk management strategies and operates within strict 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 contracts under which the Province agrees with another party to exchange cash flows based on 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 net of foreign currency holdings to reach a maximum of 5 per cent of Debt Issued for Provincial Purposes and OEFC debt. At March 31, 2007, the respective unhedged levels were 0.7 and nil per cent (2006, 0.8 and nil per cent). For every one-cent increase in the Canadian dollar versus the U.S. dollar, there would be an increase in the debt amount of $2.5 million (2006, $3.0 million) and an increase in Interest on Debt of $2.4 million (2006, $1.7 million). For every one Japanese yen decrease versus the Canadian dollar, there would be an increase in debt amount of $7.0 million (2006, $7.0 million) and an increase in Interest on Debt of $2.4 million (2006, $2.0 million). Total foreign exchange gains recognized in the Statement of Operations for 200607 were $127 million (200506, $112 million).

Interest on debt expense may also vary as a result of changes in interest rates. In respect of Debt Issued for Provincial Purposes and OEFC debt, 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 and OEFC debt respectively. 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 and OEFC to a maximum of 35 per cent.

As at March 31, 2007, interest rate resetting risk for Debt Issued for Provincial Purposes and OEFC debt was 15.3 per cent and 14.4 per cent (2006, 14.1 per cent and 20.3 per cent). Based on floating rate interest-bearing financial instruments on hand at the balance sheet date plus planned refinancing of maturing debt in 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 (2006, $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 7), 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 Provinces derivatives, by type, outstanding at March 31, 2007, 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									2007	2006
Maturity in Fiscal Year		2008	2009	2010	2011	2012	6-10 Years	Over 10 Years	Total	Total
Swaps:
Interest Rate		$13,798	$12,152	$8,716	$2,111	$2,536	$24,032	$5,220	$68,565	$64,735
Cross Currency		6,106	5,301	5,717	499	1,231	12,466	–	31,320	28,435
Forward Foreign		1,771	32	–	–	–	–	–	1,803	3,639
Exchange Contracts
Caps and Floors		50	–	88	–	–	–	–	138	532
Futures		–	–	–	–	–	–	–	–	–
Total		$21,725	$17,485	$14,521	$2,610	$3,767	$36,498	$5,220	$101,826	$97,341

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 table below presents the credit risk associated with the derivative financial instrument portfolio, measured through the replacement value of derivative contracts, at March 31, 2007.

Credit Risk Exposure As at March 31	2007	2006
Gross Credit Risk Exposure1	$1,083	$1,507
Less: Netting2	(898)	(1,395)
Net Credit Risk Exposure	$185	$112
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.

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 most 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.

4. Ontario Electricity Financial Corporation Liabilities

The Ontario Electricity Financial Corporation (OEFC) is consolidated as a government organization in these financial statements. The opening accumulated deficit of the Province has been adjusted to reflect an adjustment to the opening Unfunded Liability of the OEFC. The opening Unfunded Liability of OEFC was reduced by $110 million to reflect the elimination of a working capital adjustment payable to Ontario Power Generation Inc. (OPG) that was originally recorded in OEFCs Unfunded Liability. It was subsequently determined that there was no obligation for this amount.

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 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. This 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. At that time, Ministry of Finance estimated that the bulk of the liability would be eliminated over 12 years as existing electricity contracts expire. The decrease in the liability for power purchase contracts for 200607 was $412 million (200506, $396 million). This results in a liability of $3.0 billion as at March 31, 2007 (2006, $3.4 billion).

ii) Nuclear Funding Liability

The OEFC, as the continued Ontario Hydro, assumed a liability in the amount of $2.4 billion representing nuclear waste management and station decommissioning 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 for existing OPG nuclear stations.

The board of directors of OEFC approved the funding of OEFCs nuclear liability to the Decommissioning Segregated Fund over a four-year period. Contributions by OEFC began in 2003 and the entire liability including interest has been discharged with a final payment on March 30, 2007.

5. Pensions and Other Employee Future Benefits

Pensions and Other Employee Future Benefits Liability (Asset)
As at March 31	2007		2007		2007	2006
	Pensions		Other Employee Future Benefits		Total	Total
Obligation for benefits	$61,236		$5,818		$67,054	$64,512
Less: plan fund assets	(68,407)		(364)		(68,771)	(64,111)
Unamortized actuarial gains (losses)	2,850		(1,059)		1,791	(189)
Adjustments1	1,324		–		1,324	1,474
Total	($2,997)		$4,395		$1,398	$1,686
1 Adjustments for pensions 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
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	2007	2007	2007	2006
	Pensions	Other Employee Future Benefits	Total	Total
Cost of benefits	$1,533	$327	$1,860	$1,768
Amortization of actuarial losses (gains)	(336)	94	(242)	(387)
Employee contributions	(186)	–	(186)	(173)
Cost of plan amendments	–	–	–	255
Interest expense (revenue)	(285)	224	(61)	(110)
Adjustments1	(209)	–	(209)	(113)
Total2	$517	$645	$1,162	$1,240
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
iii) initial unfunded liability of jointly sponsored pension plans.
2 Total Pensions and Other Employee Future Benefits Expense is reported in Schedule 2. The Teachers' Pension expense of $345 million (2005–06, $295 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 $172 million (2005–06, $227 million) and Other Employee Future Benefits — Retirement Benefits expense of $385 million (2005–06, $502 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 $557 million (2005–06, $729 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 seven to nine 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 $797 million to OTPP in 200607 (200506, $740 million), $218 million (including $75 million special payment) to PSPP (200506, $136 million) and $143 million to OPSEU Pension Plan (200506, $143 million). During calendar year 2006, OTPP paid benefits, including transfers to other plans of $3.8 billion (2005, $3.6 billion), PSPP paid $822 million (2005, $793 million) and OPSEU Pension Plan paid $529 million (2005, $524 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 governments best estimate of the future annual inflation rate used in the pension and other employee future benefits calculations disclosed in these financial statements is 2.5 per cent; the salary escalation rate is 3.5 per cent; and the discount rate and expected rate of return on pension plan assets are 6.75 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 14 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 200607 is 4.90 per cent (200506, 4.65 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 $122 million for benefits under the plan in 200607 (200506, $119 million). The liability for non-pension retirement benefits of $2.7 billion as at March 31, 2007 (2006, $2.5 billion) is included in the Other Employee Future Benefits Liability. The expense for 200607 of $385 million (200506, $502 million) is included in the Other Employee Future Benefits Expense.

The discount rate used in the other retirement benefits calculation for 200607 is 5.10 per cent (200506, 5.15 per cent).

The Province entered into an agreement with OPSEU to change various supplemental health benefits in 2005. The cost of these changes of $211 million was included in the 200506 Other Employee Future Benefits Expense.

Post-Employment Benefits

For employees who have completed five years of service, the Province provides termination pay equal to one weeks 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 five 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 $48 million in termination pay in 200607 (200506, $49 million). The liability for termination pay of $834 million as at March 31, 2007 (2006, $805 million) is included in the Other Employee Future Benefits Liability. The expense for 200607 of $78 million (200506, $76 million) 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 long-term disability. The liability for workers compensation of $416 million as at March 31, 2007 (2006, $360 million) net of deposits of $2 million (2006, $3 million) is included in the Other Employee Future Benefits Liability. The expense for 200607 of $98 million (200506, $53 million), including a $42 million payment made in 200607 (200506, $41 million), is included in the Other Employee Future Benefits Expense.

The unfunded liability for long-term disability benefits of $222 million as at March 31, 2007 (2006, $209 million) is net of deposits of $362 million (2006, $322 million), and is included in the Other Employee Future Benefits Liability. The 200607 expense of $77 million (200506, $82 million) is included in the Other Employee Future Benefits Expense. A $64 million payment for long-term disability benefits was made in 200607 (200506, $56 million).

6. Other Liabilities

Other Liabilities As at March 31	2007	2006
Deferred Revenue:
Federal Transfers	$1,628	$1,407
Vehicle and Driver Licences	636	579
Other	782	562
Total Deferred Revenue	3,046	2,548
Other Funds and Liabilities	1,352	1,310
Total	$4,398	$3,858

Federal transfers were received by the Province to provide multi-year funding for provincial expenditures. They are recognized as revenue in the periods identified by the federal government in the underlying agreements.

Deferred Revenue — Federal Transfers
	Total Transfer Received	Included in Revenue		Revenue Deferred to Future Periods		Deferred Revenue
		2005–06 and prior	2006–07	2007–08	2008–09 and thereafter	As at March 31, 2007
Wait Times Reduction	$1,655	$485	$467	$468	$235	$703
Post-Secondary Education Infrastructure	390	–	195	195	–	195
Public Transit Capital	352	–	117	117	118	235
Affordable Housing	312	–	117	117	78	195
Other Federal Transfers	346	7	39	85	215	300
Total	$3,055	$492	$935	$982	$646	$1,628

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.

Other deferred revenue includes deferred capital contributions of $531 million (2006, $313 million) from external sources for the acquisition and construction of tangible capital assets owned by the Province.

Other funds and liabilities include pension and benefit funds related to the Provincial Judges Pension Fund, the Public Service and the Deputy Ministers Supplementary Benefit Accounts, externally restricted funds and other miscellaneous liabilities.

7. Temporary Investments

Temporary Investments As at March 31	2007	2006
Temporary Investments	$7,764	$7,327
Add: Assets Purchased under Resale Agreements	–	80
Less: Assets Sold under Repurchase Agreements	(5,471)	(4,428)
Total	$2,293	$2,979

The fair value of temporary investments, including assets purchased and sold under resale and repurchase agreements, at March 31, 2007 is $2.4 billion (2006, $3.1 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.

8. Tangible Capital Assets

Tangible Capital Assets
As at March 31	2007 Cost	2007 Accumulated Amortization	2007 Net Book Value	2006 Net Book Value
Land	$5,558	$ –	$5,558	$5,366
Buildings	4,375	1,456	2,919	2,791
Transportation Infrastructure	13,220	5,608	7,612	6,932
Other	2,460	1,304	1,156	945
Total	$25,613	$8,368	$17,245	$16,034

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. It is planned to include similar assets owned by provincial ministries in the Provinces financial statements in 200910. 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 200607 totalled $838 million (200506, $815 million). The useful lives of the Provinces tangible capital assets have been estimated as:

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

9. Contingent Liabilities

Obligations Guaranteed by the Province

The authorized limit for loans guaranteed by the Province as at March 31, 2007 was $2.9 billion (2006, $3.8 billion). The outstanding loans guaranteed and other contingencies amounted to $2.6 billion at March 31, 2007 (2006, $3.3 billion). A provision of $416 million (2006, $504 million) based on an estimate of the likely loss arising from guarantees under the Student Support Programs has been reflected in these 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 OPGs 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, 2007, there were $8.3 billion (2006, $8.6 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 111 (2006, 94) 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.

Canadian Blood Services

The provincial and territorial governments of Canada have entered into a Canadian Blood Services Excess Insurance Captive Support Agreement (the Captive Support Agreement) with Canadian Blood Services (CBS) and Canadian Blood Services Captive Insurance Company Limited (CBSI), a wholly owned subsidiary of CBS established under the laws of British Columbia. Under the Captive Support Agreement, each government indemnifies CBSI for its pro-rata share of any payments that CBSI becomes obliged to make under a comprehensive blood risks insurance policy it provides to CBS. The policy has an overall limit of $750 million, which may cover settlements, judgments and defence costs. The policy is in excess of, and secondary to, a $250 million comprehensive insurance policy underwritten by CBS Insurance Company Limited, a subsidiary of CBS domiciled in Bermuda. Given current populations, Ontarios maximum potential liability under the Captive Support Agreement is approximately $376 million. The Province is not aware of any proceedings that could lead to a claim against it under the Captive Support Agreement.

10. Contractual Obligations

Contractual Obligations As at March 31			Minimum Payments to be made in:
	2007	2006	2008	2009	2010	2011	2012	2013 and thereafter
Ontario Power Generation	$11,064	$10,930	$2,542	$2,077	$1,262	$1,650	$1,012	$2,521
Transfer payments	5,158	5,193	1,536	639	364	264	245	2,110
Leases	1,487	1,452	238	197	159	133	104	656
Construction Contracts	1,879	1,007	1,197	467	73	105	4	33
Other	3,477	6,581	809	471	409	355	328	1,105
Total Contractual Obligations	$23,065	$25,163	$6,322	$3,851	$2,267	$2,507	$1,693	$6,425

Ontario Power Generation Inc.’s contractual obligations include future contributions under the Ontario Nuclear Funds Agreement of $3.2 billion, long-term debt repayment obligations of $3.2 billion and fuel supply agreements of $2.1 billion.

11. 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	2006	2005
Assets	$16,398	$14,547
Liabilities	22,395	21,057
Unfunded Liability	(5,997)	(6,510)
Revenues	5,341	4,416
Expenditures	4,828	4,506
Surplus (Deficit)	513	(90)
Unfunded Liability, Beginning of Year	(6,510)	(6,420)
Unfunded Liability, End of Year	($5,997)	($6,510)

Other Trust Funds As at March 31, 2007
	Assets	Liabilities	Fund Balance (Unfunded Liability)
The Public Guardian and Trustee for Province of Ontario	$1,292	$1,203	$89
Motor Vehicle Accident Claims Fund	$54	$232	$(178)
Pension Benefits Guarantee Fund	$152	$265	$(113)
As at December 31, 2006	Assets	Liabilities	Fund Balance
Deposit Insurance Corporation of Ontario	$111	$11	$100

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.

12. Comparative Figures

The comparative figures have been reclassified as necessary to conform to the 2007 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
($ Millions)	2006–07 Budget1	2006–07 Actual	2005-06 Actual
Taxation
Personal Income Tax	21,671	23,655	21,041
Retail Sales Tax	16,165	16,228	15,554
Corporations Tax	9,845	10,845	9,984
Employer Health Tax	4,314	4,371	4,197
Ontario Health Premium	2,551	2,589	2,350
Gasoline Tax	2,303	2,310	2,281
Tobacco Tax	1,485	1,236	1,379
Land Transfer Tax	1,125	1,197	1,159
Electricity Payments-In-Lieu of Taxes	790	757	951
Fuel Tax	742	723	729
Other Taxes	283	399	292
	61,274	64,310	59,917
Government of Canada
Canada Health Transfer	7,619	7,702	7,148
Canada Social Transfer	3,166	3,225	3,052
CHST Supplements	—	—	584
Social Housing	530	532	520
Wait Times Reduction Fund	467	467	243
Early Learning and Child Care	254	253	272
Post Secondary Education Infrastructure Trust	—	195	—
Infrastructure Programs	359	191	285
Medical Equipment Funds	—	—	194
Labour Market Development Agreement	—	184	—
Indian Welfare Services Agreement	168	179	182
Public Transit Capital Trust	—	117	—
Affordable Housing Trust	—	117	—
Bilingualism Development	79	82	86
Labour Market Agreement for Persons with Disabilities	72	76	81
Youth Criminal Justice	66	64	67
Public Health and Immunization Trust	53	53	52
Legal Aid Criminal	43	51	51
Other	706	548	434
	13,582	14,036	13,251

Province of Ontario Schedule 1: Revenues (cont'd)
($ Millions)	2006–07 Budget1	2006–07 Actual	2005-06 Actual
Income from Investment in Government Business Enterprises (Schedule 8)	3,920	4,196	4,308
Other
Sales and Rentals	396	1,108	465
Electricity Debt Retirement Charge	1,027	991	1,021
Vehicle and Driver Registration Fees	1,021	970	763
Power Sales	988	863	779
Local Services Realignment	811	809	775
Other Fees and Licences	556	624	550
Liquor Licence Board of Ontario Revenues	453	467	516
Net Reduction of Power Purchase Contracts	412	412	396
Royalties	243	215	191
Independent Electricity System Operator Revenue	145	124	141
Miscellaneous	902	1,272	1,152
	6,954	7,855	6,749
Total Revenues	85,730	90,397	84,225
1 Amounts reported in 2006 Budget.

Province of Ontario Schedule 2: Expenses by Object
For the year ended March 31 ($ Millions)	2007	2006
Transfer Payments	66,571	62,636
Interest on Debt	8,831	9,019
Salaries and Wages	4,707	4,477
Services	3,202	2,747
Pensions and Other Employee Future Benefits (Note 5)	1,162	1,240
Power Purchases	863	803
Supplies and Equipment	858	794
Amortization of Tangible Capital Assets (Note 8)	838	815
Employee Benefits	636	573
Transportation and Communication	322	445
Increase in Net Assets of Broader Public Sector Organizations (Schedule 9)	(340)	(449)
Other	478	827
Total Expenses	88,128	83,927

Province of Ontario Schedule 3: Expenses by Ministry
($ Millions)	2006–07 Budget1	2006–07 Actual		2005-06 Actual
Aboriginal Affairs Secretariat	21	25		50
Agriculture, Food and Rural Affairs	896	1,078		1,147
Attorney General	1,297	1,348		1,287
Board of Internal Economy	169	163		150
Children and Youth Services	3,198	3,260		3,267
Citizenship and Immigration	90	116		92
Community and Social Services	7,029	7,182		6,718
Community Safety and Correctional Services	1,870	1,876		1,750
Culture	366	410		475
Democratic Renewal Secretariat	10	6		2
Economic Development and Trade	328	199		176
Education	472	423		440
School Boards (Schedule 9)	11,182	11,290		10,886
Teachers' Pension (Note 5)	408	345		295
Energy	229	229		207
Environment	301	314		274
Executive Offices	19	19		19
Finance	1,192	1,327		1,297
Contingency Fund	995	—		—
Interest on Debt	9,429	8,831		9,019
Power Purchases	988	863		803
Government Services	795	856		625
Public Service/OPSEU Pension and Other Employee Future Benefits (Note 5)	594	557		729
Health and Long-Term Care	19,028	19,162		17,841
Hospitals (Schedule 9)	16,133	16,145		14,816
Health Promotion	355	391		290
Intergovernmental Affairs	9	11		10
Labour	150	147		141
Municipal Affairs and Housing	692	843		926
Natural Resources	678	734		628
Northern Development and Mines	347	318		337
Office of Francophone Affairs	4	4		4
Public Infrastructure Renewal	114	426		107
Capital Contingency Plan	175	—		—
Research and Innovation	317	316		332
Revenue	580	563		442
Small Business and Entrepreneurship	23	25		26
Tourism	161	204		210
Training, Colleges and Universities	3,842	4,110		3,504
Colleges (Schedule 9)	1,359	1,273		1,185
Transportation	1,935	2,739		3,420
Year-End Savings2	(700)	—		—
Total Expenses	87,080	88,128		83,927
1 Amounts reported in 2006 Budget.
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)	2007	2006
Transfer Payments	4,807	5,125
Interest on Debt	4,014	4,313
Liability for CRA1 Overpayment	931	1,064
Salaries, Wages and Benefits	569	521
Restructuring	88	200
Other	2,054	1,983
Total Accounts Payable and Accrued Liabilities	12,463	13,206
1 CRA – Canada Revenue Agency.

Province of Ontario Schedule 5: Accounts Receivable
As at March 31 ($ Millions)	2007	2006
Taxes	6,473	5,045
Transfer Payments1	1,376	1,349
Other Accounts Receivable	784	929
	8,633	7,323
Less: Provision for Doubtful Accounts2	(2,172)	(2,004)
	6,461	5,319
Government of Canada	1,415	1,104
Total Accounts Receivable	7,876	6,423
1 The transfer payment receivable consists primarily of recoverables of $857 million (2006, $838 million) for the Ontario Disability Support Program – Financial Assistance , and $422 million (2006, $404 million) for Student Support.
2 The provision for doubtful accounts includes a provision of $788 million (2006, $770 million) for the Ontario Disability Support Program – Financial Assistance and $344 million (2006, $342 million) for Student Support.

Province of Ontario Schedule 6: Loans Receivable
As at March 31 ($ Millions)	2007	2006
Government Business Enterprises1	3,453	3,979
Students2	2,159	1,986
Municipalities3	1,370	1,172
School Boards and Colleges4	866	110
Pension Benefit Guarantee Fund5	297	308
Industrial and Commercial6	286	274
Universities7	165	165
Other	52	44
	8,648	8,038
Unamortized Concession Discounts8	(378)	(283)
Allowance for Doubtful Accounts9	(892)	(880)
Total Loans Receivable	7,378	6,875
1 Loans to government business enterprises bear interest at rates of 4.38% to 6.65% (2006, 3.85% to 6.65%).
2 Loans to students bear interest at rates of 4.25% to 5.00% (2006, 4.25% to 5%).
3 Loans to municipalities bear interest at rates up to 8.00% (2006, 7.38%).
4 Loans to school boards and colleges bear interest at rates of 4.56% to 11.04% (2006, 7.25% to 11.04%).
5 The loan to the Pension Benefit Guarantee Fund bears is interest-free.
6 Loans to industrial and commercial enterprises bear interest at rates up to 7.47% (2006, 11.25%) and include forgivable loans totalling $8.9 million (2006, $19.3 million), which are fully provided for in the allowance for doubtful accounts.
7 Loans to universities are mortgages bearing interest at rates of 6.13% to 11.04% (2006, 5.88% to 10.81%).
8 Unamortized concession discounts are related to loans to municipalities of $128 million (2006, $51 million), loans to Pension Benefit Guarantee Fund of $145 million (2006, $151 million), and loans to industrial and commercial enterprises of $105 million (2006, $81 million).
9 Allowance for doubtful accounts is related to loans to students of $714 million (2006, $693 million), loans to municipalities of $158 million (2006, $158 million), loans to industrial and commercial enterprises and other of $20 million (2006, $29 million).

Repayment terms are as follows:		Principal Repayment
Years to Maturity		2007	2006
1 year		1,561	1,818
2 years		661	658
3 years		868	627
4 years		748	832
5 years		337	711
1–5 years		4,175	4,646
6–10 years		1,313	1,006
11–15 years		400	197
16–20 years		366	161
21–25 years		297	60
Over 25 years		157	120
Subtotal		6,708	6,190
No fixed maturity		1,940	1,848
Total		8,648	8,038

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
Agricultural Research Institute of Ontario2		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 Ontario3		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 Mortgage and Housing Corporation4		Municipal Affairs and Housing
Ontario Immigrant Investor Corporation		Economic Development and Trade
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 Corporation		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 2006–07.
3 Ontario Strategic Infrastructure Financing Authority was amalgamated with Infrastructure Ontario in 2006–07.
4 The name of Ontario Housing Corporation was changed to Ontario Mortgage and Housing Corporation in 2006–07.
Broader Public Sector Organizations
Public Hospitals – Ministry of Health and Long-Term Care
Alexandra Hospital Ingersoll	Hôpital Montfort
Alexandra Marine & General Hospital	Hôpital Notre Dame Hospital
Almonte General Hospital	Hôpital régional de Sudbury Regional Hospital
Anson General Hospital	Hornepayne Community Hospital
Arnprior and District Memorial Hospital	Hospital for Sick Children
Atikokan General Hospital	Hôtel-Dieu Grace Hospital (Cornwall)
Baycrest Centre for Geriatric Care	Hôtel-Dieu Grace Hospital
Bingham Memorial Hospital	Humber River Regional Hospital
Blind River District Health Centre	Huronia District Hospital
Bloorview MacMillan Centre	James Bay General Hospital
Bluewater Health	Joseph Brant Memorial Hospital
Brantford General Hospital	Kemptville District Hospital
Bridgepoint Hospital	Kingston General Hospital
Brockville General Hospital	Kirkland and District Hospital
Cambridge Memorial Hospital	Lady Dunn Health Centre
Campbellford Memorial Hospital	Lady Minto Hospital at Cochrane
Carleton Place and District Memorial Hospital	Lake of the Woods District Hospital
Casey House Hospice	Lakeridge Health Corporation
Chatham-Kent Health Alliance	Leamington District Memorial Hospital
Children's Hospital of Eastern Ontario	Lennox and Addington County General Hospital
Clinton Public Hospital	Listowel Memorial Hospital
Collingwood General and Marine Hospital	London Health Sciences Centre
Cornwall Community Hospital	Manitoulin Health Centre
Credit Valley Hospital	Manitouwadge General Hospital
Deep River and District Hospital Corporation	Markham Stouffville Hospital
Dryden Regional Health Centre	Mattawa General Hospital
Englehart and District Hospital	McCausland Hospital
Espanola General Hospital	Mount Sinai Hospital
Four Counties Health Services	Muskoka Algonquin Healthcare
Geraldton District Hospital	Niagara Health System
Grand River Hospital	Nipigon District Memorial Hospital
Grey Bruce Health Services	Norfolk General Hospital
Groves Memorial Community Hospital	North Bay General Hospital
Guelph General Hospital	North Wellington Health Care Corporation
Haldimand War Memorial Hospital	North York General Hospital
Haliburton Highlands Health Services Corporation	Northumberland Hills Hospital
Halton Healthcare Services Corporation	Orillia Soldiers' Memorial Hospital
Hamilton Health Sciences Corporation	Ottawa Hospital
Hanover & District Hospital	Pembroke Regional Hospital Inc.
Headwaters Health Care Centre	Penetanguishene General Hospital Inc.
Hôpital Général de Hawkesbury and District General	Perth and Smiths Falls District Hospital
Hospital Inc.
Hôpital Glengarry Memorial Hospital	Peterborough Regional Health Centre
Public Hospitals – Ministry of Health and Long-Term Care (cont'd)
Providence Healthcare	St. Mary's Memorial Hospital
Queensway-Carleton Hospital	St. Mary's of the Lake Hospital
Quinte Healthcare Corporation	St. Michael's Hospital
Red Lake Margaret Cochenour Memorial Hospital	St. Peter's Hospital
Religious Hospitallers of St. Joseph of the Hôtel Dieu of Kingston	St. Thomas - Elgin General Hospital
Religious Hospitallers of St. Joseph of the Hôtel Dieu of St. Catharines	St. Vincent de Paul Hospital
Renfrew Victoria Hospital	Stevenson Memorial Hospital
Riverside Health Care Facilities Inc.	Stratford General Hospital
Ross Memorial Hospital	Strathroy Middlesex General Hospital
Rouge Valley Health System	Sunnybrook Health Sciences Centre
Royal Victoria Hospital of Barrie Inc.	Temiskaming Hospital
Runnymede Healthcare Centre	Thunder Bay Regional Health Sciences Centre
Salvation Army Toronto Grace Hospital	Tillsonburg District Memorial Hospital
Sault Area Hospital	Timmins and District Hospital
Scarborough Hospital	Toronto East General Hospital
Seaforth Community Hospital	Toronto Rehabilitation Institute
Sensenbrenner Hospital	Trillium Health Centre
Services de santé de Chapleau Health Services	University Health Network
Sioux Lookout Meno-Ya-Win Health Centre	University of Ottawa Heart Institute
Sisters of Charity of Ottawa Hospital	West Haldimand General Hospital
Smooth Rock Falls Hospital	West Lincoln Memorial Hospital
South Bruce Grey Health Centre	West Nipissing General Hospital
South Huron Hospital Association	West Park Healthcare Centre
Southlake Regional Health Centre	West Parry Sound Health Centre
St. Francis Memorial Hospital	Willett Hospital
St. John's Rehabilitation Hospital	William Osler Health Centre
St. Joseph's Care Group	Wilson Memorial General Hospital
St. Joseph's General Hospital, Elliot Lake Incorporated	Winchester District Memorial Hospital
St. Joseph's Health Care, London	Windsor Regional Hospital
St. Joseph's Health Centre (Toronto)	Wingham and District Hospital
St. Joseph's Health Centre (Guelph)	Women's College Hospital
St. Joseph's Healthcare Hamilton	Woodstock General Hospital
St. Mary's General Hospital	York Central Hospital
Specialty Psychiatric Hospitals – Ministry of Health and Long-Term Care
Centre for Addiction and Mental Health	Royal Ottawa Health Care Group
Northeast Mental Health Centre	Whitby Mental Health Centre
School Boards – Ministry of Education
Airy and Sabine District School Area Board	Hornepayne Roman Catholic Separate School Board
Algoma District School Board	Huron-Perth Catholic District School Board
Algonquin and Lakeshore Catholic District School Board	Huron-Superior Catholic District 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 de district des écoles publiques de langue française no 59	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 boréales	Nakina District School Area Board
Conseil scolaire de district catholique des Grandes Rivières	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 écoles 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 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	Superior North Catholic District School Board
Hamilton-Wentworth District School Board	Superior-Greenstone District School Board
Hastings and Prince Edward District School Board	Thames Valley District School Board
School Boards – Ministry of Education (cont'd)
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	Le collège d'arts appliqués et de technologie la Cité collégiale
Cambrian College of Applied Arts and Technology	Lambton College of Applied Arts and Technology
Canadore College of Applied Arts and Technology	Loyalist College of Applied Arts and Technology
Centennial College of Applied Arts and Technology	Mohawk College of Applied Arts and Technology
Collège Boréal d'arts appliqués et de technologie	Niagara College of Applied Arts and Technology
Conestoga College of Applied Arts and Technology	Northern College of Applied Arts and Technology
Confederation College of Applied Arts and Technology	Sault College of Applied Arts and Technology
Durham College of Applied Arts and Technology	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 Sandford Fleming College of Applied Arts and Technology
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, 2007 ($ Millions)	Algonquin Forestry Authority	Hydro One Inc.	Liquor Control Board of Ontario	Niagara Parks Commission
Assets
Cash and Temporary Investments	2	331	136	–
Accounts Receivable	5	842	24	1
Inventories	–	61	321	6
Prepaid Expenses	–	–	20	–
Long-Term Investments	–	–	–	–
Fixed Assets	1	10,609	233	132
Other Assets	3	830	—	—
Total Assets	11	12,673	734	139
Liabilities
Bank Indebtedness	2	16	–	12
Accounts Payable	–	770	369	6
Deferred Revenue	–	–	–	–
Long-Term Debt	–	5,657	54	2
Other Liabilities	–	1,367	–	3
Total Liabilities	2	7,810	423	23
Net Assets	9	4,863	311	116
Revenue	28	4,663	3,928	79
Expenses	28	4,211	2,621	80
Net Income (Loss)	–	452	1,307	(1)
Net Assets — Beginning of Year	9	4,709	283	118
Payments from (to) CRF	–	(298)	(1,279)	(1)
Net Assets	9	4,863	311	116
1 The information in this table represents unaudited results of government business enterprises for the year ended March 31, 2007. Adjustments have been made to eliminate fair market value gains and losses recorded by government business enterprises.

For the year ended March 31, 2007 ($ Millions)	Ontario Clean Water Agency	Ontario Lottery and Gaming Corporation	Ontario Northland Transportation Commission	Ontario Power Generation Inc.	Total
Assets
Cash and Temporary Investments	42	704	–	15	1,230
Accounts Receivable	12	79	17	397	1,377
Inventories	–	–	19	678	1,085
Prepaid Expenses	3	59	1	–	83
Long-Term Investments	8	–	–	–	8
Fixed Assets	4	2,412	261	12,738	26,390
Other Assets	125	80	89	9,227	10,354
Total Assets	194	3,334	387	23,055	40,527
Liabilities
Bank Indebtedness	–	–	14	–	44
Accounts Payable	10	444	31	820	2,450
Deferred Revenue	–	13	1	141	155
Long-Term Debt	–	392	36	3,384	9,525
Other Liabilities	8	174	63	12,757	14,372
Total Liabilities	18	1,023	145	17,102	26,546
Net Assets	176	2,311	242	5,953	13,981
Revenue	122	6,085	144	5,613	20,662
Expenses	117	4,140	151	5,118	16,466
Net Income (Loss)	5	1,945	(7)	495	4,196
Net Assets — Beginning of Year	171	2,044	250	5,586	13,170
Payments from (to) CRF	–	(1,678)	(1)	(128)	(3,385)
Net Assets	176	2,311	242	5,953	13,981

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 northeast and midwest United States.

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, 20071 ($ Millions)	Hospitals	School Boards	Colleges	Total
Expense
Salaries, Wages and Benefits	12,413	14,396	1,535	28,344
Bursaries, Student Aid and Other Grants	–	–	82	82
Interest Expense	67	335	45	447
Amortization Expense	788	492	149	1,429
Other	5,651	3,586	762	9,999
Total Expenses	18,919	18,809	2,573	40,301
Revenue
School Property Taxes	–	6,243	–	6,243
Fees, Donations and Other Primary Revenues	1,000	438	1,071	2,509
Interest and Investment Income	37	84	21	142
Other	1,737	754	208	2,699
Total Revenue	2,774	7,519	1,300	11,593
Net Expenses	16,145	11,290	1,273	28,708
Transfers from the Province	16,453	11,223	1,372	29,048
Increase/(Decrease) in Net Assets of Broader Public Sector	308	(67)	99	340
Net Assets – Beginning of Year	7,752	7,340	1,647	16,739
Net Assets	8,060	7,273	1,746	17,079
Financial Assets	4,585	2,532	904	8,021
Liabilities	8,276	10,947	1,440	20,663
Net Debt	(3,691)	(8,415)	(536)	(12,642)
Tangible Capital Assets	11,751	15,688	2,282	29,721
Net Assets	8,060	7,273	1,746	17,079
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 according to 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, ON 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, ON M7A 1Z1. For electronic access, go to: www.fin.gov.on.ca.

2007 Pre-Election Report on Ontario’s Finances

This report presents the government’s fiscal plan for the 2007–08 to 2009–10 fiscal years. 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, ON M7A 1Z1. For electronic access, go to: www.fin.gov.on.ca.

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