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, 2008 and the consolidated statement of operations, change in net debt, change in accumulated deficit, 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, 2008 and the results of its operations, the changes in its net debt, the changes in its accumulated deficit, and its cash flows for the year then ended in accordance with Canadian generally accepted accounting principles.

Toronto, Ontario August 1, 2008	Jim McCarter, CA Auditor General Licensed Public Accountant

 

Province of Ontario
Consolidated Statement of Operations

($ Millions)	2007–08 Budget1	2007–08 Actual	2006–07 Actual
Revenues (Schedules 1 and 2)
Personal Income Tax	23,285	24,538	23,655
Retail Sales Tax	16,682	16,976	16,228
Corporations Tax	10,605	12,990	10,845
Employer Health Tax	4,550	4,605	4,371
Gasoline and Fuel Taxes	3,142	3,093	3,033
Ontario Health Premium	2,638	2,713	2,589
Other Taxes	3,417	3,517	3,589
Total Taxation	64,319	68,432	64,310
Transfers from Government of Canada	16,106	16,597	14,036
Income from Investment in Government Business Enterprises (Schedule 9)	3,986	4,437	4,196
Other	7,092	7,656	7,855
	91,503	97,122	90,397
Expenses (Schedules 3 and 4)
Health	37,925	38,168	35,698
Education	12,775	12,618	12,058
Children's and Social Services	10,915	11,265	10,442
Environment, Resources and Economic Development	6,760	10,298	7,629
Post-Secondary Education and Training	5,855	6,482	5,383
Justice	3,314	3,655	3,224
General Government and Other	4,486	5,122	4,863
Interest on Debt	9,123	8,914	8,831
	91,153	96,522	88,128
Reserve	750
Annual Surplus (Deficit)	(400)	600	2,269
See accompanying Notes and Schedules to the Financial Statements.
1 Amounts reported as "Plan" in 2007 Budget.

Province of Ontario
Consolidated Statement of Financial Position

As at March 31 ($ Millions)		2008		2007
Liabilities
Accounts Payable and Accrued Liabilities (Schedule 5)		15,344		12,463
Debt (Note 2)	162,056		156,993
Unamortized Foreign Exchange Gains	161		318
		162,217		157,311
Power Purchase Contracts (Note 4)		2,579		2,977
Pensions and Other Employee Future Benefits (Note 5)		1,024		1,398
Other Liabilities (Note 6)		4,599		4,395
		185,763		178,544
Financial Assets
Cash and Cash Equivalents		4,001		4,329
Temporary Investments (Note 7)		4,143		2,293
Accounts Receivable (Schedule 6)		8,358		7,853
Loans Receivable (Schedule 7)		9,069		7,378
Other Assets (Note 8)		2,068		1,610
Investment in Government Business Enterprises (Schedule 9)		15,706		13,981
		43,345		37,444
Net Debt		(142,418)		(141,100)
Non-Financial Assets
Tangible Capital Assets (Note 9)		19,112		17,245
Net Assets of Broader Public Sector Organizations (Schedule 10)
		17,689		17,079
		36,801		34,324
Accumulated Deficit		(105,617)		(106,776)
Contingent Liabilities (Note 11) and Contractual Obligations (Note 12)
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)	2008			2007
Annual Surplus		600		2,269
Acquisition of Tangible Capital Assets	(2,748)		(2,120)
Amortization of Tangible Capital Assets (Note 9)	880		838
Proceeds on Sale of Tangible Capital Assets	9		20
Loss (Gain) on Sale of Tangible Capital Assets	(8)		51
Increase in Net Assets of Broader Public Sector Organizations (Schedule 10)
	(610)		(340)
		(2,477)		(1,551)
Decrease in Fair Value of Ontario Nuclear Funds (Note 10)	(935)			–
Decrease (Increase) in Net Debt	(2,812)			718
Net Debt at Beginning of Year	(141,100)			(141,928)
Increase in Fair Value of Ontario Nuclear Funds at Beginning of Year (Note 10)	1,494			–
Less: Ontario Electricity Financial Corporation Unfunded Liability Adjustment at Beginning of Year (Note 4)	–			110
Restated Net Debt at Beginning of Year	(139,606)			(141,818)
Net Debt at End of Year	(142,418)			(141,100)
See accompanying Notes and Schedules to the Financial Statements.

Province of Ontario
Consolidated Statement of Change in Accumulated Deficit

For the year ended March 31 ($ Millions)	2008	2007
Accumulated Deficit at Beginning of Year	(106,776)	(109,155)
Increase in Fair Value of Ontario Nuclear Funds at Beginning of Year (Note 10)	1,494	–
Less: Ontario Electricity Financial Corporation Working Capital Adjustment at Beginning of Year (Note 4)	–	110
Restated Accumulated Deficit at Beginning of Year	(105,282)	(109,045)
Annual Surplus	600	2,269
Decrease in Fair Value of Ontario Nuclear Funds (Note 10)	(935)	–
Accumulated Deficit at End of Year	(105,617)	(106,776)
See accompanying Notes and Schedules to the Financial Statements.

Province of Ontario
Consolidated Statement of Cash Flow

For the year ended March 31	2008	2007
($ Millions)
Operating Transactions
Annual Surplus	600	2,269
Amortization of Tangible Capital Assets (Note 9)	880	838
Loss (Gain) on Sale of Tangible Capital Assets	(8)	51
Income from Investment in Government Business Enterprises (Schedule 9)	(4,437)	(4,196)
Remittances from Government Business Enterprises (Schedule 9)	3,271	3,385
Decrease in Liability for Pensions and Other Employee Future Benefits (Note 5)	(374)	(288)
Decrease in Power Purchase Contracts (Note 4)	(398)	(412)
Increase (Decrease) in Accounts Payable and Accrued Liabilities (Schedule 5)	2,881	(743)
Decrease in Other Items	(2,450)	(1,247)
Cash Applied to Operating Transactions	(35)	(343)
Capital Transactions
Acquisition of Tangible Capital Assets	(2,748)	(2,120)
Proceeds from Sale of Tangible Capital Assets	9	20
Increase in Net Assets of Broader Public Sector Organizations (Schedule 10)	(610)	(340)
Cash Applied to Capital Transactions	(3,349)	(2,440)
Investing Transactions
Decrease (Increase) in Temporary Investments (Note 7)	(1,850)	686
Cash Provided by (Applied to) Investing Transactions	(1,850)	686
Financing Transactions
Debt Issued	20,761	19,210
Debt Retired	(15,855)	(17,231)
Cash Provided by Financing Transactions	4,906	1,979
Net Decrease in Cash and Cash Equivalents	(328)	(118)
Cash and Cash Equivalents at Beginning of Year	4,329	4,447
Cash and Cash Equivalents at End of Year	4,001	4,329
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.

Government business enterprises and 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 8.

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 13.

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) are separate legal entities with the power to contract in their own name and that can sue and be sued; ii) have the financial and operating authority to carry on a business; iii) have as their principal activity and source of revenue the selling of goods and services to individuals and non-government organizations; and iv) 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.

Government business enterprises and other government organizations not meeting the materiality thresholds set out in the Reporting Entity section of this note, are reflected in these financial statements through the accounts of the ministries responsible for them.

Measurement Uncertainty

Uncertainty in the determination of the amount at which an item is recognized or disclosed in the financial statements is known as measurement uncertainty. Such uncertainty exists when there could be a material variance between the recognized or disclosed 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, the accruals for personal income and corporations tax revenues, the valuation of the health transfers and Canada social transfer entitlements and the valuation of the Canadian third party asset-backed commercial paper.

Uncertainty in the valuation of the power purchase contracts arises from fluctuations in market prices that would affect 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, 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 of the assets and their actual useful lives. Uncertainty related to the accrual for personal tax and corporations tax revenues arises due to possible subsequent revisions of estimates based on forthcoming information from past year tax return processing. Uncertainty in the estimation of the Canada Health Transfer and Canada Social Transfer entitlements arises from variances between the estimated and actual Ontario shares of the Canada-wide personal income and corporation tax base and population.

The uncertainties relating to the valuation of the Canadian third party asset-backed commercial paper are detailed in Note 8 to these financial statements.

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 events giving rise to them occur, provided that the transfer 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 current year’s cost of benefits, interest on the net benefits liability or asset, amortization of actuarial gains or losses, cost of or gain on plan amendment, and other adjustments.

Other employee future benefits are recognized in the period when the event that obligates the government occurs or in the period 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 denominated 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 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 selected 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-end of the pension plans and that of 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. 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. Although 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 Province’s consolidated financial statements.

Tangible Capital Assets

Tangible capital assets are recorded at historical cost less accumulated amortization. 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. Tangible capital assets, except land, are amortized over the estimated useful lives of the assets on a straight-line basis.

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 PSAB’s 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 $162.1 billion, as at March 31, 2008 (2007, $157.0 billion), is composed mainly of 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 $133.9 billion (2007, $129.3 billion) and Ontario Electricity Financial Corporation (OEFC) debt of $28.3 billion (2007, $28.0 billion). The table below 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							2008	2007
Currency	Canadian Dollar	U.S. Dollar	Japanese Yen	Euro1	Other Currency2		Total	Total
Maturing in:
2008								$19,222
2009	$21,314	4,661	–	795	265	$27,035		20,556
2010	9,016	1,629	738	1,443	870	13,696		13,720
2011	9,277	1,509	–	–	252	11,038		6,438
2012	6,169	1,136	–	–	47	7,352		7,127
2013	7,925	3,274	–	–	118	11,317		–
1–5 years	53,701	12,209	738	2,238	1,552	70,438		67,063
6–10 years	22,667	4,865	103	1,188	1,847	30,670		33,812
11–15 years	9,037	–	–	–	–	9,037		6,424
16–20 years	14,710	–	–	–	–	14,710		12,300
21–25 years	13,469	–	–	–	–	13,469		13,606
26–403 years	23,732	–	–	–	–	23,732		23,788
	$137,316	17,074	841	3,426	3,399	$162,056		$156,993
Unamortized Foreign Exchange Gains/(Losses)	–	119	44	–	(2)	161		318
Total4, 5	$137,316	17,193	885	3,426	3,397	162,217		157,311
Debt Issued for Provincial	111,962	15,136	885	3,426	2,471	133,880		129,308
Purposes6
OEFC Debt	25,354	2,057	–	–	926	28,337		28,003
Total4, 5	$137,316	17,193	885	3,426	3,397	$162,217		$157,311
Effective Interest Rates (Weighted Average)
2008	5.97%	4.76%	2.42%	4.65%	4.42%	5.76%		–
2007	6.28%	4.93%	3.48%	5.13%	4.46%	–		6.02%
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, 2008, was $24.7 billion (2007, $28.2 billion). Of that, $23.9 billion or 96.8% (2007, $27.2 billion or 96.4%) was fully hedged to Canadian dollars. The remaining 3.2% (2007, 3.6%) of foreign debt was unhedged as follows: $47 million (2007, $291 million) U.S. dollar denominated debt, $720 million (2007, $686 million) Japanese yen denominated debt and $26 million (2007, $24 million) Swiss franc denominated debt.
5 Total debt includes issues totalling $2.7 billion (2007, $3.3 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, 2008 includes $1.2 billion (2007, $1.1 billion) long-term debt purchased and held by the Province.

Debt As at March 31	2008	2007
Debt Payable to:
Public Investors	$141,730	$134,431
Canada Pension Plan Investment Fund	10,233	10,233
Ontario Teachers' Pension Plan	4,466	6,411
Public Service Pension Plan	2,260	2,502
Ontario Public Service Employees Union Pension Fund	1,074	1,188
Canada Mortgage and Housing Corporation	863	914
Others1	1,430	1,314
Total	$162,056	$156,993
1 Debt payable to others is comprised mainly of School Board Trust Debt — $831 million (2007 — $848 million) and debt of Ontario Immigrant Investor Corporation - $599 million (2007 — $400 million).

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 as at March 31, 2008 was $180.1 billion (2007, $174.7 billion). This is higher than the book value of $162.1 billion (2007, $157.0 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, 2008, the outstanding amount of $822 million (2007, $840 million) advanced to school boards is included in Other Assets and outstanding debentures of $831 million (2007, $848 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 amount 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, 2008, the respective unhedged levels were 0.6 and nil per cent (2007, 0.7 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 $0.5 million (2007, $2.5 million) and an increase in Interest on Debt of $0.8 million (2007, $2.4 million). For every one Japanese yen decrease versus the Canadian dollar, there would be an increase in debt amount of $7.5 million (2007, $7.0 million) and an increase in Interest on Debt of $4.0 million (2007, $2.4 million). Total foreign exchange gains recognized in the Statement of Operations for 2007–08 were $131 million (2006–07, $127 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, 2008, interest rate resetting risk for Debt Issued for Provincial Purposes and OEFC debt was 15.6 per cent and 23.6 per cent respectively (2007, 15.3 per cent and 14.4 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 $290 million (2007, $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 Province’s derivatives, by type, outstanding as at March 31, 2008, 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											2008	2007
Maturity in Fiscal Year	2009		2010	2011		2012	2013	6–10 Years	Over 10 Years		Total	Total
Swaps:
Interest Rate	$11,444	$8,973		$4,679	$2,509		$7,315	$21,254	$4,854	$61,028		$68,565
Cross Currency	5,278	5,575		1,981	1,226		2,806	10,166	–	27,032		31,320
Forward Foreign	2,649	–		–	–		–	–	–	2,649		1,803
Exchange Contracts
Caps and Floors	–	88		–	–		–	–	–	88		138
Total	$19,371	$14,636		$6,660	$3,735		$10,121	$31,420	$4,854	$90,797		$101,826

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, 2008.

Credit Risk Exposure As at March 31	2008	2007
Gross Credit Risk Exposure1	$2,247	$1,083
Less: Netting2	(1,487)	(898)
Net Credit Risk Exposure	$760	$185
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 prior year’s opening accumulated deficit of the Province was adjusted to reflect an adjustment to the opening Unfunded Liability of the OEFC. The Unfunded Liability of OEFC as at April 1, 2006 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 OEFC’s 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 liability of OEFC is also reflected in these financial statements:

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, it was 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 2007–08 was $398 million (2006–07, $412 million). This results in a liability of $2.6 billion as at March 31, 2008 (2007, $3.0 billion).

 

5. Pensions and Other Employee Future Benefits

Pensions and Other Employee Future Benefits Liability (Asset)
As at March 31	2008	2008	2008	2007
	Pensions	Other Employee Future Benefits	Total	Total
Obligation for benefits	$65,071	$5,757	$70,828	$67,054
Less: plan fund assets	(74,846)	(405)	(75,251)	(68,771)
Unamortized actuarial gains (losses)	4,447	(614)	3,833	1,791
Adjustments1	1,614	–	1,614	1,324
Total	($3,714)	$4,738	$1,024	$1,398
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	2008	2008	2008	2007
	Pensions	Other Employee Future Benefits	Total	Total
Cost of benefits	$1,634	$302	$1,936	$1,860
Amortization of actuarial losses (gains)	(485)	94	(391)	(242)
Employee contributions	(200)	–	(200)	(186)
Interest expense (income)	(452)	235	(217)	(61)
Adjustments1	(24)	–	(24)	(209)
Total2	$473	$631	$1,104	$1,162
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 4. The Teachers' Pension expense of $342 million (2006–07, $345 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 $131 million (2006–07, $172 million) and Other Employee Future Benefits — Retirement Benefits expense of $400 million (2006–07, $385 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 $531 million (2006–07, $557 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 $809 million to OTPP in 2007–08 (2006–07, $797 million), $213 million (including $59 million special payment) to PSPP (2006–07, $218 million including $75 million special payment) and $153 million to OPSEU Pension Plan (2006–07, $143 million). During calendar year 2007, OTPP paid benefits, including transfers to other plans of $4.0 billion (2006, $3.8 billion), PSPP paid $856 million (2006, $822 million) and OPSEU Pension Plan paid $542 million (2006, $529 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 long-term 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 2007–08 is 4.95 per cent (2006–07, 4.90 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 $127 million for benefits under the plan in 2007–08 (2006–07, $122 million). The liability for non-pension retirement benefits of $3.0 billion as at March 31, 2008 (2007, $2.7 billion) is included in the Other Employee Future Benefits Liability. The expense for 2007–08 of $400 million (2006–07, $385 million) is included in the Other Employee Future Benefits Expense.

The discount rate used in the other retirement benefits calculation for 2007–08 is 5.10 per cent (2006–07, 5.10 per cent).

Post-Employment Benefits

For employees who have completed five years of service, the Province provides 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 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 $46 million in termination pay in 2007–08 (2006–07, $48 million). The liability for termination pay of $859 million as at March 31, 2008 (2007, $834 million) is included in the Other Employee Future Benefits Liability. The expense for 2007–08 of $71 million (2006–07, $78 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 $408 million as at March 31, 2008 (2007, $416 million) net of deposits of $1 million (2007, $2 million) is included in the Other Employee Future Benefits Liability. The expense for 2007–08 of $35 million (2006–07, $98 million), including a $43 million payment made in 2007–08 (2006–07, $42 million), is included in the Other Employee Future Benefits Expense.

The unfunded liability for long-term disability benefits of $250 million as at March 31, 2008 (2007, $222 million) is net of deposits of $404 million (2007, $362 million), and is included in the Other Employee Future Benefits Liability. The 2007–08 expense of $99 million (2006–07, $77 million) is included in the Other Employee Future Benefits Expense. A $72 million payment for long-term disability benefits was made in 2007–08 (2006–07, $64 million).

6. Other Liabilities

Other Liabilities	2008	2007
As at March 31
Deferred Revenue:
Federal Transfers	$1,337	$1,628
Vehicle and Driver Licences	625	636
Other	843	782
Total Deferred Revenue	2,805	3,046
Other Funds and Liabilities	1,794	1,349
Total	$4,599	$4,395

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. Details are provided in the following table:

Deferred Revenue — Federal Transfers
	Total Transfer Received			Included in Revenue				Revenue Deferred to Future Periods				Deferred Revenue
				2006–07 and prior		2007–08		2008–09		2009–10 and thereafter		As at March 31, 2008
ecoTrust for Clean Air and Climate Change		$586		$ –		$195		$195		$196		$391
Wait Times Reduction		1,656		953		468		235		–		235
Strategic Highway Infrastructure Fund		172		9		10		7		146		153
Patient Wait Times Guarantee Trust		205		–		68		68		69		137
Public Transit Capital		351		117		117		117		–		117
Affordable Housing		312		117		117		78		–		78
HPV Immunization Trust		117		–		39		39		39		78
Border Infrastructure Fund		91		3		14		3		71		74
Off-Reserve Aboriginal Housing Trust		80		27		26		27		–		27
Other Federal Transfers		437		195		195		41		6		47
Total		$4,007		$1,421		$1,249		$810		$527		$1,337

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 $668 million (2007, $531 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, regulatory liabilities and externally restricted funds. Regulatory liabilities of $166 million and regulatory assets of $53 million are those of the Ontario Power Authority. They arise from the application of the Electricity Act, 1998 and regulations made under that act. These accounts can be an asset or a liability, depending on whether the actual energy cost is higher or lower than the regulated price.

7. Temporary Investments

Temporary Investments	2008	2007
As at March 31
Temporary Investments	$3,315	$7,764
Add: Assets Purchased under Resale Agreements	1,679	–
Less: Assets Sold under Repurchase Agreements	(851)	(5,471)
Total	$4,143	$2,293

The fair value of temporary investments, including assets purchased and sold under resale and repurchase agreements, at March 31, 2008 is $4.3 billion (2007, $2.4 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 where the Province purchases and subsequently resells a security at a specified price on a specified date. A repurchase agreement is an agreement between two parties where the Province sells and subsequently repurchases a security at a specified price on a specified date.

8. Other Assets

Other assets include prepaids, long-term investments, deferred charges and regulatory assets. Regulatory assets are discussed in Note 6. During the fiscal year ended March 31, 2008, investments in Canadian third-party asset-backed commercial paper (“ABCP”) were reclassified from cash and cash equivalents to long-term investments.

As at March 31, 2008, the Province held ABCP issued by a number of trusts with an original cost of $636.9 million (par value - $644.2 million). At the time the Province purchased these investments, approximately 92 per cent were rated R-1 (high) by Dominion Bond Rating Service (DBRS), which is the highest credit rating for commercial paper, with the remainder rated R-1 (mid). However, there has been no active market in ABCP since mid-August 2007, and it has been under a standstill agreement known as the Montreal Accord. The Pan Canadian Investors Committee (the “Investors Committee”) was formed on September 6, 2007 to restructure ABCP, and it filed an application for a restructuring plan (the “Plan”) to the Ontario Superior Court of Justice (the “Court”) pursuant to the Companies Creditors Arrangement Act on March 17, 2008. The Plan was approved by 96 per cent of investors on April 25, 2008 and was sanctioned by the Court on June 5, 2008. The Plan is currently in the appeal process and has yet to receive final court approval. The Province assesses a high probability that the restructuring will be successful and that the Province will receive the restructured notes contemplated by the Plan later in 2008.

The Investors Committee issued an Information Statement on March 20, 2008, containing details of the proposed restructuring. Based on this and other publicly available information, it is estimated that the Province will receive a series of notes that will closely match the maturity of the underlying assets. This will be comprised of approximately $49.6 million of notes backed by traditional assets, $33.7 million of notes with exposure to the U.S. residential mortgage market, and $553.5 million of notes backed by a combination of structured and traditional assets. Approximately 84 per cent of the restructured notes that the Province will receive are expected to have a high credit rating, or be backed by high quality traditional assets.

Under the accounting standards applicable to governments, the Province is required to reflect any impairment in investment value that is deemed to be “other than temporary.” In such cases, the long-term investments are written down to reflect the net recoverable value. The Province has estimated the net recoverable value of its ABCP holdings using a valuation technique based on long-term historical data, and all publicly available information as of the date of finalization of the Consolidated Financial Statements. A probability-weighted discounted cash flow approach was used for the valuation. This analysis takes into consideration the likelihood of a successful restructuring and the specific attributes of each class of note.

Based on this analysis, management’s best estimate of the net recoverable value of the Province’s investment in ABCP, as at March 31, 2008, is approximately $530.1 million, representing a valuation adjustment of approximately $106.8 million. The valuation adjustment has been recognized in the Consolidated Statement of Operations. No interest revenue has been accrued to date for the Province’s investment in ABCP.

In addition, government business enterprises that are consolidated on the modified equity basis recorded total impairment loss of $18 million relating to the ABCP. These write-downs are included in Income from Investments in Government Business Enterprises on the Consolidated Statement of Operations for the year ended March 31, 2008. As at March 31, 2008, the remaining estimated fair value of the government business enterprises investments in ABCP was $40 million.

The Province continues to maintain a strong liquidity position. The liquidity issues in the ABCP market have not had a significant impact on the Province’s operations or financial position.

9. Tangible Capital Assets

Tangible Capital Assets As at March 31	2008	2008	2008	2007
	Cost	Accumulated Amortization	Net Book Value	Net Book Value
Land	$5,682	$ –	$5,682	$5,558
Buildings	4,767	1,524	3,243	2,919
Transportation Infrastructure	15,917	6,374	9,543	7,612
Other	1,939	1,295	644	1,156
Total	$28,305	$9,193	$19,112	$17,245

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 Province’s 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 200708 totalled $880 million (200607, $838 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. Changes in the Fair Value of Ontario Nuclear Funds

Ontario Nuclear Funds Agreement (ONFA) Funds were established by Ontario Power Generation Inc. (OPG) in order to ensure that sufficient funds are available to pay the costs of nuclear station decommissioning and nuclear used fuel waste management. Effective January 1, 2007, OPG adopted the new accounting standards issued by the Canadian Institute of Chartered Accountants on the recognition and measurement of financial instruments. As a result, the ONFA Funds were carried at fair value in OPG’s financial statements.

Effective April 1, 2007, the fair value of ONFA Funds is reflected in Investment in Government Business Enterprises in these consolidated financial statements. Realized gains and losses of ONFA Funds are reflected in Income from Investment in Government Business Enterprises. Unrealized gains and losses of ONFA Funds are recorded as an Increase (Decrease) in Fair Value of Ontario Nuclear Funds in the Consolidated Statement of Change in Net Debt and the Consolidated Statement of Change in Accumulated Deficit. Inter-organizational balances related to ONFA Funds recorded in OPG’s consolidated financial statements have been eliminated.

The cumulative effect of this change in accounting policy resulted in a $1.5 billion increase in the opening Net Assets of Government Business Enterprises (disclosed in Schedule 9 of these financial statements), and a corresponding decrease in the opening Net Debt and Accumulated Deficit as at April 1, 2007. Prior year comparatives have not been restated for this change.

For the year ended March 31, 2008, this change in accounting policy resulted in a $62 million increase in Income from Investment in Government Business Enterprises and in the Province’s annual Surplus. ONFA Funds incurred unrealized losses of $935 million during the year, which resulted in a corresponding decrease in the Province’s Investment in Government Business Enterprises, Net Debt and Accumulated Deficit.

11. Contingent Liabilities

Obligations Guaranteed by the Province

The authorized limit for loans guaranteed by the Province as at March 31, 2008 was $2.4 billion (2007, $2.9 billion). The outstanding loans guaranteed and other contingencies amounted to $2.3 billion as at March 31, 2008 (2007, $2.6 billion). A provision of $445 million (2007, $416 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 (ONFA)

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 $760 million, effective January 1, 2008, 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 through the Ministry of Municipal Affairs and Housing or the Ontario Housing Corporation.

At March 31, 2008, there were $8.0 billion (2007, $8.3 billion) of mortgage loans outstanding. As operating subsidies provided by the Province 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 72 (2007, 73) 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, Ontario’s 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.

12. Contractual Obligations

			Minimum Payments to be made in:
Contractual Obligations As at March 31	2008	2007	2009	2010	2011	2012	2013	2014 and thereafter
Ontario Power Generation	$11,464	$11,064	$2,354	$1,650	$1,919	$1,135	$1,071	$3,335
Transfer payments	9,136	5,158	2,713	1,385	1,117	975	473	2,473
Leases	1,328	1,487	226	166	141	118	114	563
Construction Contracts	2,837	1,879	1,662	677	454	41	1	2
Other	3,625	3,477	653	490	417	381	281	1,403
Total Contractual Obligations	$28,390	$23,065	$7,608	$4,368	$4,048	$2,650	$1,940	$7,776

Ontario Power Generation Inc.’s contractual obligations include future contributions under the Ontario Nuclear Funds Agreement of $3.0 billion, long-term debt repayment obligations of $3.7 billion and fuel supply agreements of $2.3 billion.

13. 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	2007	2006
Assets	$15,972	$16,455
Liabilities	24,066	22,452
Unfunded Liability	(8,094)	(5,997)
Revenues	3,370	5,341
Expenditures	5,467	4,828
Surplus (Deficit)	(2,097)	513
Unfunded Liability, Beginning of Year	(5,997)	(6,510)
Unfunded Liability, End of Year	($8,094)	($5,997)

 

Other Trust Funds As at March 31, 2008
	Assets	Liabilities	Fund Balance (Unfunded Liability)
The Public Guardian and Trustee for Province of Ontario	$1,347	$1,257	$90
Motor Vehicle Accident Claims Fund	$58	$249	($191)
Pension Benefits Guarantee Fund	$175	$277	($102)
As at December 31, 2007	Assets	Liabilities	Fund Balance
Deposit Insurance Corporation of Ontario	$131	$25	$106

Unfunded liabilities of trusts under administration are not included in the Province’s consolidated financial statements as they will be discharged by external parties. The most recent financial statements of these trusts are reproduced in Volume 2 of the Public Accounts of Ontario.

14. Comparative Figures

The comparative figures have been reclassified as necessary to conform to the 2008 presentation.

SCHEDULES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Schedule 1  Revenues by Source

Schedule 2  Revenues by Sector

Schedule 3  Expenses by Ministry

Schedule 4  Expenses by Sector

Schedule 5  Accounts Payable and Accrued Liabilities

Schedule 6  Accounts Receivable

Schedule 7  Loans Receivable

Schedule 8  Government Organizations

Schedule 9  Government Business Enterprises

Schedule 10  Broader Public Sector Organizations

Province of Ontario Schedule 1: Revenues by Source
	2007–08 Budget1			2007–08 Actual			2006–07 Actual
($ Millions)
Taxation
Personal Income Tax	23,285			24,538			23,655
Retail Sales Tax	16,682			16,976			16,228
Corporations Tax	10,605			12,990			10,845
Employer Health Tax	4,550			4,605			4,371
Ontario Health Premium	2,638			2,713			2,589
Gasoline Tax	2,401			2,360			2,310
Land Transfer Tax	1,187			1,363			1,197
Tobacco Tax	1,217			1,127			1,236
Fuel Tax	741			733			723
Electricity Payments-In-Lieu of Taxes	706			546			757
Other Taxes	307			481			399
	64,319			68,432			64,310
Transfers from Government of Canada
Canada Health Transfer	8,104			8,487			7,702
Canada Social Transfer	3,740			3,778			3,225
Labour Market Development Agreement	582			587			184
Transition Trust	577			574			–
Social Housing	528			525			532
Wait Times Reduction Fund	468			468			467
Corporations Tax Administration Redesign	400			250			–
Early Learning and Child Care	–			–			253
Infrastructure Programs	161			207			191
Post-Secondary Education Infrastructure Trust	195			195			195
ecoTrust for Clean Air and Climate Change	195			195			–
Indian Welfare Services Agreement	174			186			179
Public Transit Capital Trust	117			117			117
Affordable Housing Trust	117			117			117
Child Care Spaces	–			97			–
Bilingualism Development	78			97			82
Federal Capital Tax Incentive	–			83			–
Labour Market Agreement for Persons with Disabilities	73			77			76
Patient Wait Time Guarantee	–			68			–
Youth Criminal Justice	66			64			64
Public Health and Immunization Trust	–			–			53
Legal Aid Criminal	43			51			51
Other	488			374			548
	16,106			16,597			14,036

Province of Ontario Schedule 1: Revenues by Source (cont'd)
($ Millions)		2007–08 Budget1			2007–08 Actual				2006–07 Actual
Income from Investment in Government Business Enterprises (Schedule 9)		3,986			4,437				4,196
Other
Vehicle and Driver Registration Fees		1,032			1,051				970
Electricity Debt Retirement Charge		1,013			982				991
Power Sales		831			929				863
Local Services Realignment		833			827				809
Other Fees and Licences		583			668				624
Sales and Rentals		429			553				1,108
Liquor Licence Board of Ontario Revenues		455			475				467
Net Reduction of Power Purchase Contracts		398			398				412
Royalties		217			193				215
Independent Electricity System Operator Revenue		136			135				124
Miscellaneous		1,165			1,445				1,272
		7,092			7,656				7,855
Total Revenues		91,503			97,122				90,397
1 Amounts reported as "Plan" in 2007 Budget.

Province of Ontario  Schedule 2: Revenues by Sector
Sectors	Health1		Education2		Children's and Social Services3		Environment, Resources and Economic Development4
For the year ended March 31 ($ Millions)	2008	2007	2008	2007	2008	2007	2008	2007
Revenues
Taxation (Schedule 1)	–	–	–	–	–	–	2	5
Transfers from Government of Canada (Schedule 1)	87	75	78	72	288	279	837	1,062
Income from Investment in Government Business Enterprises (Schedule 9)	–	–	–	–	–	–	1,206	943
Other (Schedule 1)	211	188	9	50	800	778	2,238	1,896
Total	298	263	87	122	1,088	1,057	4,283	3,906

Province of Ontario  Schedule 2: Revenues by Sector (continued)
Sectors	Post-Secondary Education and Training5		Justice6		General Government and Other7		Interest on Debt8		Total
For the year ended March 31 ($ Millions)	2008	2007	2008	2007	2008	2007	2008	2007	2008	2007
Revenues
Taxation (Schedule 1)	–	–	–	–	68,430	64,305	–	–	68,432	64,310
Transfers from Government of Canada (Schedule 1)	673	289	102	90	14,532	12,169	–	–	16,597	14,036
Income from Investment in Government Business Enterprises (Schedule 9)	–	–	–	–	3,231	3,253	–	–	4,437	4,196
Other (Schedule 1)	72	118	593	552	3,733	4,273	–	–	7,656	7,855
Total	745	407	695	642	89,926	84,000	–	–	97,122	90,397
1 Includes the activities of the Ministries of Health and Long-Term Care, and Health Promotion.
2 Includes the activities of the Ministry of Education.
3 Includes the activities of the Ministries of Children and Youth Services, and Community and Social Services.
4 Includes the activities of the Ministries of Aboriginal Affairs, Agriculture, Food and Rural Affairs, Citizenship and Immigration, Culture, Economic Development and Trade, Energy, Environment, Labour, Municipal Affairs and Housing, Natural Resources, Northern Development and Mines, Research and Innovation, Small Business and Entrepreneurship, Tourism, and Transportation.
5 Includes the activities of the Ministry of Training, Colleges and Universities.
6 Includes the activities of the Ministries of Attorney General, and Community Safety and Correctional Services.
7 Includes the activities of the Ministries of Government and Consumer Services, Intergovernmental Affairs, Public Infrastructure Renewal, Finance, and Revenue, the Board of Internal Economy, the Democratic Renewal Secretariat, Executive Offices and the Office of Francophone Affairs.
8 Includes the activities related to the management of debt of the Province.

Province of Ontario Schedule 3: Expenses by Ministry
($ Millions)	2007–08 Budget1	2007–08 Actual	2006–07 Actual
Aboriginal Affairs	28	234	25
Agriculture, Food and Rural Affairs	895	1,085	1,078
Attorney General	1,387	1,652	1,347
Board of Internal Economy	245	257	163
Children and Youth Services	3,574	3,717	3,260
Citizenship and Immigration	86	94	116
Community and Social Services	7,341	7,548	7,182
Community Safety and Correctional Services	1,927	2,003	1,877
Culture	350	403	410
Democratic Renewal Secretariat	8	3	6
Economic Development and Trade	327	449	199
Education	437	446	423
School Boards (Schedule 10)	11,989	11,830	11,290
Teachers' Pension (Note 5)	349	342	345
Energy	290	286	229
Environment	325	349	314
Executive Offices	18	18	19
Finance	1,381	1,368	1,327
Contingency Fund	580	–	–
Interest on Debt	9,123	8,914	8,831
Power Purchases	831	929	863
Investing in Ontario Act	–	1,149	–
Government and Consumer Services	886	888	924
Public Service/OPSEU Pension and Other	533	531	557
Employee Future Benefits (Note 5)
Health and Long-Term Care	20,043	20,423	19,162
Hospitals (Schedule 10)	17,509	17,381	16,145
Health Promotion	373	364	391
Intergovernmental Affairs	9	14	11
Labour	161	170	147
Municipal Affairs and Housing	760	844	843
Natural Resources	726	797	734
Northern Development and Mines	356	346	318
Office of Francophone Affairs	4	5	4
Public Infrastructure Renewal	138	555	426
Capital Contingency Plan	175	–	–
Research and Innovation	325	388	316
Revenue	578	554	563
Small Business and Entrepreneurship	26	31	25
Tourism	195	234	204
Training, Colleges and Universities	4,402	5,079	4,110
Colleges (Schedule 10)	1,453	1,403	1,273
Transportation	1,910	3,439	2,671
Year-End Savings2	(900)	–	–
Total Expenses	91,153	96,522	88,128
1 Amounts reported as "Plan" in 2007 Budget.
2 For Budget purposes, these items were not allocated to individual ministries.

Province of Ontario  Schedule 4: Expenses by Sector1
Sectors	Health2		Education3		Children's and Social Services4		Environment, Resources and Economic Development5
For the year ended March 31 ($ Millions)	2008	2007	2008	2007	2008	2007	2008	2007
Expenses
Transfer Payments	36,482	34,311	11,834	11,227	10,565	9,800	6,254	4,102
Interest on Debt	–	–	53	53	–	–	–	–
Salaries and Wages	503	415	156	141	455	443	1,248	1,174
Services	715	571	113	115	120	126	1,194	1,145
Pensions and Employee Future Benefits (Note 5)	8	9	342	345	7	7	9	8
Power Purchases	–	–	–	–	–	–	–	–
Supplies and Equipment	360	360	12	11	26	30	221	178
Amortization of Tangible Capital Assets (Note 9)	31	27	5	4	–	–	749	713
Employee Benefits	81	65	24	22	78	66	203	185
Transportation and Communication	101	82	18	18	57	40	85	82
Increase/(Decrease) in Net Assets of Broader Public Sector Organizations	(330)	(308)	(11)	67	–	–	–	–
Other	67	18	27	28	61	23	405	115
	38,018	35,550	12,573	12,031	11,369	10,535	10,368	7,702
Adjustments10	150	148	45	27	(104)	(93)	(70)	(73)
Total	38,168	35,698	12,618	12,058	11,265	10,442	10,298	7,629

Province of Ontario  Schedule 4: Expenses by Sector1 (continued)
Sectors	Post-Secondary Education and Training6		Justice7		General Government and Other8		Interest on Debt9		Total
For the year ended March 31 ($ Millions)	2008	2007	2008	2007	2008	2007	2008	2007	2008	2007
Expenses
Transfer Payments	6,630	5,387	381	236	1,729	1,508	–	–	73,875	66,571
Interest on Debt	–	–	–	–	–	–	8,861	8,778	8,914	8,831
Salaries and Wages	80	51	1,797	1,649	891	834	–	–	5,130	4,707
Services	44	39	784	744	121	462	–	–	3,091	3,202
Pensions and Employee Future Benefits (Note 5)	–	–	17	15	721	778	–	–	1,104	1,162
Power Purchases	–	–	–	–	929	863		–	929	863
Supplies and Equipment	2	3	207	201	96	75	–	–	924	858
Amortization of Tangible Capital Assets (Note 9)	–	–	3	4	92	90	–	–	880	838
Employee Benefits	11	6	216	199	126	93	–	–	739	636
Transportation and Communication	6	5	82	87	136	8	–	–	485	322
Increase/(Decrease) in Net Assets of Broader Public Sector Organizations	(269)	(99)	–	–	–	–	–	–	(610)	(340)
Other	25	21	181	102	295	171	–	–	1,061	478
	6,529	5,413	3,668	3,237	5,136	4,882	8,861	8,778	96,522	88,128
Adjustments10	(47)	(30)	(13)	(13)	(14)	(19)	53	53	–	–
Total	6,482	5,383	3,655	3,224	5,122	4,863	8,914	8,831	96,522	88,128
1 The information in the sectors columns represents activities of ministries and consolidated agencies before adjustments to eliminate transactions between sectors.
2 Includes the activities of the Ministries of Health and Long-Term Care, and Health Promotion.
3 Includes the activities of the Ministry of Education.
4 Includes the activities of the Ministries of Children and Youth Services, and Community and Social Services.
5 Includes the activities of the Ministries of Aboriginal Affairs, Agriculture, Food and Rural Affairs, Citizenship and Immigration, Culture, Economic Development and Trade, Energy, Environment, Labour, Municipal Affairs and Housing, Natural Resources, Northern Development and Mines, Research and Innovation, Small Business and Entrepreneurship, Tourism, Transportation, and Investing in Ontario Act (IOA) expense.
6 Includes the activities of the Ministry of Training, Colleges and Universities.
7 Includes the activities of the Ministries of Attorney General, and Community Safety and Correctional Services.
8 Includes the activities of the Ministries of Government and Consumer Services, Intergovernmental Affairs, Public Infrastructure Renewal, Finance (except for IOA expense), Revenue, the Board of Internal Economy, the Democratic Renewal Secretariat, Executive Offices and the Office of Francophone Affairs.
9 Includes the activities related to the management of debt of the Province.
10 Includes adjustments to eliminate transactions between sectors.

Province of Ontario Schedule 5: Accounts Payable and Accrued Liabilities
As at March 31 ($ Millions)	2008	2007
Transfer Payments	7,727	4,807
Interest on Debt	3,715	4,014
Liability for CRA1 Overpayment	798	931
Salaries, Wages and Benefits	655	569
Restructuring	–	88
Other	2,449	2,054
Total Accounts Payable and Accrued Liabilities	15,344	12,463
1 CRA – Canada Revenue Agency.

Province of Ontario Schedule 6: Accounts Receivable
As at March 31 ($ Millions)	2008	2007
Taxes	6,502	6,473
Transfer Payments1	1,376	1,376
Other Accounts Receivable	866	761
	8,744	8,610
Less: Provision for Doubtful Accounts2	(2,256)	(2,172)
	6,488	6,438
Government of Canada	1,870	1,415
Total Accounts Receivable	8,358	7,853
1 The transfer payment receivable consists primarily of recoverables of $880 million (2007, $857 million) for the Ontario Disability Support Program – Financial Assistance, and $408 million (2007, $422 million) for Student Support.
2 The provision for doubtful accounts includes a provision of $806 million (2007, $788 million) for the Ontario Disability Support Program – Financial Assistance, and $340 million (2007, $344 million) for Student Support.

Province of Ontario Schedule 7: Loans Receivable
As at March 31 ($ Millions)	2008	2007
Government Business Enterprises1	4,081	3,453
Students2	2,260	2,159
Municipalities3	1,682	1,370
School Boards and Colleges4	1,511	866
Pension Benefit Guarantee Fund5	286	297
Industrial and Commercial6	327	286
Universities7	185	165
Other	57	52
	10,389	8,648
Unamortized Concession Discounts8	(403)	(378)
Allowance for Doubtful Accounts9	(917)	(892)
Total Loans Receivable	9,069	7,378
1 Loans to government business enterprises bear interest at rates of 1.99% to 6.65% (2007, 4.38% to 6.65%).
2 Loans to students bear interest at rates of 4.25% to 6.25% (2007, 4.25% to 5.00%).
3 Loans to municipalities bear interest at rates up to 8.00% (2007, 8.00%).
4 Loans to school boards and colleges bear interest at rates of 3.95% to 11.04% (2007, 4.56% to 11.04%).
5 The loan to the Pension Benefit Guarantee Fund is interest-free.
6 Loans to industrial and commercial enterprises bear interest at rates up to 7.95% (2007, 7.47%) and include forgivable loans totalling $8.9 million (2007, $8.9 million), which are fully provided for in the allowance for doubtful accounts.
7 Loans to universities are mortgages bearing interest at rates of 5.85% to 10.81% (2007, 6.13% to 11.04%).
8 Unamortized concession discounts are related to loans to municipalities of $130 million (2007, $128 million), loans to Pension Benefit Guarantee Fund of $140 million (2007, $145 million), and loans to industrial and commercial enterprises of $129 million (2007, $105 million).
9 Allowance for doubtful accounts is related to loans to students of $736 million (2007, $714 million), loans to municipalities of $168 million (2007, $158 million), loans to industrial and commercial enterprises and other of $23 million (2007, $20 million).

 

Repayment Terms			Principal Repayment ($ Millions)
Years to Maturity			2008	2007
1 year			1,577	1,561
2 years			892	661
3 years			770	868
4 years			362	748
5 years			588	337
1–5 years			4,189	4,175
6–10 years			2,151	1,313
11–15 years			573	400
16–20 years			553	366
21–25 years			492	297
Over 25 years			175	157
Subtotal			8,133	6,708
No fixed maturity			2,256	1,940
Total			10,389	8,648

Province of Ontario
Schedule 8: 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
Other Government Organizations1		Responsible Ministry
Agricorp		Agriculture, Food and Rural Affairs
Agricultural Research Institute of Ontario		Agriculture, Food and Rural Affairs
Cancer Care Ontario		Health and Long-Term Care
Education Quality and Accountability Office		Education
GO Transit (Toronto Area Transit Operating Authority		Transportation
and Greater Toronto Transit Authority)
Independent Electricity System Operator		Energy
Legal Aid Ontario		Attorney General
Local Health Integration Networks2		Health and Long-Term Care
Central East Local Health Integration Network		Health and Long-Term Care
Central Local Health Integration Network		Health and Long-Term Care
Central West Local Health Integration Network		Health and Long-Term Care
Champlain Local Health Integration Network		Health and Long-Term Care
Erie St. Clair Local Health Integration Network		Health and Long-Term Care
Hamilton Niagara Haldimand Brant Local Health Integration Network		Health and Long-Term Care
Mississauga Halton Local Health Integration Network		Health and Long-Term Care
North East Local Health Integration Network		Health and Long-Term Care
North Simcoe Muskoka Local Health Integration Network		Health and Long-Term Care
North West Local Health Integration Network		Health and Long-Term Care
South East Local Health Integration Network		Health and Long-Term Care
South West Local Health Integration Network		Health and Long-Term Care
Toronto Central Local Health Integration Network		Health and Long-Term Care
Waterloo Wellington Local Health Integration Network		Health and Long-Term Care
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 French-Language Educational Communications Authority2		Education
Ontario Immigrant Investor Corporation		Economic Development and Trade
Ontario Infrastructure Projects Corporation (Infrastructure Ontario)		Public Infrastructure Renewal
Ontario Mortgage and Housing Corporation		Municipal Affairs and Housing
Ontario Place Corporation		Tourism
Ontario Power Authority		Energy
Ontario Racing Commission		Government and Consumer 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
Ornge2		Health and Long-Term Care
Royal Ontario Museum		Culture
Smart Systems for Health Agency		Health and Long-Term Care
Waterfront Toronto3		Public Infrastructure Renewal
Broader Public Sector Organizations Public Hospitals – Ministry of Health and Long-Term Care
Alexandra Hospital Ingersoll		Grey Bruce Health Services
Alexandra Marine & General Hospital		Groves Memorial Community Hospital
Almonte General Hospital		Guelph General Hospital
Anson General Hospital		Haldimand War Memorial Hospital
Arnprior and District Memorial Hospital		Haliburton Highlands Health Services Corporation
Atikokan General Hospital		Halton Healthcare Services Corporation
Baycrest Centre for Geriatric Care		Hamilton Health Sciences Corporation
Bingham Memorial Hospital		Hanover & District Hospital
Blind River District Health Centre		Headwaters Health Care Centre
Bloorview MacMillan Centre		Hôpital Général de Hawkesbury and District General
		Hospital Inc.
Bluewater Health		Hôpital Glengarry Memorial Hospital
Brantford General Hospital		Hôpital Montfort
Bridgepoint Hospital		Hôpital Notre Dame Hospital
Brockville General Hospital		Hôpital régional de Sudbury Regional Hospital
Cambridge Memorial Hospital		Hornepayne Community Hospital
Campbellford Memorial Hospital		Hospital for Sick Children
Carleton Place and District Memorial Hospital		Hôtel-Dieu Hospital, Cornwall
Casey House Hospice		Hôtel-Dieu Grace Hospital
Chatham-Kent Health Alliance		Hôtel-Dieu Shaver Health and Rehabilitation Centre
Children's Hospital of Eastern Ontario		Humber River Regional Hospital
Clinton Public Hospital		Huronia District Hospital
Collingwood General and Marine Hospital		James Bay General Hospital
Cornwall Community Hospital		Joseph Brant Memorial Hospital
Credit Valley Hospital		Kemptville District Hospital
Deep River and District Hospital Corporation		Kingston General Hospital
Dryden Regional Health Centre		Kirkland and District Hospital
Englehart and District Hospital		Lady Dunn Health Centre
Espanola General Hospital		Lady Minto Hospital at Cochrane
Four Counties Health Services		Lake of the Woods District Hospital
Geraldton District Hospital		Lakeridge Health Corporation
Grand River Hospital		Leamington District Memorial Hospital
Lennox and Addington County General Hospital		South Huron Hospital Association
Listowel Memorial Hospital		Southlake Regional Health Centre
London Health Sciences Centre		St. Francis Memorial Hospital
Manitoulin Health Centre		St. John's Rehabilitation Hospital
Manitouwadge General Hospital		St. Joseph's Care Group
Markham Stouffville Hospital		St. Joseph's General Hospital, Elliot Lake
Mattawa General Hospital		St. Joseph's Health Care, London
McCausland Hospital		St. Joseph's Health Centre (Toronto)
Mount Sinai Hospital		St. Joseph's Health Centre (Guelph)
Muskoka Algonquin Healthcare		St. Joseph's Healthcare Hamilton
Niagara Health System		St. Mary's General Hospital
Nipigon District Memorial Hospital		St. Mary's Memorial Hospital
Norfolk General Hospital		St. Mary's of the Lake Hospital (Kingston PCCC)
North Bay General Hospital		St. Michael's Hospital
North Wellington Health Care Corporation		St. Peter's Hospital
North York General Hospital		St. Thomas - Elgin General Hospital
Northumberland Hills Hospital		St. Vincent de Paul Hospital
Orillia Soldiers' Memorial Hospital		Stevenson Memorial Hospital
Ottawa Hospital		Stratford General Hospital
Pembroke Regional Hospital Inc.		Strathroy Middlesex General Hospital
Penetanguishene General Hospital Inc.		Sunnybrook Health Sciences Centre
Perth and Smiths Falls District Hospital		Temiskaming Hospital
Peterborough Regional Health Centre		Thunder Bay Regional Health Sciences Centre
Providence Healthcare		Tillsonburg District Memorial Hospital
Queensway-Carleton Hospital		Timmins and District Hospital
Quinte Healthcare Corporation		Toronto East General Hospital
Red Lake Margaret Cochenour Memorial Hospital		Toronto Rehabilitation Institute
Religious Hospitallers of St. Joseph of the Hôtel Dieu of Kingston		Trillium Health Centre
Renfrew Victoria Hospital		University Health Network
Riverside Health Care Facilities Inc.		University of Ottawa Heart Institute
Ross Memorial Hospital		West Haldimand General Hospital
Rouge Valley Health System		West Lincoln Memorial Hospital
Royal Victoria Hospital of Barrie Inc.		West Nipissing General Hospital
Runnymede Healthcare Centre		West Park Healthcare Centre
Salvation Army Toronto Grace Hospital		West Parry Sound Health Centre
Sault Area Hospital		Willett Hospital
Scarborough Hospital		William Osler Health Centre
Seaforth Community Hospital		Wilson Memorial General Hospital
Sensenbrenner Hospital		Winchester District Memorial Hospital
Services de santé de Chapleau Health Services		Windsor Regional Hospital
Sioux Lookout Meno-Ya-Win Health Centre		Wingham and District Hospital
Sisters of Charity of Ottawa Hospital		Women's College Hospital
Smooth Rock Falls Hospital		Woodstock General Hospital
South Bruce Grey Health Centre		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		Hamilton-Wentworth District School Board
Algoma District School Board		Hastings and Prince Edward District School Board
Algonquin and Lakeshore Catholic District School Board		Hornepayne Roman Catholic Separate School Board
Asquith-Garvey District School Area Board		Huron-Perth Catholic District School Board
Atikokan Roman Catholic Separate School Board		Huron-Superior Catholic District School Board
Avon Maitland District School Board		James Bay Lowlands Secondary School Board
Bloorview MacMillan School Authority		Kawartha Pine Ridge District School Board
Bluewater District School Board		Keewatin-Patricia District School Board
Brant Haldimand Norfolk Catholic District School Board		Kenora Catholic District School Board
Bruce-Grey Catholic District School Board		KidsAbility School Authority
Campbell Children's School Authority		Lakehead District School Board
Caramat District School Area Board		Lambton Kent District School Board
Catholic District School Board of Eastern Ontario		Limestone District School Board
Collins District School Area Board		London District Catholic School Board
Connell and Ponsford District School Area Board		Mine Centre District School Area Board
Conseil des écoles publiques de l'Est de l'Ontario		Missarenda District School Area Board
Conseil scolaire de district catholique Centre-Sud		Moose Factory Island District School Area Board
Conseil scolaire de district catholique de l'Est ontarien		Moosonee District School Area Board
Conseil scolaire de district catholique des Aurores boréales		Moosonee Roman Catholic Separate School Board
Conseil scolaire de district catholique des Grandes Rivières		Murchison and Lyell District School Area Board
Conseil scolaire de district catholique du Centre-Est de l'Ontario		Nakina District School Area Board
Conseil scolaire de district catholique du Nouvel-Ontario		Near North District School Board
Conseil scolaire de district catholique Franco-Nord		Niagara Catholic District School Board
Conseil scolaire de district des écoles catholiques du Sud-Ouest		Niagara Peninsula Children's Centre School Authority
Conseil scolaire de district du Centre Sud-Ouest		Nipissing-Parry Sound Catholic District School Board
Conseil scolaire de district du Grand Nord de l'Ontario		Northeastern Catholic District School Board
Conseil scolaire de district du Nord-Est de l'Ontario		Northern District School Area Board
District School Board of Niagara		Northwest Catholic District School Board
District School Board Ontario North East		Ottawa Children's Treatment Centre School Authority
Dubreuilville Roman Catholic Separate School Board		Ottawa Catholic District School Board
Dufferin-Peel Catholic District School Board		Ottawa-Carleton District School Board
Durham Catholic District School Board		Parry Sound Roman Catholic Separate School Board
Durham District School Board		Peel District School Board
Essex County Children's Rehabilitation Centre School Authority		Penetanguishene Protestant Separate School Board
Foleyet District School Area Board		Peterborough Victoria Northumberland and
		Clarington Catholic District School Board
Foleyet Roman Catholic Separate School Board		Rainbow District School Board
Gogama District School Area Board		Rainy River District School Board
Gogama Roman Catholic Separate School Board		Red Lake Area Combined Roman Catholic Separate School Board
Grand Erie District School Board		Renfrew County Catholic District School Board
Greater Essex County District School Board		Renfrew County District School Board
Halton Catholic District School Board		Simcoe County District School Board
Halton District School Board		Simcoe Muskoka Catholic District School Board
Hamilton-Wentworth Catholic District School Board		St. Clair Catholic District School Board
Sudbury Catholic District School Board		Upper Grand District School Board
Superior North Catholic District School Board		Upsala District School Area Board
Superior-Greenstone District School Board		Waterloo Catholic District School Board
Thames Valley District School Board		Waterloo Region District School Board
Thunder Bay Catholic District School Board		Wellington Catholic District School Board
Toronto Catholic District School Board		Windsor-Essex Catholic District School Board
Toronto District School Board		York Catholic District School Board
Trillium Lakelands District School Board		York Region District School Board
Upper Canada District School 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 Institute of Technology and Advanced Learning		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 Institute of Technology and Advanced Learning
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
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 2007–08.
3 Formerly known as Toronto Waterfront Revitalization Corporation.

Province of Ontario Schedule 9: Government Business Enterprises Summary financial information of Government Business Enterprises is provided below.
For the year ended March 31, 2008 ($ Millions)	Algonquin Forestry Authority	Hydro One Inc.	Liquor Control Board of Ontario	Niagara Parks Commission
Assets
Cash and Temporary Investments	5	538	142	3
Accounts Receivable	6	828	26	–
Inventories	–	26	335	6
Prepaid Expenses	–	–	18	–
Long-Term Investments	–	–	–	–
Fixed Assets	1	11,362	248	149
Other Assets	–	739	–	–
Total Assets	12	13,493	769	158
Liabilities
Bank Indebtedness	–	12	–	–
Accounts Payable	3	791	376	7
Deferred Revenue	–	–	–	–
Long-Term Debt	–	6,159	53	33
Other Liabilities	–	1,520	–	3
Total Liabilities	3	8,482	429	43
Net Assets	9	5,011	340	115
Revenue	24	4,599	4,133	77
Expenses	24	4,192	2,759	78
Net Income (Loss)	–	407	1,374	(1)
Net Assets at Beginning of Year	9	4,863	311	116
Increase in Fair Value of Ontario Nuclear Funds at Beginning of Year (Note 10)	–	–	–	–
Restated Net Assets at Beginning of Year	9	4,863	311	116
Decrease in Fair Value of Ontario Nuclear Funds (Note 10)	–	–	–	–
Remittances from (to) Consolidated Revenue Fund	–	(259)	(1,345)	–
Net Assets	9	5,011	340	115

Ontario Clean Water Agency	Ontario Lottery and Gaming Corporation	Ontario Northland Transportation Commission	Ontario Power Generation Inc.	Total
Assets
49	752	–	303	1,792
18	66	26	390	1,360
–	–	18	664	1,049
2	58	1	38	117
9	–	–	–	9
4	2,500	264	12,760	27,288
120	61	86	11,306	12,312
202	3,437	395	25,461	43,927
Liabilities
–	–	13	–	25
10	389	32	1,334	2,942
–	16	1	129	146
–	191	30	3,925	10,391
12	359	69	12,754	14,717
22	955	145	18,142	28,221
180	2,482	250	7,319	15,706
132	6,261	140	5,761	21,127
128	4,404	151	4,954	16,690
4	1,857	(11)	807	4,437
176	2,311	242	5,953	13,981
–	–	–	1,494	1,494
176	2,311	242	7,447	15,475
–	–	–	(935)	(935)
–	(1,686)	19	–	(3,271)
180	2,482	250	7,319	15,706

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 10: Broader Public Sector Organizations Summary financial information of Broader Public Sector Organizations is provided below.
For the year ended March 31, 20081 ($ Millions)	Hospitals	School Boards	Colleges	Total
Expense
Salaries, Wages and Benefits	13,974	15,090	1,658	30,722
Bursaries, Student Aid and Other Grants	–	–	84	84
Interest Expense	110	374	44	528
Amortization Expense	760	549	146	1,455
Other	5,504	3,553	806	9,863
Total Expenses	20,348	19,566	2,738	42,652
Revenue
School Property Taxes	–	6,457	–	6,457
Fees, Donations and Other Primary Revenues	1,427	469	1,123	3,019
Interest and Investment Income	114	82	25	221
Other	1,426	728	187	2,341
Total Revenue	2,967	7,736	1,335	12,038
Net Expenses	17,381	11,830	1,403	30,614
Transfers from the Province	17,711	11,841	1,672	31,224
Increase/(Decrease) in Net Assets of Broader Public Sector Organizations	330	11	269	610
Net Assets – Beginning of Year	8,060	7,273	1,746	17,079
Net Assets	8,390	7,284	2,015	17,689
Financial Assets	4,732	2,572	1,081	8,385
Liabilities	9,216	11,941	1,426	22,583
Net Debt	(4,484)	(9,369)	(345)	(14,198)
Tangible Capital Assets	12,874	16,653	2,360	31,887
Net Assets	8,390	7,284	2,015	17,689
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 to the Province's fiscal year.

 

Glossary

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Note: The descriptions of the terms in the glossary are provided for the purpose of assisting readers of the 2008 Public Accounts. The descriptions do not affect or alter the meaning of any term under law. The glossary does not form part of the audited consolidated financial statements.

Accumulated Amortization: the total amortization which has been recorded over the life of an asset to date. The asset’s total cost less the accumulated amortization gives the asset’s net book value.

Accumulated Deficit: the difference between liabilities and assets. It represents the total of all past annual deficits minus all past annual surpluses, including prior period adjustments.

Amortization: expensing a portion of an asset’s cost in an accounting period by allocating its cost over its estimated useful life. This is applicable to tangible capital assets and items such as expenses relating to a debt issue.

Appropriation: an authority of the Legislative Assembly to pay money out of the Consolidated Revenue Fund or to incur a non-cash expense.

Broader Public Sector (BPS): public hospitals, special psychiatric hospitals, school boards and colleges. For financial statements purposes, universities and other organizations such as municipalities are excluded because they do not meet the criteria of government organizations as recommended by the Public Sector Accounting Board of the Canadian Institute of Chartered Accountants.

Canada Health Transfer (CHT): a federal transfer provided to each province and territory in support of health care.

Canada Social Transfer (CST): a federal transfer provided to each province and territory in support of post-secondary education, social assistance and social services, including early childhood development and early learning and child care.

Capital Gain: the profit arising from the sale or transfer of capital assets or investments. For accounting purposes, it is the proceeds or market value received less the net book value of the capital asset or investment.

Capital Lease: a lease that, from the point of view of the lessee, transfers substantially all the benefits and risks incident to ownership of property to the lessee.

Cash and Cash Equivalents: cash or other short-term liquid low-risk instruments that are readily convertible to cash, typically within three months or less.

Consolidated Revenue Fund (CRF): the aggregate of all public monies on deposit to the credit of the Minister of Finance or in the name of any agency of the Crown approved by the Lieutenant Governor in Council. Payments made from the CRF must be appropriated by a statute. See Appropriation.

Consolidation: the inclusion of the financial results of government-controlled organizations in the Province’s consolidated financial statements.

Consumer Price Index (CPI): a broad measure of the cost of living. Through the monthly CPI, Statistics Canada tracks the retail price of a representative shopping basket of goods and services from an average household's expenditure: food, housing, transportation, furniture, clothing, and recreation. The percentage of the total basket that any item occupies is termed the “weight” and reflects typical consumer spending patterns. Since people tend to spend more on food than clothing, changes in the price of food have a bigger impact on the index than, for example, changes in the price of clothing and footwear.

Contingency Fund: an amount of expense that is approved by the Legislative Assembly at the beginning of the year to cover higher spending due to unforeseen events. This approved spending limit is allocated during the year to ministries for their programs and activities. The actual costs incurred are charged to the respective programs and activities and not to the contingency fund. Therefore, contingency fund as at the end of the Province’s fiscal year is nil. See Reserve.

Contingent Liabilities: possible obligations that may result in the future sacrifice of economic benefits arising from existing conditions or situations involving uncertainty. That uncertainty will ultimately be resolved when one or more future events not wholly within the government's control occurs or fails to occur. Resolution of the uncertainty will confirm the incurrence or non-incurrence of a liability.

Contractual Obligations: obligations of a government to others that will become liabilities when the terms of any contract or agreement, which the government had entered into, are met.  

Debenture: a debt instrument where the issuer promises to pay interest and repay the principal by the maturity date. It is unsecured, meaning there is no lien on any specific asset.

Debt: an obligation resulting from the borrowing of money.

Deficit: the amount by which government expenses exceed revenues in any given year. On a forecast basis, a reserve may be included.

Derivatives: financial contracts that derive their value from other underlying instruments. The Province uses derivatives including swaps, forward foreign exchange contracts, forward rate agreements, futures and options to hedge and minimize interest costs.

Fair Value: the price that would be agreed upon in an arm’s length transaction and in an open market between knowledgeable, willing parties who are under no compulsion to act. It is not the effect of a forced or liquidation sale.

Financial Assets: assets that could be used to discharge existing liabilities or finance future operations and are not for consumption in the normal course of operations. Financial assets include cash; an asset that is convertible to cash; a contractual right to receive cash or another financial asset from another party; a temporary or portfolio investment; a financial claim on an outside organization or individual; and inventory.

Financial Instrument: liquid asset, equity security in an entity, or a contract that gives rise to a financial asset of one contracting party and a financial liability or equity instrument of the other contracting party.

Fiscal Plan: an outline of the government’s consolidated revenue and expense plan for the upcoming fiscal year and the medium term, including information on the projected surplus/deficit. The plan is formally presented in the Budget, which the government presents in the spring of each year and is updated, as required, during the year. The fiscal Plan numbers can be different from the expenditures outlined in the Printed Estimates.

Fiscal Year: the Province of Ontario’s fiscal year runs from April 1 of a year to March 31 of the following year.

Floating Rate Notes (FRNs): debt instruments that bear a variable rate of interest.

Forgivable Loan: advances where the terms and conditions of the loan agreement allow for the non-repayment of the principal or accrued interest when certain conditions are met.

Forward Contract: a contract that obligates one party to buy, and another party to sell, a specified amount of a particular asset at a specified price, on a given date in the future.

Forward Rate Agreement: a forward contract in which one party pays a fixed interest rate and receives a floating interest rate.

Fund: fiscal and accounting entity segregated for the purpose of carrying on specific activities, or attaining certain objectives in accordance with special regulations, restrictions or limitations.

Futures: an exchange-traded contract that confers an obligation to buy or sell a physical or financial commodity at a specified price and amount on a future date.

Gross Domestic Product (GDP): the total unduplicated value of the goods and services produced in the economy of a country or region during a given period of time such as a quarter or a year. Gross domestic product can be measured three ways: as total income earned in current production, as total final expenditures, or as total net value added in current production.

Hedging: a strategy to minimize the risk of loss on an asset (or a liability) from market fluctuations such as interest rate or foreign exchange rate changes. This is accomplished by entering into offsetting commitments with the expectation that a future change in the value of the hedging instrument will offset the change in the value of the asset (or the liability).

Indemnity: an agreement whereby one party agrees to compensate another party for any loss suffered by that party. The Province can either seek or provide indemnification. 

Infrastructure: the facilities, systems and equipment required to provide public services and support private sector economic activity including network infrastructure (e.g., roads, bridges, water and wastewater systems, large information technology systems), buildings (e.g., hospitals, schools, courts), and machinery and equipment (e.g., medical equipment, research equipment).

Loan Guarantee: an agreement to pay all or part of the amount due on a debt obligation in the event of default by the borrower.

Net Book Value of Tangible Capital Assets: historical cost of tangible capital assets less both the accumulated amortization and the amount of any write-downs.

Net Debt: the difference between the Province’s total liabilities and financial assets. It represents the Province’s future revenue requirements to pay for past transactions and events.

Nominal: an amount expressed in dollar terms without adjusting for changes in prices due to inflation or deflation. It is not a good basis for comparing values of GDP in different years, for which a “real” value expressed in constant dollars (i.e., adjusted for price changes) is needed. See Real GDP.

Non-Financial Assets: assets that normally do not generate cash capable of being used to repay existing debts. For the Province, it comprises tangible capital assets and net assets of broader public sector organizations.

Non-Tax Revenue: revenue received by the government from external sources. This also includes revenues from the sale of goods and services, fines and penalties associated with the enforcement of government regulations and laws; fees and licences; royalties; profits from a self-sustaining Crown agency; and asset sales.

Ontario Disability Support Program (ODSP): a program designed to meet the unique needs of people with disabilities who are in financial need, or who want and are able to work and need support. Ontarians aged 65 years or older who are ineligible for Old Age Security may also qualify for ODSP supports if they are in financial need. The program has two components: Income Support and Employment Supports. Income Support provides financial assistance and other benefits to eligible people with disabilities and their families. The ODSP Employment Supports program works with community service providers to help people with disabilities prepare for and find jobs, keep a job and advance their career. The program can also help people with disabilities become self-employed.

Option: a contract that confers the right, but not the obligation, to buy or sell a specific amount of a commodity, currency or security at a specific price, on a certain future date.

Other than a Temporary Decline: a loss in value of a portfolio investment that is other than a temporary decline occurs when the actual value of the investment to the government becomes lower than the carrying value and the impairment is expected to remain for a prolonged period.

Present Value: the current worth of one or more future cash payments, determined by discounting the payments using a given rate of interest.

Program Expense: total expense excluding interest on debt.

Public Accounts: the Consolidated Financial Statements of the Province along with supporting statements and schedules as required by the Financial Administration Act, Treasury Board Act and Management Board of Cabinet Act.

Real GDP: gross domestic product measured to exclude the impact of changing prices.

Recognition: the process of including an item in the financial statements of an entity.

Reserve: an amount included in the fiscal plan to protect the plan against unforeseen adverse changes in the economic outlook, or in the Provincial revenue and expense. Actual costs incurred by the ministry, which pertains to the reserve, are recorded as expenses of that ministry.
See Contingency Fund.

Segment: a distinguishable activity or group of activities of a government for which it is appropriate to separately report financial information to help users of the financial statements identify the resources allocated to support the major activities of the government.

Sinking Fund Debenture: a debenture that is secured by periodic payments into a fund established to retire long-term debt.

Straight Line Basis of Amortization: a method whereby the annual amortization expense is computed by dividing i) the historical cost of the asset by  ii) the number of years the asset  is expected to be used.

Surplus: the amount by which revenues exceed government expenses in any given year. On a forecast basis, a reserve may be included.

Tangible Capital Assets: physical assets including land, buildings, transportation infrastructure, information technology infrastructure and systems, vehicles and equipment.  At this time the Province only includes land, buildings and transportation infrastructure in Tangible Capital Assets.

Temporary Investments: investments which are transitional or current in nature and generally capable of reasonably prompt liquidation.

Total Debt: the Province’s total borrowings outstanding.

Total Expense: sum of program expense and interest on debt expense.

Transfer Payments: grants or transfers of monies to individuals, organizations or other levels of government for which the government making the transfer does not

• receive any goods or services directly in return, as would occur in a purchase or sale transaction;
• expect to be repaid, as would be expected in a loan; or
• expect a financial return, as would be expected in an investment.

Treasury Bills: short-term debt instrument issued by governments on a discount basis.

Unrealized Gain or Loss: an increase or decrease in the fair value of an asset accruing to the holder. Once the asset is disposed of or written off, the gain or loss is realized.

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.

Please address your comments on this report to:
The Honourable Dwight Duncan
Minister of Finance
7th Floor
Frost Building South
7 Queen’s Park Crescent
Toronto, Ontario
M7A 1Y7
You can also send your comments to the Minister by
electronic mail to:
annualreport@ontario.ca

This publication is available in English and in French. Copies in either language may be obtained by mail
from Publications Ontario, 50 Grosvenor Street, Toronto, Ontario M7A 1N8; by calling (416) 326-5300,
toll-free 1-800-668-9938; or by visiting the Publications Ontario Bookstore at 777 Bay Street,
Market Level, Toronto. For further options, including on-line ordering, please visit
the Publications Ontario website at www.publications.serviceontario.ca.
For electronic access, visit the Ministry of Finance website at www.fin.gov.on.ca.

© Queen’s Printer for Ontario, 2008
ISSN 0381-2375 (Print)
ISSN 1913-5556 (Online)