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, 2009 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, 20098 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 July 31, 2009	Jim McCarter, CA Auditor General Licensed Public Accountant

Province of Ontario
Consolidated Statement of Operations
($ Millions)	2008–09 Budget1	2008–09 Actual	2007–08 Actual
Revenues (Schedules 1 and 2)
Personal Income Tax	25,171	24,727	24,538
Retail Sales Tax	17,206	17,267	16,976
Corporations Tax	12,339	6,748	12,990
Employer Health Tax	4,821	4,617	4,605
Gasoline and Fuel Taxes	3,122	3,021	3,093
Ontario Health Premium	2,809	2,776	2,713
Other Taxes	3,507	3,239	3,517
Total Taxation	68,975	62,395	68,432
Transfers from Government of Canada	16,457	16,591	16,597
Income from Investment in Government Business Enterprises (Schedule 9)	4,122	4,042	4,437
Other	7,366	7,444	7,656
	96,920	90,472	97,122
Expenses (Schedules 3 and 4)
Health	40,437	40,747	38,118
Education	13,196	13,215	12,618
Children's and Social Services	11,798	12,054	11,265
Interest on Debt	8,891	8,566	8,914
Environment, Resources and Economic Development	7,449	7,165	10,298
Post-Secondary Education and Training	6,240	6,076	6,486
Justice	3,699	3,804	3,643
General Government and Other	4,460	5,254	5,180
	96,170	96,881	96,522
Reserve	750	–	–
Annual (Deficit) Surplus	–	(6,409)	600
See accompanying Notes and Schedules to the Financial Statements.
1 Amounts reported as "Plan" in 2008 Budget.

Province of Ontario Consolidated Statement of Financial Position
As at March 31 ($ Millions)	2009	2008
Liabilities
Accounts Payable and Accrued Liabilities (Schedule 5)	12,708	15,359
Debt (Note 2)	176,915	162,217
Power Purchase Contracts (Note 4)	2,206	2,579
Pensions and Other Employee Future Benefits (Note 5)	404	1,024
Other Liabilities (Note 6)	4,383	4,340
	196,616	185,519
Financial Assets
Cash and Cash Equivalents	5,746	4,001
Temporary Investments (Note 7)	6,132	4,143
Accounts Receivable (Schedule 6)	4,942	8,358
Loans Receivable (Schedule 7)	9,822	8,825
Other Assets (Note 8)	1,994	2,068
Investment in Government Business Enterprises (Schedule 9)	14,655	15,706
	43,291	43,101
Net Debt	(153,325)	(142,418)
Non-Financial Assets
Tangible Capital Assets (Note 9)	21,671	19,112
Net Assets of Broader Public Sector Organizations (Schedule 10)	18,416	17,689
	40,087	36,801
Accumulated Deficit	(113,238)	(105,617)
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)	2009		2008
Annual (Deficit) Surplus		(6,409)		600
Acquisition of Tangible Capital Assets	(3,553)		(2,748)
Amortization of Tangible Capital Assets (Note 9)	988		880
Proceeds on Sale of Tangible Capital Assets	59		9
Gain on Sale of Tangible Capital Assets	(53)		(8)
Increase in Net Assets of Broader Public Sector Organizations (Schedule 10)	(727)		(610)
		(3,286)		(2,477)
Decrease in Fair Value of Ontario Nuclear Funds (Note 10)	(1,212)		(935)
Increase in Net Debt	(10,907)		(2,812)
Net Debt at Beginning of Year	(142,418)		(141,100)
Increase in Fair Value of Ontario Nuclear Funds at Beginning of Year (Note 10)	–		1,494
Restated Net Debt at Beginning of Year	(142,418)		(139,606)
Net Debt at End of Year	(153,325)		(142,418)
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)	2009	2008
Accumulated Deficit at Beginning of Year	(105,617)	(106,776)
Increase in Fair Value of Ontario Nuclear Funds at Beginning of Year (Note 10)	–	1,494
Restated Accumulated Deficit at Beginning of Year	(105,617)	(105,282)
Annual (Deficit) Surplus	(6,409)	600
Decrease in Fair Value of Ontario Nuclear Funds (Note 10)	(1,212)	(935)
Accumulated Deficit at End of Year	(113,238)	(105,617)
See accompanying Notes and Schedules to the Financial Statements.

Province of Ontario Consolidated Statement of Cash Flow
For the year ended March 31 ($ Millions)	2009	2008
Operating Transactions
Annual (Deficit) Surplus	(6,409)	600
Amortization of Tangible Capital Assets (Note 9)	988	880
Gain on Sale of Tangible Capital Assets	(53)	(8)
Income from Investment in Government Business Enterprises (Schedule 9)	(4,042)	(4,437)
Remittances from Government Business Enterprises (Schedule 9)	3,631	3,271
Decrease in Liability for Pensions and Other Employee Future Benefits (Note 5)	(620)	(374)
Decrease in Power Purchase Contracts (Note 4)	(373)	(398)
(Decrease) Increase in Accounts Payable and Accrued Liabilities (Schedule 5)	(2,651)	2,637
Increase (Decrease) in Other Items	2,786	(2,206)
Cash Applied to Operating Transactions	(6,743)	(35)
Capital Transactions
Acquisition of Tangible Capital Assets	(3,553)	(2,748)
Proceeds from Sale of Tangible Capital Assets	59	9
Increase in Net Assets of Broader Public Sector Organizations (Schedule 10)	(727)	(610)
Cash Applied to Capital Transactions	(4,221)	(3,349)
Investing Transactions
Increase in Temporary Investments (Note 7)	(1,989)	(1,850)
Cash (Applied to) Investing Transactions	(1,989)	(1,850)
Financing Transactions
Debt Issued	35,877	20,761
Debt Retired	(21,179)	(15,855)
Cash Provided by Financing Transactions	14,698	4,906
Net Increase (Decrease) in Cash and Cash Equivalents	1,745	(328)
Cash and Cash Equivalents at Beginning of Year	4,001	4,329
Cash and Cash Equivalents at End of Year	5,746	4,001
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 Post-Secondary Education and Training expenses in the Consolidated Statement of Operations.

Measurement Uncertainty

Uncertainty in the determination of the amount at which an item is recognized 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 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 Canada Health Transfer and Canada Social Transfer entitlements, and the valuation of the Canadian third-party asset-backed commercial paper.

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 income 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 (see Tangible Capital Assets, page 38). 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 buildings 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 $176.9 billion, as at March 31, 2009 (2008, $162.1 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 $149.2 billion (2008, $133.9 billion) and Ontario Electricity Financial Corporation (OEFC) debt of $27.7 billion (2008, $28.3 billion). The table on page 40 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							2009	2008
Currency	Canadian Dollar	U.S. Dollar	Japanese Yen	Euro1	Other Currencies2		Total	Total
Maturing in:
2009								$27,035
2010	$18,736	3,640	747	1,490	769	$25,382		13,696
2011	12,605	3,537	–	–	252	16,394		11,038
2012	8,771	4,924	–	–	47	13,742		7,352
2013	7,889	3,536	–	–	550	11,975		11,317
2014	12,776	1,010	178	2,405	569	16,938		–
1–5 years	60,777	16,647	925	3,895	2,187	84,431		70,438
6–10 years	19,286	4,957	159	206	2,493	27,101		30,670
11–15 years	11,097	–	–	–	–	11,097		9,037
16–20 years	16,658	–	–	–	–	16,658		14,710
21–25 years	8,816	–	–	–	–	8,816		13,469
26–453 years	28,722	–	–	–	–	28,722		23,732
	$145,356	21,604	1,084	4,101	4,680	$176,825		$162,056
Unamortized Foreign Exchange Gains	–	85	5	–	–	90		161
Total4, 5	$145,356	21,689	1,089	4,101	4,680	$176,915		162,217
Debt Issued for Provincial Purposes6	120,950	19,959	1,089	4,101	3,148	149,247		133,880
OEFC Debt	24,406	1,730	–	–	1,532	27,668		28,337
Total4, 5	$145,356	21,689	1,089	4,101	4,680	$176,915		$162,217
Effective Interest Rates (Weighted Average)
2009	5.45%	3.73%	3.83%	4.02%	4.56%	5.17%		–
2008	5.97%	4.76%	2.42%	4.65%	4.42%	–		5.76%
1 Euro debt includes debt issues in Euro and French franc legacy currency. 2 Other currencies comprise Australian dollar, New Zealand dollar, Pound sterling, Swiss franc, Hong Kong dollar and South African rand. 3 The longest term to maturity is to June 2, 2054. 4 Total foreign currency denominated debt as at March 31, 2009, was $31.5 billion (2008, $24.7 billion). Of that, $31.2 billion or 99.1% (2008, $23.9 billion or 96.8%) was fully hedged to Canadian dollars. The remaining 0.9% (2008, 3.2%) of foreign debt was unhedged as follows: $241 million (2008, $720 million) Japanese yen denominated debt and $55 million (2008, $26 million) Swiss franc denominated debt. 5 Total debt includes issues totalling $2.4 billion (2008, $2.7 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, 2009 includes $0.5 billion (2008, $1.2 billion) long-term debt purchased and held by the Province.

Debt As at March 31	2009	2008
Debt Payable to:
Public Investors	$158,211	$141,730
Canada Pension Plan Investment Fund	10,233	10,233
Ontario Teachers' Pension Plan	3,001	4,466
Public Service Pension Plan	1,991	2,260
Ontario Public Service Employees Union Pension Fund	946	1,074
Canada Mortgage and Housing Corporation	811	863
Others1	1,632	1,430
Total	$176,825	$162,056
1 Debt payable to others is comprised mainly of the School Board Trust Debt of $814 million (2008, $831 million) and Ontario Immigrant Investor Corporation Debt of $818 million (2008, $599 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, 2009 was $196.7 billion (2008, $180.1 billion). This is higher than the book value of $176.8 billion (2008, $162.1 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, 2009, the outstanding amount of $806 million (2008, $822 million) advanced to school boards is included in Other Assets and outstanding debentures of $814 million (2008, $831 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 forward foreign exchange 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 forward foreign exchange contracts used for hedging is shorter than the term of the underlying debt, the effectiveness is maintained by continuously rolling the forward foreign exchange contract over the remaining term of the underlying debt, or until it is 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, 2009, the respective unhedged levels were 0.2 and nil per cent (2008, 0.6  and nil per cent). The Province’s unhedged level of 0.2 per cent was primarily relating to Japanese yen denominated debt. For every one Japanese yen decrease versus the Canadian dollar, there would be an increase in debt amount of $3.1 million (2008, $7.5 million) and an increase in Interest on Debt of $0.9 million (2008, $4.0 million).  Total foreign exchange gains recognized in the Statement of Operations for 2008–09 were $67 million (2007–08, $131 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, 2009, interest rate resetting risk for Debt Issued for Provincial Purposes and OEFC debt was 11.5 per cent and 19.5 per cent respectively (2008, 15.6 per cent and 23.6 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 $230 million (2008, $290 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, 2009, 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											2009	2008
Maturity in Fiscal Year	2010		2011	2012		2013	2014	6–10 Years	Over 10 Years		Total	Total
Swaps:
Interest Rate1	$10,411	$9,545		$11,408	$7,608		$5,809	$23,271	$6,155	$74,207		$61,028
Cross Currency	4,906	3,192		3,096	3,784		6,507	10,362	–	31,847		27,032
Forward Foreign Exchange Contracts	8,881	–		–	–		–	–	–	8,881		2,649
Caps and Floors	88	–		–	–		–	–	–	88		88
Total	$24,286	$12,737		$14,504	$11,392		$12,316	$33,633	$6,155	$115,023		$90,797
1 Includes $1.3 billion of interest rate swaps related to loans receivable held by consolidated entity.

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, 2009.

Credit Risk Exposure As at March 31	2009	2008
Gross Credit Risk Exposure1	$5,492	$2,247
Less: Netting2	(4,254)	(1,487)
Net Credit Risk Exposure	$1,238	$760
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 closeout 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. 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, Ontario Electricity Financial Corporation is the counterparty to these contracts. The 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.  Accordingly, a liability was recorded at $4.3 billion on a discounted cash-flow basis when Ontario Hydro was continued as OEFC on April 1, 1999.

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 electricity contracts expire. The decrease in the liability for power purchase contracts for 2008–09 was $373 million (2007–08, $398 million). This results in a liability of $2.2 billion as at March 31, 2009 (2008, $2.6 billion).

5. Pensions and Other Employee Future Benefits

Pensions and Other Employee Future Benefits Liability (Asset)
As at March 31	2009	2009	2009	2008
	Pensions	Other Employee Future Benefits	Total	Total
Obligation for benefits	$68,081	$6,348	$74,429	$70,828
Less: plan fund assets	(76,396)	(426)	(76,822)	(75,251)
Unamortized actuarial gains (losses)	1,745	(699)	1,046	3,833
Adjustments1	1,751	–	1,751	1,614
Total	($4,819)	$5,223	$404	$1,024
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	2009	2009	2009	2008
	Pensions	Other Employee Future Benefits	Total	Total
Cost of benefits	$1,756	$265	$2,021	$1,936
Amortization of actuarial losses (gains)	(533)	65	(468)	(391)
Employee contributions	(220)	–	(220)	(200)
Cost of plan amendments	–	280	280	–
Interest expense (income)	(620)	233	(387)	(217)
Adjustments1	(12)	–	(12)	(24)
Total2	$371	$843	$1,214	$1,104
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 3. The Teachers' Pension expense of $50 million (2007–08, $342 million) is included in the Education expense in the Consolidated Statement of Operations and is disclosed separately in Schedule 4. The Public Service and OPSEU Pension expense of $321 million (2007–08, $131 million) and Other Employee Future Benefits — Retirement Benefits expense of $650 million (2007–08, $400 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 $971 million (2007–08, $531 million) is disclosed separately in Schedule 4. The remainder of Other Employee Future Benefits expense is included in the relevant ministries' expenses in Schedule 4.

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 salaries 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 $1,073 million to OTPP in 2008–09 (2007–08, $809 million), $227 million (including a $4 million special payment) to PSPP (2007–08, $213 million including a $59 million special payment) and $157 million to OPSEU Pension Plan (2007–08, $153 million). During calendar year 2008, OTPP paid benefits, including transfers to other plans of $4.2 billion (2007, $4.0 billion), PSPP paid $881 million (2007, $856 million) and OPSEU Pension Plan paid $590 million (2007, $542 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 2008–09 is 4.95 per cent (2007–08, 4.95 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 $137 million for benefits under the plan in 2008–09 (2007–08, $127 million). The liability for non-pension retirement benefits of $3.5 billion as at March 31, 2009 (2008, $3.0 billion) is included in the Other Employee Future Benefits Liability. The expense for 2008–09 of $650 million (2007–08, $400 million) is included in the Other Employee Future Benefits Expense.

The discount rate used in the other retirement benefits calculation for 2008–09 is 5.10 per cent
(2007–08, 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 $84 million in termination pay in 2008–09 (2007–08, $46 million). The liability for termination pay of $858 million as at March 31, 2009 (2008, $859 million) is included in the Other Employee Future Benefits Liability. The expense for 2008–09 of $83 million (2007–08, $71 million) is included in the Other Employee Future Benefits Expense, on Schedule 4.

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 $405 million as at March 31, 2009 (2008, $408 million) net of deposits of $1 million (2008, $1 million) is included in the Other Employee Future Benefits Liability. The expense for 2008–09 of $43 million (2007–08, $35 million), including a $46 million payment made in 2008–09 (2007–08, $43 million), is included in the Other Employee Future Benefits Expense.

The unfunded liability for long-term disability benefits of $224 million as at March 31, 2009 (2008, $250 million) is net of deposits of $425 million (2008, $404 million), and is included in the Other Employee Future Benefits Liability. The 2008–09 expense of $57 million (2007–08, $99 million) is included in the Other Employee Future Benefits Expense. A payment of $82 million payment for long-term disability benefits was made in 2008–09 (2007–08, $72 million).

6. Other Liabilities

Other Liabilities As at March 31	2009	2008
Deferred Revenue:
Federal Transfers	$1,150	$1,337
Vehicle and Driver Licences	637	625
Other	934	843
Total Deferred Revenue	2,721	2,805
Other Funds and Liabilities	1,662	1,535
Total	$4,383	$4,340

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
		2007–08 and prior	2008–09	2009–10	2010–11 and thereafter	As at 31-Mar-09
Community Development Trust	$358	–	$119	$119	$120	$239
ecoTrust for Clean Air and Climate Change	586	195	195	196	–	196
Strategic Highway Infrastructure Fund	168	15	7	7	139	146
Police Officers Recruitment Fund	156	–	31	31	94	125
Public Transit Capital Trust 2008	195	–	97	98	–	98
Border Infrastructure Fund	107	5	4	4	94	98
Labour Market Agreement	194	–	117	77	–	77
Patient Wait Times Guarantee Trust	205	68	68	69	–	69
HPV Immunization Trust	117	39	39	39	–	39
Wait Times Reduction	1,656	1,421	235	–	–	–
Public Transit Capital	351	234	117	–	–	–
Affordable Housing Trust	312	234	78	–	–	–
Other Federal Transfers	160	54	43	37	26	63
Total	$4,565	$2,265	$1,150	$677	$473	$1,150

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 $786 million (2008, $668 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 and externally restricted funds.

7. Temporary Investments

Temporary Investments As at March 31	2009	2008
Temporary Investments	$4,142	$3,315
Add: Assets Purchased under Resale Agreements	3,079	1,679
Less: Assets Sold under Repurchase Agreements	(1,089)	(851)
Total	$6,132	$4,143

The fair value of temporary investments, including assets purchased and sold under resale and repurchase agreements, at March 31, 2009 is $6.2 billion (2008, $4.3 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 and deferred charges.

On January 21, 2009, the restructuring of the frozen Canadian third-party asset-backed commercial paper (ABCP) was completed.  Under the agreement, the Province along with the federal government, Alberta and Quebec provided assistance to the ABCP restructuring efforts through a Senior Funding Facility (SFF).  Ontario’s contribution to the SFF was $250 million, and is not expected to be called upon.  A small indemnity fee will be received annually.

The Province received $636.8 million in restructured long-term notes issued by the new Master Asset Vehicle (MAV) as a result of the restructuring of third-party ABCP. This was comprised of approximately $49.6 million of notes backed by traditional assets, $33.2 million of notes with exposure to the U.S. residential mortgage market, and $554 million of notes backed by a combination of structured and traditional assets, 44 per cent of which are rated A and 43 per cent of which are also rated A but are under review with negative implications, by Dominion Bond Rating Service (DBRS).  The amount outstanding will decrease as principal repayments are received over the life of the notes.

Management’s best estimate of the net recoverable value of the Province’s investment in MAV notes, as at March 31, 2009, is approximately $501.1 million (2008, $530.1 million).

In addition, government business enterprises received $58 million in MAV notes.  As at March 31, 2009, the estimated fair value of the government business enterprises’ MAV notes was $35 million, resulting from a valuation adjustment of $5 million (2007–08, $18 million).  This write‑down is included in Income from Investments in Government Business Enterprises for the year ended March 31, 2009.

9. Tangible Capital Assets

Tangible Capital Assets As at March 31	2009	2009	2009	2008
	Cost	Accumulated Amortization	Net Book Value	Net Book Value
Land	$5,809	–	$5,809	$5,682
Buildings	5,480	1,674	3,806	3,243
Transportation Infrastructure	18,408	7,181	11,227	9,543
Other	2,309	1,480	829	644
Total	$32,006	$10,335	$21,671	$19,112

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

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

Other includes railway equipment, computer equipment, vehicles, furniture, and administrative and service equipment owned by government organizations that are consolidated. Similar assets owned by provincial ministries will be included in the Province’s financial statements in 2009–10. 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 2008–09 totalled $988 million (2007–08, $880 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

The Ontario Nuclear Funds Agreement (ONFA) Funds were established by Ontario Power Generation Inc. (OPG) to ensure that sufficient funds will be available to pay for 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 are carried at fair value in OPG’s financial statements.

Effective April 1, 2007, the fair value of ONFA Funds is reflected in the Province’s consolidated financial statements. Unrealized gains and losses of ONFA Funds are included in Investment in Government Business Enterprises and 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. Realized gains and losses of ONFA Funds are included in Income from Investment in Government Business Enterprises.  Inter-organizational balances related to ONFA Funds are eliminated.

ONFA Funds incurred unrealized losses in 2008–09 of $1,212 million (2007–08, $935 million) which resulted in a decrease in Investment in Government Business Enterprises, and a corresponding increase in 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, 2009 was $912 million (2008, $1,010 million). The outstanding loans guaranteed and other contingencies amounted to $721 million as at March 31, 2009 (2008, $963 million). A provision of $36 million (2008, $49 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 value of the segregated funds at the time the Provincial guarantee level was reset. 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, 2009, there were $7.7 billion (2008, $8.0 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 66 (2008, 72) 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. 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. 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

Contractual Obligations as at March 31			Minimum Payments to be made in:
	2009	2008	2010	2011	2012	2013	2014	2015 and thereafter
Ontario Power Generation	$10,935	$11,464	$2,266	$2,726	$1,114	$1,050	$489	$3,290
Transfer Payments	8,861	9,040	2,267	1,811	1,646	746	486	1,905
Leases	3,070	1,328	335	309	270	221	168	1,767
Construction Contracts	5,291	2,837	1,915	797	464	220	169	1,726
Other	2,639	3,625	790	759	368	256	134	332
Total Contractual Obligations	$30,796	$28,294	$7,573	$6,402	$3,862	$2,493	$1,446	$9,020

Ontario Power Generation Inc.’s contractual obligations include future contributions under the Ontario Nuclear Funds Agreement of $2.1 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	2008	2007
Assets	$13,207	$15,972
Liabilities	24,676	24,066
Unfunded Liability	(11,469)	(8,094)
Revenues	1,398	3,370
Expenditures	4,773	5,467
(Deficit)	(3,375)	(2,097)
Unfunded Liability, Beginning of Year	(8,094)	(5,997)
Unfunded Liability, End of Year	($11,469)	($8,094)

 

Other Trust Funds As at March 31, 2009
	Assets	Liabilities	Fund Balance (Unfunded Liability)
The Public Guardian and Trustee for Province of Ontario	$1,375	$1,294	$81
Motor Vehicle Accident Claims Fund	$56	$247	($191)
Pension Benefits Guarantee Fund	$195	$242	($47)
As at December 31, 2008	Assets	Liabilities	Fund Balance
Deposit Insurance Corporation of Ontario	$135	$39	$96

Unfunded liabilities of trusts under administration are not included in the Province’s consolidated financial statements as it is intended that 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. Subsequent Event

Subsequent to year-end, the Province joined with the Canadian and U.S. federal governments to support the restructuring of North America’s automotive industry. Under these arrangements, Ontario will provide a total of approximately $4.8 billion to support General Motors and Chrysler. These loans and investments will be accounted for in accordance with generally accepted accounting principles for governments in Canada.

15. Comparative Figures

The comparative figures have been reclassified as necessary to conform to the 2009 presentation.

SCHEDULES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Schedule 1  Revenues by Source

Schedule 2  Revenues by Sector

Schedule 3  Expenses by Sector

Schedule 4  Expenses by Ministry

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
($ Millions)	2008–09 Budget1			2008–09 Actual			2007–08 Actual
Taxation
Personal Income Tax	25,171			24,727			24,538
Retail Sales Tax	17,206			17,267			16,976
Corporations Tax	12,339			6,748			12,990
Employer Health Tax	4,821			4,617			4,605
Ontario Health Premium	2,809			2,776			2,713
Gasoline Tax	2,380			2,323			2,360
Tobacco Tax	1,092			1,044			1,127
Land Transfer Tax	1,343			1,013			1,363
Electricity Payments-In-Lieu of Taxes	600			830			546
Fuel Tax	742			698			733
Other Taxes	472			352			481
	68,975			62,395			68,432
Transfers from Government of Canada
Canada Health Transfer	8,826			8,942			8,487
Canada Social Transfer	4,089			4,079			3,778
Labour Market Development Agreement	597			604			587
Social Housing	514			520			525
Wait Times Reduction Fund	235			235			468
ecoTrust for Clean Air and Climate Change	195			195			195
Indian Welfare Services Agreement	185			189			186
Infrastructure Programs	234			151			207
Corporations Tax Administration Redesign	–			150			250
Community Development Trust	119			119			–
Labour Market Agreement	195			117			–
Public Transit Capital Trust	117			117			117
Public Transit Capital Trust 2008	98			97			–
Federal Capital Tax Incentive	72			87			83
Bilingualism Development	83			85			97
Affordable Housing Trust	78			78			117
Labour Market Agreement for Persons with Disabilities	76			76			77
Patient Wait Times Guarantee	68			68			68
Youth Criminal Justice	66			66			64
Legal Aid Criminal	50			50			51
Transition Trust	–			–			574
Post-Secondary Education Infrastructure Trust	–			–			195
Child Care Spaces	–			–			97
Other	560			566			374
	16,457			16,591			16,597
Income from Investment in Government Business	4,122			4,042			4,437
Enterprises (Schedule 9)
Other
Vehicle and Driver Registration Fees	1,044			1,034			1,051
Electricity Debt Retirement Charge	1,004			970			982
Power Sales	856			953			929
Sales and Rentals	701			733			553
Local Services Realignment	734			721			827
Other Fees and Licences	615			674			668
Liquor Licence Board of Ontario Revenues	454			468			475
Net Reduction of Power Purchase Contracts	373			373			398
Royalties	242			205			193
Independent Electricity System Operator Revenue	129			133			135
Miscellaneous	1,214			1,180			1,445
	7,366			7,444			7,656
Total Revenues	96,920			90,472			97,122
1 Amounts reported as "Plan" in 2008 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)	2009	2008	2009	2008	2009	2008	2009	2008
Revenues
Taxation (Schedule 1)	–	–	–	–	–	–	2	2
Transfers from Government of Canada (Schedule 1)	82	87	64	78	293	288	964	837
Income from Investment in Government Business Enterprises (Schedule 9)	–	–	–	–	–	–	711	1,206
Other (Schedule 1)	107	211	29	9	694	800	2,231	2,238
Total	189	298	93	87	987	1,088	3,908	4,283
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, Energy and Infrastructure (Energy programs), Environment, International Trade and Investment, Labour, Municipal Affairs and Housing, Natural Resources, Northern Development and Mines, Research and Innovation, Small Business and Consumer Services, Tourism, and Transportation.

Post-Secondary Education and Training5		Justice6		General Government and Other7		Interest on Debt8		Total
2009	2008	2009	2008	2009	2008	2009	2008	2009	2008
–	–	–	–	62,393	68,430	–	–	62,395	68,432
808	673	94	102	14,286	14,532	–	–	16,591	16,597
–	–	–	–	3,331	3,231	–	–	4,042	4,437
37	72	641	593	3,705	3,733	–	–	7,444	7,656
845	745	735	695	83,715	89,926	–	–	90,472	97,122
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 Services, Energy and Infrastructure (Infrastructure programs), Finance, Revenue, the Board of Internal Economy, 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 Sector1
Sectors	Health2		Education3		Children's and Social Services4		Environment, Resources and Economic Development5
For the year ended March 31 ($ Millions)	2009	2008	2009	2008	2009	2008	2009	2008
Expenses
Transfer Payments	39,111	36,482	12,698	11,834	11,281	10,565	2,806	6,254
Interest on Debt	–	–	53	53	–	–	–	–
Salaries and Wages	523	469	174	156	450	455	1,415	1,248
Services	714	704	110	113	156	120	1,239	1,194
Pensions and Employee Future Benefits (Note 5)	8	8	50	342	8	7	11	9
Power Purchases	–	–	–	–	–	–	–	–
Supplies and Equipment	375	360	13	12	26	26	329	221
Amortization of Tangible Capital Assets (Note 9)	38	31	9	5	–	–	838	749
Employee Benefits	86	76	27	24	80	78	217	203
Transportation and Communication	105	101	21	18	25	57	84	85
Increase in Net Assets of Broader Public Sector Organizations	(521)	(330)	(15)	(11)	–	–	–	–
Other	150	67	25	27	139	61	302	405
	40,589	37,968	13,165	12,573	12,165	11,369	7,241	10,368
Adjustments10	158	150	50	45	(111)	(104)	(76)	(70)
Total	40,747	38,118	13,215	12,618	12,054	11,265	7,165	10,298
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, Energy and Infrastructure (Energy programs), Environment, International Trade and Investment, Labour, Municipal Affairs and Housing, Natural Resources, Northern Development and Mines, Research and Innovation, Small Business and Consumer Services, Tourism, Transportation, and Investing in Ontario Act (IOA) expense.

Post-Secondary Education and Training6		Justice7		General Government and Other8		Interest on Debt9		Total
2009	2008	2009	2008	2009	2008	2009	2008	2009	2008
6,108	6,634	307	381	1,288	1,725	–	–	73,599	73,875
–	–	–	–	–	–	8,513	8,861	8,566	8,914
87	80	1,888	1,787	978	935	–	–	5,515	5,130
57	44	831	784	153	132	–	–	3,260	3,091
–	–	17	17	1,120	721	–	–	1,214	1,104
–	–	–	–	953	929	–	–	953	929
5	2	199	206	81	97	–	–	1,028	924
–	–	4	3	99	92	–	–	988	880
12	11	239	215	64	132	–	–	725	739
6	6	78	82	82	136	–	–	401	485
(191)	(269)	–	–	–	–	–	–	(727)	(610)
30	25	254	181	459	295	–	–	1,359	1,061
6,114	6,533	3,817	3,656	5,277	5,194	8,513	8,861	96,881	96,522
(38)	(47)	(13)	(13)	(23)	(14)	53	53	–	–
6,076	6,486	3,804	3,643	5,254	5,180	8,566	8,914	96,881	96,522
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 Services, Energy and Infrastructure (Infrastructure programs), Finance (except for IOA expense), Revenue, the Board of Internal Economy, 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 4: Expenses by Ministry
($ Millions)	2008–09 Budget1	2008–09 Actual	2007–08 Actual
Aboriginal Affairs	56	55	234
Agriculture, Food and Rural Affairs	1,112	890	1,081
Attorney General	1,592	1,662	1,643
Board of Internal Economy	174	188	257
Children and Youth Services	4,074	4,056	3,721
Citizenship and Immigration	89	89	90
Community and Social Services	7,724	7,998	7,544
Community Safety and Correctional Services	2,107	2,142	2,000
Culture	380	381	407
Economic Development	372	155	394
Education	472	443	446
School Boards (Schedule 10)	12,670	12,722	11,830
Teachers' Pension (Note 5)	54	50	342
Energy and Infrastructure	457	263	851
Environment	398	433	349
Executive Offices	35	35	36
Finance	1,463	1,655	1,362
Contingency Fund	420	–	–
Interest on Debt	8,891	8,566	8,914
Power Purchases	856	953	929
Investing in Ontario Act	–	–	1,149
Government Services	1,101	953	941
Public Service/OPSEU Pension and Other Employee Future Benefits (Note 5)	715	971	531
Health and Long-Term Care	21,607	21,780	20,373
Hospitals (Schedule 10)	18,436	18,585	17,381
Health Promotion	394	382	364
International Trade and Investment	73	63	55
Labour	170	177	170
Municipal Affairs and Housing	796	756	844
Natural Resources	781	780	794
Northern Development and Mines	358	491	346
Office of Francophone Affairs	5	5	5
Research and Innovation	383	295	388
Revenue	638	557	554
Small Business and Consumer Services	42	45	45
Tourism	176	185	234
Training, Colleges and Universities	4,826	4,581	5,083
Colleges (Schedule 10)	1,414	1,495	1,403
Transportation	1,959	2,044	3,432
Year-End Savings2	(1,100)	–	–
Total Expenses	96,170	96,881	96,522
1 Amounts reported as "Plan" in 2008 Budget, except for changes to reflect ministry reorganization. 2 For Budget purposes, these items were not allocated to individual ministries.

Province of Ontario Schedule 5: Accounts Payable and Accrued Liabilities
As at March 31 ($ Millions)	2009	2008
Transfer Payments	4,153	7,483
Interest on Debt	3,331	3,715
Liability for CRA1 Overpayment	690	798
Salaries, Wages and Benefits	665	655
Other	3,869	2,708
Total Accounts Payable and Accrued Liabilities	12,708	15,359
1 CRA – Canada Revenue Agency.

Province of Ontario Schedule 6: Accounts Receivable
As at March 31 ($ Millions)	2009	2008
Taxes	3,324	6,373
Transfer Payments1	1,092	1,089
Other Accounts Receivable	1,104	995
	5,520	8,457
Less: Allowance for Doubtful Accounts2	(1,927)	(1,969)
	3,593	6,488
Government of Canada	1,349	1,870
Total Accounts Receivable	4,942	8,358
1 The transfer payment receivable consists primarily of recoverables of $900 million (2008, $880 million) for the Ontario Disability Support Program – Financial Assistance. 2 The allowance for doubtful accounts includes a provision of $819 million (2008, $806 million) for the Ontario Disability Support Program – Financial Assistance.

Province of Ontario Schedule 7: Loans Receivable
As at March 31 ($ Millions)	2009	2008
Government Business Enterprises1	3,881	4,081
Students2	2,342	2,260
Municipalities3	1,964	1,682
School Boards and Colleges4	2,419	1,511
Pension Benefit Guarantee Fund5	275	286
Industrial and Commercial6	445	327
Universities7	185	185
Other	60	57
	11,571	10,389
Unamortized Concession Discounts8	(398)	(403)
Allowance for Doubtful Accounts9	(1,351)	(1,161)
Total Loans Receivable	9,822	8,825
1 Loans to government business enterprises bear interest at rates of 3.22% to 6.65% (2008, 1.99% to 6.65%). 2 Loans to students bear interest at rates of 4.00% to 6.25% (2008, 4.25% to 6.25%). 3 Loans to municipalities bear interest at rates up to 8.00% (2008, 8.00%). 4 Loans to school boards and colleges bear interest at rates of up to 5.35% (2008, 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%, 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% (2008, 5.85% to 10.81%). 8 Unamortized concession discounts are related to loans to municipalities of $132 million (2008, $130 million), loans to Pension Benefit Guarantee Fund of $135 million (2008, $140 million), and loans to industrial and commercial enterprises of $131 million (2008, $129 million). 9 Allowance for doubtful accounts is related to loans to students of $956 million (2008, $980 million), loans to municipalities of $158 million (2008, $168 million), loans to industrial and commercial enterprises and other of $97 million (2008, $23 million), and the Pension Benefit Guarantee Fund of $140 million (2008, $0).

 

Repayment Terms				Principal Repayment ($ Millions)
Years to Maturity				2009	2008
1 year				1,880	1,577
2 years				962	892
3 years				569	770
4 years				616	362
5 years				196	588
1–5 years				4,223	4,189
6–10 years				2,617	2,151
11–15 years				647	573
16–20 years				1,395	553
21–25 years				894	492
Over 25 years				145	175
Subtotal				9,921	8,133
No fixed maturity				1,650	2,256
Total				11,571	10,389

Province of Ontario Schedule 8: Government Organizations
Government Business Enterprises1			Responsible Ministry
Algonquin Forestry Authority			Natural Resources
Hydro One Inc.			Energy and Infrastructure
Liquor Control Board of Ontario			Finance
Niagara Parks Commission			Tourism
Ontario Clean Water Agency			Environment
Ontario Lottery and Gaming Corporation			Energy and Infrastructure
Ontario Power Generation Inc.			Energy and Infrastructure
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
eHealth2			Health and Long-Term Care
GO Transit (Greater Toronto Transit Authority)			Transportation
Independent Electricity System Operator			Energy and Infrastructure
Legal Aid Ontario			Attorney General
Local Health Integration Networks			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 Agency for Health Protection and Promotion3			Health and Long-Term Care
Ontario Capital Growth Corporation3			Research and Innovation
Ontario Educational Communications Authority			Education
Ontario Electricity Financial Corporation			Finance
Ontario Energy Board			Energy and Infrastructure
Ontario Financing Authority			Finance
Ontario French-Language Educational Communications Authority			Education
Ontario Immigrant Investor Corporation			International Trade and Investment
Ontario Infrastructure Projects Corporation (Infrastructure Ontario)			Energy and Infrastructure
Ontario Mortgage and Housing Corporation			Municipal Affairs and Housing
Ontario Northland Transportation Commission4			Northern Development and Mines
1 The most recent audited financial statements of these organizations are included in Volume 2, Public Accounts of Ontario. 2 Formerly known as Smart Systems for Health Agency. 3 The organization met the criteria for consolidation in fiscal year 2008–09. 4 Ontario Northland Transportation Commission no longer meets the criteria for classification as a government business enterprise.
Province of Ontario Schedule 8: Government Organizations
Other Government Organizations (cont’d)			Responsible Ministry (cont’d)
Ontario Place Corporation			Tourism
Ontario Power Authority			Energy and Infrastructure
Ontario Racing Commission			Energy and Infrastructure
Ontario Realty Corporation			Energy and Infrastructure
Ontario Science Centre			Culture
Ontario Securities Commission			Finance
Ontario Tourism Marketing Partnership Corporation			Tourism
Ontario Trillium Foundation			Culture
Ornge			Health and Long-Term Care
Royal Ontario Museum			Culture
Toronto Area Transit Operating Authority			Transportation
Waterfront Toronto			Energy and Infrastructure
Broader Public Sector Organizations
Public Hospitals – Ministry of Health and Long-Term Care
Alexandra Hospital Ingersoll Alexandra Marine & General Hospital Almonte General Hospital Anson General Hospital Arnprior and District Memorial Hospital Atikokan General Hospital Baycrest Centre for Geriatric Care Bingham Memorial Hospital Blind River District Health Centre Bloorview MacMillan Centre Bluewater Health Brant Community Healthcare System Bridgepoint Hospital Brockville General Hospital Bruyere Continuing Care Cambridge Memorial Hospital Campbellford Memorial Hospital Carleton Place and District Memorial Hospital Casey House Hospice Chatham-Kent Health Alliance Children's Hospital of Eastern Ontario Clinton Public Hospital Collingwood General and Marine Hospital Cornwall Community Hospital Credit Valley Hospital Deep River and District Hospital Corporation Dryden Regional Health Centre Englehart and District Hospital Espanola General Hospital Four Counties Health Services Geraldton District Hospital Grand River Hospital Grey Bruce Health Services		Groves Memorial Community Hospital Guelph General Hospital Haldimand War Memorial Hospital Haliburton Highlands Health Services Corporation Halton Healthcare Services Corporation Hamilton Health Sciences Corporation Hanover & District Hospital Headwaters Health Care Centre Hôpital Général de Hawkesbury and District General Hospital Inc. Hôpital Glengarry Memorial Hospital Hôpital Montfort Hôpital Notre Dame Hospital Hôpital régional de Sudbury Regional Hospital Hornepayne Community Hospital Hospital for Sick Children Hôtel-Dieu Grace Hospital Hôtel-Dieu Health Sciences Hospital, Niagara Hôtel-Dieu Hospital, Cornwall Humber River Regional Hospital Huronia District Hospital James Bay General Hospital Joseph Brant Memorial Hospital Kemptville District Hospital Kingston General Hospital Kirkland and District Hospital Lady Dunn Health Centre Lady Minto Hospital at Cochrane Lake of the Woods District Hospital Lakeridge Health Corporation Leamington District Memorial Hospital Lennox and Addington County General Hospital Listowel Memorial Hospital London Health Sciences Centre
Province of Ontario Schedule 8: Government Organizations
Public Hospitals – Ministry of Health and Long-Term Care (cont’d)
Manitoulin Health Centre Manitouwadge General Hospital Markham Stouffville Hospital Mattawa General Hospital McCausland Hospital Mount Sinai Hospital Muskoka Algonquin Healthcare Niagara Health System Nipigon District Memorial Hospital Norfolk General Hospital North Bay General Hospital North Wellington Health Care Corporation North York General Hospital Northumberland Hills Hospital Orillia Soldiers' Memorial Hospital Ottawa Hospital Pembroke Regional Hospital Inc. Penetanguishene General Hospital Inc. Perth and Smiths Falls District Hospital Peterborough Regional Health Centre Providence Healthcare Queensway-Carleton Hospital Quinte Healthcare Corporation Red Lake Margaret Cochenour Memorial Hospital Religious Hospitallers of St. Joseph of the Hôtel Dieu of Kingston Renfrew Victoria Hospital Riverside Health Care Facilities Inc. Ross Memorial Hospital Rouge Valley Health System Royal Victoria Hospital of Barrie Inc. Runnymede Healthcare Centre Salvation Army Toronto Grace Hospital Sault Area Hospital Scarborough Hospital Seaforth Community Hospital Sensenbrenner Hospital Services de santé de Chapleau Health Services Sioux Lookout Meno-Ya-Win Health Centre Smooth Rock Falls Hospital South Bruce Grey Health Centre South Huron Hospital Association	Southlake Regional Health Centre St. Francis Memorial Hospital St. John's Rehabilitation Hospital St. Joseph's Care Group St. Joseph’s Continuing Care (Sudbury) St. Joseph's General Hospital, Elliot Lake St. Joseph's Health Care, London St. Joseph's Health Centre (Guelph) St. Joseph's Health Centre (Toronto) St. Joseph's Healthcare Hamilton St. Mary's General Hospital St. Mary’s Memorial Hospital St. Mary’s of the Lake Hospital (Kingston PCCC) St. Michael's Hospital St. Thomas - Elgin General Hospital Stevenson Memorial Hospital Stratford General Hospital Strathroy Middlesex General Hospital Sunnybrook Health Sciences Centre Temiskaming Hospital Thunder Bay Regional Health Sciences Centre Tillsonburg District Memorial Hospital Timmins and District Hospital Toronto East General Hospital Toronto Rehabilitation Institute Trillium Health Centre University Health Network University of Ottawa Heart Institute West Haldimand General Hospital West Lincoln Memorial Hospital West Nipissing General Hospital West Park Healthcare Centre West Parry Sound Health Centre William Osler Health Centre Wilson Memorial General Hospital Winchester District Memorial Hospital Windsor Regional Hospital Wingham and District Hospital Women’s College Hospital Woodstock General Hospital York Central Hospital
Province of Ontario Schedule 8: Government Organizations
Specialty Psychiatric Hospitals – Ministry of Health and Long-Term Care
Centre for Addiction and Mental Health Mental Health Centre Penetanguishene Northeast Mental Health Centre	Royal Ottawa Health Care Group Whitby Mental Health Centre
School Boards – Ministry of Education
Airy and Sabine District School Area Board Algoma District School Board Algonquin and Lakeshore Catholic District School Board Asquith-Garvey District School Area Board Atikokan Roman Catholic Separate School Board Avon Maitland District School Board Bloorview MacMillan School Authority Bluewater District School Board Brant Haldimand Norfolk Catholic District School Board Bruce-Grey Catholic District School Board Campbell Children's School Authority Caramat District School Area Board Catholic District School Board of Eastern Ontario Collins District School Area Board Connell and Ponsford District School Area Board Conseil des écoles publiques de l’Est de l’Ontario Conseil scolaire de district catholique Centre-Sud Conseil scolaire de district catholique de l'Est ontarien Conseil scolaire de district catholique des Aurores boréales Conseil scolaire de district catholique des Grandes Rivières Conseil scolaire de district catholique du Centre-Est de l'Ontario Conseil scolaire de district catholique du Nouvel-Ontario Conseil scolaire de district catholique Franco-Nord Conseil scolaire de district des écoles catholiques du Sud-Ouest Conseil scolaire de district du Centre Sud-Ouest Conseil scolaire de district du Grand Nord de l'Ontario Conseil scolaire de district du Nord-Est de l'Ontario District School Board of Niagara District School Board Ontario North East Dubreuilville Roman Catholic Separate School Board Dufferin-Peel Catholic District School Board Durham Catholic District School Board Durham District School Board Foleyet District School Area Board Foleyet Roman Catholic Separate School Board Gogama District School Area Board Gogama Roman Catholic Separate School Board Grand Erie District School Board Greater Essex County District School Board Halton Catholic District School Board Halton District School Board	Hamilton-Wentworth Catholic District School Board Hamilton-Wentworth District School Board Hastings and Prince Edward District School Board Hornepayne Roman Catholic Separate School Board Huron-Perth Catholic District School Board Huron-Superior Catholic District School Board James Bay Lowlands Secondary School Board John McGivney Children’s Centre Kawartha Pine Ridge District School Board Keewatin-Patricia District School Board Kenora Catholic District School Board KidsAbility School Authority Lakehead District School Board Lambton Kent District School Board Limestone District School Board London District Catholic School Board Mine Centre District School Area Board Missarenda District School Area Board Moose Factory Island District School Area Board Moosonee District School Area Board Moosonee Roman Catholic Separate School Board Murchison and Lyell District School Area Board Nakina District School Area Board Near North District School Board Niagara Catholic District School Board Niagara Peninsula Children's Centre School Authority Nipissing-Parry Sound Catholic District School Board Northeastern Catholic District School Board Northern District School Area Board Northwest Catholic District School Board Ottawa Catholic District School Board Ottawa Children's Treatment Centre School Authority Ottawa-Carleton District School Board Parry Sound Roman Catholic Separate School Board Peel District School Board Penetanguishene Protestant Separate School Board Peterborough Victoria Northumberland and     Clarington Catholic District School Board Rainbow District School Board Rainy River District School Board Red Lake Area Combined Roman Catholic Separate School Board
Province of Ontario Schedule 8: Government Organizations
School Boards – Ministry of Education (cont’d)
Renfrew County Catholic District School Board Renfrew County District School Board Simcoe County District School Board Simcoe Muskoka Catholic District School Board St. Clair Catholic District School Board Sudbury Catholic District School Board Superior North Catholic District School Board Superior-Greenstone District School Board Thames Valley District School Board Thunder Bay Catholic District School Board Toronto Catholic District School Board	Toronto District School Board Trillium Lakelands District School Board Upper Canada District School Board Upper Grand District School Board Upsala District School Area Board Waterloo Catholic District School Board Waterloo Region District School Board Wellington Catholic District School Board Windsor-Essex Catholic District School Board York Catholic District School Board York Region District School Board
Colleges – Ministry of Training, Colleges and Universities
Algonquin College of Applied Arts and Technology Cambrian College of Applied Arts and Technology Canadore College of Applied Arts and Technology Centennial College of Applied Arts and Technology Collège Boréal d’arts appliqués et de technologie Conestoga College Institute of Technology and Advanced Learning Confederation College of Applied Arts and Technology Durham College of Applied Arts and Technology Fanshawe College of Applied Arts and Technology George Brown College of Applied Arts and Technology Georgian College of Applied Arts and Technology Humber College Institute of Technology and Advanced Learning	Lambton College of Applied Arts and Technology Le collège d’arts appliqués et de technologie la Cité collégiale Loyalist College of Applied Arts and Technology Mohawk College of Applied Arts and Technology Niagara College of Applied Arts and Technology Northern College of Applied Arts and Technology Sault College of Applied Arts and Technology Seneca College of Applied Arts and Technology Sheridan College Institute of Technology and Advanced Learning Sir Sandford Fleming College of Applied Arts and Technology St. Clair College of Applied Arts and Technology St. Lawrence College of Applied Arts and Technology

Province of Ontario Schedule 9: Government Business Enterprises Summary financial information of Government Business Enterprises is provided below.
For the year ended March 31, 2009 ($ Millions)	Algonquin Forestry Authority	Hydro One Inc.	Liquor Control Board of Ontario	Niagara Parks Commission
Assets
Cash and Temporary Investments	5	142	162	–
Accounts Receivable	4	840	22	–
Inventories	1	22	339	7
Prepaid Expenses	–	–	17	–
Long-Term Investments	–	–	–	–
Fixed Assets	–	12,158	260	156
Other Assets	–	1,766	–	1
Total Assets	10	14,928	800	164
Liabilities
Bank Indebtedness	–	22	–	10
Accounts Payable	2	842	395	6
Notes Payable	–	150	–	–
Deferred Revenue	–	–	–	–
Long-Term Debt	–	6,337	55	31
Other Liabilities	1	2,362	–	6
Total Liabilities	3	9,713	450	53
Net Assets	7	5,215	350	111
Revenue	21	4,690	4,298	77
Expenses	23	4,160	2,888	81
Net Income (Loss)	(2)	530	1,410	(4)
Net Assets at Beginning of Year	9	5,011	340	115
Decrease in Fair Value of Ontario Nuclear Funds (Note 10)	–	–	–	–
Remittances (to) Consolidated Revenue Fund	–	(326)	(1,400)	–
Net Assets	7	5,215	350	111

Ontario Clean Water Agency	Ontario Lottery and Gaming Corporation	Ontario Power Generation Inc.	Total
23	693	197	1,222
23	72	456	1,417
–	–	815	1,184
2	58	38	115
37	–	–	37
4	2,482	12,698	27,758
120	58	11,006	12,951
209	3,363	25,210	44,684
–	–	–	32
15	410	1,272	2,942
–	–	–	150
–	–	125	125
10	170	3,803	10,406
–	285	13,720	16,374
25	865	18,920	30,029
184	2,498	6,290	14,655
141	6,486	5,994	21,707
137	4,565	5,811	17,665
4	1,921	183	4,042
180	2,482	7,319	15,456
–	–	(1,212)	(1,212)
–	(1,905)	–	(3,631)
184	2,498	6,290	14,655

Algonquin Forestry Authority

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

Hydro One Inc.

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

Liquor Control Board of Ontario

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, tests all products sold and establishes prices for beer, wine and spirits.

Niagara Parks Commission

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

The Agency assists municipalities in providing 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

The Corporation conducts lottery games and operates commercial casinos, charity casinos, and slot machines at Ontario racetracks.

Ontario Power Generation Inc.

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, 20091 ($ Millions)	Hospitals	School Boards	Colleges	Total
Expense
Salaries, Wages and Benefits	14,959	15,690	1,762	32,411
Bursaries, Student Aid and Other Grants	–	–	85	85
Interest Expense	112	404	37	553
Amortization Expense	892	593	148	1,633
Other	5,796	3,740	879	10,415
Total Expenses	21,759	20,427	2,911	45,097
Revenue
School Property Taxes	–	6,461	–	6,461
Fees, Donations and Other Primary Revenues	1,883	175	1,199	3,257
Interest and Investment Income	81	69	21	171
Other	1,210	1,000	196	2,406
Total Revenue	3,174	7,705	1,416	12,295
Net Expenses	18,585	12,722	1,495	32,802
Transfers from the Province	19,106	12,737	1,686	33,529
Increase in Net Assets of Broader Public Sector Organizations	521	15	191	727
Net Assets – Beginning of Year	8,390	7,284	2,015	17,689
Net Assets	8,911	7,299	2,206	18,416
Financial Assets	5,017	2,624	1,212	8,853
Liabilities	10,124	12,737	1,455	24,316
Net Debt	(5,107)	(10,113)	(243)	(15,463)
Tangible Capital Assets	14,018	17,412	2,449	33,879
Net Assets	8,911	7,299	2,206	18,416
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

Note: The descriptions of the terms in the glossary are provided for the purpose of assisting readers of the 2008–09 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 that 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, 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.

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 that 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.