Ministry of Finance Public Accounts of Ontario 2009-2010

• Auditor’s Report
• Consolidated Statement of Operations
• Consolidated Statement of Financial Position
• Consolidated Statement of Change in Net Debt
• Consolidated Statement of Change in Accumulated Deficit
• Consolidated Statement of Cash Flow
• Notes to the Consolidated Financial Statements
• Schedules to the Consolidated Financial Statements
• Glossary
• Sources of Additional Information

 

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

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, 2010 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. An 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, 2010 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 30, 2010	Jim McCarter, FCA Auditor General Licensed Public Accountant

Province of Ontario
Consolidated Statement of Operations
($ Millions)	2009–10	2009–10	2008–09
	Budget1	Actual	Actual
Revenues (Schedules 1 and 2)
Personal Income Tax	26,103	23,393	25,738
Sales Tax	17,425	17,059	17,021
Education Property Tax (Note 2)	5,710	5,626	5,696
Corporations Tax	8,518	5,615	6,748
Employer Health Tax	4,687	4,545	4,617
Gasoline and Fuel Taxes	3,099	2,994	3,021
Ontario Health Premium	2,829	2,763	2,776
Other Taxes	2,953	2,936	3,239
Total Taxation	71,324	64,931	68,856
Transfers from Government of Canada	19,246	18,620	16,591
Income from Investment in Government Business Enterprises (Schedule 9)	4,267	4,195	4,042
Other	7,611	8,047	7,444
	102,448	95,793	96,933
Expenses (Schedules 3 and 4)
Health	42,561	43,164	40,739
Education	20,914	20,592	19,676
Children's and Social Services	12,734	13,054	12,065
Environment, Resources and Economic Development	12,396	12,274	7,186
Interest on Debt	9,301	8,719	8,566
Post-Secondary Education and Training	6,576	7,038	6,081
Justice	3,911	3,784	3,788
General Government and Other	6,955	6,430	5,241
	115,348	115,055	103,342
Reserve	1,200	–	–
Annual Deficit	(14,100)	(19,262)	(6,409)
1 Amounts reported as "Plan" in 2009 Budget, restated for presentation changes, Note 2.
See accompanying Notes and Schedules to the Financial Statements.

Province of Ontario
Consolidated Statement of Financial Position
As at March 31	2010	2009
($ Millions)
Liabilities
Accounts Payable and Accrued Liabilities (Schedule 5)	17,568	17,329
Debt (Note 3)	212,122	176,915
Other Long-Term Financing (Note 5)	9,316	8,779
Deferred Revenue and Capital Contributions (Note 6)	6,580	6,750
Pensions and Other Employee Future Benefits (Note 7)	4,316	4,212
Other Liabilities (Note 8)	3,728	3,857
	253,630	217,842
Financial Assets
Cash and Cash Equivalents	12,751	9,677
Investments (Note 9)	12,741	9,063
Accounts Receivable (Schedule 6)	8,436	6,254
Loans Receivable (Schedule 7)	8,140	7,370
Other Assets	1,412	1,238
Investment in Government Business Enterprises (Schedule 9)	16,561	14,655
	60,041	48,257
Net Debt	(193,589)	(169,585)
Non-Financial Assets
Tangible Capital Assets (Note 10)	62,632	56,347
Accumulated Deficit	(130,957)	(113,238)
Contingent Liabilities (Note 12) and Contractual Obligations (Note 13)
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	2010		2009
($ Millions)
Annual Deficit		(19,262)		(6,409)
Acquisition of Tangible Capital Assets	(9,066)		(8,254)
Amortization of Tangible Capital Assets (Note 10)	3,212		2,900
Proceeds on Sale of Tangible Capital Assets	52		59
Gain on Sale of Tangible Capital Assets	(30)		(53)
		(5,832)		(5,348)
Increase (Decrease) in Fair Value of Ontario Nuclear Funds (Note 11)	1,090		(1,212)
Increase in Net Debt	(24,004)		(12,969)
Net Debt at Beginning of Year	(169,585)		(156,616)
Net Debt at End of Year	(193,589)		(169,585)
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	2010	2009
($ Millions)
Accumulated Deficit at Beginning of Year	(113,238)	(105,617)
School Boards Minor Tangible Capital Asset Adjustment (Note 2)	453	–
Restated Accumulated Deficit at Beginning of Year	(112,785)	(105,617)
Annual Deficit	(19,262)	(6,409)
Increase (Decrease) in Fair Value of Ontario Nuclear Funds (Note 11)	1,090	(1,212)
Accumulated Deficit at End of Year	(130,957)	(113,238)
See accompanying Notes and Schedules to the Financial Statements.

Province of Ontario
Consolidated Statement of Cash Flow
For the year ended March 31	2010	2009
($ Millions)
Operating Transactions
Annual Deficit	(19,262)	(6,409)
Amortization of Tangible Capital Assets (Note 10)	3,212	2,900
Gain on Sale of Tangible Capital Assets	(30)	(53)
Income from Investment in Government Business Enterprises (Schedule 9)	(4,195)	(4,042)
Remittances from Government Business Enterprises (Schedule 9)	3,379	3,631
Increase (Decrease) in Liability for Pensions and Other Employee Future Benefits (Note 7)	104	(377)
(Decrease) Increase in Deferred Revenue and Capital Contributions (Note 6)	(170)	2,303
Increase (Decrease) in Accounts Payable and Accrued Liabilities (Schedule 5)	239	(3,335)
(Decrease) Increase in Other Items	(3,255)	3,406
Cash Applied to Operating Transactions	(19,978)	(1,976)
Capital Transactions
Acquisition of Tangible Capital Assets	(9,066)	(8,254)
Proceeds from Sale of Tangible Capital Assets	52	59
Cash Applied to Capital Transactions	(9,014)	(8,195)
Investing Transactions
Increase in Investments (Note 9)	(3,678)	(3,782)
Cash Applied to Investing Transactions	(3,678)	(3,782)
Financing Transactions
Debt Issued	50,077	35,877
Debt Retired	(14,870)	(21,179)
Increase in Other Long-Term Financing	537	2,170
Cash Provided by Financing Transactions	35,744	16,868
Net Increase in Cash and Cash Equivalents	3,074	2,915
Cash and Cash Equivalents at Beginning of Year	9,677	6,762
Cash and Cash Equivalents at End of Year	12,751	9,677
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 Province.

Government business enterprises, broader public sector (BPS) organizations (i.e., hospitals, school boards and colleges) and other government organizations controlled by the Province are included in these financial statements. All BPS organizations are consolidated. However, other government organizations are individually consolidated if 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 revenue, deficit or surplus are greater than $10 million. A listing of consolidated government organizations is provided in Schedule 8.

The activities of organizations that do not meet the materiality thresholds for consolidation are reflected in these financial statements through the accounts of the ministries responsible for them.

Trusts administered by the Province on behalf of other parties are excluded from the reporting entity but are disclosed in Note 14.

Principles of Consolidation

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 net income is shown as a separate item, Income from Investment in Government Business Enterprises, on the Consolidated Statement of Operations.

Effective April 1, 2009, the assets and liabilities of the BPS organizations are consolidated with those of the Province on a line-by-line basis on the Consolidated Statement of Financial Position. As such, the net debt of hospitals, school boards and colleges is included in the consolidated net debt of the Province. The total annual expenses of these BPS organizations, net of revenues they receive directly from the public, such as tuition fees, patient fees, donations and other recoveries, are included with the consolidated expenses of the Province. The expenses of hospitals are included with Health expenses, school boards with Education expenses, and colleges with Post-Secondary Education and Training expenses on the Consolidated Statement of Operations. Where necessary, adjustments are made to present the accounts of these organizations on a basis consistent with the accounting policies of the Province, and to eliminate significant inter-organizational accounts and transactions.

Other government organizations are included on a line-by-line basis with the consolidated assets, liabilities, revenues and expenses of the Province. Where necessary, adjustments are also made to present the accounts of these organizations on a basis consistent with the accounting policies of the Province, and to eliminate significant inter-organizational accounts and transactions.

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 pensions and other employee future benefits obligations, the value of tangible capital assets, the estimation of personal income and corporations tax revenue accruals, the valuation of the Canada Health Transfer and Canada Social Transfer entitlements, the valuation of auto sector investments and the valuation of asset-backed term notes.

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 corporations tax base and population. Uncertainty related to the estimated net realizable value of the investments in the auto sector arises due to the reliance on market assumptions used in the Province’s valuation of the enterprises. Actual market results may vary from these assumptions. The uncertainties relating to the valuation of the Canadian third-party asset-backed term notes are detailed in Note 9 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.

Deferred capital contributions are amortized into revenue over the estimated useful life of the related tangible capital assets.

Expenses

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

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: 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, transportation infrastructure, vehicles, aircraft, leased assets, machinery, equipment and information technology infrastructure and systems owned by the Province and its consolidated organizations are amortized and recognized as expenses over their estimated useful lives on a straight-line basis.

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.

Alternative financing and procurement (AFP) refers to the Province using private-sector partners to procure and finance infrastructure assets. Assets procured via AFP are recognized as tangible capital assets and the related obligations are recognized as other long-term financing liabilities in these financial statements as the assets are constructed.

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 and cash equivalents, investments, accounts receivable, loans receivable, advances, and investments in government business enterprises.

Investments include temporary investments, investments in the auto sector, asset-backed term notes, and portfolio investments. Temporary investments are recorded at the lower of cost or market value. Investments in the auto sector, asset-backed term notes and portfolio investments are recorded at the lower of cost or their estimated net realizable value.

Accounts receivables are recorded at cost. A valuation allowance is recorded when collection of the receivable is considered doubtful.

Loans receivable include loans to government business enterprises and loans under the student loans program, advanced manufacturing investment program, and the automotive investment strategy fund. Loans receivable with significant concessionary terms are considered in part to be 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.

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.

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, as well as interest related to financing during construction. 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.

The following categories are included under tangible capital assets: land, buildings, transportation infrastructure, vehicles, aircraft, leased assets, machinery, equipment and information technology infrastructure and systems, and construction in progress.

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 capital contributions and amortized to revenue consistent with the amortization to expense of the related tangible capital assets.

Future Changes in Accounting Standards

In December 2009, PSAB confirmed that government business enterprises will be required to adopt International Financial Reporting Standards (IFRS) in fiscal years beginning on or after January 1, 2011. On July 28, 2010, the CICA issued an Exposure Draft proposing that qualifying entities with rate-regulated activities be permitted to defer the adoption of IFRS until January 1, 2013. The Province’s Consolidated Financial Statements will be affected by these changes to the extent that government business enterprises are impacted.

Other consolidated government organizations may also be impacted by PSAB’s recent proposals for Government Not-for-Profit Organizations that could impact the basis upon which these entities report. The Ministry of Finance continues to assess these proposals and has initiated a process to consult with the potentially impacted public-sector organizations. The final PSAB standard and the result of the consultations may result in changes to the classification and basis of reporting for some government organizations and enterprises in future periods.

The potential future impact on the Province’s Consolidated Financial Statements of these proposed future changes in accounting standards is not reasonably determinable at this time.

2. Accounting and Financial Presentation Changes

These financial statements reflect the following changes in accounting policies and financial statement presentation:

Accounting Policy Changes

Minor Tangible Capital Assets

During fiscal year 2009–10, the Province extended its accounting policy for tangible capital assets in accordance with PSAB standards to include building leasehold improvements, assets acquired through capital leases, vehicles, aircraft and information technology infrastructure and systems.

Starting in the 2009–10 fiscal year, the costs of assets acquired in these classifications are being capitalized and amortized over their estimated useful lives. Previously these items were expensed in their year of acquisition.

Except for the tangible capital assets in these classifications for school boards, these items are being capitalized on a prospective basis as the information necessary to restate opening balances is not readily available.

At March 31, 2009, the net book value of the minor tangible capital assets of the school board sector was $404 million and the net book value of their leased assets was $49 million. The revised accounting policy as discussed above has been implemented retroactively as the information necessary to restate was available. The net impact of the restatement was to decrease the Province’s Accumulated Deficit at April 1, 2009 by $453 million with a corresponding increase in tangible capital assets.

The impact of the accounting policy change was a decrease in total expenses and the 2009–10 Annual Deficit of $215 million.

Interest Capitalization on Constructed Assets

Effective April 1, 2009, interest relating to the financing of the construction of tangible capital assets owned by the Province is being capitalized consistent with the accounting practice of consolidated BPS organizations.

The net impact of the accounting policy change was to decrease interest on debt expense and the 2009–10 Annual Deficit by $148 million.

Financial Statement Presentation Changes

Broader Public Sector Presentation

In accordance with PSAB, effective fiscal 2005–06, the Province’s reporting entity was expanded to include public hospitals, school boards, and colleges, collectively referred to as BPS organizations. As permitted under PSAB standards, these BPS organizations were consolidated in the Province’s financial statements on a one-line equity basis of accounting until March 31, 2009. Effective April 1, 2009, the BPS organizations are being consolidated in the Province’s financial statements on a line-by-line basis as described in Note 1.

With this change in presentation, the consolidated net debt of the Province as at April 1, 2009 was increased by $16.3 billion. There is no impact on the Province’s annual deficit or accumulated deficit as a result of adoption of this financial presentation change.

The comparative results from the 2008–09 fiscal year have been restated to reflect the revised financial presentation.

Education Property Tax

In prior years, Education Property Tax revenue was netted against Education Expenses consistent with the one-line basis of presenting consolidated BPS expenses of school boards described above. Effective April 1, 2009, with the change in presentation of consolidated BPS organizations described in Note 1, Education Property Tax revenue is no longer being netted against school board expenses but shown separately in revenue. This change results in an increase in total Revenues of $6.5 billion (2008–09, $6.5 billion). Education Property Tax revenue increased by $5.6 billion (2008–09, $5.7 billion) and Personal Income Tax revenue by $912 million (2008–09, $765 million) reflecting the reclassification of refundable property tax credits from Personal Income Tax consistent with PSAB’s recommended presentation. The related increase in Education Expenses is $6.5 billion (2008–09, $6.5 billion). There is no impact on the Province’s annual deficit or accumulated deficit as a result of adoption of this financial presentation change.

3. Debt

The Province borrows in both domestic and international markets. Debt of $212.1 billion, as at March 31, 2010 (2009, $176.9 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 funds. Debt comprises Debt Issued for Provincial Purposes of $184.7 billion (2009, $149.2 billion) and Ontario Electricity Financial Corporation (OEFC) Debt of $27.4 billion (2009, $27.7 billion). The following table 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							2010	2009
As at March 31
Currency	Canadian	U.S.	Japanese	Euro	Other Currencies1		Total	Total
	Dollar	Dollar	Yen
Maturing in:
2010								$25,382
2011	$27,238	6,433	–	–	252	$33,923		16,394
2012	8,765	4,664	–	–	47	13,476		13,742
2013	7,249	9,526	–	–	550	17,325		11,975
2014	15,252	1,010	152	2,343	576	19,333		16,938
2015	11,780	9,081	54	–	717	21,632		–
1–5 years	70,284	30,714	206	2,343	2,142	105,689		84,431
6–10 years	23,230	5,483	96	5,163	2,792	36,764		27,101
11–15 years	12,070	–	–	–	–	12,070		11,097
16–20 years	15,602	–	–	–	–	15,602		16,658
21–25 years	9,626	–	–	–	–	9,626		8,816
26–452 years	32,239	–	–	–	–	32,239		28,722
	$163,051	36,197	302	7,506	4,934	$211,990		$176,825
Unamortized	–	71	17	44	–	132		90
Foreign Exchange
Gains
Total3, 4	$163,051	36,268	319	7,550	4,934	$212,122		$176,915
Debt Issued for Provincial	139,453	33,828	319	7,371	3,713	184,684		149,247
Purposes5
OEFC Debt	23,598	2,440	–	179	1,221	27,438		27,668
Total	$163,051	36,268	319	7,550	4,934	$212,122		$176,915
Effective Interest Rates (Weighted Average)
2010	5.00%	2.96%	2.21%	3.95%	4.06%	4.58%		–
2009	5.45%	3.73%	3.83%	4.02%	4.56%	–		5.17%
1 Other currencies comprise Australian dollar, New Zealand dollar, UK Pound sterling, Swiss franc, Hong Kong dollar and South African rand.
2 The longest term to maturity is to June 2, 2054.
3 Total foreign currency denominated debt (before unamortized foreign exchange gains) as at March 31, 2010, was $48.9 billion (2009, $31.5 billion). Of that, $48.7 billion or 99.5 per cent (2009, $31.2 billion or 99.1 per cent) was fully hedged to Canadian dollars. The remaining 0.5 per cent (2009, 0.9 per cent) of foreign debt was unhedged as follows: $206 million (2009, $241 million) Japanese yen denominated debt and $48 million (2009, $55 million) Swiss franc denominated debt.
4 Total debt includes issues totalling $1.4 billion (2009, $2.4 billion), which have embedded options exercisable by either the Province or the bondholder under specific conditions.
5 Debt denominated in Canadian dollars as at March 31, 2010 includes $1.0 billion (2009, $0.5 billion) long-term debt purchased and held by the Province.

Debt	2010	2009
As at March 31
Debt Payable to:
Public Investors	$195,116	$158,301
Canada Pension Plan Investment Fund	10,233	10,233
Ontario Teachers' Pension Plan	1,765	3,001
Public Service Pension Plan	1,713	1,991
Ontario Public Service Employees Union Pension Fund	814	946
Canada Mortgage and Housing Corporation	755	811
Others1	1,726	1,632
Total	$212,122	$176,915
1 Debt Payable to Others is composed of School Board Trust Debt of $797 million (2009, $814 million) and debt of Ontario Immigrant Investor Corporation of $929 million (2009, $818 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, 2010 was $227.1 billion (2009, $196.7 billion). This is higher than the book value of $212.1 billion (2009, $176.9 billion) because current interest rates are generally lower than the interest rates at which the debt was issued. The fair value of debt does not reflect the effect of related derivative contracts.

School Board Trust Debt

A School Board Trust was created in June 2003 to permanently refinance debt incurred by 55 school boards. The Trust issued 30-year sinking fund debentures amounting to $891 million in June 2003. The Trust provided $882 million of the proceeds to the 55 school boards in exchange for the irrevocable right to receive future transfer payments from the Province related to this debt. These amounts will be reduced over the 30-year period by the transfer payments made by the Ministry of Education to the Trust under the School Board Operating Grant program. As at March 31, 2010, the outstanding amount of $788 million (2009, $806 million) advanced to school boards is included in Other Assets and outstanding debentures of $797 million (2009, $814 million) are included in Debt.

4. Risk Management and Derivative Financial Instruments

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

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

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

The current policy allows the amount of unhedged foreign currency debt principal net of foreign currency holdings to reach a maximum of 5 per cent of Debt Issued for Provincial Purposes and OEFC Debt. At March 31, 2010, the respective unhedged levels were 0.1 and nil per cent (2009, 0.2 and nil per cent). The Province’s unhedged level of 0.1 per cent was primarily related to Japanese yen denominated debt. For every one Japanese yen decrease versus the Canadian dollar, there would be an increase in debt of $2.3 million (2009, $3.1 million) and an increase in Interest on Debt of $0.6 million (2009, $0.9 million). Total foreign exchange gains recognized in the Statement of Operations for 2009–10 were $30 million (2008–09, $67 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 Debt to a maximum of 35 per cent.

As at March 31, 2010, interest rate resetting risk for Debt Issued for Provincial Purposes and OEFC Debt was 11.4 per cent and 16.4 per cent respectively (2009, 11.5 per cent and 19.5 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 $240 million (2009, $230 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 9), adjusted for collateral (Note 12), at levels that will meet future cash requirements and will give the Province flexibility in the timing of issuing debt. Pledged assets are considered encumbered for liquidity purposes while collateral held is a source of liquidity. 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, 2010, 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								2010	2009
As at March 31
Maturity in	2011	2012	2013	2014	2015	6-10 Years	Over 10 Years	Total	Total
Fiscal Year
Swaps:
Interest Rate1	$9,280	$10,579	$12,209	$6,546	$24,034	$22,465	$6,224	$91,337	$74,207
Cross Currency	5,866	4,516	10,364	5,954	9,224	15,404	–	51,328	31,847
Forward Foreign	9,379	–	–	–	–	–	–	9,379	8,881
Exchange Contracts
Caps and Floors	–	–	–	–	–	–	–	–	88
Total	$24,525	$15,095	$22,573	$12,500	$33,258	$37,869	$6,224	$152,044	$115,023
1 Includes $1.6 billion (2009, $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

Credit Risk Exposure	2010	2009
As at March 31
Gross Credit Risk Exposure	$2,919	$5,492
Less: Netting	(2,508)	(4,542)
Net Credit Risk Exposure	$411	$950

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.

5. Other Long-Term Financing

Other long-term financing comprises the total debt of the Broader Public Sector (BPS) and obligations under Alternative Financing and Procurement (AFP) arrangements.

Other Long-Term Financing of $9.3 billion, as at March 31, 2010 (2009, $8.8 billion) includes BPS Debt of $6.1 billion (2009, $6.2 billion), BPS AFP obligations of $2.7 billion (2009, $2.3 billion) and direct provincial AFP obligations of $0.5 billion (2009, $0.3 billion).

6. Deferred Revenue and Capital Contributions

Deferred Revenue and Capital Contributions	2010	2009
As at March 31
Deferred Revenue:
Federal Transfers	$737	$1,150
Vehicle and Driver Licences	644	637
Other	1,116	1,243
Total Deferred Revenue	2,497	3,030
Deferred Capital Contributions - Spent	3,937	3,533
Deferred Capital Contributions - Unspent	146	187
Total Deferred Capital Contributions	4,083	3,720
Total	$6,580	$6,750

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
		2008–09 and prior	2009–10	2010–11	2011–12 and thereafter	As at
						March 31, 2010
Community Development Trust	$358	$119	$119	$120	$ –	$120
ecoTrust for Clean Air	586	390	196	–	–	–
and Climate Change
Strategic Highway Infrastructure Fund	168	22	7	7	132	139
Police Officers Recruitment Fund	156	31	31	31	63	94
Public Transit Capital Trust 2008	195	97	98	–	–	–
Border Infrastructure Fund	129	10	5	5	109	114
Labour Market Agreement	194	117	77	–	–	–
Patient Wait Times Guarantee Trust	205	136	69	–	–	–
HPV Immunization Trust	117	78	39	–	–	–
Windsor Border Initiatives Implementation Group	89	1	2	4	82	86
Government of Canada Infrastructure	105	–	–	105	–	105
Other Federal Transfers	106	15	12	30	49	79
Total	$2,408	$1,016	$655	$302	$435	$737

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.

Deferred Capital Contributions – Spent represents the unamortized balance of donations and federal government capital grants received for the purchase or construction of tangible capital assets. Spent capital contributions are amortized to revenue consistent with the amortization to expense of the related tangible capital assets.

Deferred Capital Contributions – Unspent represents donations and federal government capital grants received but not yet spent for the purchase or construction of tangible capital assets. The amortization of Deferred Capital Contributions to revenue starts once the contributions are spent and the related tangible capital assets are ready for service.

7. Pensions and Other Employee Future Benefits

Pensions and Other Employee Future Benefits Liability (Asset)
As at March 31	2010	2010	2010	2009
	Pensions	Other Employee Future Benefits	Total	Total
Obligation for benefits	$91,596	$10,796	$102,392	$96,508
Less: plan fund assets	(96,729)	(438)	(97,167)	(94,488)
Unamortized actuarial (losses) gains	(2,082)	(776)	(2,858)	410
Adjustments1	1,949	–	1,949	1,782
Total2	($5,266)	$9,582	$4,316	$4,212
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) amounts payable by the Province that are reflected as contributions in the pension plan assets.
2 Effective April 1, 2009, the Pensions and Other Employee Future Benefits liabilities of the hospitals, school boards and colleges sectors are combined with those of the Province and comparative numbers restated to reflect such changes.

Pensions and Other Employee Future Benefits Expense
For the year ended March 31	2010	2010	2010	2009
	Pensions	Other Employee Future Benefits	Total	Total
Cost of benefits	$1,869	$363	$2,232	$2,021
Amortization of actuarial (gains) losses	(289)	78	(211)	(468)
Employee contributions	(251)	–	(251)	(220)
Cost of plan amendments	–	–	–	280
Interest (income) expense	(519)	264	(255)	(387)
Adjustments1	(19)	–	(19)	(12)
Total2	$791	$705	$1,496	$1,214

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.

²  This expense is disclosed in Schedule 4 as follows:

For the year ended March 31	2010	2009
Ontario Teachers’ Pension Plan	255	50
Public Service Pension Plan and Ontario Public Service Employees Union Pension Plan	949	971
Included in Various Ministries	292	193
Total (Schedule 3)	1,496	1,214

The Pensions and Other Employee Future Benefits Expenses for the hospitals, school boards and colleges sectors (except for the Ontario Teachers’ Pension Plan) are not included in the table above. These expenses are included in the Salaries, Wages and Benefits of BPS organizations (Schedule 10) and in the expenses of the BPS ministries (Education, Health and Long-Term Care, and Training, Colleges and Universities) 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 eleven 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 once every three years. The Province contributed $1,246 million to OTPP in 2009–10 (2008–09, $1,073 million), $240 million (including a $4 million special payment) to PSPP (2008–09, $227 million including a $4 million special payment) and $157 million to OPSEU Pension Plan (2008–09, $157 million). During calendar year 2009, OTPP paid benefits, including transfers to other plans, of $4.4 billion (2008, $4.2 billion), PSPP paid $914 million (2008, $881 million) and OPSEU Pension Plan paid $718 million (2008, $590 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 11.4 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.

Pension benefits for employees in the hospital and colleges sectors are provided by the Healthcare of Ontario Pension Plan (HOOPP) and the Colleges of Applied Arts and Technology Pension Plan (CAATPP).

HOOPP is a multi-employer pension plan covering employees of Ontario’s healthcare community. CAATPP is a multi-employer pension plan covering employees of the Colleges of Applied Arts and Technology in Ontario, the Board of Trustees, the Ontario College Application Services and, effective December 1, 2009, the Ontario College Library Services. Both of these plans are contributory defined benefit plans that provide eligible members with a retirement income based on a formula that takes into account a member’s earnings history and length of service in the plan. The plans are financed by contributions from participating members and employers, and by investment earnings.

Expenses for HOOPP of $956 million (2008–09, $853 million) and CAATPP of $153 million (2008–09, $94 million) are included in the Salaries, Wages and Benefits expenses of the hospital and colleges sectors respectively (Schedule 10) and in the expenses of the related ministries (Schedule 4). The related liabilities are included in the Pensions and Other Employee Future Benefits liability on the Consolidated Statement of Financial Position.

Other Employee Future Benefits

Other Employee Future Benefits are non-pension retirement benefits, post-employment benefits, compensated absences and termination benefits.

Non-Pension 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 liability for non-pension retirement benefits of $7.3 billion as at March 31, 2010 (2009, $6.7 billion) is included in the Other Employee Future Benefits Liability. The expense for 2009–10 of $413 million (2008–09, $650 million) (excluding the expense for BPS sector organizations) is included in the Other Employee Future Benefits Expense. The BPS sector expense of $168 million in 2009–10 (2008–09, $205 million) is included in the Salaries, Wages and Benefits expense of BPS organizations (Schedule 10) and in the expenses of the related ministries (Schedule 4).

The discount rate used in the non-pension retirement benefits calculation for 2009–10 is 5.3 per cent (2008–09, 5.1 per cent).

Post-Employment Benefits, Compensated Absences and Termination Benefits

The Province provides, on a self-insured basis, workers’ compensation benefits, long-term disability benefits and regular benefits to employees who are on long-term disability. 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 total post-employment benefits liability of $2.3 billion as at March 31, 2010 (2009, $2.1 billion) is included in the Other Employee Future Benefits Liability. The total post-employment benefits expense for 2009–10 of $292 million (2008–09, $193 million) (excluding the expense for BPS sector organizations) is included in the Other Employee Future Benefits Expense. The BPS sector total post-employment benefits expense of $386 million for 2009–10 (2008–09, $346 million) is included in the Salaries, Wages and Benefits expense of BPS organizations (Schedule 10) and in the expenses of the related ministries (Schedule 4).

The discount rate used in the post-employment benefits, compensated absences and termination benefits calculations for 2009–10 is 4.80 per cent (2008–09, 4.95 per cent).

8. Other Liabilities

Other Liabilities	2010	2009
As at March 31
Power Purchase Contracts	1,858	2,206
Other Funds and Liabilities	1,870	1,651
Total	$3,728	$3,857

Power Purchase Contracts

Power supply contracts include both power purchase contracts and power supply support agreements. 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 (OEFC), a consolidated government organization, 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 legislated reforms to the electricity market, OEFC began receiving actual contract prices for power from ratepayers effective January 1, 2005 and no longer incurs losses on these contracts. At that time, it was estimated that the bulk of the liability would be eliminated over 12 years as existing electricity contracts expired. The decrease in the liability for power purchase contracts for 2009–10 was $348 million (2008–09, $373 million). This results in a liability of $1.9 billion as at March 31, 2010 (2009, $2.2 billion).

In addition, effective January 1, 2009, OEFC entered into a support contract with Ontario Power Generation Inc. (OPG) whereby OPG agreed to maintain the reliability and availability of Lambton and Nanticoke coal-fired stations following implementation of a greenhouse gas emissions-reduction strategy. Under the contract, OEFC agreed to ensure OPG would recover the actual costs of operating the stations after implementing this strategy. Any costs to OEFC under this agreement, which expires December 31, 2014, are fully recovered from electricity ratepayers.

During the year ended March 31, 2010, OEFC’s cost under power supply contracts (included in Schedules 1, 3 and 4) totalled $1,409 million (2008–09, $953 million), including purchases of power from NUGs of $954 million (2009, $914 million) and OPG support contract costs of $455 million (2009, $39 million). All of these costs were fully recovered from electricity ratepayers (as shown in Schedules 1, 3 and 4).

Other Funds and Liabilities

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.

9. Investments

Investments	2010	2009
As at March 31
Temporary Investments	$5,954	$5,040
Add: Assets Purchased under Resale Agreements	4,384	3,079
Less: Assets Sold under Repurchase Agreements	(1,306)	(1,089)
Total Temporary Investments	$9,032	$7,030
Auto Sector Investments at Net Realizable Value	1,347	8
Other Investments	1,904	1,524
Asset-Backed Term Notes	458	501
Total Investments	$12,741	$9,063

Temporary Investments

The fair value of temporary investments, including assets purchased and sold under resale and repurchase agreements, at March 31, 2010, is $9.0 billion (2009, $7.0 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.

Investments in the Auto Sector

In 2009, the Province committed to provide one-third of the total Canadian financial assistance, to a maximum of $4.8 billion, as part of a co-ordinated response with the Canadian and U.S. federal governments to support the restructuring of the North American automotive industry. The Province’s one-third interest was initiated through a Loan Participation Agreement with Export Development Canada (EDC), a federal Crown corporation.

Interest-bearing loans of $13.7 billion were issued by the Canadian government through EDC, including $0.3 billion issued in 2009. During the year, $0.4 billion was repaid. The Province’s interest in the loans issued during the year was $4.6 billion (2009, $83 million), less repayments of $134 million, resulting in an outstanding balance of $4.4 billion. Additional repayments of $365 million were received subsequent to year end.

During the year, EDC agreed to transfer $9.1 billion of the $13.7 billion of outstanding loans to the Canada Development Investment Corporation (CDIC), another federal Crown corporation, through a transfer agreement for nominal consideration. These loans were exchanged by CDIC for common and preferred shares of the borrower. The rights of the Province to a one-third interest in the proceeds of these shares are governed under Memoranda of Understanding between the Canadian government and the Province. The Province’s interest in the exchange of loans for shares was accounted for as an investment.

The Province has accounted for its participative interests in the auto sector as investments in these financial statements. The net realizable value of these investments at March 31, 2010 is estimated at $1,347 million (2009, $8 million), based on enterprise valuation using discounted future cash flows and other methods. The difference between the outstanding balance of $4.4 billion and the net realizable value of $1,347 million is reflected in the expense of the Environment, Resources and Economic Development sector.

Asset-Backed Term Notes

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.

As at March 31, 2010, the Province held $609.8 million (2009, $636.8 million) in restructured long-term notes that were issued by the Master Asset Vehicle (MAV) in 2009 as a result of the restructuring of the ABCP. Management’s best estimate of the net recoverable value of the MAV notes, as at March 31, 2010, is approximately $458.4 million (2009, $501.1 million), which includes a principal repayment of $19.8 million received in 2009–10.

Other Investments

Other investments represent the investments of BPS organizations. These investments primarily consist of fixed income securities. The fair value of these investments approximates book value.

           

10. Tangible Capital Assets

Tangible Capital Assets	2010	2010	2010	2009
As at March 31
	Cost	Accumulated Amortization	Net Book	Net Book
			Value	Value
Land	$8,765	–	$8,765	$8,111
Buildings	49,642	13,866	35,776	33,137
Transportation Infrastructure	20,145	7,764	12,381	11,226
Machinery and Equipment	9,378	7,066	2,312	2,038
Information Technology	2,554	1,669	885	613
Other	4,083	1,570	2,513	1,222
Total	$94,567	$31,935	$62,632	$56,347

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 construction in progress.

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

Machinery and Equipment consists mainly of hospital equipment.

Information Technology consists of computer hardware and software.

Other includes leased assets, vehicles, and other miscellaneous tangible capital assets owned by the government and its consolidated organizations.

Works of art and historical treasures including the Legislative Building are excluded from tangible capital assets.

All tangible capital assets, except assets 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 2009–10 totalled $3.2 billion, of which $1.1 billion (2008–09, $1.0 billion) relates to the Province and $2.1 billion (2008–09, $1.9 billion) relates to the BPS. The latter expense is included under the BPS expense reported on Schedule 10. 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
Machinery and Equipment	3 to 30 years
Information Technology	3 to 6 years
Other	3 to 25 years

 
11. 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.

Since April 1, 2007, the fair value of ONFA Funds has been 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 gains in 2009–10 of $1.1 billion (unrealized losses in 2008–09, $1.2 billion) that resulted in an increase in Investment in Government Business Enterprises, and a corresponding decrease in Net Debt and Accumulated Deficit.

12. Contingent Liabilities

Obligations Guaranteed by the Province

The authorized limit for loans guaranteed by the Province as at March 31, 2010 was $826 million (2009, $912 million). The outstanding loans guaranteed and other contingencies amounted to $734 million as at March 31, 2010 (2009, $721 million). A provision of $26 million (2009, $36 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 portion of the nuclear used fuel waste management segregated fund related to the fixed volume of used fuel. If the earnings on assets in that fund related to the fixed volume 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 (in prescribed circumstances) to the segregated funds established under ONFA. The other agreement provides a direct provincial guarantee to the CNSC on behalf of OPG. This guarantee, for up to $1.5 billion, effective March 1, 2010, relates to the portion of the decommissioning and waste management obligations not funded by the value of the segregated funds as at January 1, 2009. 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, 2010, there were $7.4 billion (2009, $7.7 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 69 (2009, 66) 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.

Collateral

The Province has financial instrument repurchase agreements in place providing for the exchange of collateral with counterparties. Starting in 2009–10, the Province also entered into collateral agreements with certain derivatives counterparties that are generally conducted under terms that are usual and customary to derivatives transactions. In the normal course of business, the Province may be required to pledge and/or receive assets relating to obligations arising from derivatives and repurchase agreements. Provided there is no default, these pledged securities must be returned to the pledgor when there are no longer any outstanding obligations.

As at March 31, 2010, the Province pledged assets in the carrying amount of $1.3 billion, which are included in Investments.

13. Contractual Obligations

Contractual Obligations as at March 31			Minimum Payments to be made in:
	2010	2009	2011	2012	2013	2014	2015	2016 and
								thereafter
Ontario Power Generation	$10,071	$10,935	$2,592	$1,427	$1,216	$555	$417	$3,864
Transfer Payments	12,192	8,861	4,790	2,059	1,871	553	657	2,262
Leases	3,149	3,070	355	300	260	240	187	1,807
Construction Contracts	2,808	4,170	1,968	485	292	61	2	–
Alternative Financing Contracts	4,674	1,121	536	457	979	257	141	2,304
Other	4,413	2,639	2,056	765	559	286	105	642
Total Contractual Obligations	$37,307	$30,796	$12,297	$5,493	$5,177	$1,952	$1,509	$10,879

Ontario Power Generation Inc.’s contractual obligations include future contributions under ONFA of $1.8 billion, long-term debt repayment obligations of $4.0 billion and fuel supply agreements of $1.3 billion.

In November 2009, the Pan American Sports Organization selected the City of Toronto to host the 2015 Pan/Parapan American Games. A comprehensive Multi-Party Agreement (MPA) among the Province, the federal government, the City of Toronto, the Canadian Olympic Committee, the Canadian Paralympic Committee and the Ontario 2015 Pan Am Games Bid Corporation was signed on November 6, 2009. The MPA establishes the roles and relationships of all the parties, the contractual arrangements, financial contributions, legal responsibilities, and the sport legacies of the parties in relation to the Games. In January 2010, the Toronto Organizing Committee for the 2015 Pan American and Parapan American Games was incorporated as the successor organization to the Ontario 2015 Pan Am Games Bid Corporation.

The Province has made a commitment to contribute $500 million towards the Games and this is included in the Transfer Payments in the above table. The Province has also provided a financial guarantee to cover costs in excess of the aggregate agreed contribution to the Games by all parties. Any future cost associated with this guarantee is undeterminable as at March 31, 2010.

14. 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	2009	2008
As at December 31
Assets	$15,541	$13,207
Liabilities	27,292	24,676
Unfunded Liability	(11,751)	(11,469)
Revenues	5,063	1,269
Expenditures	5,345	4,644
(Deficit)	(282)	(3,375)
Unfunded Liability, Beginning of Year	(11,469)	(8,094)
Unfunded Liability, End of Year	($11,751)	($11,469)

Other Trust Funds
As at March 31, 2010
	Assets	Liabilities	Fund Balance
			(Unfunded Liability)
The Public Guardian and	$1,479	$1,397	$82
Trustee for Province of Ontario
Motor Vehicle Accident Claims Fund	$63	$240	($177)
Pension Benefits Guarantee Fund	$669	$566	$103
As at December 31, 2009	Assets	Liabilities	Fund Balance
Deposit Insurance Corporation of Ontario	$119	$41	$78

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.

15. Comparative Figures

The comparative figures have been reclassified as necessary to conform to the 2010 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)	2009–10	2009–10	2008–09
	Budget1	Actual	Actual
Taxation
Personal Income Tax	26,103	23,393	25,738
Sales Tax	17,425	17,059	17,021
Education Property Tax	5,710	5,626	5,696
Corporations Tax	8,518	5,615	6,748
Employer Health Tax	4,687	4,545	4,617
Ontario Health Premium	2,829	2,763	2,776
Gasoline Tax	2,367	2,336	2,323
Tobacco Tax	995	1,083	1,044
Land Transfer Tax	895	1,015	1,013
Fuel Tax	732	658	698
Electricity Payments-In-Lieu of Taxes	685	516	830
Other Taxes	378	322	352
	71,324	64,931	68,856
Transfers from Government of Canada
Canada Health Transfer	9,722	9,791	8,942
Canada Social Transfer	4,213	4,204	4,079
Infrastructure Programs	1,746	990	151
Labour Market Development Agreement	804	803	604
Social Housing	509	498	520
Equalization Payments	347	347	–
Labour Market Agreement	194	271	117
Indian Welfare Services Agreement	189	212	189
ecoTrust for Clean Air and Climate Change	196	196	195
Community Development Trust	119	119	119
Strategic Training and Transition Fund	103	103	–
Public Transit Capital Trust 2008	98	98	97
Wait Times Reduction Fund	97	97	235
Bilingualism Development	77	87	85
Labour Market Agreement for Persons with Disabilities	76	76	76
Patient Wait Times Guarantee	69	69	68
Youth Criminal Justice	64	66	66
Legal Aid Criminal	50	52	50
Federal Capital Tax Incentive	26	33	87
Student Assistance	19	22	–
Corporations Tax Administration Redesign	–	–	150
Public Transit Capital Trust	–	–	117
Affordable Housing Trust	–	–	78
Other	528	486	566
	19,246	18,620	16,591

Province of Ontario
Schedule 1: Revenues by Source (cont'd)
($ Millions)	2009–10	2009–10	2008–09
	Budget1	Actual	Actual
Income from Investment in Government Business	4,267	4,195	4,042
Enterprises (Schedule 9)
Other
Power Supply Contract Recoveries (Note 8)	964	1,409	953
Vehicle and Driver Registration Fees	1,065	1,057	1,034
Electricity Debt Retirement Charge	955	907	970
Other Fees and Licences	815	708	674
Local Services Realignment	636	673	721
Sales and Rentals	619	647	733
Liquor Licence Board of Ontario Revenues	457	460	468
Net Reduction of Power Purchase Contracts (Note 8)	348	348	373
Royalties	211	228	205
Independent Electricity System Operator Revenue	144	120	133
Miscellaneous	1,397	1,490	1,180
	7,611	8,047	7,444
Total Revenues	102,448	95,793	96,933
1 Amounts reported as "Plan" in 2009 Budget, restated for presentation changes, Note 2.

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	2010	2009	2010	2009	2010	2009	2010	2009
($ Millions)
Revenues
Taxation (Schedule 1)	–	–	–	–	–	–	1	2
Transfers from Government of Canada (Schedule 1)	124	82	71	64	314	293	1,541	964
Income from Investment in Government Business Enterprises	–	–	–	–	–	–	831	711
Other (Schedule 1)	226	107	15	29	645	694	2,679	2,330
Total	350	189	86	93	959	987	5,052	4,007
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, Consumer Services, Culture, Economic Development and Trade, Energy and Infrastructure, Environment, Labour, Municipal Affairs and Housing, Natural Resources, Northern Development and Mines, Research and Innovation, Tourism, and Transportation.

Post-Secondary Education and Training5		Justice6		General Government and Other7		Total
	2009	2010	2009	2010	2009	2010	2009
2010
–	–	–	–	64,930	68,854	64,931	68,856
1,410	808	108	94	15,052	14,286	18,620	16,591
–	–	–	–	3,364	3,331	4,195	4,042
31	37	647	641	3,804	3,606	8,047	7,444
1,441	845	755	735	87,150	90,077	95,793	96,933
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, Finance, Revenue, the Board of Internal Economy, Executive Offices and the Office of Francophone Affairs.

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	2010	2009	2010	2009	2010	2009	2010	2009
($ Millions)
Expenses
Transfer Payments	42,173	39,269	20,192	19,263	12,327	11,170	4,726	2,715
Interest on Debt	–	–	–	–	–	–	–	–
Salaries and Wages	528	520	174	174	434	459	1,527	1,439
Services	785	708	115	109	158	156	1,191	1,244
Pensions and Employee Future Benefits (Note 7)	8	8	227	50	8	8	11	11
Power Supply Contract Costs (Note 8)	–	–	–	–	–	–	–	–
Amortization of Tangible Capital Assets	55	38	14	9	–	–	895	838
Employee Benefits	80	86	57	27	70	82	268	220
Supplies and Equipment	274	376	10	13	18	27	187	331
Transportation and Communication	183	105	16	21	20	24	90	86
Impact of Broader Public Sector Organizations on Provincial Expenses (Schedule 10)	(976)	(521)	(231)	(15)	–	–	–	–
Other	54	150	18	25	19	139	3,379	302
Total	43,164	40,739	20,592	19,676	13,054	12,065	12,274	7,186
1 The information in the sectors columns represents activities of ministries and consolidated agencies after 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, Consumer Services, Culture, Economic Development and Trade, Energy and Infrastructure (Energy programs), Environment, Labour, Municipal Affairs and Housing, Natural Resources, Northern Development and Mines, Research and Innovation, Tourism, Transportation, and Auto Sector expense.

Post-Secondary Education and Training6		Justice7		General Government and Other8		Interest on Debt9		Total
2010	2009	2010	2009	2010	2009	2010	2009	2010	2009
7,208	6,069	292	294	1,756	1,280	–	–	88,674	80,060
–	–	–	–	–	–	8,719	8,566	8,719	8,566
97	87	1,969	1,875	1,010	961	–	–	5,739	5,515
40	62	787	832	108	149	–	–	3,184	3,260
–	–	17	17	1,225	1,120	–	–	1,496	1,214
–	–	–	–	1,409	953	–	–	1,409	953
–	–	4	4	117	99	–	–	1,085	988
14	12	251	238	40	60	–	–	780	725
3	5	168	198	75	78	–	–	735	1,028
5	7	83	78	17	80	–	–	414	401
(372)	(191)	–	–	–	–	–	–	(1,579)	(727)
43	30	213	252	673	461	–	–	4,399	1,359
7,038	6,081	3,784	3,788	6,430	5,241	8,719	8,566	115,055	103,342
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 Auto Sector 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.

Province of Ontario
Schedule 4: Expenses by Ministry
($ Millions)	2009–10	2009–10	2008–09
	Budget1	Actual	Actual
Aboriginal Affairs	71	67	55
Agriculture, Food and Rural Affairs	1,280	1,910	890
Attorney General	1,651	1,583	1,667
Board of Internal Economy	173	187	188
Children and Youth Services	4,407	4,430	4,069
Citizenship and Immigration	107	101	89
Community and Social Services	8,327	8,624	7,996
Community Safety and Correctional Services	2,260	2,201	2,121
Consumer Services	55	57	58
Culture	477	466	381
Economic Development and Trade	429	223	245
Education	20,655	20,337	19,626
Teachers' Pension (Note 7)	259	255	50
Energy and Infrastructure	3,599	292	251
Environment	367	398	433
Executive Offices	36	34	35
Finance	683	549	755
Auto Sector	–	3,022	–
Contingency Fund	3,210	–	–
Interest on Debt	9,301	8,719	8,566
Municipal Partnership Fund	783	781	905
Pension Benefit Guarantee Fund	–	500	–
Power Supply Contract Costs (Note 8)	964	1,409	953
Government Services	1,281	1,106	939
Public Service/OPSEU Pension and Other		949	971
Employee Future Benefits (Note 7)	932
Health and Long-Term Care	42,165	42,735	40,357
Health Promotion	396	429	382
Labour	174	179	177
Municipal Affairs and Housing	1,056	1,279	756
Natural Resources	788	768	780
Northern Development and Mines	378	524	486
Office of Francophone Affairs	5	5	5
Research and Innovation	503	338	295
Revenue	821	1,071	557
Tourism	216	202	185
Training, Colleges and Universities	6,576	7,038	6,081
Transportation	2,113	2,287	2,038
Year-End Savings2	(1,150)	–	–
Total Expenses	115,348	115,055	103,342
1 Amounts reported as "Plan" in 2009 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	2010	2009
($ Millions)
Transfer Payments	4,746	3,620
Interest on Debt	3,460	3,331
Salaries, Wages and Benefits	2,163	2,179
Liability for CRA1 Overpayment	532	665
Other	6,667	7,534
Total Accounts Payable and Accrued Liabilities	17,568	17,329
1 CRA – Canada Revenue Agency.

Province of Ontario
Schedule 6: Accounts Receivable
As at March 31	2010	2009
($ Millions)
Taxes	5,617	3,324
Transfer Payments1	1,016	1,244
Other Accounts Receivable	2,029	2,312
	8,662	6,880
Less: Allowance for Doubtful Accounts2	(1,786)	(1,992)
	6,876	4,888
Government of Canada	1,560	1,366
Total Accounts Receivable	8,436	6,254
1 The transfer payment receivable consists primarily of recoverables of $725 million (2009, $900 million) for the Ontario Disability Support Program – Financial Assistance.
2 The allowance for doubtful accounts includes a provision of $640 million (2009, $819 million) for the Ontario Disability Support Program – Financial Assistance.

Province of Ontario
Schedule 7: Loans Receivable
As at March 31	2010	2009
($ Millions)
Government Business Enterprises1	3,912	3,881
Students2	2,277	2,342
Municipalities3	2,550	1,964
Pension Benefit Guarantee Fund4	264	275
Industrial and Commercial5	415	362
Universities6	127	160
Other	61	60
	9,606	9,044
Unamortized Concession Discounts7	(383)	(398)
Allowance for Doubtful Accounts8	(1,083)	(1,276)
Total Loans Receivable	8,140	7,370
1 Loans to government business enterprises bear interest at rates of 2.40 per cent to 6.65 per cent (2009, 3.22 per cent to 6.65 per cent).
2 Loans to students bear interest at rates of 2.25 per cent to 2.50 per cent (2009, 4.00 per cent to 6.25 per cent).
3 Loans to municipalities bear interest at rates up to 8.00 per cent (2009, 8.00 per cent).
4 The loan to the Pension Benefit Guarantee Fund is interest-free.
5 Loans to industrial and commercial enterprises bear interest at rates up to 7.95 per cent, which are fully provided for in the allowance for doubtful accounts.
6 Loans to universities are mortgages bearing interest at rates of 5.88 per cent to 11.04 per cent (2009, 5.85 per cent to 10.81 per cent).
7 Unamortized concession discounts are related to loans to municipalities of $123 million (2009, $132 million), loans to the Pension Benefit Guarantee Fund of $129 million (2009, $135 million), and loans to industrial and commercial enterprises of $131 million (2009, $131 million).
8 Allowance for doubtful accounts is related to loans to students of $759 million (2009, $956 million), municipalities of $158 million (2009, $158 million), industrial and commercial enterprises and other of $32 million (2009, $24 million), and the Pension Benefit Guarantee Fund of $135 million (2009, $140 million).

Repayment Terms		Principal Repayment
		($ Millions)
Years to Maturity		2010	2009
1 year		1,623	1,826
2 years		434	874
3 years		626	357
4 years		514	554
5 years		617	131
1–5 years		3,814	3,742
6–10 years		1,576	2,243
11–15 years		572	176
16–20 years		1,246	802
21–25 years		394	294
Over 25 years		134	145
Subtotal		7,736	7,402
No fixed maturity		1,870	1,642
Total		9,606	9,044

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	Finance
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
eHealth	Health and Long-Term Care
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
Metrolinx	Transportation
Metropolitan Toronto Convention Centre	Tourism
Northern Ontario Heritage Fund Corporation	Northern Development and Mines
Ontario Agency for Health Protection and Promotion	Health and Long-Term Care
Ontario Capital Growth Corporation	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	Economic Development and Trade
Ontario Infrastructure Projects Corporation (Infrastructure Ontario)	Energy and Infrastructure
Ontario Mortgage and Housing Corporation	Municipal Affairs and Housing
Ontario Northland Transportation Commission	Northern Development and Mines
1 The most recent audited financial statements of these organizations are included in Volume 2, Public Accounts of Ontario.

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	Finance
Ontario Realty Corporation	Energy and Infrastructure
Ontario Science Centre	Culture
Ontario Securities Commission	Finance
Ontario Student Loan Trust	Training, Colleges and Universities
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	Grey Bruce Health Services
Alexandra Marine & General Hospital	Groves Memorial Community Hospital
Almonte General Hospital	Guelph General Hospital
Anson General Hospital	Haldimand War Memorial Hospital
Arnprior and District Memorial Hospital	Haliburton Highlands Health Services Corporation
Atikokan General Hospital	Halton Healthcare Services Corporation
Baycrest Centre for Geriatric Care	Hamilton Health Sciences Corporation
Bingham Memorial Hospital	Hanover & District Hospital
Blind River District Health Centre	Headwaters Health Care Centre
Bloorview Kids Rehab	Hôpital Général de Hawkesbury and District General Hospital Inc.
Bluewater Health	Hôpital Glengarry Memorial Hospital
Brant Community Healthcare System	Hôpital Montfort
Bridgepoint Hospital	Hôpital Notre Dame Hospital
Brockville General Hospital	Hôpital régional de Sudbury Regional Hospital
Bruyere Continuing Care	Hornepayne Community Hospital
Cambridge Memorial Hospital	Hospital for Sick Children
Campbellford Memorial Hospital	Hôtel-Dieu Grace Hospital
Carleton Place and District Memorial Hospital	Hôtel-Dieu Hospital, Cornwall
Casey House Hospice	Humber River Regional Hospital
Chatham-Kent Health Alliance	James Bay General Hospital
Children's Hospital of Eastern Ontario	Joseph Brant Memorial Hospital
Clinton Public Hospital	Kemptville District Hospital
Collingwood General and Marine Hospital	Kingston General Hospital
Cornwall Community Hospital	Kirkland and District Hospital
Credit Valley Hospital	Lady Dunn Health Centre
Deep River and District Hospital Corporation	Lady Minto Hospital at Cochrane
Dryden Regional Health Centre	Lake of the Woods District Hospital
Englehart and District Hospital	Lakeridge Health Corporation
Espanola General Hospital	Leamington District Memorial Hospital
Four Counties Health Services	Lennox and Addington County General Hospital
Georgian Bay General Hospital	Listowel Memorial Hospital
Geraldton District Hospital	London Health Sciences Centre
Grand River Hospital

Province of Ontario
Schedule 8: Government Organizations
Public Hospitals – Ministry of Health and Long-Term Care (cont'd)
Manitoulin Health Centre	South Huron Hospital Association
Manitouwadge General Hospital	Southlake Regional Health Centre
Markham Stouffville Hospital	St. Francis Memorial Hospital
Mattawa General Hospital	St. John's Rehabilitation Hospital
McCausland Hospital	St. Joseph's Care Group
Mount Sinai Hospital	St. Joseph's Continuing Care (Sudbury)
Muskoka Algonquin Healthcare	St. Joseph's General Hospital, Elliot Lake
Niagara Health System	St. Joseph's Health Care, London
Nipigon District Memorial Hospital	St. Joseph's Health Centre (Guelph)
Norfolk General Hospital	St. Joseph's Health Centre (Toronto)
North Bay General Hospital	St. Joseph's Healthcare Hamilton
North Wellington Health Care Corporation	St. Mary's General Hospital
North York General Hospital	St. Mary's Memorial Hospital
Northumberland Hills Hospital	St. Michael's Hospital
Orillia Soldiers' Memorial Hospital	St. Thomas - Elgin General Hospital
Ottawa Hospital	Stevenson Memorial Hospital
Pembroke Regional Hospital Inc.	Stratford General Hospital
Penetanguishene General Hospital Inc.	Strathroy Middlesex General Hospital
Perth and Smiths Falls District Hospital	Sunnybrook Health Sciences Centre
Peterborough Regional Health Centre	Temiskaming Hospital
Providence Care Centre (Kingston)	Thunder Bay Regional Health Sciences Centre
Providence Healthcare	Tillsonburg District Memorial Hospital
Queensway-Carleton Hospital	Timmins and District Hospital
Quinte Healthcare Corporation	Toronto East General Hospital
Red Lake Margaret Cochenour Memorial Hospital	Toronto Rehabilitation Institute
Religious Hospitallers of St. Joseph of the Hôtel Dieu of Kingston	Trillium Health Centre
Religious Hospitallers of St. Joseph of the Hotel Dieu of St. Catharines	University Health Network
Renfrew Victoria Hospital	University of Ottawa Heart Institute
Riverside Health Care Facilities Inc.	West Haldimand General Hospital
Ross Memorial Hospital	West Lincoln Memorial Hospital
Rouge Valley Health System	West Nipissing General Hospital
Royal Victoria Hospital of Barrie Inc.	West Park Healthcare Centre
Runnymede Healthcare Centre	West Parry Sound Health Centre
Salvation Army Toronto Grace Hospital	William Osler Health Centre
Sault Area Hospital	Wilson Memorial General Hospital
Scarborough Hospital	Winchester District Memorial Hospital
Seaforth Community Hospital	Windsor Regional Hospital
Sensenbrenner Hospital	Wingham and District Hospital
Services de santé de Chapleau Health Services	Women's College Hospital
Sioux Lookout Meno-Ya-Win Health Centre	Woodstock General Hospital
Smooth Rock Falls Hospital	York Central Hospital
South Bruce Grey Health Centre

Province of Ontario
Schedule 8: Government Organizations
Specialty Psychiatric Hospitals – Ministry of Health and Long-Term Care
Centre for Addiction and Mental Health	Ontario Shores Centre for Mental Health
Mental Health Centre Penetanguishene	Royal Ottawa Health Care Group
Northeast Mental Health Centre
School Boards – Ministry of Education
Airy and Sabine District School Area Board	Hamilton-Wentworth Catholic District School Board
Algoma District School Board	Hamilton-Wentworth District School Board
Algonquin and Lakeshore Catholic District School Board	Hastings and Prince Edward District School Board
Asquith-Garvey District School Area Board	Hornepayne Roman Catholic Separate School Board
Atikokan Roman Catholic Separate School Board	Huron-Perth Catholic District School Board
Avon Maitland District School Board	Huron-Superior Catholic District School Board
Bloorview MacMillan School Authority	James Bay Lowlands Secondary School Board
Bluewater District School Board	John McGivney Children's Centre School Authority
Brant Haldimand Norfolk Catholic District School Board	Kawartha Pine Ridge District School Board
Bruce-Grey Catholic District School Board	Keewatin-Patricia District School Board
Campbell Children's School Authority	Kenora Catholic District School Board
Caramat District School Area Board	KidsAbility School Authority
Catholic District School Board of Eastern Ontario	Lakehead District School Board
Collins District School Area Board	Lambton Kent District School Board
Connell and Ponsford District School Area Board	Limestone District School Board
Conseil des écoles publiques de l'Est de l'Ontario	London District Catholic School Board
Conseil scolaire de district catholique Centre-Sud	Missarenda District School Area Board
Conseil scolaire de district catholique de l'Est ontarien	Moose Factory Island District School Area Board
Conseil scolaire de district catholique des Aurores boréales	Moosonee District School Area Board
Conseil scolaire de district catholique des Grandes Rivières	Moosonee Roman Catholic Separate School Board
Conseil scolaire de district catholique du Centre-Est de l'Ontario	Murchison and Lyell District School Area Board
Conseil scolaire de district catholique du Nouvel-Ontario	Nakina District School Area Board
Conseil scolaire de district catholique Franco-Nord	Near North District School Board
Conseil scolaire de district des écoles catholiques du Sud-Ouest	Niagara Catholic District School Board
Conseil scolaire de district du Centre Sud-Ouest	Niagara Peninsula Children's Centre School Authority
Conseil scolaire de district du Grand Nord de l'Ontario	Nipissing-Parry Sound Catholic District School Board
Conseil scolaire de district du Nord-Est de l'Ontario	Northeastern Catholic District School Board
District School Board of Niagara	Northern District School Area Board
District School Board Ontario North East	Northwest Catholic District School Board
Dubreuilville Roman Catholic Separate School Board	Ottawa Catholic District School Board
Dufferin-Peel Catholic District School Board	Ottawa Children's Treatment Centre School Authority
Durham Catholic District School Board	Ottawa-Carleton District School Board
Durham District School Board	Parry Sound Roman Catholic Separate School Board
Foleyet District School Area Board	Peel District School Board
Foleyet Roman Catholic Separate School Board	Penetanguishene Protestant Separate School Board
Gogama District School Area Board	Peterborough Victoria Northumberland and
Gogama Roman Catholic Separate School Board	Clarington Catholic District School Board
Grand Erie District School Board	Rainbow District School Board
Greater Essex County District School Board	Rainy River District School Board
Halton Catholic District School Board	Red Lake Area Combined Roman Catholic Separate School Board
Halton District School Board
Province of Ontario
Schedule 8: Government Organizations
School Boards – Ministry of Education (cont'd)
Renfrew County Catholic District School Board	Toronto District School Board
Renfrew County District School Board	Trillium Lakelands District School Board
Simcoe County District School Board	Upper Canada District School Board
Simcoe Muskoka Catholic District School Board	Upper Grand District School Board
St. Clair Catholic District School Board	Upsala District School Area Board
Sudbury Catholic District School Board	Waterloo Catholic District School Board
Superior North Catholic District School Board	Waterloo Region District School Board
Superior-Greenstone District School Board	Wellington Catholic District School Board
Thames Valley District School Board	Windsor-Essex Catholic District School Board
Thunder Bay Catholic District School Board	York Catholic District School Board
Toronto Catholic District School Board	York Region District School Board
Colleges – Ministry of Training, Colleges and Universities
Algonquin College of Applied Arts and Technology	Lambton College of Applied Arts and Technology
Cambrian College of Applied Arts and Technology	Le collège d'arts appliqués et de technologie la Cité collégiale
Canadore College of Applied Arts and Technology	Loyalist College of Applied Arts and Technology
Centennial College of Applied Arts and Technology	Mohawk College of Applied Arts and Technology
Collège Boréal d'arts appliqués et de technologie	Niagara College of Applied Arts and Technology
Conestoga College Institute of Technology and Advanced Learning	Northern College of Applied Arts and Technology
Confederation College of Applied Arts and Technology	Sault College of Applied Arts and Technology
Durham College of Applied Arts and Technology	Seneca College of Applied Arts and Technology
Fanshawe College of Applied Arts and Technology	Sheridan College Institute of Technology and Advanced Learning
George Brown College of Applied Arts and Technology	Sir Sandford Fleming College of Applied Arts and Technology
Georgian College of Applied Arts and Technology	St. Clair College of Applied Arts and Technology
Humber College Institute of Technology and Advanced Learning	St. Lawrence College of Applied Arts and Technology

Province of Ontario
Schedule 9: Government Business Enterprises
Summary financial information of Government Business Enterprises is provided below.
For the year ended March 31, 2010 ($ Millions)	Algonquin Forestry Authority	Hydro One Inc.	Liquor Control Board of Ontario	Niagara Parks Commission
Assets
Cash and Temporary Investments	3	647	218	–
Accounts Receivable	6	851	24	–
Inventories	1	22	344	8
Prepaid Expenses	–	–	14	–
Long-Term Investments	–	249	–	–
Fixed Assets	–	13,412	294	152
Other Assets	–	1,768	–	–
Total Assets	10	16,949	894	160
Liabilities
Bank Indebtedness	–	20	–	5
Accounts Payable	2	874	442	3
Notes Payable	–	–	–	–
Deferred Revenue	–	–	–	–
Long-Term Debt	–	7,882	72	36
Other Liabilities	1	2,589	–	31
Total Liabilities	3	11,365	514	75
Net Assets	7	5,584	380	85
Revenue	19	4,761	4,349	73
Expenses	19	4,298	2,909	99
Net Income (Loss)	–	463	1,440	(26)
Net Assets at Beginning of Year	7	5,215	350	111
Increase in Fair Value of Ontario Nuclear	–	–	–	–
Funds (Note 11)
Remittances (to) Consolidated Revenue Fund	–	(94)	(1,410)	–
Net Assets	7	5,584	380	85

Ontario Clean Water Agency	Ontario Lottery and Gaming Corporation	Ontario Power Generation Inc.	Total
62	715	158	1,803
19	78	306	1,284
–	30	896	1,301
2	33	72	121
5	–	–	254
5	2,490	13,177	29,530
120	34	13,716	15,638
213	3,380	28,325	49,931
–	–	–	25
16	420	1,351	3,108
–	–	–	–
–	16	147	163
10	188	4,092	12,280
–	209	14,964	17,794
26	833	20,554	33,370
187	2,547	7,771	16,561
148	6,336	5,612	21,298
145	4,412	5,221	17,103
3	1,924	391	4,195
184	2,498	6,290	14,655
–	–	1,090	1,090
–	(1,875)	–	(3,379)
187	2,547	7,771	16,561

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, 2010	Hospitals	School Boards	Colleges	Total
($ Millions)
Expense
Salaries, Wages and Benefits	15,671	16,367	1,945	33,983
Amortization Expense	1,166	780	181	2,127
Interest Expense1	1	368	31	400
Other Expense	5,863	3,633	984	10,480
Fees, Donations and Other Recoveries	(3,464)	(1,270)	(1,565)	(6,299)
Total Sector Expense	19,237	19,878	1,576	40,691
Transfers from the Province	(20,213)	(20,109)	(1,948)	(42,270)
Impact on Provincial Expense – (Decrease)	(976)	(231)	(372)	(1,579)
1 Interest revenue is netted with Interest expense.

Glossary

Note: The descriptions of the terms in the glossary are provided for the purpose of assisting readers of the 2009–10 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 statement 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 will ultimately be resolved when one or more future events not wholly within the government's control occur or fail 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. The non-financial assets of the Province are tangible capital assets.

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.

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.

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, vehicles, leased assets, machinery, furniture, equipment and information technology infrastructure and systems, and construction in progress.

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 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.

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.

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.

Ontario Economic Accounts

This quarterly report contains data on Ontario’s economic activity.