Public Accounts 2022–23: Consolidated financial statements

Independent auditor’s report

To the members of the legislative assembly of the province of Ontario

Opinion

I have audited the accompanying Consolidated Financial Statements of the Province of Ontario, which comprise the Consolidated Statement of Financial Position as at March 31, 2023, and the Consolidated Statements of Operations, Change in Net Debt, Change in Accumulated Operating Deficit, Remeasurement Gains and Losses and Cash Flow for the year then ended, and notes to the Consolidated Financial Statements, including a summary of significant accounting policies.
In my opinion, the accompanying Consolidated Financial Statements present fairly, in all material respects, the consolidated financial position of the Province of Ontario as at March 31, 2023, and the consolidated results of its operations, the consolidated changes in its net debt, the consolidated change in its accumulated operating deficit, the consolidated remeasurement gains and losses and its consolidated cash flows for the year then ended in accordance with Canadian public sector accounting standards.

Basis for opinion

I conducted my audit in accordance with Canadian generally accepted auditing standards. My responsibilities under those standards are further described in the Auditor's Responsibility for the Audit of the Consolidated Financial Statements section of this report. I am independent of the Province of Ontario in accordance with the ethical requirements that are relevant to my audit of the Consolidated Financial Statements in Canada, and I have fulfilled my other ethical responsibilities in accordance with these requirements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Key audit matters

Key audit matters are those matters that, in my professional judgment, were of most significance in my audit of the Consolidated Financial Statements of the Province of Ontario for the year ended March 31, 2023.

These matters were addressed in the context of my audit of the Consolidated Financial Statements as a whole, and in forming my opinion thereon, and I do not provide a separate opinion on these matters.
The Key Audit Matters are as follows:

Other accompanying information

The Government of Ontario is responsible for the information in the 2022–23 Public Accounts of Ontario Annual Report.

My opinion on the Consolidated Financial Statements does not cover the other information accompanying the Consolidated Financial Statements and I do not express any form of assurance conclusion thereon.

In connection with my audit of the Consolidated Financial Statements, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the Consolidated Financial Statements or my knowledge obtained during the audit, or otherwise appears to be materially misstated.

If, based on the work I have performed on this other information, I conclude that there is a material misstatement of this other information, I am required to report that fact in this auditor’s report. I have nothing to report in this regard.

Responsibilities of management and those charged with governance for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of these Consolidated Financial Statements in accordance with Canadian public sector accounting standards, and for such internal controls as management determines is necessary to enable the preparation of Consolidated Financial Statements that are free from material misstatement, whether due to fraud or error.

In preparing the Consolidated Financial Statements, management is responsible for assessing the Province of Ontario’s ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless the Government either intends to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Province of Ontario’s financial reporting process.

Auditor’s responsibility for the audit of the Consolidated Financial Statements

My objectives are to obtain reasonable assurance about whether the Consolidated Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Consolidated Financial Statements.

As part of an audit in accordance with Canadian generally accepted auditing standards, I exercise professional judgment and maintain professional skepticism throughout the audit. I also:

• Identify and assess the risks of material misstatement of the Consolidated Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Province of Ontario’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Province of Ontario’s ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the Consolidated Financial Statements or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my auditor’s report. However, future events or conditions could cause the Province of Ontario to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the Consolidated Financial Statements, including the disclosures, and whether the Consolidated Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation.

The audit of the Consolidated Financial Statements is a group audit engagement. As such, I also obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the Consolidated Financial Statements. I am responsible for the direction, supervision and performance of the group audit and I remain solely responsible for my audit opinion.

I communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control identified during the audit.

I also provide those charged with governance with a statement that I have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on my independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, I determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. I describe these matters in my auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

See accompanying Notes and Schedules to the Consolidated Financial Statements.

For additional information, see Contingent Liabilities, Contingent Assets (Note 11) and Contractual Obligations, Contractual Rights (Note 12).

See accompanying Notes and Schedules to the Consolidated Financial Statements.

See accompanying Notes and Schedules to the Consolidated Financial Statements

See accompanying Notes and Schedules to the Consolidated Financial Statements

See accompanying Notes and Schedules to the Consolidated Financial Statements.

See accompanying Notes and Schedules to the Consolidated Financial Statements.

Notes to the Consolidated Financial Statements

1. Summary of significant accounting policies

(a) Basis of accounting

The Consolidated Financial Statements are prepared by the government of Ontario in accordance with the public sector accounting standards (PSAS) for governments recommended by the Public Sector Accounting Board (PSAB).

(b) 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 (GBEs), broader public sector (BPS) organizations (i.e., hospitals, school boards, colleges and children’s aid societies) and other government organizations controlled by the Province are included in these financial statements. Controlled organizations are consolidated if the organizations are reasonably expected to meet and maintain 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. In accordance with public sector accounting standards, the Province also applies the “benefit versus cost constraint” in determining which organizations should be consolidated in Ontario’s financial statements. For those organizations that do not meet the PSAS benefit versus cost constraint standard, government transfer payments to these organizations are included as expenses in these financial statements through the accounts of the ministries responsible for them. A listing of consolidated government organizations is provided in Schedule 8.

Trusts administered by the Province on behalf of other parties are excluded from the reporting entity but are disclosed in Note 13.

(c) Principles of consolidation

Government organizations, including hospitals, school boards, colleges and children’s aid societies (collectively known as BPS organizations) as well as other government organizations controlled by Ontario are consolidated on a line-by-line basis with the assets, liabilities, revenues and expenses of Ontario based on the percentage of ownership the government held during the fiscal year. Where appropriate, 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.

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 obligations from revenues generated outside the government reporting entity.

The activities of GBEs are recorded in the financial statements based on their results prepared in accordance with International Financial Reporting Standards (IFRS) using the modified equity method. Their combined net assets are included in the financial statements as Investment in Government Business Enterprises on the Consolidated Statement of Financial Position, and their net income is shown as a separate item, Income from Investment in Government Business Enterprises on the Consolidated Statement of Operations. Less than wholly-owned GBEs (e.g., Hydro One Limited) are reflected using the modified equity method based on the percentage of ownership the government held during the fiscal year.

(d) Measurement uncertainty

The preparation of financial statements requires the Ontario government to make estimates and assumptions that affect the amounts of assets, liabilities, revenues and expenses during the reporting period. Uncertainty in the determination of the amounts at which an item is recognized or disclosed in the financial statements is known as measurement uncertainty. COVID‑19 has added additional uncertainty to the measurement of many estimated amounts recorded in these statements, as described below.

Measurement uncertainty that is material to these financial statements exists in the valuation of pensions and other employee future benefits obligations; the value of tangible capital assets; the estimation of Personal Income Tax (PIT), Corporations Tax and Sales Taxes revenues; the valuation of the Canada Health Transfer, Canada Social Transfer and Equalization Payment entitlements; the value of derivatives; the estimation of liabilities for contaminated sites, asset retirement obligations, land claim settlements and other liabilities.

Pension and other employee future benefits liability of $14.1 billion (2021–22, $14.4 billion, see Note 6), are subject to measurement uncertainty because actual results may differ significantly from Ontario’s best long-term 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 may be significant.

The net book value of tangible capital assets of $150.4 billion (2021–22, $141.6 billion, see Note 9), is subject to uncertainty because of differences between estimated useful lives of the assets and their actual useful lives.

The PIT revenue estimate of $44.2 billion (2021–22, $46.8 billion, see Schedule 1), may be subject to subsequent revisions based on information available in the future related to past year tax return processing. Sales Tax revenues of $36.1 billion (2021–22, $30.4 billion, see Schedule 1), is also subject to uncertainty for similar reasons. The impact of COVID‑19 on the provincial economy, and potential implications for tax filing and tax return processing, increases the uncertainty related to estimates of these revenues in 2022–23.

The Corporations Tax revenue estimate of $27.8 billion (2021–22, $25.2 billion, see Schedule 1) is based on amounts of tax assessed to June 30, 2023. Final amounts of taxes assessed may differ significantly from these estimates. The methodology of calculating Corporations Tax is back–tested and the estimate will be revised as necessary. Final amounts of taxes assessed may differ significantly from these estimates. In response to the economic impact of COVID‑19 on the provincial economy, the historic level of federal and provincial funding in the form of direct taxable transfers to individuals and businesses increased the uncertainty inherent in estimating Corporations Tax in 2022–23.

The estimation of the Canada Health Transfer of $17.5 billion (2021–22, $16.7 billion, see Schedule 1) and Canada Social Transfer of $6.2 billion (2021–22, $6.0 billion, see Schedule 1), are subject to uncertainty because of variances between the estimated and actual Ontario share of the Canada-wide population.

Derivative instrument fair values of $4.6 billion in assets and $7.7 billion in liabilities, (see Note 3), are subject to measurement uncertainty due to variances between projected and actual market performance and economic conditions. The fair value of financial instruments is determined by valuation techniques discussed in the Financial Instruments Fair Value Hierarchy section in Note 1(e).

There is measurement uncertainty surrounding the estimation of liabilities for contaminated sites of $ 1.9 billion (2021–22, $1.8 billion, see Note 7). The Ontario government may be responsible for cleanup costs that cannot be reasonably estimated due to several factors, including insufficient information related to the nature and extent of contamination, timing of costs well into the future (e.g., unknown impacts of future technological advancements) and the challenges of remote locations and unique contaminations.

There is measurement uncertainty surrounding the estimate of liabilities for contingent liabilities, including estimates for Aboriginal treaty rights and land claim settlements. Estimates for these liabilities are recorded when the contingency is determined to be likely and measurable, however the actual amount of any settlement may vary from the estimate recorded.

There is measurement uncertainty surrounding the estimation of liabilities for asset retirement obligations (including solid waste landfills) of $4.1 billion (2021–22, $3.8 billion, see Note 7). These estimates are subject to uncertainty due to several factors including but not limited to insufficient information on the type and extent of designated substances (e.g., asbestos), indeterminate timing of settlement, and the impact of project design on costs.

The Province’s investment in Ontario Power Generation (OPG) includes asset retirement obligations for fixed asset removal and nuclear waste management, discounted for the time value of money. These obligations are estimated based on the expected amount and timing of future cash expenditures based on plans for fixed asset removal and nuclear waste management. Such estimates are subject to uncertainty in the nature and extent of cost estimates, the timing of costs being incurred, changes in the discount rate applied to the cash flow estimates, and other unanticipated changes in fixed asset removal and nuclear waste management techniques.

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. By their very nature, estimates are subject to measurement uncertainty. Therefore, actual results may differ materially from the Province’s estimates.

(e) Significant accounting policies

Revenue

Tax revenues are recognized in the period in which the taxable event occurs and when they are authorized by legislation, or the ability to assess and collect the tax has been provided through legislative convention. Reported tax revenues include estimated revenues for the current period, adjustments between the estimated revenues of previous years and actual amounts, and revenues from reassessments relating to prior years. Reported amounts do not include estimates of some unreported taxes or the impact of future reassessments.

PIT revenue for the period is accrued based on an estimate of current year tax assessments (plus late-arriving assessments/reassessments for prior years) prorated from the federal Department of Finance’s Tax Sharing Statements and an estimate for the following tax year based on the First Estimate of Payments.

The HST component of sales tax revenue is collected by the Government of Canada under a Comprehensive Integrated Tax Coordination Agreement and is remitted to Ontario net of credits. The remittances are based on the federal Department of Finance’s best estimates, which are subject to periodic updates. Ontario recognizes HST revenues based on these federal estimates.

Accrued Corporations Tax revenue for the period is based on estimated corporate income tax payable gross of refundable tax credits for the year. The estimate is based on amounts of Corporations Tax assessed to June 30.

Section PS 3510, Tax Revenue distinguishes between tax concessions (relief of taxes paid), which are accounted for as revenue offsets, and transfers made through the tax system (financial benefits independent of taxes paid) which are reported as expenses.

Refundable personal and corporate income tax credits constitute transfers made through the tax system that are reclassified as expenses to conform to public sector accounting standards. To ensure that the reclassification is fiscally neutral, a corresponding increase is made to PIT revenue and Corporations Tax revenue. Non-refundable PIT and Corporations Tax credits constitute tax concessions (relief of taxes paid), which are accounted for as revenue offsets by crediting the related tax revenue.

Transfers from the Government of Canada are recognized as revenues in the period during which the transfer is authorized by the federal government and all eligibility criteria are met, except if the stipulations related to federal government funding create an obligation that meet the definition of a liability. Once a liability is recognized, the transfer is recorded in revenue as the obligations related to these stipulations are met.

Other 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 that will be earned in a subsequent fiscal year are deferred and reported as liabilities (see Liabilities).

Expense

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 that the transfer is authorized, and all eligibility criteria have been met by the recipient. Any transfers paid in advance are deemed to have met all eligibility criteria.

Interest on debt includes: i) interest on outstanding debt (including BPS debt) net of interest income on investments and loans; ii) realized foreign exchange gains and losses; iii) amortization of debt discounts, premiums and commissions; iv) unrealized foreign exchange gains and losses elected under Section PS 2601, Foreign Currency Translation, paragraph 19A; and v) debt servicing costs 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 employee benefits, interest on the net benefits’ liability or asset, amortization of actuarial gains or losses, cost/gain on plan amendments and other adjustments.

Other employee future benefits are recognized in the period in which the event that obligates the government occurs or in the period in which the benefits are earned by employees.

The costs of buildings, transportation infrastructure, vehicles, aircraft, leased capital assets, machinery, as well as equipment and information technology infrastructure and systems owned by Ontario 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 Province 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: accounts payable and accrued liabilities; derivative liabilities; present obligations for environmental costs; asset retirement obligations; solid waste landfill closure and post-closure 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 GBEs.

Deferred revenue represents unspent externally restricted receipts from the federal government or other third parties. Deferred revenues are recorded into revenue in the period in which the amounts received are used for the purposes specified or all external restrictions are satisfied. Deferred capital contributions represent the unamortized amount of contributions received from the federal government and other third parties to construct or acquire tangible capital assets. These contributions are recognized as deferred capital contributions and recorded into revenue over the useful life of the tangible capital assets based on the relevant stipulations of the contributions taken together with the actions and communications of the Province.

Public Private Partnership (P3) refers to Ontario using private-sector partners to procure and finance infrastructure assets. Assets procured via P3s are recognized as tangible capital assets, and the related obligations are recognized as other long-term financing liabilities in the financial statements as the assets are constructed.

The Province records asset retirement obligations when there is a legal obligation to incur retirement costs in relation to a tangible capital asset that results from the acquisition, construction, development, or normal use of a tangible capital asset. Such obligations result from existing legislation, agreements or contracts, or other legally enforceable obligations. The estimate of the liability includes costs directly attributable to retirement activities required to settle the liability, including post-retirement operation, maintenance, and monitoring costs that are required. When recording the liability, the estimated cost and subsequent changes to the estimate, are included in the associated asset’s cost, and amortized over the asset’s estimated useful life. For unrecognized tangible capital assets, these costs are expensed. The Province discounts significant obligations that have reliable cash flow projections, otherwise the liability is measured at current costs.

Debt

Debt consists of treasury bills, commercial paper, medium- and long-term notes, savings bonds, debentures and loans, excluding instruments held by the Province. Debt is measured at amortized cost. Occasionally, Ontario purchases its own debt for a variety of reasons, including for cash management purposes as well for reducing stress to the Canadian payment system especially in fiscal years where there are large single-day maturities.

Derivatives

Derivatives are financial contracts, the values of which are derived from underlying instruments. The Province uses derivatives for the purpose of economically managing risk associated with interest cost on debt. The Province does not use derivatives for speculative purposes. Derivative assets and liabilities are measured at fair value.

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, including where applicable, the government’s borrowing rate. When actual plan experience of pensions, other retirement benefits and termination pay differs from what is expected, or when assumptions are revised, actuarial gains and losses may arise. These gains and losses are amortized over the expected average remaining service life of plan members for each respective plan.

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 employee benefits attributed to services rendered by employees and former employees, less its share of the market-related value of plan assets. The market-related values are determined in a rational and systematic manner in order to recognize market value asset gains and losses over a period of up to five years. In addition, the liability includes the Province’s share of the unamortized balance of actuarial gains or losses.

Assets

Assets are resources controlled by the government from which it has reasonable expectation of deriving future benefit. Assets are recognized in the year the transaction or event gives rise to the government’s control of the benefit.

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, derivative assets, advances and investments in GBEs.

Cash and cash equivalents include cash or other short-term, liquid, low-risk instruments that are readily convertible to cash, typically within three months or less. Cash and cash equivalents are measured at cost or amortized cost.

Investments include temporary investments and other investments, primarily consist of portfolio investments including investments in non-Ontario government bonds, Guaranteed Investment Certificates, fixed income securities, other bonds and Pooled Portfolio Investments. Investments in government bonds, and assets purchased and sold under resale agreements are measured at amortized cost. When there is a loss in value of a portfolio investment that is other than a temporary decline, the investment is written down and an impairment loss is recognized in the Consolidated Statement of Operations. Impairment losses on portfolio investments are not reversed if there is a subsequent increase in investment value.

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

Loans receivable are initially recorded at amortized cost. A valuation allowance is recorded when collection of the loans receivable, or any part thereof, is considered doubtful. Loans receivable include loans to GBEs, municipalities, as well as loans under the student loans program. 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 or when the concession is provided. The amount of the loan discount is amortized to revenue over the term of the loan.

Investment in GBEs represents the net assets of GBEs recorded on the modified equity basis as described under Principles of Consolidation.

Financial instruments fair value hierarchy

Financial instruments measured at fair value are grouped into one of three levels based on the degree to which the fair value is observable. The hierarchy is as follows:

• Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities;
• Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and
• Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).

The fair value of financial instruments not quoted in an active market is determined by appropriate valuation techniques, including forward pricing and swap models, using present value calculations. The models incorporate various inputs including forward interest rate curves.

Realized gains and losses arising from changes in the fair value of financial instruments are recognized in the Consolidated Statement of Operations. Any unrealized gains and losses arising from changes in the fair value of financial instruments are recognized in the Consolidated Statement of Remeasurement Gains and Losses, except where an irrevocable election under Section PS 2601.19A has been made to recognize the unrealized exchange gains and losses on selected foreign currency denominated instruments (or component of) in the Consolidated Statement of Operations.

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, as well as the estimated cost to settle liabilities for asset retirement obligations. Cost includes overheads directly attributable to construction and development, as well as interest cost related to financing during construction. All tangible capital assets, except assets under construction as well as land and land improvements with an indefinite life, are amortized over the estimated useful lives of the assets on a straight-line basis. The useful lives of Ontario’s tangible capital assets have been estimated as:

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

Other non-financial assets

Other non-financial assets also include prepaid expenses and personal protective equipment (PPE). PPE is valued at the lower of cost or net realizable value, using the weighted average cost method. Write-downs are recorded for impaired PPE inventory.

The following are not recognized in the Consolidated Statement of Financial Position:

• Intangible assets;
• Assets with historical or cultural value or works of art; and
• Assets inherited by right of the Crown such as Crown lands, forests, water and mineral resources.

(f) Change in accounting policy by adopting new standards

Liabilities for Asset Retirement Obligations

In August 2018, PSAB issued a standard, Section PS 3280, Asset Retirement Obligations effective for fiscal years beginning on or after April 1, 2022. Asset retirement obligations are liabilities when a legal obligation exists to incur retirement costs in relation to a tangible capital asset. Effective April 1, 2022, the Province adopted Section PS 3280 using the modified retroactive method with restatement of 2021–22 figures. The significant accounting policy disclosures are included in Note 1(e) and Note 7.

Previously, the Province reported obligations related to the retirement of tangible capital assets in the period when the asset was retired. It reported liabilities for the estimated closure and post-closure costs related to solid waste landfill sites based on the landfills’ capacity used during the year. Section PS 3280 requires the recognition of a liability for legal obligations that exist as a result of the acquisition, construction or development of a tangible capital asset, and replaces Section PS 3270, Solid Waste Landfill Closure and Post-Closure Liability.

For 2021–22, the year of transition, adjustments to the opening balances are as below:

Details on the effects of the adoption of the new standard for 2021–22 are included in Note 17.

Financial Statement Presentation 

Effective April 1, 2022, the Province adopted Public Accounting Standard PS 1201, Financial Statement Presentation. As a result of the adoption of Section PS 1201, a new statement of remeasurement gains and losses was presented for the year ended March 31, 2023. This statement presents remeasurement gains and losses arising from portfolio investments, derivative financial instruments, foreign currency transactions, other comprehensive income from GBEs, and Ontario Nuclear Funds. Upon adoption of Section PS 1201, the Province reclassified unrealized gains of $3.5 billion from opening accumulated operating deficit to the opening remeasurement gains.

Portfolio Investments

Effective April 1, 2022, the Province adopted Public Accounting Standard Section PS 3041, Portfolio Investments. As a result of adopting PS 3041, the basis of valuation of portfolio investments is disclosed. Portfolio investments are being tested for impairment on an annual basis.

Financial Instruments and Foreign Currency Translation 

Effective April 1, 2022, the Province adopted Public Accounting Standards Section PS 3450, Financial Instruments and Section PS 2601, Foreign Currency Translation. In accordance with the transitional provisions, the standards were adopted prospectively from the date of adoption and comparative figures were not restated. The new standards provide comprehensive requirements for the recognition, measurement, presentation and disclosure of financial instruments, portfolio investments and foreign currency transactions. The changes and adjustments were recognized as of April 1, 2022 as summarized below:

1. Long-Term foreign currency monetary assets and liabilities

   Section PS 2601 disallows the deferral of unamortized foreign exchange gains and losses on long-term foreign currency monetary assets and liabilities. Previously deferred unamortized foreign exchange gains and losses must be recognized upon transition.

   Section PS 2601.19A is an available election that allows the Province to recognize the exchange gains and losses directly in the Consolidated Statement of Operations instead of the Consolidated Statement of Remeasurement Gains and Losses on an instrument-by-instrument basis. For economically hedged groups of financial instruments where the underlying instrument is hedged to term by multiple shorter term derivative instruments, the Province has taken the PS 2601.19A election.

   Economically hedged groups of Financial Instruments taking the Section PS 2601.19A Election:

   Upon adoption of Section PS 2601, the Province recorded an adjustment of $1.3 billion in gains to the opening accumulated operating deficit for unamortized gains/losses previously deferred on the Consolidated Statement of Financial Position for financial instruments taking the PS 2601.19A election.

   Economically hedged groups of Financial Instruments not taking the Section PS 2601.19A Election:

   Upon adoption of Section PS 2601, the Province recorded an adjustment of $2.0 billion in gains to the opening balance of remeasurement gains and losses for unamortized gains and losses on the Consolidated Statement of Financial Position for financial instruments not taking the Section PS 2601.19A election.

2. Derivative Financial Instruments

   The Province enters into derivatives for risk management purposes. Section PS 3450 requires derivative assets and liabilities to be separately presented and recognized at fair value on the Consolidated Statement of Financial Position. For derivatives denominated in foreign currency with a shorter term than the underlying provincial debt instrument being hedged, the Province has taken the Section PS 2601.19A election.

   Upon adoption of Section PS 3450, the Province recognized derivative assets of $2.6 billion and derivative liabilities of $7.4 billion, resulting in a net loss of 4.8 billion being recognized in the opening balance of remeasurement gains and losses and the opening accumulated operating deficit.

   • Net $3.5 billion losses ($2.6 billion gains on derivative assets and $6.1 billion losses on derivate liabilities) to the opening remeasurement gains and losses on the fair value of the derivative assets and liabilities for derivatives not taking the Section PS2601.19A election and the non-foreign exchange component of the derivative’s fair value elected under Section PS2601.19A;
   • $1.3 billion to the opening accumulated operating deficit for the foreign exchange component of the derivative’s fair value elected under Section PS2601.19A.
3. Advanced Rate Setting and Delayed Rate Setting Transactions

   Section PS 3450 disallows the amortization of gains and losses from advanced rate setting and delayed rate setting transactions over the life of the financial instrument. Previously unamortized gains and losses from advanced rate setting and delayed rate setting transactions must be recognized upon transition.

   Upon adoption of Section PS 3450, the Province recorded an adjustment of $0.1 billion in gains to the opening accumulated operating deficit for unamortized gains and losses related to advanced rate setting and delayed rate setting transactions that are past their settlement date.

   The following table outlines the changes to opening balances and adjustments of derivative assets, derivative liabilities, advanced rate and delayed rate setting transactions, and foreign currency denominated debt.

(g) Future changes in accounting standards

PS 3400 — Revenue

The new standard provides a framework for recognizing revenue by distinguishing between revenue arising from transactions that include performance obligations, referred to as exchange transactions, and those that do not have performance obligations, referred to as non-exchange transactions. While the impact of any changes on Ontario’s Consolidated Financial Statements is not reasonably determinable at this time, Ontario intends to implement this standard effective April 1, 2023, for the fiscal year 2023–24.

PS 3160 — Public Private Partnerships

The new standard provides specific guidance on the accounting and reporting for public private partnerships between public and private sector entities where the public-sector entity procures infrastructure using a private-sector partner. While the impact of any changes on Ontario’s Consolidated Financial Statements is not reasonably determinable at this time, Ontario intends to implement this standard effective April 1, 2023, for the fiscal year 2023–24.

PSG — 8 — Purchased Intangible Assets

The new guideline provides guidance on the accounting and reporting for purchased intangible assets that are acquired through arm’s length exchange transactions between knowledgeable, willing parties that are under no compulsion to act. While the impact of any changes on Ontario’s Consolidated Financial Statements is not reasonably determinable at this time, Ontario intends to implement this guideline effective April 1, 2023, for the fiscal year 2023–24.

2. Debt

Ontario borrows in both domestic and international markets. Debt issued of $421.8 billion as at March 31, 2023 (2021–22, $425.9 billion), is composed mainly of bonds and debentures issued in the short- and long-term domestic and international public capital markets and non-public debt held by certain federal pension funds. Debt presented in this note comprises Debt Issued for Provincial Purposes of $422.1 billion (2021–22, $418.5 billion) and Ontario Electricity Financial Corporation (OEFC) Debt of $13.2 billion (2021–22, $14.5 billion), less investments in Ontario bonds and treasury bills of $10.1 billion (2021–22, $7.1 billion) and unamortized discounts, premiums and commissions of $3.4 billion. The following table presents the maturity schedule of Ontario’s outstanding debt, by currency of repayment, expressed in Canadian dollars, and reflects the effects of related derivative contracts. See Note 4 for debt of BPS organizations and obligations under P3 arrangements.

Fair value of debt outstanding approximates the amounts at which debt instruments could be exchanged in a current transaction between willing parties. Most of Ontario’s debt is valued at fair value using public market quotations — where these are not available, fair value is estimated using discounted cash flows. 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, 2023, was $402.8 billion (2021–22, $426.7 billion). 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 and provided $882 million of the proceeds to the 55 school boards in exchange for the irrevocable right to receive future transfer payments from the Ontario government related to this debt. An annual transfer payment is made by the Ministry of Education to the Trust’s sinking fund under the School Board Operating Grant program to retire the debt over 30 years. This debt, recorded net of the sinking fund of $376 million (2021–22, $352 million), is included in Ontario’s debt.

3. Derivatives and Risk Management

The Province employs various risk management strategies and operates within strict risk exposure limits to ensure that exposure to financial 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. Ontario uses derivatives to economically hedge interest rate risk and foreign currency risk. Economic 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 cost-effective characteristics. Other derivative instruments used by Ontario include forward foreign exchange contracts, forward rate agreements, futures and options.

Notional Value of Derivatives

The table below presents a maturity schedule of Ontario’s derivatives, by type, outstanding as at March 31, 2023, 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. 

Interest rate and cross-currency interest rate swaps are valued using a discounted cash flow method. Forward rates are used to determine floating rate cash flows occurring in the future. Cash flows are discounted using the respective currency’s yield curve. Inputs to the models are market observable and may include interest rate yield curves and foreign exchange rates.

Foreign exchange forwards and foreign exchange swaps are valued by discounting the notional amounts using the respective currency’s yield curve and converting the amounts using the spot Canadian dollar exchange rate.

Fair Value Hierarchy

The following table presents the financial instruments measured at fair value in the Consolidated Statement of Financial Position, classified using the fair value hierarchy.

There were no transfers between levels during 2023.

Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market factors. Market risk encompasses a variety of financial risks such as foreign exchange risk, interest rate risk and commodity price risk. The Province recognizes that it is subject to market risk primarily through foreign exchange and interest rate risk.

Foreign currency risk

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

For Debt, at March 31, 2023, the respective unhedged levels were 0.1 and 0.0% (2021–22, 0.1 and 0.0%). As of March 31, 2023, unhedged debt was limited to debt issued in Swiss francs. A one-Swiss rappen appreciation of the Swiss currency, relative to the Canadian dollar, would result in unhedged debt denominated in Swiss francs increasing by $8.9 million
(2021–22, $7.4 million increase) and based on applicable accounting standards for 2022–23, a corresponding increase in interest on debt of $8.9 million (2021–22, $1.0 million). Total foreign exchange gains recognized in the Consolidated Statement of Operations for 2022–23 were $34.3 million (2021–22, gains of $2.3 million).

The current market risk policy allows the amount of unhedged foreign currency debt principal, net of foreign currency holdings, to reach a maximum of 3.0% of Total Debt Issued for Provincial Purposes and OEFC.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Province is subject to interest rate risk through its debt, variable rate investments (i.e. bonds, fixed income securities), variable rate debts, and other long-term financing. 

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 net interest rate resetting exposure, which is the floating rate exposure plus fixed rate debt maturing within the next 12-month period net of liquid reserves as a percentage of Debt Issued for Provincial Purposes and OEFC debt, respectively.

The current market risk policy limits net interest rate resetting exposure for Debt Issued for Provincial Purposes and OEFC debt to a maximum of 35%. As at March 31, 2023, the net interest rate resetting exposure for Debt Issued for Provincial Purposes and OEFC debt was 5.2% and 26.1%, respectively (2021–22, 8.8% and 4.2%).

If interest rates had been 100 basis points higher or lower and all other variables were held constant, the Province’s interest on debt for the year ended March 31, 2023 would increase/decrease by $607 million (2022: decrease/increase by $700 million).

Liquidity risk

Liquidity risk is the risk that Ontario will not be able to meet its current short-term financial obligations. To reduce liquidity risk, Ontario maintains liquid reserves — that is, cash and temporary investments (Note 8) adjusted for collateral at levels that are expected to meet future cash requirements and give flexibility in the timing of issuing debt. The Province is subject to its liquidity risk through its accounts payable, derivatives, current portion of long-term debt, and long-term debt. To manage its liquidity risk, the Province performs extensive budgeting exercises, ongoing monitoring of its short-term cash flows, and has high liquid securities that can easily be converted to cash to ensure it meets all short-term obligations. Additionally, in some cases, the Province may have access to credit facilities or operating funds. Pledged assets are considered encumbered for liquidity purposes while collateral held, that can be sold or repledged, is a source of liquidity. In addition, Ontario has short-term note programs as alternative sources of liquidity.

Collateral

Ontario has entered securities repurchase agreements and collateralized swap agreements with certain counterparties. Under the terms of those agreements, Ontario may be required to pledge and/or receive assets relating to obligations to the counterparties. In the normal course of business, these pledged securities will be returned to the pledgor when there are no longer any outstanding obligations.

As at March 31, 2023, Ontario has pledged assets in the carrying amount of $3,874 million (2021–22, $4,805 million), which would be included in Investments and/or Cash and Cash Equivalents.

Credit risk

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The Province is subject to credit risk through its cash and cash equivalents, accounts receivable, loans receivable, investments and other financial assets. The Province holds cash accounts in federally regulated chartered banks who are insured by the Canadian Deposit Insurance Corporation.

The use of derivatives introduces credit risk, which is the risk of a counterparty defaulting on contractual derivative obligations in which Ontario has an unrealized gain. The table below presents the credit risk associated with the derivative financial instrument portfolio measured through the replacement value of derivative contracts, as at March 31, 2023.

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, Ontario 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 Ontario would incur if every counterparty to which it 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 after the mitigating impact of these netting provisions. Net Credit Risk Exposure (Net of Collateral) is the potential loss to Ontario after mitigation by the collateral received from counterparties.

4. Other Long-Term Financing

Other Long-Term Financing comprises the total debt of the BPS organizations and obligations under P3 arrangements.

Other Long-Term Financing of $17.6 billion as at March 31, 2023 (2021–22, $18.0 billion), includes BPS Debt of $5.6 billion (2021–22, $5.8 billion), BPS P3 Obligations of $4.7 billion (2021–22, $5.2 billion) and Other P3 Obligations of $7.3 billion (2021–22, $7.0 billion). The following table presents the maturity schedule of other long-term financing by type of financing.

Interest expense on BPS debt of $41 million (2021–22, $334 million) is included in Interest on Debt. The effective interest rate for BPS debt by each arrangement ranges from 0% to 7.95% (2021–22, 0% to 7.49%).

5. Deferred revenue and capital contributions

In 2010–11, the Province renewed its long-standing business partnership with Teranet Inc. (Teranet) by extending Teranet’s exclusive licences to provide electronic land registration and writs services in Ontario for an additional 50 years. Ontario received approximately a $1.0 billion upfront payment for the transaction, which is amortized into revenue over the life of the contract.

6. Pensions and other employee future benefits

The Province sponsors several pension plans. It is the sole sponsor of the Public Service Pension Plan (PSPP) and the Provincial Judges’ Pension Plan (PJPP), and a joint sponsor of the Ontario Public Service Employees Union Pension Plan (OPSEUPP) and the Ontario Teachers’ Pension Plan (OTPP). In addition to the provincially sponsored plans, the Province also reports in its consolidated financial statements pension benefits for employees in the hospital and colleges sectors, which are provided by the Healthcare of Ontario Pension Plan (HOOPP) and the Colleges of Applied Arts and Technology Pension Plan (CAATPP), respectively.

As permitted under Canadian public sector accounting standards, Ontario elects to use an earlier pension measurement date, December 31, in preparing the consolidated financial statements as at March 31, as long as no significant changes relevant to the valuation of the plans occurs between these two dates. The Province has applied this reporting practice consistently. PJPP previously used a pension measurement date of March 31, which subsequently changed to December 31 in 2021–22.

Pensions

PSPP, OPSEUPP and OTPP are contributory defined benefit plans that provide Ontario government employees as well as elementary and secondary school teachers, and administrators, with a defined amount of retirement income based on a formula. The formula takes into account a member’s best five-year average salary and length of service. The retirement benefits are indexed to changes in the Consumer Price Index to provide protection against inflation. The plan benefits are financed by contributions from plan members and the Province, as well as investment earnings. Plan members normally contribute 8 to 12% of their salaries to these plans. The Province either matches these contributions or makes contributions based on actuarial reports depending on the funding structure of each plan. The obligations for benefits and plan fund assets for OTPP and OPSEUPP exclude those employers not consolidated by Ontario.

The PJPP is comprised of a funded registered defined benefit pension plan and an unfunded supplemental defined benefit pension plan, as well as a partially funded retirement compensation arrangement (RCA), for eligible judges whose pension benefits under the PJPP registered plan are limited by the federal Income Tax Act or federal Tax Regulations. PJPP provides eligible judges with a defined amount of retirement income based on a formula that takes into account an amount equal to 2% of the judge’s average salary for their final three years of service. Plan members normally contribute 7% of their salary to this plan. Starting from 2020–21, the PJPP pension liability and expense are reported in this note with an initial measurement date of March 31, which subsequently changed to December 31 from 2021–22.

The Province is also responsible for sponsoring the Public Service Supplementary Benefits Plan (PSSBP) and the Ontario Teachers’ Retirement Compensation Arrangement. The existing PSSBP is converted to an RCA, effective January 1, 2022, which provides additional pension benefits to members whose contribution and benefits under PSPP are limited by the federal Income Tax Act. The Ontario Pension Board acts as administrator of the RCA, trustee of the RCA assets and oversees the investments of the RCA. Expenses and liabilities of these plans are included in the Pensions Expense and Pensions Liability reported in the above tables.

HOOPP is a multi-employer pension plan covering employees of Ontario’s health care community. CAATPP is a multi-employer pension plan covering employees of the Colleges of Applied Arts and Technology in Ontario, the Ontario College Application Services and the Ontario College Library Services. Both plans are accounted for as multi-employer defined benefit plans that provide eligible members with a retirement income based on a formula. Like the plans that are sponsored by the government, the formula takes into account a member’s best five-year average salary and length of service in the plan. The plan benefits are financed by contributions from participating members and employers and by investment earnings. Ontario records a percentage of the net obligations of HOOPP and CAATPP based on the ratio of employer to employee contributions.

The Province does not have unilateral control over the decisions regarding contribution levels or benefit changes for either the HOOPP or CAATPP multi-employer plans as it is not a member of the committees responsible for these decisions. Therefore, a valuation allowance is recorded to write-down the net asset position in these plans, if any. The Province has applied a full valuation against the net pension assets of the OTPP and OPSEUPP.

The obligation for benefits and plan fund assets of the above plans is based on actuarial accounting valuations that are performed annually. Funding of these plans is based on statutory actuarial funding valuations undertaken at least once every three years.

Information on contributory defined benefit plans is as follows:

Other employee future benefits

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

Non-pension retirement nenefits

The Province provides dental, basic life insurance, supplementary health and hospital benefits to eligible retired employees through a group insured benefit plan. Certain PSPP members and OPSEUPP members who had not accrued the minimum eligibility requirement of 10 years of pension service before January 1, 2017, are required to have 20 years of pension service and retire to an immediate unreduced pension to be eligible to receive the post-retirement insured benefits. Further, such eligible members who commenced receipt of a pension on or after January 1, 2017, have the option to either participate in the current legacy post-retirement insured benefits plan and pay 50% of the premium costs, or to participate in the new retiree-focused post-retirement benefits plan, at no cost to the member.

Optional enrolment in the retiree-focused plan, at full cost to the retiree, is also available to employees hired before January 1, 2017, and who later retire to an immediate unreduced pension based on a minimum 10 years of pension service and employees hired on and after January 1, 2017, who later retire to an immediate unreduced pension based on a minimum 20 years of pension service.

The liability for non-pension retirement benefits of $9.1 billion as at March 31, 2023 (2021–22, $9.0 billion), is included in the Other Employee Future Benefits Liability. The expense for 2022–23 of $452 million (2021–22, $949 million) is included in the Other Employee Future Benefits Expense.

The discount rate used in the non-pension retirement benefits calculation for 2022–23 is 4.40% (2021–22, 2.95%). The discount rate used by BPS organizations in the non-pension retirement benefits calculation for 2022–23 ranges from 1.70% to 6.34% (2021–22, 1.10% to 5.00%).

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 all other employees, subject to terms set out in collective agreements and in the Management Board of Cabinet Compensation Directive as applicable, Ontario provides termination pay equal to one week’s salary for each year of service up to a maximum of 50% 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. All employees who resign are not eligible for any severance pay in respect to service after December 2011.

The total post-employment benefits liability of $3.2 billion as at March 31, 2023 (2021–22, $3.4 billion) is included in the Other Employee Future Benefits Liability. The total post-employment benefits expense of $0.7 billion in 2022–23 (2021–22, $1.7 billion) is included in the Other Employee Future Benefits Expense.

The discount rate used in the post-employment benefits, compensated absences and termination benefits calculations for 2022–23 is 4.10% (2021–22, 2.50%). The discount rate used by BPS organizations for the post-employment benefits in 2022–23 ranges from 1.70% to 6.60% (2021–22, 1.60% to 4.98%).

Liabilities for asset retirement obligations

The Province reports liabilities related to the legal obligations where the Province is obligated to incur costs to retire a tangible capital asset. A liability of $4.1 billion as at March 31, 2023 (2021–22, $3.8 billion) has been recorded for activities to fulfill the obligation based on estimation for the cost of these activities.

 A significant part of asset retirement obligations results from the removal and disposal of designated substances such as asbestos from provincial buildings, and closure and post closure activities related to solid waste landfill sites. The measurement of the liability for asset retirement obligations is impacted by new information about activities required to settle the liability, the activities that settled all or part of the obligation, and any changes in the legal obligation. When significant obligations have reliable cash flow projections, the liability may be estimated using the present value of future cash flows, otherwise they are recorded at current costs.

To estimate the liability for asbestos and other designated substances in provincial buildings, assessment reports that include the type and quantity of the substances are used with experience and expert advice to determine the cost of retiring the substance. For buildings without an assessment, an estimate is based on the cost for similar buildings until more asset specific data is available.

To estimate the solid waste landfill liability, site closure plans are used to estimate the closure and post-closure costs. Before a closure plan is approved, information on the site is used to predict the activities that will be required to close, maintain and monitor the site, based on the experience related to other sites considering the content and condition of the site based on operational monitoring and reporting. These activities such as capping or ground water monitoring are costed using rates determined though experience and expert advice.

The Province discounts significant obligations that have reliable cash flow projections, and is estimated using the present value of future cash flows, otherwise they are recorded at current costs. The discount rate used reflects the risks specific to the asset retirement liability and the entity that will settle the liability. Subsequently, accretion of the discounted liability due to the passage of time is recorded as an in-year expense. During the year, for the asset retirement obligations that used present value techniques to measure the liabilities, the discount rate utilized ranged from 3.0% to 5.1% (2021–22, 3.0% to 5.1%). A reconciliation of the beginning and ending aggregated carrying amount of the ARO liability is as below:

Liabilities for contaminated sites

Ontario reports environmental liabilities related to the management and remediation of contaminated sites where it is obligated or likely obligated to incur such costs. A contaminated sites liability of $1.9 billion (2021–22, $1.8 billion) has been recorded based on environmental assessments or estimations for those sites where an assessment has not been conducted.

Ontario’s ongoing efforts to assess contaminated sites may result in additional environmental remediation liabilities related to newly identified sites, or changes in the assessments or intended use of existing sites, including mine sites. Any changes to Ontario’s liabilities for contaminated sites will be accrued in the year in which they are assessed as likely and measurable.

Other pension liabilities

Other pension liabilities include pension and benefit funds related to the Public Service, the Justice of the Peace, the Deputy Ministers’, OPSEU and the Associate Judges Supplemental Pension Plan.

Other funds and liabilities

Other Funds and Liabilities include externally restricted funds and other long-term liabilities.

Other long-term liabilities included liabilities for Solid Waste Landfills reported under Section PS 3270 Solid Waste Landfill Closure and Post Closure Liability of $217 million in 2021–22. This standard was withdrawn for the fiscal year 2022–23. Any closure and post-closure costs that meet the definition of Section PS 3280 Asset Retirement Obligations are now included as part of Liabilities for Asset Retirement Obligations reported separately in this note. Comparative numbers are restated (see Note 17 for details).

Temporary investments

The fair value of temporary investments, including assets purchased and sold under resale and repurchase agreements at March 31, 2023, is $30.4 billion (2021–22, $22.3 billion). Temporary investments primarily consist of investments in government bonds. Fair value is determined using quoted market prices.

A resale agreement is an agreement between two parties where Ontario purchases and subsequently resells a security at a specified price on a specified date. A repurchase agreement is an agreement between two parties where Ontario sells and subsequently repurchases a security at a specified price on a specified date.

Other investments

Other investments represent investments held by BPS and other government organizations. These investments mainly consist of fixed-income securities that are measured at the carrying value and portfolio investments that are measured at fair value which is determined using quoted market prices.

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

Buildings include administrative and service structures, dams and engineering structures.

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

Machinery and Equipment consists mostly of hospital equipment.

Information Technology consists of computer hardware and software.

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

Works of art and historical treasures are excluded from tangible capital assets.

Assets under construction have been included within the various asset categories presented above. The total value of assets under construction as at March 31, 2023, is $34.1 billion (2021–22, $28.3 billion). Capitalized interest for the fiscal year 2022–23 is $694 million (2021–22, $321 million). The cost of tangible capital assets under capital leases is $846 million (2021–22, $811 million), and their accumulated amortization is $385 million (2021–22, $363 million).

Amortization expense for the fiscal year 2022–23 totalled $7.5 billion (2021–22, $7.2 billion).

10. Changes in the fair value of Ontario nuclear funds

The Ontario Nuclear Funds Agreement (ONFA) Funds were established by Ontario Power Generation Inc. (OPG) and the Ontario government to ensure that sufficient funds will be available to pay for the costs of nuclear station decommissioning and nuclear used fuel waste management.

Since April 1, 2007, the fair value of ONFA Funds has been reflected in Ontario’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 Remeasurement Gains and Losses. Realized gains and losses of ONFA Funds are included in Income from Investment in Government Business Enterprises. Inter-organizational balances related to ONFA Funds are eliminated.

ONFA Funds incurred unrealized losses in 2022–23 of $37 million (2021–22, unrealized losses $52 million) that resulted in a decrease in Investment in Government Business Enterprises and a corresponding increase in Net Debt and Remeasurement Gains (or Losses).

11.a. Contingent liabilities

Obligations Guaranteed by the Province

Loan guarantees include guarantees or indemnifications provided by the Province or government organizations. The authorized limit for loans guaranteed by the government as at March 31, 2023, was $2.3 billion (2021–22, $3.2 billion). The outstanding loans guaranteed amounted to $0.5 billion as at March 31, 2023 (2021–22, $0.7 billion). A provision of $0.9 million (2021–22, $1.8 million), based on an estimate of the likely loss arising from guarantees mostly under the Student Support Programs, has been reflected in these consolidated financial statements.

Ontario Nuclear Funds Agreement

Under the Ontario Nuclear Funds Agreement (ONFA), Ontario 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.

In addition, under ONFA, the government guarantees a return of 3.25% 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, Ontario is entitled to the excess.

An agreement between the Canadian Nuclear Safety Commission (CNSC), the Province and OPG gives the CNSC access (in prescribed circumstances) to the segregated funds established under ONFA.

Claims against the Crown

There are claims outstanding against the Crown, of which 69 (2021–22, 75) are for amounts over $50 million, that require disclosure per the Public Sector Accounting Standards. These claims arise from legal action, either in progress or threatened, in respect of Aboriginal treaty rights and land claims, breach of contract, injury to persons, negligence and like items. The cost to Ontario, if any, cannot be determined because the financial outcome of these actions is uncertain. For a detailed listing of claims against the ministries, refer to the Ministry Statements and Schedules, “Claims Against the Crown.”

On November 29, 2022, the Ontario Superior Court determined that the Protecting a Sustainable Public Sector for Future Generations Act, 2019, S.O. 2019, c. 12, infringed section 2(d), and was not justified under section 1 of the Charter of Rights and Freedoms. At the request of all parties, the Court deferred the considerations of any remedy to be awarded to a future hearing. The Province is appealing the Ontario Superior Court’s decision. The impact on the 2022–23 Consolidated Financial Statements was based on the Province’s best estimation of potential obligations based on information available, including the outcomes of various arbitrations.

Canadian Blood Services

The provincial and territorial governments of Canada are parties to 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 (CBSE), a wholly owned subsidiary of CBS. Under the Captive Support Agreement, each provincial or territorial (PT) government indemnifies CBSE for its pro rata share of any payments that CBSE becomes obliged to make under an excess comprehensive blood risks insurance policy it provides to CBS. 

CBS self-insures its potential liabilities arising from its blood operations through two wholly owned subsidiary corporations with an overall aggregate captive insurance coverage up to $1 billion which may cover settlements, judgments and defence costs. This is accomplished through: 1) CBS Insurance Company Limited (CBSI) which has issued a Primary policy of insurance (Primary Policy) with a policy limit of $300M; and 2) Canadian Blood Services Captive Insurance Company Limited (CBSE) which has issued an excess policy of insurance (Excess Policy) with a policy limit of $700 million. 

Based on the population ratios identified in the latest Amendment from 2019, Ontario’s maximum potential liability under the Captive Support Agreement is approximately $498.83 million. Ontario is not aware of any proceedings that could lead to a claim against it under the Captive Support Agreement.

Contaminated sites

Ontario has identified a total of 142 sites (2021–22, 141 sites) where they may be responsible for any resulting clean-up costs. However, a liability has not been recorded for these sites at the financial reporting date because it is unclear if the government is responsible for those sites or the amounts of the liabilities cannot be estimated. Of these sites, there are 90 sites (2021–22, 90 sites) whereby it is indeterminable whether the government is responsible resulting in a potential liability of $393 million (2021–22, $393 million).

Tax assessments

The province signed a Memorandum of Agreement with the Government of Canada to transition to a single administration for corporate tax for tax years ending after December 31, 2008. As part of the agreement, the Canada Revenue Agency (CRA) is also responsible for the administration of audit activities, taxpayer objections and any appeals that may arise from objections for 2008 and prior tax years. The cost to the province cannot be reasonably estimated as the outcome of these objections and appeals are uncertain.

Land and land‑related claims

A land or land‑related claim is a formal allegation made by an Indigenous community that it is legally entitled to land, financial payment or other compensation. Currently, 61 land claims for 2022–23 (2021–22, 66 land claims) are under negotiation, accepted for negotiation or under review. A liability is recorded if the settlement of the claim is assessed as likely and the amount of the settlement can be reasonably estimated.

iGaming Ontario Notice of Application

On November 28, 2022, the Mohawk Council of Kahnawa:ke ("MCK") served a notice of application with the Ontario Superior Court against iGaming Ontario and the Attorney General of Ontario seeking a declaration that the Ontario government does not “conduct and manage” online lottery as required under s. 207(1)(a) of the Criminal Code” as well as challenging the legislative and constitutional authority which underpins the regulated internet Gaming market scheme in Ontario. The application is expected to be heard in February 2024. 

Credit Union Deposit Insurance

In the event that the credit unions have insufficient funds, the government can provide financing. In accordance with the Credit Unions and Caisses Populaires Act, 2020, the Financial Services Regulatory Authority of Ontario (FSRA) administers the Deposit Insurance Reserve Fund (DIRF) which provides deposit protection coverage to eligible credit union depositors and also provides financial support to credit unions. Credit unions have advertised that depositors are covered up to $250,000 of eligible deposits plus all insurable deposits in registered accounts with each member credit union. As of March 31, 2023, FSRA had a credit facility agreement with the Ontario Financing Authority for the purposes of mitigating any potential liquidity risk in the Ontario credit union sector, including situations where one or more credit unions may require financial support beyond the support available from the DIRF. The agreement includes a non-revolving facility with a maximum principal amount of $2.0 billion that would accrue interest at the three-month Ontario Treasury Bill Rate plus 0.782%. No amounts have been drawn under this facility as at March 31, 2023 (March 31, 2022, $NIL).

Other contingencies

Other contingencies for this year are $0.1 billion (2021–22, $0.1 billion) including items such as letters of credit and lines of credit for consolidated entities.

b. Contingent assets

Ontario has brought a claim against a number of companies in the tobacco industry pursuant to the Tobacco Damages and Health Care Costs Recovery Act, 2009. The action is in the pre-trial stage; however, it is currently stayed as a result of the tobacco companies’ proceedings under the Companies’ Creditors Arrangement Act (CCAA). The amount of any potential payment to Ontario is not estimable at this time.

Ontario has entered into a number of multiple-year P3 contracts for the construction of assets and delivery of services. The contractual obligations represent the unperformed capital and operating portion of the contracts and will become liabilities in the future when the terms of the contracts are met.

In May 2010, the Province reached a deal with Teranet to provide a 50-year extension to its original agreement in exchange for $1.0 billion cash up front (see Note 5). As part of the new agreement, Teranet has agreed to pay Ontario annual royalty payments beginning in 2017 and ending in 2067. The royalty payments are contingent upon Teranet’s financial performance. Ontario recognized $28.5 million in revenue relating to royalty payments pertaining to the contractual rights from Teranet in 2022–23 (2021–22, $33.8 million). Royalty payments for 2024, and thereafter, could not be estimated as they are based on percentages of various eligible Teranet revenues such as value-added product revenue, registration revenue and ancillary revenue.

Contractual rights are certain in nature, and they will become assets in the future when the terms of the contracts are met.

13. Trust funds under administration

The following trust funds under administration are not included in Ontario’s Consolidated Financial Statements.

The Workplace Safety and Insurance Board (WSIB) is responsible for administering the Workplace Safety and Insurance Act, 1997, which establishes a no-fault insurance scheme that provides benefits to workers who experience workplace injuries or illnesses.

The Office of the Public Guardian and Trustee for Ontario delivers a unique and diverse range of services that safeguard the legal, personal and financial interests of certain private individuals and estates. It also plays an important role in helping to protect charitable property in Ontario.

Summary financial information from the most recent consolidated financial statements of trust funds under administration is provided below. The financial statements of the WSIB and the OPGT have been prepared in accordance with IFRS.

Unfunded liabilities of trusts under administration are not included in Ontario’s Consolidated Financial Statements as it is intended that they will be discharged by external parties.

14. Related party disclosures and inter-entity transactions

The province of Ontario enters into transactions with parties within the reporting entity, including provincial Crown corporations, agencies, boards, commissions and government not-for-profit organizations, in the normal course of operations. These inter-entity transactions are those conducted between related parties with common control or ownership, are recorded at the exchange value, and have been eliminated for purposes of consolidated reporting.

Related party transactions can also include transactions with entities outside the reporting entity where a member of Ontario’s key management personnel, or their spouse or dependent, is key management personnel of the counterparty to a transaction with Ontario. As key management personnel, they govern or share the power to determine the ongoing financial and operating decisions of that counterparty. Ontario’s key management personnel are those individuals having authority and responsibility for planning, directing and controlling the activities of the government, and have been identified as ministers, associate ministers and deputy ministers for the purpose of this reporting.

Ontario has a wide variety of controls in place to ensure that key management personnel do not enter into transactions with related parties. For 2022–23 there were no transactions between related parties which occurred at a value materially different from that which would have been arrived at if the parties were unrelated.

15. Subsequent events

On June 17, 2023, announcement was made on the proposed out-of-court settlement between the governments of Canada and Ontario and the Robinson Huron Treaty Litigation Fund in the outstanding litigation around the 1850 Robinson Huron Treaty. The proposed settlement includes $10 billion for past losses, Canada and Ontario each provided $5 billion respectively.

16. Personal protective equipment and COVID‑19 vaccine

Personal protective equipment

Personal protective equipment (PPE) includes medical equipment and supplies, masks, face shields, face coverings, gloves, ventilators, beds, swabs, protective gowns, etc, as well as other supplies including cleaning supplies and rapid antigen tests. PPE included in-kind transfers from the Government of Canada and provincially procured PPE.
Beginning in 2022–23, provincial ministries are recording PPE inventories as part of other non-financial assets (refer to Note 1(e)). As at March 31, 2023, $1,566 million of PPE is available for future distribution and is recorded as Other Non-Financial Assets in the Consolidated Statement of Financial Position.

Vaccines

Following the sunsetting of the COVID‑19 Vaccine Distribution Task Force, the Government has led Ontario’s COVID‑19 vaccination program in partnership with public health units, and external sectors based on the government’s Ethical Framework for COVID‑19 Vaccine Distribution. The COVID‑19 vaccines are procured by the Government of Canada. Ontario received vaccines in‑kind or at no cost from the Government of Canada for distribution across the province. No amounts have been recorded for the COVID‑19 vaccines because the fair value of these vaccines received from the Government of Canada cannot be reasonably determined. Due to confidentiality clauses embedded in contracts between the Government of Canada and the various COVID‑19 vaccine manufacturers, information related to the price per dose of vaccines could not be disclosed.

As of March 31, 2023, 805,268 doses of vaccines were available to be administered and held by local public health units, hospitals and pharmacies across the province.

17. Accounting changes and reclassifications

The tables below summarizes the effects of accounting changes and reclassifications for the year ended March 31, 2022.

A. Pension Benefits Guarantee Fund (PBGF)

PBGF provides protection, subject to specific maximums and specific exclusions, to Ontario members and beneficiaries of privately sponsored single employer defined benefit pension plans in the event of plan sponsor insolvency. In 2022–23, the Pension Benefits Guarantee Fund was assessed as being controlled through FSRA and has been included in the Consolidated Financial Statements of the Province of Ontario as a retroactive adjustment to the opening accumulated deficit.

B. PS3280 Asset Retirement Obligations (ARO)

Effective April 1, 2022, the Province adopted Section PS 3280 using the modified retroactive method with restatement of 2021–22 comparative figures. The significant accounting policy disclosures are included in Note 1(e) and Note 7.

C. Reclassifications

All presentations of results by sector for the 2022 Budget and the prior year comparatives have been reclassified to be reflected on the same basis as that used to report the current year actual.

D. Comparative figures

Certain comparative figures have been reclassified as necessary to conform to the 2022–23 presentation.

Schedules to the Consolidated Financial Statements

Sectors

Province of Ontario schedule 8: government organizations ^{footnote 64[64]}

Broader public sector organizations

Public hospitals — Ministry of Health

• Alexandra Hospital Ingersoll
• Alexandra Marine & General Hospital
• Almonte General Hospital
• Anson General Hospital
• Arnprior Regional Health
• Atikokan General Hospital
• Baycrest Centre for Geriatric Care
• Bingham Memorial Hospital
• Blanche River Health
• Bluewater Health
• Brant Community Healthcare System
• Brockville General Hospital
• Bruyère Continuing Care Inc.
• Cambridge Memorial Hospital
• Campbellford Memorial Hospital
• Carleton Place & District Memorial Hospital
• Casey House Hospice
• Chatham-Kent Health Alliance
• Children’s Hospital of Eastern Ontario — Ottawa Children’s Treatment Centre
• Clinton Public Hospital
• Collingwood General and Marine Hospital
• Cornwall Community Hospital
• Deep River & District Hospital
• Dryden Regional Health Centre
• Erie Shores HealthCare
• Espanola General Hospital
• Four Counties Health Services
• Georgian Bay General Hospital
• Geraldton District Hospital
• Grand River Hospital
• Grey Bruce Health Services
• Groves Memorial Community Hospital
• Guelph General Hospital
• Haldimand War Memorial Hospital
• Haliburton Highlands Health Services Corporation
• Halton Healthcare Services Corporation
• Hamilton Health Sciences Corporation
• Hanover & District Hospital
• Headwaters Health Care Centre
• Health Sciences North
• Holland Bloorview Kids Rehabilitation Hospital
• Hôpital Général de Hawkesbury and District General Hospital Inc.
• Hôpital Glengarry Memorial Hospital
• Hôpital Montfort
• Hôpital Notre-Dame Hospital (Hearst)
• Hornepayne Community Hospital
• Hospital for Sick Children
• Hôtel-Dieu Grace Healthcare
• Humber River Regional Hospital
• Joseph Brant Hospital
• Kemptville District Hospital
• Kingston Health Sciences Centre
• Lady Dunn Health Centre
• Lady Minto Hospital, Cochrane
• Lake of the Woods District Hospital
• Lakeridge Health
• Lennox and Addington County General Hospital
• Listowel Memorial Hospital
• London Health Sciences Centre
• Mackenzie Health
• Manitoulin Health Centre
• Mattawa General Hospital
• Muskoka Algonquin Healthcare
• Niagara Health System
• Nipigon District Memorial Hospital
• Norfolk General Hospital
• North Bay Regional Health Centre
• North Shore Health Network
• North of Superior Healthcare Group
• North Wellington Health Care Corporation
• North York General Hospital
• Northumberland Hills Hospital
• Oak Valley Health
• Orillia Soldiers’ Memorial Hospital
• Ottawa Hospital
• Pembroke Regional Hospital Inc.
• Perth and Smiths Falls District Hospital
• Peterborough Regional Health Centre
• Providence Care Centre (Kingston)
• Queensway Carleton Hospital
• Quinte Healthcare Corporation
• Red Lake Margaret Cochenour Memorial Hospital Corporation
• Religious Hospitallers of St. Joseph of Cornwall, Ontario
• Religious Hospitallers of St. Joseph of the Hotel Dieu of St. Catharines
• Renfrew Victoria Hospital
• Riverside Health Care Facilities Inc.
• Ross Memorial Hospital
• Royal Victoria Regional Health Centre
• Runnymede Healthcare Centre
• Salvation Army Toronto Grace Health Centre
• Sante Manitouwadge Health
• Sault Area Hospital
• Scarborough Health Network
• Seaforth Community Hospital
• Sensenbrenner Hospital
• Services de santé de Chapleau Health Services
• Sinai Health System
• Sioux Lookout Meno Ya Win Health Centre
• Smooth Rock Falls Hospital
• South Bruce Grey Health Centre
• South Huron Hospital Association
• Southlake Regional Health Centre
• St. Francis Memorial Hospital
• St. Joseph’s Care Group
• St. Joseph’s Continuing Care Centre, Centre of Sudbury
• St. Joseph’s General Hospital, Elliot Lake
• St. Joseph’s Health Care, London
• St. Joseph’s Health Centre Guelph
• St. Joseph’s Healthcare Hamilton
• St. Mary’s General Hospital
• St. Marys Memorial Hospital
• St. Thomas Elgin General Hospital
• Stevenson Memorial Hospital
• Stratford General Hospital
• Strathroy Middlesex General Hospital
• Sunnybrook Health Sciences Centre
• Temiskaming Hospital
• Thunder Bay Regional Health Sciences Centre
• Tillsonburg District Memorial Hospital
• Timmins and District Hospital
• Toronto East Health Network
• Trillium Health Partners
• Unity Health Toronto
• University Health Network
• University of Ottawa Heart Institute
• Weeneebayko Area Health Authority
• West Haldimand General Hospital
• West Nipissing General Hospital
• West Park Healthcare Centre
• West Parry Sound Health Centre
• William Osler Health System
• Winchester District Memorial Hospital
• Windsor Regional Hospital
• Wingham and District Hospital
• Women’s College Hospital
• Woodstock Hospital

Specialty psychiatric hospitals — Ministry of Health

• Centre for Addiction and Mental Health
• Ontario Shores Centre for Mental Health Sciences
• Royal Ottawa Health Care Group
• Waypoint Centre for Mental Health Care

School boards — Ministry of Education

• Algoma District School Board
• Algonquin & Lakeshore Catholic District School Board
• Avon Maitland District School Board
• Bloorview School Authority
• Bluewater District School Board
• Brant Haldimand Norfolk Catholic District School Board
• Bruce-Grey Catholic District School Board
• Campbell Children’s School Authority
• Catholic District School Board of Eastern Ontario
• CHEO School Authority
• Conseil des écoles publiques de l’Est de l’Ontario
• Conseil scolaire catholique MonAvenir
• Conseil scolaire catholique Providence
• Conseil scolaire de district catholique de l’Est ontarien
• Conseil scolaire de district catholique des Aurores boréales
• Conseil scolaire de district catholique des Grandes Rivières
• Conseil scolaire de district catholique du Centre-Est de l’Ontario
• Conseil scolaire de district catholique du Nouvel-Ontario
• Conseil scolaire de district catholique Franco-Nord
• Conseil scolaire public du Grand Nord de l'Ontario
• Conseil scolaire public du Nord-Est de l’Ontario
• Conseil scolaire Viamonde
• Consortium Centre Jules-Léger
• District School Board of Niagara
• District School Board Ontario North East
• Dufferin-Peel Catholic District School Board
• Durham Catholic District School Board
• Durham District School Board
• Grand Erie District School Board
• Greater Essex County District School Board
• Halton Catholic District School Board
• Halton District School Board
• Hamilton-Wentworth Catholic District School Board
• Hamilton-Wentworth District School Board
• Hastings and Prince Edward District School Board
• Huron-Perth Catholic District School Board
• Huron-Superior Catholic District School Board
• James Bay Lowlands Secondary School Board
• John McGivney Children’s Centre School Authority
• Kawartha Pine Ridge District School Board
• Keewatin-Patricia District School Board
• Kenora Catholic District School Board
• KidsAbility School Authority
• Lakehead District School Board
• Lambton Kent District School Board
• Limestone District School Board
• London District Catholic School Board
• Moose Factory Island District School Area Board
• Moosonee District School Area Board
• Near North District School Board
• Niagara Catholic District School Board
• Niagara Peninsula Children’s Centre School Authority
• Nipissing-Parry Sound Catholic District School Board
• Northeastern Catholic District School Board
• Northwest Catholic District School Board
• Ottawa Catholic District School Board
• Ottawa-Carleton District School Board
• Peel District School Board
• Penetanguishene Protestant Separate School Board
• Peterborough Victoria Northumberland and Clarington Catholic District School Board
• Rainbow District School Board
• Rainy River District School Board
• Renfrew County Catholic District School Board
• Renfrew County District School Board
• Simcoe County District School Board
• Simcoe Muskoka Catholic District School Board
• St. Clair Catholic District School Board
• Sudbury Catholic District School Board
• Superior North Catholic District School Board
• Superior-Greenstone District School Board
• Thames Valley District School Board
• Thunder Bay Catholic District School Board
• Toronto Catholic District School Board
• Toronto District School Board
• Trillium Lakelands District School Board
• Upper Canada District School Board
• Upper Grand District School Board
• Waterloo Catholic District School Board
• Waterloo Region District School Board
• Wellington Catholic District School Board
• Windsor-Essex Catholic District School Board
• York Catholic District School Board
• York Region District School Board

Colleges — Ministry of Colleges and Universities

• Algonquin College of Applied Arts and Technology
• Cambrian College of Applied Arts and Technology
• Canadore College of Applied Arts and Technology
• Centennial College of Applied Arts and Technology
• Collège Boréal d’arts appliqués et de technologie
• Collège d’arts appliqués et de technologie La Cité collégiale
• Conestoga College Institute of Technology and Advanced Learning
• Confederation College of Applied Arts and Technology
• Durham College of Applied Arts and Technology
• Fanshawe College of Applied Arts and Technology
• George Brown College of Applied Arts and Technology
• Georgian College of Applied Arts and Technology
• Humber College Institute of Technology and Advanced Learning
• Lambton College of Applied Arts and Technology
• Loyalist College of Applied Arts and Technology
• Mohawk College of Applied Arts and Technology
• Niagara College of Applied Arts and Technology
• Northern College of Applied Arts and Technology
• Sault College of Applied Arts and Technology
• Seneca College of Applied Arts and Technology
• Sheridan College Institute of Technology and Advanced Learning
• Sir Sandford Fleming College of Applied Arts and Technology
• St. Clair College of Applied Arts and Technology
• St. Lawrence College of Applied Arts and Technology

Children’s Aid Societies — Ministry of Children, Community and Social Services

• Bruce Grey Child and Family Services
• Catholic Children’s Aid Society of Hamilton
• Child and Family Services of Grand Erie
• Children & Family Services for York Region
• Children’s Aid Society of Algoma
• Children’s Aid Society of Hamilton
• Children’s Aid Society of London and Middlesex
• Children’s Aid Society of Ottawa
• Children’s Aid Society of Oxford County
• Children's Aid Society of the City of Guelph & The County of Wellington
• Children's Aid Society of the County of Dufferin
• Children’s Aid Society of the District of Nipissing and Parry Sound
• Children’s Aid Society of the Districts of Sudbury and Manitoulin
• Children's Aid Society of the Niagara Region
• Children’s Aid Society of the Region of Peel
• Children’s Aid Society of the Regional Municipality of Halton
• Children's Aid Society of the Regional Municipality of Waterloo
• Children’s Aid Society of the United Counties of Stormont-Dundas-Glengarry
• Children’s Aid Society of Thunder Bay
• Children’s Aid Society of Toronto
• Durham Children’s Aid Society
• Family and Children's Services of St. Thomas and Elgin
• Family and Children's Services of Frontenac Lennox and Addington
• Family and Children's Services of Lanark Leeds and Grenville
• Family and Children's Services of Renfrew County
• Highland Shores Children's Aid Society
• Huron-Perth Children's Aid Society
• Jewish Family and Child Service of Greater Toronto
• Kawartha-Haliburton Children's Aid Society
• Kenora-Rainy River Districts Child and Family Services
• Linck, Child Youth and Family Supports
• North Eastern Ontario Family and Children's Services
• Sarnia-Lambton Children's Aid Society
• Simcoe Muskoka Child Youth and Family Services
• The Catholic Children's Aid Society of Toronto
• Valoris for Children and Adults of Prescott-Russell
• Windsor-Essex Children's Aid Society

Province of Ontario schedule 9: government business enterprises ^{footnote 67[67]}

Hydro One Limited

The principal business of Hydro One Limited is the transmission and distribution of electricity to customers within Ontario. Hydro One is Ontario’s largest electricity transmission and distribution utility and is required to deliver electricity safely and reliably to approximately 1.5 million customers across Ontario. It is regulated by the Ontario Energy Board.

iGaming Ontario

On April 4, 2022, iGaming Ontario (iGO) launched the new market for online gaming in Ontario. iGO is responsible for conducting and managing the online gaming schemes in accordance with the Criminal Code (Canada) and the Gaming Control Act, 1992.

Liquor Control Board of Ontario

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

Ontario Cannabis Retail Corporation

The Ontario Cannabis Retail Corporation, operating as the Ontario Cannabis Store (OCS), is the provincial online retailer of recreational cannabis and the exclusive wholesaler of recreational cannabis to Ontario’s authorized private retail stores.

Ontario Lottery and Gaming Corporation

The Ontario Lottery and Gaming Corporation (OLG) conducts and manages gaming on behalf of the province of Ontario, including: lottery, casinos, electronic bingo, and its internet gaming site, OLG.ca. Private service providers operate most of OLG casinos. OLG continues to integrate horse racing into its gaming strategy, including the administration of ongoing funding.

Ontario Power Generation Inc.

The principal business of Ontario Power Generation Inc. (OPG) 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.

Guide to the Public Accounts

The Public Accounts of the province of Ontario comprise this Annual Report and supplementary information.

The Annual Report includes a Financial Statement Discussion and Analysis, the Consolidated Financial Statements of the Province and other supporting schedules and disclosures.

Financial Statement Discussion and Analysis

The first section of the Annual Report is the Financial Statement Discussion and Analysis section, which:

• Compares Ontario’s financial results to both the 2022 Budget and the financial results for the previous year;
• Shows trends in key financial items and indicators of financial condition;
• Sets out key potential risks to financial results and strategies used to manage them;
• Includes descriptions of various assets and liabilities on the statement of financial position; and
• Presents non-financial activities results and discusses important initiatives related to enhancing transparency and accountability.

The Consolidated Financial Statements

The Consolidated Financial Statements show Ontario’s financial position at the end of the previous fiscal year, its financial activities during the reporting period and its financial position at the end of the reporting fiscal year. The statements are linked, and figures that appear in one statement may affect another.

Ontario’s financial statements are presented on a consolidated basis, meaning that Ontario’s statement of financial position and statement of operations reflect the combination of ministry results, as well as financial results for entities that are controlled by the government (see Note 1 to the Consolidated Financial Statements for more details). Therefore, Ontario’s reported revenues and expenses can be affected directly by the activities of ministries as well as the performance of controlled entities such as government business enterprises (GBEs) and Broader Public Sector (BPS) organizations, i.e., hospitals, school boards, colleges and children’s aid societies. In addition, Ontario’s results are also affected by transfer payments made to non-consolidated entities, such as municipalities and universities.

The financial statements comprise:

• The Consolidated Statement of Operations, which provides a summary of the Province’s revenue for the period less its expenses and shows whether the government incurred an operating deficit or surplus for the year. The results for the current year are presented along with the Budget Plan, and the financial results for the prior fiscal period. The annual surplus/deficit has an impact on Ontario’s financial position.
• The Consolidated Statement of Financial Position reports Ontario’s assets and liabilities and is also known as the balance sheet. Ontario’s total liabilities include debt and other long-term financing. Financial assets include cash, short-term investments, amounts due from others and investment in GBEs. The difference between total liabilities and financial assets is Ontario’s net debt, which provides a measure of the Province’s revenues that will be required to pay for the Province’s past transactions. Non-financial assets, mainly tangible capital assets such as highways, bridges and buildings, are subtracted from net debt to arrive at the accumulated deficit/surplus. A deficit/surplus in the year increases/decreases the accumulated deficit/surplus.
• The Consolidated Statement of Change in Net Debt, which shows how Ontario’s net debt position changed during the year. The main factors impacting net debt are the annual surplus/deficit and additions to tangible capital assets.
• The Consolidated Statement of Change in Accumulated Deficit/Surplus, which is a cumulative total of all Ontario’s annual deficits and surpluses to date. It is mainly affected by the annual surplus/deficit in a year.
• The Consolidated Statement of Cash Flow, which shows the sources and uses of cash and cash equivalents over the year. Two major sources of cash are revenues and borrowings. Uses of cash include funding for operating costs, investments in capital assets and debt repayment. The statement is presented in what is referred to as the indirect method, meaning that it starts with the annual surplus or deficit and reconciles that to the cash flow from operations by adding or subtracting non-cash items, such as amortization of tangible capital assets. It also shows cash used to acquire tangible capital assets and investments, as well as cash generated from financing activities.
• The Consolidated Statement of Remeasurement Gains and Losses, which shows the change in values of financial assets and financial liabilities arising from their remeasurement at current exchange rates and/or fair value. 

When reading the Consolidated Financial Statements, it is essential to also read the accompanying notes and schedules, which summarize Ontario’s significant accounting policies and provide additional information on underlying financial activities, market value of investments, contractual obligations and risks.

Other elements of the Annual Report

• In the Statement of Responsibility, the government acknowledges its responsibility for the Consolidated Financial Statements and the Financial Statement Discussion and Analysis. The Statement, which appears on page 2, outlines the accounting policies and practices used in preparing the financial statements and acknowledges the government’s responsibility for financial management systems and controls.
• The Auditor General’s Report, which appears on pages 49 to 55, expresses an opinion under the Auditor General Act as to whether the statements fairly present the annual financial results and financial position of the government in accordance with Canadian public sector accounting standards.

Supplementary information

The Ministry Statements and Schedules contains ministry statements and detailed schedules of debt and other items. Individual ministry statements compare actual expenses to the amounts appropriated by the Legislative Assembly. Appropriations are made through the Estimates, Supplementary Estimates and the annual Supply Act, 2022 (as modified by Treasury Board Orders), as well as other statutes and special warrants, if any. The ministry statements include amounts appropriated to fund certain provincial organizations, including hospitals, school boards, colleges and children’s aid societies. The financial results of all provincial organizations included in the government reporting entity in accordance with public sector accounting standards are consolidated with those of Ontario to produce the Consolidated Financial Statements in accordance with the accounting policies as described in Note 1 to the statements.

The Detailed Schedules of Payments contains the details of payments made by ministries to vendors (including sales tax) and transfer payment recipients that exceed certain thresholds, including: payments to suppliers of temporary help services; payments made directly to a supplier by the ministry for employee benefits; travel payments for employees; total payments for grants, subsidies or assistance to persons, businesses, non-commercial institutions and other government bodies; other payments to suppliers of goods and services; and statutory payments.

As of 2018–19, the Financial Statements of Government Organizations and Business Enterprises no longer form a part of the Public Accounts. Individual statements of significant provincial corporations, boards and commissions that are part of the government’s reporting entity, as well as other miscellaneous financial statements are available via web link to the organization’s website through ontario.ca/publicaccounts or upon request.

Glossary

Note: The definitions of the terms in the glossary are provided for clarification and assisting readers of the 2022–23 Annual Report. 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.

Accretion:

the increase in the carrying amount of a liability for asset retirement obligations due to the passage of time. Accretion expense is incurred when liability is discounted to its present value and consequently, the discount is unwound over time.

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.

Amortized Cost:

the amount at which a financial asset or a financial liability is measured at initial recognition minus principal repayments, plus or minus the cumulative amortization using the effective interest method of any difference between that initial amount and the maturity amount, and minus any reduction (directly or through the use of an allowance account) for impairment or uncollectibility. 

Appropriation:

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

Annual Report:

includes a Financial Statement Discussion and Analysis, the Consolidated Financial Statements of the province of Ontario and other supporting schedules and disclosures.

Asset Retirement Obligation(s) (ARO):

An ARO arises from a legal obligation associated with the retirement (permanent removal) of a tangible capital asset (TCA). These obligations are predictable, likely to occur and unavoidable.

Broader Public Sector (BPS):

public hospitals, specialty psychiatric hospitals, school boards, colleges and children’s aid societies. 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 (PSAB) of the Chartered Professional Accountants of Canada (CPA Canada).

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 postsecondary 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.

Consolidated Revenue Fund (CRF):

the aggregate of all public monies on deposit to the credit of the Ontario 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 for further details.

Consolidation:

the inclusion of the financial results of government-controlled organizations in Ontario’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, the contingency fund as at the end of Ontario’s fiscal year is nil. See Reserve for further details.

Contingent Liabilities:

possible obligations that may result in the future sacrifice of economic benefits arising from existing conditions or situations involving uncertainty, which 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.

Deferred Capital Contribution:

the unamortized portion of tangible capital assets or liabilities to construct or acquire tangible capital assets from specific funding received from other levels of government or third parties. Deferred capital contribution is recorded in revenue over the estimated useful life of the underlying tangible capital assets once constructed or acquired by Ontario.

Deferred Revenue:

unspent externally restricted grants from other levels of government and third parties for operating activities. Deferred revenues are recorded into revenue in the period in which the amount received is used for the purposes specified.

Deficit:

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

Derecognition:

the removal of previously recognized financial assets or financial liabilities from a government's statement of financial position. 

Derivatives:

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

Effective Interest Method:

a method used to calculate the amortized cost of a financial asset or financial liability (or group of financial assets or financial liabilities) and to allocate interest income or interest expense over the relevant period. 

Expected Average Remaining Service Life:

total number of years of future services expected to be rendered by that group of employees divided by the number of employees in the group.

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 for sale.

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 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.

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 that specifies the rate of interest, usually short term, to be paid or received on an obligation beginning at a future start date.

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, 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. Ontario 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).

Legal Obligation:

A clear duty or responsibility to another party under statute or contracts and agreements.

Liquid Reserve:

comprises cash and short-term investments managed before consolidation with other government entities. It includes cash in Ontario’s bank accounts, money market securities and long-term bonds which have not been lent out through a sale and re-purchase agreement, adjusted for net pledged collateral.

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 Ontario’s total liabilities and financial assets. It represents Ontario’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 for further details.

Non-Financial Assets:

assets that normally do not generate cash capable of being used to repay existing debts. The non-financial assets of Ontario are tangible capital assets, prepaid expenses and inventories of supplies for consumption.

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. The people of Ontario 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.

Pension Actuarial Accounting Valuation:

a valuation performed by an actuary to measure the pension benefit obligations at the end of the period or a point in time. The valuation attributes the cost of the pension benefit obligations to the period the related services are rendered by the members.

Pension Statutory Actuarial Funding Valuation:

a valuation performed by an actuary to determine whether a pension plan has sufficient money to pay for its obligations when they become due. The valuation determines the contributions required to meet the pension benefit obligations.

Portfolio Investments:

investments in organizations that do not form part of the government reporting entity.

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 Ontario along with supporting statements and schedules as required by the Financial Administration Act.

Public Private Partnership (P3):

partnerships with the private sector to expand, modernize and replace Ontario's aging infrastructure. Under P3, provincial ministries and/or project owners establish the scope and purpose of a project, while design and construction work are financed and carried out by the private sector. Typically, only after a project is completed will Ontario complete payment to the private-sector company.

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 pertain to the reserve, are recorded as expenses of that ministry. See Contingency Fund for further details.

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:

Ontario’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 Economic Outlook and Fiscal Review and the Quarterly Finances

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 Ontario Economic Outlook and Fiscal Review is a mid-year fiscal update to the expense and revenue projections of the government.

The Quarterly Finances is a 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.

For an electronic copy of the Ontario Budget, the Ontario Economic Outlook and Fiscal Review or the Ontario Quarterly Finances, visit the Ontario Ministry of Finance website.

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, 2022. For electronic access, go to the Estimates of the Province of Ontario website.

Ontario Finances

For electronic access, go to the Ontario Finances website.

Ontario Economic Accounts

This quarterly report contains data on Ontario’s economic activity. For electronic access, go to the Ontario Economic Accounts website.