Corporate Governance
OEFC is an agent of the Crown and is classified as an operational enterprise agency.
Corporate governance at OEFC involves processes that permit the effective supervision and management of activities by senior management, the Board, its Audit Committee and the Minister of Finance (the Minister). It includes identifying individuals and groups responsible for the Corporation’s activities and specifying their roles.
Accountability and Responsibilities
The OEFC’s accountability structure flows from its governing statute, the Act. The Minister is responsible for the administration of the Act in respect of OEFC. The Act and directives issued by Management Board of Cabinet, Treasury Board or the Ministry of Finance form a framework under which OEFC is governed.
Each year, the Minister is required to submit the OEFC Annual Report to the Lieutenant Governor in Council and then table the Annual Report in the Legislature. In addition, the Minister reviews and approves OEFC’s annual business plan. The Minister also maintains communications with OEFC through the Chair of the Board (the Chair) regarding government policies and expectations relevant to OEFC.
The Chair is accountable to the Minister for the performance of OEFC in fulfilling its mandate. The current Chair is also the Deputy Minister of Finance. The Chair is responsible for providing advice and information to the Minister with regard to the operation and affairs of OEFC. In addition, the Chair provides leadership and direction to the Board and the Chief Executive Officer (CEO) and ensures OEFC complies with government policies and directives. As Deputy Minister of Finance, the Chair ensures organizational capacity in the Ministry to monitor OEFC, and that it manages its risks appropriately.
The Board is appointed by the Lieutenant Governor in Council and is accountable to the Minister, through the Chair, for supervising the management of OEFC. The current Board is largely comprised of public servants employed by the Crown. The Board meets at least quarterly and receives regular reports from the CEO and staff of the OFA concerning the operations of OEFC and its compliance with applicable laws and policies. Standards of conduct for Board members are set out in a Board-approved Code of Conduct.
The Audit Committee of the Board approves an annual internal audit plan and liaises with the Corporation’s internal auditors and the Auditor General of Ontario regarding financial reporting and internal controls. It also reviews financial policies and financial statements and recommends them to the Board.
The CEO is appointed by the Lieutenant Governor in Council on the recommendation of the Minister. The CEO is accountable to the Board, including the Chair, for the day-to-day management of OEFC and for the performance of any other functions assigned by the Board. The CEO is responsible for managing the ongoing activities of OEFC. In addition, the CEO ensures OEFC’s policies and procedures remain relevant and effective.
The Corporation does not have employees, although some OFA employees are designated as officers for executing agreements and other documents on the Corporation’s behalf. The OFA carries out the Corporation’s day-to-day operations under the supervision of the CEO and the Board. In addition, the Tax Revenue Division of the Ministry of Revenue collects certain payments on behalf of OEFC.
