Corporate Governance

The OEFC is an agent of the Crown and is classified as an operational enterprise agency.

Corporate governance at the OEFC involves processes that permit the effective supervision and management of activities by senior management, the Board of Directors, its Audit Committee and the Minister of Finance. It includes identifying individuals and groups responsible for the Corporation’s activities and specifying their roles. The governance framework is based on Management Board of Cabinet’s (MBC) Agency Establishment and Accountability Directive.

Accountability and Responsibilities

The OEFC’s accountability structure flows from its governing statute, the Electricity Act, 1998 (the Act). The Minister of Finance is the minister responsible for the administration of the Act in respect of the OEFC. The Act, together with a Memorandum of Understanding (MOU) between the OEFC and the Minister of Finance and directives issued by Management Board of Cabinet (MBC) relating to Crown agencies, form a framework under which the OEFC is governed.

Each year, the Minister is required to submit the OEFC’s Annual Report to the Lieutenant Governor in Council and then table the report in the Legislature. In addition, the Minister reviews and approves the annual business plan and recommends the plan for approval to MBC every three years or as otherwise required by government directives. The Minister also maintains communications with the OEFC through the Chair of the Board of Directors (the Chair) regarding government policies and expectations relevant to the OEFC.

The Chair is accountable to the Minister of Finance for the performance of the 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 the OEFC. In addition, the Chair provides leadership and direction to the OEFC’s Board of Directors and the Chief Executive Officer (CEO) and ensures that the OEFC complies with governmental policies and directives.

The Board of Directors is appointed by the Lieutenant Governor in Council and is accountable to the Minister through the Chair for supervising the management of the OEFC. The current Board of Directors is 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 Ontario Financing Authority concerning the operations of the 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 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 of Finance. The CEO is accountable to the Chair for the day-to-day management of the OEFC and for the performance of any other functions assigned by the Board of Directors. The CEO is responsible for managing the ongoing activities of the OEFC. In addition, the CEO ensures that the OEFC’s policies and procedures remain relevant and effective.

The Corporation does not have employees, although some Ontario Financing Authority employees are designated as officers for executing agreements and other documents on the Corporation’s behalf. The Ontario Financing Authority carries out the Corporation’s day-to-day operations under the supervision of the CEO and the Board. In addition, the Act provides that OEFC is entitled to receive certain payments, which are collected for the benefit of OEFC by the Tax Revenue Division of the Ministry of Revenue.