Corporate Governance
Overview
OEFC is an agent of the provincial Crown and is classified by a Management Board of Cabinet directive as a board-governed agency.
Corporate governance at OEFC involves processes that permit the effective supervision and management of OEFC’s activities by senior management, the Board, its Audit Committee, and the Minister of Finance. It includes identifying individuals and groups responsible for the Corporation’s activities and specifying their roles.
Accountability and Responsibilities
OEFC’s accountability structure flows from its governing Act (the Electricity Act, 1998). The Act, together with policies and directives issued by Management Board of Cabinet and the Minister of Finance, form a framework under which OEFC is governed.
Each year, the Minister of Finance is required to table OEFC’s Annual Report in the Legislature. In addition, the Minister of Finance reviews and approves OEFC’s annual business plan. The Minister also maintains communications with OEFC, through its Chair, regarding government policies and issues relevant to OEFC.
The Chair is appointed by the Lieutenant Governor in Council on the recommendation of the Minister of Finance, and is accountable to the Minister of Finance for the performance of OEFC in fulfilling its mandate. The Chair is responsible for providing advice and information to the Minister of Finance with regard to the operation and affairs of OEFC. In addition, the Chair provides leadership to OEFC's Board.
The Board is appointed by the Lieutenant Governor in Council on the recommendation of the Minister of Finance and is accountable to the Minister through the Chair. The Board performs a supervisory role, overseeing the management of the business and affairs of OEFC to ensure OEFC’s mandate is fulfilled. The Board is comprised of public servants. The Board meets at least quarterly and receives regular reports from the CEO and OFA staff concerning the operations of OEFC and its compliance with applicable laws and policies. Standards of conduct for directors are set out in a Board-approved Code of Conduct.
The Audit Committee of the Board reviews and recommends approval by the Board of an annual internal audit plan and liaises with OEFC’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. Another function of the Audit Committee is the review of the Corporation’s major risks and mitigation strategies.
The CEO is appointed by the Lieutenant Governor in Council on the recommendation of the Minister of Finance. The CEO works under the direction of the Chair and the Board to implement policies and operational decisions, and reports the agency’s performance to the Board through the Chair. The CEO is responsible for managing the day-to-day operations and ongoing activities of OEFC in accordance with government directives and policies.
The Corporation does not have employees, although some OFA employees are designated as officers for executing agreements and other instruments on the Corporation’s behalf. The OFA carries out the Corporation’s day-to-day operations under the supervision of the Board and pursuant to a Services Agreement between the OFA and OEFC. In addition, the Ministry of Finance collects certain payments on behalf of OEFC.
