Responsibility for financial reporting

Management and the Board of Directors are responsible for the financial statements presented. The financial statements have been prepared by management in accordance with Canadian public sector accounting standards. The preparation of financial statements necessarily involves the use of estimates based on management's judgement. The financial statements have been properly prepared with reasonable limits of materiality and in light of information available up to May 15, 2023.

Management maintains a system of internal controls designed to provide reasonable assurance that the assets are safeguarded and that reliable financial information is available on a timely basis. The system includes formal policies and procedures and an organizational structure that provides for appropriate delegation of authority and segregation of responsibilities.

These financial statements have been audited by the Auditor General of Ontario. The Auditor General's responsibility is to express an opinion on whether the financial statements are fairly presented in accordance with Canadian public sector accounting standards. The Auditor's Report, which appears on the following page, outlines the scope of the Auditor General's examination and his opinion.

On behalf of management

Patricia Perez signature

Patricia Perez
Chief Administrative Officer/Assistant Deputy Minister
Ministry of Labour, Immigration, Training and Skills Development

Independent auditor’s report

To the Ministry of Labour, Immigration, Training and Skills Development

Opinion

I have audited the financial statements of the Ontario Immigrant Investor Corporation (Corporation), which comprise the statement of financial position as at March 31, 2023, and the statements of operations and accumulated surplus, changes in net financial assets and cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.

In my opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Corporation as at March 31, 2023, and the results of its operations, changes in its net financial assets and its 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 Responsibilities for the Audit of the Financial Statements section of my report. I am independent of the Corporation in accordance with the ethical requirements that are relevant to my audit of the 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.

Emphasis of matter – Dissolution of corporation

I draw attention to Note 1 of the financial statements, which describes the dissolution of the Corporation effective March 31, 2023. My opinion is not modified in respect of this matter.

Responsibilities of management and those charged with governance for the financial statements

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

In preparing the financial statements, management is responsible for assessing the Corporation’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Corporation either intends to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Corporation’s financial reporting process.

Auditor’s responsibilities for the audit of the financial statements

My objectives are to obtain reasonable assurance about whether the 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 the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these 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 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 Corporation’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 Corporation’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 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.
  • evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

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 that I identify during my audit.

Susan Klein signature

Susan Klein, CPA, CA, LPA
Assistant Auditor General

Toronto, Ontario
May 15, 2023

Statement of financial position as at March 31, 2023

Financial assets
 2023 ($ 000)
Note 3
2022 ($ 000)
Cashnil795
Investments (note 4)nil38,654
Total financial assetsnil39,449
Liabilities and accumulated surplus
 2023 ($ 000)2022 ($ 000)
Repayable provincial allocations (note 5)nil161
Total liabilitiesnil161
Net financial assets
 2023 ($ 000)2022 ($ 000)
Net financial assetsnil39,288
Non-financial assets
 2023 ($ 000)2022 ($ 000)
Deferred commission chargesnil1
Accumulated surplus
 2023 ($ 000)2022 ($ 000)
Accumulated surplusnil39,289

See accompanying notes to financial statements.

Patricia Perez signature

Patricia Perez
Chief Administrative Officer/Assistant Deputy Minister
Ministry of Labour, Immigration, Training and Skills Development

Statement of operations and accumulated surplus for the year ended March 31, 2023

Revenue
 2023 Budget ($ 000)2023 Actuals ($ 000)2022 Actuals ($ 000)
Interest income36868497
Miscellaneous incomenilnil10
Total368684107
Expenses (Note 6)
 2023 Budget ($ 000)2023 Actuals ($ 000)2022 Actuals ($ 000)
Investment management fee (Note 4)1723
Amortization of deferred commission charges111
Total1834
Excess of revenue over expenses from operations
 2023 Budget ($ 000)2023 Actuals ($ 000)2022 Actuals ($ 000)
Excess of revenue over expenses from operations350681103
Payment to the province (Note 3)
 2023 Budget ($ 000)2023 Actuals ($ 000)2022 Actuals ($ 000)
Payment to the province (Note 3)nil(39,970)nil
Excess of (expenses over revenue) revenue over expenses
 2023 Budget ($ 000)2023 Actuals ($ 000)2022 Actuals ($ 000)
Excess of (expenses over revenue) revenue over expenses350(39,289)103
Accumulated surplus, beginning of year
 2023 Budget ($ 000)2023 Actuals ($ 000)2022 Actuals ($ 000)
Accumulated surplus, beginning of year39,28939,28939,186
Accumulated surplus, end of year
 2023 Budget ($ 000)2023 Actuals ($ 000)2022 Actuals ($ 000)
Accumulated surplus, end of year39,639nil39,289

See accompanying notes to financial statements.

Statement of changes in net financial assets for the year ended March 31, 2023

Excess of (expenses over revenue) revenue over expenses
 2023 Budget ($ 000)2023 Actuals ($ 000)2022 Actuals ($ 000)
Excess of (expenses over revenue) revenue over expenses350(39,289)103
Amortization of deferred commission charges
 2023 Budget ($ 000)2023 Actuals ($ 000)2022 Actuals ($ 000)
Amortization of deferred commission charges111
Increase / (decrease) in net financial assets
 2023 Budget ($ 000)2023 Actuals ($ 000)2022 Actuals ($ 000)
Increase / (decrease) in net financial assets351(39,288)104
Net financial assets, beginning of year
 2023 Budget ($ 000)2023 Actuals ($ 000)2022 Actuals ($ 000)
Net financial assets, beginning of year39,28839,28839,184
Net financial assets, end of year
 2023 Budget ($ 000)2023 Actuals ($ 000)2022 Actuals ($ 000)
Net financial assets, end of year39,639nil39,288

See accompanying notes to financial statements.

Statement of cash flows for the year ended March 31, 2023

Cash provided by (used in) operating activities
 2023 ($ 000)2022 ($ 000)
Interest received72548
Miscellaneous incomenil10
Investment management fees paid(2)(4)
Total72354
Cash (used in) provided by investing and financing activities
 2023 ($ 000)2022 ($ 000)
Provincial allocations repaid(161)(1,816)
Payment to the province (Note 3)(39,970)nil
Total(40,131)(1,816)
Cash (used in) provided by investing and financing activities
 2023 ($ 000)2022 ($ 000)
Investments matured193,666155,615
Investments purchased(155,053)(153,708)
Total38,6131,907
Net increase (decrease) in cash
 2023 ($ 000)2022 ($ 000)
Net increase (decrease) in cash(795)145
Cash, beginning of year
 2023 ($ 000)2022 ($ 000)
Cash, beginning of year795650
Cash, end of year
 2023 ($ 000)2022 ($ 000)
Cash, end of yearnil795

See accompanying notes to financial statements.

Notes to financial statements March 31, 2023

(In thousands of dollars)

1. Nature of the Corporation

The Ontario Immigrant Investor Corporation (Corporation) was established as a corporation without share capital on April 30, 1999 pursuant to Ontario Regulation 279/99 made under the Development Corporations Act.

The Corporation was established in order to participate in a federal Immigrant Investor Program (IIP). Under the IIP, each participating province established a vehicle to receive and invest immigrant investor dollars for the purposes of creating or continuing employment in Canada in order to foster the development of a strong and viable economy. Each participating province, in turn, guarantees immigrant investors that their investment will be repaid after five years with no interest.

The 2014 federal budget announced the termination of the IIP with a commitment to process applications that were received prior to February 11, 2014. In July 2017, Ontario received approval to suspend the receipt of monies from the federal government.

The Corporation was dissolved on March 31, 2023 pursuant to Ontario Regulation 59/23 under the Development Corporations Act and on April 1, 2023, Regulation 279/99 was revoked.

2. Significant accounting policies

(A) Basis of accounting

These financial statements have been prepared by management in accordance with Canadian public sector accounting standards.

(B) Revenue recognition

Accrued interest is recognized as earned and amounts not yet received are included in the carrying value of investments. Revenue when received is recognized at cost. Miscellaneous income includes a recovery of commission expense previously paid.

(C) Financial instruments

A financial instrument is an asset or liability that will ultimately be settled in cash. The corporation's financial assets and financial liabilities are accounted for as follows:

  • Cash is recorded at cost, which approximates fair value due to the short-term nature of these instruments.
  • Investments are initially recorded at cost and subsequently recorded at cost plus accrued interest earned to date.
  • Repayable provincial allocations are originally recorded at the actual amounts received and remain at those amounts until repaid due to the interest-free nature of the debt. They have not been discounted to reflect fair value.

The Corporation does not use derivative financial instruments.

(D) Deferred commission charges

Commissions paid to intermediaries, for introducing new immigrant investors, are deferred and amortized to expense on a straight-line basis over the same period as the related Repayable Provincial Allocation beginning in the fiscal year when the allocation is received. If the application for permanent residence is withdrawn by the immigrant investor or denied by the federal government, the Corporation recovers the commission in the year when this occurs. The deferred charges represent the unamortized balance of the commissions.

3. Payment to the province

Prior to its dissolution, the Corporation transferred all its funds, which totalled $39,970, to the Province.

4. Investments

The Corporation’s portfolio of investments was managed by the Ontario Financing Authority (OFA), a related party, in accordance with the terms and conditions set out in an agreement signed between the OFA, the Corporation and the Province. The OFA received an investment management fee of 0.2% of the average par value or face value of the investments outstanding during the year for performing these services.

The Corporation’s Treasury Bills earn nominal interest and were renewed on short-term 90-day periods, unless funds were needed by the Corporation. For the fiscal year 2023, these Treasury Bills had a weighted average yield of 1.98% per annum (2022 – 0.17%). The fixed income securities had a weighted average yield of 2.02% (2022 – 1.44%).

Prior to the Corporation’s dissolution, all remaining investments matured in full and the related proceeds of $39,164 were included in the transfer to the Province, as described in Note 3.

The investments balance which includes accrued interest is broken down as follows:

 March 31, 2023 cost ($ 000)March 31, 2023 market ($ 000)March 31, 2022 cost ($ 000)March 31, 2022 market ($ 000)
Fixed income bondsnilnil164150
Treasury billsnilnil38,49038,490
Totalnilnil38,65438,640

5. Repayable provincial allocations

The Corporation incurred long-term obligations from funds received under the federal Immigrant Investor Program (IIP) in accordance with the terms and conditions set out in agreements signed in June 1999 and June 2011 between the federal Minister of Citizenship and Immigration and the Corporation. The agreement states that the federal Minister, as agent of the Corporation, receives funds from immigrant investors and transfers Ontario’s share of the funds (Provincial Allocation) to the Corporation. As a result of the termination of the IIP, the final payment of $161 was made in June 2022.

6. Administration support services

Business support, strategic management services and other administrative support, including accommodation, financial, legal and human resource services is provided by the Ministry of Labour, Immigration, Training and Skills Development and the Ministry of Economic Development, Job Creation and Trade without charge.