ONTARIO A-G LYSIK BLOWING LID OFF LIBERAL ACCOUNTING

  Ontario’s Office of the Auditor-General said it uncovered irregular and improper accounting during a special audit of the Independent Electricity System Operator (IESO), a government body that manages key aspects of Ontario’s electric-power system.
   Bonnie Lysyk, the Auditor-General, informed the province’s public accounts committee last week of problems uncovered during the audit, which began late last year and is now nearly complete. Her concerns included incorrect accounting, deceptive and obstructive behaviour by the IESO’s board and management, and poor financial controls. If the improper accounting isn’t corrected, Ms. Lysyk warned, she might issue an adverse opinion on Ontario’s public accounts—the first such opinion on any government’s financial statements in Canadian history.
  It’s the latest development in a year-long showdown between the Auditor-General, the IESO and the provincial government over the Fair Hydro Plan, which introduced significant, temporary reductions to Ontarians’ electricity bills. Ms. Lysyk alleged the scheme’s financial and accounting structure was designed to avoid reporting the costs of rate reductions on Ontario’s public accounts, thus allowing the government to falsely claim it had a balanced budget. As of the end of last year, she estimated, Ontario’s deficit would be understated by more than $1.3 billion—an amount that will continue to grow.