34 Ontario Clean W ater Agency 2012 Annual Report 6 NET ASSETS When the Agency was frst established the opening net assets wer e r eceived fr om the Pr ovince of Ontario in the form of the book value of net assets in excess of obligations assumed Subsequent adjustments to the opening balance r elate to r epairs and maintenance and legal costs that wer e agr eed to prior to the establishment of the Agency 7 CONTINGENCIES a Litigation The Agency is the defendant in a number of lawsuits Most of these claims ar e cover ed by insurance after the application of a deductible ranging fr om 5000 to 100000 depending on when the event giving rise to the claim occurr ed and the natur e of the claim The outcome of the lawsuits cannot be determined at this time b Letters of Cr edit The Agency has a line of cr edit with the Royal Bank of Canada for 100 million This line of cr edit has been used to pr ovide letters of cr edit to municipalities in accor dance with the terms of their operations and maintenance agr eements As of December 31 2012 nothing has been drawn on the letters of cr edit 8 RELA TED P AR TY TRANSACTIONS a NonPension Employee Futur e Benefts The Agency is r esponsible for its accrued legislated severance unpaid vacation and workers compensation obligations The costs of these employee futur e benefts obligations have been estimated at 136 million 2011 127 million of which 27 million 2011 26 million has been classifed as curr ent liability The amount charged to the income statement in 2012 was 18 million 2011 09 million and is included in salaries and benefts expense in the Statement of Operations and Changes in Net Assets Included in employee futur e benefts obligation is an estimated workers compensation obligation in the amount of 24 million 2011 21 million This amount has been determined fr om the most r ecent available actuarial calculations pr ovided by the W orkplace Safety and Insurance Boar d WSIB as at December 31 2011 It is management s opinion that the balance at December 31 2012 will not be materially dif fer ent Adjustment to the estimated WSIB obligation cumulative balance if any will be made in the year the updated balance is pr ovided by WSIB The cost of other postr etir ement nonpension employee benefts is paid by the Pr ovince and ther efor e is not included in the fnancial statements