Minutes - July 2, 2020 - Finance & Facilities Committee Meeting

Members Present:

Ms. Maureen Cassidy
Ms. Aina DeViet
Ms. Kelly Elliott (Chair)
Mr. Ian Peer

Regrets:

Ms. Tino Kasi

Others Present:

Dr. Christopher Mackie, Secretary-Treasurer
Ms. Lynn Guy, Executive Assistant to the Medical Officer of Health (Recorder)
Ms. Laura Di Cesare, Director, Corporate Services
Mr. Brian Glasspoole, Manager Finance
Dr. Michael Clarke, VP, Modernization
Mr. Joe Belancic, Manager Procurement and Operations
Ms. Katie denBok, Lead Audit Engagement Partner, KPMG
Ms. Dania Nabhani, Audit Manager, KPMG

At 9:06 a.m., Chair Elliott called the meeting to order.

Disclosures of Conflict(S) of Interest

Chair Elliott inquired if there were any disclosures of conflicts of interest. None were declared.

Approval of Agenda

It was moved by Mr. Peer, seconded by Ms. Cassidy, that the AGENDA for the July 2, 2020 Finance and Facilities Committee meeting be approved.
Carried

Approval of Minutes

It was moved by Mr. Peer, seconded by Ms. Cassidy, that the MINUTES of the June 4, 2020 Finance and Facilities Committee meeting be approved.
Carried

New Business

4.1   2019 Draft Financial Statements (Report No. 0015-20FFC)

Mr. Glasspoole briefly walked through the Committee through the financial statements, noting that they were audited by KPMG, an independent external auditor.

Ms. Katie denBok began the conversation in regard to the audited findings by starting with the Executive Summary. She advised that once conversations with FFC are completed, a management representation letter is signed, and the Board’s sign off of the statements are received, the auditor’s report will be dated.
Ms. Dania Nabhani walked the Committee through the audit risks and results, advising that there were no significant issues to note.

Ms. denBok reviewed the appendices attached to the report:
Appendix 1: Other Required Communications – this is the management representation letter that has been provided to the Finance and Facilities Committee.
Appendix 2: Audit Quality and Risk Management – this highlights the audit quality framework that KPMG uses
Appendix 3: a copy of the management representation letter, to be signed by Dr. Mackie and Mr. Glasspoole
Appendix 4: Preparing for PSAB Standard Changes – Ms. denBok noted that in 2021 there will be new standards implemented for the public sector.
Appendix 5: Audit Response to COVID-19 Pandemic – Ms. denBok noted that the financial impact of this pandemic is noted as unknown at this time.

There was a brief discussion in regard to accrued wages and benefits under liabilities on page 4.
Ms. Elliott advised the Committee that following the Confidential portion of the meeting, FFC would participate in a confidential call with Ms. denBok in regard to the audit. As conference line was provided.

It was moved by Mr. Peer, seconded by Ms. Cassidy that the Finance and Facilities Committee recommend that the Board of Health review and approve the audited Financial Statements for the Middlesex-London Health Unit, December 31, 2019, as appended to Report No. 015-20FFC. Carried

4.2   Single Source Contracts (Report No. 016-20FFC)

Mr. Belancic spoke to this report. He noted that the HVAC Maintenance contract to Honeywell Building Solutions, and the Elevator and Service maintenance contract to Skyline Elevator are both 1-year contracts. Both of these businesses are the current providers of service and maintenance at Citi Plaza. Once as built drawings of the elevator and HVAC system are completed, both of these services will go out for competitive bid.
The third contract is for an upgrade of security and card access card readers that was awarded to JPW Systems for the Strathroy office.

It was moved by Mr. Peer, seconded by Ms. DeViet that the Finance and Facilities Committee recommends the Board of Health receive Report No. 016-20FFC, re: “Single Source Contract Awards” for information Carried

4.3 Ministry of Health Temporary Pandemic Pay Initiative (Report No. 017-20FFC)

Dr. Mackie noted that Ms. Di Cesare and Mr. Glasspoole would both assist with this report when required.

Mr. Glasspoole noted the extensive requirements that are in place to be eligible to administer the funds to employees. He noted that the interpretation of the guidelines will need to be worked through.
Ms. Di Cesare noted that while this is welcome pay, there is a lot of administrative work that will need to be done to determine how to administer the $4.00 per hour to eligible employees.
It was noted that clarity from the Ministry in regard to additional funds spent to support pandemic work will be forthcoming.

It was moved by Ms. Cassidy, seconded by Ms. De Viet that the Finance and Facilities Committee:
1. Receive Report No. 017-20FFC re: “Ministry of Health Temporary Pandemic Pay Initiative”; and
2. Direct staff to receive this funding,
Carried

4.4 Cash Flow Analysis (Report No. 018-20FFC)

Dr. Mackie noted that this morning the Committee were given a revised version of the report, advising that he changed some wording back to what was originally drafted.

Mr. Glasspoole noted the different situation with cash flow this year. Because reserve funds were used for expenses related to the move, they are not available to act as a funding buffer. Therefore, the operating cash flow is being closely monitored.
Mr. Glasspoole noted that in June the line of credit was drawn on in the amount of $400,000, to ensure an adequate cash flow to pay payroll overtime and an additional pay in the spring. The Finance Team will continue to assess the overtime salaries. They will be looking to the Ministry for additional funds.

It was moved by Ms. Cassidy, seconded by Mr. Peer, that the Finance and Facilities Committee receive Report No. 018-20FFC “Cash Flow Analysis” for information. Carried

Other Business

Next meeting: September 10, 2020 – 9:00am

Confidential

At 9:59 a.m., it was moved by Ms. Cassidy , seconded by Mr. Peer, that the Finance and Facilities Committee move in-camera to consider matters regarding a trade secret or financial information, supplied in confidence to the local board, which if disclosed, could reasonably be expected to prejudice significantly the competitive position or interfere significantly with contractual or other negotiations of a person, group of persons or organization, and a trade secret or financial information that belongs to the municipality or local board and has monetary value.
Carried

At 10:21 a.m., it was moved by Mr. Peer, seconded by Ms. Cassidy, that the Finance and Facilities Committee return to public session.
Carried

At 10:21 a.m. the Finance and Facilities Committee returned to public session.

Adjournment

At 10:22 a.m., it was moved by Ms. DeViet, seconded by Mr. Peer, that the meeting be adjourned.
Carried

At 10:22 a.m., Chair Elliott adjourned the meeting.

KELLY ELLIOTT
Chair

CHRISTOPHER MACKIE
Secretary-Treasurer