Minutes - July 7, 2022 - Finance and Facilities Committee Meeting 

Members Present:

Mr. Mike Steele (Chair)
Mr. Matt Reid
Ms. Kelly Elliott
Mr. Selomon Menghsha
Ms. Maureen Cassidy (arrived at 9:25)

Others Present:

Ms. Stephanie Egelton, Senior Executive Assistant to the Medical Officer of Health (Recorder)
Ms. Emily Williams, Chief Executive Officer
Dr. Alexander Summers, Medical Officer of Health
Mr. David Jansseune, Assistant Director, Finance
Ms. Carolynne Gabriel, Communications Coordinator and Executive Assistant to the Board of Health
Ms. Katie denBok, Partner, Audit, KPMG LLP
Ms. Aina DeViet, Board Member
Ms. Lil Marinko, Associate Manager, Vaccine Preventable Disease

At 9:03 a.m., Chair Mike Steele called the meeting to order.

Disclosures of Conflict of Interest

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

Approval of Agenda

It was moved by Ms. Kelly Elliott, seconded by Mr. Matt Reid, that the AGENDA for the July 7, 2022 Finance & Facilities Committee meeting be approved.
Carried

Approval of Minutes 

It was moved by Mr. Reid, seconded by Ms. Elliott, that the MINUTES of the June 2, 2022 Finance & Facilities Committee meeting be approved.
Carried

Confidential

At 9:04 a.m., it was moved by Mr. Reid, seconded by Ms. Elliott, that the Finance & Facilities Committee move into a confidential session to consider matters regarding a trade secret or scientific, technical, commercial, financial or labour relations information, supplied in confidence to the municipality or local board, which, if disclosed, could reasonably be expected to prejudice significantly the competitive position or interfere significantly with the contractual or other negotiations of a person, group of persons, or organization;
Carried

At 9:10 a.m., it was moved by Mr. Reid, seconded by Ms. Elliott, that the Finance & Facilities Committee rise and return to public session from closed session.
Carried

New Business

2021 Draft Financial Statements (Report No. 13-22FFC)

Ms. Emily Williams, Chief Executive Officer introduced Mr. David Jansseune, Assistant Director, Finance. The work of the Finance Team at the Health Unit and the partnership with KPMG during the audit process was acknowledged.

Ms. Katie denBok, Partner, Audit, of KPMG presented highlights of the audit:

• The financial audit of the Health Unit was completed on June 13, 2022. It is noted that the following matters are still pending: Obtaining updated legal responses, obtaining the signed management representation letter, completing discussions with the Finance and Facilities committee and obtaining evidence of the Board’s approval of the financial statements.
• 5 days after the Board approves these financial statements (after July 14, 2022), KPMG will issue a clean financial statement/auditors report.
• KPMG, in accordance with Canadian Accounting Standards, are independent to the Health Unit.
• There are no significant changes to the audit plan, no going concerns, significant risks, uncorrected audit misstatements, significant accounting policy and procedures or control deficiencies to report.
• It is noted under materiality that the Health Unit’s audit misstatement posting threshold has been set at $58,850 (2020 - $53,800).
• It is noted that there was a reclassification of financial position made, related to an amount of funds owing to the City of London ($2,189,701).
• Under risks, it was noted that KPMG rebutted the fraud risk from revenue recognition as this is not applicable to the Health Unit.
• It is noted that in 2023, there will be changes to Canadian Accounting Standards regarding asset retirement obligations and financial instruments.

Further, Ms. denBok presented highlights of the draft 2021 financial statements:
• It is noted that increased work of the Health Unit during the pandemic increased overall operations, cash, revenues and expenditures.
• Benefits/salaries increased due to operations needed to support the pandemic effort.
• Accumulated surplus is $549,917 – including $789,355 related to amortization, less tangible capital assets of $260,000.
• Revenue and expenses increased due to COVID spending and COVID funding, with the largest increase in expenditures being in salaries and materials for vaccination clinics, resulting in a small deficit of $256,494.

Mr. Jansseune noted that the deficit of $256,494 does not represent a true deficit, and is considered an accounting deficit, not a cash deficit due to differences in Public Sector Accounting Standard requirements. During Q4, the Health unit demonstrated a to the Board a balanced budget. This difference can be accounted for by the non-cash amortization of $789,355, less the purchase of capital assets, the principal payments on the bank loan, and a CitiPlaza tenant incentive.

It is noted that benefits did not increase, due to many employees being hired on contracts during the pandemic. A committee member thanked the finance team and audit partners for managing the uncertainty associated with the pandemic and ensuring appropriate financial tracking processes remained in place.

It was moved by Ms. Maureen Cassidy, seconded by Mr. Reid, that the Finance & Facilities Committee make a recommendation to the Board of Health to review and approve the audited Financial Statements for the Middlesex-London Health Unit for the year ending December 31, 2021.
Carried

Chair Steele thanked the Finance Team and Ms. denBok for their support and presentation.

Other Business

The next meeting of the Finance and Facilities Committee will be communicated at the call of the Chair.

It was also reminded to the Committee that there is a Special Meeting of the Board of Health at 10 a.m.

Adjournment 

At 9:31 a.m., it was moved by Mr. Reid, seconded by Ms. Elliott, that the meeting be adjourned.

Carried

Michael Steele
Chair

Emily Williams
Secretary