Minutes - August 4, 2022 - Finance and Facilities Committee Meeting 

Members Present:

Mr. Mike Steele (Chair)
Mr. Matt Reid
Ms. Maureen Cassidy
Mr. Selomon Menghsha (arrived 9:06 a.m.)

Regrets:

Ms. Kelly Elliott

Others Present:

Ms. Stephanie Egelton, Senior Executive Assistant to the Medical Officer of Health (Recorder)
Ms. Emily Williams, Chief Executive Officer
Mr. David Jansseune, Assistant Director, Finance
Ms. Carolynne Gabriel, Communications Coordinator and Executive Assistant to the Board of Health
Ms. Mary Lou Albanese, Director, Environmental Health and Infectious Diseases

At 9:02 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 Mr. Matt Reid, seconded by Ms. Maureen Cassidy, that the AGENDA for the August 4, 2022 Finance & Facilities Committee meeting be approved.
Carried

Approval of Minutes 

It was moved by Ms. Cassidy, seconded by Mr. Reid, that the MINUTES of the July 7, 2022 Finance & Facilities Committee meeting be approved.
Carried

New Business

2022 Q2 Financial Update and Factual Certificate (Report No. 14-22FFC)

Ms. Emily Williams, Chief Executive Officer introduced Mr. David Jansseune, Assistant Director, Finance.

Ms. Williams recognized and acknowledged the Health Unit’s Finance team for their timeliness and efforts for Q2 reporting, as it is improving the Senior Leadership Team’s ability to make financial decisions in a timely way.

Mr. Jansseune shared the Q2 Financial Update and Factual Certificate in the following quadrants: forecast, variance analysis, revenue, including 100% funded programs, and cashflow.

Variance Analysis

The Health Unit’s Shared Funding Programs were $1.9 million, and favourable to the budget. This included $559,251 (total $991,748) for the Nurses Retention Incentive. Salaries and benefits were favourable to the budget, due to vacancies (temporary contracts and attrition) despite unfavourable overtime costs due to efforts related to the pandemic and recovery projects. General health unit expenses such as professional services and program materials were favourable due to reduced spending as a result of the pandemic.

The Health Unit’s COVID-19 Programs (COVID-19 Case and Contact Management and COVID-19 Vaccine) were approximately $4.4 million unfavourable to the budget. 50% of the approved budget created a $6.5 million unfavourable variance due to the timing of funding from the Ministry of Health being received. In addition, there is increased spending at COVID-19 Vaccine Clinics which was partially offset by decreased spending in COVID-19 Case and Contact Management. Overtime spending was split across COVID-19 clinics and the COVID-19 Case and Contact Management teams, causing an approximate $779,000 unfavourable variance because overtime was unbudgeted for Case and Contact Management.

Forecast

Salaries for Shared Funding Programs are forecasted using Q2 department vacancy rates in Q3 and planning for full complement for Q4. COVID-19 Vaccine Clinics have increased spending (similar to Q1 and Q2) and COVID Case and Contact Management are forecasted at 75% of Q1 and Q2 spending. Shared Funding Programs are forecasting a surplus of approximately $862,961. COVID-19 programming is forecasting a deficit of $9.9 million, based on the current funding rate of 50% of program budget.

100% Funded Programs

It was noted that the Nurses Retention Incentive will be flowed through and offset with approximately $992,000 in total funding. The payments to MLHU eligible nurses may be split into installments due to concerns of maximizing income tax claims.

The Health Unit receives funding from the City of London’s Cannabis-Tobacco Enforcement initiative (CLIF). $415,798 in funding was received, with $89,701 spent as of June.

It was noted that the Health Unit received $1,643,700 in funding for school focused health nurses. Due to the current low forecasted spend for the year, it is anticipated that the Ministry will be clawing back these funds in October 2022.

Ms. Williams provided updates on the Seniors Dental Program, for which the Health Unit received $1,050,100 of additional operating funds, in addition to capital fundingMs. Williams noted that the Health Unit is looking into spaces in Strathroy, which included a site visit with a dental consultant. Their report on a potential space was favourable and feasible, and the site project launches on August 8.

COVID-19 funding was approved for $13.6 million, with forecasted expenses of $23.5 million. It was also noted that the Ministry of Health has approved mandatory program surplus to be used for recovery or special projects within public health.

Ms. Williams noted that vacancies are evident at the Health Unit, as temporary contracts are difficult to recruit for. Nursing and Health Inspectors have the largest vacancies, as health human resources are limited. There is a push within the College of Nurses to bring internationally trained nurses to Ontario, but this takes time. There is ongoing advocacy to ministrypartners for improved access to health human resources.

Ms. Williams added that in regard to COVID-19 funding, it is highly likely that 2022 spend will be covered but there is no certainty for 2023. In order to be considered for funding, health units submit a budget for their COVID-19 program (including case and contact management and vaccine clinics). The Health Unit’s budget to date for COVID-19 is $29 million, forecasted to $25 million with a $9.1 million shortfall. It is projected that these funds will be needed in 2023, due to expansion of vaccine availability. The COVID-19 Case and Contact Management program costs have been reduced as the team has adapted to current needs and changing guidance from the Ministry.

Mr. Jansseune concluded with an overview of the Health Unit’s cashflow at the time of the meeting:
- As of June 30, $4.1 million positive in cash.
- Q1 cash depleted due to no COVID funding.
- Q2 cash replenished due to receipt of COVID funding to $6.8 million.
- It is forecasted that there will be further COVID funding received, making cash approximately $9.1 million in December.
- Current bank loan has $3.9 million owing, with payback over 20 years at $260,000 per year.

It was moved by Ms. Cassidy, seconded by Mr. Reid, that the Finance & Facilities Committee make a recommendation to the Board of Health to receive Report No. 14-22FFC re: “2022 Q2 Financial Update and Factual Certificate” for information.
Carried

Other Business

It was moved by Ms. Cassidy, seconded by Mr. Reid, that the Finance & Facilities Committee cancel the September 1, 2022 Finance and Facilities Committee meeting.
Carried

The next Finance and Facilities Committee meeting will be held Thursday, October 6 at 9 a.m.

Adjournment 

At 9:27 a.m., it was moved by Mr. Reid, seconded by Mr. Selomon Menghsha, that the meeting be adjourned.

Carried

Michael Steele
Chair

Emily Williams
Secretary