Minutes - May 11, 2023 - Finance and Facilities Committee Meeting 

Members Present:

Matthew Newton-Reid (Chair)
Michael Steele (Vice-Chair)
Selomon Menghsha
Michael McGuire
Emily Williams, Chief Executive Officer (ex-officio)
Dr. Alexander Summers, Medical Officer of Health (ex-officio)

Others Present:

Stephanie Egelton, Executive Assistant to the Board of Health (recorder)
David Jansseune, Assistant Director, Finance
Warren Dallin, Manager, Procurement and Operations
Andrew Powell, Manager, Safe Water, Rabies and Vector-Borne Disease (exited at 9:05)
Cynthia Bos, Manager, Human Resources
Carolynne Gabriel, Executive Assistant to the Medical Officer of Health

At 9 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 M. Reid, seconded by M. McGuire, that the AGENDA for the May 11, 2023 Finance & Facilities Committee meeting be approved.
Carried

Approval of Minutes 

It was moved by S. Menghsha, seconded by M. Reid, that the MINUTES of the March 9, 2023 Finance & Facilities Committee meeting be approved.
Carried

New Business

Vector-Borne Disease Program: Contract Extension (Report No. 06-23FFC)

Emily Williams, Chief Executive Officer introduced Warren Dallin, Manager, Procurement and Operations and Andrew Powell, Manager, Safe Water, Rabies and Vector-Borne Disease to present the report on the larvicide contract extension within the Vector-Borne Disease program.

W. Dallin provided a background on the report. It was noted that this report was to seek consent to extend previous contracts with Canadian Centre for Mosquito Management and Entomogen for larviciding products. A Request for Proposal (RFP) was issued in 2021 to deliver services for the Vector-Borne Disease program.
The existing contract included an option for a third-year extension of product and services at the original quoted pricing. Both suppliers have agreed to hold 2021 pricing for 2023 services.

It was moved by M. McGuire, seconded by M. Reid, that the Finance & Facilities Committee recommend to the Board of Health to:
1) Receive Report No. 06-23FFC re: Vector-Borne Disease Program: Contract Extension;
2) Approve extension of the existing contract for the Vector Borne Disease Program, Part A - Larval Mosquito Surveillance & Control, to Canadian Centre for Mosquito Management (CCMM) Inc. in the amount of $89,460 (before taxes) and $4,008 (before taxes) for supply of mosquito larvicide; and
3) Approve extension of the existing contract for the Vector Borne Disease Program, Part B - Mosquito Identification and Viral Testing, to Entomogen Inc. in the amount of $21,025 (before taxes).
Carried

Committee Member Selomon Menghsha inquired how the larviciding program is conducted, and how the products the Health Unit is purchasing work. Andrew Powell, Manager, Safe Water, Rabies and Vector-Borne Disease explained the process of larviciding. The first part of the contract services (with Canadian Centre for Mosquito Management) is for larvacide within catch basins, where mosquitos lay eggs. The contracted operator will distribute the larvacide in these catch basins. The second part (with Entomogen) is the identification of any vector-borne disease within the approximately twenty (20) mosquito traps throughout the community.

A. Powell exited the meeting at 9:05 a.m.

2023 Q1 Financial Update and Factual Certificate (Report No. 07-23FFC)

David Jansseune, Assistant Director, Finance to present the 2023 Q1 Financial Update and Factual Certificate. D. Jansseune provided the Committee with a presentation.

General Updates

D. Jansseune noted that there is limited information available for the Q1 report because resources were prioritized to 2022-year end, audit prep, 2023 budget, Annual Service Plan and system set up from staffing review. Salaries and benefits have been posted in the report and represent 80% of the overall budget. Q1 reporting is not sent to the Ministry of Health – only Q2, Q3 and Q4 is required for reporting purposes. It was further noted that any surplus from mandatory programs (under the Ontario Public Health Standards) will be used to pay COVID-19 related expenses which will lower those expenses and reduce the amount of COVID-19 funding received.

D. Jansseune provided a brief update on the 2022 audit. Auditors from KPMG began their work last week and are continuing this week to audit 2022 (January to December). The June 8 Finance and Facilities Committee meeting will include final 2022 financials, audited financial statements and auditors at the meeting for discussion.

Ministry of Health Updates

D. Jansseune provide funding updates from the Ministry of Health as of May 4, 2023. The following information on upcoming funding was provided:
• Approved funding for mandatory programs is estimated to be released to public health units in mid-summer.
• Mitigation funding for public health units has been approved until December 31, 2023 with no further information on extension.
• School Focused Nurses Initiative funding has been approved until June 30, 2023 with no further information on extension. It was noted that this funding could come from mandatory programming or COVID-19 (only if the work is COVID-19 related).
• COVID-19 funding will likely be withheld until public health units have incurred related expenses. It is expected that COVID-19 work will be a part of public health work going forward, and the Ministry desires a significant reduction from 2022.
• The Annual Reconciliation Report will be provided by the Ministry, with a due date for public health units to report in mid-summer.

Q1 Financial Highlights – Salaries and Benefits (MLHU)

D. Jansseune provided the following highlights of the Q1 report (salaries and benefits only):
• Shared funding programs totals $763,403 (favourable) and includes:
o Approximately $621,000 in vacancies (favourable).
o Approximately $109,000 in budgeted increases (January to March) that were implemented April 1st (favourable).
o $31,139 in overtime (unfavourable).
o $64,308 in benefits (favourable).
• The contribution to the planned gap is $414,431 this quarter, with an annual gap target of $1,539,315.
• The sub-total is approximately $349,000 (favourable).
• The 100% funded programs total $625,889 (favourable) and includes:
o COVID-19: $342,207 (favourable) and based on Q1, the 2023 budget of $10.7 million should be sufficient.
o School Focused Nurses Initiative: $27,894 (favourable), with the budget being based on $1.4 million with 16 FTE.
o Seniors Dental Program: $219,962 (favourable), and the budget was created to represent operations for the full year, though Strathroy clinic is not yet operating.
o CLIF – City of London Funding for Cannabis Legalization: $36,827 (favourable) with expected spending.
o Strathroy Capital (dental clinic) renovations are proceeding with an anticipated completion date of June/July, with spending within the approved funding of $1,050,100.
• The Q1 total is $974,861 (favourable) for salaries and benefits.

Cashflow (Bank Balances)

D. Jansseune noted the following status update on bank balances at the Health Unit:
• January 1 opening was $4.2 million positive.
• Q1, March 31 closing was $5.6 million positive.
• As of April 28, the bank balance is $5.0 million positive.
• As of March 31, the fixed loan is $3,050,000, with $2,773,000 owing and the variable loan is $1,150,000 with $1,021,000 owing.

Forecast

D. Jansseune provided an overview of the new forecast model due to a divisional restructure (Office of the Medical Officer of Health and the new Public Health Foundations division) for future budgets.

The 2023 approved budget noted the following approved programs and program divisions:

Office of the Medical Officer of Health
• 801 – Office of the MOH
• 808 – Emergency Management
• 839 – Population Health Assessment & Surveillance
• 840 – Associate Medical Officer of Health
• 841 – Program Planning and Evaluation
• 842 – Library Services
• 852 – Chief Nursing Officer & Professional Practice
• 854 – Health Equity

New approved programs and program divisions:

Office of the Medical Officer of Health

• 801 – Office of the MOH
• 840 – Associate Medical Officer of Health
• 852 – Chief Nursing Officer & Professional Practice

Public Health Foundations
• 855 – Office of the Public Health Foundations
• 808 – Emergency Management
• 839 – Population Health Assessment & Surveillance
• 841 – Strategy, Planning and Performance
• 842 – Library Services
• 854 – Health Equity & Indigenous Reconciliation

D. Jansseune concluded that the factual certificate has been provided to the Committee with minimal changes from the previous quarter.

Committee Member Michael McGuire inquired on the reason for the new Public Health Foundations division.

Dr. Alexander Summers, Medical Officer of Health explained that since 2022, the Health Unit has been creating a new division to solely focus on the foundational standards work outlined in the Ontario Public Health Standards (Foundational Standards section). Previously, the work was consolidated within the Office of the Medical Officer of Health and it was determined a division to conduct this week solely was needed. In October 2022, an acting Director of the Office of the Medical Officer of Health was implemented, with the program areas of Population Health Assessment and Surveillance, Program Planning and Evaluation, and Health Equity reporting to the Director.

Dr. Summers added that under the Ontario Public Health Standards, Foundational Standards section, the program areas which are reflected in the standards are also now reflected at the Health Unit in the new Public Health Foundations division. With the new division, the acting Director was made a permanent role to ensure a voice for public health foundations at the Senior Leadership Team.

It was moved by M. McGuire, seconded by S. Menghsha, that the Finance & Facilities Committee review and recommend to the Board of Health to receive Report No. 07-23FFC re: “2023 Q1 Financial Update and Factual Certificate” for information.
Carried

Insurance Policies (Report No. 08-23FFC)

D. Jansseune presented the report on insurance policies.

D. Jansseune noted that general insurance rates (through Intact Canada) have increased by 37.4% from $104,672 to $143,813 and cyber insurance rates (through CFC United Kingdom) has also increased by 35.2% from $36,990 to $50,000. The combined insurance cost is $193,813 against a budget of $170,400. The Health Unit is limited to tender for cyber insurance providers as there are not many cyber insurance providers.

Committee Member S. Menghsha inquired why the Health Unit was using an insurance provider outside of Canada for cyber insurance. E. Williams explained that the previous insurance provider for cyber insurance (Frank Cowan) was bought out by CFC United Kingdom, with underwriting being conducted by Lloyd’s of London.

E. Williams further noted that the health sector in recent years is very vulnerable to cyber-attacks and this insurance is critical to operations in conjunction with effective training on cyber security by staff and support from the Information Technology team.

It was moved by M. McGuire, seconded by M. Reid, that the Finance & Facilities Committee review and recommend to the Board of Health to receive Report No. 08-23FFC re: “Insurance Policies” for information.
Carried

Employee and Family Assistance Program (EFAP) Services Contract Extension (Report No. 09-23FFC)

E. Williams introduced Cynthia Bos, Manager, Human Resources to present the report on the Employee and Family Assistance Program (EFAP) contract extension.

C. Bos noted that the contract for Homewood Health was extended by the Health Unit for an additional year. These services were originally recommended by an internal employee committee through an RFP process and selected Homewood Health as the Service Provider for the Employee and Family Assistance Program (EFAP). The value of the contract $26,208 per year based on an estimated utilization rate of 20%. There has been a 0% increase in contract costs and usage has been exceeding 20% in the past few years.

E. Williams added that in a recent meeting with the Health Unit’s benefits broker (AON), the extension of Homewood Health would align with expiration of employee benefit contract with Canada Life, and the Health Unit would go to market in 2024 for potential providers.

It was moved by M. McGuire, seconded by S. Menghsha, that the Finance & Facilities Committee recommend to the Board of Health to receive Report No. 09-23FFC: “Employee and Family Assistance Program (EFAP) Services Contract Extension” for information.
Carried

Other Business

The next meeting of the Finance and Facilities Committee will be held on Thursday, June 8, 2023 at 9 a.m.

Adjournment 

At 9:34 a.m., it was moved by M. McGuire, seconded by S. Menghsha, that the meeting be adjourned.
Carried

Michael Steele
Committee Chair

Emily Williams
Secretary