Report No. 044-12

TO: Chair and Members of the Board of Health
FROM: Graham L. Pollett, MD, FRCPC, Medical Officer of Health
DATE:   2012 March 22

2011 BUDGET – FOURTH QUARTER FINANCIAL REVIEW

Recommendation

It is recommended that Report No. 044-12 re 2011 Budget – Fourth Quarter Financial Review be received for information.

4^th Quarter Review (2011)

The attached Budget Summary (Appendix A(PDF 31.4KB)) shows actual and budgeted expenditures net of offset revenues for the twelve month period January 1^st to December 31^st, 2011.  For the programs with a March 31^st Year-End, this report shows the actual and budgeted expenditures net of offset revenues for the nine-month period April 1^st to December 31^st, 2011.

Cost-Shared Funded Programs

For 2011, the programs that are cost-shared between the province and municipalities finished the 2011 operating year with a favourable variance of $397,068.  The variance is primarily as a result of wage and benefit savings of $635,125 resulting from the provincial Wage Restraint Act, and managing position vacancies. This was partially offset by HVAC improvements at the 50 King Street office, and purchases of computer/network hardware. Appendix B(PDF 21.4KB) provides further details of the favourable variance.

Other (100% Funded) Programs

Programs in this category are funded 100% by either by the province or by user fees such as the Dental Treatment program, or by the province.  This group of programs ended the operating year with a favourable variance of $560,258.  This variance was primarily from the Healthy Smiles Ontario (HSO) program ($287,230) and the Healthy Babies Healthy Children (HBHC) program ($204,782). 

Last year represented the first full year of the HSO program.  Slow up take in client participation / referrals generated the favourable position.  With respect to the HBHC program, $136,000 related to wage and benefit savings due to vacant positions and unpaid leave of absences.  The remaining $69,000 was due to fewer expenses relating to program travel, staff development, and program resources.

March 31^st Year-End Programs

For the March 31^st Year-End Programs, there is currently a variance of $ 108,257 which is primarily in the Infant Hearing Screening and tykeTALK programs.  This variance is primarily timing differences from when the health unit receives invoices from service providers and when they are entered into the financial system.

Summary

The Health Unit has generated a 2011 operating surplus of $397,068 from Cost-Shared Programs.  These programs are cost-shared among the Province, City of London and Middlesex County.  The amount owing to each funding partner will be known after the completion of the annual audit by KPMG which is expected to be finalized by the middle of April 2012.  It is anticipated that the March 31^st Year-End Programs will end the fiscal year in a break-even position.

Mr. John Millson, Director, Finance & Operations, will be in attendance at the March 22^nd Board of Health meeting to address any questions regarding this report.

Graham L. Pollett, MD, FRCPC

Medical Officer of Health 

This report addresses – Policy No. 4-20 Expenditure Reports as outlined in the MLHU

Administration Policy Manual.