September 5, 2013 - Finance & Facilities Committee Minutes

Committee Members Present

Mr. David Bolton
Ms. Denise Brown (arrived 9:25 a.m. left 10:25 a.m.)
Ms. Trish Fulton (Chair)
Mr. Marcel Meyer
Mr. Ian Peer

Others Present

Mr. Al Edmondson, Board of Health Member (left 10:35 a.m.)
Mr. Dan Flaherty, Manager, Communications
Dr. Christopher Mackie, Medical Officer of Health & CEO (Secretary-Treasurer for Board of Health)
Mr. John Millson, Director, Finance and Operations
Ms. Sherri Sanders, Executive Assistant to the Board of Health (Recorder)
Maria Van Harten, Dental Consultant (arrived 10:45 a.m. left 11:50 a.m.)
Dr. Bryna Warshawsky, Associate Medical Officer of Health and Director, Oral Health, Communicable Disease & Sexual Health Services (left 11:50 a.m.

Media Outlets

none

At 9:05 a.m., Ms. Trish Fulton, Committee Chair, welcomed everyone to the Finance and Facilities Committee (FFC) meeting.

Disclosures of Conflict(s) of Interest

Chair Fulton inquired if there were any disclosures of conflict of interest to be declared. None were declared.

Approval of Agenda

It was moved by Mr. Peer, seconded by Mr. Bolton that the agenda be accepted as circulated.
Carried

Approval of Minutes

It was moved by Mr. Bolton, seconded by Mr. Peer that the minutes from the August 1, 2013 meeting be approved.
Carried

Chair Fulton highlighted that the Terms of Reference for the committee were discussed at the August meeting. Dr. Chris Mackie, Secretary-Treasurer, reported that the Terms of Reference will be attached to the June 20, 2013 Board of Health meeting minutes.

Business

2013 Provincial Grant Approval (Report No. 004-13C)

Mr. John Millson, Director, Finance and Operations, assisted Committee members with their understanding of this report. Mr. Millson highlighted that the Health Unit received a 2% increase from 2012’s Provincial Grant. The Health Unit did request that the province contribute 75% to the cost-shared programs; however, this amount was not granted. Mr. Millson also noted that there were funding reductions in Healthy Smiles Ontario (HSO), Children in Need of Dental Treatment Expansion (CINOT) and the Panorama project. Staff members will report at a future Finance and Facilities Committee (FFC) meeting about how the Panorama funding will be utilized. Mr. Millson reported that the Health Unit received one-time funding to cover 75% of cost of the Shared Services Review conducted by PricewaterhouseCoopers (PwC).

Discussion ensued about the challenges faced by the Health Unit, because the grants are not announced until well into the current year (e.g., 2013 provincial grant announced in August 2013). Mr. Edmondson reported that the Association of Local Public Health Agencies (alPHa) has taken this issue to the Province; no response has been received. Ms. Brown reported the Leaders of the Opposition were made aware of this issue at the Association of Municipalities (AMO) conference. It was agreed that the timing of funding announcements is a challenge that all publicly funded bodies (e.g., universities and hospitals) must face.

It was recommended that the Board Chair send a letter to the alPHa board chair and request that other Boards of Health do the same.

It was moved by Mr. Meyer, seconded by Mr. Bolton that Report No. 004-13C be received for information.
Carried

It was moved by Mr. Peer, seconded by Ms. Brown that the FFC Committee recommends that the Board of Health authorize the Board Chair to sign the Amending Agreement attached as Appendix C to Report No. 004-13C.
Carried

2013 Budget Variance Report – June 30 (Report No. 005-13C)

Mr. Millson assisted Committee members with their understanding of this report. He highlighted Appendix B that illustrates how part of an anticipated surplus could be used to fund recommendations resulting from the Shared Services Review. Dr. Mackie stated that a report on the progress of implementing the recommendations of the Shared Service Review will be presented at the September 19 Board of Health meeting.

In response to a question about the shortfall in the dental program, Mr. Millson explained that the dental program has its own funding reserve, so any anticipated surplus would not be required to fund the dental program.

It was moved by Mr. Peer, seconded by Ms. Brown that the FFC Committee receive the Budget Variance Summary found in Appendix A of Report No. 005-13C for information.
Carried

After discussion, it was moved by Mr. Bolton, seconded by Mr. Peer that the FFC Committee recommends that the Board of Health approve expenditures in the amount of $110,000 as identified in Table 1 of Appendix B of Report No. 005-13C, it being noted that the funding would come from anticipated 2013 surplus.
Carried

Discussion ensued about the staff recommendation to set a target for contribution to the Funding Stabilization Reserve. Mr. Millson informed the committee that discussions had been initiated with the administration of the County and the City about the Health Unit’s Reserve Fund Policy that was approved by the Board in June, and about how to put this issue before the respective Councils of the funding municipalities.

In place of the staff recommendation, it was moved by Mr. Meyer, seconded by Mr. Bolton that Health Unit staff members continue to be prudent with funds and the FFC supports the policy direction of contributing surplus funds to the Funding Stabilization Reserve in order to offset future financial risks.
Carried

At 10:35 a.m., it was agreed that the Committee take a 10 minute recess.

2014 Budget Target – Cost Shared Programs (Report No. 006-13C)

Dr. Mackie assisted Committee Members with their understanding of this report. He also indicated that the 2014 budget will assume the same per cent increase of provincial grant for the Cost-Shared programs received in 2013.

Discussion ensued about the 2014 Budget Planning process. The Committee asked to review Item 4.5 on the agenda before discussing this report further.

Dental Treatment Clinic – 2012 Shortfall (Report No. 007-13C)

Mr. Millson assisted Committee members with their understanding of this report. Mr. Millson highlighted the strategies proposed by staff to address the shortfall in this area, and advised that this Committee will receive a report in the fourth quarter about how the strategies are working. Dr. Bryna Warshawsky, Associate Medical Officer of Health and Director, Oral Health, Communicable Disease & Sexual Health Services, explained the Healthy Smiles Ontario funding model. Dr. Warshawsky and Dr. Maria Van Harten, Dental Consultant, reported that the Health Unit’s Dental Clinic is provided because of the great need in the community. Mr. Millson reported that the Dental Reserve is just over $175,000.

It was moved by Mr. Meyer, seconded by Mr. Bolton that the FFC receive this report for information and refer it to the Board of Health.
Carried

PwC Budget and Financial Policy Recommendations – Progress Update: (slide presentation)

Dr. Mackie assisted Committee members with their understanding of this report using a slide presentation. MLHU financial policies were reviewed in August in consultation with PwC. FFC will receive a report on revisions in October.

The proposal to update the budget/planning process is designed to better integrate operational planning with budget planning. The proposed activities at each stage, the timelines (including the involvement of the BOH), and the anticipated outputs are described in the slide presentation.

Dr. Mackie presented the abbreviated timeline for the 2014 Budget/Planning Process. He indicated that this interim process for planning the 2014 budget will include Program Budgeting and Marginal Analysis (PBMA), which transparently applies pre-defined criteria to prioritize where proposed decreases or increases could be made.

Chair Fulton and Committee members commended staff on the preparation of the budget planning process and agreed that the proposed process provides the Board of Health with more information about the construction of the budget. Dr. Mackie agreed that staff education and support would accompany the introduction of a new budget/planning process.

It was moved by Mr. Peer, seconded by Mr. Meyer that the FFC Committee received the information presented by Dr. Mackie.
Carried

It was moved by Mr. Bolton, seconded by Mr. Peer that the FFC recommends that the Board of Health endorse the following:

1. That the 2014 planning parameters include the reallocation of resources based on maximizing the value of services across the four principles of the Ontario Public Health Standards (Need, Impact, Capacity, and Partnerships/Collaboration),and further
2. That the 2014 planning parameters include 0% increase in municipal funding, and
3. That the approved parameters be communicated to the City of London and the County of Middlesex.

Carried

Middlesex-London Health Unit – March 31st, 2013 Draft Financial Statements (Report No. 009-13C)

Mr. Millson assisted Committee members with their understanding of this report.

In response to a question about “Contract Services”, Mr. Millson explained that the Board of Health administers the Preschool Speech and Language Program for all of Southwestern Ontario. Several agencies provide the service and invoice the Health Unit. The Province provides 100% funding for this program.

It was moved by Mr. Bolton, seconded by Mr. Peer that the FFC recommend that the Board of Health approve the audited Consolidated Financial Statements for the Middlesex-London Health Unit, March 31st, 2013 as appended to Report No. 009-13C.
Carried

Reschedule December Meeting Date

The meeting originally scheduled for December 5, 2013, has been rescheduled to Thursday, November 28 at 10:00 a.m.

Other Business

Next scheduled Finance and Facilities Committee Meeting – Thursday, October 3, 2013 9:00 a.m. Room 3A, 50 King Street, London

Adjournment

At 12:15 p.m., it was moved by Mr. Peer, seconded by Mr. Meyer that the meeting be adjourned.

TRISH FULTON
Chair

CHRISTOPHER MACKIE
Secretary-Treasurer