Minutes - November 3, 2022 - Finance and Facilities Committee Meeting 

Members Present:

Mr. Mike Steele (Chair)
Mr. Matt Reid
Ms. Maureen Cassidy
Mr. Selomon Menghsha 

Regrets:

Ms. Kelly Elliott

Others Present:

Ms. Stephanie Egelton, Executive Assistant to the Medical Officer of Health (Recorder)
Dr. Alexander Summers, Medical Officer of Health
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. Maureen MacCormick, Director, Healthy Living
Ms. Sarah Maaten, Acting Director, Office of the Medical Officer of Health
Ms. Jennifer Proulx, Acting Director, Healthy Start/Chief Nursing Officer
Ms. Mary Lou Albanese, Director, Environmental Health and Infectious Disease
Mr. Marc Resendes, Project Coordinator
Ms. Marlee Vinegar, Medical Student
Ms. Mariam Hamou, Board Member
Ms. Svetlana Popovic, Executive Assistant to the Chief Executive Officer
Mr. Mike Kadour, Consultant

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 November 3, 2022 Finance & Facilities Committee meeting be approved.
Carried

Approval of Minutes 

It was moved by Mr. Reid, seconded by Ms. Cassidy, that the MINUTES of the October 6, 2022 Finance & Facilities Committee meeting be approved.
Carried

New Business

Q3 Financial Update and Factual Certificate (Report No. 18-22FFC)

Ms. Emily Williams, Chief Executive Officer introduced Mr. David Jansseune, Assistant Director, Finance to provide information on the Q3 Financial Update and Factual Certificate (ending September 30).

100% Funded Programs

The Nurses Retention Incentive has funding of $1,190,000, with spring and fall draft payments totaling $1,048,000 (still to be finalized by the province).

The CLIF program has estimated funding of $450,000-$500,000, with forecasted spending of $303,659. As of September 30, spending for this program was $252,142. The City has been contacted to explore rolling over of the unspent funds into 2023.

The School Focused Nurses Initiative has funding of approximately $1,643,700. Due to a surplus in this program, it is expected that the unspent funding will be clawed back by the Province in December.

The Seniors Dental Funding Project (Strathroy) has funding of approximately $1,050,100. It is noted that the construction bid will be seen by the Board at the December 15 Board of Health meeting.

COVID-19 funding has been approved for $13.6 million with forecasted expenses of $22.2 million. The Health Unit has received $10.2 million but will request an additional $9.7 million. This expense appears unfavourable to the budget, but this is only a timing issue, as we have not received the second installment of funding. COVID-19 vaccination clinics are spending to budget and case/contact management is spending under budget.

Forecast

Salaries and benefits are difficult to estimate, due to the temporary nature of many of the staff currently supporting the Health Unit in shared funding programs.

There is a $2.3 million surplus within the Shared Funding Programs and this surplus will be applied against COVID-19 expenses. COVID-19 is forecasting expenditures of $22.2 million. $22.2 million will be reduced by the $2.3 million surplus, leaving $19.9 million in funding. COVID-19 funding to date is $10.2 million, leaving $9.7 million to be received.

The Nurses Retention Incentive will be flow through funding, and will be offset with the approved funding.

Capital projects are excluded as the Health Unit forecast focuses on operating costs, with a review ongoing.

Cashflow Projections

Funding clawbacks (approximately $3 million) in December are expected, but the exact date is unknown as this time. It was also noted that the Health Unit is in a positive cash balance as of September 30.

As of September 30, the Health Unit has a $3.9 million positive bank balance. It is noted that if funding is not received, the Health Unit will need to rely on the line of credit for December and January. The current bank loan is for 20 years, with an approximate $260,000 annual payment. The fixed loan has $2,838,000 approximately owing and the variable loan has approximately $1,049,000 owing.

Q3 Consolidated Analysis

Overall, shared funding programs were $2.5 million favourable to the budget, COVID-19 programs were $5.6 million unfavourable to the budget and overall Q3 was $3.1 million unfavourable to the budget.

Ms. Williams noted that regarding the School Focused Nurses Initiative that funds were unused due to staffing challenges. The roles approved through funding are temporary in nature and there are currently struggles with recruiting and retaining health human resources. The Health Unit is working on a utilization plan for 2023 regarding this funding. Ms. Maureen MacCormick, Director, Healthy Living advised that the Province is aware of the need for permanent funding for these roles. An audit has been done with recommendations made to the Province, but no update has been received to date.

It was moved by Mr. Reid, seconded by Mr. Selomon Menghsha, that the Finance & Facilities Committee recommend to the Board of Health to receive Report No. 18-22FFC, re: “2022 Q3 Financial Update and Factual Certificate” for information.
Carried

Proposed Adjustments to Reserves (Report No. 19-22FFC)

Mr. Jansseune provided background information on the proposed contribution to the Technology and Infrastructure reserve. The current balance of the Reserve is zero with the last balance noted in 2018 of $1,250,000 which was depleted in 2019. There is a $2 million fund limit with maximum annual contributions of $250,000. It was noted that the Health Unit is expecting a surplus and would aim to put funds towards this reserve. These funds would be coming from City of London and County of Middlesex funding.

The request to the Committee and Board is to approve a contribution of $250,000 to the Technology and Infrastructure Reserve using 2022 surplus municipal funds. Mr. Jansseune noted that the proposed transfer to reserve was not budgeted. Per Board of Health policy G-250 Reserve and Reserve Funds, the reserve contributions must be approved by the Board. Mr. Jansseune and Ms. Williams have had preliminary conversions with the City and County regarding this contribution and received support.

It was noted that it was important to have this reserve with funds ready to be prepared for any urgent technology needs, noting the large number of users of Health Unit technology infrastructure.

It was moved by Mr. Reid, seconded by Ms. Cassidy, that the Finance & Facilities Committee make a recommendation to the Board of Health to approve contributing $250,000 to the Technology & Infrastructure Reserve.
Carried

Proposed 2023 Budget (Report No. 20-22FFC)

Ms. Williams provided an overview to the Committee on the Health Unit’s proposed 2023 budget.

Ms. Williams provided a summary of the budget process which the Health Unit is utilizing:
- Set funding assumptions (flat funding to 2022, mitigation funding continuing, and COVID extraordinary funds continuing);
- Confirm inflationary pressures (salary/step/benefit increases, corporate expenses, reducing gapping);
- Establish target ($1.2 million);
- Conduct general expenses review using a zero based budget approach;
- Review programs and services by using the Public health program pyramid and critical infrastructure review framework.

General expense reductions in the amount of $437,217 have impact to the areas of supplies, professional development, travel and program costs.

The proposed disinvestments (public) are as follows:
- Corporate Expenses – cell phone use reduction (savings of $12,000);
- Vector Borne Disease program students – reducing two summer student positions (savings of $22,000).

It was moved by Mr. Reid, seconded by Ms. Cassidy, that the Finance & Facilities Committee make a recommendation to the Board of Health to:
1) Approve the savings identified from the General Expense zero-based budgeting review in the amount of $437, 217;
2) Approve the disinvestments in cell phones and students in the Vector Borne Disease Program; and
3) Advise no further changes in programs and services until 2023 provincial base funding amounts are known.
Carried

Confidential

At 9:32 a.m., it was moved by Mr. Reid, seconded by Mr. Menghsha, that the Finance and Facilities Committee will move in camera to consider matters regarding personal matters about an identifiable individual, including municipal or local board employees and matters regarding labour relations or employee negotiations.
Carried

At 10:25 a.m., it was moved by Ms. Reid, seconded by Ms. Cassidy, that the Finance and Facilities Committee rise and return to public session from closed session.
Carried

Other Business

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

Chair Steele noted that a financial report regarding the dental clinic in the Strathroy office will go forward to the December Board of Health meeting.

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

Adjournment 

At 10:27 a.m., it was moved by Mr. Reid, seconded by Ms. Cassidy, that the meeting be adjourned.
Carried

Michael Steele
Chair

Emily Williams
Secretary