Minutes - February 2, 2023 - Finance and Facilities Committee Meeting 

Members Present:

Mike Steele (Chair)
Matt Reid
Selomon Menghsha – arrived at 9:05
Mike McGuire

Others Present:

Stephanie Egelton, Executive Assistant to the Board of Health (recorder)
Emily Williams, Chief Executive Officer
Dr. Alexander Summers, Medical Officer of Health
Dave Jansseune, Assistant Director, Finance
Carolynne Gabriel, Executive Assistant to the Medical Officer of Health
Mary Lou Albanese, Director, Environmental Health and Infectious DiseaseStephanie Egelton, Executive Assistant to the Board of Health (recorder)
Emily Williams, Chief Executive Officer
Dr. Alexander Summers, Medical Officer of Health
Dave Jansseune, Assistant Director, Finance
Carolynne Gabriel, Executive Assistant to the Medical Officer of Health
Mary Lou Albanese, Director, Environmental Health and Infectious Disease

At 9:02 a.m., Secretary and Treasurer Emily Williams called the meeting to order.

Meeting Procedures

Election of 2023 Finance and Facilities Committee Chair

Secretary and Treasurer Emily Williams opened the floor to nominations for Chair of the Finance & Facilities Committee for 2023.

It was moved by M. McGuire, seconded by M. Reid, that Mike Steele be nominated for Chair of the Finance & Facilities Committee for 2023.
Carried
Mike Steele accepted the nomination.

E. Williams called three times for further nominations. None were forthcoming.

It was moved by M. Reid, seconded by M. McGuire, that Mike Steele be acclaimed as Chair of the Finance & Facilities Committee for 2023.
Carried

Disclosures of Conflict of Interest

Chair Mike 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 February 2, 20223 Finance & Facilities Committee meeting be approved.
Carried

Approval of Minutes 

It was moved by M. McGuire, seconded by M. Reid, that the MINUTES of the November 3, 2022 Finance & Facilities Committee meeting be approved.
Carried

New Business

2023 Reporting Calendar and Terms of Reference (Report No. 01-23FFC)

Emily Williams, Chief Executive Officer presented the 2023 reporting calendar and terms of reference for the Finance and Facilities Committee. It was noted that there were proposed changed of the meeting cadence to align with quarterly reporting timelines.

E. Williams suggested to shift the meeting dates to the second Thursday of each month to further assist with reporting logistics. The Committee noted no concerns with the schedule change.

It was moved by M. Reid, seconded by M. McGuire, that the Finance & Facilities Committee recommend to the Board of Health to:
1) Approve the 2023 Finance and Facilities Committee Reporting Calendar to include the timing change of meetings to the second Thursday of the meeting month; and
2) Approve the Finance and Facilities Committee Terms of Reference as amended.
Carried

Q4 Financial Update, Financial Borrowing and Factual Certificate Update (Report No. 02-23FFC)

Emily Williams, Chief Executive Officer introduced Dave Jansseune, Assistant Director, Finance to present the Q4 Financial Update, Financial Borrowing and Factual Certificate Update.

Shared Funded Programs
- Surplus of $2.1 million
- MLHU has $32.3 million in funding with $30.2 million in expenses.
- COVID-19 has resulted in a deficit of $2.1 million, with $17.9 million in funding and $20.0 million in expenses.

100% Funded Programs
- School Focused Nurses Initiative: funding of $1.6 million and expenditures totaling $1.1 million.
- Seniors Dental Program: funding of $2.2 million and expenditures totaling $1.8 million.
- Nurses Retention Incentive: funding of $1.2 million and expenditures totaling $1.1 million.
- CLIF – City of London Funding for Cannabis Legalization: funding of $416,000 and expenditures totaling $294,000. It is noted that the City of London approved carryover of these funds into 2023.
- Strathroy Capital for Seniors’ Dental project is actively underway with $1 million available for funding.

Shared Funding – Variances
- Grants, user fees, and incomes are showing favourability of $1,127,000 due to Nurses Retention Incentive.
- Salaries and wages are showing favourability of $1,386,000 due to vacancies at the MLHU.
- Overtime hours are showing unfavourability of $128,000.
- Benefits are showing favourability of $749,000.
- General Expenses are showing favourability of $572,000 which includes:
o Professional Services at $186,000;
o Program Supplies at $257,000;
o Travel at $181,000;
o Equipment at $100,000;
o Transfer to reserves at $361,000 unfavourability (which includes the previous transfers to the Employment Costs and Technology & Infrastructure reserves);
o Other costs at $209,000.

Forecast
- Shared Funding Programs had forecasted a surplus of $2.3 million with an actual of $2.1 million.
- COVID-19 & School Focused Nursing forecasted expenditures at $22.1 million of actual at $21.1 million.
- This demonstrates highly accurate forecasting for the 2022 budget year.

Cashflow
- There is a potential for GIC investments to diversify cashflow and offset interest rate expenses.
- The bank balance as of December 31 was $4.2 million (positive).
- For borrowing, the fixed loan is at $3.05 million with $2.8 million owing and the variable loan is at $1.15 million with $1.035 million owing.
- In reserves, there is $287,000 in the Employment Cost Reserve and $250,000 in the Technology & Infrastructure Reserve.
- COVID-19 funding for Q4 was $3.4 million.
- Strathroy Capital (Seniors’ Dental) funding for Q4 was $939,000.

D. Jansseune noted that MLHU is continuing with year-end closing with minimal entries, preparing for the audit in March and April, preparing financial statements and the Ministry of Health Annual Reconciliation Report. It was added that any changes to numbers would be reported to the Board of Health.

Committee Member Matt Reid inquired if the Ministry of Health will be providing funding in a monthly or quarterly cadence. D. Jansseune noted that this information was not known at this time. E. Williams added that in the event of delayed funding, like last year, the line of credit can be used.

E. Williams added that the budget will be coming to FFC and the Board of Health in March.

Chair Steele inquired on the reserve amount contributions for 2022. D. Jansseune clarified that it resets on January 1 – meaning that the Health Unit is in compliance with contributions.

It was moved by M. McGuire, seconded by M. Reid, that the Finance & Facilities Committee make a recommendation to the Board of Health to receive Report No. 02-23FFC re: 2022 Q4 Financial Update, Financial Borrowing and Factual Certificate for information.
Carried

Other Business

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

Adjournment 

At 9:29 a.m., it was moved by M. Reid, seconded by M. McGuire, that the meeting be adjourned.
Carried

Michael Steele
Chair

Emily Williams
Secretary