Minutes - September 14, 2023 - Finance and Facilities Committee Meeting 

Members Present:

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

Regrets:

Matthew Newton-Reid

Others Present:

Stephanie Egelton, Executive Assistant to the Board of Health (recorder)
David Jansseune, Assistant Director, Finance
Carolynne Gabriel, Executive Assistant to the Medical Officer of Health
Morgan Lobzun, Communications Coordinator
Emily Van Kesteren, Acting Manager, Communications

At 9 a.m., Chair Michael 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. McGuire, seconded by S. Menghsha, that the AGENDA for the September 14, 2023 Finance & Facilities Committee meeting be approved.
Carried

Approval of Minutes 

It was moved by S. Menghsha, seconded by M. McGuire, that the MINUTES of the August 10, 2023 Finance & Facilities Committee meeting be approved.
Carried

New Business

MLHU2 Financial Statements (Report No. 13-23FFC)

Emily Williams, Chief Executive Officer introduced David Jansseune, Assistant Director, Finance to provide information on the draft MLHU2 Financial Statements (from April 1, 2022 to March 31, 2023).

The highlights from the draft financial statements included:
• Four (4) programs were audited, with a fully utilized budget of $2,837,993 (6% of the total operating budget):
o Healthy Babies / Healthy Children (funded by Ministry of Children, Community & Social Services) with a budget of $2,483,313
o Smart Start for Babies (funded by Public Health Agency of Canada) with a budget of $132,029
o FoodNet Canada (funded by Public Health Agency of Canada) with a budget of $114,101
o Shared Library Services (funded by Public Health Ontario) with a budget of $108,550

D. Jansseune noted that the Finance team has been working to clean up the financial statements by removing historically funded programs that no longer exist.

Chair Steele confirmed if the audit was conducted by KPMG, as it was not noted on the draft statements. E. Williams confirmed it was conducted by KPMG and would ensure that the auditing firm would be noted for the final audited statements.

It was moved by M. McGuire, seconded by S. Menghsha, that the Finance & Facilities Committee recommend to the Board of Health to approve the audited Financial Statements of Middlesex-London Health Unit for programs ended March 31, 2023.
Carried

2023 Funding Update (Report No. 14-23FFC)

D. Jansseune provided an update on the provincial funding letter received August 29, 2023.

The highlights from this update included:

Operating
• Base funding was increased by 1% annually from 2023-2026, with 2023 funding prorated to $150,075.
• Funding ratio for municipalities and Ministry of Health was shifted from 70/30 to 75/25.
• Mitigation funding will be added to base budget and the Health Unit will keep $1,361,300.
o The Health Unit was previously going to request the mitigation funding from the municipalities, and this is no longer necessary.
• Ontario Seniors’ Dental Care Program was increased from approximately $2,200,000 to $3,500,000. 2023 funding was prorated to $3,166,500.
• School Focused Nurses Initiative was funded $550,000 from April 1 to June 30, 2023. Funding has ended as of June 30, 2023.

Capital
• There have been no changes to capital funding for the Strathroy Dental Clinic.
• $145,400 was provided from the Ontario Seniors’ Dental Care Program for CitiPlaza expansion.
• COVID-19 funding was not included.

Committee Member Michael McGuire noted that the County of Middlesex discussed the correspondence letter from the Board of Health from August 2 in detail at their previous Council meeting. Council discussed concerns that at the time of the letter, funding had not been received for the Strathroy Dental Clinic.

E. Williams clarified that operating funding for the Strathroy Dental Clinic has been received as of August 29, 2023. The Health Unit asked the Ministry of Health for $1,500,000 and received $1,300,000 over 12 months, with $950,000 prorated for 9 months due to the fiscal year. E. Williams added that staff will be exploring what the $200,000 difference means for staffing operations at the clinic.

Dr. Alexander Summers, Medical Officer of Health added that the Board of Health would be reviewing the funding updates and associated impacts at the upcoming Board meeting. Dr. Summers noted that staff will be reviewing Oral Health programming for 2024 and modifying within budget allocation, in addition to reviewing community needs for 2024 and 2025. Dr. Summers added that as of today, funding for the dental clinics are in a much better position. E. Williams added that D. Jansseune and herself were meeting with the County of Middlesex Treasurer to discuss financial outlooks based on new information learned.

Committee Member M. McGuire noted that Council are supportive of the Health Unit receiving funding in advance of needing to use the funds, and not having to request funding from the government after the project has started. E. Williams noted that the funding for the dental clinics was unique, as funding was received in 2020 and the Strathroy Dental Clinic Capital project could not be completed due to the pandemic. E. Williams explained that the Health Unit went ahead with the Strathroy Dental Clinic project without operating funds as there was a risk of losing capital funding, and the Ontario Seniors’ Dental Care Program is a priority of the current government. Dr. Summers added that the cadence of funding is a challenge every fiscal year, and at times makes it difficult to conduct work – feedback will continue to be provided to the Ministry of Health on these challenges. Dr. Summers noted that there are ongoing conversations with the government on funding within the public health sector, and more details will be provided at the following Board meeting.

Chair Steele inquired on how the $150,000 capital funding received for the dental clinic at CitiPlaza fits in. E. Williams noted that the funds would be used to make improvements to the existing dental operatories, and potentially review fitting up a third operatory at CitiPlaza.

It was moved by S. Menghsha, seconded by M. McGuire, that the Finance & Facilities Committee receive Report No. 14-23FFC re: “2023 Funding Update” for information.
Carried

2023 Financial Update (Report No. 15-23FFC)

D. Jansseune provided a financial update for MLHU finances as at August 31, 2023.

January to August – Expense Focus

• Total expenses are approximately $937,000 unfavourable.
• Actuals for salaries, overtime and benefits are from January to August.
• Actuals for general expenses are from January to July, calculated January to August.
• Salaries are nearly balanced at approximately $17,000 unfavourable.

Annual Forecast

• Funding will see an approximate extra $189,000, and includes:
o $150,000 with the 1% base budget increase
o $19,000 for the Needle Exchange Program
o $20,000 for the Public Health Inspector Practicum Program
• Salaries, overtime and benefits are being gapped (6.5 positions) to balance by year end, with year end projections currently $550,000 unfavourable.
• Reserves are approximately $100 favourable, because, due to financial constraints, the $100,000 contribution to the Stabilization Reserve will not be made.

100% Funded Programs

• COVID-19: approximate spending currently $4,496,000 and budgeted $7,001,000. The forecast is $8,372,000 and budgeted $10,655,000. No funding has been received so far this year from the Ministry of Health and discussions continue.
• School Focused Nurses Initiative: approximate spending currently $781,000 and budgeted $708,000. Funding was approved at $550,000 and is under review with the Ministry of Health (funding ended June 30, 2023).
• Ontario Seniors’ Dental Care Program: approximate spending currently $1,521,000 and budgeted $2,439,000. Funding was approved for 2023 at $3,167,000. Discussions on this forecast will take place with operations lead to ensure spending is optimized to year end.
• City of London Funding for Cannabis Legalization: approximate spending currently $67,000 and budgeted $124,000. Staff have sought City of London approval to carry over surplus funding to 2024.

D. Jansseune noted that this update was only for MLHU and not MLHU2, with a focus on expenses. D. Jansseune added that the total expenses for MLHU are nearly balanced, with approximately $937 to budget.

It was moved by M. McGuire, seconded by S. Menghsha, that the Finance & Facilities Committee receive Report No. 15-23FFC re “2023 Financial Update” for information.
Carried

Other Business

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

Adjournment 

At 9:28 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