Minutes - October 31, 2019 Finance & Facilities Committee Meeting

Members Present:

Mr. Matt Reid (Chair)
Ms. Kelly Elliott
Ms. Trish Fulton
Ms. Tino Kasi

Regrets: Ms. Maureen Cassidy

Others Present:

Dr. Christopher Mackie, Secretary-Treasurer
Ms. Lynn Guy, Executive Assistant to the Medical Officer of Health (Recorder)
Ms. Laura Di Cesare, Director, Healthy Organization Division
Mr. Brian Glasspoole, Manager, Finance
Ms. Nicole Gauthier, Manager, Privacy, Risk and Governance
Dr. Alexander Summers, Associate Medical Officer of Health
Mr. Joe Belancic, Manager, Procurement and Operations
At 9:06 a.m., Chair Reid called the meeting to order.

Disclosure of Conflict(s) of Interest

Chair Reid inquired if there were any disclosures of conflicts of interest. None were declared.

Approval of Agenda

Ms. Di Cesare asked the Committee to consider adding policy G-230 and its appendix to Report No. 035-19FFC.

It was moved by Ms. Fulton, seconded by Ms. Elliott, that the amended AGENDA for the October 31, 2019 Finance & Facilities Committee meeting be approved. Carried

Approval of Minutes

It was moved by Ms. Fulton, seconded by Ms. Elliott, that the MINUTES of the September 5, 2019 Finance & Facilities Committee meeting be approved. Carried

New Business

4.1 2020 Budget – Program Budgeting and Marginal Analysis (PBMA) Disinvestments (Report No. 033-19FFC)

The 2020 budget process focused on identifying enough disinvestments to sufficiently support inflationary pressures. Once approved, the fourteen disinvestments, totalling $493,388.00, will be incorporated into the 2020 budget proposal.

Dr. Mackie provided an update regarding the three positions to be eliminated. He noted that the positions have been vacant for some time and that arrangements have been made to ensure there will be no further burden on the teams affected.

It was moved by Ms. Fulton, seconded by Ms. Elliott, that the Finance & Facilities Committee approve PBMA Disinvestments totalling $493,388 as outlined in Appendix A to Report No. 033-19FFC.  Carried

4.2 Proposal to Draw Down Reserve Funds (Report No. 034-19FFC)

The Committee discussed using all of the funds in the Funding Stabilization Reserve. Mr. Glasspoole noted that significant costs that are short-term and primarily related to the move to Citi Plaza could be funded through this reserve. This would delay the need to draw upon the bank loan.

The Dental Treatment Reserve was originally established to address any clinic-related costs. With funding for the Ontario Seniors Dental Care Program (OSDCP), a new dental clinic will open at the Citi Plaza location. The funds in this reserve will be used to offset build costs for the new clinic. Mr. Glasspoole advised that the funds in the reserve will be used for preventative as well as treatment costs.

The Accumulated Sick Leave Reserve can be closed, as all employees who were eligible to be paid out for their accumulated sick days have left the organization. This Reserve was funded from OMERS holiday funding, and the remaining $29,462 will be used to defray OMERS contributions for 2019.

The last time that funds were drawn from the Environmental – Septic Tank Reserve was in 1994. Originally a grant from the Ontario Ministry of Environment, the remaining $6,044 will be returned to the appropriate branch of the Ministry if possible.

It was moved by Ms. Kasi, seconded by Ms. Fulton, that the Finance & Facilities Committee recommend that the Board of Health approve:
1) Using up to $818,258 from the Funding Stabilization Reserve to fund, in part, the cost of leasehold improvements in connection with the Health Unit’s relocation of premises to Citi Plaza;
2) Using up to $123,771 from the Dental Treatment Reserve to fund, in part, the cost of leasehold improvements related to dental treatment facilities in the new location;
3) Using up to $29,462 from the Accumulated Sick Leave Reserve to defray OMERS costs for 2019;
4) Returning $6,044 from the Environmental – Septic Tank Reserve to the Ministry of the Environment if that Ministry accepts the funds, and, if not accepted, then applying these funds to leasehold improvements related to Environmental Health in the new location; and
5) Closing the Dental Treatment Reserve, the Accumulated Sick Leave Reserve and the Environmental – Septic Tank Reserve.
Carried

Policy Review (Report No. 035-19FFC and Walk-on Report No. 036-19FFC)

G-200 Approval and Signing Authority Policy was updated to simplify the financial signing authorities and to delineate what is and is not a financial signing authority. Signing authority limits are recommended for managers, directors, and the Medical Officer of Health. Non-financial signing authority information had been located in Policy G-220 but was moved to this policy, where it’s a better fit.

G-220 Contractual Services – Changes to this policy were primarily editorial in nature.

G-230 Procurement – This policy was added to the agenda as a walk-on. Appendix A was revised to change the forty-day posting period to limit tenders to twenty-five days, provided the process takes place electronically. While the FFC agreed to this change, it will now require Board approval.

G-250 Reserve and Reserve Funds – Minor formatting changes were made. In anticipation of the FFC approving the closure of the Accumulated Sick Leave Reserve, the Environmental – Septic Tank Reserve, and the Dental Treatment Reserve, these reserves were removed from the policy. The three reserves remaining open are Funding Stabilization, Technology and Infrastructure, and Employment Costs.

It was moved by Ms. Kasi, seconded by Ms. Elliott, that the Finance & Facilities Committee:
1) Receive Report No. 035-19FFC re: “Policy Review” for information; and
2) Endorse the governance policies outlined in this report, including the procurement guideline policy update, which relate to the financial operations of the Middlesex-London Health Unit, and refer them to the Governance Committee for final review.
Carried

4.4 Q3 Variance Report and Factual Certificate (Report No. 032-19FFC)

Mr. Glasspoole noted that the projected end-of-year surplus is approximately $8,000. He added that construction costs are not part of the operating budget this year, as the Health Unit will be capitalizing those costs.

The Factual Certificate can be signed as all financial criteria is being met.

It was moved by Ms. Kasi, seconded by Ms. Fulton, that the Finance & Facilities Committee review and recommend to the Board of Health to receive Report No. 032-19FFC re: “Q3 Financial Update and Factual Certificate” for information. Carried

Other Business

Next meeting: December 5, 2019.

Adjournment

At 9:36 a.m., it was moved by Ms. Kasi, seconded by Ms. Elliott, that the meeting be adjourned.  Carried

At 9:37 a.m., Chair Reid adjourned the meeting.

MATTHEW REID
Committee Chair

CHRISTOPHER MACKIE
Secretary-Treasurer