PREPARED BY: Michael Horrobin, Director, Corporate Services and CFO
DATE: June 16, 2025
2025 Budget Overview
2025 Mandatory Budget for the Three Months Ended March 31, 2025
The budgeted net expenditures for Q1 (ending March 31, 2025) are $6,102,382 versus the actual net expenditures of $5,652,922, including the impact of open purchase orders, resulting in a total of $449,461 underspent.
| Mandatory Program | Budget vs Actual for the three months ended March 31, 2025 | |||||
|---|---|---|---|---|---|---|
| Category | Board Approved | YTD Budget March 25 | Actual March 25 | Variance | % Variance | % to Budget |
| Operating Expenses | ||||||
| Salaries and Benefits | $ 20,943,224.00 | $ 5,235,808 | $ 4,572,353 | $ 663,455 | 12.67% | 21.83% |
| Mileage | 284,463 | 71,115 | 34,357 | 36,758 | 51.69% | 12.08% |
| Office and Administration Expenses | 322,905 | 80,730 | 67,041 | 13,689 | 16.96% | 20.76% |
| Professional Fees - Legal, Audit and Consulting | 184,600 | 46,152 | 54,243 | - 8,091 | -17.53% | 29.38% |
| Supplies - Programs and Corporate | 963,436 | 175,685 | 100,171 | 75,514 | 42.98% | 10.40% |
| Purchased Services - Programs and Corporate | 151,851 | 36,892 | 43,801 | - 6,909 | -18.73% | 28.84% |
| Information Technology | 667,300 | 166,824 | 159,062 | 7,762 | 4.65% | 23.84% |
| Building Maintenance | 722,299 | 47,350 | 67,069 | - 19,719 | -41.65% | 9.29% |
| Rent | 830,300 | 207,575 | 201,403 | 6,172 | 2.97% | 24.26% |
| Property Taxes | 234,600 | 58,650 | 53,759 | 4,891 | 8.34% | 22.92% |
| Insurance | 260,000 | 65,001 | 60,310 | 4,691 | 7.22% | 23.20% |
| Utilities, Telephone and Security | 287,200 | 71,799 | 76,324 | - 4,525 | -6.30% | 26.58% |
| Total Operating Expense | 25,852,178 | 6,263,581 | 5,489,891 | 773,690 | 12.35% | 21.24% |
| Less Offset Revenue | - 644,800 | - 161,199 | - 190,583 | 29,384 | -18.23% | 29.56% |
| Total Net Operating Expenses | 25,207,378 | 6,102,382 | 5,299,308 | 803,074 | 13.16% | 21.02% |
| Add: Open PO's and other adjustments | - | 353,613 | - 353,613 | |||
| Total Net Operating Expenses after Adjustments | 25,207,378 | 6,102,382 | 5,652,921 | 449,461 | 7.37% | 22.43% |
Analysis of Key Variances
Salaries and Benefits - $663,445 or 12.67% Under Budget
Vacancies – whether unfilled or partially filled due to staff departures and mandatory leaves of absence - account for just over 75% of the total amount underspent. Additionally, all roles were initially budgeted at the maximum salary rate. However, when these positions are filled, whether by full-time permanent staff or contract employees - most new hires do not start at the top of the pay scale as budgeted. Benefits, especially OMERS are budgeted as a percentage of salaries resulting in a variance. Lastly, approximately $75.5K was directed to one-time funding programs once fund approvals were received from the Ministry of Health.
Mileage - $36,758 or 51.69% Under Budget
The underbudget amount is primarily due to the seasonal nature of some program activities, with mileage increasing during the summer months. Many of the planned travel and field operations that incur mileage expense are scheduled to begin or intensify in the upcoming months. As such we anticipate a significant uptick in mileage-related expenditures as we move into the summer, aligning spending with program activity timelines and budgets.
Professional Fees - Legal, Audit and Consulting – $8,091 or 17.53 % Over Budget
Legal and professional fees have exceeded the budget due to an increase in labour relations issues and the legal work associated with negotiating the Leamington Lease Amending Agreement. Also impacting legal expense were costs to renegotiate the Leamington lease, as well as costs associated with the architectural design services for the Facility Renewal Project.
Supplies -Programs and Corporate - $75,514 or 42.98% Under Budget
The variance is almost completely related to a timing issue with the Vector-Borne Diseases Program (which is exclusively a seasonal based program). Most of the supplies for this program are used in the second half of the year. As a result, we anticipate that this budget will be fully spent by year-end.
Building Maintenance -$19,719 or 41.65% Over Budget
The Building Maintenance budget is currently overspent due to the Facility Renewal Project. Specifically, the costs are related to interior painting, installation of new energy efficient lighting and architectural design fees. These improvements are over and above normal building maintenance costs.
2025 Ontario Seniors Dental Care Program (OSDCP) for the Three Months Ended March 1, 2025
The budgeted net expenditures for Q1 (ending March 31,2025) are 758,205 versus the actual net expenditures, including the impact of open purchase orders, of $135,875.
| Ontario Seniors Dental Care Program | Budget vs Actual for the three months ended March 31, 2025 | |||||
|---|---|---|---|---|---|---|
| Category | Board Approved | YTD Budget March 25 | Actual March 25 | Variance | % Variance | % to Budget |
| Operating Expenses | ||||||
| Salaries | 1,956,476 | 489,120 | 414,923 | $ 74,197 | 15.17% | 21.21% |
| Mileage | 7,302 | 1,827 | 2,657 | -$ 830 | -45.42% | 36.39% |
| Office and Administration Expenses | 8,500 | 2,124 | - | $ 2,124 | 100.00% | 0.00% |
| Clinical Supplies | 227,862 | 56,967 | 20,784 | $ 36,183 | 63.52% | 9.12% |
| Purchased Services | 682,233 | 170,559 | 138,341 | $ 32,218 | 18.89% | 20.28% |
| Information Technology | 11,000 | 2,751 | 2,794 | -$ 43 | -1.57% | 25.40% |
| Occupancy Cost (Rent) | 127,199 | 31,800 | 31,875 | -$ 75 | -0.24% | 25.06% |
| Utilities, Telephone and Security | 19,228 | 4,806 | 2,564 | $ 2,242 | 46.65% | 13.33% |
| Total Operating Expense | 3,039,800 | 759,954 | 613,938 | $ 146,016 | 19.21% | 20.20% |
| Less Offset Revenue | - 7,000 | - 1,749 | - 1,660 | - 89 | 5.09% | 23.71% |
| Total Net Operating Expenses | 3,032,800 | 758,205 | 612,278 | 146,105 | 19.25% | 20.19% |
| Add: Open PO's and other adjustments | - | - | 10,052 | - | ||
| Total Net Operating Expenses after Adjustments | 3,032,800 | 758,205 | 622,330 | 146,105 | 17.92% | 20.52% |
Analysis of Key Variances
Salaries and Benefits - $74,197 or 15.17% Under Budget
Vacancies due to unfilled or partially unfilled departures and mandatory leaves of absence account for just over 77% of the underbudget amount. OSDCP was down one Dentist in Q1. The other major reason is that all roles are budgeted at the maximum rate. When departures or leaves are filled with either a full-time permanent position or a contract position most do not begin with earning the maximum rate. Benefits, especially OMERS are budgeted as a percentage of salaries resulting in a variance.
Clinical Supplies - $36,183 or 63.52% Under Budget
Clinical supplies spending is lower than budgeted due to a $15K credit arising from the prior year that was used in Q1.
Purchased Services – Dentistry - $32,218 or 18.89% Under Budget
Given demand for this program exceeding the capacity of the current dental infrastructure, an outsourcing strategy has been implemented which allows for referrals to local dental offices. We have established several dental office contracts. As the year progresses, we expect to see increased billings from 3rd party dental offices and expect to be on budget.