PREPARED BY: Jalin Whyte-Lewin – Manager Accounting and Financial Reporting
DATE: June 25, 2026
Executive Summary
Mandatory Program
For the three months ended March 31, 2026, total operating expenses were $6.185M, resulting in a variance of $308K (4.7%) against the year-to-date budget. After offset revenue, total net operating expenses were $5.910M, reflecting a variance of $394K (6.3%).
The variance is primarily driven by salary and benefit savings, along with underspending in several operational categories. These savings were partially offset by higher-than-budgeted spending in office, professional fees, and program-related supplies.
| Amounts ($000) | |||||
|---|---|---|---|---|---|
| Expense Category | Board approved | YTD Budget March 2026 | Actual March 2026 | Variance | % |
| Operating Expenses | $ | $ | $ | $ | |
| Salaries | 16,485 | 4,121 | 3,882 | 239 | 5.8% |
| Benefits | 5,063 | 1,266 | 1,233 | 32 | 2.6% |
| Mileage | 322 | 81 | 33 | 47 | 58.7% |
| Office and Administration Expenses | 304 | 76 | 102 | -26 | -33.9% |
| Professional Fees-Legal, Audit and Consulting | 169 | 42 | 59 | -17 | -40.0% |
| Supplies-Programs and Corporate | 895 | 162 | 214 | -52 | -31.8% |
| Purchased Services-Programs and Corporate | 211 | 53 | 67 | -15 | -27.8% |
| Information Technology | 649 | 162 | 151 | 11 | 6.7% |
| Building Maintenance | 495 | 124 | 75 | 48 | 39.2% |
| Rent | 855 | 214 | 201 | 13 | 5.9% |
| Property Taxes | 227 | 57 | 46 | 11 | 18.5% |
| Insurance | 275 | 69 | 51 | 17 | 25.3% |
| Utilities, Telephone and Security | 267 | 67 | 69 | -2 | -2.7% |
| Total Operating Expenses | 26,217 | 6,493 | 6,185 | 308 | 4.7% |
| Less Offset Revenue | -758 | -188 | -275 | -86 | 45.8% |
| Total Operating Expenses after adustments | 25,459 | 6,305 | 5,910 | 394 | 6.3% |
Mandatory Program - Detailed Financial Report for the three Months Ended March 31, 2026
Analysis of Key Variances
1. Salaries – $239K (5.8% Under Budget)
The variance is primarily driven by unplanned staffing vacancies and the impact of statutory leaves during the reporting period
Recruitment challenges for certain positions (Public Health Inspectors and Oral Health staff) during resulted in longer than anticipated staffing gaps resulting in salaries accrual. In addition, salary figures for all positions are budgeted at the maximum salary rate, but often new hires (both permanent and contract) typically start below the maximum.
2. Benefits – $32K (2.6% Under Budget)
The variance in benefits is directly linked to lower salary expenditures (noted above), as employer contributions (e.g., OMERS) are calculated as a percentage of actual payroll.
The percentage variance is proportionally smaller than salaries, as salaries represent a significantly larger cost base.
3. Office & Administration Costs – $26K (33.9% Over Budget)
The variance is primarily attributable to higher-than-budgeted expenditures within office and administrative costs during the reporting period. In addition, first-quarter spending included strategic investments in leadership development. These expenditures are largely non-recurring or timing-related and are not expected to continue at the same level over the balance of the fiscal year.
4. Professional Fees (Legal, Audit, Consulting) – $17K (40.0% Over Budget)
The variance is related to unanticipated matters requiring external expertise, including legal support and consulting services. Costs are attributed to labour relations matters, advisory requirements, and project-related work that exceeded planned levels during the period. At this time, the timing and extent of any additional costs will depend on operational needs over the balance of the year.
5. Supplies – Programs & Corporate – $52K (31.8% Over Budget)
The variance is primarily attributable to a Board of Health process improvement initiative including the procurement of a secure software solution for board package management and reporting. Future costs related to the implementation of the software will be included as a part of the annual budget process.
In addition, some program-related supplies were procured earlier than planned within the forecasted budget, resulting in higher first-quarter costs. We expect these expenses to normalize over the course of the year.
6. Purchased Services – $15K (27.8% Over Budget)
The variance is driven by increased reliance on temporary staffing within Finance and Facilities to support operational needs and address unexpected capacity gaps. These costs are not expected to continue at the same level throughout the year as staffing levels within the Finance department will have normalized.
7. Building Maintenance – $48K (39.2% Under Budget)
The variance is primarily due to the timing of planned maintenance and capital-related activities, with several initiatives scheduled to begin in Q2.
Additionally, one-time funding of $1.1M from the Ministry of Health (MOH) for the Facility Renewal Project has offset costs that would otherwise have been charged to the mandatory program. This funding covered expenses incurred up to Q1 - March 31, 2026, resulting in the current variance.
2026 Ontario Seniors Dental Care Program (OSDCP) for the Three Months Ended March 31, 2026
Executive Summary
For the three months ended March 31, 2026, OSDCP reported total operating expenses of $607K against a budget of $759K, resulting in a variance of $153K (20.1% under budget).
The underspending is primarily driven by Purchased Services ($71K under, 47.6%), Salaries and Benefits ($43K combined under), and Clinical Supplies ($17K under, 43.5%). These variances can be attributed to a key leave of absence of the denturist offering clinical services, a surplus of program supplies obtained late in 2025, planned clinic closures due to ongoing building maintenance, and additional unplanned staff vacancies.
| Amounts ($000) | |||||
|---|---|---|---|---|---|
| Expense Category | Board approved | YTD Budget March 2026 | Actual March 2026 | Variance | % |
| Operating Expenses | $ | $ | $ | $ | |
| Salaries | 1,522 | 381 | 351 | 30 | 7.8% |
| Benefits | 495 | 124 | 111 | 13 | 10.3% |
| Mileage | 12 | 3 | 1 | 2 | 69.8% |
| Professional Fees-Legal | 15 | 4 | 0 | 4 | 100.0% |
| Office and Administration Expenses | 7 | 2 | 2 | 0 | -14.4% |
| Clinical Supplies | 160 | 40 | 23 | 17 | 43.5% |
| Purchased Services | 600 | 150 | 79 | 71 | 47.6% |
| Information Technology | 16 | 4 | 3 | 1 | 19.9% |
| Occupancy Costs | 140 | 35 | 35 | 0 | 0.0% |
| Facility Renewal Project | 51 | 13 | 0 | 13 | 100.0% |
| Utilities, Telephone and Security | 20 | 5 | 3 | 2 | 43.2% |
| Total Operating Expenses | 3,038 | 759 | 607 | 153 | 20.1% |
| Less Offset Revenue | -5 | 0 | 0 | 0 | 100.0% |
| Total Operating Expenses after adustments | 3,038 | 759 | 607 | 153 | 20.1% |
Analysis of Key Variances
Salaries – $30K or 7.8% Under Budget
The variance is primarily due to unfilled or partially filled positions, including vacancies (dental hygienist and assistant) and statutory leaves of absence. The vacancies were filled in April, and these costs are expected to run close to budget in future quarters.
Benefits – $13K or 10.3% Under Budget
The variance in benefits is directly linked to lower salary expenditures, as employer contributions (e.g., OMERS) are calculated based on actual payroll. Vacancies and lower starting salary levels have resulted in reduced benefit costs compared to budget.
Professional Fees – Legal – $4K or 100.0% Under Budget
No legal expenses were incurred during the reporting period. This variance is attributable to timing differences, as legal services are engaged as needed based on operational requirements and may arise later in the fiscal year if required.
Clinical Supplies – $17K or 43.5% Under Budget
The variance is primarily due to the utilization of existing surplus inventory from prior periods, which reduced the need for additional purchases during the quarter. These costs are expected to run close to budget in future quarters and are anticipated to align with projected budget at Q4.
Purchased Services – $71K or 47.6% Under Budget
A significant portion of this variance is due to the resignation and ongoing recruitment for a Denturist, and while demand for services exists, the absence of the denturist limits the program’s ability to offer comprehensive denture service to eligible seniors. This vacancy also impacts the need for clinical supplies as the materials utilized by the denturist are accounted for through this budget line. Further to this, the Purchased Services line also includes the costly fabrication of the dentures which the WECHU procures through the services of local lab services. The WECHU has begun to outsource this service to community denture providers earlier than it has in previous years to account for this vacancy and associated costs. As interest and capacity among community providers is limited, the WECHU has approached community dentist offices which offer denturist services to establish service agreements for this purpose, as well as revisions to the previous service agreements to make this partnership more beneficial to the provider. This is a novel approach not utilized in previous years and discussions related to partnering with these offices is ongoing.
Additionally, through variance monitoring the WECHU has determined that it is able to onboard an additional partial FTE Dentist, which will enhance service delivery timelines for treatment and denturist services and will account for much of the Q1 variance before year end. Spending is expected to increase in subsequent quarters as these services become fully operational.