Issue
Approval of the annual audited financial statements for the year-ended December 31 2017 including:
- Windsor-Essex County Health Unit (Appendix A)
- Windsor-Essex County Health Unit Nurse Practitioner Program (Appendix B)
- Windsor-Essex County Health Unit Healthy Babies Healthy Children Program (Appendix C)
(hereinafter referred to collectively as “the annual financial statements”).
Background
Paragraph 59(2) of the Health Protection and Promotion Act R.S.O. 1990 states that “A board of health shall cause to be prepared statements of its financial affairs in each year including but not limited to, (a) an annual statement of income and expenses; (b) an annual statement of assets and liabilities; (c) an annual estimate of expenses for the year.”
The annual financial statements audited by KPMG LLP, independent external auditors appointed by the Corporation of the City of Windsor. On May 25th, 2018, the Audit Committee of the Windsor-Essex County Health Unit convened to review the annual financial statements and audit findings report with Administration and KPMG LLP. The Audit Committee has recommended the financial statements for approval to the Board. KPMG LLP is prepared to issue, pending approval by the Board, an unmodified audit opinion on the annual financial statements.
Windsor-Essex County Health Unit
The enclosed is a summary analytical review addressing material changes in financial statement captions year-over-year.
Statement of Financial Position:
- Accounts receivable increased $423,766 over 2016. This increase is primarily attributed to: i) A net increase in amounts receivable from the Province of Ontario due to timing of 2017 approvals of $217,448; ii) Increase in other receivables in the amount of $201,799 as current year’s balance included amounts outstanding from third parties for wellness services rendered. For additional details, refer to note 3 to the annual financial statements of the Windsor-Essex County Health Unit.
- Due to Province of Ontario increased $157,338. This increase is attributed to the following: i) Increase in the balance outstanding relating to the 2016 settlement. In the prior year an amount remained receivable from the Ministry of Health and Long-Term Care. This receivable balance was offset against the total amount payable to the Ministry of Health and Long-Term Care. The Ministry subsequently cash flowed this in Q1 of 2017; ii) The 2017 settlement amount of $67,898. This amount relates to 100% Related Program funding and 100% funded One-time business case funding that remain unspent at the settlement date. Currently the 2016 settlement is under review. Once the review is concluded, the Ministry of Health and Long-Term Care will issue a settlement letter and claw back funding during the remainder of 2018. The 2017 settlement is due to the Ministry of Health and Long-Term Care May 31, 2017. The timing of the review of that settlement is unknown. For additional details refer to note 4 to the annual financial statements of the Windsor-Essex County Health Unit.
- Due to Municipalities increased $561,872. This net increase is attributed to the following: i) Repayment of amounts outstanding to the Corporation of the City of Windsor, the Corporation of the County of Essex and the Corporation of the Township of Pelee (hereinafter referred to as the “Obligated Municipalities”) in the amount of $144,349; ii) 2017 settlement to the Obligated Municipalities in the amount of $706,221. For additional details, refer to note 5 to the annual financial statements of the Windsor-Essex County Health Unit.
- Tangible capital assets decreased $274,418. This net decrease is attributed to: i) Tangible capital asset additions of $197,409; ii) Amortization expense in the amount of $471,827. Of the tangible capital assets acquired in the year, $106,400 were funded by the Ministry of Health and Long-Term Care using 100% Related Program funding or 100% funded One-time business cases. Refer to note 9 for additional details.
Statement of Operations and Accumulated Deficit:
- Increase in Revenue from the Province of Ontario, Mandatory Programs, in the amount of $298,562. This increase is attributed to the year-over-year increase in the general program expenses. As you recall, the Ministry of Health and Long-Term Care funds the WECHU to a maximum of 75% of admissible expenditures. Admissible expenditures for the purposes of the Ministry of Health and Long-term Care Settlement Process is defined below:
| Description | Amount |
|---|---|
| Total General Program expenses at December 31, 2017 | $18,518,025 |
| Less: Non-admissible expenses | (471,827) |
| Less: Change in Employee Future Benefits Liability | (24,296) |
| Less: Other Accounting Adjustments | (25,825) |
| Plus: Tangible capital asset additions – Mandatory Program | 91,009 |
| 18,087,086 | |
| Less: Offset revenue | (189,851) |
| Total admissible expenditures | $17,897,235 |
| Ministry portion (75%) | $13,422,926 |
| Ministry approval | $13,316,100 |
| Ministry funded expenditures | $13,316,100 |
- Increase in General Program Expenses in the amount of $739,870 is attributed to:
- Net increase in permanent FTEs of 2 staff funded by the Cost-Shared Program;
- Annual increases (cost of living and grid increases) as follows: i) ONA 2% annual; ii) CUPE 1.5% annual; iii) Non-union 2%;
- Other employee obligations.
Windsor-Essex County Health Unit Nurse Practitioner Program
The Nurse Practitioner Program is funded by the Ministry of Children and Youth Services. The funding supports the salaries and benefits of the nurse practitioner whose role is to assist with promoting healthy pregnancy, birth and infancy for children, improve parenting and family supports, strengthen early childhood development, learning and care.
Windsor-Essex County Health Unit Healthy Babies Healthy Children Program
The Healthy Babies/Healthy Children Program is funded through the Ministry of Children and Youth Services. This program supports 27.0 FTEs comprised of managers (2), nurses (17), family home visitors (4), social worker (1), and support staff (3). The objective of the program is to ensure a healthy future for children and their families.
The enclosed is a summary analytical review addressing material changes in financial statement captions year-over-year.
Statement of Financial Position:
- Due from the Windsor-Essex County Health Unit: Refer to the statement of cash flow for the decrease of $111,757 from December 31, 2016.
- Accounts payable: The decline in accounts payable in the amount of $50,487. At December 31, 2015 $40,800 was payable to a third party provider for scanning services of client files.
- Due to Ministry of Children and Youth Services in the amount of $64,399. The net decrease was as a result of the following: 1. 2015 and 2015 settlements being reclaimed in 2017 amounting to $32,721. 2. Settlement for 2017 in the amount of $27,793; 3. Reduction of other amounts owing from pre-2000 settlements of $59,471.
Statement of Operations and Accumulated Deficit:
- Program Supplies: The decrease in program supplies in the amount of $41,913. As indicated above under the Accounts Payable caption a scanning project was undertaken in 2016 to archive client files with significant retention periods. The project was substantially concluded in 2016.
- Purchased Services: The increase in purchased services in the amount of $15,323 resulting from an increase in translation services from 2016.
Proposed Motion
Whereas, at its May 25th, 2018, meeting of the Audit Committee reviewed the 2017 annual financial statements and recommended them to the Board for the Board’s approval,
Now therefore be it resolved that the Windsor-Essex County Board of Health approve the:
- Windsor-Essex County Health Unit 2017 audited annual financial statements
- Windsor-Essex County Health Unit 2017 Nurse Practitioner Program financial statements
- Windsor-Essex County Health Unit 2017 Healthy Babies/Healthy Children Program financial statements