Meeting Date
Meeting Document Type
Information Report
Finance & Audit Committee Meeting
Audit Committee Members: Renaldo Agostino, Dr. Mark Awuku, Judy Lund
Audit Committee Regrets: Robert Maich
Administration: Ken Blanchette, Emily Durance (recorder), Michael Horrobin
QUORUM: Confirmed
- Call to Order: J. Lund, Acting Chair
- Move to In-Camera
Motion: That the meeting move to in-camera by Renaldo Seconded by: Dr. Awuku
CARRIED
The committee moved to In-Camera at 3:07 p.m. - Agenda Approval
Motion: That the meeting move to in-camera by Dr. Awuku Seconded by: Renaldo
CARRIED - Declaration of Conflict of Interest - None
- Move to In-Camera
- Approval of Minutes – June 7, 2024
Motion: That the minutes be approved by Renaldo
Seconded by: Dr. Awuku
CARRIED - Audit Committee Terms of Reference (M. Horrobin)
• The current Terms of Reference are strictly for the way the Committee had operated in the past, which was more of a singular mandate to handle the external audit, receiving of the financial statements, and recommendation of the financial statements to the Board.
• The committee agreed that, due to the changing responsibilities of the Audit Committee, this committee be renamed ‘Finance and Audit Committee’. The Terms of Reference will be redrafted to require a minimum of four meetings a year as the ‘Finance and Audit Committee’. A mandate that reviews budget vs actual on a quarterly basis as a key oversight of the Board.
• The Board will become much more involved and much more aware of where WECHU stands financially.
The committee will approve a revised draft Terms of Reference during the next meeting.
Motion made by: Dr. Awuku Seconded by: R. Agostino - Q2 Financial Report (M. Horrobin)
• M. Horrobin presented the Q2 Financial Report. This type of report will be presented on a quarterly basis going forward. It will include a detailed synopsis of where we are as an organization to optimize decision making financially as we move forward and project over the next couple of years. The goal is to create a strong framework that has flexibility.
• M. Horrobin stated that we are geared toward providing a lot more useful information to the Board that is impacting our decisions.
• The Board approved $3,115,427, but it was not received in full by the Ministry. There is no participation from the obligated municipalities for this program. HBHC program is 100% funded by the MCCSS in the amount of $3,091,990. The program started in April, but we were not aware of the complete amount received until June.
• At the approval of the budget, we were told there would be no one-time funding, except for voluntary mergers, so this impacted our ability to have any flexibility in the budget. However, in Q2 the Ministry did change from their initial communication and indicated that one-time funding may be made available for specific initiatives. There are four programs awaiting approval for one-time funding: Infection Prevention and Control (IPAC) Hub (the program is up and running but we are unsure if we will receive the requested amount of $615,00), RSV/COVID Immunization Administration/Management (submitted a budget for $774,000- we were told initially that there would be no money for RSV/COVID, so it was not budgeted, but it has since been expanded and a request to develop a program for RSV/COVID to priority populations- budget has been submitted, but we have not received the approval), Practicum Students (Public Health Inspectors training- bring in students to perform substantial duties of a PHI- we should expect what we received last year $40,000, even though the program costs are closer to $140,000), and Potassium Iodide (KI) Pills (We have had to start this program, purchase KI pills, and are in the process of distributing- the budget is around $500,000- we have been told that we will receive money, but unsure of the amount.)
• M. Horrobin reviewed the Budget vs Actual for the first 6 months of the year. WECHU is underspent by $1,226,292. Salaries and Benefits are the driving factor of this as we are under budget by 8.47% as of June 30th. This is due to staff vacancies and the time taken to fill vacancies. The other part of this is mandatory leaves (i.e. maternity leave). We move quickly to get a contract in place, but it is sometimes difficult to hire contract employees, so often there are positions that sit unfilled for months. Traditionally, all staff have been budgeted at the max rate, and contract staff come in usually under the max rate.
• The OMERS benefits is the big driver here as it is a very expensive pension plan. All staff are budgeted at the maximum rate with OMERs. Contract staff are not a part of the OMERS program, and this creates gapping.
• Professional fees (legal, audit, dentistry and consulting) are 52.1% under budget as a result of not moving to the University. There was money budgeted for the move.
• Insurance is under budget by 58.54%. The policy renewed in January 2024. The full amount will be budgeted for next year.
• Building maintenance is over budget by 41.07%. There was quite a bit of deferred maintenance as a result of the potential move to the University. WECHU is working closely with the landlord before the new year to complete work to the building and property that is their responsibility.
• The Oral Health program is under budget due to significant staffing vacancies. We are over budget in professional fees as we are outsourcing dental services to address a long wait list in the program.
• Dr. Awuku asked how WECHU compares with other health units when it comes to underspending. M. Horrobin responded that every Health Unit has the same challenges with staffing vacancies, but they budget differently than we do. Dr. Blanchette stated that underfunding for our Health Unit comes from historical management of the organization. He spoke to a different approach that we are taking to our budgeting; there are needs for capital spending and deferred maintenance to the building.
• An overriding theme Mike has seen is deferred maintenance on the building, and deferred IT spending due to the potential that WECHU was moving to the University. WECHU will be remaining at the site at 1005 Ouellette Avenue for at least the next three years, and WECHU IT is at end of life.
• There is a pay-equity plan for CUPE, but not one for ONA. We started last year to begin putting aside monies for the pay-equity plan, and this is allowed by the Ministry to protect the Organization.
• There will be money budgeted for the Leadership Team, Management Team, and IT team for Professional Development.
• A full space needs assessment will be conducted at 1005 Ouellette Avenue as we will be remaining at this site for the foreseeable future to optimize building’s space to ensure that it is a safe place for staff and clients.
• With regard to the 2025 Budget Outlook, the anticipated funding increases will likely be 1%, while salaries and benefits (which comprise 80% of the budget) will likely rise by 2% to 3%, creating a structural deficit.
• The Ministry of Health has made no indication on whether one-time funding will be approved. If an announcement is made about approvals, it may not occur until 2025.
• The Leadership Team is addressed these challenges by planning ahead and continually assessing risk.
Next Meeting: At the Call of the Chair
Motion: That the meeting move out of in-camera and adjourn by Dr. Awuku. Seconded by: R. Agostino
CARRIED
The meeting moved out of in-camera and adjourned at 4:20 pm. - Adjournment
RECORDING SECRETARY: E. Durance
SUBMITTED BY: K. Blanchette
APPROVED BY: