PREPARED BY: Finance
DATE: November 12, 2026
SUBJECT: 2026 Q3 Financial Report
BACKGROUND/PURPOSE
The Ontario Ministry of Health requires boards of health to submit quarterly Standards Activity Reports to provide interim financial forecasts, program activity information, and explanations for material variances from approved budgets. The 2026 Q3 Standards Activity Report for the Board of Health for the Windsor-Essex County Health Unit (WECHU) covers the period ending September 30, 2026. This report provides the Board of Health with a summary of the completed Q3 financial submission, including base funding, one-time funding, variance explanations, and vaccine reimbursement information.
DISCUSSION
The updated Q3 Standards Activity Report forecasts total 2026 base-funded expenditures of $27,988,380 against an approved budget of $28,491,910, resulting in a projected year-end underspend of $503,530 (1.8%). Direct program expenditures are forecasted to be $1,030,653 below budget, while indirect costs are projected to exceed budget by $527,123.
| Category | Budget / Approval | YTD Actual | Forecast / Total | Variance Under / (Over) |
|---|---|---|---|---|
| Base Funding | $28,491,910 | $20,503,864 | $27,988,380 | $503,530 under budget (1.8%) |
| Direct Costs | $23,627,798 | $16,373,186 | $22,597,146 | $1,030,653 under budget (4.4%) |
| Indirect Costs | $4,864,112 | $4,130,678 | $5,391,235 | ($527,123) over budget (10.8%) |
| 2025-26 One-Time Funding | $3,225,900 | $2,289,459 total actuals | $2,289,459 | $936,441 under approval (29.0%) |
Key base-funding variances. Under the updated reporting threshold, variance explanations are required for expenditure categories with variances of both at least 5% and $25,000, as well as for expenditures reported against a zero budget. A total of ten base-funding variance explanations have been identified. Significant projected underspends are reported in Effective Public Health Practice, Population Health Assessment, Healthy Pregnancy and Preparation for Parenting Education, Vaccine Management, Tuberculosis, Safe Water, Oral Health Assessment and Surveillance, Harm Reduction Program Enhancement, Substance Use Prevention and Supports, and Indirect Programs. These variances are primarily attributable to staffing vacancies and recruitment timelines, seasonal timing of program activities, deferred procurement, lower-than-anticipated program demand, and reduced outbreak-related activity. Indirect costs are forecasted to exceed budget by $527,123, primarily due to increased legal and professional service fees, consulting and advisory support, labour relations and collective bargaining costs, information technology system enhancements, and other operational requirements.
| Program | Variance ($) | Variance Type | Variance % |
|---|---|---|---|
| Oral Health Assessment & Surveillance | $129,617 | Under Budget | 14.8% |
| Vaccine Management | $155,526 | Under Budget | 15.8% |
| Substance Use Prevention and Supports | $29,060 | Under Budget | 7.9% |
| Effective Public Health Practice | $59,191 | Under Budget | 5.8% |
| Population Health Assessment | $46,462 | Under Budget | 7.5% |
| Tuberculosis | $73,959 | Under Budget | 7.3% |
| Harm Reduction Program Enhancement | $51,435 | Under Budget | 11.3% |
| Healthy Pregnancy & Preparation for Parenting Education | $60,077 | Under Budget | 17.8% |
| Safe Water | $33,777 | Under Budget | 6.3% |
| Indirect Costs | ($527,123) | Over Budget | (10.8%) |
One-time funding. The revised template separates one-time funding by approval period. For 2025-26, approvals total $3,225,900, with $1,572,919 reported for April to December 2025 and $716,540 for January to March 2026, for total actual expenditures of $2,289,459 and an unspent variance of $936,441, or 29.0%. The largest remaining balances relate to COVID-19 Vaccine Program funding ($376,078) and RSV Prevention Program funding ($487,789), reflecting delayed funding announcements, reduced vaccine demand, and fewer immunization clinics and administration costs. The Purpose-Built Immunization Product Refrigerator was completed within scope and $25,339 under approval. No 2026-27 one-time funding approvals, expenditures, or forecasts are reported.
Vaccine reimbursement. The revised Q3 vaccine reimbursement section reports 533 Meningococcal Quadrivalent vaccine doses. The corresponding reimbursements are $4,530.50. Reported doses must match the related PEAR/PR1043 reports and UIIP reimbursement forms submitted with the quarterly report.
IPAC Hub (Q3 2026) - For Q3 of the 2026-2027 fiscal year, the Windsor-Essex IPAC Hub remains on track to deliver its planned program activities and staffing commitments. Year-to-date expenditures as of September 30, 2026 totaled $307,898, with a projected year-end expenditure of $635,708 against an approved budget of $642,200, resulting in a forecasted underspend of approximately $6,492 (1.0%). The Manager position was vacant during August and September but was successfully filled in October 2026. In addition, a Coordinator position was added in October to further support program operations. Staffing levels are stable, with 5.75 FTEs in place, including 4.5 frontline positions dedicated to providing infection prevention and control services across the region and 1.25 non-frontline positions supporting management and administrative functions. Professional development expenditures are projected to exceed budget due to staff participation in the IPAC Canada 2026 National Education Conference. Travel expenditures are also forecasted to be slightly above budget, primarily as a result of increased mileage claims associated with program delivery activities. Overhead expenditures are expected to exceed budget due to higher-than-anticipated costs for M-Files and Microsoft Office licensing. All other expenditure categories are projected to remain within approved budget levels. Overall, the Windsor-Essex IPAC Hub continues to operate within approved funding parameters and is forecasting a balanced year-end position.
MCCSS (Q3 2026) – Currently there is no formal quarterly reporting cycle for this program. Any ministry required reporting for the 2026-2027 program will be shared with the board as completed. For the first 3 quarters ending September 30, 2026, the Healthy Babies Healthy Children (HBHC) program remains financially on track, with total salary expenditures of $1,088,603 and employee benefit costs of $324,978, resulting in combined compensation expenses of approximately $1,413,581 for the first two quarters. Salary costs were closely aligned with the approved budget, with an overall variance of only $12,535 (0.56%), reflecting stable staffing levels and effective management of personnel resources. In addition to compensation costs, the program incurred approximately $133,071 in operating expenses, primarily related to facility occupancy/rent ($81,642), staff mileage and insurance reimbursements ($30,648), audit services ($8,475), information technology and communications ($2,259), interpretation and translation services ($9,242), and other program support costs ($700). Total HBHC expenditures for Q1-Q3 were therefore approximately $1,546,652, with spending patterns consistent with program delivery requirements and no significant financial concerns identified at this time.
The updated Q3 Standards Activity Report indicates that WECHU is forecasting an overall base-funded underspend of approximately $503,530, or 1.8%, by year-end. However, because the provincial-share calculation is based on the applicable funding-share methodology, forecasted provincial-share expenditures exceed the approved allocation by approximately $611,745, or 2.9%. Several program variances are expected to change through Q3 and Q4 as recruitment, seasonal activities, procurement, and program delivery continue. The completed Ministry reporting template will be submitted in accordance with Ministry timelines.