Prepared By:
Lorie Gregg, Director of Corporate Services
Date:
September, 2019
Subject:
Q2 Financial Results
Background
The Leadership Team of the Windsor-Essex County Health Unit (“the WECHU”) monitors financial results on an on-going basis for the following programs:
- Mandatory programs funded to a maximum of 75% (“Cost-Shared”) by the Ministry of Health and Long-Term Care (“MOHLTC”) and 25% by 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”);
- Related programs such as Vector-Borne Diseases and Small Drinking Water Systems, funded on a cost-shared basis to a maximum of 75% by the MOHLTC and 25% certain surrounding municipalities within the geographic boundaries of Windsor and Essex County;
- Related programs funded 100% by the MOHLTC;
- Related programs funded 100% by the Ministry of Children, Community and Social Services (“MCSS”). As at the date of this report, there have been no changes to the funding model.
- One-time business cases funded 100% by the MOHLTC.
The second quarter financial report to the Board includes a budget to actual comparison and narrative for material variances for all programs listed above.
COST-SHARED PROGRAM FINANCIAL RESULTS
The following is the financial information for the Cost-shared programs including Vector-Borne Diseases and Small Drinking Water Systems for the period January 1, 2019 to June 30, 2019.
| 2019 Budget | YTD Budget | YTD Actual 2019 | YTD Actual 2018 | Variance to Budget | % Spent | |
|---|---|---|---|---|---|---|
| Salaries | 13,255,133 | 6,627,567 | 5,408,360 | 5,906,244 | 1,219,207 | 41% |
| Employee Benefits | 3,575,890 | 1,787,945 | 1,515,522 | 1,684,183 | 272,423 | 42% |
| Travel and Meetings | 48,752 | 24,376 | 2,414 | 9,064 | 21,962 | 5% |
| Mileage | 216,425 | 108,213 | 95,327 | 94,109 | 12,886 | 44% |
| Professional Development | 109,100 | 54,550 | 15,890 | 27,295 | 38,660 | 15% |
| Association and Membership Fees | 45,000 | 22,500 | 32,118 | 34,525 | (9,618) | 71% |
| Office Supplies | 40,000 | 20,000 | 10,076 | 14,239 | 9,924 | 25% |
| Program Supplies | 714,626 | 357,313 | 272,770 | 276,185 | 84,543 | 38% |
| Office Equipment Rental | 142,000 | 71,000 | 51,116 | 70,113 | 19,884 | 36% |
| Advertising and Promotion | 8,500 | 4,250 | 709 | 1,297 | 3,541 | 8% |
| Purchased Services | 105,310 | 52,655 | 43,443 | 24,498 | 9,212 | 41% |
| Board Expenses | 22,450 | 11,225 | 7,709 | 8,714 | 3,516 | 34% |
| Professional Fees | 143,300 | 71,650 | 150,747 | 32,748 | (79,097) | 105% |
| Bank Charges | 20,000 | 10,000 | 9,946 | 8,046 | 54 | 50% |
| Rent | 770,000 | 385,000 | 322,652 | 349,109 | 62,348 | 42% |
| Building Maintenance | 161,300 | 80,650 | 86,758 | 81,854 | (6,108) | 54% |
| Utilities | 155,000 | 77,500 | 56,394 | 62,589 | 21,106 | 36% |
| Taxes | 221,000 | 110,500 | 102,142 | 103,754 | 8,358 | 46% |
| Insurance | 83,500 | 41,750 | 79,749 | 79,351 | (37,999) | 96% |
| Telephone | 121,200 | 60,600 | 45,946 | 54,648 | 14,654 | 38% |
| Security | 17,500 | 8,750 | 50,129 | 10,442 | (41,379) | 286% |
| Vehicle Expenses | 2,100 | 1,050 | 571 | 279 | 479 | 27% |
| Postage and Freight | 33,500 | 16,750 | 15,863 | 8,473 | 887 | 47% |
| Parking | 91,000 | 45,500 | 45,468 | 41,746 | 32 | 50% |
| 20,102,586 | 10,051,293 | 8,421,819 | 8,983,505 | 1,629,474 | 42% | |
| Offset revenues | (200,000) | (100,000) | (73,292) | (71,547) | (26,708) | 37% |
| 19,902,586 | 9,951,293 | 8,348,527 | 8,911,958 | 1,602,766 | 42% | |
| West Nile Virus | 350,000 | 175,000 | 22,169 | 24,018 | 152,831 | 6% |
| 20,252,586 | 10,126,293 | 8,370,696 | 8,935,976 | 1,755,597 | 41% |
For the period January 1, 2019 to June 30, 2019, cash flows relating to the 2019 program year are as follows:
MOHLTC
$6,919,278
Corporation of the City of Windsor
1,566,093
Corporation of the County of Essex
1,308,972
Corporation of the Township of Pelee
1,695
$9,796,038
At June 30, 2019, the variance from budget to actual total expenses amounts to $1,629,474. Specific variances are as follows:
- Salaries and Benefits: Expenditures in these financial captions relate to salaries and benefits paid to the WECHU staff in service of the Mandatory Cost-Shared Program. The combined variance from budget of $1,491,630 is attributed to: i) Labour disruption involving the WECHU staff represented by the Ontario Nurses Association (“ONA”) for the period March 8th, 2019 to May 8th, 2019 (approximate savings of $700,000); ii) Given the uncertainty that arose with the April 11th, 2019, Ontario Provincial Budget, certain positions, predominantly non-union, remained unfilled (approximate savings of $300,000).
- Professional Development: Expenditures in this financial caption support professional development opportunities for the WECHU staff to earn or maintain professional credentials or skills required to fulfil their roles and responsibilities. At June 30, 2019, the variance compared to budget amounted to $38,660 and can be attributed to: i) The aforementioned labour disruption; ii) Given the uncertainty that arose with the April 11th, 2019, Ontario Provincial Budget, professional development is being scrutinized and only non-elective professional development is being approved.
- Association and Membership Fees: Expenditures in this financial caption relate to memberships in an association or other group by virtue of professional requirements or to support initiatives associated with Public Health. The majority of Association and Membership Fees are paid in the early in the fiscal year. The WECHU anticipates that this financial statement caption will remain within its overall budget for fiscal 2019.
- Program Supplies: Expenditures in this financial caption support the functions of departments, those that directly support Public Health Programs as well as those that support departments such as Information Technology and Communications. At June 30, 2019, the variance compared to budget amounted to $84,543 and can be attributed to: i) The aforementioned labour disruption; ii) Timing of program activities.
- Professional fees: Expenditures in this financial caption include legal, audit and consulting fees paid to third parties. The budget variance in Professional fees relates to an increase in legal costs to support collective bargaining with the WECHU employees represented by the ONA. Total professional fees associated with those negotiations and the labour disruption amounted to $114,090.
- Building Maintenance: Expenditures in this financial caption include costs to maintain Windsor, Essex and Leamington locations. More specifically, these costs relate to building and equipment maintenance, grounds keeping and housekeeping supplies. The variance here relates primarily to grounds keeping costs. These costs are incurred in five (5) of the twelve (12) months of the fiscal year (January to March, November and December). Greater than one-half of the year’s grounds budget was expended in Q1 of 2019 ($7,440 of the total $12,300).
- Insurance: Expenditures in this financial caption include costs associated with general liability insurance, property insurance, director and office insurance coverage as well as cyber coverage. Insurance premiums are paid at the beginning of the year. The WECHU anticipates that the budget for this financial statement caption will remain slightly underspent for fiscal 2019.
- Security: Expenditures in this financial caption include security costs contracted on an as needed basis for after-hours events at our Windsor office location. The WECHU incurred additional security costs of $46,984 for the period March 8, 2019 to March 8th, 2019, on account of the labour disruption.
- Offset revenue: Revenues included in the financial caption relate to interest, proceeds on sale of tangible capital assets, parking revenue, vaccine recoveries, sales of contraceptives as well as course fees relating to the food handler course and examination. At June 30, 2019, offset revenue is under budget by $26,708, due to the labour disruption. More specifically, $12,000 of parking revenue from staff parking was foregone during the labour disruption. Additionally, offset revenue earned on account of immunizations was forgone during the labour disruption as school suspensions under the ISPA were deferred to fall of 2019.
HEALTHY BABIES HEALTHY CHILDREN PROGRAM FINANCIAL RESULTS
| 2019 Budget | YTD Budget | YTD Actual 2019 | YTD Actual 2018 | Variance to Budget | % Spent | |
|---|---|---|---|---|---|---|
| Salaries and Benefits | 2,629,189 | 1,314,595 | 1,005,161 | 1,231,909 | 309,434 | 38% |
| Mileage and Travel | 63,000 | 31,500 | 24,732 | 25,162 | 6,768 | 39% |
| Professional Development | 10,400 | 5,200 | 747 | 7,299 | 4,453 | 7% |
| Program Supplies | 38,252 | 19,126 | 8,883 | 14,710 | 10,243 | 23% |
| Purchased Services | 15,000 | 7,500 | 2,176 | 3,664 | 5,324 | 15% |
| Professional Fees | - | - | - | 2,900 | - | 0% |
| 2,755,841 | 1,377,921 | 1,041,699 | 1,285,644 | 336,222 | 38% | |
| Funding - MCCSS | (2,755,841) | (1,377,921) | (1,377,929) | (1,399,929) | 9 | 50% |
| - | - | (336,230) | (114,285) | 336,230 |
The Healthy Babies/Healthy Children Program is funded through the Ministry of Children, Community and Social 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.
For the period January 1, 2019 to June 30, 2019, the HBHC program underspent compared to budget in the amount of $336,230. Factors contributing this include: 1. Labour disruption involving the WECHU staff represented by the ONA for the period March 8th, 2019 to May 8th, 2019. This resulted in a variance in salaries and benefits of approximately $270,000, mileage of $6,000, professional development of $4,453 and program supplies of $10,243; 2. Lower than anticipated purchased services costs (i.e. translation) because of our use of an Arabic speaking nurse to address the needs of our community.
NURSE PRACTITIONER PROGRAMS
| 2019 Budget | YTD Budget | YTD Actual 2019 | YTD Actual 2018 | Variance to Budget | % Spent | |
|---|---|---|---|---|---|---|
| Salaries and benefits | 146,617 | 73,309 | 50,055 | 73,284 | 23,254 | 34% |
| 146,617 | 73,309 | 50,055 | 73,284 | 23,254 | 34% | |
| Funding - MCCSS | (139,000) | (69,500) | (69,508) | (69,508) | 8 | 50% |
| 7,617 | 3,809 | (19,453) | 3,776 | 23,262 |
The Nurse Practitioner Program is funded through the Ministry of Children, Community and Social Services. This program supports 1 FTE (nurse practitioner). The objectives of the program are to promote healthy pregnancy, birth and infancy for children, improve parenting and family supports, strengthen early childhood development, learning and care.
At June 30, 2019, this program is underspent by $23,262 due to the labour disruption involving the WECHU staff represented by the ONA for the period March 8th, 2019 to May 8th, 2019.
FINANCIAL INFORMATION FOR RELATED PROGRAMS FUNDED 100% BY THE MOHLTC
| 2019 Budget | YTD Budget | YTD Actual 2019 | YTD Actual 2018 | Variance to Budget | % Spent | |
|---|---|---|---|---|---|---|
| Salaries and Benefits | 1,207,326 | 603,663 | 582,860 | 557,685 | 20,803 | 48% |
| Admin and Accommodation | 31,445 | 15,723 | 15,722 | 16,575 | 1 | 50% |
| Travel and Meetings | 8,000 | 4,000 | 231 | 647 | 3,769 | 3% |
| Mileage | 10,000 | 5,000 | 8,227 | 8,031 | (3,227) | 82% |
| Professional Development | 5,500 | 2,750 | 1,537 | 2,976 | 1,213 | 28% |
| Association and Membership Fees | 300 | 150 | 373 | 546 | (223) | 124% |
| Office Supplies | 4,500 | 2,250 | 44 | 342 | 2,206 | 1% |
| Program Supplies | 100,229 | 50,115 | 77,981 | 66,269 | (27,867) | 78% |
| Purchased Services | 162,400 | 81,200 | 58,150 | 31,805 | 23,050 | 36% |
| Total expenditures | 1,529,700 | 764,850 | 745,125 | 684,876 | 19,725 | 49% |
| Offset revenue | - | - | - | (6,300) | - | 0% |
| Funding - MOHLTC | (1,529,700) | (764,850) | (764,853) | (704,400) | 3 | 50% |
| - | - | (19,728) | (25,824) | 19,728 |
The Healthy Smiles Ontario Program is funded through the Ministry of Health and Long-Term Care. This program supports 14.25 FTEs comprised of a manager (0.75), dental assistants (5.5), dental hygienists (5.5), a health promotion specialist (0.5), and support staff (2). This program provides preventative, routine, and emergency and essential dental treatment for children and youth, from low-income families, who are 17 years of age or under
For the period January 1, 2019 to June 30, 2019, the HSO budget is underspent $19,723. The most notable variances are as follows:
- A variance of $20,803 related to Salaries and Benefits. This is due to in part because of timing of recruitment (approximately $7,300).
- A variance of $27,867 related to Program Supplies. The timing of Program Supplies varies annually. Adding to this were certain acquisitions and repairs of dental equipment of $14,910.
- A variance of $23,050 related to Purchased Services, which includes professional services provided by dentists as well as translation. As reported in at Q1 of 2019, there were fewer available dentists hours in the months of February and March. Subsequent to March 31, 2019, additional dentists hours are available. It is anticipated that the Purchased Services budget will trend to be on budget for the remainder of the fiscal year.
| 2019 Budget | YTD Budget | YTD Actual 2019 | YTD Actual 2018 | Variance to Budget | % Spent | |
|---|---|---|---|---|---|---|
| Salaries and benefits | 546,350 | 273,175 | 257,339 | 258,241 | 15,836 | 47% |
| Mileage | 30,000 | 15,000 | 17,743 | 16,815 | (2,743) | 59% |
| Travel and Meetings | 3,045 | 1,523 | 734 | 1,794 | 789 | 24% |
| Professional Development | 3,380 | 1,690 | - | 4,291 | 1,690 | 0% |
| Program Supplies | 28,725 | 14,363 | 2,499 | 12,421 | 11,864 | 9% |
| Purchased Services | 25,200 | 12,600 | 7,774 | 7,653 | 4,826 | 31% |
| Total expenditures | 636,700 | 318,350 | 286,089 | 301,215 | 32,261 | 45% |
| Funding - MOHLTC | (636,700) | (318,350) | (307,605) | (318,349) | (10,745) | 48% |
| - | - | (21,516) | (17,134) | 21,516 |
Base funding for this initiative must be used in the planning and implementation of comprehensive tobacco control activities across prevention, cessation, prosecution, and protection and enforcement at the local and regional levels. Boards of Health must comply and adhere to the Smoke-Free Ontario Strategy: Public Health Unit Tobacco Control Program Guidelines and the Directives: Enforcement of the Smoke-Free Ontario Act.
At June 30, 2019, this program is underspent by $32,261. In May of 2019, the MOHLTC approved certain one-time funding up to March 31, 2019 for cannabis related activities. The total one-time funding approval amounted to $96,700, of which, $37,656 was expended in fiscal 2018, and $44,158 was expended in Q1 of 2019, thus taking pressure off the calendar 2019 budget for this program initiative.
| 2019 Budget | YTD Budget | YTD Actual 2019 | YTD Actual 2018 | Variance to Budget | % Spent | |
|---|---|---|---|---|---|---|
| Salaries and benefits | 546,350 | 273,175 | 257,339 | 258,241 | 15,836 | 47% |
| Mileage | 30,000 | 15,000 | 17,743 | 16,815 | (2,743) | 59% |
| Travel and Meetings | 3,045 | 1,523 | 734 | 1,794 | 789 | 24% |
| Professional Development | 3,380 | 1,690 | - | 4,291 | 1,690 | 0% |
| Program Supplies | 28,725 | 14,363 | 2,499 | 12,421 | 11,864 | 9% |
| Purchased Services | 25,200 | 12,600 | 7,774 | 7,653 | 4,826 | 31% |
| Total expenditures | 636,700 | 318,350 | 286,089 | 301,215 | 32,261 | 45% |
| Funding - MOHLTC | (636,700) | (318,350) | (307,605) | (318,349) | (10,745) | 48% |
| - | - | (21,516) | (17,134) | 21,516 |
A description of other related programs is included below:
Nursing Initiative: The Amending Agreement for 2019 received August 20, 2019, aggregates the following program initiatives under “Nursing Initiatives”. These include: the Chief Nursing Officer Initiative; the Infection Prevention and Control Nursing Initiative; and the Social Determinants of Health Nursing Initiative. Base funding for these initiative support the salaries and benefits of 4 nursing FTE’s or greater, with certain specific qualifications. At June 30, 2019, the aggregate underspent budget amounted to $69,122, which resulted from the labour disruption involving the WECHU staff represented by the ONA for the period of March 8th, 2019 to May 8th, 2019.
Enhanced Food Safety – Haines Initiative: This initiative was established to support implementing the Food Safety Program Standard under the Ontario Public Health Standards (“OPHS”). At June 30, 2019, there is a minor negative variance of $2,328 due to timing of purchases. It is not anticipated that the funding for this initiative will be overspent at December 31, 2019.
Enhanced Safe Water: This initiative was established to increase the Board of Health’s capacity to meet the requirements of the Safe Water Program Standard under the OPHS. At June 30, 2019, there is no negative variance to report on.
Harm Reduction Program Enhancement: Base funding for this initiative supports the Board of Health’s in the activities associated with its Local Opioid Strategy. More specifically it supports 2.5 FTEs dedicated to working on activities associated with: i) Our local opioid response; ii) Naloxone Distribution and Training; iii) Opioid Overdose Early Warning and Surveillance. At June 30, 2019, the budget for this program initiative is underspent by $17,933, which resulted from the labour disruption involving employees represented by the ONA (approximately $15,000) for the period March 8th, 2019 to May 8th, 2019, as well as other staff vacancies.
Infectious Disease Control Initiative: This initiative was established to support the hiring of infectious diseases control positions (4.5 FTEs) and supporting these staff to monitor and control infectious diseases. They serve to enhance the Board of Health’s ability to handle and coordinate increased activities related to outbreak management. At June 30, 2019, the budget for this program initiative is underspent by $26,027, which resulted from the labour disruption involving employees represented by the ONA for the period March 8th, 2019 to May 8th, 2019.
Needle Exchange Program Initiative: This initiative was established to support the purchase of needles and syringes, and their associated disposal costs, for the Board of Health’s Needle Exchange Program. At June 30, 2019, there are no negative variances to report on.
FINANCIAL INFORMATION FOR RELATED PROGRAMS FUNDED 100% BY THE MOHLTC
| 2019 Budget | YTD Budget | YTD Actual 2019 | YTD Actual 2018 | Variance to Budget | % Spent | |
|---|---|---|---|---|---|---|
| Salaries and benefits | 546,350 | 273,175 | 257,339 | 258,241 | 15,836 | 47% |
| Mileage | 30,000 | 15,000 | 17,743 | 16,815 | (2,743) | 59% |
| Travel and Meetings | 3,045 | 1,523 | 734 | 1,794 | 789 | 24% |
| Professional Development | 3,380 | 1,690 | - | 4,291 | 1,690 | 0% |
| Program Supplies | 28,725 | 14,363 | 2,499 | 12,421 | 11,864 | 9% |
| Purchased Services | 25,200 | 12,600 | 7,774 | 7,653 | 4,826 | 31% |
| Total expenditures | 636,700 | 318,350 | 286,089 | 301,215 | 32,261 | 45% |
| Funding - MOHLTC | (636,700) | (318,350) | (307,605) | (318,349) | (10,745) | 48% |
| - | - | (21,516) | (17,134) | 21,516 |
Public Health Inspector Practicum Program: This one-time funding supports the hiring of approved Public Health Inspector Practicum positions. Eligible costs include student salaries, wages and benefits, transportation expenses associated with practicum positions, equipment and educational expenses. This funding relates to practicum placements for the four-month period, which commenced May of 2019 and concludes in August of 2019. At June 30, 2019, there are no negative variances to report on.
Mandatory Programs - Enhanced Mosquito Surveillance: This one-time funding supports an enhanced surveillance program. Eligible costs include salaries for students, supplies and additional equipment, identification and testing expenses, promotional costs and mileage. At June 30, 2019, there are no negative variances to report on.
New Purpose-Built Vaccine Refrigerators: This one-time funding supports the acquisition of one new twenty-five (25) cubic foot purpose-built refrigerator used to store publicly funded vaccines. At June 30, 2019, there are no negative variances to report on. It is anticipated that the costs associated with this purchase will be reflected in the Q3 financial results.
Approved by:
Theresa Marentette, CEO