Report to Rapport au: Ottawa Board of Health Conseil de santé d Ottawa. November 17, novembre 2014

Transcription

1 Report to Rapport au: Ottawa Board of Health Conseil de santé d Ottawa November 17, novembre 2014 Submitted by Soumis par: Dr./D r Isra Levy, Medical Officer of Health/Médecin chef en santé publique Contact Person Personne ressource: Lou Flaborea, Account Manager / Gestionnaire Financial Services Unit / Unité des services financiers Deputy City Treasurer Controller Branch / Direction du trésorier municipal adjoint Contrôleur Finance Department / Service des finances , ext./poste 21728, Lou.Flaborea@ottawa.ca Ward: CITY WIDE / À L'ÉCHELLE DE LA VILLE File Number: ACS2014-OPH-IQS-0015 SUBJECT: 2014 OPERATING BUDGET Q3 BOARD OF HEALTH FOR THE CITY OF OTTAWA HEALTH UNIT STATUS REPORT OBJET: BUDGET DE FONCTIONNEMENT 2014 AU TROISIEME TRIMESTRE RAPPORT D ÉTAPE DU CONSEIL DE SANTÉ DE LA CIRCONSCRIPTION SANITAIRE DE LA VILLE D OTTAWA REPORT RECOMMENDATIONS That the Board of Health for the City of Ottawa Health Unit receive this report for information. RECOMMANDATIONS DU RAPPORT Que le Conseil de santé de la circonscription sanitaire de la ville d Ottawa prenne connaissance du présent rapport à titre d information.

2 BACKGROUND The purpose of this report is to present to the Board the third quarter operating results for Public Health Programs. Ottawa Public Health (OPH) management actively reviews their quarterly results to ensure that their respective spending and revenue results are not indicative of any underlying issues needing to be highlighted or addressed. The 2014 operating budget third quarter results present actual year-to-date revenues and expenditures against the amounts budgeted for the corresponding period. DISCUSSION Document 1 provides operating budget details on third quarter results for the various Ontario Public Health Standards. Financial information is presented by funding type, which includes cost-shared (75% province and 25% city); city funded (100% municipal); and provincial or federal funded (100% provincial or federal) along with a breakdown by specific program. Document 2 provides compensation information showing the actual salary, benefits and overtime costs incurred by OPH during the corresponding period. Q3 Operating Results Based on the results to September 30, 2014, OPH is projecting a balanced financial position for the current fiscal year. Table 1 outlines the actual annual expenditures and revenues by funding source, the year-to-date budget status and the forecast for 2014 year end. Overall expenditures will exceed the budget by $194K and offsetting revenues will cover those costs, therefore allowing OPH to deliver a balance budget.

3 Table 1: 2014 Q3 Operating Results (in thousands of dollars) Sept. 30 Net Surplus / (Deficit) Forecast Expenditures Forecast Revenues Net Forecast Surplus / (Deficit) Ontario Public Health Standards (Provincial Cost Shared Programs) 0 42,230-42,230 0 City Funded Programs 0 1,000-1,000 0 Provincial/Federal Funded Programs 0 10,533-10,533 Total All Programs 0 53,763-53,763 0 Q3 Compensation Results Document 2 shows the operating status for OPH compensation expenditures up to September 30, The current financial information shows OPH has spent 75% of its total compensation budget during the first nine months of 2014 operations. Operating Budget Adjustments and Transfers A summary of the budget adjustments and transfers made, either through the delegated authority given to the Medical Officer of Health or through Board and Council approved reports, is included in the quarterly operating status reports. Table 2 provides the details of the Q3 budget adjustments that resulted from the provincial funding announcement.

4 Table 2: Summary of Q3 Operating Budget Adjustments (in thousands of dollars) Increase / Description Increase / (Decrease) Expenditures Increase / (Decrease) Revenue (Decrease) Net Budget Chief Nursing Officer Infection Control Social Determinants of Health Priority Populations Healthy Smiles Ontario Workplace Smoking Cessation Panorama Mandated Programs One-Time Mandated Programs - Cost Shared Total Provincial Funding Update Funding for cost-shared programs was reflected in the 2014 budget with a projected 2.0% increase from the province. On November 5, 2014, OPH received confirmation of the 2014 funding level from the province, which confirms a 2% increase in funding for mandatory cost-shared programs. Funding amounts for the majority of 100% funded Ministry programs continue to be flatlined. As in previous years, as part of the annual provincial funding application process, OPH submitted an ambitious request for one-time Ministry grants, using the opportunity to obtain additional revenue to address local community needs. On November 5, 2014, OPH has also received confirmation that the Ministry will be providing one-time funding up to $1,065K for the 2014 fiscal year. Requested one-time investments of an additional $1,318K are not forthcoming Budget Planning Process OPH s long range financial plan is under significant pressure including The growing Public Health Funding and Accountability Agreement (PHFAA) performance indicators including an unfunded mandate for performance management systems coupled with unprecedented compensation pressures (contract settlements and benefits), job evaluation expenditures, and an urgent need to replace end-of-life technology systems that have become unstable are presenting an increasing challenge to reduce deficits in order to balance the annual budget.

5 In an effort to alleviate significant financial pressure, OPH will build on its continued commitment for fiscal responsibility and innovation, by identifying recommendations for efficiencies and disinvestment options. To address the shortfall, OPH will continue to appeal to the province for equitable base funding at a level that is no less than the provincial average. With 2014 being a municipal election year, a Council report that outlines direction on taxation targets or funding envelopes by departments is expected to be considered by the new Council in December. Based on the 2010 election, it is anticipated that the draft 2015 OPH budget will be tabled in January. RURAL IMPLICATIONS There are no rural implications to this information report. CONSULTATION The purpose of this report is administrative in nature and therefore no public consultation is required. LEGAL IMPLICATIONS There are no legal impediments to receiving the information in this report. RISK MANAGEMENT IMPLICATIONS There are no risk management implications associated with this information report. FINANCIAL IMPLICATIONS As outlined in the report. ACCESSIBILITY IMPACTS There are no accessibility implications associated with this report. TECHNOLOGY IMPLICATIONS There are no technology implications associated with this report at this time. BOARD OF HEALTH STRATEGIC PRIORITIES The recommendations in this report support the Board of Health Strategic Priority E3: Measure and report publicly on progress.

6 TERM OF COUNCIL PRIORITIES There are no term of council priorities associated with this report. SUPPORTING DOCUMENTATION DOCUMENT 1: Ottawa Public Health rd Quarter Operating Status Report DOCUMENT 2: Ottawa Public Health rd Quarter Compensation Status Report DISPOSITION This report is provided for information.