Board of directors e‑meeting May 10, 2019

Published: May 10, 2019

1. Attendance

1.1 Board members

Charles Harnick (Chair), Remy Boulbol (by Skype), Nancy Cooper, Christa Freiler, Derry Millar, Peter Owsiany, Sean Robichaud, Michel Robillard, James Yakimovich, Ann Marie Yantz, David Field (CEO/Ex Officio)

1.2 Staff

Janet Budgell, Mary‑Ann Cocchetto, Vince Correia, Tom Cowan, Louis Dimitracopoulos, Jayne Mallin, David McKillop, Stephanie Mealing, Kathleen Murphy, Marcus Pratt

1.3 Regrets

Carol Hartman

2. Meeting agenda

The meeting agenda was adopted.

3. Disclosure of Conflict of Interest

No conflict of interest was identified.

4. Minutes of Board of Directors Meetings

  • Minutes of the February 21, 2019 Board Meeting
  • Minutes of the February 22, 2019 Board Meeting
  • Minutes of the April 1, 2019 Board Meeting
  • Minutes of the April 12, 2019 Board Meeting
  • Minutes of the April 18, 2019 Board Meeting

DECISION: The Minutes of the Board meetings held February 21, 2019, February 22, 2019, April 1, 2019, April 12, 2019 and April 18, 2019, were adopted.

5. Audit & Finance Committee Meeting

  • Minutes of the April 3, 2019.

DECISION: The Minutes of the Audit & Finance Committee meeting held April 3, 2019 were adopted.

6. Clinic Savings Plan

The President and CEO presented a Report on the Clinic 2019/20 Funding Envelope and 2019/20 SLASS funding. The Chair advised that this report is for information and discussion only. Discussions are ongoing with respect to achieving the requisite reductions in a way that will cause the least amount of impact on front‑line services. LAO is attempting to achieve savings of $75M in the current fiscal year in the areas of administration, clinics, private bar and policy. Changes to the Refugee Program have previously been approved in order for LAO to restrict refugee spending on refugee law services to the federal funding envelope.

The Board discussed possible consultation options.

DECISION: The Board received:

  1. The Report on the Clinic 2019/20 Funding Envelope, and
  2. The update on the allocation of the ten percent reduction to SLASS funding for 2019/20.

One member abstained.

7. Update on Savings Opportunities

The Vice-President and CAO presented an update on savings opportunities. He reported as follows: projected revenue for 2019/20 is $433M and total expenditures are estimated at $508M, resulting in a projected deficit of $75M. LAO needs to reduce its projected deficit to around $20M. Anticipated savings through legislative changes, immigration service reductions and policy changes will impact the private bar by a total of approximately $38M annually. The implementation date is scheduled for July 1, 2019 and the total savings for the current fiscal year are estimated at $18.84M. Delay in implementation of the changes will decrease the savings and increase LAO’s deficit.

With respect to administrative savings, LAO has instituted a budget reduction of 10% across the organization. The anticipated annualized savings would total $17M in permanent savings. The anticipated savings for 2019/20 are estimated at $13.5M.

LAO is anticipating a $15M reduction in clinic funding.

The Vice-President highlighted the changes to LAO’s cash position. LAO spends approximately $38M per month. In the current financial circumstances, LAO will end the fiscal year with a cash reserve of only three weeks. Due to delays in implementing savings, the projected deficit as of today’s date has grown to $29.88M.

DECISION: The Board received the update on savings opportunities.

8. Board In-Camera Session

9. Meeting Adjournment

The meeting adjourned.