2018-19 Budget year-end update

AMA Operations:

	Projected Actual ($ 000’s)	Budget ($ 000’s)	Variance ($ 000’s)
Revenue Dues Other	15,529 5,071	17,732 4,8447	2,203 (227)
Total Revenue	20,600	22,576	1,976
Operating Expenditures* Executive Office Southern Alberta Office Operations and Member Services Public Affairs Health Economics Professional Affairs Health System Transformation Priority Projects	3,838 1,060 9,404 2,260 2,364 2,081 984 8,056	3,864 983 8,984 1,965 2,265 1,809 787 2,723	(26) 77 420 295 99 272 197 5,333
	30,047	23,380	6,667
Transfer to Reserves	(9,447)	(804)	8,643

The Board’s two-year plan balanced savings and the use of reserves to ensure resources were available to deliver on essential elements including, representation, advocacy (public and lawsuit) and physician compensation matters.  As a result of strong member retention and judicious use of resources we will end the fiscal year in a much stronger financial position than budgeted.

1. The membership has shown strong support for the AMA with retention of full members remaining close to levels reached when the prior agreement with government was in place.
2. Operating expenditures are comprised primarily of workforce (staff and physician volunteers) and facility costs.  The operating budget incorporated roughly $3 million in direct savings including reductions in staff salaries, committee honoraria rates and travel and facility costs. Actual expenditures in these areas are expected to closely match the budget and savings are generally a result of reduced in-person activity during COVID restrictions.
3. Budget provisions were made under Priority Projects to advance in key areas including:

• Physician representation - Without an agreement with government, negotiations are more local and require increase resourcing to carry out.  With interest-based discussions continuing for much of the year, there were substantial savings for the year.
• Income Equity –The overhead, hours of work, training, and market assessment studies were completed during the year.
• Advocacy - Resources were included to support a broad range of activity to achieve a negotiated agreement with government, including social media, earned and paid media and grass roots activity coordinated through the Joint Physician Advocacy Committee. With interest-based discussions continuing through the summer, the large-scale activity we had prepared for did not occur. 

Board Reserves:

	Projected Actual ($ 000's)	Budget ($ 000’s)
Emergency	10,213	10,213
Capital	3,508	3,508
Strategic	1,000	1,000
	14,721	14,721

AMA Contingency Reserve

	Projected Actual ($ 000's)	Budget ($ 000’s)
Opening Balance	17,542	15,074
Net income	(400)	377
Operating deficit	(804)	(9,447)
	16,338	6,004

1. Board Reserves – This is the minimum reserve holdings established by the board for the specified purposes. The Board reserves are currently funded at required levels.  
2. AMA Contingency Reserve – This is the reserve available to fund key activities that are cyclical or one-time in nature.  A sizable draw from the contingency reserve was planned to deliver on the essential elements identified by the Board.  With strong membership retention and judicious use of resources during negotiations, the draw from reserves was far lower than budgeted and the reserve value has been preserved.