2022-23 Budget year-end update

AMA Operations:

	Budget ($ 000’s)	Revised Budget ($ 000’s)	Projected Actual ($ 000’s)
Revenue Dues Other	16,173 4,793	19,435 4,248	19,840 4,631
	20,966	23,683	24,471
Operating Expenditures* Executive Office Southern Alberta Office Operations and Member Services Public Affairs Health Economics Professional Affairs Health System Transformation Priority Projects	3,993 789 10,071 2,305 2,425 2,084 1,122 4,139	4,116 853 10,117 2,305 3,032 2,084 1,122 2,044	4,126 853 9,716 2,105 2,512 1,482 1,072 1,742
	26,928	25,673	23,608
Transfer to (from) Reserves	(5,962)	(1,990)	863

The summarized budget is presented in the table above (the detailed budget is available on the website here). The budget was based on the Board’s plan to make the necessary resources available to ensure an agreement was reached and support members during the interim uncertainty. The revised budget was prepared following ratification of the agreement and reflected the more stable environment and the substantive changes in planned activity brough about by an agreement outlined in part 1 of this report. The projected actual column reflects our best estimate of the financial results to the end of the fiscal year September 30, 2023. Overall, a small surplus is expected for the year.

1. The revenue budget was based on a conservative estimate of membership revenue during the negotiations period. We will substantially exceed that mark, with full membership numbers surpassing the levels reached prior to the termination of the agreement in 2019.
2. Operating expenditures are comprised primarily of workforce (staff and physician volunteers) and facility costs. During the negotiations period hiring was generally frozen. With the new agreement mandates in place, we began the process of filling vacancies, the full impact of which, won’t be felt until 2023/24. Similarly, there were new committees and working groups arising from the agreement (e.g., Rates and Management Committee) that began late in the year.
3. The Priority Projects line reflects budget provisions made to pursue one-time investments in priority areas. The original budget included significant support towards reaching an agreement (e.g., legal case, negotiations table, public campaign, etc.). These budget provisions were not used because an agreement was reached. 

Board Reserves:

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

AMA Contingency Reserve

	Budget ($ 000’s)	Projected Actual ($ 000’s)
Opening Balance	16,339	16,665
Net income	490	1,075
Surplus (Deficit) from Operations	(5,962)	863
	10,867	18,603

1. Board Reserves – This is the minimum reserve holdings established by the Board for the specified purposes. The Board reserves are fully funded at required levels.
2. 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 for 2022/23 in the original budget to support negotiations. However, prudent planning during the challenges with government and positive investment returns this year, will leaving the contingency in a healthy position at the end of the year.