2016-17 Financial forecast

The financial forecast for 2016-17 was based on the most current financial results and a review of the status of AMA activities.

AMA Operations:

 

Projected Actual ($ 000’s)

Budget ($ 000’s)

Variance ($ 000’s)

Revenue

Dues

Other

 

16,409

3,397

  

16,125

3,257

 

284

140

Total Revenue

 19,806

 19,382

424

Operating Expenditures

Executive Office

Southern Alberta Office

Corporate Affairs

Public Affairs

Health Economics

Professional Affairs

Priority Projects

 

5,310

801

6,205

2,115

2,294

1,182

875

 

5,488

801

6,205

2,265

2,294

1,182

1,125 

 

178 

 

 

150

 

 

250

 

18,782

19,360

 578

Transfer to Reserves

1,024

22

 1,002

1. The membership grew by roughly 400 members in 2016-17 versus budgeted growth of 250. Similarly, ADIUM insurance sales exceeded targeted growth resulting in additional revenue.

2. The net savings under Executive Office is comprised of two key items; first, with the North Zone Medical Staff Association now incorporated, grant amounts accrued from prior years were recovered which generated a current year savings. That recovery is partially offset by the additional income equity meeting held with RF, for a net anticipated savings of $178,000 for the year.

3. With Amending Agreement discussions occurring, much of the provision set aside for government affairs was not spent, generating a savings for the year in Public Affairs.

4. Spending on Priority Projects, which included implementation of the Amending Agreement, governance review recommendations and insight and engagement project was less than the provisions set aside in the budget.

Board Reserves:

 

Projected Actual ($ 000's)

Budget ($ 000’s) 

Variance ($ 000's)

Emergency

8,648

8,648

Capital

3,290

3,290

 

Strategic

1,000

280

720

 

12,938

12,218

720

AMA Contingency Reserve

 

Projected Actual
($ 000's)

Budget
($ 000’s)

Variance
($ 000's)

Opening Balance

10,74

9,672

1,068

Net income

427

290 

137

Operating surplus

1,024

22

1,002

PCC one-time initiatives

 

(250) 

250

Negotiations

(200)

(300)

100

Choosing Wisely Canada

(190)

(190) 

 

Delivery Frameworks/Practice Support

0

(400)

 400

   

9,672

 

7,183

 

2,489

AMA Agreement

 

Projected Actual
($ 000's)

Budget
($ 000’s)

Variance
($ 000's)

Opening Balance

3,594

3,654

(60)

Net income

55

55

 

Physician Compensation Committee

(70)

(350)

280

Other Agreement
implementation activity

(216)

(280)

64

Choosing Wisely

(50)

(50)

 

Section Grants

(286)

(286)

 

PCN Exec/PCA/PCN Evolution

(327)

(327)

 

2,700

2,416

284

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. The board approved up to $720,000 in spending from the strategic reserve to develop a secure messaging platform with a belief that the cost would be recovered over time through user fees. However, with the product now being provided at no cost to members, the actual cost of development of $554,000 has been absorbed within the contingency reserve rather than through the strategic reserve.

2. AMA Contingency Reserve – The larger opening balance is the sum of the prior year surplus and an improvement in the pension plan funding level, less the investment in secure messaging. Funding negotiated under the Amending Agreement has funded costs to support deliver initiatives and with the overhead study not starting until September, the PCC provision won’t be spent this year.

3. AMA Agreement – These one-time funds were provided through the AMA Agreement and are used to support physicians’ involved in agreement related implementation activity.

The Alberta Medical Association stands as an advocate for its physician members, providing leadership & support for their role in the provision of quality health care.