Financial Forecast
AMA Operations:
| Projected Actual ($ 000’s) | Budget ($ 000’s) | Projected Variance ($ 000’s) | |
|---|---|---|---|
| Revenue | |||
| - Dues | 18,801 | 18,801 | |
| - Other | 4,084 | 4,084 | |
| Total revenue | 22,885 | 22,885 | |
| Operating Expenditures | |||
| - Executive Office | 6,273 | 6,223 | (50) |
| - Southern Alberta Office | 974 | 1,024 | 50 |
| - Corporate Affairs | 6,954 | 7,004 | 50 |
| - Public Affairs | 2,229 | 2,229 | |
| - Health Economics | 2,476 | 2,476 | |
| - Professional Affairs | 1,549 | 1,549 | |
| - Priority Projects | 1,780 | 2,280 | 500 |
| 22,235 | 22,785 | 550 | |
| Transfer to Reserves | 650 | 100 | 550 |
1. At the mid-point of the year, we expect to have an operating surplus of roughly $.5 million.
2. The number of new physicians is below historical levels but that was anticipated and we expect to reach the forecast dues budget.
3. Operating expenditures are comprised primarily of workforce (staff and physician volunteers) and facility costs. Actual expenditures in these areas are expected to closely match the budget.
4. Budget provisions were made under Priority Projects to advance in key areas including:
- Representation capacity to support the AMA’s new representation mandates (e.g. AMSHP physicians, physician employees).
- The AMA’s healthy work environments framework including areas of diversity and inclusion, leadership and Psycho-Social Wellness and Safety (physician wellness).
- Physician consultation on AMA Agreement related activities (e.g. Physician Supply, Appropriateness)
- Informatics (e.g. CPAR/CII, EMR vendor strategy, Connect Care)
We expect total spending in these areas to be less than budgeted because initial work focused on planning and we are optimistic that through new partnerships (e.g. CMA MOU) some of the financial burden can be shared.
Board Reserves
| Projected Actual ($ 000’s) | Budget ($ 000’s) | Projected Variance ($ 000’s) | |
|---|---|---|---|
| Emergency | 9,641 | 9,641 | |
| Capital | 3,504 | 3,504 | |
| Strategic | 1,000 | 1,000 | |
| 14,145 | 14,145 |
AMA Contingency Reserve
| Projected Actual ($ 000’s) | Budget ($ 000’s) | Variance ($ 000’s) | |
|---|---|---|---|
| Opening balance | 11,667 | 9,287 | 2,380 |
| Net income | 372 | 372 | |
| Operating surplus | 650 | 100 | 550 |
| Negotiations | (200) | (200) | |
| Income Equity | (971) | (971) | |
| 11,518 | 8,588 | 2,930 |
AMA Agreement
| Projected Actual ($ 000’s) | Budget ($ 000’s) | Variance ($ 000’s) | |
|---|---|---|---|
| Opening balance | 1.673 | 1.600 | 73 |
| Net income | 24 | 24 | |
| Other Agreement implementation activity | (195) | (195) | |
| Section grants | (308) | (308) | |
| System Integration | (743) | (743) | |
| 451 | 378 | 73 |
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. In the current year, we expect to spend the budgeted withdrawal for negotiations and the income equity project. The opening balance includes the prior year’s operating surplus.
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.
