2016-17 Financial Forecast
Provisions were included in the preliminary budget for Amending Agreement implementation activity. Although not all currently planned projects were specifically included, the preliminary budget is expected to still accommodate all activity currently planned.
AMA Operations:
| Projected Actual ($ 000’s) | Budget ($ 000’s) | Variance ($ 000’s) | |
|---|---|---|---|
| Revenue | |||
| - Dues | 16,225 | 16,125 | 100 |
| - Other | 3,307 | 3,257 | 50 |
| Total revenue | 19,532 | 19,382 | 150 |
| Operating Expenditures | |||
| - Executive Office | 5,488 | 5,488 | |
| - Southern Alberta Office | 801 | 801 | |
| - Corporate Affairs | 6,105 | 6,205 | 100 |
| - Public Affairs | 2,265 | 2,265 | |
| - Health Economics | 2,294 | 2,294 | |
| - Professional Affairs | 1,182 | 1,182 | |
| - Priority Projects | 1,125 | 1,125 | |
| 19,260 | 19,360 | 100 | |
| Transfer to Reserves | 272 | 22 | 250 |
1. We anticipate actual membership exceeding budgeted levels for the year, and strong participation in AMA insurance offerings will push other revenue above budgeted levels.
2. Actual expenditures have been relatively consistent with budget to the mid-point of the year. We anticipate that trend to continue with some facility savings in corporate affairs.
3. Significant provisions were made in the budget (Priority Projects) for agreement implementation and other priority activity. The one area that may require additional resources is the implementation of the Strategic Agreement with AHS. AHS has indicated that there are approximately 350 physician groups that may need to be represented by the AMA in their negotiations. Although a provision was included in the preliminary budget to support this activity, it is difficult to estimate at this time how many groups will request support from the AMA and how many of those may need to access the arbitration process provided.
Board Reserves
| Projected Actual ($ 000’s) | Budget ($ 000’s) | Variance ($ 000’s) | |
|---|---|---|---|
| Emergency | 8,648 | 8,648 | |
| Capital | 3,290 | 3,290 | |
| Strategic | 446 | 280 | 166 |
| 12,384 | 12,218 | 166 |
AMA Contingency Reserve
| Projected Actual ($ 000’s) | Budget ($ 000’s) | Variance ($ 000’s) | |
|---|---|---|---|
| Opening balance | 10,226 | 9,672 | 554 |
| Net income | 290 | 290 | |
| Operating surplus | 272 | 22 | 250 |
| PCC one-time initiatives | (250) | (250) | |
| Negotiations | (300) | (300) | |
| Choosing Wisely Canada | (190) | (190) | |
| Delivery Frameworks/Practice Support | (400) | (400) | |
| 9,648 | 8,844 | 804 |
AMA Agreement
| Projected Actual ($ 000’s) | Budget ($ 000’s) | Variance ($ 000’s) | |
|---|---|---|---|
| Opening balance | 3,594 | 3,654 | (60) |
| Net income | 55 | 55 | |
| PCC | (350) | (350) | 250 |
| Other Agreement implementation activity | (280) | (280) | |
| Choosing Wisely | (50) | (50) | |
| Section grants | (286) | (286) | |
| PCN Exec/PCA/PCN Evolution | (327) | (327) | |
| 2,356 | 2,416 | (60) |
1. Board Reserves – Board reserves are the minimum holdings established by the board for the specified purposes. The board reserves are currently funded at required levels. At this point it is unclear whether the strategic reserve investment of $554,000 to develop secure messaging will be repaid as initially expected.
2. AMA Contingency Reserve – The opening balance is greater than budgeted as a result of the prior year surplus. The forecast current year operating surplus will be transferred to the reserve. Significant withdrawals from the one-time reserve funding are planned to support negotiations this year and next.
3. AMA Agreement – These one-time funds were provided through the AMA Agreement primarily to support physicians’ involved in agreement related implementation activity. With the ratification of the amending agreement work well underway and we expect all budgeted provisions to be spent.
