Financial Update
AMA Operations:
|
Budget ($ 000’s) |
Projected Actual ($ 000’s) |
Projected Variance ($ 000’s) |
|
|---|---|---|---|
|
Revenue |
|
|
|
|
- Dues |
15,529 |
17,695 |
2,166 |
|
- Other |
5,071 |
5,002 |
(69) |
|
|
20,600 |
22,697 |
2,097 |
|
Operating Expenditures |
|
|
|
|
- Executive Office |
3,838 |
3,980 |
(142) |
|
- Southern Alberta Office |
1,060 |
1,060 |
|
|
- Operations and Member Services |
9,404 |
9,262 |
142 |
|
- Public Affairs |
2,260 |
2,157 |
103 |
|
- Health Economics |
2,364 |
2,334 |
30 |
|
- Professional Affairs |
2,081 |
2,081 |
|
|
- Health System Transformation |
984 |
934 |
50 |
|
- Priority Projects |
8,056 |
3,460 |
4,596 |
|
|
30,047 |
25,268 |
4,779 |
|
Transfer to Reserves |
(9,447) |
(2,571) |
6,876 |
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.
- The membership has shown strong support for the AMA with retention of full members at roughly 95% of the rates reached when the prior agreement with government was in place. With the current physician supply data showing a decline in the total number of practicing physicians in Alberta, we believe the actual retention rate to be roughly 98%.
- Operating expenditures are comprised primarily of workforce (staff and physician volunteers) and facility costs. The operating budget incorporated roughly $3 million in direct savings including reductions in staff salaries, committee honoraria rates and travel and facility costs. Actual expenditures in these areas are expected to closely match the budget.
- Budget provisions were made under Priority Projects to advance in key areas including:
- Physician representation - Without an agreement with government, negotiations are more local and require increase resourcing to carry out. With interest-based discussions underway with government, we anticipate substantial savings in this area, although we are prepared and have resources available if we need to pivot our approach.
- Income Equity – We expect to complete the overhead, hours of work, training, and market assessment studies this year.
- Advocacy - Resources were included to support a broad range of activity to achieve a negotiated agreement with government, including social media, earned and paid media and grass roots activity coordinated through the Joint Physician Advocacy Committee. With interest-based discussions underway with government, we anticipate substantial savings in this area, although we are prepared and have resources available to launch a large-scale campaign if required.
Board Reserves
|
Projected Actual ($ 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 |
15,074 |
17,657 |
|
Net income |
377 |
377 |
|
Operating deficit |
(9,447) |
(2,571) |
|
|
6,004 |
15,463 |
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. 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 while negotiations are underway, the value of the reserve is substantially greater than budgeted, providing the financial flexibility to sustain essential activities if an agreement is not reached.
