The AVMA has strong financial resources to invest in its future, including fund balances in excess of $30 million, Treasurer Barbara A. Schmidt told the AVMA House of Delegates July 19 during the AVMA Annual Convention in Chicago.
||AVMA Treasurer Barbara A. Schmidt (Photo by R. Scott Nolen)
As of June 30, reserves were projected to be close to 96 percent of its annual operating expenses; the AVMA’s policy is to maintain 50 percent to 150 percent of its annual operating expenses in reserves.
“Our reserves serve as a financial asset for emergency needs and long-term stability. Additionally, reserves are also partially designated for specific strategic purposes,” Dr. Schmidt said.
Since April 2008, $2.75 million has been designated for strategic initiatives and programs. More recently, this has included $1 million for the Partners for Healthy Pets direct-to-consumer campaign that was launched during this year’s AVMA Annual Convention.
In addition, $5 million has been committed to the development of the AVMA’s National Economics Strategy Reserve Fund for tactical plans, programs, and initiatives, including the new Veterinary Economics Strategy Committee and the AVMA Veterinary Economics Division. Then, on July 17, the Executive Board voted to allocate $250,000 from this reserve fund to implement a veterinary economics research program (see article
All the while, the AVMA has maintained income in excess of expenses annually for at least 12 years, including 2013, during which it is expected that there will be a surplus income of more than $50,000. Plus, at the end of June, income from investments was just more than $567,000.
The 2014 budget is projected to have slightly more than $32.1 million in income and $31.2 million in expenses, which would result in surplus income exceeding $800,000.
“It truly is an exciting time at the AVMA—to be a part of this forward-thinking strategic course to bring value and relevance to our members,” Dr. Schmidt said.