Posted Sept. 3, 2014
AVMA Treasurer Barbara A. Schmidt reported July 25 to the House of Delegates that the Association is headed for another strong year in 2014, and she is optimistic there will be income over expenses from operations of more than $1.1 million.
|| Dr. Barbara A. Schmidt (Photo by R. Scott Nolen)
In 2013, the AVMA had nearly a $4 million surplus, largely as a result of investment portfolio performance. Given current investment returns, AVMA should have an overall positive bottom line, she said.
“These surpluses are now able to support the AVMA in implementation of its new direction in strategy management to improve member satisfaction and the goal to grow AVMA member value,” Dr. Schmidt said.
The Strategy Management Process is a comprehensive new evaluation and planning effort in 2014 that will result in a three-year AVMA strategic operating plan. The AVMA began the initiative by listening to its members and stakeholders about their needs and expectations through surveys, focus groups, and website comments.
“An important role of finance is strategy management—careful implementation and monitoring, aligning our organization’s resources to our strategic priorities, setting targets, tracking and measuring success,” the treasurer explained.
She also noted that the budgeting process, previously performed early each year to budget for the following year, will now take place during the fourth quarter. She said, “This will benefit our ability to prioritize initiatives and projects based on our member value proposition in a relevant and timely fashion.”
The AVMA investment portfolio, allocated according to Association policy, is performing on track with a $1.4 million return for 2014, she reported, adding, “From its inception with Bernstein Global Wealth Management in October 2013 through May 2014, our returns have been 8.8 percent.”
The 2014 budget shows that the highest percentage of AVMA revenue is from membership dues.
From a total dollar standpoint, the AVMA has grown its reserves by nearly $12 million since 2008. The previous high was $28.8 million in December 2007.
As of June 30, the reserves are projected to be 101 percent of annual operating expenses, the midpoint of 50 percent to 150 percent established by AVMA policy.
“Now projected at close to $34 million for 2014, the reserves provide us with the unique opportunity to invest in defining our future and in ensuring that we get to where we need to go,” Dr. Schmidt said. “I believe now is the time to do just that.”