Business Plan And Budget Template Page 28
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50Budget Assumptions
This budget is built on the following assumptions:
a) This draft budget assumes an increase in the combined practice fee and Assurance
Fund levy of $90 to $2,620 (a 3.6% increase) from 2014. This proposed increase
provides the amount of funding required to support the business plan as presented and
maintain an adequate contingency reserve as outlined in Appendix 3.
b) Excluding staff additions and merit increases, we have assumed a 3.5% increase in
wage costs. This increase is designed to keep our compensation levels on pace with
labour market trends in Alberta. These labour market trends are depicted in Appendix 7.
c) Fee revenue is based on active and inactive membership growth rates of 1.9% and 2.3%
respectively as described in Appendices 5 and 6.
d) Unrealized gains or losses on changes in the market value of investments related to the
Assurance and Viscount Bennett funds have not been budgeted for as these amounts
are virtually impossible to predict and are non-cash items by nature.
e) The provision for Assurance Fund claims and costs under the legacy adjudicative model
is very difficult to predict. Consequently, the budget for this item is based on recent
historical experience. Actual claims experience may differ significantly from the budget
amount.
Proposed 2015 Business Plan & Budget
Page 28 of 50
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