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Final Accounting of 2015 MDA Finances

2016 MDA House of Delegates Members:

I would like to provide the House of Delegates members with a final accounting of the MDA financial operations for 2015, which produced a net income figure of $46,708. This exceeds the 2015 deficit budget of $8,716.

Positive variances included:

  • Annual Session producing a surplus that exceeded the budget by $87,924;
  • Radiography Training Program revenue exceeding budget by $74,520; and
  • MDCI dividend surpassing the budget figure by $183,000.

The Special Assessment/Marketing Program generated a deficit of $21,839. These excess funds have been deducted from the prior year-end balance. The total Designated Funds available as of Dec. 3, 2015, are $65,507.

The MDA Building operations produced a net operating surplus of $136,629 for 2015. Depreciation of $204,617 has been recorded which created an overall deficit of $67,988.

The MDA’s Target Reserves will be fully funded at 55 percent (Emergency Reserve Fund) and 15 percent (Strategic Project Reserve Fund). The MDA’s Unrestricted/Undesignated funds are at 23 percent as of Dec. 31, 2015. These funds will be utilized to offset any possible budget shortfalls in the 2016 and 2017 budgets.

Please note that the House of Delegates will have the opportunity to revise the working life member dues level during this year’s meeting. The MDA made a series of bylaws changes over the past few years which were not implemented in the dues invoicing system — an initial error was replicated by the system in subsequent years. When discussing this issue, the Board recognized that the demographics of member dentists has been changing, and decided to ask the Membership Committee, the Board Committee on Finance, and the Bylaws Committee to make recommendations for what level of dues and assessment, if any, that working life members should pay. The Board is recommending that working life members — those over 65 who have 30 continuous or 40 discontinuous years of membership — pay dues at 50 percent of full dues, with no assessment payment required. Please follow the link below to review the House of Delegates report and resolution, and contact me if you have any questions.

 

In April, MDA staff and the MDA Board Committee on Finance will start to compile the MDA’s 2017 budget. Similar to last year, the House of Delegates members will receive the budget for comment prior to its submission to the MDA Board of Trustees in September. Feedback from House members during this process is encouraged and would be greatly appreciated.

Late in 2015, the MDA Board of Trustees approved Merrill Lynch as the new financial institution to manage the investment assets of the MDA. The transition of funds from BNY Mellon to Merrill Lynch occurred during the first quarter of 2016. The Board Committee on Finance will provide oversight of the investments and will meet regularly with the investment manager to monitor investment holdings and returns.

The MDA treasurer and Board Committee of Finance members are available to attend component caucuses being held during the Annual Session. Please contact me via e-mail if you’d like us to attend or if you have any questions.

Thank you for all that you do for the MDA and its members!

Michele M. Tulak-Gorecki, DDS
MDA Secretary/Treasurer

Copyright © 2016 Michigan Dental Association, All rights reserved.


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