Discretionary Funding Balance Recommendations

Updated:Feb 22,2013

COC adopted a funding model more closely in line with AHA’s financial organizational policy. This funding model has brought Councils into alignment with Revenue Neutral budget structure with which they were created (annual revenue and expenses are equal)

Recommendation:  Councils will be required to maintain a minimum of 40% and a maximum of 65% of their three-year average revenue.

  • The three-year average revenue is based on three years’ trailing revenue average, as outlined in the AHA Fiscal Standards.
  • The three-year average amount is recalculated each year and is based on the previous three-year’s average revenue.
  • Funds exceeding each Council’s 65% maximum will be moved to the COC Reserve Fund for future use by Councils (1) to assist Councils in financial trouble at the end of each fiscal year; (2) to fund AHA major strategic initiatives such as Council marketing initiatives, President’s programs, etc.; and (3) to fund other Council initiatives as approved by COC.
  • Councils falling under the 40% three-year trailing revenue amount will need to follow the guidelines for submitting a financial plan as outlined in the Operating Rules (see Resource Manual). 
  • The policy was approved by COC January 17, 2005.

Approved by COC: 01/17/2005