Item 5.2

Variance Analysis Notes to the 2013Audited Financial Statements

These notes are supplementary to the auditor’s notes in providing supporting variance analysis information of actual revenue and expenditure versus budget concerning the year-end financial statements.

STATEMENT OF REVENUE AND EXPENDITURES(Page 4 of audited statements)

The approved 2013 budget anticipated a modest deficit of $14,455. The year actually finished with a healthy surplus of $329,244, primarily the result of both stronger than anticipated revenue for continuing professional development course sales, as well as significantly reduced expenses in the areas of certification, payroll and the annual general conference.

Accordingly, significant revenue and expenditure items with variancesof +/- 10% that also exceed $10,000 compared with budget (materiality threshold) are as follows:

Revenues(-$115k / -2%)

Note: A positive variance represents actual revenues received in excess of budget. A negative variance represents a revenue shortfall.

1.Continuing professional development (CPD) course fee revenue (+$86k / +14%)

We are pleased to report that CPD course sales havesurpassed budget and exceeded prior year figures for the third year in a row, with a 7% increase over 2012 and almost 30% growth since 2011.Increased sales of the full-length courses, both stand-alone and as part of the CTIC specialty certificate series, were the primary contributors, specifically the Chest Imaging, Mammography, Leadership and Interventional Radiography programs. Also contributing to the increased revenue was the sale of the new exam preparation courses in 2013 (Radiographic Procedures and Pathology, Patient Management and Radiographic Equipment and Imaging).

2.Publications (-$21k / -45%)

On-line sales of job postings dipped significantly versus 2012 sales and the 2013 budget, resulting in a shortfall of over $21k versus budget in 2013.

3.Sponsorship (General – does not include AGC) (+$15k / +55%)

CAMRT was pleased to obtain unbudgeted sponsorship support from Mallinckrodt in 2013to distribute four quick self-studies, in both English and French, free of charge to members.

4.Investment income (-$69k / -53%)

A major market correction occurred in spring 2013 affecting our investment market values; however, because CAMRT has adopted a low-risk investment strategy, all investments are in fixed-income securities and thus the loss is unrealized as the investments continue to be held until maturity.

5.Administration fees & miscellaneous revenue (+$30k / +26%)

The excess revenue represents post-budget funding received from Cancer Care Ontario to undertake the blueprinting of the advanced practice radiation therapy certification exam. It also reflects monies received from partner organizations for the joint 2015 annual general conference to be held in Montreal, as CAMRT has taken the role of secretariat for the joint conference. This revenue is equally offset by expenses under Future Annual General Conferences.

6.Annual general conference (-$93k / -23%)

The AGC did not meet projected gross sales for its conference held in St. John’s Newfoundland in 2013. However, as in prior years, significant variable cost cutting measures were able to be realized in light of sagging sales, resulting in final net revenues exceeding budget by $20k.

Expenses (-$753k / -12.76%)

Note: A positive variance represents expenditure that is greater than was budgeted. A negative variance represents expenditure that is less than was budgeted.

7.Publications (-$25k / -11%)

Publications cost savings occurred with respect to currency exchange in relation to publication of the Journal (JMIRS) by Elsevier, as well as through meetings of the editorial board by teleconference only (although more frequently) rather than face-to-face once annually as originally planned. This was a pilot, which proved successful both practically as well as financially and therefore will continue going forward.

8.Certification – Exam development, administration & committees (-$144k / -30%)

By putting the certification exam development and administration process to tender earlier in the year, significant costs reductions were able to be realized lowering the certification exam development costs by over $140k.

9.Professional Practice(-$13k / -21%)

Lower than anticipated participation in the Professional Practice Advisory Council and the Leadership Development Committee meant lower than budgeted costs for professional practice.

10.Office Expenses (+$20k/ +12%)

Software upgrades and the advanced implementation of a new IT network strategy resulted in greater than budgeted virtual server lease expenses for part of the year (temporary), as well as non-capital hardware and software purchases.

11.StrategicInitiative Projects (SIPs) (-$18k / -5%)

2013 / 2013 / Variance
SIP / Actual / Budget / $ / %
Advanced Practice Framework / 20,625 / 25,685 / -5,060 / -19.70
AP Certification / 33,984 / 54,144 / -20,160 / -37.23
Best Practice Guidelines Development / 93,500 / 102,965 / -9,465 / -9.19
CBI Restructure / 8,707 / 0 / 8,707 / n/a
Competency Profiles Validation / 28,022 / 0 / 28,022 / n/a
Equipment Lifecycle Guidelines / 10,000 / 10,000 / 0 / 0.00
Future MRT Education Symposium / 45,556 / 35,510 / 10,046 / 28.29
Future Technology Advisory Council / 5,541 / 10,522 / -4,981 / -47.34
On-line CPD Course Delivery / 18,423 / 40,000 / -21,577 / -53.94
Rebranding Initiative / 60,481 / 64,000 / -3,519 / -5.50
TOTAL / 324,839 / 342,826 / -17,987 / -5.25

Explanation for significant variances of actual versus budget (please see staff report for project status updates):

a)Advanced Practice Certification (-$20k / -37%)

Savings are the result of the blueprinting expense coming in under budget by $6k, and as just one out of the two meetings originally budgeted occurred and came in under budget.

b)Competency Profile Validation (+$28k / not budgeted)

The project was originally anticipated to be completed in 2012, but with some final work to wrap up in 2013 it was extended into the first half of the year. This extra-budgetary expenditure was board-approved.

c)Future MRT Education Symposium (+$10k / +28%)

There was an added cost to undertaking additional data collection and analysis in preparation for the symposium.

d)OnlineCPD Course Delivery (-$22k/-54%)

The budget had anticipated a range of bids for the needs assessment contract. In the end, it was the lowest bidder that was rewarded with the contract resulting in savings.

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