ASSOCIATION OF ALBERTA MUNICIPALITIES

Notes to the Consolidated Financial Statements

Year ended December 31, 2022

20. Grants:

Grants include expenditures on the following items:

21. Benefits surplus (deficit):

ABmunis partners with a third party provider, as the insurer of its group benefits program, related to the coverage of group life and disability insurance. The insurer's role is to underwrite and adjudicate these coverages, with ABmunis acting in the client service role. The benefits are underwritten on a refund accounting basis, meaning that after the insurer has funded its necessary reserves, the remaining surplus is available for refund to ABmunis, or if in deficit ABmunis must remit the amount to the third party provider. During the year ended December 31, 2022, the surplus totaled $144,823 (2021 - deficit of $42,984).

22. Related party transactions:

MUNIX is a self-insurance exchange for members of ABmunis. MUNIX was formed under the Reciprocal Insurance Exchange Agreement for Municipalities in the province of Alberta, dated January 1, 2002, by various municipalities subscribing to the agreement. ABmunis administers MUNIX and therefore is a related party.

APEX was established on January 1, 2003 to enhance and supplement LAPP for eligible staff of participating municipalities in Alberta. It is a voluntary, contributory, defined benefit pension plan. ABmunis is the sponsor of APEX and appoints members of the APEX Board of Governors. ABmunis administers APEX and therefore is a related party.

ABmunis had a trustee relationship involving an investment pool, MuniFunds. MuniFunds was an entity under common control and therefore is a related party. ABmunis earned management fees from MuniFunds and incurred portfolio management expenses related to investment fund management fees, custodian fees, record keeping fees and valuation fees. MuniFunds was terminated effective September 9, 2021.

The following balances are outstanding with related parties as at December 31: