Latest news with #IAP
Yahoo
19 hours ago
- Business
- Yahoo
Funding uncertainty has MCHD in 'difficult financial straits'
Jun. 2—MORGANTOWN — In the best of times, annual budgets are uncertain. They're well-educated guesses — estimates, if you prefer the term. You look at what you expect to get, weigh that against what you expect to spend — and hope nothing happens along the way that negatively skews either number beyond reconciliation. But what if you have no real way of knowing what to expect ? That's where leadership with the Monongalia County Health Department often is finding itself. MCHD Executive Director Anthony DeFelice has estimated that up to 40 % of the health department's budget originates from federal sources. As with most sectors dependent on federal dollars, there's considerable uncertainty in public health. The MCHD launched into an unprecedented budgeting process knowing some of those dollars are secure, some have already been eliminated and some are complete unknowns. "The IAP Grant is the immunization grant. It's just been a given every year that you're getting that. We've had no indication. They stopped the IAP grant and terminated it, " county Health Officer Dr. Brian Huggins said. "We don't know if the Vaccines for Children (Program) is going to exist next year. Those are significant funding sources that help pay for some of our nursing staff. With this budget, we didn't include them. If we get them, great. But we just don't know." And that, DeFelice explained, is how MCHD is approaching this budgeting process. If leadership is confident the funds are secure, they're included. If there's any uncertainty, the dollars aren't being budgeted. DeFelice described the process as "very thorough " and "very conservative." Chief Financial Officer Devan Smith explained that the health department's program managers and executive team have gone meticulously through each line item in an effort to determine where reductions can be made. Smith said budgeting in public health is already both art and science in that it often requires as much intuition as accounting. "When you add in deep uncertainty about whether core functions of the organization will continue to be funded, it not only makes providing estimates difficult, but also means that you have to question what services will be kept or lost under different scenarios, " he said. "What made this budget year so hard for us was not the mechanical process of performing calculations or reviewing expenses. It was weighing the people element — -potential reductions in the services we are able to provide to families in our community or impacts to employees we have worked with for years that may no longer have a job." Among the measures under consideration are fee increases. An initial example is a 10 % bump in fees for the health department's dental program. A review of if, where and when MCHD can continue to offer free and reduced-cost services is under consideration. The health department also plans to keep all vacant positions unfilled. Further, some programming considered "enhanced " offerings — meaning beyond the core functions of environmental health, communicable disease, immunization, threat preparedness and community health promotion — are being scaled back as only core, or basic, functions are eligible for state and county support. Huggins offered an example. "The biggest thing that is changing is that our family planning clinic is going to go from five days a week down to a single day a week. The biggest reason for that is loss of funding streams that were supporting our basic services. Family planning is an enhanced service by state code. Family planning, unfortunately, loses money. It just does, " he said, explaining the program lost somewhere around $150, 000 in the 2025 fiscal year. "There is potential with family planning that we may have to discontinue services completely if the funding stream stops. According to the DHHS budget that's been proposed by the administration, family planning is on the list of services that is to be eliminated — not moved to a different service, eliminated from funding. If that occurs, we'll look at everything we can because we realize, for a lot of people, this is a critical service."
Dominion Post
a day ago
- Health
- Dominion Post
Funding uncertainty has MCHD in 'dangerous financial straits'
MORGANTOWN — In the best of times, annual budgets are uncertain. They're well-educated guesses – estimates, if you prefer the term. You look at what you expect to get, weigh that against what you expect to spend – and hope nothing happens along the way that negatively skews either number beyond reconciliation. But what if you have no real way of knowing what to expect? That's where leadership with the Monongalia County Health Department often is finding itself. MCHD Executive Director Anthony DeFelice has estimated that up to 40% of the health department's budget originates from federal sources. As with most sectors dependent on federal dollars, there's considerable uncertainty in public health. The MCHD launched into an unprecedented budgeting process knowing some of those dollars are secure, some have already been eliminated and some are complete unknowns. 'The IAP Grant is the immunization grant. It's just been a given every year that you're getting that. We've had no indication. They stopped the IAP grant and terminated it,' county Health Officer Dr. Brian Huggins said. 'We don't know if the Vaccines for Children (Program) is going to exist next year. Those are significant funding sources that help pay for some of our nursing staff. With this budget, we didn't include them. If we get them, great. But we just don't know.' And that, DeFelice explained, is how MCHD is approaching this budgeting process. If leadership is confident the funds are secure, they're included. If there's any uncertainty, the dollars aren't being budgeted. DeFelice described the process as 'very thorough' and 'very conservative.' Chief Financial Officer Devan Smith explained that the health department's program managers and executive team have gone meticulously through each line item in an effort to determine where reductions can be made. Smith said budgeting in public health is already both art and science in that it often requires as much intuition as accounting. 'When you add in deep uncertainty about whether core functions of the organization will continue to be funded, it not only makes providing estimates difficult, but also means that you have to question what services will be kept or lost under different scenarios,' he said. 'What made this budget year so hard for us was not the mechanical process of performing calculations or reviewing expenses. It was weighing the people element –- potential reductions in the services we are able to provide to families in our community or impacts to employees we have worked with for years that may no longer have a job.' Among the measures under consideration are fee increases. An initial example is a 10% bump in fees for the health department's dental program. A review of if, where and when MCHD can continue to offer free and reduced-cost services is under consideration. The health department also plans to keep all vacant positions unfilled. Further, some programming considered 'enhanced' offerings – meaning beyond the core functions of environmental health, communicable disease, immunization, threat preparedness and community health promotion – are being scaled back as only core, or basic, functions are eligible for state and county support. Huggins offered an example. 'The biggest thing that is changing is that our family planning clinic is going to go from five days a week down to a single day a week. The biggest reason for that is loss of funding streams that were supporting our basic services. Family planning is an enhanced service by state code. Family planning, unfortunately, loses money. It just does,' he said, explaining the program lost somewhere around $150,000 in the 2025 fiscal year. 'There is potential with family planning that we may have to discontinue services completely if the funding stream stops. According to the DHHS budget that's been proposed by the administration, family planning is on the list of services that is to be eliminated – not moved to a different service, eliminated from funding. If that occurs, we'll look at everything we can because we realize, for a lot of people, this is a critical service.'
Globe and Mail
5 days ago
- Business
- Globe and Mail
OSC looks to improve access to private markets while investor advocate urges caution
The Ontario Securities Commission (OSC) is moving ahead with a project to make private market investment funds more accessible to investors, a proposal supported by asset managers while investor advocates raised concerns. The regulator said Thursday that it's developing a LaunchPad project through its innovation office to introduce new investment fund products with exposure to long-term assets. The project will allow firms to work with the OSC and receive exemptive relief to develop alternative investment funds for retail investors. The move follows a consultation seeking input on a framework to give individual investors access to 'long-term asset funds' comprised primarily of non-public assets. While many asset managers supported the proposal, other organizations raised concerns. The OSC's Investor Advisory Panel (IAP) said in its annual report released this week that it's concerned about the rising interest in alternative investment products, as private markets lack transparency and offer less investor protection than public markets. Any efforts to increase access to private markets should consider the risks to retail investors, it said. The OSC said Thursday that exemptive relief decisions under the project would require 'bespoke investor protection controls based on the specific details of each fund and product.' The IAP said in its submission to the OSC consultation that the 'nature and structure of long-term illiquid assets does not render them a suitable investment for a large swath of the retail investing public.' However, the IAP added in the submission that not all retail investors need to be restricted to public markets and that an allocation to 'long-term assets' within retirement plans may be suitable for investors with a long time horizon. If the OSC goes ahead with the proposed fund structure, the IAP recommends enhanced risk disclosure that explains the investments' illiquid nature and redemption costs clearly. The IAP also calls for clear fee structures that explain performance fees. OSC chief executive officer Grant Vingoe said the LaunchPad project would provide new opportunities for firms and investors while providing oversight and protection. 'The investment landscape is shifting, and retail investors are increasingly looking to diversify their portfolios,' he said in a news release. The IAP's annual report also noted concerns about unintended consequences from the client-focused reforms, which introduced enhanced know-your-client and know-your-product rules in 2021. Three of the big banks responded to the rules by restricting branch-level advisors and financial planners to selling their in-house proprietary products. The IAP warned that limited product shelves may 'reduce interest and investment in the advisory channel.' The panel also raised the issue of advisor titles causing confusion, especially at the bank branch level. '[A]n investor who speaks to a bank branch-level employee, who uses the term 'advisor' in their title, may conclude, based on that title, that the employee is required to act in the investor's best interest,' it stated in the report. 'These issues need to be addressed.' Broader lens: Technology stocks have rebounded sharply after being roiled by uncertainty and recessionary fears triggered by U.S. President Donald Trump's tariffs. Although fund managers are very upbeat on some of these mega-caps, they're also betting on other names to carry the tech baton. Shirley Won reports. Broader service: Clients have moved on from transactional relationships and are now demanding an advisor who is relational. But what exactly is a relational advisor? Julia Chung, co-founder and chief executive officer of Vancouver-based Spring Planning Inc., explains. Broader diversifiers: Most investors understand that diversification can help preserve portfolio values when markets are volatile. But an asset mix that worked during one market downturn may not have the same stabilizing effect in another. Brenda Bouw reports. Real estate: The co-founders of now-defunct syndicated mortgage company Fortress Real Developments Inc. have been found guilty of fraud after a lengthy criminal trial. Reinvest: Prominent Canadian business leaders with interests in the defence industry are calling for a major reinvestment in the sector in Canada, arguing the country can boost its prosperity and security in tandem. Rethink: Canada's business community is calling on Prime Minister Mark Carney to review the digital services tax that has triggered the U.S. government's proposed retaliatory taxes on Canadian companies and investors in U.S. securities. The proposal could cost investors who own U.S. securities up to $81-billion in additional taxes over seven years.
Business Recorder
22-05-2025
- Business
- Business Recorder
Budget FY26: Insurance industry seeks reforms including removal of double taxation, says IAP chairman
KARACHI: The insurance industry has sought the removal of double taxation to ease administrative and financial burdens on the sector. It wants taxation on insurance to fall under federal jurisdiction to ensure uniformity and prevent double taxation on a provincial level. In an interview with Business Recorder on Wednesday, Chairman Insurance Association of Pakistan (IAP) Shoaib Javed Hussain said IAP has sent budget recommendations to the Federal Board of Revenue and the Ministry of Finance on rationalization of insurance taxations. Hussain was firm in saying that the elimination of overlapping tax jurisdictions between the federal government and provincial authorities would help in reducing compliance costs and operational friction, thus benefitting policyholders. 'A consistent tax framework is essential for scale integration across provinces and the development of a cohesive national financial architecture', Hussain, who is also CEO of State Life Insurance Corporation (SLIC), said. Insurance penetration needs to be boosted: Hussain In FY2023, Hussain said, the insurance sector in Pakistan generated over Rs613 billion in gross premiums, with life insurance accounting for approximately 66% of this share. Despite its potential, insurance penetration remains below 1% of GDP, significantly lower than regional peers like India (4%), China (3.9%) and Sri Lanka (1.2%), indicating untapped growth potential. The world average is 6.7%, meaning that there is potential for the industry to grow 800% just to achieve this average. A focus on industry growth can significantly increase its contributions to the country's tax collections and economic prosperity over the medium term. There is a need to further incentivize the purchase of insurance through continued income tax credits and the removal of provincial sales tax, Hussain said, for which he proposed reinstating tax credits on life, health, and microinsurance premiums. 'Tax credits would nurture a culture of savings and provide meaningful relief to the salaried class, which bears a significant share of the nation's tax burden while striving to care for their loved ones,' he said, adding that such incentives would help promote insurance adoption in the country. He also said tax credits should be viewed as a vital tool for savings and investment for the public, in addition to supporting the financial inclusion goals of the Government of Pakistan. He further added that taxation of insurance premiums, be it in the form of provincial sales tax or federal turnover tax, is additional direct taxation on individuals aiming to save for significant milestones in life or for protection against unforeseen adverse life events. There is a need to further incentivize the purchase of insurance through the removal of taxes on premiums, he believes, especially as taxation of life insurance companies is governed under the Fourth Schedule and turnover tax should not be applicable. Insurance is a risk management tool and not a source of income, and taxing premiums will discourage businesses and individuals from investing in risk mitigation, he said. Premiums collected by life insurers are contingent liabilities used to settle future claims — not operational revenue — and are already subject to taxation when annual surpluses are allocated to shareholders, he added. Capital Market Taxation Another proposal IAP wants incorporated in the forthcoming country's financial plan 2025-26 is the rationalization of Capital Market Taxation. The insurance sector is requesting a revision to the current tax treatment of capital gains and dividend income to better reflect the unique nature of the industry — rather than applying the same rules used for banks and financial institutions. Chairman IAP elaborated that the legislator's view of treating the insurance and banking sectors similarly is not appropriate. Insurance companies cover the risk of loss of the insured for a nominal premium. To manage this risk, they must diversify the deployment of their assets into various categories of investment avenues, each with different risk appetites. The IAP chairman has called for the withdrawal of Rule 6B of the Fourth Schedule, introduced through the Finance Act, 2016. This rule groups capital gains and dividend income as a single taxable source for insurance companies, a provision that the industry argues has negatively affected the income of both life and non-life insurance companies. Hussain was confident that standardizing this treatment would restore neutrality and enhance capital market depth. He noted that many countries exclude insurance from VAT and similar taxes, recognizing its unique financial structure. Aligning with such global best practices would promote financial inclusion, enhance insurance penetration, and support sectoral growth in Pakistan. Chairman IAP remarked that the industry fully recognises its responsibility towards financial and economic stability of the country and supporting the government's initiatives in achieving these goals. He said that the insurance industry can play a vital role towards the country's economic growth and prosperity by being a key contributor to capital markets, infrastructure projects and provide social protection to the most vulnerable of society. He concluded by saying that IAP has also discussed these budgetary proposals with the regulator – the Securities and Exchange Commission of Pakistan – which has supported them, recognizing the value of the insurance sector in contributing to the national economy. Introduction: Shoaib Javed Hussain is the CEO and Chairman of the State Life Insurance Corporation of Pakistan. He holds an MSc degree in actuarial management from Cass (now Bayes) Business School, City University London and is a Fellow of the Institute of Actuaries, UK. He began his career at an actuarial consultancy in Pakistan. He has over two decades of management experience at leading global insurance groups and consultancies in the UK and Asia. Before joining SLIC, he held senior leadership and management position with a Hong Kong multinational insurance and finance corporation called AIA Group Limited. Currently, he is also serving as Chairman Insurance Association of Pakistan (IAP).
Business Recorder
22-05-2025
- Business
- Business Recorder
Budget 2025-26: Insurance industry seeks reforms including removal of double taxation, says IAP chairman
KARACHI: The insurance industry has sought the removal of double taxation to ease administrative and financial burdens on the sector. It wants taxation on insurance to fall under federal jurisdiction to ensure uniformity and prevent double taxation on provincial level. In an interview with Business Recorder on Wednesday, Chairman Insurance Association of Pakistan (IAP) Shoaib Javed Hussain said IAP has sent budget recommendations to the Federal Board of Revenue and the Ministry of Finance on rationalization of insurance taxations. Hussain was firm in saying that the elimination of overlapping tax jurisdictions between the federal government and provincial authorities would help in reducing compliance costs and operational friction, thus benefitting policyholders. 'A consistent tax framework is essential for scale integration across provinces and the development of a cohesive national financial architecture', Hussain, who is also CEO of State Life Insurance Corporation (SLIC), said. Insurance penetration needs to be boosted In FY2023, Hussain said, the insurance sector in Pakistan generated over Rs613 billion in gross premiums, with life insurance accounting for approximately 66% of this share. Despite its potential, insurance penetration remains below 1% of GDP, significantly lower than regional peers like India (4%), China (3.9%) and Sri Lanka (1.2%), indicating untapped growth potential. The world average is 6.7%, meaning that there is potential for the industry to grow 800% just to achieve this average. A focus on industry growth can significantly increase its contributions to the country's tax collections and economic prosperity over the medium term. There is a need to further incentivize the purchase of insurance through continued income tax credits and the removal of provincial sales tax, Hussain said, for which he proposed reinstating tax credits on life, health, and microinsurance premiums. 'Tax credits would nurture a culture of savings and provide meaningful relief to the salaried class, which bears a significant share of the nation's tax burden while striving to care for their loved ones,' he said, adding that such incentives would help promote insurance adoption in the country. He also said tax credits should be viewed as a vital tool for savings and investment for the public, in addition to supporting the financial inclusion goals of the Government of Pakistan. He further added that taxation of insurance premiums, be it in the form of provincial sales tax or federal turnover tax, is additional direct taxation on individuals aiming to save for significant milestones in life or for protection against unforeseen adverse life events. There is a need to further incentivize the purchase of insurance through the removal of taxes on premiums, he believes, especially as taxation of life insurance companies is governed under the Fourth Schedule and turnover tax should not be applicable. Insurance is a risk management tool and not a source of income, and taxing premiums will discourage businesses and individuals from investing in risk mitigation, he said. Premiums collected by life insurers are contingent liabilities used to settle future claims — not operational revenue — and are already subject to taxation when annual surpluses are allocated to shareholders, he added. Capital Market Taxation Another proposal IAP wants incorporated in the forthcoming country's financial plan 2025-26 is the rationalization of Capital Market Taxation. The insurance sector is requesting a revision to the current tax treatment of capital gains and dividend income to better reflect the unique nature of the industry — rather than applying the same rules used for banks and financial institutions. Chairman IAP elaborated that the legislator's view of treating the insurance and banking sectors similarly is not appropriate. Insurance companies cover the risk of loss of the insured for a nominal premium. To manage this risk, they must diversify the deployment of their assets into various categories of investment avenues, each with different risk appetites. The IAP chairman has called for the withdrawal of Rule 6B of the Fourth Schedule, introduced through the Finance Act, 2016. This rule groups capital gains and dividend income as a single taxable source for insurance companies, a provision that the industry argues has negatively affected the income of both life and non-life insurance companies. Hussain was confident that standardizing this treatment would restore neutrality and enhance capital market depth. He noted that many countries exclude insurance from VAT and similar taxes, recognizing its unique financial structure. Aligning with such global best practices would promote financial inclusion, enhance insurance penetration, and support sectoral growth in Pakistan. Chairman IAP remarked that the industry fully recognises its responsibility towards financial and economic stability of the country and supporting the government's initiatives in achieving these goals. He said that the insurance industry can play a vital role towards the country's economic growth and prosperity by being a key contributor to capital markets, infrastructure projects and provide social protection to the most vulnerable of society. He concluded by saying that IAP has also discussed these budgetary proposals with the regulator – the Securities and Exchange Commission of Pakistan – which has supported them, recognizing the value of the insurance sector in contributing to the national economy. Introduction: Shoaib Javed Hussain is the CEO and Chairman of the State Life Insurance Corporation of Pakistan. He holds an MSc degree in actuarial management from Cass (now Bayes) Business School, City University London and is a Fellow of the Institute of Actuaries, UK. He began his career at an actuarial consultancy in Pakistan. He has over two decades of management experience at leading global insurance groups and consultancies in the UK and Asia. Before joining SLIC, he held senior leadership and management position with a Hong Kong multinational insurance and finance corporation called AIA Group Limited. Currently, he is also serving as Chairman Insurance Association of Pakistan (IAP).
