Financial Overview

The consolidated results represent the combined activities of the American College of Radiology and the American College of Radiology Association, collectively referred to as the “College”.

The College continues to maintain strong financial performance. The net from operations was $3.6 million for the year. The operating results for 2018 were in line with expectations and are consistent with cyclical peaks/valleys driven by accreditation renewals. Increased expenses in 2018 reflect a planned growth in staff to align resources with program operations, formalizing the College’s Data Science Institute, and investments in support of strategic activities.. The non-operating income primarily consists of gains on the investment portfolio. The College does not rely on the investment earnings to balance the operating budget; the gain had no direct impact on the operations of the College.

The investment portfolio remains invested in a mix of equity and fixed-income mutual funds with an allocation to stocks and bonds in line with long-term objectives of capital appreciation. The College maintains a disciplined investment approach which has proven successful over the longer term. The long-term portfolio earned 8.66% for the fiscal year which was slightly ahead of the benchmark, 8.48%.

The College is committed to reinvesting surpluses in initiatives and activities that support the strategic plan. The College earmarked dollars from the 2017 surplus to accelerate support for proprietary software tools that support the accreditation process and to implement a new customer relationship management software to enhance the member experience and provide a more integrated view of the College’s customers across programs.

The College is well positioned financially to be able to respond and react to the needs of the profession and its members. Approximately 16% of the total net assets of $134.5M is undesignated, with the remainder set aside for operating reserve, innovation fund, strategic reinvestment, and net investment in property and equipment. 

Annual Audit
The College’s independent auditors, RSM US LLP, completed and issued their annual audit report at the end of October. The auditors issued a “clean” or unqualified opinion, which is the highest level of assurance that the financial statements are free of material misstatements and in accordance with Generally Accepted Accounting Principles. Their reports are formally reviewed and accepted by the ACR Audit Committee and on file at the College headquarters in Reston, VA.