The consolidated results represent the combined activities of the American College of Radiology and the American College of Radiology Association, collectively referred to as “ACR.” ACR is well positioned financially to be able to respond and react to the needs of the profession and its members.
As of June 30, 2019, the total cash and investments balance is $163 million, or 77% of ACR’s total assets.
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. ACR maintains a disciplined investment approach, which has proven successful over the longer term.
Total liabilities are relatively consistent year over year with offsetting changes due to reduction of debt (notes payable balances) and higher deferred revenue related to the cyclical nature of ACR activities.
Approximately 23% of the total net assets of $139.2M is undesignated, with the remainder set aside for operating reserve, innovation fund, strategic reinvestment, and net investment in property and equipment.
ACR continues to maintain strong financial performance. The net from operations was $5.7 million for the year. The operating results for 2019 were in line with expectations and are consistent with cyclical peaks/valleys driven by accreditation renewals and clinical research activity.
Expenses include $1.6 million and $1.5 million in 2019 and 2018 respectively related to prior year surplus reinvestment projects.
ACR is committed to reinvesting surpluses in initiatives and activities that support the strategic plan. ACR earmarked dollars from the 2017 & 2018 surpluses 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 ACR’s customers across programs.
ACR’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 ACR headquarters in Reston, VA.