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 “ACR®.”
The onset of the COVID-19 pandemic in March 2020 affected operations of the ACR in the last quarter of the fiscal year. To protect the safety of registered participants and ACR volunteers and staff, in-person events were either cancelled or converted to virtual formats, and all ACR-sponsored travel was prohibited. While the ACR did see lower revenue recognized for in-person events (largely in education), virtual formats resulted in an overall lower expense.
The ACR Statement of Financial Position remains strong, ensuring that the 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, 2020, the total cash and investments are $179 million, or 77% of ACR total assets; compared to $163M (77%) at the end of fiscal year 2019.
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. While the ACR did experience fiscal year performance below targeted benchmarks in 2020, it maintains a disciplined investment approach, which has proven successful over the longer term.
Total liabilities are higher in 2020 compared to 2019. Increases from the prior year represent additional software development leases and higher deferred revenue related to the cyclical nature of ACR activities. Capital financing has allowed the ACR to take advantage of low interest rates and leverage those funds for better cash management and to maximize investing.
Approximately 32% of the total net assets of $146.3M is undesignated, with the remainder set aside for operating reserve, innovation fund, strategic reinvestment, and net investment in property and equipment.
The net from operations for the ACR was $5.5 million for the year. COVID-19 impacts on the last quarter of 2020 resulted in both lower revenue and expenses. While slightly higher than 2019, 2020 revenue was lower than expected due to lost revenue from cancellation of in-person courses and events, lower member dues, and lower accreditation revenue recognized delays. Expenses were lower as well. Restrictions on travel and cancellation of in-person events, or conversion of those events to virtual format, led to lower costs. Further, the ACR delayed noncritical activities until the full impact of the pandemic on the ACR, our members and communities-at-large can be better determined.
The ACR is committed to reinvesting surpluses into initiatives and activities that support the strategic plan. The ACR earmarked dollars from the 2017 and 2018 surpluses to accelerate support for proprietary software tools that support the accreditation process and to implement new customer relationship management software to enhance the member experience and provide a more integrated view of ACR customers across programs.