The Board of Governors (B/G) Committee to Study the Fiscal Affairs of the College has three major responsibilities: (1) review the American College of Surgeons’ (ACS) dues structure and recommend approval of any changes to the dues structure; (2) understand and monitor the College’s financial matters in order to ensure the overall financial integrity of the College; and (3) serve as a liaison body to communicate concerns or questions regarding College programs, dues structure, allocation of resources, and other financial matters from the B/G to the Board of Regents. As Secretary of the B/G, I serve as Chair of this committee, and I am also a member of the Finance Committee and the Compensation Committee of the Board of Regents.
Over the past year, the Committee to Study the Fiscal Affairs has met by conference call and in person to fulfill our responsibilities. The committee has reviewed the consolidated financial statements of the College for fiscal year 2011. Despite the economic recession, the College remains fiscally sound. The committee has reviewed the 2011 resource allocation data, as well as the discrete cost-finding methodology adopted by the ACS. Review of these data indicates that resource allocation is consistent with the strategic goals and objectives of the College and is well-aligned with the organization’s major missions.
The committee was tasked two years ago with reviewing the dues structure of the College and with formulating a long-term dues policy to be presented to the Board of Regents. After multiple meetings, which included an open discussion at the annual meeting of the B/G, the Fiscal Affairs Committee recommended an annual dues increase of up to 3 percent annually. The Board of Regents may suspend this dues increase in any given year. The Regents approved this policy.
The committee has reviewed the allocation of dues income to dues-supported programs. The cost of dues-supported programs exceeds dues revenue by approximately $4 million, yielding a total program cost of approximately $579 per member versus an average of $456 dues revenue per member. These data highlight the value of College membership. The committee has also reviewed the 2012 budget projections, as well as the 2013 preliminary budgets and the College’s financial forecast. Review of these data indicates that the College’s management is adhering to strong budgeting practices and that the College can look forward to continued fiscal stability.
The Investment Subcommittee of the Finance Committee of the Board of Regents met on February 9 and reviewed the investment performance report provided by Cambridge Associates. Despite particular volatility within the markets, the investment strategy that the College used outperformed most comparative indexes.
In conclusion, the Board of Governors Committee to Study the Fiscal Affairs of the College has exercised its responsibility to review the financial status of the ACS. The ACS is in sound fiscal condition and has the appropriate resources to continue to enact the strategic goals of our organization.
Governors ‘ Committee to Study the Fiscal Affairs of the College
|William G. Cioffi, Jr., MD, FACS, Chair|
|J. Craig Collins, MD, FACS, Vice-Chair|
|Adam J. Cohen, MD, FACS, Young Fellows Association Liaison|
|Mathew Thomas, MB, BS, Resident and Associate Society Liaison|
|Anthony Atala, MD, FACS, Member|
|Jon M. Greif, DO, FACS, Member|
|James C. Hebert, MD, FACS, Member|
|Timothy D. Sielaff, MD, FACS, Member|
|Robert Peter Sticca, MD, FACS, Member|
|Andrew L. Warshaw, MD, FACS, Ex-Officio|