The American College of Surgeons (ACS) consolidated financial statements for the fiscal years ended June 30, 2011 and 2012, were audited by McGladrey & Pullen LLP (McGladrey). The independent audit firm issued an “unqualified” opinion on the College’s consolidated financial statements.
The College ended its fiscal year on June 30, 2012, with a deficiency of operating revenue over operating expenses of $781,500 (prior year 2011, excess of $751,344). Operating revenues increased by approximately $6.1 million, whereas expenses increased by approximately $7.6 million compared with the previous fiscal year. A comparison of operating revenue by activity from 2012 and 2002 reflects the significant growth in the College’s quality improvement programs (see Figure 1).
The College’s total assets declined by approximately $2.3 million due primarily to a negative 2.2 percent return on ACS investments. The College’s year-to-date return (January through June) as of June 30, 2012, was 3.2 percent and annualized over three years was 8.2 percent. The College’s investment portfolio is diversified as illustrated in the table on this page.
|U.S. large cap||18||U.S. large cap||27|
|U.S. small cap||4||U.S. small cap||15|
|Global ex U.S. equity||18||Global ex U.S. equity||9|
|Hard assets||15||Hard assets||14|
|Fixed income (bonds)||13||Fixed income (bonds)||35|
The occupancy rate of 20 F Street NW, the College’s Washington Office building, continues to increase and is currently at 77 percent. The financing for that building was recently renegotiated to achieve more favorable rates and fees. The interest rate on the promissory loan at June 2012 was 0.743 percent.
Contributions to the College and to the ACS Foundation have increased as reflected in Figure 2.
The Board of Regents approved $1,524,000 in scholarships and fellowships for fiscal year 2014. Funding for scholarships comes from the following sources: annual dues contributions (13 percent), specific donor named funds (20 percent), and ACS Fellows and Scholarship funds (67 percent).