Janet A. Jokela, MD, MACP ACP 2022 Treasurer

I am pleased to present the fiscal year 2021 audited financial reports for ACP. The College continues to take prudent steps in the face of very challenging economic conditions, and these reports indicate that the overall financial health of ACP remains strong.

Our success was the direct result of the efforts of the entire College community-governance, members, and our staff. During a period of time when flexibility, perseverance and acting in the interest of the greater good were demanded more than ever, the College responded decisively to the challenges of COVID-19. ACP’s Statements of Financial Position shows total assets of $217.8 million as of June 30, 2021. This reflects a 30.8% increase from 2020 while total liabilities decreased 14.7% over the same period. The increase in assets was primarily attributed to investments which increased 40.0% to $138.3 million while the liabilities decreased primarily due to a decline in accrued pension obligation. Overall, ACP’s net assets ended the year at $141.1M (total assets less liabilities), an increase of $63.9M over 2020.

ACP’s Operations had a strong year, especially considering the state of the economy, with a $2.2M surplus in 2021. Despite the significant disruption to the global economy that resulted from the pandemic, financial markets performed extraordinarily well. College investments increased in 2021 with ACP reporting a net investment gain of about $26.9M. An additional adjustment of $29.9M gain related to 2021’s change in pension and postretirement other than periodic cost, resulted in an overall $63.9M increase in net assets.

We will resume our investment in ACP’s priorities during Fiscal Year 2022-23 with ongoing prudence. Throughout the pandemic, we will continue to incorporate the College’s long-standing fiscal discipline and commitment to financial sustainability into all our planning. Just as important, and reflective of ACPs values, the College has adopted an ESG (Environmental/Social/Governance) investment strategy that assures that our investments reflect our values. Finally, ACP received an unqualified, or clean opinion, from our auditors, BDO LLP, in the Independent Auditors Report. Financial highlights presented by BDO LLP noted that ACP’s key ratios were all at or above the industry standard, reflecting both financial strength and liquidity. ACP is tax exempt under Section 501 ( c ) ( 3 ) of the Internal Revenue Code. I submit these reports with the certainty that ACP continues to be a financially sound and strong organization.

We will continue to strive to utilize our member-derived financial resources to assure that the College can lead in American Medicine for the benefit of our members and generations to come. Respectfully submitted,