Janet A. Jokela, MD, MACP ACP 2023 Treasurer

Our success results from 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 continues to respond to the challenges of COVID-19.

ACP’s Statements of Financial Position shows total assets of $191.7 million as of June 30, 2022. This reflects a 11.98% decrease from 2020 while total liabilities decreased 9.38% over the same period. The decrease in assets was primarily attributed to investments which decreased 9.96% to $124.5 million while the liabilities decreased primarily due to the Paycheck Protection Program loan forgiveness. Overall, ACP’s net assets ended the year at $141.1M (total assets less liabilities), a decrease of $18.9M over 2021 but an increase of $44.9M over 2020.

ACP’s Operations had a solid year operationally considering the state of the economy, with total revenue of $82.8M and a $368K surplus in 2022. Revenue increased 20.2% over 2021 primarily due to the transition to an in-person annual Internal Medicine Meeting with a virtual option. We saw a reversal of the extraordinary gains in the financial market from 2021 to 2022, college investments decreased in 2022 with ACP reporting a net investment loss of $24.4M, reversing the $29.9M net investment gains in 2021. Forgiveness of the $6.4M PPP loan as revenue partially offsetting the losses in investment activity and a $2.2M negative change in pension and postretirement benefit costs, resulted in an overall $18.9M decrease in net assets.

We continue our investment in ACP’s priorities during Fiscal Year 2023-24 with ongoing prudence. As we navigate to a post-pandemic environment, we will continue to incorporate the College’s long-standing fiscal discipline and commitment to financial sustainability into all of 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,