1. Report from the Society Committee on Budget and Finance
American Chemical Society
Report from the Society Committee on Budget and Finance
Orlando, FL
April 3, 2019

2. 2018 Financial Highlights*
Net from Operations – $41.1M
$13.3M higher than 2017 Actual
15th consecutive year of positive operating results
Total Revenues – $571.6M
$34.2M (6.4%) higher than 2017 Actual
Total Expenses – $530.5M
$20.8M (4.1%) higher than 2017 Actual
Unrestricted Net Assets – $292.2M
$7.8M (2.7%) increase from Dec. 31, 2017
*Note: Excludes ACSI, HDS, ACS Petroleum Research Fund and the Member Insurance Program
American Chemical Society

3. Net from Operations 2018 Actual ($ in Millions)
Information Services
Investments
All Other
Net Dues Revenue
Scientific Advancement
Governance
External Affairs & Communication
Web Strategy & Operations
Education
Membership & Society Services
Net From Operations
This is the Sources and Uses chart which you’ve seen many times. The major Sources of net contribution are the purple bars at the top.
The slide demonstrates the significance of CAS and ACS Publications to the Society’s financial health. In 2018, the two divisions accounted for $88.1M of net contribution.
Investments provided ~ $12.3M --- so, when combined with CAS and Pubs -- we have total Sources of Net Contribution of slightly more than $100M. ($100.4M).
These Sources funded Society Programs (shown in light blue) managed out of Scientific Advancement, External Affairs & Communication, Education, and Membership & Society Services; and covered the costs associated with Governance and Web Strategy & Operations (WSO) -- and several Cost Centers grouped in the “All Other” category shown here in yellow (i.e., Development and unallocated indirect costs).
(CLICK)
*Notes: All Other includes Unallocated Indirect Costs and the Development Office.
Net from Operations excludes ACSI, HDS, ACS Petroleum Research Fund and the Member Insurance Program.
American Chemical Society

4. Unrestricted Net Assets 2014 – 2018 Actuals
($ in Millions)
Net from Ops $ M
Investment Losses (25.1M)
PRBP Acct. Charge (9.5M)
Insurance Trust Dist M
ACSI Net from Ops M
Total Increase $ M
*Note: PRBP stands for post-retirement benefit plans. Excludes the Member Insurance Program and the ACS Petroleum Research Fund.
American Chemical Society

5. Governing Board for Publishing
5/20/2019
Financial Guidelines
Guideline
Target
2018
Actuals
0.71x
Current Ratio
0.65x target 0%
Debt Ratio
50% maximum
N/A
$16.3M
3-year rolling average of free cash flow > 0
Free Cash Flow
7.2%
2.5% - 5.0%
ROR target
Sustainability
52%
Fund Balance Ratio
50% minimum
American Chemical Society

6. At www.acs.org Available Financial Information: 6 Financial Resources
FAQ’s
Overview
Glossary
Net Assets
Financials & Reports
ACS IRS Form 990
American Chemical Society 6 6

7. 2020 Fully Escalated Dues Calculation
2019 Dues Rate x CPI
$ x
= $179.73
$180.00
American Chemical Society 7

8. 2020 Dues Recommendation
2019 Dues Rate Dues Rate
$ $175.00
The Society Committee on Budget and Finance moves that the 2020 dues be set at the 2019 rate of $175.
Because this pause in the dues escalator may have negative implications on allocations to local sections and divisions, B&F further recommends that steps be taken to ensure that this pause does not negatively impact these units of the Society.
American Chemical Society 8