Net Assets

Committee on Budget and Finance

At December 31, 2008, the Society had net assets totaling $519 million. Eighty-three percent of these net assets are designated for specific purposes, either by the donor or by the ACS Board of Directors.

• Unrestricted net assets: $90 million
• Temporarily restricted net assets: $337 million
• Permanently restricted net assets: $92 million

Unrestricted Net Assets: $90 million

The Society has over $90 million in unrestricted net assets. These net assets are intended to protect the Society’s long-term viability, particularly in the event of a severe and sustained down-turn in the economy, or the occurrence of a catastrophic event.

Reducing the Society’s unrestricted net asset balance to fund ongoing operations will have the effect of reducing the Society’s investment balance. Reducing the investment balance will reduce annual interest and dividend income in future years. The net impact is an ongoing increase in annual expenses combined with an ongoing decrease in annual revenue.

The Member Insurance Program has accumulated $29 million in unrestricted net assets which is included in the $90 million listed above. The Board of Trustees of the Member Insurance Program have determined that these funds will be used for the benefit of participants in ACS Member Insurance Plans, and to protect the program against catastrophic claims experience.

Temporarily Restricted Net Assets: $337 million

The Society has approximately $337 million in temporarily restricted net assets, which represents donations received in support of specific Society programs.

Permanently Restricted Net Assets: $92 million

Permanently restricted net assets are approximately $92 million. The ACS Petroleum Research Fund accounts for $73 million of the total. The $73 million is an endowed amount (permanently restricted net assets) that generates interest and dividends used to provide grants to support education and research in the petroleum field. The $73 million permanently restricted balance may not be expended at any time, for any purpose, in accordance with the establishment of the ACS Petroleum Research Fund by order of the Supreme Court of New York.