FINANCE AND BUDGET COMMITTEE MEMBERS Jonathan A. Leighton, MD, FACG, Chair Kenneth R. DeVault, MD, MACG Sunanda V. Kane, MD, MSPH, FACG Costas H. Kefalas, MD, MMM, FACG Irving M. Pike, MD, FACG Harry E. Sarles, Jr., MD, MACG Samir A. Shah, MD, FACG
Jonathan A. Leighton, MD, FACG
RESPONSIBILITIES AS STATED IN THE ACG BYLAWS In cooperation with the Treasurer, this Committee will develop an annual operating budget and submit it to the Board of Trustees for approval. It will be the responsibility of this Committee to review the financial conditions of the College on a continuing basis and make recommendations to the Board of Trustees regarding dues, investments, contributions and all other financial aspects of the College.
OBJECTIVES 1. Conduct annual audit and budget review.
3. Review the performance of the College’s investment reserves. 4. Continue to refine the oversight functions of this Committee in the activities of the College.
COMMITTEE REPORT The Finance and Budget Committee reviews the overall financial status of the ACG and the ACG Institute. When appropriate, they make recommendations on how to finance the College’s activities and maintain adequate financial reserves, including recommending a budget for the coming year. The 2022 budget has been developed and approved by the Committee and sent to the Board of Trustees for review and approval. This year, the committee reviewed the audited 2020 Financial Statements for the College and the ACG Institute and recommended approval by the Board of Trustees.
This Committee continues to oversee transfers of funds to the ACG and the ACG Institute’s investment reserves to provide for the ACG and the ACG Institute’s long-term financial security and resource growth for the College in accordance with ACG policy. The Committee is also responsible for overseeing and, when necessary, altering the College’s Investment Policy. The College has fulfilled our investment goals to date and is closely watching to recommendations of the investment managers regarding shortand long-term market movement. The College and the ACG Institute continue to follow an investment policy which has multiple independent money managers following 2020–2021 ACG AWARDS & LEADERSHIP | 65
ACG LEADERSHIP
2. Work with the Executive Director to prepare a new budget for presentation to the Board of Trustees at the Annual Meeting.
Previously, the College implemented changes to the cash balance reserve policy employed by the College recommended by the Committee which resulted in additional funds being made available to support the investment reserves of both the College and the Institute. Last year also marked the implementation of the new endowment spend model that provides additional annual revenue to support the College budget each year based on an agreed upon percentage of investment reserves that was put forth by the Committee in 2019. The objective is to protect the investment principle while allowing the maximum amount of funds possible to support programs and services for the College membership on an ongoing basis. This model is now in place for both the College and the ACG Institute for Clinical Research and Education where it was successfully implemented several years ago and has provided both security and flexibility that has enabled effective short and longterm planning. In a year as challenging as 2021 has been, along with the College’s ability to thrive notwithstanding the cancellation of live meetings in 2020 and beyond, the financial security of the College has been even more important and helpful.
