American Chemical Society Report from the Society Committee

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

2018 Financial Highlights* Ø Net from Operations – $41. 1 M § $13. 3 M higher than 2017 Actual § 15 th consecutive year of positive operating results Ø Total Revenues – $571. 6 M § $34. 2 M (6. 4%) higher than 2017 Actual Ø Total Expenses – $530. 5 M § $20. 8 M (4. 1%) higher than 2017 Actual Ø Unrestricted Net Assets – $292. 2 M § $7. 8 M (2. 7%) increase from Dec. 31, 2017 *Note: Excludes ACSI, HDS, ACS Petroleum Research Fund and the Member Insurance Program American Chemical Society 2

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 *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 3

Unrestricted Net Assets 2014 – 2018 Actuals ($ in Millions) Net from Ops. $ 41. 1 M Investment Losses (25. 1 M) PRBP Acct. Charge (9. 5 M) Insurance Trust Dist. 0. 8 M ACSI Net from Ops 0. 5 M Total Increase $ 7. 8 M *Note: PRBP stands for post-retirement benefit plans. Excludes the Member Insurance Program and the ACS Petroleum Research Fund. American Chemical Society 4

Financial Guidelines 2018 Guideline Target Current Ratio 0. 65 x target Debt Ratio Free Cash Flow Sustainability Fund Balance Ratio American Chemical Society 50% maximum 3 -year rolling average of free cash flow > 0 Actuals 0. 71 x 0% N/A $16. 3 M 2. 5% - 5. 0% ROR target 7. 2% 50% minimum 52% 5

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

2020 Fully Escalated Dues Calculation 2019 Dues Rate $175. 00 = $179. 73 American Chemical Society x CPI x 1. 0270 $180. 00 7

2020 Dues Recommendation 2019 Dues Rate $175. 00 2020 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