Military Officer - October 2006 - (Page 60) FINANCIAL RESULTS Financially speaking, 2005 was a challenging year for MOAA. Revenues, as depicted in the top chart on the next page, were almost $20.4 million. MOAA has four primary revenue sources — dues, investment income, advertising income from our award-winning magazines, and royalties from sponsored products and services. Three of these revenue sources are predictable; however, investment income, which accounted for 24 percent of revenues in 2005, is volatile. In 2004, investment income accounted for 41 percent of revenues. In 2005, MOAA spent $20.9 million on behalf of its members. Expenses can be categorized into three major areas: legislative affairs (MOAA’s original purpose and still its primary mission) is 12 percent of the expense budget; informing members through the magazines and Web site accounts for 38 percent; and the balance is helping members (and in many cases nonmembers) by providing assistance from our career placement service, Benefits Information Department, Scholarship Fund, and Member Service Center, as well as providing MOAA-sponsored products and services. Net assets grew by $3.4 million, as shown in the Summary of Financial Operations. Weak investment returns accounted for the decrease in unrestricted net assets of $500,000. Donations and bequests to MOAA’s Scholarship Fund are the principal reason restricted net assets grew by $3.9 million. In the Statement of Financial Position, MOAA’s assets primarily are loans to children of military families and investments. The as- OF MILITARY OF sociation lent $23.6 million to more than 3,200 students as of Dec. 31, 2005. Cash and investments account for $145.7 million. Liabilities primarily are owed to members. MOAA has collected $44.3 million in dues, both annual and life, that will be used as earned over the next 60 years (a 25-year-old life member and spouse are expected to live an additional 60 years). The Widows’ Trust at $14.3 million is an obligation to ensure beneficiaries of an expired MEDIPLUS® plan will receive the health care insurance they were promised. Net assets of $114 million guarantee MOAA is and will remain financially secure to continue looking out for military personnel — both those currently serving and those who have served. If you would like a copy of MOAA’s audited financial statements for 2005, call (800) 2346622 or e-mail msc@moaa.org. — Col. Glenn Zauber, USAF-Ret. Chief Financial Officer Independent Audit: The Military Officers Association of America Financial Statements for the year ended Dec. 31, 2005, were audited by the independent audit firm Johnson Lambert & Co. Copies of the report have been provided to all members of the MOAA board of directors. 60 MILITARY OFFICER OCTOBER 2006 PHOTO: STEVE BARRETT
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