Military Officer - October 2007 - (Page 62)

FINANCIAL RESULTS Financially speaking, 2006 was an outstanding year for MOAA. Revenues, as depicted in the top chart on the next page, were almost $30.9 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 45 percent of revenues in 2006, is volatile. In 2005, investment income accounted for only 24 percent of revenues. In 2006, MOAA spent $21.7 million on behalf of its members. Expenses can be categorized into four major areas: legislative affairs (MOAA’s original purpose and still its primary mission) is 11 percent of the expense budget; informing members through the magazines and Web site accounts for 39 percent; Council and Chapter Affairs is another 8 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 $16.6 million, as shown in the Summary of Financial Operations. Strong investment returns accounted for the increase in unrestricted net assets of $9.2 million. Donations and bequests to MOAA’s Scholarship Fund are the principal reason restricted net assets grew by $7.5 million. In the Statement of Financial Position, MOAA’s assets primarily are loans to children OF MILITARY OF of military families and investments. The association lent $25.5 million to more than 3,660 students as of Dec. 31, 2006. Cash and investments account for $158.3 million. Liabilities primarily are owed to members. MOAA has collected $45.3 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 $10.4 million is an obligation to ensure beneﬁciaries of an expired MEDIPLUS® plan will receive the health care insurance they were promised. Net assets of $131 million guarantee MOAA is and will remain ﬁnancially secure to continue serving America’s military ofﬁcers and families. If you would like a copy of MOAA’s audited ﬁnancial statements for 2006, 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, 2006, were audited by the independent audit firm Johnson Lambert & Co. Copies of the report have been provided to all members of MOAA’s board of directors. 62 MILITARY OFFICER OCTOBER 2007 PHOTO: STEVE BARRETT

Table of Contents Feed for the Digital Edition of Military Officer - October 2007

Military Officer - October 2007 Contents From the Editor From the President Your Views MOAA Directory Rapid Fire Washington Scene Financial Forum Ask the Doctor Chapter Activities Cover Story: A Hero's Welcome? Partners in Patriotism Tales from Beyond the Battlefield Financial Results of MOAA Pages of History Information Exchange Faces of MOAA Member Books MOAA Scholarship Donors Advertising Index MOAA Member Services MOAA Calendar Sounding Taps Encore

Military Officer - October 2007

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