Financial Statements of Military Officers Association of America

Financially speaking, 2004 was a great year for MOAA. Revenues, as depicted in the top chart on the facing page, were almost $26.1 million. As you can see, MOAA has four primary revenue sources — dues, investment income, advertising income from an award-winning magazine, and royalties from sponsored products and services. Three of the revenue sources are predictable; however, investment income, which accounted for 41 percent of revenues in 2004, can be volatile.

In 2004, MOAA spent $19.6 million on behalf of its members. Expenses can be categorized into three major areas — legislative affairs (the original purpose of MOAA 75 years ago and still its primary mission) is 11 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 non-members) by providing assistance from our career placement service, Benefits Information Department, The Scholarship Fund of MOAA, and the Member Service Center, as well as providing MOAA-sponsored products and services.

Net assets grew by $10.1 million, as shown in the Summary of Financial Operations. The strong investment returns of $10.6 million accounted for the increase in unrestricted net assets. Donations and bequests to The Scholarship Fund of MOAA, $3.4 million, are the principal reason restricted net assets grew by $3.5 million.

In the Statement of Financial Position, MOAA’s assets primarily are loans to children of military families and investments. The association lent $22.4 million to more than 3,200 students as of Dec. 31, 2004. Cash and investments account for $146.4 million. As far as liabilities, they primarily are owed to members. MOAA has collected $43 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 his wife are expected to live an additional 60 years). The Widows’ Trust at $17.2 million is an obligation to ensure beneficiaries from an expired MEDIPLUS® plan will receive the promised health care insurance for life.

Net assets of $111 million guarantee MOAA is financially secure and will be around for the next 75 years to continue looking out for military personnel — both those currently serving and those who have served.

If you would like a copy of the 2004 Audited Financial Statements for MOAA, call (800) 234-6622 or e-mail msc@moaa.org.

— Col. Glenn Zauber, USAF-Ret.,
Chief Financial Officer