Financially speaking, 2003 was a great year for MOAA. Revenues, as depicted on the top pie chart on the next page, were almost $35.5 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; how- ever, investment income, which accounted for 57 percent of revenues in 2003, can be volatile.

In 2003, MOAA spent $19.5 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 our primary mission) is 14 percent of the expense budget; informing members through the magazines and Web site accounts for 39 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 $20.1 million, as shown in the Summary of Financial Operations. The strong investment returns of $20.3 million accounted for the increase in unrestricted net assets. Donations and bequests to The Scholarship Fund of MOAA, $3.1 million, are the principal reason restricted net assets grew by $4.2 million.

In the Statement of Financial Position, MOAA’s assets primarily are loans to children of military families and investments. The association lent $21.2 million to more than 3,000 children as of Dec. 31, 2003. Cash and investments account for $137 million. As far as liabilities, they primarily are owed to members. MOAA has collected $41.7 million in dues, both annual and life, that will be used as earned over the next 60 years (a 25-year-old life member is expected to live another 60 years). The Widows’ Trust at $20 million is an obligation to ensure widows from an expired Mediplus® plan receive the promised health care insurance for life.

The net assets of $101 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 retired.

If you would like a copy of the 2003 Audited Financial Statements for MOAA, call (800) 234-6622 or e-mail msc@MOAA.org.

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