1998 annual Treasurer's annual report

National Guard, Oct 1998 by Walker, Emmett H Jr

As I finish my third term as the Treasurer of your Association, I assure you that the Association continues to improve its financial stability. I am convinced the expenses are as low as

they can feasibly go without impairing our core mission. It is imperative that we all band together to produce more revenue for the Association so that it can remain strong in protecting the rights of our Citizen Soldiers.

THE 1998 NGAUS BUDGET REPORT

The NGAUS mid-year review was completed in the middle of June this year because of the timing of the Executive Council meeting. The Finance Committee found it difficult to evaluate the status of the budget with eight months remaining on the books. I have been assured this will not happen again. The committee scrubbed the mid-year budget and made suggestions to General Philbin to enhance the operating effectiveness of the Association for the remainder of the year These involved recommendations to improve the reporting of affinity service groups suggestions on how to enhance revenues and potential cost savings for the National Guard Educational Fund for monument repairs and wall exhibits. When we reviewed the 1998 consolidated budget in November 1997 there was a projected deficit of $313,513. Because of the efforts of General Philbin and his staff the mid-year budget reflects a proposed surplus of $267,286. This is over half a milliondollar improvement over the original budget. The majority of the projected surplus is attributable to reduced ten ant improvement expenses resulting from a current tenant leasing additional space without any improvement or rent concessions. Although the financial picture seems brighter, this surplus is only a projection. Overall revenue projections have once again declined. The current programs are stagnant because of lack of increased membership participation. Because of declining revenue, we must continue with our financial discipline, ever mindful of our financial situation as it pertains to our membership. I will continue to review the monthly budget reports and continue to make recommendations to stabilize and improve the financial situation of NGAUS and its affiliates.

THE NATIONAL GUARD MEMORIAL BUILDING

It is with great pride that I announce that on July 16, we signed a loan agreement with NationsBank for permanent financing for $23.7 million at 6.86 percent for a ten-year term. The One Mass Avenue Corporation Board and the Finance Committee worked together with General Philbin and our local attorney to ensure that we received this low interest rate. On the same date a second mortgage agreement was secured with Union Federal for $2.9 million at 6.64 percent also for a tenyear period. These loans not only secure our presence on Capitol Hill but also reduce the amount of debt service the building must bear for the next ten years. Given the current leasing status and the reduced debt service, the building should start showing a positive cash flow in the future. Although we are continuing in the real estate business everyone must be mindful of and guided by the Association's goals and objectives, which are to provide united representation before Congress on behalf of a strong National Guard and a strong national defense.

MEMBERSHIP DUES

My mission since day one as Treasurer has been to increase the membership participation to 100 percent for each state and territory. Although the monetary dues contribution to the Association has increased by 9 percent in the past year the overall membership shows no increase. The monetary increase is attributable to the dues increase implemented in 1995 not to increased membership participation. The current membership is budgeted at 70 percent and it is likely that this will also be the overall actual membership collected. It is foolish to believe that NGAUS can continue to fight successfully to preserve the role, missions, end strength and force structure of the National Guard with declining membership. We need the officers who are eligible for membership to rally around the cause and pay their dues. We can provide more and better representation with more funds to fight our legislative battles. We will uphold our end of the deal and work together to inform our soldiers and airmen of what our Association is doing to secure the future and the relevance of the National Guard. I implore each of you, the members of our Association, to seek those who are not members and tell them that they are not only endangering their future in the Guard but also the overall existence of the Guard.

OTHER REVENuE PRODUCING PROGRAMS

The NGAUS continues to enhance its insurance programs to ensure that its membership is offered the highest quality insurance at the most competitive rates. We continue to work with the State Associations and the National Guard Bureau to ensure that barriers for the promotion of these programs are eliminated. We are committed to ensuring that every member has access to these programs. Each state has been contacted to select the programs that the Insurance Trust can offer in their states. This affinity agreement between NGAUS and the state assures the state that we will not compete with any of their existing programs and it allows the state to receive revenue for insurance sold in their states. This is a winwin situation for all. Contact your state's Executive Director to find out about the programs being offered in your state. NGAUS also offers other programs besides insurance to benefit our members. Our credit card affinity program was revamped at the end of 1997 and NGAUS now realizes a greater royalty on our member's use of the credit card. We have contracted with LCI to be our long-distance provider for our members. In August 1998 Reliastar will begin offering a unique financial management package to NGAUS members. We have also contracted to publish a membership directory which will aid us in updating our membership database and allow you to get to know those who are members of our Association. I ask that you be open minded when receiving correspondence or phone calls about these programs for they are intended to be beneficial to each member in several ways.