Coast Guard Mutual Assistance 2011 Annual Report

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Message from the Chairman As the Coast Guard’s own relief society, Coast Guard Mutual Assistance (CGMA) continues to provide outstanding support for financial needs of Coast Guardsmen. In 2011, CGMA distributed more than $4.6 million in direct financial assistance to over 6,000 shipmates and their families. Another $47,000 funded important programs and services, such as free certified financial counseling and homeowner crisis counseling, respite care, federal student loan fee reimbursements, and layettes for families with newborns.

The Board of Control is always searching better ways to provide financial support to the Coast Guard family. This year the Board approved a new loan to assist with closing costs for purchasing, refinancing or selling a home. The Board also added an education loan to help with expenses not covered by funds from other sources.

Your donations provided essential support to our assistance programs, greatly improving our economic position for the future. Total contributions last year were in excess of $2.3 million. Your contributions helped CGMA end the year with net assets higher than those of the previous year and in a strong position to meet future needs.

Thank you to all who were involved in making this a successful year: x x x x

CGMA Representatives and Assistant Representatives throughout the Coast Guard who do a superb job of helping us look out for our shipmates; CGMA local campaign workers who were instrumental in a successful fundraising campaign; The dedicated CGMA staff for their daily administration; and The Board of Control for its diligent oversight, mission focus, and continuing assessment on how to support the needs of our shipmates and their families.

Bravo Zulu! Keep up the great work.

Admiral, U.S. Coast Guard Chairman Coast Guard Mutual Assistance R. J. PAPP, JR.

Operating Overview Since 1924, Coast Guard Mutual Assistance (CGMA) has been a source of essential financial aid to those in need within the Coast Guard community. Over the course of its service history, CGMA has given over $162 million in financial assistance to serve those needs. In the past five years alone, CGMA has issued interest-free loans totaling over $20 million as well as personal and education grants totaling $3 million in over 31,000 cases.

2011 $4.65 million

6,586 cases

Loans and Grants

$3.99 million in interest-free loans $61,500 in personal grants and grant conversions $250,000 in quick loans 2,815 cases

Education Assistance

$627,000 in supplemental education grants $210,000 in interest-free loans 3,771 cases

Programs & Services Over $48,000 was provided through resource programs

Financial Counseling Loan Origination Fee Reimbursement for student loans Baby Layettes for the newest members of Coast Guard families Lifetime benefits for dependents of deceased active duty members Respite for full time caregiver (2)

Breakdown of Assistance Dollars Housing Expenses Bills & Basic Living Expenses Education Vehicle Repair Emergency Travel Medical & Dental Funeral Expenses Other Expenses

$1,407,988 $1,202,376 $837,346 $736,452 $257,812 $86,627 $83,867 $41,724

CGMA understands the unique sacrifices of the Coast Guard family, especially when they face an unexpected financial need.

Whether helping members with emergency home repairs due to fire or flood, or emergency travel to witness the birth of their child or to visit the bedside of a critically ill parent, CGMA is ready to look after our own. In an effort to alleviate the stress of these and a host of other circumstances, members continue to turn to CGMA and find the support they need.

Over the past year, CGMA provided $4.65 million in financial assistance.

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2011 Assistance and Program Expansion Coast Guard members and their families faced various economic challenges in 2011, including high unemployment, a declining housing market, and increased costs of living. CGMA recognized these hardships by expanding existing programs and introducing new avenues to assist our members.

CGMA Closing Cost Program In 2011, Coast Guard Mutual Assistance expanded the eligibility of the existing closing cost program. Now available to all CGMA clients, this interest free loan of up to $6,000 can help members, who are purchasing a home, with closing costs. Additionally, those selling their house at a loss or members who wish to refinance their home mortgage to obtain lower interest rates and monthly payments are also eligible for this loan to help pay settlement charges.

New Adoption Loan New in 2012, all CGMA clients who are incurring expenses related to the legal adoption of a child are eligible to receive up to a $6,000 needbased interest free loan. These expenses can include adoption and legal fees, court costs, home inspection costs, and travel expenses. This will be an immense help for clients who do not have all of the funds necessary to proceed with the adoption process.

(4)

New Education Loan To better meet the needs of those earning college degrees or attending vocational technical training schools, CGMA implemented a new education loan program. The new loan provides up to $2,000 interestfree for tuition and other educational expenses not covered by funds from other sources. This new initiative replaced two existing loans that were more restrictive and rarely used. In 2011, over $210,000 of assistance provided 131 education loans.

Baby Layettes CGMA’s “Welcome Baby Package” is now offered to all clients who just had or adopted an infant. Valued at over $70, the layette contains a receiving blanket, crib sheets, clothes and other items for a newborn child along with some helpful health and parenting information from the March of Dimes. Last year 35% more layettes were provided to Coast Guard families.

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Source of Funds Contributions In order to continue performing its vital role within the Coast Guard community, CGMA relies on a steady infusion of funds from voluntary contributions. Though CGMA works closely with the Coast Guard, it is an independent non-profit organization and receives neither appropriated nor non-appropriated government funding.

Throughout the year, contributions are accepted from individuals and organizations. A majority of the financial support CGMA receives are from allotment/payroll deductions from Active Duty members, Retired Military members and Civilian Employees. These allotments/deductions account for 76% of $2.35 million in donated funds for 2011.

Repayments on Loans As the money distributed through interest-free loans is returned to CGMA, these funds are redistributed to other Coast Guard members in need, thereby recycling contribution dollars. While a little less than $3.7 million in repayments was received in 2011, almost $4 million was provided in interest-free loans.

Return on Investments (CGMA Portfolio) CGMA operations are also supported by the capital generated from the investment portfolio. With a market value of $15.5 million at the end of 2011, the portfolio allows CGMA to produce income through interest and dividends and grow capital in low-risk investments. Ultimately this resource serves as a safety net for CGMA to maintain seamless operations.

When needs exceed operating funds, CGMA would draw upon these reserve funds. Whether during times of emergency or during the normal course of business, the portfolio provides an important safeguard to seamlessly meet client needs without requiring additional contributions. In the absence of new donations, current portfolio funds could sustain present CGMA operations for 7 years.

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Use of Funds

For every dollar donated in 2011, $2.31 was issued in direct programs and assistance. An additional $ .19 covered administrative and fundraising costs.

CGMA Dollars Hard at Work With $2.35 million in donations in 2011, CGMA was able to provide over $3.99 million in interest-free loans. An additional $664,000 in grants was given. Program costs were $782,000. Administrative costs were only $325,000 and fundraising costs were kept under $121,000.

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Statements of Financial Position For years ended December 31, 2011 and 2010

2011

2010

Assets Cash and cash equivalents

$

Pledges receivable Investments Accrued Dividends and Interest Loans Receivable – Net

940,193

$

927,382

735,000

715,000

15,490,971

15,077,409

53,655

52,690

3,047,525

2,948,091

Other Receivables

3,394

2,460

Property and equipment – Net

80,994

121,491

Total Assets

$

20,351,732

$

3,696

$

19,844,523

Liabilities and Net Assets Liabilities Accounts payable

$

Accrued salaries and leave Total Liabilities

2,350

52,943

51,646

56,639

53,996

19,490,192

19,000,335

Net Assets Unrestricted Temporarily restricted

804,901

790,192

Total Net Assets

20,295,093

19,790,527

Total Liabilities and Net Assets

$

20,351,732

$

19,844,523

Independent Audit: Coast Guard Mutual Assistance Financial Statements for the years ended December 31, 2011 and 2010, were audited by independent auditors from the firm Murray, Jonson, White & Associates, LTD, Certified Public Accountants, of Falls Church, Virginia. Copies of the report have been provided to all members of the Coast Guard Mutual Assistance Board of Control. Copies of the audit report are available by contacting the Director of Finance, Coast Guard Mutual Assistance, US Coast Guard Stop 7180, 4200 Wilson Blvd, Suite 610, Arlington, Virginia 20598-7180.

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Statements of Financial Activities For years ended December 31, 2011 and 2010

2011

2010

Revenues, Gains, and other Support Contributions Annual campaign collections

$

Other Donations and Misc.

Grants Repaid/Collection Agency Payments

2,045,383

$

1,988,643

305,355

137,700

14,519

9,067

Investments Interest and dividends

363,628

341,134

Realized and unrealized gains (losses)

(384,822)

1,275,166

Investment Management Fees

(63,765)

(57,644)

116,066

112,596

2,396,304

3,806,662

1,446,067

1,462,068

Donated facilities Total Revenues, Gains, and Other Support Expenses Program Expenses Supporting Services General and Admin Expenses

324,861

328,348

Fundraising expense

120,810

129,010

Total Expenses

1,891,738

1,919,426

504,566

1,887,236

19,790,527

17,903,291

Change in Net Assets Net Assets at Beginning of Year Net Assets at End of Year

$

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20,295,093

$

19,790,527

Board of Control December 31, 2011

CGMA BOC Officers Chairman President Vice President Treasurer Secretary/Executive Director

Admiral Robert J. Papp, Jr., USCG Rear Admiral Ronald T. Hewitt, USCG Master Chief Petty Officer Emily L. Jennings, USCG Lieutenant Commander Omar Vazquez, USCG Mr. Barry M. Boisvere

CGMA BOC Members Commissioned Officer Commander Beth A. Naff, USCG Commissioned Officer Lieutenant Commander Omar Vazquez, USCG Commissioned Officer Lieutenant Commander Jo’Andrew D. Cousins, USCG Chief Warrant Officer Chief Warrant Officer Brent A. Light, USCG MCPOCG Master Chief Petty Officer CG Michael P. Levitt, USCG Enlisted (E-7 or above) Master Chief Petty Officer Emily L. Jennings, USCG Enlisted (E-6 or below) Petty Officer First Class Jeffrey L. Bueche, USCG Enlisted (E-6 or below) Petty Officer Second Class David Nava, USCG Reserve Commander Annette M. Tomkins, USCGR Civilian Mr. Frank G. Tatu Retired Chief Warrant Officer John C. Baker, USCG (Ret) Auxiliary AUX Bruce A. White Officer’s Spouse Mrs. JulieAnn Thomas Enlisted Member’s Spouse Mrs. Kristina Tanasichuk Medical/TRICARE Specialist Chief Warrant Officer Pamela L. Robins Family Support Specialist Mr. Rodney B. Whaley

CGMA BOC Alternates MCPOCG Enlisted (E-7 or above) Enlisted (E-6 or below)

Master Chief Petty Officer Bobbie J. Sisto, USCG Senior Chief Petty Officer Douglas G. Gilmer, USCG Petty Officer First Class Brent M. Ruggles, USCG

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Contributors With sincere appreciation for the wonderful support received throughout 2011, CGMA acknowledges the contributions generously given by the following individuals, companies and organizations.

Corporate and Organization Contributors of $1,000 or More

Alien Skin Software Belvoir Woods Protestant Mission Society California Community Foundation Cape Cod Child Development Program, Inc. Dallas Military Ball Harbour Lights Sea Watch, Inc. The Boston Foundation Thrift Shop Association, Selfridge ANGB USAA Federal Savings Bank

Individual Contributors of $1,000 or More

Mr. William Abt, Jr. Mr. & Mrs. W. F. Boucher CDR & Mrs. Richard Burgdorf, USCGR (Ret) PS2 Fred Callies, USCG (Ret) Ms. Sandra F. Knight Mrs. Ariadna Miller CAPT Alan B. Smith, USCG (Ret)

Author Royalties – Character in Action Donald T. Phillips ADM James M. Loy, USCG (Ret)

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Memorial Contributions were received in memory of Ms. Tracy Hurley Mr. Stewart Johnsen Ms. Elizabeth A. Liggett Mr. David M. Lockyee Ms. Lauren E. Manning Mr. William D. Maroulis COL John McHugh Ms. Carmen Mendez Mr. Robert D. Millett Ms. Mary E. Moore CAPT Edwin Parker BM2 Michael L. Partridge, III PO1 Pat Ramsey Ms. Janet Schulenberg CAPT Bradford W. Sherman CAPT Arthur F. Shires CDR George P. Spaniol Mr. Landon C. Studer Mr. Steven R. Titsworth CDR R.S. Tuneski Mr. John Varallo Mr. Harry C. Weare Mr. Ron Williams Mr. Grant T. Wimer Mr. Neil P. Winberry

CDR M. J. Ahearn CPO Clyde Allen Mr. Kenneth E. Andrews Mr. Philip R. Appenzeller Mr. Joseph Austerberry PO Monica Beacham Mr. Ellis Bearce CWO Robert A. Boutte PO Andrew Calvert CAPT Frederick Carney Mr. Michael P. Clement CPO John R. Conley Ms. Molly I. Cross Ms. Nancy R. DeHaan Mr. Bill Donohue BM2 Steven Duque ADM William J. Ecker Mr. Charles S. English Mr. Theodore Flanders Mr. Frederick R. Geiger CDR William W. Goetzee RADM Charles Hanks TTC Raymond W. Hertzburg MK1 Nicholas C. Holmes CDR Christina Hosking

Bequests Coast Guard Mutual Assistance is truly honored and appreciative for the generosity of the following individuals and their commitment to the future of CGMA.

CDR Christina M. Hosking, USCGR (Ret) CWO Elizabeth F. Splaine, USCG (Ret) Mr. George Zavadil ( 12 )

Contributors to Coast Guard Mutual Assistance

Looking After Our Own Since 1924

Coast Guard Mutual Assistance US Coast Guard Mailstop 7180 4200 Wilson Blvd., Suite 610 Arlington, VA 20598-7180

www.CGMAHQ.org 1.800.881.2462

Front Cover Art: Rescue from the Clutches of the Mighty Sea by Thomas Picard