Coast Guard Mutual Assistance 2012 Annual Report

Coast Guard Mutual Assistance

2012 Annual Report

Coast Guard Mutual Assistance

provides essential financial aid to the entire Coast Guard family, chiefly through interest-free loans, grants, and financial counseling. Coast Guard Mutual Assistance (CGMA) strives to promote financial stability and general well being of the people it serves. Eligibility extends to Active Duty, Retired and Selected Reserve military personnel, Civilian employees, and Auxiliary members.

Then & Now

A Quick Sketch of CGMA History

The League of Coast Guard Women is founded with a mission to “minister to the general welfare of the commissioned officers, warrant officers, enlisted men and civilian employees of the Coast Guard and their immediate families”

Admiral F. C. Billard is Commandant; Mrs. Billard becomes the first “Honorary President”

As the U.S. enters World War II, Coast Guard Welfare is formally established and assumes theLeague’s mission

The organization’s name changes to Coast Guard Mutual Assistance

CGMA centralizes operations and is incorporated in the Commonwealth of Virginia

CGMA distributes $3 million in direct aid to families affected by Hurricanes Katrina, Rita and Wilma

CGMA celebrates 85 years of service to the men and women of the Coast Guard

CGMA delivers over$4 million in direct financial assistance through loans and grants each year. In the spirit of promoting financial stability, CGMA also offers a variety of education and family support programs that boost morale and enhance Coast Guard readiness

With over 135 locations throughout the Coast Guard, CGMA ensures emergency assistance is readily available whenever needed

CGMA has cross servicing agreements with sister aid societies – Air Force Aid Society, Army Emergency Relief and Navy-Marine Corps Relief Society.

Message from the Chairman

The Coast Guard’s own relief society, Coast Guard Mutual Assistance (CGMA), continues to prove its worth as a valuable resource for meeting the financial needs of our shipmates. As Hurricane Sandy beseiged the eastern seaboard in October, CGMA was poised to assist Coast Guard families , providing over $118,000 in loans and grants to those who were affected. Overall in 2012, CGMA distributed more than $4.27 million in direct financial assistance to over 5,900 Coast Guard individuals and their families. Another $53,800 funded important programs and services.

The CGMA Board of Control continued looking for new and better ways to assist Coast Guard families. In January the Board established a new adoption loan program and in November it added an adoption grant.

Special thanks go out to the steady, faithful donors throughout the Coast Guard community whose contributions are the lifeblood of CGMA. Also this year I note with gratitude a record $500,000 gift from the estate of the l ate CAPT Joseph P. Martin, USCG. Another check for over $17,000 came in from a charitable trust established by Dorothy M. Thayer, sister of the late RADM Louis M. Thayer, USCG. These legacy donations are a testament to the values of the Coast Guard men a nd women who take pride in their service and are eager to support their shipmates. All together, contributions in 2012 exceeded $2.6 million.

These, along with healthy growth in the investment portfolio helped CGMA end the year with net assets of $23 million and in a very good position to meet future needs.

All of this points to a successful year, and I want to express my sincere appreciation to all who were involved to make it so. My thanks to the CGMA Representatives and Assistant Representatives throughout the Coast Guard who do a superb job of helping us “look after our own.” Thanks to the local campaign workers who were instrumental in a successful fundraising campaign. Thanks also to the dedicated staff at CGMA Headquarters for their day-to -day administration, and to the Board of Control for its diligent oversight, mission focus, and continuing assessment of the needs our shipmates and their families.

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

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 $167 million in financial assis tance 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 more than $3 million in over 31,000 cases.

2012

$4.28 million

5,989 cases Loans and

Grants

 $3.65 million in interest-free loans

 $81,400 in personal grants and grant conversions

 $212,000 in quick loans

 2545 cases

Education Assistance Programs & Services

 $590,000 in supplemental education grants

 $137,000 in interest-free loans

 3,536 cases

Over $55,000 was provided through resource programs

 Financial Counseling

 Loan Origination Fee Reimbursement for student loans

 Baby Layettes for the newest members of Coast Guard families

 Respite for full time caregivers

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.

2012 Financial Education and Programs

Coast Guard members and their families continue to face various economic challenges in 2012, including a high unemployment rate and increased costs of living and fuel. CGMA recognizes these hardships by expanding existing programs and introducing new trainings to both educate and assist our members.

NFCC Financial Counseling

The purpose of financial and housing counseling and debt management assistance is to help our clients become good manag ers of their personal finances and meet their financial obligations. To assist in accomplishing these goals, CGMA pays for our clients to receive financial and hou sing counseling services and, when needed, debt management assistance . Our partnership with the National Foundation for Credit Counseling (NFCC) and its member agencies allows us to help Coast Guard members all around the country. This counseling is available at any time to the entire Coast Guard family and is completely confidential. Members are not required to be in debt or seek assistance in order to take advantage of these individual counseling sessions. Whether unemployment has affected a family, a PCS move has changed an active duty member’s financial situation, unexpected circumstances have altered the monthly budget, or the purchase of a home is under consideration, a financial counselor can help by developing a financial plan that will work.

NFCC Financial Training

CGMA has also partnered with the NFCC and its member agencies to offer free financial training classes to any interested Coast Guard units, spouses groups, etc. These classes go over basic budgeting, savings, and managing debt. Sev eral units took advantage of this training in 2012.

Year of the Coast Guard Family

New Adoption Loan

Beginning in 2012, all CGMA clients who incurred expenses related to the legal adoption of a child were eligible to receive up to a $6,000 need-based interest free loan. These exp enses can include adoption and legal fees, court costs, home inspection costs, and travel expenses. Adoptions have become increasingly expensive, and CGMA hopes that clients who are adopting will take advantage of this interest free loan.

New Adoption Grant

On January 1, 2013, Coast Guard Mutual Assistance announced a new Adoption Grant program The CGMA Adoption Grant program will provide up to $1000 per client for the home study expense directly related to the legal adoption of a child. This grant is a vailable to all CGMA clients.

Baby Layettes

CGMA’s “Welcome Baby Package” is now offered to all clients who have just had a baby or are adopting one. 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. In 2012, CGMA distributed three times more layettes than 2011, supplying over $22,000 in baby supplies to 350 Coast Guard families.

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 comes from allotment/payroll deductions from Active Duty members, Retired Military members and Civilian Employees. These allotments/deductions account for 66% of $2.67 million in donated funds for 2012.

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.

Return on Investments (CGMA Portfolio)

CGMA operations are also supported by the capital generated from the investment portfolio. With a market value of $18.2 million at the end of 2012, 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 9 years

Use of Funds

USE OF CGMA FUNDS

For every dollar donated in 2012, $1.88 was issued in direct programs and assistance. An additional $ .18 covered administrative and fundraising costs.

CGMA Dollars Hard at Work

With $2.67 million in donations in 2012, CGMA was able to provide over $3.65 million in interest- free loans. An additional $632,000 in grants was given. Program costs were $736,000, administrative costs were $343,000 and fundraising costs were kept under $139,000.

Statements of Financial Position

For years ended December 31, 2012 and 2011

IndependentAudit:

Coast Guard Mutual Assistance Financial Statements for the years ended December 31, 2012 and 2011, 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, Coas t Guard Mutual Assistance, US Coast Guard Stop 7180, 4200 Wilson Blvd, Suite 610, Arlington , Virginia 20598-7180.

Statements of Financial Activities

For years ended December 31, 2012 and 2011

Board of Control

December 31, 2012

CGMA BOC Officers

Chairman Admiral Robert J. Papp, Jr. , USCG

President Rear Admiral Daniel A. Neptun, USCG

Vice President Chief Warrant Officer John C. Baker, USCG (Ret)

Treasurer Lieutenant Commander Omar Vazquez, USCG

Secretary/Executive Director 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)

Enlisted (E-6 or below)

Enlisted (E-6 or below)

Master Chief Petty Officer Julie A. Gunderson, USCG

Petty Officer First Class Jeffrey L. Bueche, USCG

Petty Officer Second Class David Nava, USCG

Reserve LTJG Mark M. Sanchez, 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 , USCG

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. Sist o, USCG

Senior Chief Petty Officer Douglas G. Gilmer, USCG

Petty Officer First Class Brent M. Ruggles, USCG

Contributors

Withsincereappreciationforthewonderfulsupport receivedthroughout2012,CGMAacknowledgesthecontributions generouslygivenbythefollowingindividuals,companiesandorganizations.

Corporate and Organization Contributors of $1,000 or More

Academy Memorial Chapel Fund

Belvoir Woods Protestant Mission Society

California Communi ty Foundation

Coast Guard Spouses Association of Astoria

Cruise Industry Charitable Foundation

Dallas Military Ball Foundation, Inc.

Dorothy M. Thayer Trust

Sea Watch, Inc.

Surfmen's Trust Fund at The Boston Foundation

USAA Fed eral Savings Bank

Individual Contributors of $1,000 or More

Mr. & Mrs. Kenneth D. Appleton

Mr. & Mrs. W. F. Boucher

CDR & Mrs. Richard Burgdorf, USCGR (Ret)

CAPT John H. Byrd, USCG (Ret)

Ms. Marcia DeWolf

Mrs. Eugenia A. Koburger

Mr. Richard R. Mace

Ms. Ariadna Miller

LCDR Gerald L. Ranes, USCG (Ret)

CAPT Alan B. Smith, USCG (Ret)

Author Royalties – Character in Action

Donald T. Phillips

ADM James M. Loy, USCG (Ret)

Memorial Contributions were received in memory of

Mr. Rick Aboe

CAPT Thomas M. Bader

Mr. Carl J. Bertelsen

CAPT Francis Buckley

Mr. Alan Cahill

Mr. John Clough

Mr. Nick A. Costas

Mr. Joseph DeAngelo

Mr. Lawrence M. Dezern

LCDR Michael Eberhardt

CAPT Paul F. Enger

Mr. Herb Farrell

Mr. Charles B. Ford, Jr.

Capt Terry Greenhalgh, USAF

RADM Albert Heckman

Mr. John E. Hodorek

Rudy Holm

Ms. Margaret Hooper

Mr. Allan I. Hyde, Sr.

Mr. Leo P. Ledwell

Mr. Ken J. Legler

CAPT Norman Lemley

Mr. William D. Maroney

Ms. Lois J. Masters

G. William Miller

Mr. Robert Millette

PO Jamie A. Muscatelli

Mr. Robert O'Briant

BMCM Leslie C. Parritt, Jr.

PO John Perrin

Ms. Shirley C. Reese-Smith

SN Alan Ricker

Mr. Phillip A. Rosen

CDR Frank L. Samson

Mr. Lee J. Timaeus

MCPO George Volland, USN

Ms. Kate Watson

Bequests

Coast Guard Mutual Assistance is truly honored and appreciative of the thoughtfulness and generosity of CAPT Joseph P. Martin, USCG, and his commitment to the future of CGM A.

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