Spring2002 by Logistics Officer Association

Spring2002

12/10/02

6:03 PM

Page 4

2001 LOA Financial Report Major Patrick Kumashiro, LOA Treasurer 2001 was an unprecedented year for LOA National. Clearly, LOA was challenged with the transition to a new Executive Director for Public Relations, the cancellation of the 2001 LOA conference in Atlanta, and the modernization of the LOA web site.

Last summer, LOA hired Ms. Kim Kortum as Executive Director for Public Relations replacing Ms. Deb Pauly. During the transition, LOA incurred administrative and publishing start-up costs associated with changing to a new magazine publisher. The good news is that we will be able to reduce the cost of producing the “Exceptional Release” while maintaining the overall quality of the magazine. Obviously the tragic events surrounding 9/11 necessitated the unfortunate cancellation of the 2001 LOA conference in Atlanta. Since the conference generates the most revenue for LOA, the cancellation had a significant impact on our net income. Last October, LOA implemented a secure on-line credit card payment capability on our website, allowing members to renew their membership and donate to the scholarship fund online.. Although we will continue to accept payment by check, we encourage you to use this credit card feature in the future. This functionality was extremely timely as all mail deliveries to our LOA P.O. box in the Pentagon were permanently suspended. We have finally received most of our forwarded mail at our new P.O. box in Arlington, VA. Many thanks to Major Ben Davis for his exceptional work in this area!

Statement of Operations 2001 income exceeded expenses by $15,869.36. Total income is actually overstated by $32,500 due to 2001 conference booth income that is being held for the 2002 conference. Individual memberships totaled $33,325, a slight decrease from $34,520 in 2000. Corporate memberships totaled $6,500 as LOA added 13 new corporate members. ER advertising income totaled $26,797.23, a decline from 2000 due to the impact of 9/11 and a sluggish economy. (This does not include 2001 advertising accounts receivable of $14,144.33.) Interest income from LOA’s two certificate of deposits totaled $1,979.68. 2000/2001 contributions totaled $9,500 as a result of generous donations from ATTI and Boeing.

ER publication costs and LOA executive support totaled $78,298.22. 2000/2001 Conference expenses totaled $15,007.54. 2001 conference expenses that were not refundable after the cancellation of the conference totaled $10,563. Bank service charges totaled $660.96 for expenses associated with credit card merchant fees. Equipment rental costs totaled $2,801.73 for two Apple laptop computers that are leased for producing/editing the ER. Professional fees totaled $1,079 for LOA’s Certified Public Accountant services. Statement of Assets & Liabilities LOA ended December 31, 2001, with an operating account balance of $32,874.62. In 2001, LOA also maintained two CDs in reserve—a 6month CD worth $34,017.52 and a 13-month CD valued at $10,315.93. This year, LOA moved the 6-month CD into a higher interest bearing money market account. By mid-year we expect to have a one-time expense of $4,950 for payment due to Boundary Light.com once our web site programming is complete.

The scholarship program continues to be extremely successful as individual and corporate members donated $10,530 in late 2000 and 2001. As a result of your generous contributions, LOA was able to award $2,000 scholarships to five very deserving enlisted members. A separate interest-bearing account has been established for all future scholarship donations.

In closing, plans for the 2002 conference in Washington D.C. are well underway. Our next web upgrade will allow our conference attendees to register and pay their registration fees on-line. Since I will be PCSing in June, the Executive Board has appointed LTC Tracy Smiedendorf as acting treasurer IAW with the LOA by-laws until the summer elections. LTC Roger Harville will continue to serve as assistant treasurer. Thank you for your supreme patience during this turbulent year. Thanks again for the opportunity to serve as your LOA National treasurer! See you in D.C.!