Fraternity-Testvériség, 2004 (82. évfolyam, 2-4. szám)

2004-10-01 / 4. szám

Page 4

Fraternity- Testvériség

Report of the Secretary-Treasurer

HRFA’s financial statements are based on statutory accounting principles promulgated by the state insurance commissioners who require conservatism and who stress the measurement of our abil____ ity to pay the claims of our policyholders in the future. This is the reason HRFA has more than $13 million in reserves, which are calculated by our independent actuary. Our surplus is about $8 million. Therefore, we are on a solid financial footing. One of our major problems, however, is that our new certificates processed are not enough to earn a profit on a yearly basis in order to increase our surplus. Thus, we need to increase our production in the future. In the meantime, we took action to reduce our operating costs by performing much more work at the Home Office so

that we rely less on outside accounting and actuarial services. For example, we started to perform all of the accounting functions and much of the actuarial calculations ourselves. Thus, we will not have to pay for accounting advice, and now, we fully understand our reserve calculations.

In addition, we requested the DC Insurance Commissioner to reduce the frequency of his audit from every three years to once every five years. We stated that we cannot continue with an audit system that costs us more than 25% of our premium income, and we provided many reasons to do so with safeguards to our policyholders.

These savings are due to the excellent work of the staff that works hard in our Treasury Department. Among this group of excellent employees, we have knowledgeable persons who possess several professional and graduate degrees. I feel privileged and thankful to be working with Doug Eckley, Silvia Fedor, Erika Mason and Elizabeth Pota.

Leslie L. Megyeri Secretary- Treasurer

THE WHITE HOUSE

WASHINGTON

September 17, 2004

I send greetings to the members of the Hungarian Reformed Federation of America as you gather for your 37th Quadrennial Convention.

Our Nation is blessed by the diversity of our citizens. Through your values and devotion to community, Hungarian Americans have helped shape our national character and contributed to the vitality of our Nation.

I commend your organization for celebrating and preserving your Hungarian heritage and for providing support for your community. Your efforts reflect the compassion and decency of our country and help build a culture of responsibility and citizenship.

Laura joins me in sending our best wishes.

Commonwealth of Pennsylvania Office of the Governor Harrisburg

THE GOVERNOR

GREETINGS:

It gives ine great pleasure to extend my personal regards and best wishes to everyone gathered in Greensburg, Pennsylvania for the 37th Quadrennial Convention of the Hungarian Reformed Federation of America (HRFA).

Since 1896, your fraternal society has been a trusted and critical resource for countless hard working families. In the beginning, many of these families arrived from Hungary searching for the American Dream and willing to explore every opportunity available to give their family a better future. Today, you remain committed to the personal and financial needs of your members, providing premiere life insurance and annuities, scholarships, mortgage loans, cultural activities, and quality care to the elderly through the Bethlen Home, which includes a nursing home, personal care home, and retirement village.

I hope you will look back with pride upon all that this organization has accomplished throughout its history. You have built a community of members and families who share a passion for hard work, fellowship, and cultural pride. The strength of your mission and members formed the foundations from which you grew, but it is the loyalty you have for each other and your culture that has sustained your success and will continue to bring pride to future generations.

On behalf of all Pennsylvanians, I commend the Hungarian Reformed Federation of America for upholding the highest standards of honor, friendship, and service and for giving its members the security and support they need to live fulfilling, prosperous lives. Best wishes for a memorable and productive convention and for continued success in all of your future endeavors.

EDWARD G. RENDELL Governor September 2004