Fraternity-Testvériség, 1976 (54. évfolyam, 1-4. szám)
1976-04-01 / 2. szám
V. TRUST FUND Unclaimed matured proceeds and death benefits which cannot be remitted to the legal recipients because of various reasons, are kept on our Trust Fund. U.S.A. Canada Total Balance Dec. 31, 1974 $111,079.94 $5,034.84 $116,114.78 Balance Dec. 31, 1975 136,127.14 8,034.84 144,161.98 VI. BUDGET I submit a budget-expense reconciliation for the year 1975, combined with the proposed budget for the current year. The proposed budget was prepared with the cooperation of the Executive Committee and the Actuary. I forwarded a monthly budget-expense reconciliation to the National Officers and the Accountant. VII. PAYROLL, TAXES After deducting the various Federal and State taxes as well as contribution to the Retirement Benefit Fund, we forwarded net payroll to the Treasurer’s office. Taxes withheld were always submitted to the US agencies and Canadian tax offices on time. VIII. REINSURANCE Insurances over $15,000.00 are automatically insured up to $60,000.00 with the North American Reassurance Company. I wish to call, however, your attention to the stipulation of our reinsurance contract according to which the amount of reimbursement gradually decreases as the reserve accumulates along the years. I give account on the cost of the reinsurance as follows: U.S.A. Canada Reinsurance Premium paid in 1975 .......$6,347.98 $598.20 Less: Experience Refund ...................... 1,718.60 — Net Reinsurance paid for 1975 ..............$4,629.38 $598.20 We ceded $948,200 life and $1,224,620.00 accidental death insurance as of December 31, 1975. No reinsured member died during the past year. IX. OTHER SERVICES 1) I served as Chairman of the Employees’ Retirement Plan. I submetted the new by-laws of the Plan to the Internal Revenue Service as revised and amended by the Board of Directors. We had to make certain changes in order to comply with the Employees’ Retirement Income Security Act of 1974. The District Director acknowledged the receipt and notified me that he will give his final approval after examination of the by-laws. 2) As one of the associate editors of the “Fraternity”, I wrote several articles in the official publication. I use this opportunity also to gratefully acknowledge your generous gift granted to publish my book written about the life and heroic death of Colonel Michael Kovats de Fabricy in the “Hungarica Americana” series. I got a very good response from the public, more than 800 copies were sold since the end of January. 3) I attended 48 Executive Committee meetings with a duration of two, or three hours each. 4) I am ex officio Controller of the Bethlen Home. In this capicity I went seven times to Ligonier to attend meetings of the Board of Directors and Managers. I used every occasion to examine the books of the Expense and Building Funds. In the interim, I exercised control over the financial affairs through frequent telephone calls to the Superintendent and bookkeeper of the Home. It is rather difficult to draw reliable and valid conclusions from the 1975 calendar year. It was a mixed year from an accounting point of view. We started the 100 bed operation on May 1, 1975, only. The fact that we never had vacancies seems to justify the expansion of the Home. X. SUMMARY Present economic indicators seem to prove that 1975 was the last year of the long outstretched slump in the US economy. We must be grateful to the good Lord that our operation did not suffer any significant damage from the adverse economic condition. Despite of widespread unemployment, our managers came up with a very good collection and our production record has improved for the third consecutive year. Our old problem still bugging us. We had unacceptable high net losses in membership (754) and number of certificates (683). The $440,514.00 increase in insurance in force is trailing the $644,213.00 reached in 1974. THIS TREND CANNOT BE REVERSED UNLESS WE COME UP WITH MUCH HIGHER NEW BUSINESS IN THE FUTURE. The excellent production of the field-force during the recent months is raising hopes that we finally reached the turning point. Our net admitted assets increased by $394,625.97 due to our very good performance in the bond sector of our portfolio which counterbalanced the losses suffered on some mortgage loans. The 5.46% ratio on investment income is a new high. The $154,219.93 net gain on operation is a slight improvement over the last year and may be considered as good average. * * * I could not possibly cope with the diversified duties of my department without the able and willing help of my office force. I express my sincere appreciation to Mrs. Katalin Paschke, secretary and claim adjustor; Dr. Zoltán Koros- sy, machine operator and statistician; Mr. Tibor Baksy, senior bookkeeper; Mrs. Katalin Galanthai-Nagy, Mrs. Adrienne Vegh, and Miss Elizabeth Nagy, bookkeepers. I use this opportunity to write a word of appreciation to the employees of the Treasury Department. With their excellent help I was able to wear two hats twice during the past year while substituting for the Treasurer. The cooperation and the helping spirit of the people in the two departments were exemplary. At the end of this term I will complete 27 years in the service of the Federation out of which I spent twenty years in the same office. I am grateful to the Almighty God for letting me serve my beloved Hungarian people thousands of miles away from my native land. I thank you all, Gentlemen, for your cooperation, understanding and fraternal love which I was fortunate enough to enjoy throughout these years. I hope that my report will meet with your approval and gain final acceptance. Respectfully submitted by: László Eszenyi Controller 11
