Fraternity-Testvériség, 2003 (81. évfolyam, 1-4. szám)
2003-01-01 / 1. szám
FRATERNITY Page 7 importantly to act quickly when a particular investment takes a downward turn, for it is an important objective to make profits but it is even more imperative to preserve our existing capital. We have a team at Morgan Stanley that works in accordance with our directions, investment guidelines and goals, and from a shared viewpoint - improving the bottom line condition for the HRFA, since they know that is how their performance will be evaluated. Regular audits both from within and without the HRFA. The recent Arthur Anderson saga has refocused attention on the need for thorough, competent and legitimate audits of a company’s operations. Twice a year, an internal audit of the HRFA’s operations is performed by the Auditing and Examining Committee of the Board of Directors of the HRFA. Additionally, each year the HRFA is required to provide a Certified Financial Statement to the various state insurance departments and the NAIC. At its Fall 2002 meeting, the Board of Directors of HRFA decided to obtain a separate external auditing firm to provide this Statement beginning with year 2002, thus separating auditing and accounting functions on behalf of the HRFA. This was done to insure compliance with recent federal legislation and to avoid even the appearance of any impropriety or conflict of interest. Also, every three (3) years, the HRFA is subjected to a lengthy comprehensive audit by the District of Columbia Department of Insurance and Securities Regulation. This continual oversight from both inside and outside our society should provide a high level of security and confidence for the members of the HRFA. Notfor profit charitable corporation status. The H RFA is a fraternal benefit society and is recognized as a not for profit charitable corporation under Section 501(c)(8) of the Internal Revenue Code. Make no mistake about it - we are in business to make money. However, our motivation is one of fratemalism and charity, rather than corporate greed. In accordance with the mandate of our bylaws, the HRFA exists to provide financial products and services to its members and also to promote and foster Hungarian culture among the members and the community at large. The monies that we generate from our operations and investments do not go out in the form of dividends to stockholders but rather allow us the opportunity to help sponsor members’ children at our church youth camps, provide scholarship assistance to our college student members, support dance and concert performances and provide charitable assistance to those in need both here and in the greater Hungarian-speaking region abroad. Most importantly, we are not strangers. The Hungarian Reformed Federation of America is not some faceless corporation run by people you don’t know, who sit in their offices smoking big cigars, who don’t know you and couldn’t care less about you. These people run to sell the stock they received as options, knowing that the stock’s value has been artificially inflated by puffery, deceit and accounting sleight-of-hand, and also knowing that the many small investors who relied on that information stand to lose a significant portion of their savings. The HRFA is run by you and your fellow members, who elect delegates to our Convention every four years. These delegates elect the members of the Board of Directors from among their midst, and these Directors are responsible for their actions and stewardship to the next Convention. The Directors in turn hire the management - a President-CEO and Secretary- Treasurer-CFO - who are responsible to the Directors for their day-to-day management of the company’s affairs and for carrying out the stated policies of the Board. Each member of the Executive Committee (the CEO, CFO and the Chairman of the Board) has been an HRFA member for in excess of 30 years and active in HRFA affairs for over a quarter of a century! All of us share the same concern - “Is my money safe with the HRFA?” I am confident that, after taking into consideration the points raised herein, that you will agree with me that the answer to this question becomes obvious - a resounding YES! In addition to the security offered through HRFA financial products, we also have some very competitive investment opportunities available in our traditional life insurance products, as well as our annuities. One such example is our flexible premium annuity, which can be opened with an initial deposit as small as $300.00 and added to as your needs, desires and finances dictate. HRFA is currently paying a guaranteed first-year interest rate of 6.25% (!) with a current renewal rate of 5.00% (rates are subject to change without notice - please check with your local HRFA agent). Remember that in addition to making a sound financial investment on your own behalf, your membership in the HRFA helps to sponsor and promote our various fraternal activities discussed above and to maintain your connection (or the connection of your children and/ or grandchildren) to your ethnic and cultural heritage. Also, please be sure to tell your friends about these HRFA investment opportunities - you don’t have to be Hungarian to enjoy them! As always, please feel free to contact your local branch manager with any of your questions or problems. Also, my staff at the Home Office and I are ready to help you at any time. May God bless each of you, together with your families and friends, and grant you peace, prosperity and contentment throughout this coming year. “Your membership in the HRFA helps to sponsor and promote our various fraternal activities... and to maintain your connection (or the connection of your children and/or grandchildren) to your ethnic and cultural heritage.”
