Verhovayak Lapja, 1951 (34. évfolyam, 1-12. szám)
1951 / Verhovay Journal
PAGE 4 Verhovay Journal April 18, 1951 l REPORT OF THE AUDITING COMMITTEE Verhovay Journal Journal of the Verhovay Fraternal Insurance Ass’n. OFFICE OF PUBLICATION 7907 West Jefferson Ave. Detroit 17, Mich. PUBLISHED MONTHLY BY THE Verhovay Fraternal Insurance Association Managing Editor: JOHN BENCZE Editor: JOHN SABO Editor’s Office: 436—142 FOURTH AVENUE PITTSBURGH 19, PA. Telephone: COurt 1-3454 or 1-3455 All articles and changes of address should be sent to the VERHOVAY FRATERNAL INSURANCE ASSOCIATION 436—442 FOURTH AVENUE PITTSBURGH 19, PA. SUBSCRIPTION RATES: United States and Canada ...................................... $1.00 a year Foreign Countries ....................................................... $1.50 a year Entered as Second Class Matter at the Post Office at Detroit, Michigan under the Act of March 8, 1879. OFFICIAL COMMENT LOYALTY, QUALITY, SERVICE, SECURITY, TEAMWORK AND RESPONSIBILITY The President of one of the larger mutual life insurance companies made the following statement, “The . . . people (workers) in the Field and in the Home Office are loyally serving the personal and business needs of many policyholders and beneficiaries. The quality of service is important, for family security may depend on it. Our continuing purpose, working together during 1951, will be to meet this responsibility.” We do not know how many of you have taken the time to read the articles appearing from month to month under this heading, but we would appreciate it if all of our members would take the time to read this one. Here is the president of one of the large insurance companies who states that the agents in the Field and the workers ;n the Home Office are loyally serving the personal and business needs of many policyholders and beneficiaries, and that the quality of service these people render is very important because family security may depend on it. He concludes his statement with the assertion that the continuing purpose of all the workers will be that they work together in 1951 so that they will be able to meet this responsibility. Analyzing this man’s statement we find that his message provides for LOYALTY, QUALITY, SERVICE, SECURITY, TEAMWORK AND RESPONSIBILITY! Doesn’t a statement such as this one make sense to you? Don’t you feel that this is an organization worth belonging to-? Don’t you feel like you would be very proud to belong to an organization which stresses loyalty, quality, service and teamwork so that its responsibility to you will be met in a way to give you security. Today this organization has over $6 Billion of insurance in force and has an approximate yearly income of $350 Million. It isn’t difficult to see why this company became so large! LOYALTY, QUALITY, SERVICE, SECURITY, TEAMWORK AND RESPONSIBILITY — these are the reasons. And to think that this company did all this without the aid of fraternal benefits. Just think what it could have done if it had had the extra advantages possessed by the fraternal benefit societies. It was not too long ago that another outstanding life insurance company president, addressing one of the National Fraternal Congress Conventions, remarked that the fraternal benefit societies really have one great advantage over the commercial companies — the fraternal practices apd benefits — and if the commercial insurance companies too, would possess this advantage they could do far more than what they already have done. Fellow fraternalists, that’ really is quite an admission! Of course, we fraternalists know the value of fraternalism and the advantages it offers. However, not all societies know how to practice it. Why is it that some fraternal societies have difficulties in accomplishing their objectives? If what the insurance company president says is true, that fraternalists have a great advantage over commercial companies, why is it that some of the societies are standing still, or worse, slipping from their once mighty positions? Any insurance business, be it fraternal or commercial, to be CERTIFICATE OF AUDIT We have audited the books and accounts of the Verhovay Fraternal Insurance Association for the six months beginning July 1, 1950 and ending December 31, 1950, and We Certify to the correctness of the financial schedules for the above-mentioned period as shown in the Annual Statement as published in the March 7, 1951, issue of the Verhovay Journal. An examination was made of all income accounts consisting of Interest on Mortgage Loans, Real Estate Loans, Membership Certificate Loans, Bonds, Bank Deposits, Receipts from Verhovay Branches, Trust Deposits, Home Office Building, Handling- Charges, Stock Dividends, Profit on Bonds Sold, and other minor miscellaneous income. All of the above income items were verified as having been received, and traced back into the various ledgers and journals. The securities of our Association were examined in the vaults of the Mellon National Bank and Trust Company, and verified. The examination of these securities disclosed that as of December 31, 1950, there was a total book value of $10,506,465.42 in the various cateogries: United States Government Bonds, $2,001,- 896.25; Industrial Bonds, $249,332.23; State and Municipal Bonds, $2,217,129.52; Railroad Bonds, $741,226.70; Railroad Equipment Trust Certificates, $87,786.01, and Public Utility Bonds, $5,209,094.71. Our examination further verified the fact that all bond coupons were promptly presented for collection when due, and that all monies thus obtained along with those funds received from the sale of securities were accurately credited to our account. A very careful, detailed analysis of all monies disbursed by our Association was made for the six months period under study. Jt covered such items as Death Benefit, Sickness and Accident, and permanent Disability claims, cash surrenders, medical examination fees, all salaries, commissions and collection fees, Home Office Building, Official Publication, Advertising, Traveling Expenses, and all other payments made and listed under the disbursement heading, and included in the totals of the six month’s period. All vouchers and supporting papers for these payments were carefully examined and all payments were found to have been made according to the provisions of the By-Laws of our Association. The Auditing Committee noted the failure on the part of scholarship loan recipients to repay these loans. Further scholarship loans are contingent on the repayment of these loans, and those having obtained such loans in the past are requested to please make prompt repayment. Branches are requested to send their remittances to the Home Office each month, and not every other month, because such negligence on the part of the Branches creates additional unwarranted work, and causes additional expenses. And through the examinations undertaken, it was definitely ascertained that the official data as published by the Home Office in the Official Journal of our Association from month to month gave a true and correct picture of the financial condition of the Association. The Statement of Assets as of the final auditing period of 1950, i.e., July 1, 1950 to December 31, 1950, is as follows: Period Assets December 31, 1950 $11,700,329.72 July 1, 1950 11,295,205.55 Net Increase: $ 405,124.17 The Statement of Assets as revealed in the Annual Statement and which was verified by our audit is as follows: Period Assets December 31, 1950 $11,700,329.72 December 31, 1949 10,814,395.38 Net Increase: $ 885,934.34 Our examination commenced on March 26, 1951, and was completed on April 7, 1951. THE AUDITING COMMITTEE: ALEXANDER NYIRATI GASPAR PAPP WILLIAM C. COHUT successful must have capable leaders who merit the confidence of the public. The officers and directors of any successful business must be men of courage and conviction, w’ho canno' be intimidated or coerced into doing other than what is best for the business. In their hands, as leaders, must rest the full control of the business. Under capable leadership they must have workers who will loyally carry out the duties required of them. In order (Continued on page 5)
