2015-08-03T08:13:43-05:00 2014-12-31 540975470 HOMES LOWRY HORN & JOHNSON LTD 3998 FAIR RIDGE DRIVE SUITE 360 FAIRFAX VA 220332907 990 2014-01-01 530213841 AMERICAN ARMED FORCES MUTUAL AID ASSOCIATION AMER 7035223060 102 SHERIDAN AVENUE FORT MYER VA 22211 WALTER R LINCOLN PRESIDENT 7035223060 2015-07-21 1 GAIL E CHAMBERS P00631932 7032814880 2014 2016-02-25 16:41:14Z WALTER R LINCOLN 102 SHERIDAN AVENUE FORT MYER VA 22211 141912261 0 X WWW.AAFMAA.COM X 1879 VA THE ORGANIZATION'S PRIMARY EXEMPT PURPOSE IS TO AID ITS MEMBERS AND FAMILIES IN A PROMPT, SIMPLE AND SUBSTANTIAL MANNER. 16 15 81 0 0 0 0 0 55305270 55980307 54266638 57413465 2974540 4884431 112546448 118278203 0 0 61536573 56709314 7635439 7855623 0 0 0 41162665 52961425 110334677 117526362 2211771 751841 1102240618 1154555615 55955192 70003256 1046285426 1084552359 AAFMAA'S MISSION IS TO BE THE PREMIER PROVIDER OF INSURANCE, FINANCIAL AND SURVIVOR SERVICES TO THE AMERICAN ARMED FORCES COMMUNITY. 0 0 THE ORGANIZATION OPERATES SOLELY FOR THE MUTUAL BENEFIT OF ITS MEMBERS, THEIR FAMILIES AND BENEFICIARIES. IT PROVIDES LOW COST, INTEREST SENSITIVE WHOLE LIFE AND TERM LIFE INSURANCE PROTECTION TO ITS APPROXIMATELY 90,000 MEMBERS. THE ORGANIZATION PROVIDES A FINANCIAL AWARENESS PROGRAM, INCOME PROTECTION, INSURANCE COUNSELING, AND ASSISTANCE IN APPLYING FOR ENTITLEMENT BENEFITS TO A LARGE PORTION OF ITS MEMBERSHIP. THE ORGANIZATION PROVIDES FINANCIAL PLANNING, INVESTMENT MANAGEMENT SERVICES, AND TRUST SERVICES TO ITS MEMBERS. 0 0 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 1239 0 81 1 0 0 0 0 0 0 X 16 15 0 0 0 0 1 1 1 1 1 0 0 0 1 1 1 1 1 1 0 0 X ASSOCIATION 7035223060 102 SHERIDAN AVENUE FORT MYER VA 22211 LTG DONALD M BABERS CHAIRMAN OF THE BOARD 2.00 X 0 0 0 GEN JACK N MERRITT VICE CHAIRMAN,BOARD & CHAIRMAN, FINANCE COMMITTEE 2.00 X 0 0 0 MAJ WALTER R LINCOLN PRESIDENT, TREASURER 35.00 X X 469397 0 38367 BG MACK C HILL DIRECTOR, FINANCE COMMITTE 2.00 X 0 0 0 COL JAMES P GERSTENLAUER DIRECTOR, FINANCE COMMITTE 2.00 X 0 0 0 GEN JOHN A SHAUD DIRECTOR, MEMBERSHIP COMMI 2.00 X 0 0 0 LTG JOSEPH E DEFRANCISCO DIRECTOR, MEMBERSHIP COMMI 2.00 X 0 0 0 CSM GEORGE HORVATH DIRECTOR, MEMBERSHIP COMMI 2.00 X 0 0 0 CMSGT LEWIS E MONROE DIRECTOR, MEMBERSHIP COMMI 2.00 X 0 0 0 COL DENNIS D PORTER DIRECTOR, FINANCE COMMITTE 2.00 X 0 0 0 CMSGT JOHN T RIDGE DIRECTOR, FINANCE COMMITTE 2.00 X 0 0 0 LTG WILLIAM J LENNOX CHAIRMAN MEMBERSHIP COMMIT 2.00 X 0 0 0 COL WILSON A BUD SHATZER JR DIRECTOR, MEMBERSHIP COMMI 2.00 X 0 0 0 BRIG GEN JONATHAN D GEORGE DIRECTOR, MEMBERSHIP COMMI 2.00 X 0 0 0 RADM JANICE M HAMBY DIRECTOR, MEMBERSHIP COMMI 2.00 X 0 0 0 WILLIAM M MATZ DIRECTOR, FINANCE COMMITTE 2.00 X 0 0 0 BRADY M GRULER VICE PRES FOR MARKETING 35.00 X 142302 0 37318 MICHAEL J MEESE COO & SECRETARY 40.00 X 232810 0 21251 ROSS CUTLER ASSISTANT SECRETARY 40.00 X 95970 0 10328 JAMES M MALLEY EXEC VP & COO AAFMAA MBR & 40.00 X 301581 0 37608 RICHARD CONVY PRESIDENT,AAFMAA WEALTH MG 40.00 X 248886 0 34030 BARBARA HUMPHREY EXECUTIVE VP,AAFMAA WEALTH 40.00 X 212950 0 31093 STEPHEN MANNELL CFO, AAFMAA WEALTH MGT & T 40.00 X 218846 0 9848 GARY N AIKEN CHIEF ANALYST & RISK MANAG 35.00 X 142654 0 26905 A E LYNE BABIN MANAGER MEMBER SERVICES 40.00 X 124759 0 8059 CLIFTON E BROWN MANAGER, APPLICATIONS & UN 35.00 X 108011 0 13531 CHARLES B BETANCOURT CHIEF OPERATING OFFICER 40.00 X 118496 0 12240 TIANA FALLAVOLLITA ASSISTANT TO THE PRESIDENT 35.00 X 112871 0 15799 2529533 0 296377 12 0 1 0 METROSTAR SYSTEMS 1856 OLD RESTON AVE RESTON VA 20190 IT SERVICES 3124241 C-VIEW CORP 841 OAK BRIAR LANE OSPREY FL 34229 MARKETING SERVICES 523251 EDDY SQUARED LLC 23 WILLETT WAY GREENSBORO NC 27408 ACTURIAL SERVICES 172761 CULBERTSON COMPANY OF VIRGINIALLC 7000 TECH CIRCLE MANASSAS VA 20109 BUILDING REPAIRS & MAINTENANCE 167073 TAY-MOR INDUSTRIES LLC 4701 BELLEGROVE ROAD BALTIMORE MD 21225 BUILDING IMPROVEMENTS 110770 5 PREMIUM REVENUE 524113 55904667 55904667 MEMBERSHIP FEES FOR SERVICES 524113 57541 57541 18099 18099 55980307 59215526 59215526 7671950 3882510 3789440 3789440 3789440 17949487 16983425 2768123 966062 -2768123 -1802061 -1802061 CONSIDERATION FOR SUPPLEMENTAL CO 524113 858474 858474 INVESTMENT MANAGEMENT INCOME 524113 207020 207020 LOAN FEES 524113 17500 17500 11997 11997 1094991 118278203 118278203 0 0 56709314 1922742 4724799 411017 361993 435072 86907 80577 566363 1056547 99024 2503855 787701 42092 106572 2020585 188435 CHANGE IN RESERVES 31698876 EXCESS INTEREST CREDIT 7990192 BAD-DEBT ON LOANS, POLI 1996347 INVESTMENT EXPENSE 1647098 2090254 117526362 6362315 13433810 33328500 34142702 1361435 49179 150316 198089 68703349 6042088 51186234 62661261 756572607 766233965 243439793 266555106 9839418 11281503 1102240618 1154555615 4083183 2610603 2496126 2102220 49375883 65290433 55955192 70003256 X 0 0 0 0 1046285426 1084552359 1046285426 1084552359 1102240618 1154555615 X 751841 37515092 X X 0 1 X 1 0 24523564 24523564 26718749 2058153 24660596 14856268 3017305 11838963 2604768 966630 1638138 62661261 POLICY LOANS 27780886 C MORTGAGE LOANS INVEST 218335154 C CAP LOANS 20439066 C 266555106 DEATH BENEFITS PAYABLE 22059809 SETTLEMENT OPTIONS PAYABLE 25794353 PAYABLE FOR SECURITIES 17386948 TENANT SECURITY DEPOSITS 49323 65290433 X 111086880 3882510 3882510 107204370 11073833 11073833 118278203 110335037 3882510 3882510 106452527 11073835 11073835 117526362 PART X, LINE 2: ALTHOUGH THE ASSOCIATION IS TAX EXEMPT, IT STILL EVALUATES UNCERTAINTY IN INCOME TAX POSITIONS BASED ON A "MORE-LIKELY-THAN-NOT" RECOGNITION STANDARD. IF THAT THRESHOLD IS MET, THE TAX POSITION IS THEN MEASURED AT THE LARGEST AMOUNT THAT IS GREATER THAN 50% LIKELY OF BEING REALIZED UPON ULTIMATE SETTLEMENT. AS OF DECEMBER 31, 2014, THE ASSOCIATION HAS EVALUATED ITS MATERIAL TAX POSITIONS AND DETERMINED THAT NO ACCRUALS FOR UNCERTAIN TAX POSITIONS ARE REQUIRED ON THE ASSOCIATION'S FINANCIAL STATEMENTS. RETURNS FILED FOR TAX PERIODS ENDING AFTER DECEMBER 31, 2011, ARE OPEN TO EXAMINATION AND ANY CHANGES BY THE TAXING AUTHORITIES MAY AFFECT THE ASSOCIATION'S INCOME TAX LIABILITY. PART XI, LINE 2D - OTHER ADJUSTMENTS: RENTAL EXPENSES 3,882,510. PART XI, LINE 4B - OTHER ADJUSTMENTS: NET ADJUSTMENT FOR SUBSIDIARY INCOME AND EXPENSES 5,915,110. INVESTMENT EXPENSES 5,158,723. PART XII, LINE 2D - OTHER ADJUSTMENTS: RENTAL EXPENSES 3,882,510. PART XII, LINE 4B - OTHER ADJUSTMENTS: NET ADJUSTMENT FOR SUBSIDIARY INCOME AND EXPENSES 5,915,112. INVESTMENT EXPENSES 5,158,723. X X 0 0 0 MAJ WALTER R LINCOLN PRESIDENT, TREASURER 379397 0 90000 0 0 0 26000 0 12367 0 507764 0 0 0 BRADY M GRULER VICE PRES FOR MARKETING 139252 0 3050 0 0 0 14875 0 22443 0 179620 0 0 0 MICHAEL J MEESE COO & SECRETARY 229860 0 2950 0 0 0 16440 0 4811 0 254061 0 0 0 JAMES M MALLEY EXEC VP & COO AAFMAA MBR & 201581 0 100000 0 0 0 11700 0 25908 0 339189 0 0 0 RICHARD CONVY PRESIDENT,AAFMAA WEALTH MG 228886 0 20000 0 0 0 11454 0 22576 0 282916 0 0 0 BARBARA HUMPHREY EXECUTIVE VP,AAFMAA WEALTH 202950 0 10000 0 0 0 9848 0 21245 0 244043 0 0 0 STEPHEN MANNELL CFO, AAFMAA WEALTH MGT & T 208846 0 10000 0 0 0 9848 0 0 0 228694 0 0 0 GARY N AIKEN CHIEF ANALYST & RISK MANAG 114104 0 28550 0 0 0 14776 0 12129 0 169559 0 0 0 FORM 990, PART VI, SECTION A, LINE 6 THE ORGANIZATION HAS MEMBERS. FORM 990, PART VI, SECTION A, LINE 7A THE AAFMAA CONSTITUTION SPECIFIES THAT THE MEMBERS OF THE BOARD OF DIRECTORS ARE ELECTED FROM AND BY THE MEMBERS OF THE ASSOCIATION AT THE ANNUAL MEETING, EACH OF WHOM ARE ELECTED FOR FOUR-YEAR TERMS (WITH ROUGHLY ONE-FOURTH OF THE DIRECTORS BEING ELECTED EACH YEAR). BETWEEN ANNUAL MEETINGS, THE AAFMAA CONSTITUTION SPECIFIES THAT ANY VACANCY MAY BE FILLED BY A MAJORITY VOTE OF THE BOARD. ANY PERSON SO APPOINTED BY THE BOARD WOULD ONLY SERVE UNTIL THE NEXT ANNUAL MEETING, UNLESS HE OR SHE IS ELECTED BY THE MEMBERS AT THAT MEETING. IN PRACTICE, SUGGESTIONS FOR MEMBERS OF THE BOARD CAN COME FROM ANY MEMBER. THEY ARE CONSIDERED BY A NOMINATING COMMITTEE, CONSISTING OF MEMBERS, WHO WOULD THEN NOMINATE PERSONS TO BE VOTED UPON BY THE ENTIRE MEMBERSHIP AT THE ANNUAL MEETING (OR BY PROXY). FORM 990, PART VI, SECTION A, LINE 7B THE AAFMAA CONSTITUTION SPECIFIES THAT THE AFFAIRS OF THE ASSOCIATION SHALL BE MANAGED BY A BOARD OF ELEVEN OR MORE DIRECTORS, WHICH MEETS REGULARLY BOTH AS A BOARD IN ITS ENTIRETY AND IN SPECIFIC COMMITTEES, CURRENTLY THE MEMBERSHIP AND FINANCE COMMITTEES. THOSE COMMITTEES AND THE BOARD AS A WHOLE RECEIVE REPORTS AND MAKE DECISIONS ON BEHALF OF THE MEMBERS. THESE REPORTS AND DECISIONS ARE CONTEMPORANEOUSLY DOCUMENTED BY BOTH THE BOARD OF DIRECTORS AND THE COMMITTEES. DUTIES AND POWERS OF THE BOARD OF DIRECTORS AND COMMITTEES ARE SPECIFIED IN THE CONSTITUTION. THE AAFMAA CONSTITUTION CAN ONLY BE ALTERED OR AMENDED BY A TWO-THIRDS VOTE OF THE MEMBERS PRESENT OR PROPERLY REPRESENTED BY PROXY. SO MEMBERS APPROVE ANY DECISION OF THE ORGANIZATION THAT WOULD CONSTITUTE A CHANGE TO THE CONSTITUTION AND IT DELEGATES OVERSIGHT AUTHORITY FOR OTHER DECISIONS TO THE BOARD, WHICH IS ELECTED BY THE MEMBERS. FORM 990, PART VI, SECTION B, LINE 11 THE AAFMAA CONTROLLER, ASSISTANT TO THE PRESIDENT, AND THE PRESIDENT REVIEW THE FORM 990 BEFORE IT IS FILED. FORM 990, PART VI, SECTION B, LINE 12C AAFMAA MAINTAINS A CONFLICT OF INTEREST STANDARD AND POLICY FOR DIRECTORS, CONSISTENT WITH THE VIRGINIA NONSTOCK CORPORATION ACT. TO RETAIN THEIR LIABILITY PROTECTION AND INDEMNIFICATION, DIRECTORS MAY NOT PARTICIPATE IN A "CONFLICT OF INTEREST TRANSACTION" AS A "NON-DISINTERESTED DIRECTOR". ANY DIRECTOR WHO BECOMES NON-DISINTERESTED MUST ADVISE THE OTHER DIRECTORS THAT HE OR SHE IS NON-DISINTERESTED WITH RESPECT TO THE APPLICABLE MATTER AND RECUSE HIMSELF OR HERSELF FROM VOTING IN ANY BOARD OR COMMITTEE MEETING ON ANY ACTION REGARDING AAFMAA AND THE APPLICABLE MATTER. THIS POLICY IS PROVIDED TO DIRECTORS AT EVERY JUNE BOARD MEETING THROUGH A MEMORANDUM FROM AAFMAA'S GENERAL COUNSEL. WITHIN THE MEMORANDUM THE GENERAL COUNSEL PROVIDES SPECIFIC GUIDANCE ON THE POLICY SO THAT DIRECTORS CAN RELY ON IT AS LEGAL ADVICE. FORM 990, PART VI, SECTION B, LINE 15A AAFMAA RETAINED AN INDEPENDENT COMPENSATION CONSULTANT TO REVIEW THE COMPENSATION OF THE PRESIDENT AND TREASURER AND COMPARE IT TO COMPENSATION SURVEY DATA FROM PARALLEL POSITIONS IN OTHER SIMILAR SIZE ASSOCIATIONS. THE PRESIDENT AND TREASURER'S SALARY FOLLOWS A METHOD ESTABLISHED SPECIFICALLY FOR THIS POSITION. IT IS REVIEWED AND APPROVED ANNUALLY BY THE CHAIRMAN OF THE BOARD. FOR ALL OTHER EMPLOYEES, THE PROCESS INCLUDES ANNUAL, WRITTEN REVIEWS AND PAY INCREASES DEPENDING UPON PERFORMANCE APPRAISALS. PAY INCREASES ARE WITHIN RANGES INITIALLY ESTABLISHED BY EXTERNAL COMPENSATION CONSULTANTS. RANGES ARE UPDATED ANNUALLY FOR INFLATION BUT NOT ANNUALLY FOR COMPARABILITY. RATINGS ARE COMPLETED CONTEMPORANEOUSLY AND FILED IN INDIVIDUAL PERSONNEL RECORDS. THIS PROCESS APPLIES TO ALL, NOT JUST OFFICERS OR KEY EMPLOYEES. FORM 990, PART VI, SECTION C, LINE 19 A COPY OF THE CONSTITUTION IS GIVEN TO EACH MEMBER WHEN HE/SHE JOINS THE ASSOCIATION. ANNUAL REPORT INCLUDING AUDITED FINANCIAL INFORMATION IS SENT TO EACH MEMBER EACH YEAR. THE IRS FORM 990 IS PROVIDED TO THE PUBLIC UPON REQUEST IN ACCORDANCE WITH THE 1996 TAXPAYERS BILL OF RIGHTS. FORM 990, PART XI, LINE 9: INSURANCE & OTHER RESERVES INCREASES 34,721,401. INTEREST MAINTENANCE RESERVE INCREASE -3,214,672. CHANGE IN UNREALIZED DEPRECIATION OF EQUITY SECURITIES 8,951,986. INCREASE IN NON-ADMITTED ASSETS -3,055,832. INCREASE IN TREASURY INFLATION-PROTECTED SECURITIES (TIPS) 112,209. FORM 990, PART XII, LINE 2C: THE PROCESS HAS NOT CHANGED FROM THE PRIOR YEAR. AP RESTON CAMPUS LLC 1856 OLD RESTON AVENUE RESTON VA 20190 264249351 REAL ESTATE VA 298308 21239237 AAFMAA MEMBER AND SURVIVOR BENEFITS LLC 1850 OLD RESTON AVENUE RESTON VA 20190 270728455 COUNSELING VA 212292 -193145 AAFMAA WEALTH MANAGEMENT & TRUST LLC 639 EXECUTIVE PLACE STE 202 FAYETTEVILLE NC 28305 460886762 WEALTH MANAGEMENT VA -1658118 7383326 AP FAYETTEVILLE EXECUTIVE LLC 1856 OLD RESTON AVENUE STE 300W RESTON VA 20190 800857637 REAL ESTATE VA -23751 4333838 AP ANNAPOLIS ADMIRAL LLC 1856 OLD RESTON AVENUE STE 300W RESTON VA 20190 364738654 REAL ESTATE VA 823526 22227653 AP PALM DESERT VILLAGE LLC 1856 OLD RESTON AVENUE STE 300W RESTON VA 20190 462529759 REAL ESTATE VA -260945 7200222 AAFMAA PROPERTY LLC 1856 OLD RESTON AVENUE STE 300W RESTON VA 20190 900927867 REAL ESTATE VA -285178 62951915 AP PALM DESERT CERRITO LLC 1856 OLD RESTON AVENUE STE 300W RESTON VA 20190 465078635 REAL ESTATE VA 73832 4425748 AP PALM DESERT MONTANAS LLC 1856 OLD RESTON AVENUE STE 300W RESTON VA 20190 465088283 REAL ESTATE VA 31989 4045749