Armed Services Mutual Benefit Association

“Asmba is a membership-based association.”

“The board of governors are elected by the membership and all board of governors have to be members themselves.”

“The 990 is reviewed by management and the audit committee, then it is distributed to the board.”

“The board and management are all asked by letter each year to verify whether they have any conficts of interests.”

“For the association's president, the process includes all of these elements: (1) review and approval by the board of governors of the association; (2) use of data as to comparable compensation; and (3) contemporaneous documentation and recordkeeping. 1. Review and approval: the compensation of the president is reviewed and approved by the board of governors of the association during the closed session of the annual board meeting in june. Persons with conflicts of interest with respect to the compensation arrangement at issue are not involved in this review and approval. 2. Use of data as to comparable compensation: the compensation is reviewed and approved using data as to comparable compensation for similarly qualified persons in functionally comparable positions at similarly situated organizations. 3. Contemporaneous documentation and recordkeeping: there is contemporaneous documentation and recordkeeping with respect to the deliberations and decisions regarding the compensation arrangement. The president's compensation is determined by the board of governors during a closed session of the annual board meeting, but all other salaries for the association are determined by the president. The employees salaries are reviewed at least on an annual basis by the association president. The compensation is reviewed and approved by using comparable compensation for similarly qualified persons in functionally comparable positions in the nashville area. Cost of living adjustments (cola) are based on the higher of social security, cpi-u or the military pay increase. The approved document is signed by the asmba president and retained by the association for documentation.”

“The governing documents, conflict of interest policy and financial statements are available to the public by request.”

“Fasb 158 adjustment to funded status of pension plan -183,651. Fasb 157 equity adjustment for valuation of securities -478,633. Pension plan net periodic cost adjustment 102,975.”

“The oversight and selection process for the audit has not changed from the prior year.”

“Asmba star foundation, inc. ("foundation") was formed as a 501(c)(3) in april 2008. The foundation was funded by contributions of $250,000, $1,000,000, $285,000, $300,000, $300,000, $300,000, $40,000, $105,285 and $100,905 in 2008, 2009, 2010, 2011, 2012, 2013, 2014, 2017, and 2018 respectively, from armed services mutual benefit association ("asmba"). The employees and assets of asmba were used during the start-up of the foundation. No value has been assigned to the use of asmba employees and assets; however, any amounts involved are considered minimal.”