ASSOCIATION of the UNITED STATES ARMY 2015 ANNUAL REPORT

Transcription

1 ASSOCIATION of the UNITED STATES ARMY 2015 ANNUAL REPORT

2 Table of Contents Letter from the President and CEO...3 Education...4 Professional Development...4 Publications...8 Digital & Social Media...10 Financials...11 Advocacy & Outreach...12 Government Affairs...12 Family Readiness...14 NCO & Soldier Programs...15 Membership & Chapters...16 Awards & Grants...18 Sustaining Members...20 Voice for the Army Support for the Soldier 2 Association of the United States Army 2015 Annual Report

3 Letter from the President and CEO Global events and domestic politics continued to challenge the Army in 2015, heightening the need for the Association of the U.S. Army to show its strong support for the combined Active, Army National Guard and Army Reserve. While a slight lifting of budgetary caps and a two-year reprieve from the threat of sequestration ended the year with some temporary stability in the Army s budget, resources remain limited and the force structure continues to shrink. While this is happening, ongoing operations and national security threats continue to place heavy demands on the Army and its leaders. This is not, unfortunately, a new problem, and it will continue into GEN Gordon R. Sullivan Since 2011, the beginning of the Army drawdown after what was thought to be an end to a decade of war in Iraq and Afghanistan, we ve seen those two nations are not yet secure, nor is the rest of the world. Russian aggression in Ukraine, the constant threats from North Korea, and the spread of the Islamic State militancy, has made the world an ever-more dangerous place, filled with turmoil and uncertainty. In terms of size, the Army finished 2015 with just over 1 million soldiers in the Total Force but expected to lose 27,000 Soldiers in It is not just soldiers who are being cut, as the Army has also detailed plans for the elimination of 13,000 federal civilian jobs over the next three years. Details of how these cuts will be dispersed across the globe sent shivers through Army communities that have been strong partners for our military. In terms of readiness, the Army remains constrained. Only about one-third of brigade combat teams are fully ready. Army Chief of Staff General Mark A. Milley has made clear that readiness is his top priority, but even with the highest level of support, the Army doesn t expect to meet the minimum requirement of having 70 percent of teams ready to fight before 2020 because of a combination of budget and infrastructure limitations and the continued press of ongoing deployments. On its own, the Army cannot create more money nor drop a cloak of peace over the globe but it can do what Soldiers always do best: be innovative. New tactics and strategy, training adaptive leaders, and encouraging leap-forward technology are methods adopted by the Army to expand the reach of its capabilities, whether responding to natural disasters, aggressive foes or ensuring peace. AUSA is here to help. As the professional association of the U.S. Army, we are committed to supporting the Army, its Soldiers and our nation. We believe the Army must be strong and fully resourced to keep our national security risks at acceptable levels. We believe in the All-Volunteer Force and in the Total Force, knowing this requires as strong a commitment from our nation as the commitment to selfless service that comes from our active, Guard and Reserve Soldiers and their families. We believe in supporting our defense industry partners, whose ideas and skill are needed to make certain a smaller Army doesn t mean a less-capable Army. Above all, we believe in the Army s leaders. Professional development of soldiers, from their first day in combat boots, is one of our highest priorities. As this annual report will show, your AUSA was very busy in 2015 working on behalf of the Army and Soldiers. I m proud of what we ve done. I hope you are too. Sincerely, GORDON R. SULLIVAN General, USA Retired Association of the United States Army 2015 Annual Report 3

4 EDUCATION Professional Development Overall, AUSA events went very well this year, meeting or exceeding expectations in most cases. The sponsorship program has been expanded to meet customer demand and increasing revenues for this market. Exhibit space at the AUSA Global Force Symposium nearly sold out, a clear sign this continues to be a viable event. The AUSA LANPAC Symposium turned a corner this year, exceeding all expectations as attendance nearly doubled. We expect this event will continue to grow in the coming years. The 2015 AUSA Annual Meeting and Exposition was a huge success once again, bringing the U.S. Army and defense industry together. More than 26,000 people from around the world attended our event, not far off our total from AUSA Annual Meeting Exhibit Floor Interest in exhibiting also remained strong, and we were able to fill most of the five exhibit halls at the Walter E. Washington Convention Center. In addition, AUSA offered a variety of new and returning programs to enhance this event. AUSA continued its partnership with the American Freedom Foundation to offer a veterans hiring event in Hall A. In addition to having the opportunity to network with potential employers, veterans had a chance to take part in workshops that focused on a variety of important topics relevant to reentering the workforce. Support for veterans at this year s Annual Meeting was also bolstered through a new Veterans Affairs Pavilion, which included seven organizations representing the Department of Veterans Affairs (VA). The pavilion provided an opportunity for U.S. military veterans to speak with representatives regarding their VA benefits package. AUSA again organized a Homeland Security Pavilion that included a number of Department of Homeland Security (DHS) organizations. The Pavilion provided an important opportunity for AUSA member and non-member organizations supporting the DHS mission to display their products and services. Small businesses, as defined by the Small Business Administration, were again given the opportunity to book space in the Small Business Pavilion without the requirement of having to initially join our Sustaining Membership Program. This continues to be a successful initiative. More than 65 companies signed to exhibit in the Small Business Pavilion. This overwhelming interest resulted in expanding the Pavilion several times to accommodate companies in Halls A and C. This was the second year we offered the Innovators Corner, an initiative providing productive interaction between the military and the developers of new concepts, technologies, and materials. Innovator s presentations on the exhibit floor are opening doors for collaboration and partnerships which will benefit the Army. This opens dialog between people and organizations to more rapidly develop and vet innovations for the military. Interest is robust for this venue and we believe that it can become another strong generator of value for all participants. Homeland Security Pavilion at the Annual Meeting Secretary of the Army John M. McHugh addresses the Congressional Staffers Breakfast This year s Congressional Staff Breakfast was one of the best attended congressional events in the Association s history, with General Sullivan hosting 700 attendees. More than 250 key congressional staff members were among the guests. The breakfast gives AUSA an opportunity to thank the congressional staff for their work in support of the Army s portion of the 4 Association of the United States Army 2015 Annual Report

5 EDUCATION president s budget, their support to Soldiers and families, and also allows us to broaden advocacy in Congress by further educating staff on current Army programs and initiatives. After the breakfast, many of the staff members toured the exhibit hall and met with key defense industry leaders and viewed the latest technology. The Military Family Forums showcased a series of topics pertinent to current issues impacting Army families. One highlight of the Family Forums was getting to know the new Army leadership and their spouses. A town hall meeting with senior Army leaders featured Secretary of the Army John McHugh; Chief of Staff of the Army, General Mark Milley; and Sergeant Major of the Army Daniel Dailey. This session was preceded by a very lively and informative Distinguished Spouses Panel with Hollyanne Milley, Holly Dailey, and the AUSA Family of the Year Award winning spouse, Stacie Pogoncheff. Additional forum topics focused on discussions on health and wellness and Soldier and family readiness. Perhaps our most anticipated forum this year was a combined effort between AUSA and the Soldier for Life program, titled Transitioning to Veteran or Retiree Status: What Spouses Need to Know, which brought together representatives from the Army Retirement Services, Soldier for Life, the VA, the Department of Labor, and Team Red, White, and Blue. Eleven forums were hosted by the Institute of Land Warfare: 10 traditional Contemporary Military Forums and one Contemporary Military Forum/Department of Homeland Security presentation. Also, there were three sessions in support of the Homeland Security event. Working alongside DHS and the U.S. Army, AUSA created breakout programming on border security and the interagency unity of effort; countering violent extremist threats to Army and DoD Personnel and facilities; and the importance of Mexico to homeland security. The distinguished panel participants at this year s forums included, among many others, HON Jeh C. Johnson, Secretary of Homeland Security; HON Katherine Hammack, Assistant Secretary of the Army for Installations, Energy and Environment; HON Heidi Shyu, Assistant Secretary of the Army for Acquisition, Logistics and Technology; GEN Robert B. Abrams, Commanding General, U.S. Army Forces Command; GEN Vincent K. Brooks, Commanding General, U.S. Army Pacific; LTG Robert B. Brown, Commanding General, U.S. Army Combined Arms Center; LTG Edward C. Cardon, Commanding General, U.S. Army Cyber Command; LTG Mary A. Legere, Deputy Chief of Staff/G-2; LTG H. R. McMaster, Jr., Deputy Commanding General, Futures/Director, Army Capabilities Integration Center, U.S. Army Training and Doctrine Command; LTG Kenneth E. Tovo, Commanding General, U.S. Army Special Operations Command; and CSM David S. Davenport, Sr., Command Sergeant Major, U.S. Army Training and Doctrine Command. Senior Leaders Town Hall Family Forum ILW Contemporary Military Forum Asia Pacific Rebalance Pacific Pathways and Beyond. AUSA Global Force Symposium and Expedition ILW also hosted presentations by the authors of three 2015 Land Warfare Papers, as well as presentations by nine AUSA Book Program authors. In 2015, the AUSA Global Force Symposium and Exposition (formerly the AUSA Winter Symposium) was held for a second time in Huntsville, Alabama, and for the first time with its new name. The AUSA Global Force Symposium continues to be a strong event that attracts a diverse field of attendees and exhibitors. More than 5,500 people from around the world joined us for the event, and our exhibit hall was nearly sold out. Planning for next year s event is ongoing, and enthusiasm remains high. Association of the United States Army 2015 Annual Report 5

6 EDUCATION During the 2015 Global Force Symposium, then-chief of Staff of the Army, General Odierno, worked in conjunction with AUSA to establish an industry-army luncheon. The luncheon was a special benefit for a select number of Sustaining Members and featured influential key leaders from AMC, ASA(ALT), and other commands. We intend to recommend it again in In May 2015, AUSA held the LANPAC Symposium and Exposition in Honolulu, Hawaii for the third time. This event garnered very positive support from the commanding general of United States Army Pacific and the Oahu community. The event experienced impressive growth across the board, including in exhibits, attendance, sponsorships, and international participation. The number of exhibits nearly doubled, increasing from 30 in 2014 to 52 in Attendance grew substantially, increasing from 750 people in 2014 to 1,250 in AUSA also received tremendous local support, including from the governor of Hawaii, who helped kick off the opening night reception. We continued to experience a good turnout from the Army and participation from industry increased substantially with 19 new exhibitors. Plans for the 2016 AUSA LANPAC Symposium are already underway, and we are confident interest in this event will continue to grow. AUSA LANPAC Symposium and Exposition In November, AUSA opened the doors to a fully redesigned and modernized conference center capable of hosting 200 guests. This impressive center will not only be home to our ILW Breakfast Series, the Hot Topic Seminars, and Lemnitzer/Rogers Lectures, but will also be a fully-staffed events venue available for rent. This will allow AUSA to reduce costs on our smaller events while also acting as a revenue source for years to come. Since the AUSA Conference & Event Center opened, we have hosted one Lemnitzer Lecture featuring author Emma Sky, two Hot Topics, and a number of external events. AUSA s one-day Hot Topics series expanded in 2015 in an effort to offer a greater variety of professional development opportunities focusing on key topics that impact both the military and our industry partners. These events, which include eminent speakers from both the military and the business/academic community, feature panelists addressing a variety of important issues and provide our customers with a unique opportunity to network with senior leaders from the Army, DoD, and Congress. Army Cyber Hot Topic at AUSA s new Conference and Event Center This year we focused on the following topics: Army Aviation Army Air and Missile Defense Army Installation Management Army Sustainment Army Networks Army Medical Army Cyber Army Contracts In 2016, we will increase the number of Hot Topics to nine, adding Army Power Projection for the first time. The international tradeshow program once again performed very well in Participation remained strong at IDEX in Abu Dhabi, UAE, and at IDEF in Istanbul, Turkey. At IDEX, the pavilion sold out about six months after launching in September Additional space was acquired and filled. The pavilion increased in size by 23% (over 2013) and included over 3,000 square meters of space, the largest at this event. In May, we returned to Istanbul for IDEF and our pavilion featured more than 1,000 square meters of space. This was similar to what we sold in 2013, but we are confident that interest still remains strong in this market. 6 Association of the United States Army 2015 Annual Report

7 EDUCATION Our 2016 international schedule will be very busy with events in three consecutive months April, May, and June. In April, we return to Kuala Lumpur, Malaysia for Defence Services Asia (DSA). AUSA participated in DSA over a decade ago and is ready to reengage in this market. In May, we return to Amman, Jordan for SOFEX, one of the premier international events that focuses on Special Operations. In June, we again participate in Eurosatory, in Paris, France. For the first time, we are working with Kallman Worldwide to help us sell the USA Security and Defense Pavilion exhibit space at the Paris event. Kallman Worldwide organizes defense pavilions around the world and has a large customer-base. Exhibit space in the pavilion is selling well and we are working to finalize the remaining exhibitors. The monthly ILW Breakfast series continues to draw significant interest from our Sustaining Members and sponsors. Chief of Staff of the Army, GEN Mark Milley, will kick off the 2016 series in January. It will be held in the Marriott Crystal Gateway Hotel. All other ILW Breakfasts are planned for AUSA s Conference and Events Center. Speakers Corner at the IDEX USA Security and Defense Pavilion The popular General Lyman L. Lemnitzer Lecture series, cosponsored by the Army Historical Foundation, continues to bring speakers to AUSA to discuss issues relevant to the Army and the defense community and often include presentations of authors recently published books. The General Bernard W. Rogers Strategic Issues Forum brings high-level speakers to AUSA Headquarters to discuss current security topics. AUSA/ILW continued its partnership with the U.S. Army Peacekeeping and Stability Operations Institute with a half-day symposium in September on The Future of Stability Operations. AUSA staff, senior fellows, and associates have also been incredibly active in speaking at and supporting a wide spectrum of outside events and institutions, including Army schools, installations, universities, ROTC programs, Soldier competitions, and local chapter events. As always, this has been an important component of sharing AUSA s expertise on Soldier and Army issues and helping to develop the profession of arms. The new AUSA Conference and Event Center opened in November Association of the United States Army 2015 Annual Report 7

8 EDUCATION Publications As part of our effort to enhance the professional development of Soldiers, educate the public about the role of the Army, and ensure that military and civilian leaders have the knowledge they need for decision-making, AUSA continues a robust publishing campaign across the full spectrum of our operations. Our publications bring together AUSA staff, senior fellows, Soldiers pursuing their professional military education and professional development, and experts in Army and national security issues to educate and inform readers about the role of AUSA, landpower, and our Army. ARMY Magazine continued in 2015 to explore topics central to the Army s future, looking at the impact of smaller budgets on readiness, training and weapons, and focusing on challenges in leadership and career options. Cutting a wide swath in topics, cover stories looked at such things as the declining weight of tanks, the importance of training for urban combat, and whether science and technology could create so-called supersoldiers. The 25th anniversary of the First Gulf War was marked by a look into how the war was fought and also what lessons were learned. The magazine also looked at World War II and reviewed leadership and strategic lessons that helped shape today s Army. A provocative story in September questioned whether cuts in the Army budget are funding Air Force and Navy modernization programs. A June cover story discussed leadership lessons that could be taught on the battlefields of Normandy, and an August story and photo essay had an insider s look at the heat, hazards, and wet boots resulting from attending Jungle School. ARMY also focused on what a smaller military means to the hundreds of communities where Soldiers are stationed, looking at their pleas to avoid troop reductions, and the Army s final decision on allocating a 40,000-Soldier cut. Many articles were aimed at junior officers, career enlisted members, and families with discussion about career management, leadership challenges, and coping with family separation. Every issue in 2015 included a compelling story about a Soldier, usually a non-commissioned officer, who had done something in their Army life that made them stand out above the crowd, sometimes just by doing their job and sometimes through a heroic act. ARMY continued to published several popular columnists, but added new voices like a female first lieutenant expressing her views on combat assignments for women, a staff sergeant suggesting doing away with set-length enlistment contracts, and Middle East expert Emma Sky writing about the fate of Iraq. These columns, plus contributions from long-time writers, retired GEN Frederick J. Kroesen ( Front & Center ); retired BG John S. Brown, a former Army Chief of Military History ( Historically Speaking ); retired LTG Daniel P. Bolger ( The Outpost ); and contributing writer Scott R. Gourley ( Soldier Armed ), provided fodder for a compelling collection of letters to the editor. Readers continued to be pleased. I ve been a member of AUSA since 1971, and it is rare that an issue of ARMY disappoints, one reader wrote to complement an article about leadership. Another, writing to praise GEN Kroesen s essays and the assortment of book reviews, said, Keep up the good work. A third, who said he d been reading ARMY since he was an ROTC cadet in 1967, The articles have always been enlightening and often very instructive. One reader, completing an article about whether the Army s culture needed to change, said, Kudos to ARMY magazine editors for having the courage to publish a blunt, outstanding, and what I m sure some see as a controversial article. 8 Association of the United States Army 2015 Annual Report

9 AUSA s Institute of Land Warfare Hot Topic Army aviation forum focused on the Army s approach to man, train and equip the current and future force in the context of worldwide operational commitments, the Aviation Restructure Initiative (ARI) and Force 2025 and beyond. Pictured above is an artist rendering of an AH-64E Apache helicopter with a Modernized Dayside Sensor Assembly. See aviation Hot Topic stories on Pages 17, 18, 19. EDUCATION AUSA News continued to provide comprehensive coverage of AUSA symposia, Hot Topic forums, and other events and insights into the Association s activities on Capitol Hill, articles about NCO and Soldier programs, family readiness, and stories on all aspects of America s Army. Each month, the AUSA News s Bill Box displays the legislation that AUSA is tracking and its potential impacts on the Army. The View from the Hill and Capitol Focus columns delve deeper into the legislative and budgetary issues concerning the Army. The NCO and Soldier Report, written by former SMA Kenneth Preston, covers outreach to AUSA chapters and Soldiers on installations throughout the Army. Family Readiness also contributes stories each month that focus on topics important to military families. This year AUSA News made an effort to expand coverage of AUSA events, running relevant stories leading up to our events and also publishing post-event wrap-ups containing detailed reporting on the topics discussed by panelists and speakers during the events. Society of National Association Publications Award Winning Newspaper VOLUME 38 NUMBER 6 FIFTY CENTS April 2015 Budget, Sequestration Stories 2, 6, 8, 15 Leon Panetta will Receive Marshall Medal 3 Special Report AUSA Congressional Directory 11, 12, 13, 14 Army Aviation Fully Committed in a Complex World to Winning Today, Tomorrow and in the Future Highlights from AUSA News this year include the Special Membership Report in the March issue, which featured coverage of AUSA s grassroots activities and articles by then- Army Chief of Staff GEN Raymond T. Odierno, and SMA Daniel Dailey; the October issue presented an article by MG Peggy Combs, commander of the U.S. Army Cadet Command and Fort Knox, which underlined the importance of the Reserve Officers Training Corps (ROTC) and called for alumni to celebrate the institution s 100th anniversary; as well as the November issue, which addressed the Annual Meeting in depth, including Secretary of Defense Ash Carter s speech and highlights of the meeting s contemporary military forums. AUSA s Institute of Land Warfare (ILW) Torchbearer Campaign was productive in 2015, with exciting new publications on key Army issues, including: Strategically Responsive Logistics: A Game-Changer ; The U.S. Army in Europe: Strategic Landpower in Action ; Rapid Equipping and the U.S. Army s Quick-Reaction Capability ; Enabling Reserve Component Readiness to Ensure National Security ; The U.S. Army s Expeditionary Mission Command Capability ; Installations: The Bedrock of America s Army ; The U.S. Army in Motion in the Pacific ; and Force 2025 and Beyond: The U.S. Army s Holistic Modernization Strategy. ILW continues to publish Defense Reports (e.g., Building Readiness to Sustain Global Responsiveness and Regional Engagement ), Land Warfare Papers (e.g., Integrating Landpower in the Indo Asia Pacific Through 2020: Analysis of a Theater Army Campaign Design ), Landpower Essays (e.g., Strategic Landpower in the 21st Century: A Conceptual Framework ), National Security Watches (e.g., Innovation and Invention: Equipping the Army for Current and Future Conflicts ), and the NCO Update (published four times a year). The edition of ILW s special report Profile of the U.S. Army the definitive primer of America s Army and its role in national defense is already being prepared for publication in summer The Book Program published nine books this year with publishing partners in the United States and the United Kingdom. Outside organizations granted permission to use ILW publications in 2015 include the Army War College, the Air Command and Staff College, the Command Staff Chaplain of the Illinois Army National Guard (for a presentation at the NATO Chaplains Operations Course), and the Korea Association of Military Studies (KAOMS) journal. Association of the United States Army 2015 Annual Report 9

10 EDUCATION Some of our other publications this year include the 2016 NCO Calendar Sergeant s Time: Fit and Ready featuring the SMA s current focus on individual fitness and readiness, a new edition of our annual Pre-Retirement Counseling Guide, a Family Readiness resource guide, a new legislative affairs pocket card that succinctly outlines legislative priorities for the year, along with the Association s resolutions. Digital & Social Media AUSA continued to expand its online presence through active social media postings, fresh Army-related news on the Association s website, and two very popular weekly s to members. The biggest impact was on Facebook, where three or four Army- and AUSA-related postings daily resulted in a 104 percent increase in followers with average posts reaching 17,000 people if there was just an article and 63,000 if there was a photo. Most followers were in the age group. Twitter proved to be an effective tool during the Annual Meeting and Exposition, when more than 6 million people saw posts with the hashtag #AUSA2015. OCTOBER 2015 PRE-RETIREMENT COUNSELING GUIDE Association of the United States Army Social media has raised online awareness of AUSA and also promotes information and announcements by steering people to the AUSA website where they can see the breadth of activities and programs. Two electronic newsletters, AUSA s Five Things and AUSA Bulletin, continued to be popular with AUSA members and gained steady advertising support. AUSA s Five Things, a Monday morning tip sheet for Army topics, has proven to be an effective way of promoting AUSA programs and meetings while also informing and entertaining members with tidbits of news. AUSA Bulletin, ed to members every Friday, has become an important way of delivering messages to members. Each edition includes a message from AUSA s leadership, usually on an important and timely topic, in addition to highlighting other activities, interesting news items, and upcoming events. A digital edition of ARMY magazine s Green Book was posted online for anyone to read. Additionally, an electronic version of ARMY magazine is available each month, with non-members able to read six hand-selected articles and to see the titles and summaries of articles available to members. A complete digital copy of the magazine is available to members by . AUSA enhanced its online tools for communicating with members of Congress and their staffs. We ve launched a new advocacy platform advocacy.ausa.org which, in addition to allowing us to mobilize our membership like never before, gives our members access to premium legislative news content, information on local officials, and the status of bills we are currently monitoring. Family Readiness also maintains its own Twitter, Instagram, and blog to more directly engage their constituents. All ILW research publications are available online. 10 Association of the United States Army 2015 Annual Report

11 FINANCIAL Financials REVENUE ($M) 28.5 The Association of the United States Army faced several challenges in These ranged from managing cost pressures to keep the Association competitive with others in the field and cost increases in our operating budget driven primarily by proffers to the Army. The Association continues to have a strong balance sheet. At December 31, 2015 the Association s total assets were $111M, total liabilities were $21.6M and total net assets were $89.4M. Our investment portfolio, $73.7M, represents 67% of the total assets as of December 31, Budget Actual STATEMENT OF ACTIVITIES The Association s total operating revenues exceeded the budgeted forecast by $0.9M and the Association s change in net assets from operating activities was $0.3M. Significant contributors to this gain were exhibits and sponsorships at the annual meeting coupled with an increased number of Hot Topics. EXPENSE ($M) Expenses during the year increased from the budgeted forecast by $0.6M, driven by donations to the Army as stated above. Realized gains from Association investments rose above the budgeted forecast by $2.0M. With our investment mix of 75% equities and 25% fixed income, the lion s share of the gain came from interest and dividends. Unrealized losses in our investment portfolio were $4.5M representing a 6% loss from a beginning year value of $76.3M. All reflective of the capital markets in general Budget Actual SUMMARY The Association of the United States Army s commitment to the Army and its Soldiers is unchanged, however the defense funding environment continues to provide a challenge. We continue with an Association-wide initiative to examine AUSA s blueprint for success in future years. REALIZED INVESTMENT GAINS ($M) 3.3 Budget 1.3 Actual 2015 Association of the United States Army 2015 Annual Report 11

12 ADVOCACY & OUTREACH Government Affairs 2015 was an active year for the Government Affairs team. We not only welcomed newly-elected members of the 114th Congress, but also welcomed a new director of Government Affairs, John Gifford. Gifford brings with him a profound knowledge of the Army through his 23 years of military service, as well as his role as the former director of Strategic Planning at General Dynamics Corporate Headquarters. In an atmosphere of change and reform on Capitol Hill, General Sullivan weighed in on many issues important to the Army and our members. He sent letters and contacted key congressional leaders to discuss proposals outlined by the congressionally-mandated Military Compensation and Retirement Modernization Commission in their final report released in January. He also testified before the National Commission on the Future of the Army, a congressionally-mandated commission charged with conducting a comprehensive study of the roles and structure of the Army. AUSA s Vice President for Education, LTG Guy C. Swan, USA Ret., submitted testimony to the Joint House Senate Veterans Affairs Committee. We strongly supported preservation of dual eligibility of uniformed services retirees for VA and DoD health care systems. Along with many other issues, AUSA continues to support legislation that would remove the dollarfor-dollar offset in military retired pay for any amount of VA disability compensation, not just for those with 50 percent or greater. The Government Affairs team maintained our visibility on Capitol Hill through meetings with members of Congress and professional staff members on the defense oversight committees. We also strengthened our relationships with the Army and the DoD to ensure our mutual objectives are in the best interests of the Army and its Soldier. Several of the goals outlined in our Resolutions were achieved either totally or partially by congressional legislation. While there is still much work to be done, we can report some success toward reaching our goals. AUSA and its leadership, who have been committed to ending sequestration since its inception in 2011, are very pleased that Congress passed the Bipartisan Budget Act of The legislation will provide the Army with budget stability for Fiscal Years 2016 and 2017 at funding levels above the 2011 Budget Control Act. Sequestration, with its indiscriminate, disproportionate reductions put the nation s defense posture at serious risk. It deprives defense leaders of the funding certainty and the financial flexibility to properly structure, fund, and maintain our armed forces to meet evolving threats. Sequestration will return in Fiscal Year 2018 if the law is not changed. AUSA will continue to strongly advocate for its repeal. Congress provided funding for the Army to develop and field equipment to enhance Soldier survivability and combat effectiveness by approving investments in the development of lethality upgrades for Stryker combat vehicles, increased the survivability of Apache attack helicopters against new threats, and authorized full funding for procurement of the Joint Light Tactical Vehicle. 12 Association of the United States Army 2015 Annual Report

13 ADVOCACY & OUTREACH A big victory for AUSA was legislation Congress passed which changed the formula the government uses to pay physicians who treat Medicare/TRICARE beneficiaries. It also replaced the current reimbursement schedule with payment increases for doctors for the next five years and combined existing payment incentive programs into a new Merit-Based Incentive Payment System while creating other alternative payment models. Once again AUSA prevailed in the fight to limit increases in TRICARE fees and deductibles to no more than the annual pay or COLA increase and to maintain the TRICARE for Life program without enrollment fees. AUSA fought hard to protect and enhance commissary and exchange benefits. Congress responded by rejecting a proposal to reduce the commissary subsidy and reduce store hours by adding $281.2 million to continue the current policy and require a budget neutral plan to hold the annual subsidy at the current level of $1.4 billion. GEN Gordon Sullivan, USA Ret. and CSA GEN Mark Milley at the Congressional Staffers Breakfast To further AUSA s support for the Army, several opinion columns penned by General Sullivan were published in defense-related publications in In January, Breaking Defense published one of his op-ed columns complaining that sequestration is disruptive and has hurt the Army. Senior Army leaders have warned it is almost impossible to make any major strategic decision when the amount of money available remains unknown and warned that sequestration in 2016 would almost guarantee that active-duty strength would drop to 420,000 Soldiers, he cautioned. Congress ultimately acted, preventing sequestration in 2015 and In April, The Hill newspaper published a column in which General Sullivan warned force reductions were a mistake. It becomes more obvious every day that it was a terrible miscalculation three years ago to decide our national security needs could be met with a smaller Army. Every day we don t reverse course increases our strategic risk because everywhere you look, the world is unsafe, he wrote in the column, titled Unprecedented Uncertainty is the Army s Biggest Challenge. A May column in Defense One focuses on steps the Army needed to take to respond to Russian Aggression. In an October column, titled Seven Things Our Army Needs, Right Now, General Sullivan wrote, in an unpredictable world, we don t need any doubt of the Army s ability to quickly, forcefully, and decisively respond to missions, large or small, on any domain. As we flounder, we risk losing the support of our Soldiers and their families. Our allies will continue to lose confidence in our role as a global leader. Potential adversaries will see weakness. In recent months, we ve begun to formulate a new legislative strategy focusing in on the fight for the Fiscal Year 2017 authorization and appropriations process. To that end, Government Affairs has been coordinating with the Army, congressional contacts, and like-minded associations to enhance our presence on Capitol Hill. Meanwhile, our directorate plans to be much more involved at the chapter level in the new year. We have developed a defense environment overview for presentation to the chapters. Our mission with our new legislative strategy and added emphasis on leveraging chapters is to bolster our grassroots lobbying efforts, which will ensure our voice continues to be heard on Capitol Hill. Voice for the Army Support for the Soldier. Association of the United States Army 2015 Annual Report 13

14 ADVOCACY & OUTREACH Family Readiness AUSA Family Readiness continued its focus on outreach to Army families by providing three onsite Military Family Forums in Their purpose was to reach Army families at the local level and thereby address issues and concerns specific to the communities families. Three Army installations were selected based on the level of interest from their local AUSA chapters and the Army community service director: Military Family Forum: Education for the Entire Family Joint Base Lewis McChord 11 March 2015 Military Family Forum: Be Your Own Ambassador: Making Volunteering Work for You Fort Bliss, TX 15 April 2015 Military Family Forum: Military Spouse Employment: What You Need to Know Fort Riley, KS 3 June 2015 Family Forum Distinguished Spouse Panel In addition to the onsite forums, AUSA once again hosted Army moms at a Mother s Day brunch, sponsored and cohosted by the Washington DC Marriott Marquis. More than 450 Army family members joined AUSA and Walk-About Elmo for a morning of fun celebrating Army moms. Featured speakers included GEN Carter Ham, USA Ret., and CSM Tracey E. Anbiya, Office of the Assistant Secretary of the Army Installations, Energy and Environment. In an effort to build on professional relationships, AUSA partnered with La Quinta Inns and the Center for Brain Health at the University of Texas at Dallas to offer a two-day workshop on brain enhancement training. Twenty military spouses, to include military caregivers, participated in the training. The training was so well received that we hope to offer it again in AUSA Military Mother s Day Brunch AUSA s Military Spouse Advisory Group was also busy this year representing AUSA Family Readiness at various region meetings and conferences. Each spouse advisor also attended three virtual advisory group meetings and attended the AUSA Annual Meeting. They participated in all Family Readiness Directorate events and forums and volunteered at the Family Readiness kiosk in the AUSA pavilion. Most importantly, they mingled with conference attendees, spreading the word about AUSA and the benefits of membership. 14 Association of the United States Army 2015 Annual Report

15 ADVOCACY & OUTREACH NCO & Soldier Programs AUSA s Noncommissioned Officer and Soldier Programs Directorate aggressively engaged Army and chapter leadership across the country and around the world. The increase in engagement opportunities was substantial in the areas of social networking, publications, conferences, and travel. Much of the demand can be attributed to the Army s transition to a smaller force, the unpredictability on fiscal demands, and the concerns over global security in the wake of multiple dynamic threats. Sustained support to chapter leaders and Soldier-focused organizations helped them attain their goals and complete their missions. This was accomplished on a smaller budget than 2014 and by leveraging outside resources for support whenever possible. The organization also developed a strong relationship with SMA Daniel A. Dailey, which greatly contributed to our efforts in support of Soldiers and had a significant impact on our successful cooperation surrounding the Best Warrior Competition and the 2015 Annual Meeting. SMA Daniel Dailey announces the winners of the 2015 Best Warrior Competition at the 2015 AUSA Annual Meeting and Exposition Outreach played a key role in linking senior Army leaders and chapter representatives to help strengthen, and in some places reconnect and develop, supportive relationships. The pace and tempo of organizational deployments and leadership turnover during the past 14 years has weakened, and in some cases severed, the bonds of support between many organizational leaders and their supporting local chapters. Outreach has focused on education and informing organizational leaders about AUSA, the role of volunteers in their local chapter, and providing ideas on how to use chapter volunteers to support their command, Soldiers, and families. This year we visited over 25 installations and their nearby chapters in support of NCO and Soldier Program s activities. Outreach also included participation in the Senior Leader Military Science Review Panel, and also support to the Chief of Staff of the Army s Retired Soldier Council and the Defense Advisory Committee on Women in the Service. Outreach included not only travel, but administrative recognition from the AUSA National Headquarters for the Best Warrior (NCO and Soldier of the Year) Competition; Best Ranger; Best Sniper; Best Military Police Team; Active, Guard, and Reserve Recruiters; Best Drill Sergeants; Sullivan Cup (Best Tank Crew); Best Medic; and Best Ordinance Team Competitions. For the first time, both the United States Army Career Counselor of the Year and the United States Army Reserve Component Career Counselor of the Year were recognized formally at the Eisenhower Luncheon during the 2015 AUSA Annual Meeting. Melissa Strader, AUSA Northern New York Fort Drum Chapter volunteer of the year and SMA Kenneth Preston, USA Ret. Our future plans include increasing outreach by providing more NCO and Soldier-focused articles for AUSA publications and social media. The intent is to provide readers with a broader sphere of relevant information for all levels of experience and interest. Another of our priorities for 2016 will be building relationships between organizational and chapter leaders, as well as continuing our engagement and support for SMA Dailey. Our new efforts for 2016 will include support for the first International Training and Leader Development symposium to be held at Fort Bliss, TX. Association of the United States Army 2015 Annual Report 15

16 MEMBERSHIP & CHAPTERS Membership & Chapters INDIVIDUAL MEMBERSHIP January December 2015 Figure 1 shows the monthly membership strength. Factors contributing to the continued decline and most often cited by the chapters include the continued uncertainty within the senior noncommissioned officer and officer ranks of Army regarding career opportunities and the trickledown effect of that on Soldiers; the impact in the civilian sector of reduced defense spending; and the difficulty (real or perceived) in reaching Soldiers imposed by an overly cautious military legal system. Figure 2 is a snapshot of the membership categories at the end of the calendar year. 68,560 JAN 15 Figure 1. Membership January December ,940 DEC 15 We conducted the second Flash Goal Campaign that ran from December 2014 through March The intent of the campaign was to encourage all chapters to not only renew their expiring memberships, but also to make a small but meaningful gain. The results were an improvement over the 2014 campaign with 47 chapters attaining their flash goal; up from 29 the previous year. Changing the campaign s timing to a period where fewer members were due to renew was the primary reason for the increase. In conjunction with the Army Ten Miler and the Annual Meeting, AUSA offered a special $10 membership rate. The intent was to target non-members who attend the Annual Meeting. Over 2,400 individuals joined at this special rate. As a result of this success, AUSA is examining its membership rate structure with an eye toward simplifying the join process. Under the President s Club Membership Incentive Program, AUSA National distributed $8,900 to 28 chapters. Under the Investment, Research and Development (IRAD) Program, a new incentive program based on chapters having a positive trend in their membership over the course of the operating year, 29 chapters shared $41,800. The intent of this program was to recognize chapters that had positive growth even though they may not have reached their goal. IRAD was further utilized for media buys (billboard, newspaper, and radio ads) around five installations: Fort Campbell, Fort Leonard Wood, Fort Riley - Central Kansas, Fort Bliss, and Fort Bragg. The chapters in these areas have all seen a positive trend in their memberships and reported greater brand recognition among meeting attendees. In 2015, Regional Activities and Industry Affairs continued to encourage Sustaining Member companies to donate back to AUSA unfilled designee spaces. These spaces were then allocated to the chapters to support their membership programs. Chapters gave many of the almost 2,300 spaces donated as of 31 December 2015 to ROTC cadets and junior enlisted Soldiers. TOTAL AUSA MEMBERSHIP As of 31 December ,850 OFCR 37% NCO 30% JR ENL 33% Active Component Civilians CORPORATE MEMBERSHIP January December ,434 JAN 15 23,449 CORP MBR 26% SUST MBR 38% OTHER 36% 17,724 OFCR 69% NCO 31% Retired 1,782 Army Reserve 1,562 National Guard TOTAL: 62, ,271 3,155 DEC 15 Figure 3. Corporate Membership, January December 2015 AGR Gov t Civilians 1,306 Cadet Figure 2. AUSA Membership on 31 December ,155 Corporate Companies 16 Association of the United States Army 2015 Annual Report

17 MEMBERSHIP & CHAPTERS Figure 3 shows corporate membership from January 2015 to December Chapters continue to report that the reason most often given by the corporate members for not renewing, like that for individual memberships, has been reduced defense spending and companies either closing or moving into other market segments. In Operating Year AUSA National distributed a total of $2,325 to eight chapters under the Corporate Member Incentive Program. Given the difficulties chapters have had in recruiting and retaining members, the increasing amount of time devoted to these efforts at the expense of programs, and the complex membership rate structure, it was clear changes needed to be made to stem the drop in individual memberships. Building on the successful response to the Annual Meeting special membership rate; 2016 membership rates have been set at E1-E4 and Cadets: $10 for 2 years; all others: $30 for 2 years or $50 for 5 years; Life: $300. Chapter Leader Development Training at AUSA Headquarters These rates will see a reduction in the shared dues distributed to chapters but should be offset by the increase in membership. TRAINING Training chapter presidents and leaders is a continuing priority in our effort to create a future of stronger, more supportive chapters. In July we trained 26 new chapter presidents. With the AUSA conference room space being renovated, we had originally planned to move the Chapter Leader Development Training into 2016, but with IRAD funding we conducted training in August and November 2015 for 10 chapter officers each. NJ AUSA Young Professional Networking event YOUNG PROFESSIONALS SUB COMMITTEE The Young Professionals subcommittee of the Chapter Operations Committee conducted its initial meeting as a separate advisory board committee at the 2015 Annual Meeting. Under the direction of its staff liaison, Charles Schellpeper, the subcommittee is focusing on advising AUSA National and the chapters on programs that will increase the involvement of the younger generation (e.g. mentoring, skill building, and transition assistance) and developing a network for sharing best practices. All of this is geared toward expanding the number of younger members who will be encouraged to add relevance and membership to the Association. At the suggestion of Fourth Region to provide the younger generation greater value for their membership, AUSA is working on a web-based Membership Discount Coupon Program. We will undertake a pilot test of this program for Fourth Region in conjunction with the roll out of the new AUSA website. BEST CHAPTERS The following chapters received Best Chapter awards at the 2015 Annual Meeting: Redstone-Huntsville; Hawaii; Captain Meriwether Lewis; North Texas-Audie Murphy; Major General Harry Greene, Aberdeen; and Kuwait. Kuwait also won the Best Overseas Chapter award. Association of the United States Army 2015 Annual Report 17

18 AWARDS & GRANTS Grassroots Support The energy of the volunteers in the Association s 119 chapters remained focused on the programs in support of deployed Soldiers, civilians, and their families. While chapters continue to sponsor arrival and departure ceremonies, support Family Readiness Groups, organize holiday packages, and raise funds for memorials, AUSA National has begun to focus its attention on an Army returned from war, with many Soldiers and families facing a transition. AUSA Capital District of New York Chapter Chapters had active programs to support the families of wounded or deceased Soldiers with grants to cover transportation, lodging, and other incidental expenses. Chapters have been helping spread the word about this program through their communities and business contacts, letting companies know that there are fully capable disabled Soldiers looking for employment once they leave military service and how the company can enroll in this program. Significant activities amongst the chapters in 2015 were the North Texas-Audie Murphy Chapter s Passing the Torch program to create battlefield leadership experiences for ROTC cadets (featured in the June 2015 ARMY Magazine); Redstone Huntsville Chapter s young professional networking program; First Region s young professional networking and transition assistance programs; MG Harry Greene, Aberdeen Chapter s support to the Fallen Star Memorial and the Veterans Transition Initiative; and the Arizona Territorial Chapter s Healing Heroes program, to provide a weekend getaway at a ranch for Wounded Warriors and their families. In addition to these programs, chapters continue to support a wide array of local programs for Soldiers, civilian employees, and families ranging from scholarships to recognition for outstanding performance. During calendar year 2014 (as reported in their March 2015 Financial Statements), the chapters raised and distributed over $1,500,000 in support of Soldiers, families, units, and community-level programs a slight increase over the previous year. The majority of the contributions in 2015 continued to go toward scholarships ($153,000), as well as support to Wounded Warriors, Family Support Group grants, and sponsorship of unit-level events. These figures do not include the hundreds of thousands of dollars of in-kind donations and gifts the chapters received and passed along to units and families. AUSA North Texas Audie Murphy Chapter Passing the Torch Program at Normandy, France AUSA Fort Leonard Wood Chapter Wounded Warrior Fund Check AUSA NATIONAL AWARDS General George Catlett Marshall Medal HON Leon E. Panetta General Creighton W. Abrams Medal GEN William F. Kernan, USA Ret. Major General Anthony J. Drexel Biddle Medal Felicia A. Campbell Sergeant Major of the Army William G. Bainbridge Medal SGM David G. Martinez Lieutenant General Raymond S. McLain Medal BG James P. Combs Major General James Earl Rudder Medal MG James M. Collins, Jr. Joseph P. Cribbins Medal Annette G. Lozen John W. Dixon Medal Wesley G. Bush Northrop Grumman Corporation AUSA Volunteer Family of the Year Award The SGT Blagoy Pogoncheff Family AUSA National Service Award The Gary Sinise Foundation 18 Association of the United States Army 2015 Annual Report

19 AWARDS & GRANTS The Walter T. Kerwin Jr. Award for Readiness Presented in conjunction with the National Guard Association of the United States and the Reserve Officers Association 1457th Engineer Battalion U.S. Army National Guard 983rd Engineer Battalion U.S. Army Reserve ADDITIONAL AWARDS PRESENTED AT THE 2015 AUSA ANNUAL MEETING Stephen Ailes Award Army Drill Sergeant of the Year SSG Jacob Miller Ralph E. Haines, Jr. Award Army Reserve Drill Sergeant of the Year SSG Mark Mercer Finnis D. McCleery Award Army Advanced Individual Training Platoon Sergeant of the Year SFC Samuel Enriquez HON Leon E. Panetta, George Catlett Marshall Medal Recipient General Maxwell Thurman Recruiting Excellence Award SSG Jared S. Bullock U.S. Army SFC Matthew M. Jasper U.S. Army National Guard SFC Joshua J. Hernandez U.S. Army Reserve The United States Army Career Counselor of the Year SFC Armando R. Delgado GEN William Buck F. Kernan, USA Ret., receives the General Creighton W. Abrams Medal The United States Army Reserve Component Career Counselor of the Year SFC Donna L. Schwan SGM Dawn Kilpatrick Memorial AUSA Scholarship Award SFC Sadie Routzahn The United States Army s Noncommissioned Officer of the Year SSG Andrew Fink The United States Army s Soldier of the Year SPC Jared R. Tansley SGM Larry L. Strickland Educational Leadership Award Senior Noncommissioned Officer 1SGT Roger Hankins SGM Larry L. Strickland Educational Leadership Award Mid-grade Noncommissioned Officer SFC Stuart Sword Association of the United States Army 2015 Annual Report 19