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Inspiring Army-wide and nationwide interest in Army aviation careers.
Motivating Army aviation personnel to increase their knowledge, techniques, and skills.
Conducting meetings, seminars, symposiums, exhibitions, air meets, etc.
Providing special types of group plans of individual benefit to the membership." 11
The cost here is for industry (corporate) membership (Tab 4.8e).
30. Air Force Association
$2,200 of the amount in issue is the cost of an industrial associate affiliation covering, according to the invoice (Tab 4.9b):
6 Additional Service Units
54 Additional Magazine Sub-
The best explanation of this industrial affiliation is found in the invitation for such participation, a letter of 17 April 1953 (Tab 4.9e), in part as follows:
"After the Los Angeles Convention, members of industry encouraged us to set up a plan which would do away with special fund raising drives. This led to our Industrial Associate program, whereby companies affiliated with us on a non-membership basis. It is a program based on service rendered, rather than outright donations. These services, experience has proved, fill an important gap in the supplier-customer relationship; namely, exclusive up-to-date information on the structure and key personnel of the United States Air Force."
It is said in a brief (Tab 4.9a) that the Association's Associate Program was formed in 1952 to inform all associate members of the current and future programs and plans.
"Benefits to Air Force Associate members are:
Copies of Air Force Association publications.
Subscriptions to Air Force Magazine.
Announcements and invitations to all AFA conferences, conventions, and special events.
Five hundred dollars of the sum claimed appears only on an abbreviated record dated 18 February 1966 (tab 4.9f) as paid in connection with the Utah Wing of the Association but is inadequately supported (except the expenditure itself) or explained (Tr. 431, 432). There is no explanation at all for the balalnce of $32,00.
31. National Municipal League
This organization says of itself (Tab 4.10a) that it is a "citizens organization dedicated to the improvement of local, country and state government." The League method is practical, logical and effective. An emerging problem is identified. Outstanding authorities study the problem and propose a solution. This is tried out in key areas, refined by experience, then published in a model.
"Citizen leaders and organizations, as well as many
In response to a request for "financial support" (Tab 4.10b) Boeing's president sent a check for $100 with a letter as follows (Tab 4.10c):
"The Boeing Company is willing to continue its annual
Association of the U. S. Army
A brief of this organization is as follows (Tab 4.1la):
"The Association of the United States Army was founded
"The Association holds annual meetings for membership
The expenditure here is for the company's sustaining membership in the Association (Tab 4.11g).
The company argues that all of the expenditures at issued under this Dues Expense heading (with the exceptions hereinafter noted) are reimbursable under subparagraph (a) of ASPR 15-205.43 as costs or "memberships in trade, business, technical and professional organizations." In addition it argues alternatively that inasmuch as, incident to its membership in some of these organizations, it receives subscriptions to various magazines and other publications without additional charge, to that extent the costs are allowable under ASPR 15-205.43(b) as the "cost of subscriptions to trade, business, professional, or technical periodicals." This theory applies to items 23, Municipal League of Seattle and King County; 27, Navy League of the U.S.; 29, Army Aviation Association of America; 30, Air Force Association; 31, National Municipal League; and 32, Association of the U.S. Army.
Additionally it is claimed that the costs related to the Municipal League of Seattle and King County (item 23), Stanford University Business School (item 24), the Washington State International Trade Fair (item 25), and the $300 item under the Effective Citizens Organization (item 28) are allowable as ordinary business expense under ASPR 15-201 through 15-204. Costs related to the World Affairs Council of Seattle (item 26) are also claimed as ordinary business expense and not as costs of trade, business, technical and professional activity under ASPR 15-205.43.
Greater Seattle, Inc. (item 22) and the National Municipal League (item 31) are said to be like Chambers of Commerce and should be paid, it is argued, under the authority of Aeronca Manufacturing Corporation, ASBCA Nos. 3844 and 4015, 58-1 BCA par. 1724.
The company also claims the registration fees in the amount of $625 under item 28, Effective Citizens Organizations, under ASPR 15-205.43(c) as relating to meetings and conferences.
The company has a corporate headquarters Dues and Subscriptions Committee, which exercises jurisdiction over all expenditures for membership in trade, business, technical and professional organizations and related subscriptions to their publications (Tab 4.0; Br. p. 78). Contributions are charged to a separate account and not claimed as allowable costs under Government contracts (Tr. 334).
The Government would have us disallow the cost relating to the Navy League (item 27), Army Aviation Association of America (item 29), and Air Force Association (item 30) on the authority of the Defense Contract Audit Manual (above) and the costs related to Greater Seattle, Inc. (item 22), Municipal League of Seattle and King County (item 23), Washington State International Trade Fair (item 25), World Affairs Council of Seattle (item 26), Effective Citizens Organization (item 28), and National Municipal League (item 31) for the same reasons stated in that manual. The Government says the sums claimed as dues payments were infact contributions and the organizations were not of the type for which ASPR 15-205.41 [sic] recognizes dues payments as an allowable cost under Government contracts (Br. p. 36).
Of the payment to Stanford University (item 24) the Government says:
"The evidence of record (App. Rule 4, Tab 4.3b) clearly shows that appellant's cost of membership (dues) in the affiliate program of Stanford University Graduate School of Business was $1,000.00, not the $1,500.00 amount paid. Therefore, the $500.00 overage must be recognized as a contribution and unallowable under ASPR 15-205.8. The $1,000.00 membership fee must also be disallowed, unless the appellant has shown by the evidence of record that it did in fact participate in and receive some benefit from research or studies performed for it by and/or written reports supplied to it by the Stanford University Graduate School of Business."
(Br. p. 36)
We think the evidence does fairly meet this last stated "requirement."
Do you have any connection with values received
Well, we do, especially in this time period we're
Do you know whether or not Boeing receives any
Yes, they do. They do provide the affiliates with various research papers, the results of studies they make, and they are regularly sent to the receipients." (Tr. 338)
We also do not agree that $500 of the sum claimed must be disallowed as a contribution. It was not unreasonable for a company of this size to increase its payment to the University to $1,500 which was still well within the published range.
The nature and scope of Boeing's business and its corporate citizenship also justify the company's membership in the Municipal League of Seattle and King County (item 23), the World Affairs Council of Seattle (item 26), Effective Citizens Organization (item 28) and the National Municipal League (item 31).
The membership fees paid to the Municipal League of Seattle and King County, the membership subscription to the World Affairs Council of Seattle, all sums paid to the Effective Citizens organization and the payment to the National Municipal League are therefore, ordinary business expenses for this company and are reimbursable. So also is the payment made to the Washington State International Trade Fair. To Boeing this was necessary to the overall operation of its business in the State of Washington and we cannot gainsay its judgment.
Greater Seattle, Inc., is a trade or business organization and the $100 membership fee is allowable under ASPR 15-205.43(a). The $500 was a donation.