Navy flying clubs management control systems and performance measures
Knepel, Aaron R.
Euske, Kenneth J.
Cuskey, Jeffrey R.
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The Monterey Navy Flying Club has undergone tremendous change in the last decade by sustaining a painful downsizing due to the closure of Fort Ord and the substantial reduction in number of members, flight hours, aircraft, and staff. During the peak period when Fort Ord was open the volume of members and flight hours allowed informal short-term planning to fulfill all the clubs financial needs. Additionally, the club had an ample supply of surplus military aircraft along with significant free parts support. Currently, the club has depleted its supply of free parts support and is now faced with the dilemma of whether or not to keep one T-34 in compliance with an expensive Airworthiness Directive. The clubs current financial control measures are do not provide insight into the financial health of the organization. MWR provides financial statements but there is currently no analysis of the statements. The focus has been on short-term thinking that has led to other Navy Flying Clubs disbanding and aircraft that are otherwise airworthy being grounded due to insufficient funds to overhaul components. Monterey Navy Flying Club has been living in the short-term management mode and is still struggling to settle into its new environment of fewer members and aircraft. Navy Flying Clubs need to start assessing their maintenance and aircraft replacement needs and budgeting accordingly. Today the clubs have no plans to pay for replacement aircraft when the current aircraft become unserviceable. Monterey Navy Flying Club's focus has remained short term throughout this turbulent period. They have data to analyze, but no method to do so. What is needed is to determine what financial measures can be used to provide an assessment of how the club is performing in the short, medium, and long run.
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