John Mahoney and Greg Ingram met with Treasurer Alex Bell on Saturday, October 20, 2007. The Treasurer's records and files are well organized. Her procedures for promptly paying bills and processing and acknowledging donations are clear. There is also a procedure for processing gifts of stock, and such gifts were received in the past year and handled appropri-ately.

The procedure for recording and transmitting “box” contributions by the Head of Meeting to the Treasurer continues to be satisfactory considering the current level of contributions. It provides adequate documentation and does not impose an undue burden on either the Head of Meeting or the Treasurer.

The Treasurer's book balances match those appearing on the statements of OBA Fed-eral S&L and Smith Barney, the two accounts maintained for operational and investment pur-poses. We reviewed the 14 large (over $1,000) transactions in detail and checked the original invoice, the record of the check, the compliance with the budget for the item, and that the invoice was properly filed. These checks constituted 70% of the Meeting's total annual expenses. We examined some of the other transactions for lesser amounts in detail, too.

Income for the fiscal year July 2006 through June 2007 was 109.8% of budgeted income. Expenses amounted to 95% of budgeted expenses, resulting in a surplus of $12,939. This compares with the surplus of $7,137 in the previous fiscal year. This year's situation was similar to that of last year. We note that the total income for each of the last five years has been in the $88,000 to $96,300 range which is remarkably consistent. The total expenses for each of the five years has been in the $83,400 to $89,820 range, which is even more consistent. The number of donors has decreased from 191 in 2004 to 172 in 2007. The percentage of local BFM members making donations has decreased from 77% in 2004 to 61% in 2007. In summary, fewer people are making larger donations.

Funds that had been invested in The Friends Extension Corporation, Calvert Foundation, and Certificates of Deposits from the City First Bank of DC have been transferred to the Smith Barney Money Market Fund. Additional funds are invested in Smith Barney Certificates of Deposits. The cost of these CDs is listed on the annual balance sheet. The Meeting maintains a checking account with OBA Federal.

The Meeting has a blanket fire (for personal property) and liability insurance obtained under the auspices of the BYM which appears quite adequate, with replacement value coverage and a cap of $3 million. BYM arranges favorable terms for insurance by member meetings. The annual premium of $735 has been paid.

The auditors expressed their willingness to be a resource to the Treasurer during the year if needed.

The Treasurer performs an extremely important, time-consuming service to the Meeting, and the Meeting should acknowledge the service with much appreciation.