ANNUAL REPORT

2013 Annual Report
Overview
Friends of Barrón (FOB CANAM AC) is a community out-reach program dedicated to improving the educational environment for the children of our neighbors in Barrón, Sinaloa, Mexico. We offer matching funding for worthy school improvement projects in Barrón. Another important component of FOB CANAM AC is our academic scholarship programs for high school and university students in Barron. In 2013, we expanded the scholarship program to include employees of Estrella del Mar (EDM) and their families. 2013 was also the first year that we organized and sponsored dental and medical clinics for Barrón residents in cooperation with volunteer dentists, doctors and other health care professionals. Annual fundraisers are staged at EDM and include a charity golf tournament, a taco party and a silent auction. FOB CANAM AC derives most of its revenue from generous individual donations of EDM residents, their families and their friends. We routinely communicate with our donors and other interested parties through the Internet website http://www.FOBNews.org.

About Barrón
Barrón, Sinaloa is a small town located 30 minutes from the city of Mazatlán and 5 km from the community of Estrella del Mar. EDM is a luxurious, beachfront, residential community with over 500 hotel rooms/condos and a Robert Trent Jones Jr. 18 hole golf course. Many of the staff that work at Estrella del Mar live in Barrón so there has always been a close connection with the town and Estrella.

Barrón has about 400 families and 3,000 people. Approximately 100 people of that population work at Estrella del Mar. The majority of Barrón citizens earn their income from agriculture although some do commute into Mazatlan to work. There is a decided lack of services in Barrón; there is no doctor, no dentist and no pharmacy. The water tower pump is turned off at 7 am so the only water available during the day is that which is stored in rooftop or underground cisterns. Most streets are not paved and basic services are intermittent or unavailable.

There are a few amenities … there is a panadería, the bakery, cleverly disguised as a ranchette on the outskirts of town on the road down to the river. There are many small family stores, called abarrotes that sell some fruits and vegetables, canned goods, candy and snacks. Ana Isabel Cruz Solíz, FOB CANAM AC’s Barrón Student Liaison Official, runs one such store, “Chula’s”. There are two depósitos for beer purchases. There are even a few cantinas scattered about, although they are hard to find. There is a small Catholic Church, which offers mass at 7:00 a.m. on Sundays. Mass is in Spanish and lasts about an hour.

The land dispute between the ejiditarios of Barrón (the original cooperative farmers) and EDM management has been resolved. It is important to remember that the majority of the citizens of Barrón are not ejido members and therefore were not involved nor did they have any say in this dispute. They also did not receive any of the settlement money; only the 147 actual ejido members did.

FOB CANAM AC is primarily involved with kids and their schools. The pertinent fact is that many of the Barrón kids want to come back to Barrón to help their community. Traditionally, Mexican families are close knit and reside within a few blocks of their extended families. From reading our scholarship applicants’ essays, we know the majority wants to return to Barrón after they complete their education. We believe that a proper education will allow these future leaders of Barrón to make decisions that will benefit their community.

FOB CANAM AC Activities in the Schools
There are four levels of education in Barrón; Kindergarten, Primary School (Grades 1-6), Secondary School (Grades 7-9) and an Adult School. Barrón has no High School (Preparatory School, Grades 10-12). High School is not mandatory in Mexico so kids wanting to further their educations have to travel by local bus to Mazatlán or Villa Union where they pay increased tuition fees and buy their own books and uniforms. The FOB CANAM AC scholarship program has encouraged more students to continue their education.

The Barrón schools employ 3 principals, about 20 teachers and a few supporting staff. There are also a number of parent volunteers that assist with various tasks in and around the schools. The Barrón schools have a total enrollment of about 400 students aged 5 to 15 years. The adult school is staffed by volunteer teachers and has an enrollment of about 40 adult students

Kindergarten: Escuela Estella Ortíz de Toledo (9:00am – 12:00pm). There is a principal, three teachers and about 50 four and five year old students. Over the past three years, FOB CANAM AC helped the school to add another classroom to accommodate an increasing enrollment. FOB CANAM AC has been very active in helping the kindergarten furnish the new classroom and has assisted in electrical work and a new water system with functioning bathrooms. In the past few years we helped repair a classroom that was gutted by fire and reroofed part of the school. Painting the school and equipping the new classroom with shelves, chairs and desks was completed in 2012. In 2013 we provided a $5000 peso matching donation to begin work for a new air conditioning system. The Kindergarten physical plant is now in good condition and we do not anticipate any major new capital projects for 2014.

Primary School: (Grades 1 – 6): Escuela Josefa Ortíz de Domiguez (8:00am – 2:00pm). The primary school has a principal, nine teachers and an enrollment of approximately 235 kids. In past years, FOB CANAM AC has helped complete many projects at the primary school, including a new computer classroom, library, bathrooms and air conditioning for several of the classrooms. In 2013, FOB CANAM AC staged its first dental clinic, coordinating the treatment of the entire student body by a group of eight volunteer dentists and dental hygienists.

In 2013, FOB CANAM AC also helped the primary school restore electrical power, improve its air conditioning system and purchase teaching aids. The electrical power feed to the Primary School completely failed in November 2012 and the school district did not see it as a priority to restore power. One of the students (a 7 year old girl) appealed directly to the Governor of Sinaloa who promised to look into the matter. It was decided the entire school needed rewiring and a contractor was hired and began work in March 2013. Apparently, the contractor was not paid so the project was left incomplete. In September 2013, FOB CANAM AC donated $29,490 pesos to complete the project. Power to the primary school was finally restored in October 2013, almost one year after the initial power failure.

Projects for 2104 may include construction and outfitting of a new kitchen to provide nutritious school lunches, purchase of 17 new computers and a follow up dental clinic with continuing fluoride treatments.

Secondary School: (Grades 7-9) Escuela Profesor Juan Rodolfo Lopez Monroy (1pm-7pm). The present secondary school principal started in September 2009. There are three teachers who teach seven periods daily to about 120 students. Subjects range from computer technology to English, history, science and math. In both 2010 and 2011, FOB CANAM AC matched funds raised by the community to build a new computer classroom at the secondary school. Unfortunately, there were no matching funds from FOB CANAM AC in 2012 and 2013 because the community failed to provide their required contribution. Accordingly, the computer classroom project has not progressed. FOB CANAM AC will only participate in the completion of this project in 2014 if the community first raises at least 50% the necessary funds and/or provides the labor necessary to complete the classroom. In the interim, there are now 17 functioning, Internet connected computers in an air-conditioned, newly rewired classroom thanks to our past efforts.

Preparatory School: (Grades 10-12) (7:00 am – 1:00pm). The reality of Barrón is that it is a real sacrifice for families to maintain the children’s education past the 9th grade due to the increasing travel, book and tuition fees. Plus, kids are regularly needed to work in the fields to augment the family income. To help offset the cost of continuing education, FOB CANAM AC has designed a scholarship program, open to all 9th grade graduates, that offsets approximately half of the expenses associated with attending high school. This program is unique to Barrón in that it offers a hand up, instead of a hand out and that students are selected based on their academic achievements. The ongoing achievements of the scholarship recipients are monitored over the school year to maintain their eligibility for these scholarships.

Adult school: The Mexican Government sponsors a national program that allows those adults who did not finish school to earn a degree. Primary and secondary school degrees can be earned through a combination of home study and classroom participation. A series of examinations is given to ensure student progress toward the degree goal. Literacy classes are also offered. Barrón has such an adult school program. Even though this is a government sponsored and sanctioned program, the only resources the government provides are curricula, books, exams and degrees. They provide no funding, no school property, no classrooms, no furniture and no teacher salaries.

FOB CANAM AC first became involved with the Adult School in January 2012. The two room ejido-owned building where the classes are held was barely serviceable. It needed a new cement floor, new plaster and paint inside and out, a new roof, basic furnishings (desks, tables, chairs, etc.) and new toilets. FOB CANAM AC donated $37,728 pesos in 2012 and $10,783 pesos in 2013. The adult students and volunteer teachers themselves provided all the labor to complete these projects in 2012. The physical plant is now serviceable, however both volunteer teachers have experienced personal financial difficulties in the past year requiring both to seek employment in Mazatlán. Accordingly, the adult school, while still operating, is not adequately staffed. FOB CANAM AC is evaluating a request to help fund a teaching position for the adult school in 2014.

Scholarship Program
2010 – 2011 School Year Scholarship Winners (Group One)
In May of 2010, scholarships were awarded to 15 Barrón secondary school graduates. Nine students from this original group completed their last year of preparatory school. Of the nine graduates, two have gone on to University and continue in the FOB CANAM AC scholarship program for university students. One student has entered the naval academy in Vera Cruz.

2011 – 2012 School Year Scholarship Winners (Group Two)
In May 2011, the Scholarship Committee received 29 applications from the Barrón Secondary School graduates. Eight students were selected for scholarships. Seven of the original eight students finished their second year of preparatory school in good standing and are now in their last year of school.

2012 – 2013 School Year Scholarship Winners (Group Three)
Ten Barrón secondary school graduates were selected for scholarships in June of 2012 based on their grades, attendance records and quality of their essays. Seven students in Group Three remain in good standing in the scholarship program and are in their second year of preparatory school.

2012 – 2013 School Year Scholarship Winners (Group Four)
Seven students whose parents work at EDM but do not live in Barrón were selected for scholarships in November 2012. Six Group Four students successfully completed their first year and remain in good standing in the program and they continue in their second year of preparatory school.

2013 -2014 School Year Scholarship Winners (Group Five)
Eight Barrón Secondary School graduates were awarded scholarships in August 2013 and are in their first year of preparatory school in Mazatlán. After the first grading period in November 2013, two of these students were placed on probation. Their continuation in the scholarship program will depend on them bringing up their grades to the required level of 8.0 by February 2014.

2013 -2014 School Year Scholarship Winners (Group Six)
Five students of EDM employees who do not live in Barrón were selected for scholarships in August 2013. All five returned an 8.0 or better grade average in their first grading period and remain in good standing in the program.

University Scholarship Program
In 2013, FOB CANAM AC began offering University scholarships, first to Barrón students who had been on the FOB CANAM AC scholarship program and graduated in June 2013. Two students from this group, Kathia and Bianca, are in their first year of University on the FOB CANAM AC program. Kathia is studying nutrition and culinary arts and Bianca is studying business administration. University scholarships were later offered to children of EDM employees and to the EDM employees themselves. Ten students applied and five were accepted into the program. One additional nursing student from Barrón (Jessica) was also awarded a scholarship. She is in her third year of nursing school.

Of the five EDM university scholarship students, the first, Sebastian, is completing his degree in civil engineering this semester after working full-time at resort restaurants and attending school at night. Next, we have a pair of brothers on scholarship. They are sons of an EDM administrator and they attend University in Monterrey. Both aspire to civil engineering degrees. The fourth is Aransazu, whose mother is a cook at EDM. She is pursuing a university degree in nutrition at the University of Sinaloa and lastly we have Iris, whose father works in the EDM maintenance department is at the University of Durango also studying nutrition.

Going forward, FOB CANAM AC will continue to include EDM employees as well as Barrón students for available preparatory school and university scholarships. Of the 40 students now on scholarship, donors have sponsored 24 individually. Each donor has been initially introduced to his or her student via written correspondence and at a meeting/party at EDM sponsored by FOB in March 2013. Donors who sponsor students are encouraged to personally connect with their adopted student and his/her family while the donor is in residence at EDM. FOB CANAM AC facilitates this process by making the initial contact and assisting with one-on-one donor/student (and family) communication. It is the goal of FOB CANAM AC to have each scholarship student sponsored and financially supported by his/her adopted parent throughout his/her school years. Sixteen new scholarship winners are now available for sponsorship and we are hoping for your continuing support.

Please go to http://www.FOBNews.org and click on the “Our Student Scholars” tab to review the biographical information and photos for all our scholarship winners.

Scholarship Program Description & Rules
Value of Each Scholarship – Preparatory School; $9000 pesos for Barrón and Villa Union students and $6,000 pesos for EDM students for the 2013-2014 school year; 33 scholarships are current as of December 31, 2013.
Value of Each Scholarship – University; Scholarships range in value from $4500 to $15,000 pesos depending on the cost of the particular University and chosen curriculum. Seven scholarships are current as of December 31, 2013.

• The scholarship funds are paid to the parents of the scholarship students (university students are paid directly) in 3 payments; 15 Nov 2012, 15 Feb 2013 and 15 May 2013. Barrón and Villa Union students who travel daily to Mazatlán have $10,000 pesos/year in transportation costs. Therefore their scholarships are $3000 pesos higher than EDM students who live in Mazatlán and do not have so far to travel.
• Continuation of the scholarships and payments throughout the school year depend on the students’ attendance and grades during the previous months. Students must maintain at least an 8.0 (“B”) grade average and a 90% attendance record.
• To receive scholarship payments, the parents of the student are required to present proof of attendance and grades to the Committee.

Qualifications and Selection of Winners
• To be eligible to apply for a scholarship, the applicant must have a minimum grade average of 8.0 and an attendance of at least 90% for his/her last year of secondary school. University scholarships applicants must be accepted into a university or technical school and have an 8.0 grade average upon graduation from preparatory school.
• Candidates who meet eligibility requirements must complete an application. Aside from good grades and attendance records, candidates are judged on the quality of their applications and the required essay (no less than 300 words) explaining why they want to further their education and what they plan to accomplish after graduation.
• No Selection Committee member can have a son/daughter that is eligible for a scholarship. Award of scholarships is based strictly upon merit. Financial need and/or “connections” are not considerations.

Fund Raising
Currently, FOB CANAM AC raises money four different ways:
• Sponsor-a-Student – To support our scholarship program we encourage EDM residents and their friends to sponsor an individual student. This way, there is a possibility that the sponsors and the student can establish a personal relationship that will persevere beyond the scope of this program. It is our desire to increase the opportunity for donors and students to meet to enhance this relationship.

• Individual donations – For the past three years, a third to more than half of all FOB CANAM AC donations have come from generous EDM residents and their friends and families. Many of these donors know EDM employees and their families and many of our donors also have relationships with Barrón residents who are not associated with EDM. Most EDM residents have been to Barrón many times, have seen the schools and understand the importance of their contributions to the kids of that community and to the kids of EDM employees.

• Taco Party and Silent Auction –This event in February 2013 was intended to showcase scholarship students available for sponsorship to EDM residents and friends. A highlight of the evening was the Silent Auction where many valuable items donated by EDM residents and others went up for bid. Participants competed for weekend getaways, local art, boat cruises and a wide variety of other valuable items. This event was highly successful in that all students received new sponsor commitments totaling $127,198 pesos. An additional $33,231 pesos were raised from the Taco Party venue and Silent Auction.

• Charity Golf Tournament – An important source of past revenue has been the Charity Golf Tournament held at Estrella del Mar in January. Tournament proceeds are used to support scholarship and school programs throughout the Mazatlán school district. In 2010, 2012 and 2013, The Universal Golf Foundation (a charitable foundation organized by Pat Butler) generously donated to FOB CANAM AC scholarship programs.

New FOB CANAM AC Programs for 2014 and Beyond
Microfinancing
Microfinance is the provision of financial services to low-income people in poor communities who traditionally lack access to banking and related services. By providing access to the capital they need for micro-loans to develop or expand a small business, families in many of the poorest regions in the world can escape poverty and build a better future for their children.

As loan recipients repay their micro-loans, the funds are recycled into new loans, thus multiplying the number of poor people who can begin their journey out of poverty. No project or endeavor is too small. Two 2012 projects are now successful businesses and paid back their loans in full in 2013. One project failed and did not pay back the money and the last has paid back half the money and is ongoing. We are currently evaluating the feasibility of several small projects proposed by would-be Barrón entrepreneurs. FOB CANAM AC has put out the word in Barrón that we are willing to listen to any reasonable proposal that is accompanied by a sound and reasonable financial and business plan.

Health Care Clinics for Barrón
In September 2013, FOB sponsored a dental clinic pilot program for the Barrón Primary School population. The program was organized by Claire Silk, an EDM resident and owner who is also a dental hygienist. Claire recruited seven dentists and other hygienists to deliver a complete suite of dental services to 230 kids over a period of five days. One or two grade levels were treated each day. Complete health histories were created as well as a dental chart for each patient. While some students opted out of the treatment and some were sick, we now have a reasonably complete baseline database for 230 Barrón primary students’ dental history. Generally, their dental hygiene is in poor condition due to poverty but worsened by poor eating habits, lack of convenient facilities and a decided lack of dental education. We took major steps in correcting some of these impediments to dental health and were ably assisted in the education efforts by a variety of local volunteers; from Maria Jose to two of our “Muchachos del Rio” golfers (Jesus and Uriel) as well as two Mazatlán dentists, Doctoras (and sisters) Susana and Mary. Each child was instructed on how to brush correctly, given tools with which to care for teeth, and treated for whatever ailed them that day. We filled 566 teeth and pulled 46 teeth that were either superfluous or too far-gone to save. Our volunteer dentists plan to return in June and deliver a follow-up clinic. Jesus was so motivated by the clinic that he enrolled in dental school here in Mazatlán! Claire will conduct a follow-up clinic in early January 2014 to treat newly erupted permanent teeth with sealant and to reemphasize the importance of dental hygiene. Ongoing proposals include extending treatment to the secondary school and the kindergarten.

In March 2014 FOB CANAM AC will sponsor a pilot medical clinic. Dr. Bonnie McGuire is recruiting doctors, nurses and other health professionals to staff the clinic. Her plan is to establish a baseline medical database for Barrón residents and to begin an educational program to encourage medical health. EDM residents who are doctors and nurses have expressed interest in assisting in this effort and will be welcomed. Other EDM residents can assist by donating use of their condos during the week of March 17 – March 21, 2014 to house the medical team. Please contact Kris McGuire (krisvadale@aol.com) if you are willing to participate in any way.

Financial Report and Projections
General financial information concerning total inflows from donations and other sources and uses of the money (outflows) is routinely updated and published on the web site (www.FOBNews.org). Detailed financial information itemizing each FOB CANAM AC financial transaction by date is made available to donors upon request. The following tables present financial information for 2013 and projections for 2014:

• Table 1 – Sources and Uses of Revenue; 2013
• Table 2 – Projected Expenses for 2014.
• Table 3 – Cash on Hand and Potential Other Sources of Revenue for 2014.

NOTE: All revenue shown in Tables 1 – 3 is in Mexican pesos

Table 1
Sources and Uses of Revenue; 2013
INCOME EXPENSE

General Fund $ 9,082 $ 980
University Scholarships 17,000 50,000
Preparatory School Scholarships 389,278 245,099
Fiesta & Auction 123,792 91,122
Dental Clinic 4,434 29,436
School Improvement
Kindergarten 0 5,000
Primary 0 39,490
Secondary 0 0
Adult 3,600 10,783
Loans 68,876 68,876
TOTAL INCOME FOR 2013 $616,062 $540,786

Table 2
Projected Expenses for 2014
• Infrastructure Projects
Primary School computers $ 50,000
• Scholarships 339,000
• Medical & Dental Clinics 60,000
• Micro-financing projects 30,000
• General Fund (miscellaneous expenses) 10,000

TOTAL $489,000

Table 3
Cash on Hand and Potential Other Sources of Revenue for 2014

Cash balance forward from 2013 $ 75,276
Individual donations (estimate based on 2013 results) 300,000
Fund Raising Events 70,000
Charity Golf Tournament 80,000

TOTAL $ 525,276

Other FOB CANAM AC Business
FOB CANAM AC is registered as a non-profit “Civil Association” (AC) under Mexican law. We have had our operating agreement prepared by a notario and registered under the name FOB CANAM AC (all caps). All transactions as of Jan 1, 2013 will be by check and all checks written as donations need to be made out exactly as above or they will be returned. We have hired an accounting firm to prepare the required submittals to the Mexican Government and to account for all our financial transactions. Our accountant tells us that Mexico and the USA have reciprocal agreements making charitable contributions in either country tax deductible against Mexican sourced income. We recommend that donors check with their tax accountants to verify this. FOB CANAM AC will provide each donor with an official receipt, which will include our registration number identifying FOB CANAM AC as a charitable organization in Mexico. FOB CANAM AC holds all funds in a business account at Bancomer, Golden Zone, Mazatlan, Sinaloa, Mexico.

We are pleased to inform our donors that Aida Alvarado assisted us pro bono to get FOB CANAM AC registered and set up with the Kelly accounting firm. Our accountant, Rodolfo Kelly agreed to do our 2013 accounting work pro bono. In 2014, we will have to pay for these services.

FOB CANAM AC Management Team
• Dale and Lynda Lyster of Calgary, Canada. dlyster@shaw.ca, Phase 1 Condo 1117, EDM. 669.178.0117.
• Dick McGuire of Laramie, WY, USA. richardmcg@aol.com, Phase 1 Condo 1105/06, EDM. 669.178.0105.

Contact any team member for information concerning project activities, updates, questions, ideas and suggestions on how you can help.

2012 ANNUAL REPORT
About Barrón
Barrón, Sinaloa is a small town located 30 minutes from the city of Mazatlan and 5 km from the community of Estrella del Mar (EDM). EDM is a luxurious, beachfront, residential community with over 500 hotel rooms/condos and a Robert Trent Jones 18 Hole golf course. Many of the staff that work at Estrella del Mar live in Barrón so there has always been a close connection with the town and Estrella.

Barrón has about 400 families and 3,000 people. Approximately 100 people of that population work at Estrella del Mar. The majority of Barrón citizens earn their income from agriculture although some commute into Mazatlan to work. There is a decided lack of services in Barrón; there is no doctor, no dentist and no pharmacy. The water tower pump is turned off at 7 am so the only water available during the day is the water that is stored in rooftop or underground cisterns.

There are a few amenities … there is a “panaderia”, the bakery, cleverly disguised as a home on the outskirts of town on the road down to the river. There are many small family stores, called “abarrotes”, that sell some fruits and vegetables, canned goods, candy and snacks. Ana Isabel Soliz, FOB CANAM’s Barrón Student Liaison Official, efficiently runs one such store, “Chula’s”. There are two “depósitos” for beer purchases. There are even a few “cantinas” scattered about, although they are hard to find. There is a small Catholic Church, which celebrates mass at 7:00 a.m. on Sundays. Mass is in Spanish and the service lasts about an hour.

The land dispute between the “Ejiditarios” of Barrón (cooperative farmers) and EDM management was recently resolved. EDM has its entranceway back and any residual hard feelings resulting from this dispute are dissipating. It is important to remember that the majority of the citizens of Barron are not Ejido members and therefore were not involved nor did they have any say in this dispute. They also did not receive any of the settlement money; only the 142 actual Ejido members did.

FOB CANAM AC is involved with the students and their schools. We are not currently involved in any Barrón projects outside of the schools. The pertinent fact is that many of these kids want to come back to Barrón to help their community. Most Mexicans come home to stay and work and raise their families where they grew up. From reading our scholarship applicants’ essays, we know the majority wants to return to Barrón after they complete their education. We believe that a proper education will allow these future leaders of Barrón to make decisions that will benefit all parties involved.

About the Schools
There are four levels of education in Barrón; Kindergarten, Primary School (Grades 1-6), Secondary School (Grades 7-9) and an Adult School. Barrón has no High School (Preparatory School, Grades 10-12). High School is not mandatory in Mexico so kids wanting to further their education have to travel by local bus to Mazatlan or Villa Union where they pay increased tuition fees and must buy their own books and uniforms.

The Barrón schools employ 3 principals, about 20 teachers and a few supporting staff. There are also a number of parent volunteers that assist with various tasks in and around the schools. The Barrón schools have a total enrollment of about 300 students aged 5 to 15 years. The Adult School is staffed by volunteer teachers and has an enrollment of about 40 adult students

Kindergarten: Escuela Estella Ortiz de Toledo (9:00am – 12:00pm). There is a principal, three teachers and 59 four and five year old students. Over the past three years, FOB CANAM AC helped the school to add another classroom to accommodate an increasing enrollment. FOB CANAM AC has been very active in helping the kindergarten furnish the new classroom and has assisted in electrical work and a new water system with functioning bathrooms. Recently we helped repair a classroom that was gutted by fire and reroofed part of the school. Painting the school and equipping the new classroom with shelves, chairs and desks was our priority for 2012. The Kindergarten physical plant is now in good condition. We do not anticipate any major new capital projects for 2013.

Primary School (Grades 1 – 6): Escuela Josefa Ortiz de Domiguez (8:00am – 12:00pm). The primary school has a principal, nine teachers and an enrollment of 225 kids. In past years, FOB has helped complete many projects at the primary school, including a new computer classroom, library, bathrooms and air conditioning for several of the classrooms. Small projects including exterior paint and new desks for one classroom were completed for the 2012 school year at the primary school. Like the Kindergarten, the primary school physical plant is much improved, although the electrical system now requires a major overhaul. We may participate in this project in 2013. If the Primary School parents can put up half of the cost, we will consider providing matching funds.

Secondary School: (Grades 7-9): Escuela Profesor Juan Rodolfo Lopez Monroy (1pm-7pm). The present secondary school principal started in September 2009. There are three teachers who teach seven periods daily to about 120 students. Subjects range from computer technology to English, history, science and math. In both 2010 and 2011, FOB CANAM AC matched funds raised by the community to build a new computer classroom at the secondary school. Unfortunately, there were no matching funds from FOB CANAM AC in 2012 because the community failed to provide their contribution. Accordingly, the computer classroom project has not progressed in 2012. FOB CANAM AC will only participate in the completion of this project in 2013 if the community first raises the necessary funds or provides the labor necessary to complete the classroom. In the interim, there are now 17 functioning, Internet connected computers in an air-conditioned, newly rewired classroom thanks to our efforts.

High School: (Grades 10-12) (7:00 am – 1:00pm) The reality of Barrón is that it is a real sacrifice for families to maintain the children’s education past the 9th grade due to the increasing travel, book and tuition fees. Barrón is primarily a farming community and kids are regularly needed to work in the fields to augment the family income. To help offset the cost of continuing education, FOB CANAM AC has designed a scholarship program, open to all 9th grade graduates, that offsets approximately half of the expenses associated with attending high school. This program is unique to Barrón in that it offers a hand up, instead of a hand out. The ongoing achievements of the scholarship recipients are monitored over the school year to maintain their eligibility for these scholarships.

Adult school: The Mexican Government sponsors a national program that allows those adults who did not finish school to earn a degree. Elementary (Primary) and Middle school (Secondary) degrees can be earned through a combination of home study and classroom participation. A series of examinations is given to ensure student progress toward the degree goal. Literacy classes are also offered. Barrón has such an adult school program. Even though this is a government sponsored and sanctioned program, the only resources the government provides are curricula, books, exams and degrees. They provide no funding, no school property, no classrooms, no furniture and no teacher salaries. Accordingly, at the time FOB CANAM AC became involved, the Barrón Adult School was operating out of a dilapidated two-room building provided at no cost by the Barrón Ejido. Two teacher volunteers run the program with no compensation.

FOB Activities
Construction Projects
Kindergarten:
FOB CANAM AC donated $3040 pesos to buy paint and a small amount of furniture to complete the new classroom project started in 2012. For their match, the parents put in the labor to paint the school. We do not anticipate any Kindergarten construction/improvement projects for 2013.

Primary School: FOB CANAM AC donated $21,746 pesos to buy exterior paint and roofing materials for the primary school in 2012. For their match, 30 parents spent a weekend preparing and painting the entire exterior of the school and applying the roofing material to one classroom roof. We are now considering a request to rewire the school (total cost $70,000 pesos). This is not the kind of project where parents can provide a match with their labor so they will have to raise half the cost in cash before FOB CANAM AC will participate. As it stands now, several classrooms, including the computer classroom are without power, a situation that begs the question, “What is the Mexican Government and/or the Ejido doing to remedy this problem”? We will need a believable answer to that question before we can agree to participate.

Secondary School: FOB CANAM AC does not plan to participate in any construction or improvements here in 2013. An exception would be made to complete the computer classroom if the community raises funds that we would match.

Adult School: FOB CANAM AC first became involved with the adult School in January 2012. The two room Ejido-owned building where the classes are held was barely serviceable. It needed a new cement floor, new plaster and paint inside and out, a new roof, basic furnishings (desks, tables, chairs, etc.) and new toilets. FOB CANAM AC donated $37,728 pesos and the adult students and volunteer teachers themselves provided all the labor to complete these projects in 2012. The physical plant is now serviceable, however both volunteer teachers have experienced personal financial difficulties in the past year requiring them to seek employment in Mazatlan. Accordingly, the Adult School, while still operating, is not adequately staffed. FOB CANAM AC is evaluating a request to fund a teaching position for the Adult School in 2013, possibly hiring one of the volunteer teachers who has demonstrated leadership abilities.

Scholarship Program
2010 – 2011 School Year Scholarship Winners (Group One)

In May of 2010, scholarships were awarded to 15 Barrón secondary school graduates. Nine students in Group One remain in the program on scholarship and are in their last year of Preparatory School. Hopefully, all nine will graduate and continue on to other opportunities.

2011 – 2012 School Year Scholarship Winners (Group Two)
In May 2011, the Scholarship Committee received 29 applications from the secondary school graduates. Eight students were selected for scholarships. All eight students finished their first year of Preparatory School in good standing and remain in the program.

2012 – 2013 School Year Scholarship Winners (Group Three)
Ten Barrón Secondary School graduates were selected for scholarships in June of 2012 based on their grades, attendance records and quality of their essays. All have received their first semester grades and attendance records from their new Preparatory Schools and we are pleased to report that all achieved “B” or better averages and remain in good standing in the scholarship program.

2012 – 2013 School Year Scholarship Winners (Group Four)
Seven students whose parents work at EDM but do not live in Barrón were selected for scholarships in November 2012. FOB CANAM Ac decided to open the scholarship program to all EDM employees with eligible students (originally, the program was only available to Barrón students whether or not their parents worked at EDM). An eighth adult student was also selected for scholarship. This student is a 33 year-old EDM security guard who had to drop out of school to help his family when he was a boy. He wants to finish High School so he can enter the university to study Business Administration. He has a family and two kids of his own.

Going forward, FOB CANAM will continue to include EDM employees as well as Barrón Secondary School graduates for available scholarships. Of the 35 students on scholarship, donors have adopted 15 individually. Each donor has been initially introduced to his or her student via written correspondence. Donors who adopt students are encouraged to personally connect with their adopted student and his/her family while the donor is in residence at EDM. FOB CANAM AC facilitates this process by making the initial contact and assisting with one-on-one donor/student (and family) communication. It is the goal of FOB CANAM AC to have each scholarship student adopted and financially supported by his/her adopted parent throughout his/her high school years. Twenty scholarship winners are available for adoption and these qualified students are hoping for your continuing support. Please go to http://www.FOBNews.org/p/adopt-student.html to review the biographical information and photos for all our scholarship winners and to choose your student.

Scholarship Program Description & Rules
Value of Each Scholarship; $6,000 pesos for the 2012-2013 school year; thirty-five scholarships are current as of December 31, 2012.
· The scholarship funds are paid to the parents of the students three times beginning November 15, 2012; parents of each student receive 3 payments of $2000 pesos each; 15 Nov 2012, 15 Feb 2013 and 15 May 2013.
· Continuation of the scholarships and payments throughout the school year depend on the students’ attendance and grades during the previous months. Students must maintain at least an 8.0 (“B”) grade average and a 90% attendance record.
· To receive scholarship payments, the parents of the student are required to present proof of attendance and grades to the Committee.

Qualifications and Selection of Winners
· To be eligible to apply for a scholarship, the applicant must have a minimum grade average of 8.0 and an attendance of at least 90% for his/her last year of secondary school.
· Candidates who meet eligibility requirements must complete an application. Aside from good grades and attendance records, candidates are judged on the quality of their applications and the required essay (no less than 300 words) explaining why they want to further their education and what they plan to accomplish after graduation.
· No Selection Committee member can have a son/daughter that is eligible for a scholarship. Award of scholarships is based strictly upon merit. Financial need and/or “connections” are not considerations.

Fund Raising
Currently, FOB CANAM AC raises money five different ways:
· Adopt-a-Student – To support our scholarship program we encourage EDM residents and their friends to adopt an individual student. There is a possibility that the sponsors and the student can establish a personal relationship that will persevere beyond the scope of this program. It is our desire to increase the opportunity for donors and students to meet to enhance this relationship.

· Individual donations – For the past three years, a third to a half of all FOB CANAM AC donations have come from generous EDM residents and their friends and families. Many of these donors know EDM employees and their families and many of our donors also have relationships with Barrón residents who are not associated with EDM. Most EDM residents have been to Barrón many times, have seen the schools and understand the importance of their contributions to the kids of that community and to the kids of EDM employees.

· Gala Fiesta and Silent Auction –This annual event provides significant revenue for FOB CANAM AC. Last year a wonderful evening with fine dining, live music and dancing was hosted in March at the beautiful Las Villas Patio. The highlight of the evening (and the biggest cash producer) is always the Silent Auction where many valuable items donated by EDM residents and others are up for bid. Participants compete for weekend getaways, local art, boat cruises and a wide variety of other valuable items. If you are interested in volunteering to help organize this Gala Event, please contact Dale Lyster at dlyster@shaw.ca or Dick McGuire at richardmcg@aol.com

· 50/50 Draw – We also organize a 50/50 Draw during Super Bowl Sunday. This is really just a bet. You chip in $50 pesos and bet that your number will be drawn out of a hat. If it is, you get 50% of the pool. Half the time, the whole pool gets donated back to FOB CANAM AC and half the time it’s not. Either way, we come out winners.

· EDM Charity Golf Tournament – The final and important source of past revenue has been the EDM Charity Golf Tournament. Tournament proceeds are used to support scholarship and school programs throughout the Mazatlan School District. In 2010 and 2012, EDM generously donated to FOB CANAM AC schools and scholarship programs.

Other FOB CANAM AC Programs for 2013 and Beyond
Microfinancing is the provision of financial services to low-income clients in poor communities who traditionally lack access to banking and related services. By providing clients access to the capital they need for micro-loans to develop or expand a small business, families in many of the poorest regions in the world can escape poverty and build a better future for their children.

As clients repay their micro-loans, the funds are recycled into new loans, thus multiplying the number of poor people who can begin their journey out of poverty. No project or endeavor is too small. To test this idea, four projects were financed by a private donor in 2012. The projects were as follows.
· One was helping to establish a small abarrote (grocery store)
· Another was to finance a local artisan to fabricate bags and purses from recycled plastic.
· The third was to expand an agricultural activity to increase citrus and mango production.
· The last was to finance a small hog production operation.
Two projects are now successful business and have paid back their loans in full. One project failed and did not pay back the money and the last has paid back half the money and is ongoing. This positive success rate has encouraged FOB CANAM AC to pursue additional projects

FOB CANAM AC is interested in further exploring microfinancing by working with consultant, Lourdes Arellano, a Mexican government employee based in Mazatlán, to help entrepreneurs access government programs that support such initiatives. As this activity evolves, our key components will be the application process, educational programs and evaluation of business plans. We will keep your apprised of progress with regular posts on FOBNews.org.

Financial Report and Projections
General financial information concerning total inflows from donations and other sources and uses of the money (outflows) is routinely updated and published on the web site (www.FOBNews.org). Detailed financial information itemizing each FOB CANAM AC financial transaction by date is made available to donors upon request. The following tables present financial information for 2012 and projections for 2013:

<li>Table 1 – Income, 2012 – Sources of Revenue by Category.

  • Table 2 – Expenses, 2012 – Uses of Income.
  • Table 3 – Summary of Financial Position as of December 31, 2012.
  • Table 4 – Projected 2013 Expenses.
  • Table 5 – Cash on Hand and Potential Other Sources of Revenue for 2013.

NOTE: All revenue shown in Tables 1 – 5 is in Mexican pesos

Table 1
Income, 2012
Sources of Revenue by Category

2012 % of
Total
1. Individual Donations
a. EDM Residents $103,399 26%
b. Others 12,500 3%
2. Fiesta & Silent Auction 171,630 44%
3. EDM Charity Golf Tournament 80,000 21%
4. Loans & Returns 24,872 6%

TOTAL INCOME FOR 2012 $392,401 100%

Table 2
Expenses, 2012
Uses of Income

School Construction Projects $40,944 Scholarships 154,000
Loan Paybacks 22,632
Fiesta & Silent Auction Expenses 101,368
General Fund [1] Expenses 9,275

TOTAL EXPENSES for 2012 $328,219

Table 3
Summary of Financial Position as of December 31, 2012

Cash Balance forward from 2011 $ 105,638
Total Income Jan 1 – Dec 31, 2012 392,401
Total Expenses Jan 1 – Dec 31, 2012
Cash available at Dec 31, 2012 $169,820

Table 4
Projected Expenses for 2013

Infrastructure Projects
o Primary School electrical $35,000
Scholarships
o 35 existing students (last half of current school year) 140,000
o 26 existing students (first half of new school year) 54,000
o 10 new students (first half of new school year) 20,000
Adult School teacher salary; 12 mo @ $2500/mo 30,000
Micro-financing projects 60,000
General Fund (miscellaneous expenses) 10,000

TOTAL $349,000

Table 5
Cash on Hand and Potential Other Sources of Revenue for 2013

Cash balance forward from 2012 $169,820
Individual donations (estimate based on 2012 results) 115,000
Dinner & Silent Auction (estimate based on 2012 results) 70,000
50/50 Draw (estimate based on 2011 results) 10,000
EDM Charity Golf Tournament (estimate based on 2012 results) 80,000

TOTAL $444,820

Other FOB CANAM AC Business
FOB CANAM AC is registered as a non-profit “Civil Association” (AC) under Mexican law. We have had our operating agreement prepared by a notario and registered under the name FOB CANAM AC (all caps). All transactions as of Jan 1, 2013 will be by check and all checks written as donations are to be made out exactly in the name above. We have hired an accounting firm to prepare the required submittals to the Mexican Government and to account for all our financial transactions. Our accountant tells us that Mexico, the USA and Canada have reciprocal agreements making charitable contributions in any of these three countries tax deductible in the donors’ country of residence. We recommend that donors check with their tax accountants to verify this. From now on, FOB CANAM AC will provide each donor with an official receipt, which will include our registration number identifying FOB CANAM AC as a charitable organization in Mexico. FOB CANAM AC holds all funds in a business account at Bancomer, Golden Zone, Mazatlan, Sinaloa, Mexico.

We are pleased to inform our donors that Aida Alvarado assisted us pro bono to get FOB CANAM AC registered and set up with the Kelly accounting firm. Our accountant, Rudolfo Kelly has also agreed to do all our accounting work pro bono.

FOB CANAM AC Management Team
· Dale and Lynda Lyster of Calgary, Canada. dlyster@shaw.ca , Phase 1 Condo 117, EDM
· Dick McGuire of Laramie, WY, USA. richardmcg@aol.com , Phase 1 Condo 105, EDM

Contact any team member for information concerning project activities, updates, questions, ideas and suggestions on how you can help.

[1] The General Fund provides ready cash to cover administrative expenses and support miscellaneous school projects that arise on short notice.

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