<p>"Like other organizations that hold investment funds for their members and have the responsibility to generate revenues and investment gains from those funds, the AOG has been significantly impacted by the weakening economy and the decline in the financial markets. The estimate at this point is that the total mark to market value of AOG investments has been reduced by approximately 30% in the first half of FY 2009. </p>
<p>Approximately 1/3 of this reduction is traceable to an investment of AOG funds in a hedge fund impacted by the Madoff scandal. The Madoff investment was but one of more than a dozen funds in which the AOG is invested. The AOG originally invested $1.2 million, approximately 5% of our investment assets, in the Madoff fund. Subsequently, as investable assets increased through appreciation and receipt of new funds, a total of $500,000 was added for a total investment of $1,691,000. The value of the investment on our books at the time of the disclosure of the fraud was approximately $2.5 million. At this time, we have little hope that these funds are recoverable; but the AOG will take appropriate steps to participate in any legal actions that may ultimately recover some or all of the funds."</p>