In January 2007, we renegotiated and signed Management Agreements between each Mutual and PCM. The new Management Agreements were, for all practical purposes, identical to the 2001 contract, with one exception, "The inclusion of an INCENTIVE program." This program was in effect for many years, BUT, it was only in 2006 that the Boards became aware of this program and as a result included reference to it in the current Management Agreement.

Realize this! These controls were only implemented when we were aware of whaqt PCM was doing with our money. Notice! At that time, there was no reference to Credit Card Charges. Well, "We weren't aware of them!"

Now we are asking that the Boards initiate guidelines to control unnecessary and unwarranted costs. Without a Forensic Audit, how will we know what we don't know? It is crucial that we have a forensic audit FIRST and then use that information to define guidelines.

That would be putting the horse before the cart instead of, the "normal" board sequence, "generating controls before we know what to control."

We need a Forensic Audit by an independent specialist who will find all of the "loopholes" that are currently being used by PCM to spend our money.