Annual Report 2012


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 have capital projects as well as scholarship programs. Annual fund raisers are staged at Estrella del Mar (an adjacent 4 Star Golf & Beach Resort) and include a 50/50 Draw, a charity golf tournament, a Fiesta Gala and a Silent Auction. FOB CANAM AC derives almost a third of its revenue from generous individual donations of EDM residents, their families and their friends. Routine communication with our donors and other interested parties is through the Internet website www.FOBNews.org. 
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:

·      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                                 <328>    
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.





ANNUAL REPORT 2011

Meet Our Neighbors



Friends of Barrón is a community out-reach program dedicated to improving the educational environment for the children of our neighbors in Barrón, Sinaloa, Mexico. We have capital projects as well as scholarship programs. Annual fund raisers are staged at Estrella del Mar (an adjacent 4 Star Golf & Beach Resort) and include a 50/50 Draw, a Fiesta Gala and a Silent Auction. FOB derives almost half of its revenue from generous individual donations of EDM residents, their families and their friends. 




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 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 and 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.



There are a few amenities ... a personal favorite is the “panaderia”, the bakery. There are many small family stores, called "abarrotes", that sell some fruits and vegetables, canned goods, candy and snacks. There are two "depositos" for beer purchases. There are even a few “cantinas” scattered about, although they are hard to find.  There is a small Catholic Church, which gives mass at 7:00 a.m. on Sundays.  Mass is totally in Spanish and lasts about an hour. Afterwards, you can find the fruit truck and buy really fresh produce.

There have been communication problems between the “ejideros” of Barrón (coop farmers) and EDM management. There is an ongoing lawsuit involving the EDM entranceway land that has yet to be resolved and yes, negotiations have been difficult, at times unreasonable. But the majority of the citizens of Barron are not involved nor do they have any say in this dispute. 

Friends of Barrón is exclusively involved with the kids and their schools. We are not currently involved in 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 everyone involved.

About the Schools
There are three levels of education in Barrón, Kindergarten, Primary School (Grades 1-6), and Secondary school (Grades 7-9); Barrón has no high school (preparatory school, Grades 10-12) and high school is not mandatory in Mexico so kids wanting to go to high school have to travel by local bus to Mazatlan or Villa Union where they pay increased tuition fees and 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 600 students aged 5 to 15 years.



Estella Ortiz
Kindergarten: Escuela Estella Ortiz de Toledo (9:00am – 12:00pm). There is a principal, three teachers and about 150 four and five year old students. In 2011, Friends of Barrón (FOB) helped the school to add another classroom to accommodate an increasing enrollment. FOB 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.  Equipping the new classroom with shelves, chairs and desks is our priority for 2012.

Primary School Classroom
Primary School (Grades 1 - 6): Escuela Josefa Ortiz de Domiguez (8:00am – 12:00pm). The primary school has a new principal, nine teachers and an enrollment of approximately 300 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 are contemplated for the 2012 school year at the primary school.


Secondary School: (Grades 7-9): Escuela Profr. Juan Rodolfo Lopez Monroy (1pm-7pm). The present secondary school principal started in September 2009. There are three teachers who teach seven periods daily.  Subjects range from computer technology to English, history, science and math. For the past two years, FOB has matched funds raised by the community to build a new computer classroom at the secondary school. Hopefully this project will be completed in 2012. In the interim, there are now 17 functioning, Internet connected computers in an air conditioned, electrically safe 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. Plus, kids are regularly needed to work in the fields to augment the family income. To help offset the cost of continuing education, FOB 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.


Barron, it's a real town, with real people... who just need a little help.........


FOB Activities
Construction Projects
THE NEW KINDERGARTEN CISTERN

Kindergarten:  FOB donated 48,000 pesos to complete various construction and repair projects at the kindergarten during 2011.  Most of the cash was provided as matching funds to build and furnish a new classroom for the growing student body. Other funds were used to repair a leaky roof, fix a broken water pump and repair a classroom that had been damaged by an electrical fire.  We do not anticipate major new construction projects during the upcoming year, although we do have a request to help with the installation of an air conditioning system at a total cost of 34,000 MN.  We do not consider this request to be a priority and probably will not respond to this request this year. Instead we will match their funds to finish the new classroom as a library with bookshelves, tables and chairs.

Elementary School: In 2011, the school was in a state of transition with a new administration and we did not participate in any projects. This year, we have already met with the new principal and have been approached with new projects, such as new exterior paint and new classroom furniture.

Secondary School:  The project to build a new computer classroom for the secondary school started in 2010 with FOB helping the school to raise $25,000 MN to obtain a government match of $25,000 MN to begin the project. By August of 2010, the foundation and walls of the classroom were up. The 2011 fund raising effort to complete the roof raised another $25,000 MN ($15,000 MN were raised by student families in Barrón and $10,000 MN contributed by FOB). The money was deposited with the Mexican government, which provided a $25,000 MN match. With the $50,000 new construction pesos, the families of Barrón saw the computer classroom project take another step toward completion. The secondary school hopes to raise sufficient funds in 2012 to install doors, windows and a tile floor to make the building useable for the 2012 – 2013 school year. FOB will participate in this ongoing project on a fund-matching basis as we have in past years except that this year, the cost to complete the project will be considerably higher than the basic masonry construction completed to date.


Scholarship Program
2010 - 2011 School Year Scholarship Winners (the original group)

In May of 2010, scholarships were awarded to 15 Barrón secondary school graduates.  The scholarships each amounted to $10,000 MN and were to provide support for these students to attend high school in Mazatlan. Five payments of $2,000 MN each were to be made to the parents of these students at regular intervals throughout the school year. Students had to present acceptable grades and attendance records to receive payments. Of the original 15, two students were dropped from the program in November 2010 for lack of adequate grades. At the end of 2010 - 2011 school year, nine of the 13 remaining, original students were selected, based on grades and attendance, to continue on the scholarship program for the 2011 - 2012 school year.

Scholarships for this group have been reduced for the 2011-2012 school year and are now worth $6,000 pesos MN, paid in three installments (Nov 15, 2011, Feb 15, 2012, and May 15, 2012). As always, the Scholarship Committee will approve each payment based upon grades and attendance records.

2011 - 2012 School Year Scholarship Winners

In May 2011, the Scholarship Committee received 29 applications from the secondary school graduates. Eight students were selected for scholarships based on their grades, attendance records and the quality of their application and essay. The value, payment procedures and schedules for these scholarships are the same as for the original students, described above.

Scholarship donors adopted all students from the original group. 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 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 to have each scholarship student adopted and financially supported by his/her adopted parent throughout his/her high school years. The eight new scholarship winners are now available for adoption and are hoping for your continuing support. Please go to http://www.FOBNews.org/p/adopt-student.html to review the biographical information for our new scholarship winners. 

Scholarship Program Description & Rules

Value of Each Scholarship; $6,000 MN for the 2011-2012 school year; Seventeen scholarships were current as of December 31, 2011.
  •  The scholarship funds are paid to the parents of the students three times beginning November 15, 2011; parents of each student receive 3 payments of $2000 pesos each; 15 Nov 2011, 15 Feb 2012 and 15 May 2012.
  •  Continuation of the scholarships and payments throughout the school year depends 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 ("B") and an attendance of at least 90% for his/her last year of secondary school.
  • Candidates who meet eligibility requirements must submit 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.
  • The Selection Committee consists of the secondary school Principal, one teacher and one parent. 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 or connections with EDM staff or residents are not considerations.



Fund Raising
Currently, FOB 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. 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. Individual relationships are very important in Mexican culture. 
  • Individual donations  - For the past two years, almost half of all FOB donations have come from generous EDM residents and their friends and families. Many of these donors know people in Barrón, have been to the small town many times, have seen the schools and understand the importance of their contributions to the kids of the community.
  • Gala Fiesta and Silent Auction – This annual event provided a significant FOB revenue in 2011. The date for 2012 has not yet been set, but in the past we have selected a warm evening in March and put on a wonderful meal with dining, live music and dancing by the pool. 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, delicious baked goods, boat cruises and a wide variety of other valuable items.·    . To see a list of last years’ donated items go to http://laslagunitas.wordpress.com/fiesta-silent-auction/If you are interested in volunteering to help organize this Gala Event, please contact Dale Lyster at dlyster@shaw.ca or Dick/Kris McGuire at krisvadale@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 and half the time it’s not. Either way, we come out winners.
  • EDM Charity Golf Tournament - The final 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, EDM generously donated to FOB school programs.  In 2011, this was not the case but we hope that in 2012, EDM will again list FOB amongst its charity recipients.
Sadly, Mexico is not a meritocracy, meaning the good old North American dogma that anyone can someday grow up to be President or Prime Minister just doesn’t apply. Instead the dominant “it’s who you know” culture is what gets you a job here in Mexico. FOB will not work that way. Our kids are selected based on their willingness to learn and their ability to do well in school. If a donor adopts a student, that donor can be assured that his/her student was selected in an objective manner under the rules of the program.


New FOB Programs for 2012 and Beyond

Micro finance 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.  FOB is actively studying the feasibility of becoming involved in micro financing. We are currently evaluating the feasibility of several small projects proposed by would-be Barrón entrepreneurs. 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 financial transaction by date is made available to donors upon request. The following tables present financial information for 2011 and projections for 2012:

·             Table 1 – Income, 2011 - Other Sources of Revenue by Category.
·             Table 2 – Expenses, 2011 – Uses of Income
·             Table 3 - Summary of Financial Position as of December 31, 2011.
·             Table 4 - Projected 2012 Expenses
·             Table 5 – Cash on Hand and Potential Other Sources of Revenue for 2012

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

Table 1
Income, 2011
Other Sources of Revenue by Category
                                                                          2011             % of
                                                                                                                  Total
1.     Individual Donations     
a.     EDM Residents                                        $86,875         31%
b.     Others                                                          30,825        11%
2.     Fiesta & Silent Auction                                          101,850       36%
3.     50/50 Draw                                                               8000        3%     
4.     Other Sources
a.     Returns                                                       22,200         8%
b.     Exchange rate adjustments                     13,210         5%
c.      Loans                                                          18 ,535        6%

TOTAL INCOME FOR 2011                  $281,495       100%




Table 2
Expenses, 2011
Uses of Income

      Construction projects                                              
                  Kindergarten                                                 $48,022 
                  Secondary School                                            13,241

      Scholarships                                                              112,469
      Loan Paybacks                                                            18,535

      General Fund [1] Expenses                                          9,668

                  TOTAL EXPENSES for 2011                $201,935



[1] The General Fund provides ready cash to support miscellaneous school projects that arise on short notice (e.g.: the Kindergarten fire that required immediate matching funding for repairs)



Table 3
Summary of Financial Position as of December 31, 2011

      Cash Balance forward from 2010                                       $  26,078
      Total Income Jan 1 – Dec 31, 2011                                       281,495
Total Expenses Jan 1 – Dec 31, 2011                             <201,935 >    
Cash available at Dec 31, 2011                                         $105,638






Table 4
Projected Expenses for 2012
·      Construction Projects
o   Secondary School computer classroom)                                   $80,000
o   Primary School exterior paint and
classroom furniture                                                                   20,000
·      Scholarships
o   17 existing students (last half of current school year)               68,000
o   17 existing students (first half of new school year)                    34,000
o   15 new students (first half of new school year)                           30,000
·      Micro-financing projects                                                                       100,000
·      General Fund (miscellaneous expenses)                                                 20,000

TOTAL                                                        $352,000




Table 5
Cash on Hand and Potential Other Sources of Revenue for 2012

Cash balance forward from 2011 (actual)                                                      $105,638
Individual donations (estimate based on 2011 results)                                     110,000
Dinner & Silent Auction (estimate based on 2011 results)                        100,000
50/50 Draw (estimate based on 2011 results)                                                     10,000
EDM Charity Golf Tournament (estimate based on 2010*)                               80,000

                  TOTAL                                                                            $405,638

* No contribution was provided by EDM in 2011
                 



Other FOB Business

FOB Management is currently evaluating the benefits and costs associated with registering FOB as a non-profit “Civil Association” under Mexican law. We have had two meetings with a “notario” and one with an accountant to help us understand the process, benefits and costs. We expect to make a final decision as to whether or not to proceed by January 15, 2012. Our decision will be communicated by post at www.FOBNews.org.  We are hoping that one of the major benefits will be tax-deductible receipts for American and Canadian donors.

FOB Management Team
·        Dale and Lynda Lyster of Calgary, Canada. dlyster@shaw.ca   Condo 117, EDM, Mexico
·         Dick McGuire of Virginia Dale, Colorado. krisvadale@aol.com Condo 105, EDM, Mexico

Contact any team member for information concerning project activities, updates, questions and ways that you can help.