SUMMARY

We provided unqualified opinions on the Fund’s financial statements for the fiscal years ended June 30, 2004, 2003, 2002, and 2001. Changes in reinsurance and increases in claims caused net losses for the three-year period ended June 30, 2003, but increases in policyholder premiums allowed the Fund to end FY 2003-04 with net income of $9.2 million. We reported a material weakness in internal controls related to the premature destruction of claim files.