APPROVED MINUTES January 23 2013

Trustees of Trust Funds Milton, New Hampshire

Minutes of the Meeting Tuesday, January 23 2013
Board Members Present: Lisa Stewart, Chairman; Marion Trafton, Treasurer; and Karen Brown, Trustee. The Meeting of the Trustees was called to order at 11:15 AM. The Pledge of Allegiance was recited. 1. Approve the Minutes of the Trustees December 28 2012 and January 19 2013 Meetings a. Minutes of the Trustees December 28 Meeting The minutes of the Trustees December 28 Meeting were initially reviewed by the Trustees on January 19 and approved subject to the Chairmans final review. As follow-up on the Trustees January 19 motion, the final draft minutes of the December 28 Meeting were presented to the Board with the clarification on page 3 as follows: on December 18 Marion Trafton received a voucher from the Town dated December 6 requesting from the Trustees for a second time reimbursement for the foregoing expenditures which were paid by the Trustees on November 19 and which payment to the Town was processed by the Town Office on November 20." MOTION: Marion Trafton motioned to approve the final draft minutes of the Trustees' December 28 meeting with the clarification as noted. Karen Brown seconded. The motion carried unanimously. It was noted by the Trustees that, with only a few exceptions in recent years, the vouchers issued by the Town Administrator on behalf of the Town for payments from Capital Reserve Funds provided instructions to the Trustees consistent with the Selectmens motions to pay directly the vendors with whom the Town had contracted. In December 2012 the payment instructions set forth in vouchers issued to the Trustees reflected a change in this prior practice. However, effective January 2013 the Towns policy will be to pay directly the vendors it contracts with and seek reimbursement from the relevant Capital Reserve Fund (CRF). The Trustees agree with the Interim Town Administrator that establishing a policy which encourages consistent financial practices should resolve the recent issue of the Towns duplicative requests for payment or reimbursement and ensure for all transactions that the Town is in compliance with Federal filing requirements (i.e. obtaining the IRS Form W-9 from the Towns vendors at the inception of the transaction and issuing in January the Form 1099 for payments in excess of $600 issued to entities which are not incorporated). The Trustees noted that the document requirements for issuing payments from CRFs, initially established by the Trustees in 2009, remain unchanged. Therefore, before a payment will be issued by the Trustees from a CRF the Trustees must be in receipt of the requisite supporting documentation including a signed

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voucher, minutes of the governing body authorizing the expenditure and the applicable invoicing or contract if required for the transaction. In addition, the purpose of the expenditure must be consistent both with the intent of the Warrant Article establishing the relevant CRF and with State law. b. Minutes of the Trustees January 19 Meeting The Trustees reviewed a draft of the minutes of the Trustees January 19 meeting to be presented for approval at the Trustees next meeting in February.
2. Document the transfer of the files of the Ira S. Knox Fund (Durgin Fund) from the

Town to the Trustees The Trustees noted that they were scheduled to meet today at 11:00 AM with the Interim Town Administrator to document the transfer of the files of the Ira S. Knox Fund (Durgin Fund) from the Town to the Trustees but the Interim Town Administrator decided not to attend the meeting. Karen Brown stated that she would briefly review the general contents of the files and requested that Marion Trafton and Lisa Stewart review in further detail on behalf of the Board of Trustees the contents of the files. At approximately 11:35 AM, the Trustees obtained the files of the Ira S. Knox Fund (Durgin Fund) from Kathy Wallingford who presented the files to the Trustees on behalf of the Interim Town Administrator who was holding these files which were previously in the custody of the Town Treasurer. The Trustees are aware that the files also may have been in the custody of other agents of the Town but the Trustees do not have specific information regarding the individuals who have had custody of the files. The files as presented to the Trustees were enclosed in a medium size Priority Mail box with the following dimensions: 12 1/8 X 13 3/8 X 2 . The Trustees opened the box and briefly noted the contents contained in two separate 8 X 11 green file folders. Karen Brown left the meeting. Marion Trafton and Lisa Stewart documented for the Board of Trustees the contents of the files as follows: i. Sealed envelope containing a check from Consolidated Edison, Inc. addressed to the Town Treasurer. This check appeared to be the Funds quarterly dividend payment from Consolidated Edison, Inc. Later in the meeting, the sealed envelope was returned by Marion Trafton to the Town Office requesting that the Town Treasurer sign over the check to the Ira S. Knox Fund (Durgin Fund) or to the Trustees of Trust Funds for the benefit of the Ira S. Knox Fund (Durgin Fund). ii. Two stock certificates (numbers NY 62103 and NY 62104) each representing 66 shares of Consolidated Edison, Inc. (for a total of 132 shares) contained in an envelope mailed to the Town on May 7 2012 from the "Lost Securities Department" in Pittsburgh, Pennsylvania. The certificates were reissued on May 4 2012 in the name of the Town Milton New Hampshire. The Trustees noted that the certificates should have been reissued in the name of the Fund, i.e. Ira S. Knox Fund (Durgin Fund), which is the legal owner of the stock. iii. January - December 2012 a. The Treasurers Report for February 2012 October 2012 for the Federal Savings Bank balances and for January 2012 for the TD Bank balances.

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b. The Funds bank deposits were transferred in January 2012 from the TD Bank to the Federal Savings Bank. The Treasurers Report states that the funds held in the Demand Deposit Account (DDA) (referred to as the Municipal Interest Checking Account in the TD Bank statements) were transferred to the Federal Savings Bank on January 26 2012. The TD Banks January and February 2012 statements of the Municipal Interest Checking account were provided. c. The Federal Savings Bank statements consolidating the Towns Elite Cash Management account and Enterprise checking into one monthly statement were provided for the months of January, February, April, May, June and October whereas for the months of March, July, August and September a document entitled Summary of Activity (unofficial statement) was provided which document does not contain any reference to the Bank (except for its e-mail address) but does provide reference to the corresponding account numbers. There were no official statements or unofficial statements provided for the months of November and December. Marion Trafton stated that she would contact the Town Treasurer to obtain the November and December 2012 statements. The name on the Federal Savings Bank statements is: Town of Milton Durgin Fund d. The Trustees noted there were Account Analysis fees charged against the account by the Federal Savings Bank thereby reducing the net yield on the account. While there was a written note in June 2012 indicating these service fees were to be credited back to the account it was not clear if the fees were credited back. e. Documentation dated May 24 2012 submitted by Joanne Smith Finance to the Town Treasurer requesting to have the Durgin Fund reimburse the Towns General Fund for the following items: $277.37 Town of Milton $1,000.00 Certified Computer Solution $6870.00 Certified Computer Solution $460.17 Per 2011 Audit prior year outstanding reimbursement Total: $8,607.54 Copy of check from Town of Milton Durgin Fund (which check does not include an address or a check reference # at the upper right corner but does include the Bank reference 54-7001/2114) issued on May 29 2012 by the Town Treasurer in the amount of $8,607.54. The Memo section is blank. The Treasurers report indicates that Check #101 was issued on May 29 2012. Copy of page 4 of the Selectmens May 21 2012 minutes providing the relevant motion: Mr. Mincu said he has the final amount of $7,870.00 for the cost to upgrade the Towns Computer systems.

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MOTION Selectman Srnec moved to sign a new contract with Certified Computer Solutions in the amount of $7,870.00 with the funds to be released from the Durgin Fund. Selectman Bridges seconded. The motion carried unanimously 3-0. The authorized amount was underlined and highlighted in bold in the Selectmens minutes. Copy of letter addressed to the Board of Selectmen by the former Town Administrator on May 21 2012 stating: Dear Selectmen, I am requesting the amount of $7,870.00 to be released from the Durgin Fund for computer related expenses as referred to in Estimates #6883 & #6884 from Certified Computer Solutions. Sincerely,

Anthony Mincu Town Administrator There was no further documentation included in the files to substantiate the expenditures in excess of the amount authorized by the Selectmen on May 21 2012. iv. January December 2011 a. The Treasurers Reports of both the TD Bank Certificate of Deposit (CD) account and the Municipal Interest Checking Account which is referred to as the Demand Deposit Account (DDA) were provided for January December 2011. b. The TD Bank statements were provided both for the CD account from January to December 2011 and the DDA from January to December 2011, except that the May 2011 DDA statement was not provided. The name on the TD Bank CD statements is: Town of Milton Durgan Fund (sic) The name on the TD Bank DDA statements is: Town of Milton Residuary Legatee U/W Alta M. Durgin c. There was a Bank withdrawal slip dated June 30 2011 that was stapled to the September 2011 Bank statement reflecting a withdrawal from the CD account in the amount of $5,000 on June 30 2011. d. The Treasurers Report indicated that $5,000 was paid from the Funds CD account in 9/2011 to Police Detail.

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e. There was a Bank commercial deposit slip dated November 29 2011 that was stapled to the November 2011 DDA statement reflecting a deposit of $5,000 to the DDA on November 29. v. January December 2010 a. The Treasurers Reports of both the CD and DDA accounts were provided for January December 2010. b. The TD Bank statements were provided both for the CD account from January to December 2010 and the DDA from January to December 2010. vi. January December 2009 a. The Treasurers Reports of the CD and DDA accounts were provided for January December 2009. b. The TD Banknorth/TD Bank statements were provided for the CD account from January to December 2009, except that for the month of June a letter from the Bank providing YTD interest credit and balance information was provided in lieu of the statement for that month. The TD Banknorth/TD Bank statements were provided for the DDA from January to December 2009. vii. January December 2008 a. The Treasurers Reports of the CD and DDA accounts were provided for January December 2008. b. The TD Banknorth statements were provided for the CD account from February to December 2008 and a computer generated account history document was provided in lieu of a January 2008 statement. The TD Banknorth statements were provided for the DDA from January 2008 to December 2008. Ending in February 2008, the DDA was referred to as a NH Municipal Insured Money Market. viii. January December 2007 a. The Treasurers Report of CD interest payments and ending balances from January to December 2007 was provided. The Treasurers Report of the TD Banknorth NH Municipal Insured Money Market account from January to December 2007 was provided. b. The Trustees were not able to find in the files of the Fund any of the Bank statements for the CD account. The TD Banknorth statements of the NH Insured Money Market account were provided from January to December 2007. c. It appears that there were several disbursements made from the Fund in 2007 including one to Crown Point Survey & Engineering, LLC for survey work and another two disbursements to the Recreation Department for Town events. Some documentation was provided for each of the transactions. Regarding the expenditure for the survey work, the Trustees noted that there was a

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letter issued by the former Town Administrator Chris Rose on April 10 2007 to the Town Treasurer requesting a disbursement from the Durgin Fund in the amount of $836.75 to Crown Point Survey & Engineering, LLC for survey work on the old Police Station site which item Mr. Rose noted was approved by the Selectmen on June 6, 2005. The Trustees noted that the old Police Station site was located at Map 42, Lot 134. The Town includes this property in its list of Town-owned property. It is this property which the Subcommittee on the Ira S. Knox Fund noted in August 2012 may be correlated with the former Durgin House property (House and land east side 400 referenced in the 1946 Annual Report of the Town). Marion Trafton noted that the Town appropriated (in 1947) the funds to pay for the House and land east side 400 property but there is no record of those funds being paid to the Trust Fund. Specifically in the 1949 Annual Report of the Town the Executor of Alta M. Durgins Estate, E.J. Burnham, states that The real estate in Milton was sold, except the house taken over by the town for an office The Town would have been required to pay for this property because the rest and residue of Mrs. Durgins property was to be held in trust by the Town for Mrs. Durgins nephew Winslow Hayes paying to him the income therefrom. Mr. Hayes passed away in 1960. Subsequently while the Town became the income beneficiary of the Ira S. Knox Fund pursuant to Mrs. Durgins Will, the Fund would have remained the legal owner of the property. Marion Trafton noted that the building that once housed the Town Office, then subsequently the old Police Station was torn down leaving a vacant lot. The Trustees noted this issue involving Map 42, Lot 134 is separate and in addition to the Funds investment in 1987 in the former Indian Head Bank Building/Town Office located at Map 42, Lot 122, which property was sold by the Town in 2006. ix. January December 2006 a. The Treasurers Report of CD interest payments and ending balances were provided. The Treasurers Report of the TD Banknorth Money Market account was provided from January 2006 to December 2006. b. The TD Banknorth statements of the Business Money Market account were provided from January to October 2006 and the TD Bank statements of the NH Municipal Insured Money Market were provided from November to December 2006. c. The 2006 TD Banknorth statements of the CD account were provided for the months of January, February, March, April and June. x. January December 2005 a. The Treasurers Report of the Bank of New Hampshire/TD Banknorth Business Money Market account from January to December 2005 was provided. b. The Bank of New Hampshire statements of the Business Money Market account from January to April 2005 were provided. The TD Banknorth statements of the Business Money Market account from May to December 2005 were provided.

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The name on the Bank of New Hampshire statements is: Town of Milton Residuary Legatee U/W Alta M. Durgin The TD Banknorth statements of the CD account were provided for the months of November and December 2005. The name on the TD Banknorth statements of the CD account is: Town of Milton c. It appears from the records that there was one disbursement made from the Fund in 2005 to the Milton Parent Teacher Association. In addition, the Treasurer purchased a CD in the amount of $48,000. Some documentation was provided for each transaction. xi. January December 2004 a. The Treasurers Report of the Bank of New Hampshire Business Money Market Account from January to December 2004 was provided. b. The Bank of New Hampshire statements of the Business Money Market account from January to December 2004 were provided. It does not appear from the records that there was a separate CD account in 2004. c. There was a disbursement made from the Fund in 2004 to Blow Bros. for the Fourth July parade. xii. January December 2003 a. The Treasurers Report of the Bank of New Hampshire Checking Account/Business Money Market Account from January to December 2003 was provided. b. The Bank of New Hampshire Business statements of the Checking Account from January to June 2003 were provided; and statements of the Business Money Market account were provided from July to December 2003. xiii. January December 2002 a. The Treasurers Report of the Bank of New Hampshire Checking Account from January to December 2002 was provided. b. The Bank of New Hampshire statements of the Checking Account from January to December 2002 were provided. c. It appears from the March 2002 Bank statement that the amount of $15,487.50 was deposited to the account on March 29 2002 by Treasury Direct. d. The Treasury Direct statement dated April 5 2002 was provided. e. It appears from the 2002 files of the Fund that there was a disbursement in 2002 to the Veterans of Foreign Wars.

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xiv. January December 2001 a. The Treasurers Report of the Bank of New Hampshire Checking Account from January to December 2001 was provided. b. The Bank of New Hampshire statements of the Checking Account from February to December 2001 were provided. The Trustees were not able to locate in the files of the Fund the Bank of New Hampshires January 2001 statement of the Checking Account. c. It appears from the 2001 files of the Fund that there were multiple disbursements in that year including payments issued to the Milton Friends of Music; DARE; Milton Senior Babe Ruth; the Milton Recreation Fund; the Town of Milton Sewer Account; and two payments to the Bob Bennett Memorial Fund. Limited documentation was provided for these transactions. Karen Brown returned to the meeting around 4:00 PM and the Trustees summarized the contents of the files. It was noted that the Trustees were provided with Bank records from 2001 to 2007 which were not complete and from 2008 to October 2012 which were mostly complete. There were no Bank records prior to 2001 in the files of the Fund. The files included two copies of Alta M. Durgins 1938 Will, one that included Mrs. Durgins Codicils and the other that did not. No information has been provided to the Trustees regarding the whereabouts of Mrs. Durgins original Will document. The Trustees noted there were some miscellaneous pages attached to the left side of one of the green file folders which items the Trustees will list in their summary of records received. The Trustees noted the former Town Administrators response on July 3 2012 to the Trustees June 26 2012 RSA 91-A request for access to the records, files and other items of the Fund which stated: Please be advised that the documents you have requested under NH RSA 91A are presently not available. We anticipate having the documents available within a 2-3 week timeframe. At that time we will make available a copy of the pertinent documents, which unfortunately only go back to 1992. The existence or whereabouts of any other documentation prior to 1992 is presently unknown. The Trustees noted that the Town did not provide access to the Trustees to the records of the Fund in accordance with the foregoing letter. The Trustees agreed to issue a letter to the Town from the Subcommittee on the Ira S. Knox Fund (Durgin Fund) regarding the transfer of the records of the Fund from the Town to the Trustees and to include as an attachment the minutes of the Trustees January 23 meeting. The Trustees noted a recent article of Marylin Pikes in the Sunday paper which quoted a lovely essay written in 1951 by Harold B. Pinkham entitled Exit Henry Durgin. In this essay Mr. Pinkham refers to Henry I. Durgin, as an old country doctor who was one of the greatest men I have known. Mr. Pinkham also states that Alta Durgin gave his (Mr. Durgins) whole fortune, some $35,000, to the town of Milton subject to the conditions of the Ira Knox Trust Fund, they had no children.

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As noted by the Trustees, according to the Executor of the Estate of Alta M. Durgin, E.J. Burnham, as reported in the 1946 Annual Report of the Town as of December 31 1946, the combined value of the cash and securities of the Estate of Alta Durgin including the residue of $17,430.40 transferred from her husbands Estate and the accumulated income of both Estates was $29,085.32. While the amount cited in Mr. Pinkhams essay is greater than the amount reported in the 1946 Annual Report of the Town the difference may be in part attributable to the value of the three parcels of real estate that the Estate of Alta Durgin owned at the time, one of which the Trust Fund may still own. The Trustees noted that under State law the capital gains from the sale of the Funds stock in 1982 would have been added to the principal of the Fund and therefore would not be available for disbursement. The Trustees also noted that based on the Bureau of Labor Statistics Consumer Price Index - All Urban Consumers Index the present value of the 1946 Estate would be in todays dollars more than $300,000. The Trustees estimate of the value of the principal of the Fund based on the Trustees prior review of the Annual Reports of the Town includes the capital gain on the sale of the stock in 1982 but does not include any inflationary adjustment, the capital gain on the sale of the former Indian Head Bank building/Town Office or the possible ownership of a parcel of land that was originally a part of Mrs. Durgins Estate. 3. Motion to Adjourn the Meeting MOTION: Karen Brown motioned to adjourn the meeting at 4:25 PM. Marion Trafton seconded. The motion carried unanimously. Respectfully submitted,

Lisa Stewart, Chairman

Marion Trafton, Treasurer

Karen Brown, Trustee

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