The financial statements and schedules of the Foundation for 2004 and 2003 have been audited by KPMG llp.  They include the balance sheets, statements of activities and cash flows, and schedules of management and investment expenses.

Investment income for 2004 was $20,840,906, a decrease of $2,409,023 from $23,249,929 in 2003.  After the deduction of investment expenses and provision for taxes, net investment income was $11,371,572 in 2004 as compared with $16,329,528 for the prior year.  Investment expenses during 2004 totaled $6,744,334 of which $4,345,214 represented investment management fees and expenses.  The provision for taxes amounted to $2,725,000.  The total of these deductions from investment income in 2004 was $9,469,334 versus $6,920,401 in 2003. Total investment gains for 2004 were $181,054,706 as compared with $255,917,264 in 2003.

Grants authorized (net of grant refunds) and management expenses during 2004 totaled $66,492,347, which was $55,120,775 greater than 2004 net investment income.  Of this total, grants authorized (net of refunds) amounted to $60,420,669 while management expenses were $6,071,678.  Since the Foundation's inception in 1934, the cumulative excess of grants and expenses over the Foundation's net investment income has amounted to $375.6 million.

Grant payments in 2004 were $59,727,832 compared with $65,045,903 for the prior year.  Together with management expenses, investment expenses, taxes paid and other charges, the total of cash expenditures net of grant refunds in 2004 was $74,427,700 while in 2003 the amount was $77,784,435.

Grants authorized and payments made during the year ended December 31, 2004 are summarized in the following table:

Grants unpaid at December 31, 2003	$ 59,607,010)
Authorized during 2004	60,705,191)
Payments during 2004	(59,727,832)
Grants unpaid at December 31, 2004	$ 60,584,369)