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Annual Reports and Financial Statements 235th Annual Communication May 2-3, 2016 Deputy Grand Master Grand Treasurer Grand Secretary Finance Committee Grand Historian Grand Lecturer Proctor THE GRAND LODGE OF FREE AND ACCEPTED MASONS OF THE STATE OF NEW YORK For the period ending December 31, 2015

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Page 1: Grand Lodge of Free & Accepted Masons of the State of New York … · 2017-06-07 · 2 Masonic Conferences: CGMNA, Grand Encampment Triennial 2 Represent the Grand Lodge of New York

Annual Reportsand Financial Statements

235th Annual CommunicationMay 2-3, 2016

Deputy Grand Master

Grand Treasurer

Grand Secretary

Finance Committee

Grand Historian

Grand Lecturer

Proctor

The

Grand LodGe

of

free and accepTed Masons

of The

sTaTe of new York

For the period ending December 31, 2015

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©Copyright, 2016Paul M. Rosen

Grand Secretary of the Grand Lodgeof Free and Accepted Masons of the State of New York

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REPORT OF THE DEPUTY GRAND MASTERTo the Grand Lodge:

Brethren,The Deputy Grand Master’s Town Hall Meetings have been well received

by the Brethren and are of great value. They have created an important, two-way communication conduit that allows information to be effectively transmitted to the Brethren of this jurisdiction. These meetings were conducted with a spirit of honesty and transparency. Travelling throughout the jurisdiction to conduct Town Hall Meetings might seem like a lot of work, but the effort yielded great results!

It is interesting to note that the applications for the new 2016-2018 District Deputy Grand Master [DDGM] and Grand Lodge Staff Officer Selectees were distributed and appointed much earlier than in recent times. We personally contacted each of the District Deputy Grand Master and Grand Lodge Staff Officer Selectees by telephone and extended an invitation for them to “twin up” and apprentice behind the existing District leadership teams. I extend my thanks to the 2014-2016 District Teams for allowing the new leaders to get a “jump start” in their District. The District Deputy Grand Master and Grand Lodge Staff Officer Selectees were advised that this period is a time of preparation and planning and much would be required of them during the next term.

With the approval of Grand Master Thomas, we were able to launch the new NorthStar Project throughout the jurisdiction. As of this report, we were able to train approximately 425 Success Coaches, with more on the way. Hopefully, with each DDGM appointing a District Umbrella Chairman; two Success Coaches firmly embedded in each Lodge, and with the Grand Lodge Staff Officer supervising the implementation of the LSOME Program, we just might have the opportunity to finally break the nonproductive “revolving door” membership cycle we are currently experiencing. The Website Membership Referral System has transmitted 654 prospective membership leads to the District Deputy Grand Masters and another 277 to sister jurisdictions.

This second year for the Deputy Grand Master has been a time to set up the new Grand Lodge Masonic Trestle Board which includes Membership Development, Redistricting, Reshaping and making our Lodges stronger and more robust. We are pleased to note that many of the upcoming Grand Lodge initiatives are “right on target” with national trends and are confident that we are promoting worthwhile and useful programs for the future benefit of the Craft. We wish to thank Chairman R∴W∴Martin L. Kanter and the Deputy Grand Master’s Advisory Committee for their many hours of thought and commitment in preparing for the next few years. Detailed reports concerning these topics can be found elsewhere.

This year, we were able to participate in the Conference of Grand Masters of North America [CGMNA] which was held in Madison, Wisconsin. It is

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important to note that these conferences between Grand Lodges have proven to be of great value. This venue allows networking with other Grand Lodges where each Grand Lodge can freely share common problems, trends and compare the results of programs and initiatives.

As this term comes to a close, Lady Carla and I wish to express our sincerest gratitude to Grand Master William J. Thomas and Lady Susan for their friendship, guidance and assistance, especially in the areas of Grand Lodge administration and future planning. A Grand Master is, in reality, the CEO of a major corporation, and much skill, effort and experience is required to be an effective leader at this level. We genuinely appreciate your leadership skill, Grand Master Thomas, and thank you for your service to the Craft!

The summary of the travels of the Deputy Grand Master are included at the conclusion of this report. During our many travels we were always extended the hand of hospitality, friendship and brotherly love. We are truly blessed to have the opportunity of serving YOU in our beloved Craft!

Sincerely and fraternally,Jeffrey M. Williamson, Deputy Grand Master

2015-16 Summary of activity of the Deputy GranD maSter Number of Events Type of Event

1 St. John’s Weekend, Utica, NY 3 Dedications, Rededications & Anniversary Events12 Town Hall Meetings 1 Educational Assistance Programs: Utica 2 Masonic Conferences: CGMNA, Grand Encampment Triennial 2 Represent the Grand Lodge of New York in sister jurisdictions:

Grand Lodge of Rhode Island and Providence Plantations and Grand Lodge of Pennsylvania

59 Grand Lodge, Administrative, MMRL, Masonic War Veterans, Masonic Hall and Home Trustees Meetings and Teleconferences

1 Interfaith Breakfast 2 Apron Presentations/Homecomings14 In-State District Events and Dinners 1 Supreme Council, AASR, Indianapolis, Indiana 1 Florida Sojourners, three locations for awards 3 Grand Chapter, Grand Council, and Grand Commandery Annual

Meetings 1 Reception/Ball for the Heads of the above York Rite Bodies 1 Grand Master’s Day at Tappan 1 Grand Master’s Day at West Point 1 Grand Master’s Day Camp Turk 1 Masonic Toys for Tots Fundraiser 1 Communication Committee Meetings (The Empire State Mason &

Hiram’s Highlights)

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1 Masonic Youth Groups 1 Grand Master’s Cruise, Alaska 1 Symbolic Lodge Installations29 Local Lodge & District Activities 49 Related Bodies Meetings, Administrative & Events 2 Table Lodges 1 Philippines Day Parade, Oswego, NYC 1 Colonial Degree at Fort Niagara

REPORT OF THE GRAND TREASURERTo the Grand Lodge:

M∴W∴Grand Master, R∴W∴Deputy Grand Master, Distinguished Past Grand Masters, my colleagues of the Grand Line, both Elected and Appointed, and you, my esteemed Brothers, good morning. I cannot tell you all enough what a great honor and privilege it has been to serve you as your Grand Treasurer. In my travels around the state, I’ve witnessed many great works that Lodges and Districts are performing. I would like to thank the members of all of them for graciously accepting me into their homes.

Much work has been done to curtail unnecessary spending at all levels of Grand Lodge. Reductions have been seen at not only the Committee levels but each Brother of the Grand Line, right up to the Grand Master, has made a conscious effort to reduce their overall spending. Travel and overnight stays have been closely monitored and reviewed to determine the necessity. All Committees have been tasked similarly by the Grand Master to also examine the way they do business and to be fiscally responsible as well. The effort is ongoing and will no doubt be carried into the next budget year.

There is more to the job of the Grand Treasurer than meets the eye. Not only does the Grand Treasurer need to evaluate and review all expenses presented for payment by Grand Lodge, but the incumbent is also assigned as a member of many Committees which include financial and budgetary related issues. As a member of the Finance Committee, the Grand Treasurer should not only be a member but should have some input as to the expenses for the upcoming budget. More review and analyses are needed to better prepare for the spending for the years to come. In my capacity as a member of the Finance Committee and with an extensive background in finance, I am seldom asked for my input.

Additionally, the Masonic Brotherhood Foundation, Inc., needs attention as well. I expressed to the members of the Committee that they should meet more regularly. Currently, there are two meetings each year held four months apart. I feel that the assets they are entrusted with require more attention. Quarterly meetings should be held to review the activity of the previous quarter. Also, they should be doing their due diligence by interviewing other investment professionals. Currently, the investment advisor is a Brother, which poses conflict of interest issues and also limits the Committee’s ability to hold the advisor accountable for the performance of the overall portfolio. The members of the Committee have a fiduciary responsibility to you, my Brothers, and I have suggested that they interview outside investment professionals to manage our funds. My concerns have

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fallen on deaf ears and the business as usual attitude prevails. My Brothers, the current economic and fiscal climate we are in dictates that we be prudent in the handling of all of the funds of Grand Lodge.

Another concern I have is that since taking office, I endeavored to determine the salaries of all the employees of Grand Lodge. On every financial statement of Grand Lodge, the salaries are listed in two categories: Executive and Other. I have been stonewalled in every attempt to uncover this information. According to the Constitutions, the Grand Treasurer is responsible for all the approved budgeted items of Grand Lodge. Part of that includes the salaries of the employees. To date, I have not signed one check for any of the employees of Grand Lodge. However, I have signed checks for their benefits and retirement. My question here is why can’t we know what the salaries are of the people we employee?

I do need to recognize the efforts of the staff at Grand Lodge performing the day to day finance and budget operations. The Director of Finance, Mrs. Klara Bolotovsky, and her staff work tirelessly to handle the many intricacies of the budget of Grand Lodge. I am in contact with her on a regular basis and have done my best to assist her in her arduous task. Additionally, R∴W∴Richard W. Bateman is another valued member of the Grand Lodge administrative suite. His knowledge and commitment in delivering the most accurate information is tantamount to the success of Grand Lodge. So, I thank Mrs. Bolotovsky and R∴W∴Bateman for all their assistance and guidance during my tenure as your Grand Treasurer.

But there is one person who stands alone when it comes to assisting the Grand Treasurer in keeping an eye on the finances of Grand Lodge. My sincere thanks and appreciation goes to the Grand Secretary, R∴W∴Paul M. Rosen. R∴W∴Rosen is a tremendous asset in the Executive suite of Grand Lodge. I thank you Brother Rosen for all your assistance, and I truly enjoyed our time together as Secretary and Treasurer.

As I conclude my time with you as your Grand Treasurer, my Brothers, I again want to thank each one of you for entrusting me with the incredibly important job of guarding the treasury. I have enjoyed every minute of this awesome journey and look forward to strengthening those fraternal bonds with so many across the state. My Brothers, I pride myself on always doing not only the best I can do but doing the right thing for all. I can only think of one way to thank each of you for your confidence and trust in me, and that is to say that you all put the trust in me and I did the best I could to serve you.

M∴W∴Grand Master, I make a motion that this report be read in full and spread across the minutes of this communication of Grand Lodge.

May God bless each of you. May He watch over our military men and women wherever so dispersed

around the globe and bring them safely home. May He bless this great fraternity of ours.And may God bless the United States of America.Thank you.

Respectfully and Fraternally submitted, charLes caTapano, Grand Treasurer

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REPORT OF THE GRAND SECRETARY

To the Grand Lodge:Most Worshipful Grand Master, Right Worshipful Deputy Grand Master

and my Brothers all:This being the 235th Annual Communication of Grand Lodge, it is with

great pride that I come before this august body for the second time as your Grand Secretary to report on the Office of the Grand Secretary and its staff for the 2015 to 2016 term of my office.

Brethren, we have a staff of men and women who work at the Grand Secretary’s Office and are dedicated to serving each and every Brother in this great Jurisdiction of ours. I am especially proud of the way they have supported me, the third Grand Secretary with whom they have had to work in the last three years. They have accepted the changes I have sought to make in the way the office functions so that it is user-friendly. In effect, you are our customers and deserve to be treated with respect and in a courteous manner. The Office of the Grand Secretary strives to make every project for which we are responsible accurate and completed without mistakes and in a timely manner. I am proud to state that my entire staff works to get their assignments done in a manner which will bring credit to the Office of the Grand Secretary and this Grand Lodge. I can only hope that as we move in this direction that you all feel that you are being well-represented by the Office of the Grand Secretary.

I am constantly amazed by the number of Brothers who call and are surprised when I answer my phone personally or call them back myself. If you call me, you expect to talk to me, so it should not be a surprise when you get a call from me. You consider me and the Office of the Grand Secretary as a resource for the answers to your Masonic questions, therefore, my Office and I should be directly available to you to give you those answers. I have attempted to have myself and my staff provide you with the solution to your problems within 2 days of your request. Usually, it does not take that long to provide the solution to your requests or answer to your problems.

To those of you who have visited the Office of the Grand Secretary, you know that in an attempt to help the Trustees of the Masonic Hall and Home, we have moved much of our staff off the eighteenth floor and onto the fifteenth floor. This has contracted the footprint of the Grand Secretary’s office and will enable the Trustees of the Masonic Hall and Home to rent that more valuable real estate on the eighteenth floor at a substantially higher rate to benefit the members of this Great Grand Lodge. In connection with that move, we have cleaned out several storage areas and sold much of the inventory that we found. Those sales have resulted in the recapture of receipts of $1,882.00 from stale and outdated stored items.

Lodge Secretaries should now be familiar with and using the MORI registration system. That system holds the records of the Craft from approximately 1980 forward. The Trustees of the Masonic Hall and Home, to expedite our move from the 18th floor, helped the Office of the Grand Secretary plan for and then paid for the digitization of the remainder of the Card Catalogue records maintained by the Grand Secretary’s office. This old-fashioned Card Catalogue system held records from around

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1900. With their digitization, we can now electronically access records from roughly 1900 to the current date. Those historic records amount to well over 600,000 individual cards containing the Masonic records of over a century of past members of the Craft.

The Chancellor Robert R Livingston Masonic Library has diligently digitized the Lodge Historical Files, making it conveniently possible for Lodges to exercise their right and ability to retrieve those Files and to preserve for historic purposes the originals. You were advised that you should pick up those records. As a result of the consolidation and reorganization of the records of the Grand Secretary’s Office, we have recaptured significant storage areas and those records are now preserved for the Lodges in a safe and secure location. Our Lodges are encouraged to take possession of those records, otherwise, they shall remain securely saved by the Office of the Grand Secretary.

A big thank you goes to the Departmental Directors and their staffs, ready to serve your needs and answer your questions. They are as follows:

Accounting Department: Mrs. Klara Bolotovsky, Director of Finance, who works together with Ms. Jessica Cornejo and Miss Carol Yiling Cui, who share their time between Lodge Services and Bookkeeping; Ms. Lois A. Romano, Masonic Brotherhood Department and Customer Services; Mr. David Noonan, Registry Department Services and Mrs. Jacqueline Florencio, Lodge Services and Masonic Brotherhood.

Executive Office: R\W\Richard W. Bateman, General Manager, Grand Pursuivant, and Assistant Grand Secretary, and the dedicated Administrative staff, with Mr. Eric Cook, Administrative Assistant, Mr. David Cabral, Graphic Arts Specialist, Ms. Bridget H. Primo, Receptionist, and Ms. Rose L. Flanagan, P/T Secretary to the Grand Secretary.

Chancellor Robert R Livingston Masonic Library of Grand Lodge: By now, you should all know that R\W\Thomas M. Savini, Director, had resigned in August of 2015, and his capable staff has filled in during the remainder of the year that we were without a Director or Librarian. That absence has caused the Office of the Grand Secretary to become a more visible presence in the Library working with the Library Staff. That staff includes Ms. Catherine M. Walter, Curator and Editor of the Grand Lodge Proceedings, Ms. Georgia Hershfeld, P/T Cataloguer, Mrs. Roseann M. Huschle, Receptionist, and Brother Matthew J. Lentz, Archivist. Their dedication has allowed the Library to remain open with only the loss of the evening session one day a week. The Museum artifacts contained in our collection belong to the Grand Lodge. The Grand Secretary has been the officer who holds them on behalf of the Grand Lodge while they are housed in the Library. The Grand Secretary now requests that the Grand Lodge approve this arrangement that has been the operational methodology for the Museum collection housed in the Library. Going forward, it has been decided to divide the Masonic Library into two areas of responsibility: the Museum Collection, overseen by the Curator, and the Library Book Collection overseen by a Librarian. As I prepare this report, the Trustees of the Chancellor Robert R Livingston Masonic Library are seeking to hire a well-qualified Librarian to fill this new position.

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I must express a very special thanks to R∴W∴Richard W. Bateman, Assistant Grand Secretary, who has served this Grand Lodge for over twenty-five (25) years. Without his knowledge and administrative skills, we would find it difficult to function on an everyday basis. Thus, it would make it impossible to operate our Grand Lodge without the efficiency and dedication that he and these fine people bring to the job.

An additional cost savings to Grand Lodge was realized with the transfer of the full time Mail Room Clerk from the Grand Lodge staff onto the staff of Trustees of the Masonic Hall and Home, along with all of the mail processing equipment. .

I am happy to inform this Grand Lodge that the 2013 and 2014 Proceedings of the Grand Lodge of the State of New York have been printed and also placed upon CDs and have been distributed. Special thanks go to Ms. Catherine M. Walter who has worked so hard to bring the Proceedings up-to-date at the expense of her obligations as Curator. With her tremendous effort, Ms. Catherine M. Walter produces the accurate journals of what takes place at each of the Grand Lodge of New York’s Annual Communications. It is through her efforts that the Office of the Grand Secretary has been able to complete one of its most important Constitutional duties of the Office of the Grand Secretary.

More amazing is that she has also completed the 2015 Proceedings, which has been sent to the printer for printing and distribution. I am therefore happy to report that the Office of the Grand Secretary, for the first time in anyone’s memory, is now current in the production of the record of our Proceedings which have been as many as 6 years behind in their production. Along with the printed Proceedings, your Grand Secretary’s Office has continued to save a significant amount of money by having the Proceedings reproduced as a compact disc for distribution to every Lodge’s Secretary for its records, and limiting the number of hard copies produced. This saves on both printing and mailing costs. In an effort to save even more expense, and for the sake of expediency in the future, access will be made available by downloading the proceedings from the Grand Lodge Website should a Brother wish to have a copy of the Proceedings.

Once again, we will use our new Electronic-age Balloting System. This is especially time saving because of the number of candidates we have running for office at this Grand Lodge Session. It will also enable us to vote on the many changes to either our Constitutions or our Rules of Order that will be placed before you for your consideration this year. We sincerely thank the Chairman of the Technology Committee, R∴W∴Edward A. Chiani, for all his work and efforts that make this possible. I also thank the Trustees of the Masonic Hall and Home who have supplied all of the voting equipment.

Included in this Report, you will find the statistics of our membership, which continues to decline, even though an effort has been made to raise 987 new Brothers this year, plus the 266 who have been Restored and the 272 who have Affiliated.

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Please take a moment to review the Grand Secretary’s Membership Census Report, which is as follows:

2015 MEMBERSHIP CENSUSNumber of members (incl. dual/plural): December 31, 2014 39,766Net Adjustments for year 2014 (49)Revised number of members (incl. dual/plural): December 31, 2014 39,717

Initiated during 2015 1,126Passed during 2015 1,015Raised during 2015 987Affiliated during 2015 272Restored during 2015 266 1,525 41,242Unaffiliated during 2015 (1,082) Died during 2015 (1,178) Withdrew during 2015 (472) Expelled during 2015 (11) (2,743) 38,499Variance (128)Total Members (incl. dual/plural): December 31, 2015 (January 1, 2016) 38,371Gain/Loss (1,346) Adjustments for Dual/Plural Affiliations: (1,580)Total Members: December 31, 2015 (January 1, 2016) 36,791

Chartered Lodges in the State of New York Total Lodges: December 31, 2014 (January 1, 2015) 501Charters Forfeited in 2014 .............................................0Charters Surrendered in 2014 ........................................5New Charters Granted in 2014 ......................................0Charters Restored in 2014 ..............................................0Charter Changed ....................................................*1Charters Suspended ..................................................**1Consolidated 14 Lodges into 7 Lodges ....................... (7)*Kosciuszko Lodge No. 1085 petitioned the Grand Lodge to remove its location from the Bronx District to the Sixth Manhattan District (No effect on count).

**The Lodge of the United Services No. 1118 remains Suspended by Order of the Grand Master, pending the outcome of a Masonic Trial (No effect on the count).

Total Lodges: December 31, 2015 (January 1, 2016) 501Total Number of Lodges of Research 5Regular Lodges in the District Grand Lodge of Syria-Lebanon 10Suspended Lodge in the District Grand Lodge of Syria-Lebanon 1Lodge of Research in the District Grand Lodge of Syria-Lebanon 1

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During the year we have had a number of Lodges that have merged to form a successor Lodge that is stronger and more vibrant than either of the individual Lodges were before their Merger. A number of Lodges have either lost or Surrendered their Charters. All are reminded that if your Lodge is contemplating the eventual Surrender of your Charter, it is a Masonic offense to dispose of your assets, even for a noble or charitable purpose in contemplation of closing your Lodge. The property rightfully should be transferred to the Trustees of the Masonic Hall and Home for them to use for the benefit of distressed worthy Master Masons, their Widows and Orphans. It goes to help support them in our Assisted Living Community which otherwise does not cover the cost of their expenses because of the loss of funding from the State of New York. This use of Lodge funds for this purpose is one of the Obligations we all assumed when we became Masons, and the thought of not allowing the Lodge funds to go to comply with this Obligation should be abhorrent to all Masons. The Charter of The Lodge of United Services 1118, which had previously been Suspended, has now been Forfeited, as determined by a Masonic Trial Commission in 2016.

Brethren, many elderly Brothers have been dropped for non-payment of dues. We are initiating, passing and raising more Brothers then we are losing through death. If we reduce the number leaving us by reason of non-payment of dues we will reverse the slide in membership and begin to grow again. Every Lodge must seek to reduce the loss of longtime, elderly members who are unaffiliating or being dropped for non-payment of their dues. We must try and see how we can help our senior Brothers who have dedicated their lives to support this Craft.

In connection with this philosophy, we once again travelled to visit our Brothers now residing as permanent residents or have a snowbird residence in Florida. We had luncheons in Sarasota, Tampa and Palm Beach Gardens. Next year, we will plan to hold a luncheon in a community known as The Villages as well. We use these opportunities to visit with these Brothers so that they retain a connection with New York and their Grand Master. The Grand Chapter of the Order of the Eastern Star joins us annually in this effort. We also present Citations for years of Service to the Craft. It is hoped that through these visits, we will retain these Brothers. We have processed many requests by these Brothers to affiliate with Florida Lodges, thus continuing their dedication to our Craft.

We have been lucky enough to have the Masonic Medical Research Laboratory fund the issuing of 50-Year Aprons and the Trustees of the Masonic Hall and Home fund the 60 and, yes, even 70-Year Aprons. We make these Brothers happy and renew their dedication to the Craft when they are presented with these honors by our Grand Master.

My Brothers all, it has been an honor and a pleasure to have been able to serve you, our Grand Master, and this Administration and Grand Lodge, and I hope to continue to serve you in that capacity in the future. We have accomplished many goals, thanks to the dedication and hard work by all of you and especially by the staff of the Grand Secretary’s Office.

Respectfully submitted,paul m. roSen, Grand Secretary

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REPORT OF THE COMMITTEE ON FINANCETo the Grand Lodge:

The Committee on Finance submits the audited report on the books and records of Grand Lodge for the calendar year ended December 31, 2015, and the Budget for the year ended May 31, 2017.

The report of the Certified Public Accountants certifies that our financial statements for the year 2015 other than the effects of not adopting the Statement of Financial Accounting Standards No. 87 “Employers’ Accounting for Pensions”, as of January 1, 1989. It is the opinion of the Committee that the amounts involved for future pension liabilities are immaterial to the financial statements taken as a whole.

The Committee extends its thanks and appreciation to Most Worshipful William J. Thomas, Grand Master, and Right Worshipful Jeffrey M. Williamson, Deputy Grand Master, for their active participation and contribution to the Committee’s work.

Additional thanks are extended to Right Worshipful Paul M. Rosen, Grand Secretary, and Right Worshipful Charles Catapano, Grand Treasurer.

The Rules of Order require the Committee on Finance to submit a statement of Estimated Receipts and Disbursements for the Trustees of the Masonic Hall and Home for the year ended December 31, 2016. This statement is appended to the report.

Respectfully submitted, aLan J. Berk, Chairman

chrisTopher L. aLLen wiLLiaM MccauLeY

charLes caTapano, GT sTephen a. ruBin Judge Advocate

Marino cesarini, PGT Gordon J. whiTinG

sTephen s. kinG, PJGW

david f. schneeweiss, Advisor

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TrusTees of Masonic Hall & asyluM fundHOME, HALL & ADMINISTRATION

Statement of Estimated Revenue and Expenses

January 1, 2016 - December 31, 2016

Income: Masonic Care Community $37,098,776Expenses: Masonic Care Community $42,355,949 Revenue or (Deficit): ($5,257,173)

Income: Acacia Village $ 4,491,960 Expenses: Acacia Village $ 2,378,600 Revenue or (Deficit): $2,113,360

Income: Camp Turk $ 548,750 Expenses: Camp Turk $ 507,510 Revenue or (Deficit): $41,240

Income: Washington Historic Site (Tappan) $ 5,030 Expenses: Washington Historic Site (Tappan) $ 156,850 Revenue or (Deficit): ($151,820)Income: Masonic Hall $14,775,610 Expenses: Masonic Hall $ 6,793,900 Revenue or (Deficit): $7,981,710

Operating Expenses New York City: Investment Fees $ 900,000 Interest Expense $ 240,000 Legal Fees $ 150,000 Salaries - Office Staff $ 400,000 Travel, Symposia & Conferences $ 75,000 Other Professional Fees $ 600,000 Fraternal Services $ - Mail Room $ 80,000 Telephone Expense $ 35,000 Public Relations $ 50,000 Insurance $ 255,000 Miscellaneous and Other Expense $ 100,000 Administrative Expenses $ 65,000 Marketing & Promotional Material $ 60,000 Total: ($3,010,000)

Other Program Expenses: Educational Assistance $ 450,000 Empire State Mason $ 280,000 Livingston Masonic Library $ 189,000 Round Lake Facility $ 293,465 Total: ($1,212,465)

Other Income: Wills, Bequests & Trusts $ 1,000,000 Miscellaneous Income $ 675,000 Total: $1,675,000Net Operating Gain or (Loss): $2,179,852

Capital Expenses: M.C.C. (includes Round Lake & Acacia Village) $ 1,700,215 Masonic Hall $ 2,801,000 George Washington Site at Tappan $ 23,750 Total: ($4,524,965)Anticipated Excess of Expenses Over Income Funded by the Investment Accounts ($2,345,113)

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THE GRAND LODGE COMMITTEE ON FINANCE RECOMMENDS THE PASSAGE OF THE FOLLOWING

PROPOSED 12-MONTH FISCAL YEAR 2016-2017 BUDGET OF THE GRAND LODGE OF FREE AND ACCEPTED MASONS OF

THE STATE OF NEW YORK

(JUNE 1, 2016 through MAY 31, 2017)

operaTing revenue & oTHer supporT:Fees & Dues $1,344,397 Lodge Services (Net) 110,000ToTal revenue & supporT $1,454,397

operaTing expenses:Annual Communication $173,500 Print & Distribution of Proceedings 22,000 Transition to New Grand Master 13,000 Salaries and Related Costs 903,169 Grand Lodge Office Expense 158,380 Grand Lodge Officers’ Travel 136,800 Grand Lecturer’s Costs 41,000 Committee Expenses 163,450 Insurance 102,000 Retirement Assistance 0 Other Masonic Endeavors 74,500ToTal operaTing expenses $1,787,799

cHange-neT asseT Before non-operaTing revenue and oTHer supporT ($333,402)

non-operaTing revenue & oTHer supporT:Investment Income $150,000 Grand Lodge Fund 3,000 Legacies 0 Other Income (Net) 181,100ToTal non-operaTing revenue & oTHer supporT $334,100

Change in Net Assets $698

grand ToTal surplus / deficiT $698

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GRAND LODGE OF FREE AND ACCEPTED MASONS OF THE STATE

OF NEW YORK AND RELATED COMMITTEES

FINANCIAL STATEMENTS

DECEMBER 31, 2015

(WITH INDEPENDENT AUDITORS’ REPORT)

TABLE OF CONTENTS

Independent Auditors’ Report

Financial Statements

Statement of Financial Position

Statement of Activities

Statement of Cash Flows

Notes to Financial Statements

Supplementary Schedules to Statement of Activities

Schedule of Fees and Dues Schedule 1

Schedule of Lodge Sales Schedule 2

Schedule of Recoverable Expenses, Investment Income and Other Income (Expense) Schedule 3

Schedule of Annual Communication and Salaries and Related Costs Schedule 4

Schedule of Grand Lodge Office Expenses and Grand Lodge Officers’ Travel Expenses Schedule 5

Schedule of Grand Lecturer’s Cost and Committee Expenses Schedule 6

Schedule of Insurance Costs and Other Masonic Endeavors Schedule 7

LipskY Goodkin & co., p.c.

cerTified puBLic accounTanTs

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LIPSKY, GOODKIN & CO., P. C.CERTIFIED PUBLIC ACCOUNTANTS

120 WEST 45TH STREETNEW YORK, NEW YORK 10036

(212) 840-6444 FAX (212) 921-7186 MEMBERS

AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS

_____________

N.Y. STATE SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS

INDEPENDENT AUDITORS’ REPORT

To The Grand Lodge of Free and AcceptedMasons of the State of New Yorkand Related Committees:

We have audited the accompanying statement of financial position of The Grand Lodge of Free and Accepted Masons of the State of New York and Related Committees (the Grand Lodge) (a nonprofit organization) which comprise the statement of financial position as of December 31, 2015, and the related statements of activities and cash flows for the year then ended, and the related notes to the financial statements.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Basis for Qualified Opinion

As more fully described in Note 6 to the financial statements, the Grand Lodge has not determined the cost of its defined benefit pension plan in accordance with accounting principles generally accepted in the United States of America, which require the cost of employees’ pensions to be recognized over the employees’ respective service periods and a liability to be recognized when the accumulated benefit obligation exceeds the fair value of plan assets. Quantification of the effects of that departure on the financial statements is not practicable.

Qualified Opinion

In our opinion, except for the effects of the matter discussed in the Basis for Qualified Opinion paragraph, the financial statements referred to in the first paragraph present fairly, in all material respects, the financial position of the Grand Lodge as of December 31, 2015, and the results of its operations and its cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

Other-Matter

Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The supplementary information, included in schedules 1 through 7, is presented for purposes of additional analysis and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole.

New York, New York

March 4, 2016

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GRAND LODGE OF FREE AND ACCEPTED MASONSOF THE STATE OF NEW YORK AND RELATED COMMITTEES

STATEMENT OF FINANCIAL POSITION

DECEMBER 31, 2015

ASSETS Cash $1,005,575 Accounts receivable: Fees and dues $1,257,831 Other receivables 59,743 Total accounts receivable 1,317,574 Inventories 77,796 Accrued dividends receivable 6,542 Investments - at fair value 6,815,292 Prepaid expenses 81,580 Office equipment, net of accumulated depreciation $ 259,863 7,946

TOTAL ASSETS $ 9,312,305

LIABILITIES AND NET ASSETS Accounts payable and accrued expenses $ 266,770 Due to Masonic Brotherhood Foundation, Inc. 93,756 Transferable to Trustees of the Masonic Hall and Home: Fees and dues $ 56,056 Box of remembrance 1,353 Accrued expenses 212,767 Total transferable to Trustees 270,176 Deferred income 24,018 Other liabilities 45,192 Total liabilities 699,912

NET ASSETS Undesignated Fund $7,720,224 Grand Lodge Fund 492,169 Board Designated Fund 400,000 Total net assets 8,612,393

TOTAL LIABILITIES AND NET ASSETS $ 9,312,305

See Accompanying Notes to Financial Statements.

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GRAND LODGE OF FREE AND ACCEPTED MASONSOF THE STATE OF NEW YORK AND RELATED COMMITTEES

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2015

CASH FLOWS FROM OPERATING ACTIVITIES: Increase in net assets $ 238,159

Adjustments to reconcile increase in net assets to net cash provided by operating activities: Depreciation 4,220 Net change in unrealized gain on investments 387,503

Changes in operating assets and liabilities Accounts receivable 54,719 Inventories 3,217 Accrued dividends receivable (2,482) Prepaid expenses (7,884) Accounts payable and accrued expenses (6,247) Due to Masonic Brotherhood Foundation, Inc. 60,409 Transferable to Trustees 50,931 Deferred income (585) Other liabilities (3,450)

Net Cash Provided by Operating Activities 778,510

CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of equipment (1,005) Purchase of investments (2,369,974) Sale of investments 1,960,379

Net Cash Used In Investing Activities (410,600)

INCREASE IN CASH 367,910

CASH - BEGINNING OF YEAR 637,665

CASH - END OF YEAR $ 1,005,575

See Accompanying Notes to Financial Statements.

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GRAND LODGE OF FREE AND ACCEPTED MASONSOF THE STATE OF NEW YORK AND RELATED COMMITTEES

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2015

NOTE 1 - ORGANIZATION

Organization

The Grand Lodge of Free and Accepted Masons of the State of New York (the “Grand Lodge”) was established as the overall authority of Masonry in the State of New York. The Grand Lodge is a nonprofit organization exempt from federal income tax under Section 501(c)(10) of the Internal Revenue Code.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Financial Statement Presentation

The classification of an organization’s net assets and its support and expenses is based on the existence or absence of donor-imposed restrictions. It requires that the amounts for each of three classes of net assets-permanently restricted, temporarily restricted, and unrestricted be displayed in a statement of financial position and that the amounts of change in each of those classes of net assets be displayed in a statement of activities.

Basis of Accounting

The financial statements of the Grand Lodge are prepared on the accrual basis of accounting and, accordingly, reflect all significant receivables, investments, payables, and other liabilities in accordance with accounting principles generally accepted in the United States of America as applicable to nonprofit organizations.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of certain assets and liabilities and disclosure of contingent liabilities at the date of the financial statements. They also affect reported amounts of revenues and expenses during the reporting period. Actual results could differ from those amounts.

Fair Value Measurement

Pursuant to the provision described in ASC 820, Fair Value Measurement and Disclosures (formerly Statement of Financial Accounting Standards 157) the Grand Lodge categorizes its financial instruments into a three-level fair value hierarchy that prioritizes the inputs of valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). Valuation of assets and liabilities traded for less active dealer or broker markets that have significant observable inputs are classified as Level 2. Level 2 valuations are usually obtained from third party pricing service valuations for identical or similar assets. If the inputs are used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the instrument.

The Grand Lodge’s investments consist of marketable equity securities and fixed income securities, which are classified as Level 1 in the fair value hierarchy.

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GRAND LODGE OF FREE AND ACCEPTED MASONSOF THE STATE OF NEW YORK AND RELATED COMMITTEES

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2015

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Contributions

Contributions received are recorded as unrestricted, temporarily restricted, or permanently restricted support, depending on the existence and/or nature of any donor restrictions.

Promises To Give

Unconditional promises to give, less an allowance for uncollectible amounts, are recognized as revenue in the period received as an asset. Conditional promises to give are recognized when the conditions on which they depend are substantially met.

Fees and Dues

Fees and dues are reportable and payable by the various Member Lodges in New York State based upon the preceding year’s membership census and are recorded as revenue in the current year of the Grand Lodge.

Investments

Investments in securities are reported at their fair values, with gains and losses included in the statement of activities.

Deferred Revenue

Revenue received for future special events is deferred and recognized in the periods to which they relate.

Subsequent Events

The Grand Lodge has evaluated subsequent events through March 4, 2016, which is the date the financial statements were available to be issued, and concluded that no subsequent events have occurred that would require recognition in the financial statements or disclosure in the notes to the financial statements.

Tax Status

The Grand Lodge is an organization exempt from federal income taxation under Section 501(c)(10) of the Internal Revenue Code. The Grand Lodge is required to file and does file tax returns with the Internal Revenue Service and other taxing authorities and has years open for examination by the taxing authorities from 2012 through 2015.

NOTE 3 - INVENTORIES

Inventories at December 31, 2015 consist of merchandise and lodge supplies available for sale to Member Lodges.

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GRAND LODGE OF FREE AND ACCEPTED MASONSOF THE STATE OF NEW YORK AND RELATED COMMITTEES

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2015

NOTE 4 - INVESTMENTS

Investments in securities are stated at their fair values based on quoted prices in active markets (all Level 1 measurements) and are summarized as follows at December 31, 2015:

Fair Cost Value

Equity securities $6,718,433 $6,815,292

In 2015, the change in the net unrealized gain on investments decreased $387,503. This non-cash item is combined in the statement of activities and reported as net realized and unrealized gain on investments and in the statement of cash flows as net change in unrealized gain on investments.

NOTE 5 - CONCENTRATION OF CREDIT RISK

The Grand Lodge has bank deposits and money market fund investments which at times may exceed Federally insured limits.

NOTE 6 - PENSION PLAN

Retirement benefits for all eligible employees of the Grand Lodge and Livingston Library are provided under a non-contributory defined benefit pension plan. Pension costs under the plan for the year ended December 31, 2015 amounted to $150,150 exclusive of $12,211 for fees and expenses. The Grand Lodge has elected not to adopt Statement of Financial Accounting Standards No. 87 (Included in Accounting Standards Codification 715 Compensation - Retirement Benefits). An unaudited comparison of accumulated plan benefits and plan assets at September 15, 2014 (last valuation date) is as follows:

Actuarial present value of accumulatedplan benefits:

Vested $1,045,208 Non-vested - $1,045,208

Net assets available for benefits $1,138,134

The assumed rate of return used in determining the actuarial present value of accumulated plan benefits was 5.88% for 2015.

Accounting Standards Codification 715 - Compensation - Retirement Benefits includes SFAS No. 87 which changed the reporting of employers who sponsor defined benefit plans. The Grand Lodge has elected not to adopt SFAS No. 87 for reporting pension costs. The effect of such election on the financial statements is not known and has not been quantified. As a result, pension costs are not recorded in accordance with generally accepted accounting principles.

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GRAND LODGE OF FREE AND ACCEPTED MASONSOF THE STATE OF NEW YORK AND RELATED COMMITTEES

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2015

NOTE 7 - GRAND LODGE FUND

The Grand Master established the Grand Lodge Fund in 1999. The purpose of this fund is to preserve and protect the Masonic Brothers and Lodges and supplement the future operating revenues of the Grand Lodge.

NOTE 8 - RELATED PARTIES

Trustees of the Masonic Hall and Home

The Trustees of the Masonic Hall and Home consist of nine persons who are members of Lodges under the authority and jurisdiction of the Grand Lodge of Free and Accepted Masons of the State of New York. The Trustees are vested with the title and responsibility of operating the Masonic Hall in the City of New York and certain other properties. The net income derived from the operation of these properties is used to maintain the Masonic Home in Utica, N.Y.

In accordance with the constitution of the Grand Lodge, the Trustees receive a portion of the annual fees and dues of all Masons through the Grand Lodge which amounted to $ 55,703 for the year. At December 31, 2015, the Grand Lodge owed the Trustees $56,056 in annual fees.

On September 1, 2013 the Grand Lodge executed a memorandum of understanding with the Trustees, expiring on December 31, 2018, whereby the Grand Lodge occupies two floors in a building owned by the Trustees. Prior to September 1, 2013 the Grand Lodge was a month to month tenant. Effective January 1, 2015, the Grand Lodge leases 5,000 square feet on the 17th floor at a rate of $200,000 per year and the remaining space on the 15th floor is at the current market rate of $54,600 per year. The occupancy expense for 2015 amounted to $254,600.

In addition, the Grand Lodge executed a services agreement with the Trustees, expiring on December 31, 2018, where the Grand Lodge provides the Trustees with services in order to promote the carrying out of the Trustees’ charitable purposes and fund raising objectives. For 2015 the Grand Lodge recorded these fees for services as recoverable expenses which amounted to $467,208.

At December 31, 2015 the Grand Lodge owed the Trustees $212,767.

The Masonic Brotherhood Foundation Inc.

The Masonic Brotherhood Foundation paid the Grand Lodge $12,000 per month to cover administrative and payroll expenses incurred by the Grand Lodge on behalf of the Foundation. At December 31, 2015, The Grand Lodge owed the Masonic Brotherhood Foundation $93,756.

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SCHEDULE 1

GRAND LODGE OF FREE AND ACCEPTED MASONSOF THE STATE OF NEW YORK AND RELATED COMMITTEES

STATEMENT OF ACTIVITIES - FEES AND DUES

FOR THE YEAR ENDED DECEMBER 31, 2015

Fees and dues from lodges $1,463,105

Less amount transferable: Trustees of the Masonic Hall and Home: Fees and dues 23,656 Endowment Fund 25,567 George Washington Memorial Fund 6,480

Total 55,703

Fees and dues - net $1,407,402

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SCHEDULE 2

GRAND LODGE OF FREE AND ACCEPTED MASONSOF THE STATE OF NEW YORK AND RELATED COMMITTEES

STATEMENT OF ACTIVITIES - LODGE SALES

FOR THE YEAR ENDED DECEMBER 31, 2015

Sales $ 208,625Cost of sales: Inventory - beginning of year $ 81,013 Purchases 92,241 Goods available for sale 173,254 Inventory - end of year 77,796

Total cost of sales 95,458

Gross Profit 113,167

Expenses: Shipping and handling - net 11,260 Credit card fees 4,108

Total expenses 15,368

Lodge Sales - net $ 97,799

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SCHEDULE 3

GRAND LODGE OF FREE AND ACCEPTED MASONSOF THE STATE OF NEW YORK AND RELATED COMMITTEES

STATEMENT OF ACTIVITIES - RECOVERABLE EXPENSES,INVESTMENT INCOME AND OTHER INCOME(EXPENSE)

FOR THE YEAR ENDED DECEMBER 31, 2015

Recoverable Expenses: Masonic Brotherhood Foundation $ 144,000 Trustees of the Masonic Hall and Home 467,208

Total recoverable expenses $ 611,208

Investment Income - net: Interest and dividends - Undesignated $ 186,168 Interest and dividends - Grand Lodge Fund 9,799

Total investment income $ 195,967

Other Income (Expense): Cruise - net $ (10,743) Miscellaneous (53)

Total other income (expense) - net $ (10,796)

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SCHEDULE 4

GRAND LODGE OF FREE AND ACCEPTED MASONSOF THE STATE OF NEW YORK AND RELATED COMMITTEES

STATEMENT OF ACTIVITIES - ANNUAL COMMUNICATIONAND SALARIES AND RELATED COSTS

FOR THE YEAR ENDED DECEMBER 31, 2015

Annual Communication: Delegate expenses $ 22,907 Past Grand Master’s expenses 10,808 Grand Lodge Officers' expenses 18,306 Stenographer 3,870 Printing and distributing Proceedings 20,000 Expense incidental to official functions 21,347 Entertainment of Distinguished Guests 38,070 Committee meetings 1,748 Buses 18,536 Transition to new Grand Master 543 Total annual communication $ 156,135

Salaries and Related Costs: Grand Secretary Office $ 269,966 Administrative salaries 316,745 Pension expense 162,361 Disability and compensation insurance 4,173 Payroll taxes 50,495 Health and life insurance 45,213 Office consultant 24,177 Temporary office help 6,327 Total salaries and related costs $ 879,457

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SCHEDULE 5

GRAND LODGE OF FREE AND ACCEPTED MASONSOF THE STATE OF NEW YORK AND RELATED COMMITTEES

STATEMENT OF ACTIVITIES - GRAND LODGE OFFICE EXPENSESAND GRAND LODGE OFFICERS’ TRAVEL EXPENSES

FOR THE YEAR ENDED DECEMBER 31, 2015

Grand Lodge Office Expenses: Occupancy $ 254,600 Postage 13,120 Office supplies and expenses 36,806 Telephone 12,055 Depreciation 3,277 Legal and professional fees 40,650 Equipment rental 31,723 Printing of rosters 875 Directors and officers’ insurance 3,553 Contracts -

Total Grand Lodge office expenses $ 396,659

Grand Lodge Officers’ Travel Expenses: Grand Master $ 12,995 Deputy Grand Master 10,662 Senior Grand Warden 854 Junior Grand Warden 1,656 Grand Treasurer 3,196 Grand Secretary 4,935 Judge Advocate 4,000 Proctor 4,087 Grand Marshal 8,612 Deputy Grand Marshal 4,655 Senior Grand Deacon 406 Junior Grand Deacon 1,840 Grand Standard Bearer 2,221 Deputy Grand Standard Bearer 2,365 Grand Organist 70 Assistant Grand Secretary 1,518 Reserve for gas price increase 7,978 Grand Tiler 235 Trips to foreign jurisdictions 17,004

Total Grand Lodge officers’ travel expenses $ 88,872

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SCHEDULE 6

GRAND LODGE OF FREE AND ACCEPTED MASONSOF THE STATE OF NEW YORK AND RELATED COMMITTEES

STATEMENT OF ACTIVITIES - GRAND LECTURER’S COSTSAND COMMITTEE EXPENSES

FOR THE YEAR ENDED DECEMBER 31, 2015

Grand Lecturer’s Costs: Salary $ 21,750 Other expenses 9,069 Total Grand Lecturer’s costs $ 30,819

Committee Expenses: Benevolence $ - Custodians of work - Leadership and educational services 14,083 Camp Turk 300 Beacon project - Masonic Hall tours 1,401 Permanent Grand Lodge officers meeting 6,982 Constitutions - Jurisprudence - Masonic fellowship Committee on lodges and buildings - Publications Committee - George Washington Memorial George Washington Tappan 1,019 Finance Technology Committee 11,921 NetNews - Public Relations Committee 3,017 Publications 360 Education Assistance Program 8,304 MUNY - Law Enforcement Committee Advisory Necrology 120 Masonic Home Activities Community Services - Young Members - Masonic Blood Bank - Membership Development 4,500 Awards 553 Surviving Spouse/Loved Ones -

Total committee expenses $ 52,560

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SCHEDULE 7

GRAND LODGE OF FREE AND ACCEPTED MASONSOF THE STATE OF NEW YORK AND RELATED COMMITTEES

STATEMENT OF ACTIVITIES - INSURANCE COSTS, RETIREMENT

ASSISTANCE AND OTHER MASONIC ENDEAVORS

FOR THE YEAR ENDED DECEMBER 31, 2015

Insurance Costs: Officers’ accident insurance $ 990 Lodge liability and surety 93,790

Total insurance costs $ 94,780

Other Masonic Endeavors: Masonic Relief Association - U.S. and Canada $ 412 Conference of Grand Masters 16,100 Conference - other 4,415 Conference of Northeast 1,992 Conference - World - Masonic Service Association 2,152 Florida Sojourner meetings 6,376 Fraternal Night - Delaware 2,051 Grand Lodge Regalia 1,153 Contingency -

Total other Masonic endeavors $ 34,651

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29

MASONIC BROTHERHOOD FOUNDATION, INC.

FINANCIAL STATEMENTS

MAY 31, 2015

(WITH INDEPENDENT AUDITORS’ REPORT)

TABLE OF CONTENTS

Independent Auditors’ Report

Financial Statements

Statement of Financial Position

Statement of Activities

Statement of Cash Flows

Notes to Financial Statements

Supplementary Schedules

Schedule of Donor Restricted Contributions Received and Disbursed Schedule 1

Schedule of Activities - Special Events Schedule 2

Schedule of Activities - Operating Expenses Schedule 3

LipskY Goodkin & co., p.c.

cerTified puBLic accounTanTs

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LIPSKY, GOODKIN & CO., P. C.CERTIFIED PUBLIC ACCOUNTANTS

120 WEST 45TH STREETNEW YORK, NEW YORK 10036

(212) 840-6444 FAX (212) 921-7186 MEMBERS

AMERICAN INSTITUTE OF CERTIFIED PUBLIC

ACCOUNTANTS _____________

N.Y. STATE SOCIETY OF CERTIFIED PUBLIC

ACCOUNTANTS

INDEPENDENT AUDITORS’ REPORT

To the Board of Trustees ofThe Masonic Brotherhood Foundation, Inc.

We have audited the accompanying financial statements of The Masonic Brotherhood Foundation, Inc. (a nonprofit organization) which comprise the statement of financial position as of May 31, 2015, and the related statements of activities and cash flows for the year then ended, and the related notes to the financial statements.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatements.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of The Masonic Brotherhood Foundation, Inc. as of May 31, 2015 and the changes in its net assets and its cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information included in schedules 1 through 3, is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

New York, New York

September 25, 2015

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MASONIC BROTHERHOOD FOUNDATION, INC.

STATEMENT OF FINANCIAL POSITION

MAY 31, 2015

ASSETS

Cash $ 598,003Accrued interest receivable 14,015Other receivables 43,570Investments - at fair value 10,451,039Prepaid asset 500

TOTAL ASSETS $ 11,107,127

LIABILITIES AND NET ASSETS

Accounts payable $ 26,750Due to Grand Lodge of Free and Accepted Masons 1,712Contributions payable 78,630

Total liabilities 107,092

NET ASSETS

Unrestricted 4,063,673Temporarily restricted 3,260,981Board designated 2,850,125Permanently restricted 825,256

Total net assets 11,000,035

TOTAL LIABILITIES AND NET ASSETS $ 11,107,127

See Accompanying Notes to Financial Statements.

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MASONIC BROTHERHOOD FOUNDATION, INC.

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED MAY 31, 2015

CASH FLOWS FROM OPERATING ACTIVITIES: Increase in net assets $ 393,706

Adjustment to reconcile increase in net assets to net cash provided by operating activities: Net unrealized loss 15,068

Changes in operating assets and liabilities: Accrued interest receivable (2,603) Other receivables 356,474 Due from Grand Lodge 10,157 Prepaid asset 500 Accounts payable 1,194 Contributions payable (18,319) Due to Grand Lodge 1,712

Net Cash Provided by Operating Activities 757,889

CASH FLOWS FROM INVESTING ACTIVITIES: Sales of investments 2,985,929 Purchase of investments (3,979,884)

Net Cash Used in Investing Activities (993,955)

INCREASE IN CASH (236,066)

CASH - BEGINNING OF YEAR 834,069

CASH - END OF YEAR $ 598,003

See Accompanying Notes to Financial Statements.

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MASONIC BROTHERHOOD FOUNDATION, INC.

NOTES TO FINANCIAL STATEMENTS

MAY 31, 2015

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Masonic Brotherhood Foundation, Inc. (the “Foundation”) is a not-for-profit organization exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code. The Foundation is required to file and does file tax returns with the Internal Revenue Service and other taxing authorities and has years open for examination by the taxing authorities from 2011 through 2014.

Basis of Accounting

The financial statements of the Foundation have been prepared on the accrual basis of accounting and, accordingly, reflect all significant receivables, payables, and other liabilities.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires the Trustees to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Fair Value Measurement

Pursuant to the provision described in ASC 820, Fair Value Measurement and Disclosures (formerly Statement of Financial Accounting Standards 157) the Foundation categorizes its financial instruments into a three level fair value hierarchy that prioritizes the inputs of valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). Valuation of assets and liabilities traded for less active dealer or broker markets that have significant observable inputs are classified as Level 2. Level 2 valuations are usually obtained from third party pricing service valuations for identical or similar assets. If the inputs are used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the instrument.

The Foundation’s investments consist of marketable equity securities and fixed income securities, which are classified as Level 1 in the fair value hierarchy.

Contributions

Contributions received are recorded as unrestricted, temporarily restricted, or permanently restricted support, depending on the existence and/or nature of any donor restrictions. Donations that are not designated by the donor are allocated annually by the Grand Master. Support that is restricted by the donor is reported as an increase in unrestricted net assets if the restriction expires in the reporting period in which the support is recognized. All other donor-restricted support is reported as an increase in temporarily or permanently restricted net assets, depending on the nature of the restriction. When a restriction expires (that is, when a stipulated time restriction ends or the purpose of the restriction is accomplished), temporarily restricted net assets are classified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions.

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MASONIC BROTHERHOOD FOUNDATION, INC.

NOTES TO FINANCIAL STATEMENTS

MAY 31, 2015

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Promises To Give

Unconditional promises to give, less an allowance for uncollectible amounts, are recognized as revenue in the period received as an asset. Conditional promises to give are recognized when the conditions on which they depend are substantially met.

Contributed Services

During the year ended May 31, 2015, the value of contributed services meeting the requirements for recognition in the financial statements was not material and has not been recorded.

Deferred Revenue

Revenue received for future special events are deferred and recognized in the periods to which they relate.

Equipment and Depreciation

Equipment is stated at cost. Depreciation is provided on the straight-line method over the estimated useful lives of the assets.

Subsequent Events

The Organization has evaluated subsequent events through September 25, 2015, which is the date the financial statements were available to be issued, and concluded that no subsequent events have occurred that would require recognition in the financial statements or disclosure in the notes to the financial statements.

NOTE 2 - INVESTMENTS

The Foundation invests primarily in equity securities, mutual funds and corporate bonds. Investments are stated at fair value as follows: Fair Cost Value

Unrestricted Investments $5,146,478 $ 5,421,929 Temporarily Restricted Investments (A) 357,738 365,699 Board Designated Investments 3,643,816 3,810,151 Permanently Restricted Investments 781,878 853,260

Totals $9,929,910 $10,451,039

(A) Temporarily restricted investments are funds invested on behalf of the DeMolay Foundation.

NOTE 3 - CONCENTRATION OF CREDIT RISK

The Foundation has bank deposits which at times may exceed federally insured limits.

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MASONIC BROTHERHOOD FOUNDATION, INC.

NOTES TO FINANCIAL STATEMENTS

MAY 31, 2015

NOTE 4 - RELATED PARTY TRANSACTIONS

Due to Grand Lodge of Free and Accepted Masons

The Foundation is charged $12,000 per month by the Grand Lodge to cover administrative and payroll expenses incurred by the Grand Lodge on behalf of the Foundation. The amount due to the Grand Lodge at May 31, 2015 was $1,712.

NOTE 5 - RESTRICTIONS ON NET ASSETS

Temporarily restricted net assets represent those resources that are subject to donor-imposed stipulations that will be met either by actions of the Foundation and/or the passage of time. Net assets released from restrictions represent the satisfaction of the restricted purpose.

Permanently restricted net assets are to provide a permanent endowment. In November 1987, the Foundation received a $600,000 bequest under a will whereby the principal is to be invested in perpetuity. Investment income earned, less 10% withheld to cover administrative expenses, is allocated equally to the Masonic Youth Foundation, Inc. and the Masonic Medical Research Laboratory. In July 1988, the Foundation received an additional $184,256, whose income is to be distributed in the same manner.

In December 1995, the Foundation received a $41,000 contribution whereby the principal is to be invested in perpetuity. Investment income earned, less 10% withheld to cover administrative expenses, is allocated 40% to the Masonic Medical Research Laboratory, 40% to the Trustees of Masonic Hall & Home and 20% to the Masonic Youth Foundation, Inc.

At May 31, 2015, contributions payable from all permanently restricted net assets was $78,630.

In April 2012 the Foundation received a $2,494,814 contribution through a donor’s last will and testament. The Board of Directors of the Foundation voted that the principle be restricted and identified as Board Designated Fund in the financial statements. Income is to be distributed to the Grand Master of the Grand Lodge of the Free and Accepted Masons of the State of New York at a maximum of 4.5% of the Board Designated investments or $124,012 based on the December 31 investment market value of the prior year. Income is to be distributed at the discretion of the Grand Master and any undistributed income will remain with the principle. For the year ending May 31, 2015 the Foundation received $120,000 in income distributions from the Board Designated Fund.

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SCHEDULE 1

MASONIC BROTHERHOOD FOUNDATION, INC.

SCHEDULE OF DONOR-TEMPORARILY RESTRICTED CONTRIBUTIONS

RECEIVED AND DISBURSED

FOR THE YEAR ENDED MAY 31, 2015

Balance Balance June 1, Contributions Contributions May 31, 2014 Received Disbursed 2015

DeMolay Foundation $ 408,170 $ 17,572 $ - $425,742 Military and Veterans Hospital (26,030) 61,517 45,498 (10,011)Masonic Home 17,110 77,899 77,899 17,110 Masonic Youth Foundation 81,168 33,389 10,052 104,505 Masonic Medical Research Laboratory 127,646 81,086 87,971 120,761 Washington Masonic National Memorial 2,094 - - 2,094 Drug and Alcohol Abuse Prevention 85,010 - 1,841 83,169 Livingston Library 3,877 9,529 9,529 3,877 Tappan Washington Memorial 714 - - 714 Benevolence (83,693) - 28,300 (111,993)Camp Turk 37,250 - - 37,250 Masonic Youth-Child Identification (86,613) - 19,549 (106,162)Masonic Student Assistance 15,306 20,610 91 35,825 Masonic Blood Donor 7,727 - - 7,727 Benevolence Endowment 1,415,964 27,322 3,500 1,439,786 Camp Turk Endowment (486) - - (486)Committee on Library and Museums 4,494 - - 4,494 Annuity Giving Program 987,058 - 21,868 965,190

Total $2,996,766 $ 328,924 $ 306,098 $3,019,592

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SCHEDULE 2

MASONIC BROTHERHOOD FOUNDATION, INC.

SCHEDULE OF ACTIVITIES - SPECIAL EVENTS

FOR THE YEAR ENDED MAY 31, 2015

SPECIAL EVENTS:

Masonic Breakfast $ 30,995 Grand Master’s Dinner 42,831 Grand Master's Ball 62,160 Grand Master's Journal 23,345 Total $ 159,331

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SCHEDULE 3

MASONIC BROTHERHOOD FOUNDATION, INC.

SCHEDULE OF ACTIVITIES - OPERATING EXPENSES

FOR THE YEAR ENDED MAY 31, 2015

OPERATING EXPENSES:

Administration $ 167,087 Rent 15,000 Grand Master’s Dinner 43,000 Masonic Breakfast 32,788 Grand Master's Ball 67,846 Grand Master's Journal 7,600 Postage 9,453 Printing and stationery 22,301 Gift Annuities Program 4,295 Bank Charges 18,513

Total 387,883

Less: Overhead Allocation Charged to Revenue and Other Support (76,430)

TOTAL OPERATING EXPENSES $ 311,453

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rEPORT OF THE GRAND HISTORIAN

* JameS h. rice, Grand Historian d. 1/31/2016

We received the sad news that our Grand Historian, R\W\James H. Rice, was called from labor by the Grand Architect of the Universe to lay down the working tools of a Mason.

“Rushville- James H. Rice, 73, died unexpectedly Sunday, Jan. 31, 2016, at his home. A Masonic Service was held Saturday, Feb. 6, at the Rushville Congregational Church. A Memorial Service followed at the church. Burial was in Rushville Cemetery. In lieu of flowers, memorial contributions may be made to the Rushville Historical Society, P.O. Box 51, Rushville, NY 14544; or the Rushville Congregational Church, c/o Pat Sawers, 12 Bassett St., Rushville, NY 14544.

Born in Utica, NY, R\W\Rice was the son of the late Howard and Helen Rice. He graduated from North Syracuse High School in 1959. R\W\Rice served in the Naval Reserves before enlisting in the U.S. Air Force in 1960. He served until 1964. On July 21, 1962, R\W\Rice married Jean Fish, in Mattydale, NY. They lived in Rochester before moving to Rushville in 1972 to raise their family. In 1999, R\W\Rice retired from Griffin Technologies in Victor.

R\W\Rice was an active member of the Rushville Congregational Church. He served as Church Clerk for 30 years, as a Deacon, and as Secretary of the Board of Deacons.

Always interested in local history, R\W\Rice was currently the Village of Rushville Historian, and a former Yates County Historical Society Board member. He published a History of the Rushville Congregational Church. He also wrote articles about Rushville History for the Daily Messenger newspaper in Canandaigua, NY.

R\W\Rice served the Village of Rushville and the Town of Potter. He was a former Mayor, Village Justice and Town Justice. Jim was also a former Scoutmaster for Rushville’s Pack 43.

Most of all, Jim was dedicated to his family. Surviving him is his wife of 53 years, Mrs. Jean Rice, as well as his son, W\James M. Rice (a member of Canandaigua Lodge No. 294 and Milo Lodge No. 108), his daughter, two grandsons, his sister, two sisters-in-law, two brothers-in-law, and several nieces and nephews.”

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R\W\Brother Jim Rice has an extensive curriculum vitae within the Craft, having served in many capacities in his Lodges, his District and in Grand Lodge. R\W\Rice was Initiated on April 18, 1984, was Passed on May 16, 1984 and was Raised on August 17, 1984 in Rushville Lodge No. 377 (now known as Canandaigua Lodge No. 294). He also enjoyed dual membership with Milo Lodge No. 108, where he affiliated on May 6, 2009.

R\W\Brother Jim Rice was elected and served as Master of Rushville Lodge No. 377, Rushville, NY, from 1989 to 1990. Subsequently, he served as Treasurer and then as Secretary of Rushville Lodge No. 377. He has also served as the Secretary of Milo Lodge No. 108, Penn Yan, NY, and was currently serving as the Junior Warden of Milo Lodge No. 108.

Within the Ontario-Seneca-Yates Masonic District, R\W\Rice was appointed and served as Assistant Grand Lecturer from 1990 to 1992, and then as District Deputy Grand Master from 1992 to 1994. He served as a Committeeman on several Grand Lodge Committees, including the Publications Committee, Grand Master’s Educational Task Force, Leadership Services Committee, Membership Development Committee, and M.U.N.Y.

From 2007 until the present, R\W\Rice faithfully served our Grand Lodge as the Grand Historian. He wrote numerous articles that were published quarterly in The Empire State Mason magazine. R\W\Rice also published the Twenty-Four Inch Gauge about the Masons.

His energetic and caring presence will surely be missed by all who had the pleasure of knowing R\W\Brother Rice.

On behalf of the Grand Master, M\W\William J. Thomas, the Deputy Grand Master, R\W\Jeffrey M. Williamson, and the entire Grand Line, we extend our sincere prayers and sympathies to Mrs. Jean Rice and to the Rice Family and Friends. We also extend our condolences to the Officers and Brethren of Canandaigua Lodge No. 294, Milo Lodge No. 108 and the Ontario-Seneca-Yates District. May our dear beloved Brother rest in everlasting peace. So Mote It Be.

*Photograph courtesy of R\W\James Herman Rice, District Deputy Grand Master, First and Second Nassau Districts.

Area HistorianschriStopher l. allen area 3 franciS i. KarwowSKi area 7 raymonD e. BenDer area 1 charleS e. Knapp, Jr. area 5 allan m. Bryant, Sr. area 8 e. DaviD martin area 16 GeorGe n. caSwell area 9 John r. nealiS area 6 peter m. filim area 17 John t. SarGent area 10 richarD l. GiorDano area 2 John h. SiGGinS ii area 18 Gary l. heinmiller area 11 philip J. SoyrinG area 13 anGel l. hernanDez, Jr. area 4 John e. zaBel area 15

JameS h. rice, Grand Historian area 14 d. 1/31/2016

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REPORT OF THE GRAND LECTURER

To the Grand Lodge:In accordance with Section 123 of the Constitutions, Grand Lecturer

Conventions have been conducted or are scheduled as of this report. The work of the Conventions this past year was the Entered Apprentice Degree. Emphasis was given to several of the lectures, especially the Apron Presentation, the Bible Presentation, the First Degree Charge and the Lecture of Reasons. In addition to the performance of the Masonic Ritual, the relevance, importance and esoteric meaning were thoroughly discussed after each segment covered. All Convention participants came away with a new appreciation for our ritualistic work.

The participation throughout the jurisdiction has been outstanding. This is not readily reflected by the number of Potts Award winners. Throughout the District Conventions, there was outstanding participation by young Master Masons. The need for the older and the newer members to freely communicate was again stressed. The means of communication preferences of our many generations was also discussed. In addition, the need to fully immerse all of our new Master Masons in our Masonic culture could not be emphasized enough. Mentoring was also a big topic at the Conventions. Everyone understood that if new Master Masons are not fully engaged in our culture and given the tools to succeed, they may eventually walk away from the Fraternity.

2015 howard w. poTTs awards recipienTs

The Howard Potts Award is given to Lodges that have their top seven officers in attendance. These are the Worshipful Master, the Senior Warden, the Junior Warden, the Senior Deacon, the Junior Deacon, the Senior Master of Ceremony, and the Junior Master of Ceremony. The Award certificates will be forwarded to the District’s Assistant Grand Lecturers.

Lodge Name Lodge Number DistrictLodge of Antiquity 11 SuffolkStewart Manor-St. Albans 56 Second NassauBethlehem 85 AlbanyHiram 105 First ErieQueensbury 121 Saratoga-WarrenCornerstone 178 Second ManhattanPerfect Square 204 Seventh ManhattanAmerica 284 Second KingsAmity 323 Fifth ManhattanHomer 352 Cortland-MadisonOakland 379 Genesee-WyomingJordan 386 OnondagaDeposit 396 DelawareConstellation 404 Genesee-WyomingScriba 414 OswegoSt. Mark’s-Vestal 435 Broome-Chenango

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Cortlandville 470 Cortland-MadisonSouth Dansville-Wayland 478 SteubenPyramid 490 Fourth ManhattanGramercy 537 Fourth ManhattanWebster 538 MonroeCornucopia 563 QueensOlive 575 ChautauquaGlen Cove 580 Second NassauMemorial 648 OnondagaHarmonie 699 First ErieRidgewood 710 Second KingsSocial 713 Niagara-OrleansNiagara River 785 Niagara-OrleansMatinecock 806 Second NassauLynbrook-Massapequa 822 First NassauJoshua 890 Seventh ManhattanOld Town 908 SuffolkBeukendaal 915 Rensselaer-SchenectadyPhiladelphia 916 Jefferson-LewisIMA 917 Seventh ManhattanJoseph Warren-Gothic 934 Seventh ManhattanFraternity-Dunderberg 942 First Westchester-Putnam Konosioni 950 OnondagaBethpage Hicksville 975 Second NassauVan Cortlandt 1034 First Westchester-Putnam Springfield Gardens 1057 QueensWest Seneca 1111 Second ErieEggertsville-Grand Island 1138 First ErieValley Stream 1143 First NassauCarroll 1147 ChautauquaYorktown 1154 First Westchester-PutnamAllied 1170 Sixth ManhattanMillennium 1179 First ErieWestern Star 1185 Second Erie

2015 henry meacham awarD recipientS The Meacham Award is presented to a Lodge that performs all the

ritualistic work of all three Degrees during the Masonic year. All degree participants of the three Degrees must be members of the Lodge. Honorary members are not considered members for the purpose of qualification. The specific requirements are listed on the application form. Meacham Awards are presented at the District Grand Lecturer Conventions.

Lodge Name Lodge Number District

Lodge of Antiquity 11 Suffolk Hiram 105 First Erie Niagara LaSalle 132 Niagara-Orleans

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Lodge Name Lodge Number District

Living Stone 255 Second Erie Macedonia 258 Allegany George Washington 285 Fifth Manhattan Fayetteville Central City 305 OnondagaAncient Landmarks 358 First Erie Heritage 371 Fourth ManhattanHoffman 412 Orange-Rockland Akron 527 First Erie Gramercy 537 Fourth ManhattanWebster 538 MonroeWallkill 627 Orange-Rockland Memorial 648 OnondagaHarmonie 699 First Erie Pelham 712 Bronx Gasport 787 Niagara-Orleans Connetquot 838 Suffolk Queensboro 892 Queens Konosioni 950 Onondaga Publicity 1000 Fourth ManhattanWest Seneca 1111 Second ErieBritannia 1166 Fourth ManhattanWestern Star 1185 Second Erie Ken-Ton 1186 First Erie

Finally, I would like to thank all of the District leadership for providing the proper venue and setting for conducting the Grand Lecturer Conventions. Most important, I am extremely gratified by the number of Brothers who attended the Conventions this year. Without your active participation, the Conventions would be an effort in futility. Everywhere I went, I was met with enthusiastic Masons, both young and old, fully immersed in being an active participant in our resurgent jurisdiction.

Respectfully submitted,richarD J. KeSSler, Grand Lecturer

Regional Assistant Grand Lecturers

GeraLd f. irwin, Hudson-ChamplainsTenrick B. adaMs, Metropolitan

dennis s. davis, Mid-StateLawrence M. kania, Western

Moderators, Schools of InstructionGeraLd T. coLeMan, First and Second Erie Masonic Districts

erik k. ricker, Niagara-Orleans Masonic District

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REPORT OF THE PROCTOR

To the Grand Lodge:I would firstly like to thank and extend my greatest appreciation for

M∴W∴William J. Thomas, Grand Master, for appointing me as Proctor and entrusting the Office of Proctor and the confidence of the Craft to me in such a solemn duty.

I would also like to extend my eternal gratitude to R∴W∴Steven A. Rubin, Judge Advocate, and my predecessor in the Office of Proctor, for helping in my transition by lending me his wisdom, experience and encouragement. I must also recognize the efforts of the Regional Deputy Proctors, R∴W∴Teodulo A. Henriquez, Metropolitan Region, R∴W∴Michael E. Storck, Western Region, R∴W∴Jeffrey E. McMorris, Mid-State Region, and R∴W∴Jeffrey R. Merrill, Hudson-Champlain Region, for their tireless and unheralded efforts without which the office of the Proctors would simply cease to function. I would also like to extend my sincerest appreciation and gratitude to R∴W∴Paul A. Vick for his 20 years of service as Regional Proctor for the Western Region before stepping down. Thank you, for all of your valuable time and service to our Craft.

Lastly, and my no means least, my sincerest thanks is extended to R∴W∴Paul M. Rosen, Grand Secretary, and R∴W∴Richard W. Bateman, Assistant Grand Secretary, for their unflagging efforts and assistance in supporting the office of the Proctor.

The Proctor is charged with addressing allegations of unMasonic conduct. Indeed it is Grand Lodge’s prosecutorial arm for unMasonic conduct, but I envision it as more than cops and robbers. I see the Office of the Proctor as helping uphold the integrity of Masonry. We, as Masons, hold ourselves to a higher standard, and the Office of the Proctor administers to those higher standards. Our teachings bid us not to palliate or aggravate the offenses of our Brothers, but to judge with candor, admonish with friendship, and reprehend with justice. That is my vision for the Office of the Proctor, that is the standard for the Regional Deputy Proctors, and that is my unwavering mandate to myself.

Interestingly, some Brothers are not familiar with the term palliate. Palliate means to make something less severe or unpleasant without removing the cause. In order to remove the cause, or not palliate, you have to know the cause. To those ends, I have endeavoured to investigate as many matters as are reasonable and practical within the circumstances and the length of my cabletow, and I have instructed the Regional Deputy Proctors to do the same. In doing so, and in my travels, I was very very pleased, although unsurprised, to find our fellow Brothers taking our higher standards quite seriously.

In the past term, and until late February 2016, 19 matters were closed, 14 members were Expelled, 1 Lodge’s Charter was recommended for Forfeiture, 6 Brothers were Suspended, and one Brother was reprimanded. Of those, 3 matters are under Appeal. The Office has also completed 2 major investigations.

The analytics of these numbers is: 11 matters were for criminal conviction; 10 matters were from generalized misconduct. 13 matters were from the Metro region; 2 matters were from Mid-State; 5 matters were from Hudson-Champlain, and 3 matters were from the Western area.

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In addition to the matters closed, the office of the Proctor currently has 22 matters pending: 10 are for alleged criminal conviction, and 12 are for alleged general misconduct. Of those, 2 are in the Western region, 3 are in the Mid-State region, 3 are in the Hudson-Champlain region, and 14 are in the Metro region.

In putting the criminal convictions into context, the New York State average is 2.1 serious convictions per 1,000 persons, or 0.21%. We have 11 serious criminal convictions per approximately 37,000 Brothers, or 0.029%. That is approximately a whole order of magnitude better than the general population. Of course, I would be much happier if a Mason being convicted of a serious crime was about as usual and reliable as a Bigfoot sighting. That being said, I think we are living up to our own higher standards on the criminal conviction front.

Of the generalized misconduct, which we are working on breaking out of moving forward, an uncomfortable margin are for financial improprieties. This is completely unacceptable, because our Lodges can easily implement measures to avoid most of it, and we should be doing these measures already. The basic measures are: i) have a budget and vote on it; ii) have your Trustees compare the checkbook and financial accounts against the budget. It is just that simple. PLEASE HAVE A BUDGET, PLEASE HAVE YOUR TRUSTEES REVIEW YOUR FINANCIAL RECORDS NO LESS THAN ONCE EVERY YEAR.

In closing, I want to remind the Brothers that we are indeed our Brothers’ keepers. Sometimes Brothers don’t reach out for help when they should, and it is our duty as Brothers to extend the helping hand unbidden. Leave Masonry a better place than we found it. Let no tarnish gather on the square and compass by acting like a man and Mason, and recognizing we are all human, encouraging our Brothers by the plumb, level and square when their blood is up or have had too much to drink. We are family. It’s ok to fight, but always remember that Brothers will make up the next day. It’s ok not to like a Brother, but you have to love them as a Brother.

Again, I would like to thank M∴W∴William J. Thomas, Grand Master, for honoring me with this most august appointment.

My door has always been open for questions and mediations, and always will be. It has been my honor.

Respectfully submitted, MarshaL d. shichTMan, Proctor

Regional Deputy ProctorsTeoduLo a. henriquez, Metropolitan Region

MichaeL e. sTorck, Western RegionJeffreY e. McMorris, Mid-State Region

JeffreY r. MerriLL, Hudson-Champlain Region