Federal Deposit
Insurance Corporation

From: Lorraine Manuel
Sent: Wednesday, August 03, 2005 3:15 PM
To: Comments
Cc: Executive Committee; David Campbell; Fritz Baker; Lynne Bush; Tom Campbell; Auditing
Subject: RIN 3064-AC91 FDIC FDICIA proposal comment letter
I wish to comment in support of the FDIC’s proposal to amend Part 363 of its regulations by raising the asset size threshold from $500 million to $1 billion for requirements relating to internal control assessments and reports by management and external auditors, and the requirement that members of the audit committee, who must be outside directors, be independent of management.

The proposal is a strong step in the right direction of helping ease some of the regulatory burden that community banks currently operate under. We recognize that the change in regulation does not mean we can relax internal control standards or the independence of our Audit committee. We work hard to assess and test the internal controls of the bank and to maintain a strong independent audit committee, the proposed amendment will allow us to cost-effectively address these issues in a manner that is best for Baker Boyer Bank as opposed to “every” bank. Thank you.

Lorraine Manuel
Auditor
(509) 526-1316
Baker Boyer National Bank
PO Box 912 * Walla Walla, Wa 99362