-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, VpbVYqJKxUdoPuhlpokUvi6beTuHgGCxB8mhAuicPxlGpaBru/kx0LCObF5Zbq+x JJo/9h7biC5D3cNg9ZYtxQ== 0001193125-07-194664.txt : 20070904 0001193125-07-194664.hdr.sgml : 20070903 20070904132658 ACCESSION NUMBER: 0001193125-07-194664 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 6 CONFORMED PERIOD OF REPORT: 20070630 FILED AS OF DATE: 20070904 DATE AS OF CHANGE: 20070904 EFFECTIVENESS DATE: 20070904 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TIMOTHY PLAN CENTRAL INDEX KEY: 0000916490 IRS NUMBER: 597016828 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-08228 FILM NUMBER: 071096422 BUSINESS ADDRESS: STREET 1: 1055 MAITLAND CENTER COMMONS CITY: MAITLAND STATE: FL ZIP: 32759 BUSINESS PHONE: 4076441986 MAIL ADDRESS: STREET 1: 1055 MAITLAND CENTER COMMONS CITY: MAITLAND STATE: FL ZIP: 32759 0000916490 S000011343 Timothy Small Cap Variable C000031435 Timothy Small Cap Variable N-CSRS 1 dncsrs.htm TIMOTHY PLAN SMALL CAP VARIABLE SERIES Timothy Plan Small Cap Variable Series

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM N-CSR

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

 

Investment Company Act file number 811-08228

 

 

 

 

 

 

 

The Timothy Plan

(Exact name of registrant as specified in charter)

 

The Timothy Plan

1055 Maitland Center Commons __

Maitland, FL

  32751
(Address of principal executive offices)   (Zip code)

 

 

J. Michael Landis

Unified Fund Services, Inc.

431 N. Pennsylvania St.

Indianapolis, IN 46204

(Name and address of agent for service)

 

Registrant’s telephone number, including area code: 800-846-7526

 

Date of fiscal year end: 12/31

 

Date of reporting period: 06/30/2007

 

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.


Item 1. Reports to Stockholders.

The Registrant’s audited annual financial reports transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 are as follows:


LOGO

SEMI – ANNUAL REPORT

JUNE 30, 2007 (UNAUDITED)

 

   

TIMOTHY PLAN FAMILY

OF FUNDS:

    Small-Cap Variable Series


LETTER FROM THE PRESIDENT

June 30, 2007

ARTHUR D. ALLY

Dear Timothy Plan Shareholder:

I think someone has been messing with the calendar. Although this letter introduces our Semi-Annual Report, it seems like only a few weeks have passed since I was writing the one for our Annual Report. I am pleased to report, however, that things are going well for your Timothy Plan Small Cap Variable Fund. As you can see from the report, your fund has produced positive returns thus far in 2007. Granted, the market has been somewhat volatile at times, nevertheless the end result – thus far at least – has been rather pleasant.

Although our investment strategy and commitment has not changed over the years, I thought it might be prudent to provide a little refresher for you, our shareholders. Here are the three things we ask of our sub-advisor – in priority order:

 

1. Do not violate our moral screens. We do the research and provide each of our sub-advisors with our list of prohibited companies.

 

2. Preservation of principal is job #1. In the investment world it is impossible to guarantee results or against potential loss of value but we do require our sub-advisors to manage Timothy Plan money as conservatively as possible.

 

3. Finally, after honoring the first two points, we ask our sub-advisors to do their best to out-perform their appropriate index over a full market cycle – which we estimate to be approximately five years.

We believe this to be the Biblical model as opposed to the over-emphasis on performance employed by a large segment of the investment industry. Performance is certainly important but I have seen too much evidence of disappointment and disillusionment experienced by investors when the sole emphasis is on performance. Bottom line: we take our stewardship responsibility over your assets very seriously. Thank you once again for being part of the Timothy Plan family.

 

Sincerely,
LOGO
Arthur D. Ally,
President

 

Timothy Plan Letter from the President [1]


OFFICERS AND TRUSTEES OF THE TRUST

As of December 31, 2007

TIMOTHY PLAN FAMILY OF FUNDS

 

Name, Age and Address

 

Position(s)
Held With Trust

 

Term of Office
and Length of Time Served

 

Number of Portfolios
in Fund Complex
Overseen by Trustee

Arthur D. Ally*

1055 Maitland Center

Commons

Maitland, FL

  Chairman and President   Indefinite; Trustee and President since 1994   13
 

Principal Occupation During Past 5 Years

 

Other Directorships
Held by Trustee

Born: 1942

  President and controlling shareholder of Covenant Funds, Inc. (“CFI”), a holding company. President and general partner of Timothy Partners, Ltd. (“TPL”), the investment adviser and principal underwriter to each Fund. CFI is also the managing general partner of TPL.   None

Name, Age and Address

 

Position(s)
Held With Trust

 

Term of Office
and Length of Time Served

 

Number of Portfolios
in Fund Complex
Overseen by Trustee

Joseph E. Boatwright**

1410 Hyde Park Drive

Winter Park, FL

  Trustee, Secretary   Indefinite; Trustee and Secretary since 1995   13
 

Principal Occupation During Past 5 Years

 

Other Directorships
Held by Trustee

Born: 1930

  Retired Minister. Currently serves as a consultant to the Greater Orlando Baptist Association. Served as Senior Pastor to Aloma Baptist Church from 1970-1996.   None

Name, Age and Address

 

Position(s)
Held With Trust

 

Term of Office
and Length of Time Served

 

Number of Portfolios
in Fund Complex
Overseen by Trustee

Mathew D. Staver**

210 East Palmetto Avenue

Longwood, FL

  Trustee   Indefinite; Trustee since 2000   13
 

Principal Occupation During Past 5 Years

 

Other Directorships
Held by Trustee

Born: 1956

  Attorney specializing in free speech, appellate practice and religious liberty constitutional law. Founder of Liberty Counsel, a religious civil liberties education and legal defense organization. Host of two radio programs devoted to religious freedom issues. Editor of a monthly newsletter devoted to religious liberty topics. Mr. Staver has argued before the United States Supreme Court and has published numerous legal articles.   None

 

Timothy Plan Officers and Trustees [2]


OFFICERS AND TRUSTEES OF THE TRUST

As of December 31, 2007

TIMOTHY PLAN FAMILY OF FUNDS

 

Name, Age and Address

 

Position(s)
Held With Trust

 

Term of Office
and Length of Time Served

 

Number of Portfolios
in Fund Complex
Overseen by Trustee

Richard W. Copeland

631 Palm Springs Drive

Altamonte Springs, FL

  Trustee   Indefinite; Trustee from 2005   13
 

Principal Occupation During Past 5 Years

 

Other Directorships
Held by Trustee

Born: 1947

  Principal of Richard W. Copeland, Attoney at Law for 31 years specializing in tax and estate planning. B.A. from Mississippi College, JD and LLM Taxation from University of Miami. Associate Professor Stetson University for past 29 years.   None

Name, Age and Address

 

Position(s)
Held With Trust

 

Term of Office
and Length of Time Served

 

Number of Portfolios
in Fund Complex
Overseen by Trustee

Bill Johnson

903 S. Stewart Street

Fremont, MI

  Trustee   Indefinite; Trustee from 2005   13
 

Principal Occupation During Past 5 Years

 

Other Directorships
Held by Trustee

Born: 1946

  President (and Founder) of American Decency Association, Freemont, MI since 1999. Previously served as Michigan State Director for American Family Association (1987-1999). Previously a public school teacher for 18 years. B.S. from Michigan State University and a Masters of Religious Education from Grand Rapids Baptist Seminary.   None

Name, Age and Address

 

Position(s)
Held With Trust

 

Term of Office
and Length of Time Served

 

Number of Portfolios
in Fund Complex
Overseen by Trustee

Kathryn Tindal Martinez

4398 New Broad Street

Orlando, FL

  Trustee   Indefinite; Trustee from 2005   13
 

Principal Occupation During Past 5 Years

 

Other Directorships
Held by Trustee

Born: 1949

  Served on board of directors from 1991 to present, including House of Hope, B.E.T.A., Childrens’ Home Society, and Susan B. Anthony List. Previously a private school teacher and insurance adjuster. B.A. received from Florida State University State University and MAT from Rollins College, FL.   None

 

Timothy Plan Officers and Trustees [3]


OFFICERS AND TRUSTEES OF THE TRUST

As of December 31, 2007

TIMOTHY PLAN FAMILY OF FUNDS

 

Name, Age and Address

 

Position(s)
Held With Trust

 

Term of Office
and Length of Time Served

 

Number of Portfolios
in Fund Complex
Overseen by Trustee

John C. Mulder

2925 Professional Place

Colorado Springs, CO

  Trustee   Indefinite; Trustee from 2005   13
 

Principal Occupation During Past 5 Years

 

Other Directorships
Held by Trustee

Born: 1950

  President Christian Community Foundation and National Foundation since 2001. Prior: 22 years of executive experience for a group of banks and a trust company. B.A. in Economics from Wheaton College and MBA from University of Chicago.   None

Name, Age and Address

 

Position(s)
Held With Trust

 

Term of Office
and Length of Time Served

 

Number of Portfolios
in Fund Complex
Overseen by Trustee

Charles E. Nelson

1145 Cross Creek Circle

Altamonte Springs, FL

  Trustee   Indefinite; Trustee since 2000   13
 

Principal Occupation During Past 5 Years

 

Other Directorships
Held by Trustee

Born: 1934

  Certified Public Accountant. Director of Operations, National Multiple Sclerosis Society Mid Florida Chapter. Formerly Director of Finance, Hospice of the Comforter, Inc. Formerly Comptroller, Florida United Methodist Children’s Home, Inc. Formerly Credit Specialist with the Resolution Trust Corporation and Senior Executive Vice President, Barnett Bank of Central Florida, N.A. Formerly managing partner, Arthur Andersen, CPA firm, Orlando, Florida branch.   None

Name, Age and Address

 

Position(s)
Held With Trust

 

Term of Office
and Length of Time Served

 

Number of Portfolios
in Fund Complex
Overseen by Trustee

Wesley W. Pennington

442 Raymond Avenue

Longwood, FL

  Trustee   Indefinite; Trustee since 1994   13
 

Principal Occupation During Past 5 Years

 

Other Directorships
Held by Trustee

Born: 1930

  Retired Air Force Officer. Past President, Westwind Holdings, Inc., a development company, since 1997. Past President and controlling shareholder, Weston, Inc., a fabric treatment company, form 1979-1997. President, Designer Services Group 1980-1988.   None

 

Timothy Plan Officers and Trustees [4]


OFFICERS AND TRUSTEES OF THE TRUST

As of December 31, 2007

TIMOTHY PLAN FAMILY OF FUNDS

 

Name, Age and Address

 

Position(s)
Held With Trust

 

Term of Office
and Length of Time Served

 

Number of Portfolios
in Fund Complex
Overseen by Trustee

Scott Preissler, Ph.D.

608 Pintail Place

Flower Mound, TX

  Trustee   Indefinite; Trustee since 2004   13
 

Principal Occupation During Past 5 Years

 

Other Directorships
Held by Trustee

Born: 1960

  President and CEO of Christian Stewardship Association where he has been affiliated for the past 14 years.   None

Name, Age and Address

 

Position(s)
Held With Trust

 

Term of Office
and Length of Time Served

 

Number of Portfolios
in Fund Complex
Overseen by Trustee

Alan M. Ross

11210 West Road

Roswell, GA

  Trustee   Indefinite; Trustee since 2004   13
 

Principal Occupation During Past 5 Years

 

Other Directorships
Held by Trustee

Born: 1951

  Founder and CEO of Corporate Development Institute which he founded five years ago. Previously he served as President and CEO of Fellowship of Companies for Christ and has authored three books: Beyond World Class, Unconditional Excellence, Breaking Through to Prosperity.   None

Name, Age and Address

 

Position(s)
Held With Trust

 

Term of Office
and Length of Time Served

 

Number of Portfolios
in Fund Complex
Overseen by Trustee

Dr. David J. Tolliver

4000 E. Maplewood Drive

Excelsior Springs, MO

  Trustee   Indefinite; Trustee from 2005   13
 

Principal Occupation During Past 5 Years

 

Other Directorships
Held by Trustee

Born: 1951

  Senior Pastor Pisgah Baptist Church, Excelsior Springs, MO since 1999. Previously pastored three churches in St. Louis, MO area (1986-1999). Currently serves on Board of Trustees Midwestern Baptist Theological Seminary. Past President Missouri Baptist Convention (2003-2004)   None

 

Timothy Plan Officers and Trustees [5]


SMALL CAP VARIABLE

FUND PROFILE

June 30, 2007

FUND PROFILE (unaudited):

Top Ten Holdings

(% of Net Assets)

 

Timothy Money Market Fund

   3.36 %

Oceaneering International, Inc.

   3.27 %

EDO Corp.

   3.10 %

Macrovision Corp.

   2.93 %

Lennox International, Inc.

   2.57 %

Kaydon Corp.

   2.48 %

John Wiley & Sons, Inc.

   2.43 %

CommScope, Inc.

   2.22 %

Charles River Laboratories International, Inc.

   2.16 %

Grey Wolf, Inc.

   2.12 %
   26.64 %
      

Industries

(% of Net Assets)

 

Services

   24.27 %

Technology

   22.79 %

Financial

   17.26 %

Industrial Goods

   9.57 %

Basic Materials

   9.37 %

Consumer Goods

   6.88 %

Healthcare

   6.71 %

Utilities

   0.49 %

Short-Term Investments

   3.36 %

Liabilities in Excess of Other Assets

   (0.70 )%
   100.00 %
      

EXPENSE EXAMPLE (unaudited):

As a shareholder of the Fund, you incur two types of costs: direct costs, such as wire fees and low balance fees; and indirect costs, including management fees, and other Fund operating expenses. This example is intended to help you understand your indirect costs, also referred to as “ongoing costs,” (in dollars) of investing in the Fund, and to compare these costs with the ongoing costs of investing in other mutual funds.

This example is based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period of January 1, 2007 through June 30, 2007.

Actual Expenses

The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested at the beginning of the period, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading “Expenses Paid During Period” to estimate the expenses you paid on you account during this period.

 

Timothy Plan Top Ten Holdings / Industries [6]


SMALL CAP VARIABLE

FUND PROFILE

June 30, 2007

Hypothetical example for comparison purposes

The second line of the table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses my not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any direct costs, such as wire fees or low balance fees. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these direct costs were included, your costs would be higher.

 

     Beginning
Account Value
January 1, 2007
   Ending
Account Value
June 30, 2007
   Expenses Paid
During Period*
January 1, 2007
Through
June 30, 2007

Actual

   $ 1,000.00    $ 1,078.50    $ 6.18

Hypothetical (5% return before expenses)

     1,000.00      1,018.84      6.01

 

* Expenses are equal to the Fund’s annualized expense ratio of 1.20%, which is net of any expenses paid indirectly, multiplied by the average account value over the period, multiplied by 181 days/365 days (to reflect the partial year period.) The Fund’s ending account value in the first line in the table is based on its actual total return of 7.85% for the six-month period of January 1, 2007 to June 30, 2007.

 

Timothy Plan Top Ten Holdings / Industries [7]


SMALL CAP VARIABLE

SCHEDULE OF INVESTMENTS

As of June 30, 2007 - (Unaudited)

COMMON STOCKS - 88.67%

 

number of shares

        market value
   AEROSPACE/DEFENSE - 3.94%   

4,205

   EDO Corp.    $ 138,218

810

   Teledyne Technologies, Inc. *      37,220
         
        175,438
         
   APPLICATION SOFTWARE - 1.09%   

2,250

   Parametric Technology Corp. *      48,623
         
   AUTOMOTIVE RETAIL - 0.95%   

1,665

   Lithia Motors, Inc. - Class A      42,191
         
   BUILDING & CONSTRUCTION - MISCELLANEOUS - 0.57%   

845

   Dycom Industries, Inc. *      25,333
         
   BUILDING PRODUCTS - AIR & HEATING - 2.57%   

3,345

   Lennox International, Inc.      114,499
         
   BUSINESS SERVICES - 2.93%   

4,340

   Macrovision Corp. *      130,460
         
   COMMERCIAL BANKS - CENTRAL US - 0.82%   

1,630

   Texas Capital Bancshares, Inc. *      36,431
         
   COMMERCIAL BANKS - EASTERN US - 1.29%   

1,690

   Signature Bank *      57,629
         
   COMMERCIAL BANKS - SOUTHERN US - 1.68%   

2,277

   Cadence Financial Corporation      44,356
         

2,704

   Sterling Bancshares, Inc.      30,582
         
        74,938
         
   COMMERCIAL SERVICES - FINANCE - 2.99%   

3,159

   Interactive Data Corp.      84,598

2,020

   Net 1 UEPS Technologies, Inc. *      48,783
         
        133,381
         
   COMPUTER AIDED DESIGN - 1.34%   

4,274

   Aspen Technology, Inc. *      59,836
         
   COMPUTERS - MEMORY DEVICES - 1.06%   

3,420

   Smart Modular Technologies (WWH), Inc. *      47,059
         
   COMPUTERS - PERIPHERAL EQUIPMENT - 0.90%   

1,420

   Electronics for Imaging, Inc. *      40,072
         
   CONSULTING SERVICES - 2.24%   

4,306

   LECG Corporation *      65,064

1,880

   Navigant Consulting, Inc. *      34,893
         
        99,957
         
   CONSUMER PRODUCTS - MISCELLANEOUS - 0.54%   

558

   Jarden Corporation *      24,000
         
   DATA PROCESSING/MANAGEMENT - 1.20%   

5,222

   infoUSA, Inc.      53,369
         

The accompanying notes are an integral part of these financial statements.

Timothy Plan Small Cap Variable Fund [8]


SMALL CAP VARIABLE

SCHEDULE OF INVESTMENTS

As of June 30, 2007 - (Unaudited)

COMMON STOCKS - 88.67% - continued

 

number of shares

        market value
   DECISION SUPPORT SOFTWARE - 1.17%   

1,181

   SPSS, Inc. *    $ 52,129
         
   DIVERSIFIED MANUFACTURING OPERATIONS - 0.29%   

991

   Blount International, Inc. *      12,962
         
   E-COMMERCE/PRODUCTS - 1.84%   

8,680

   1-800-FLOWERS.COM, Inc. - Class A *      81,852
         
   ELECTRONIC COMPONENTS - SEMICONDUCTORS - 1.17%   

2,175

   Microsemi Corporation *      52,091
         
   ELECTRONICS COMPONENTS - MISCELLANEOUS - 1.01%   

1,980

   Benchmark Electronics, Inc. *      44,788
         
   ELECTRONICS - 1.71%   

3,500

   DTS, Inc. *      76,195
         
   ENGINEERING / R&D SERVICES - 1.68%   

1,540

   URS Corp. *      74,767
         
   FINANCE - CREDIT CARD - 0.65%   

1,015

   Advanta Corp. - Class A      28,836
         
   FINANCIAL GUARANTY INSURANCE - 0.64%   

970

   Assured Guaranty, Ltd.      28,673
         
   GAS - DISTRIBUTION - 0.50%   

545

   AGL Resources, Inc.      22,062
         
   GENERAL INDUSTRIAL MACHINERY & EQUIPMENT - 0.50%   

1,290

   Altra Holdings, Inc. *      22,291
         
   GOLD & SILVER ORES - 0.91%   

5,319

   IAMGOLD Corp.      40,744
         
   HOUSEHOLD PRODUCTS - 1.08%   

2,700

   Central Garden & Pet Co. - Class A *      31,671

1,350

   Central Garden & Pet Co. *      16,551
         
        48,222
         
   INDUSTRIAL AUDIO & VIDEO PRODUCTION - 1.27%   

4,488

   Sonic Solutions *      56,594
         
   INDUSTRIAL AUTOMATION/ROBOTICS - 1.59%   

2,790

   Intermec, Inc. *      70,615
         
   LIFE INSURANCE - 2.76%   

5,148

   American Equity Investment Life Holding Company      62,188

1,880

   IPC Holdings, Ltd.      60,705
         
        122,893
         
   MACHINERY - PUMPS - 0.60%   

370

   Flowserve Corp.      26,492
         

The accompanying notes are an integral part of these financial statements.

Timothy Plan Small Cap Variable Fund [9]


SMALL CAP VARIABLE

SCHEDULE OF INVESTMENTS

As of June 30, 2007 - (Unaudited)

COMMON STOCKS - 88.67% - continued

 

number of shares

        market value
   MEDICAL - BIOMEDICAL/GENETICS - 2.81%   

385

   Bio-Rad Laboratories, Inc. - Class A *    $ 29,094

1,860

   Charles River Laboratories International, Inc. *      96,013
         
        125,107
         
   MEDICAL - DRUGS - 1.85%   

3,025

   K-V Pharmaceutical Co. - Class A *      82,401
         
   MEDICAL - MEDICAL - OUTPATIENT/HOME MEDICAL - 1.25%   

2,310

   AmSurg Corp. *      55,763
         
   METAL PROCESSORS & FABRICATION - 2.48%   

2,120

   Kaydon Corp.      110,494
         
   MULTILEVEL DIRECT SELLING - 0.49%   

1,316

   Nu Skin Enterprises, Inc. - Class A      21,714
         
   NETWORKING PRODUCTS - 0.68%   

900

   Polycom, Inc. *      30,240
         
   OIL & GAS DRILLING - 2.12%   

11,450

   Grey Wolf, Inc. *      94,348
         
   OIL & GAS FIELD SERVICES - 3.27%   

2,765

   Oceaneering International, Inc. *      145,550
         
   OIL COMPANY - EXPLORATION & PRODUCTION - 3.07%   

2,895

   Comstock Resources, Inc. *      86,763

1,170

   Swift Energy Co. *      50,029
         
        136,792
         
   PHOTOGRAPHIC EQUIPMENT & SUPPLIES - 1.77%   

2,230

   Avid Technology, Inc. *      78,831
         
   PUBLISHING - BOOKS - 2.43%   

2,244

   John Wiley & Sons, Inc. - Class A      108,363
         
   RETAIL - APPAREL/SHOE - 0.77%   

1,635

   Stage Stores, Inc.      34,270
         
   RETAIL - OFFICE SUPPLIES - 1.41%   

1,770

   School Specialty, Inc. *      62,729
         
   RETAIL - RADIO, TV & CONSUMER ELECTRONICS - 1.03%   

770

   Guitar Center, Inc. *      46,054
         
   RETAIL - RESTAURANTS - 1.26%   

625

   Brinker International, Inc.      18,294

890

   CBRL Group, Inc.      37,807
         
        56,101
         
   SERVICES - BUSINESS SERVICES - 1.50%   

7,754

   SonicWALL, Inc. *      66,607
         

The accompanying notes are an integral part of these financial statements.

Timothy Plan Small Cap Variable Fund [10]


SMALL CAP VARIABLE

SCHEDULE OF INVESTMENTS

As of June 30, 2007 - (Unaudited)

COMMON STOCKS - 88.67% - continued

 

number of shares

        market value
   SERVICES - HELP SUPPLY SERVICES - 2.95%   

3,780

   Cross Country Healthcare, Inc. *    $ 63,050

6,365

   On Assignment, Inc. *      68,233
         
        131,283
         
   SERVICES - SOCIAL SERVICES - 1.46%   

2,440

   Providence Service Corp. *      65,197
         
   SURETY INSURANCE - 0.73%   

2,075

   RAM Holdings, Ltd. *      32,681
         
   SURGICAL & MEDICAL INSTRUMENTS & APPARATUS - 1.45%   

5,399

   Merit Medical Systems, Inc. *      64,572
         
   TECHNOLOGY DISTRIBUTORS - 1.60%   

3,160

   Insight Enterprises, Inc. *      71,321
         
   TELECOMMUNICATIONS EQUIPMENT - 2.22%   

1,695

   CommScope, Inc. *      98,903
         
   TELECOMMUNICATIONS SERVICES - 0.50%   

1,696

   Premiere Global Services, Inc. *      22,082
         
   TRANSACTIONAL SOFTWARE - 0.51%   

1,841

   Bottomline Technologies, Inc. *      22,736
         
   TRANSPORT - RAIL - 0.78%   

1,165

   Genesee & Wyoming, Inc. - Class A *      34,764
         
   WIRE & CABLE PRODUCTS - 1.49%   

1,200

   Belden, Inc.      66,420
         
   WIRELESS TELECOMMUNICATIONS SERVICES - 1.31%   

4,535

   Syniverse Holdings, Inc. *      58,320
         
   Total Common Stocks (cost $3,208,497)      3,949,065
         

CLOSED-END MANAGEMENT INVESTMENT COMPANIES - 2.22%

 

number of shares

        market value

3,650

   Apollo Investment Corp.    $ 78,548
         

1,280

   MCG Capital Corp.      20,506
         
   Total Closed-End Management Investment Companies (cost $100,881)      99,054
         

REAL ESTATE INVESTMENT TRUSTS - DIVERSIFIED - 4.14%

 

number of shares

        market value

3,175

   Annaly Capital Management, Inc.    $ 45,784

3,695

   Deerfield Triarc Capital Corp.      54,058

2,169

   Kite Realty Group Trust      41,254

5,975

   MFA Mortgage Investments, Inc.      43,498
         
   Total Real Estate Investment Trusts - Diversified (cost $180,403)      184,594
         

The accompanying notes are an integral part of these financial statements.

Timothy Plan Small Cap Variable Fund [11]


SMALL CAP VARIABLE

SCHEDULE OF INVESTMENTS

As of June 30, 2007 - (Unaudited)

INVESTMENT COMPANIES - 2.31%

 

number of shares

        market value

3,395

   Compass Diversified Trust    $ 60,533

3,014

   PennantPark Investment Corp.      42,316
         
   Total Investment Companies (cost $100,906)      102,849
         

SHORT TERM INVESTMENTS - 3.36%

 

number of shares

        market value  

149,467

   Timothy Plan Money Market Fund, 4.40%(A)(B)    $ 149,467  
           
   Total Short Term Investments (cost $149,467)      149,467  
           
   Total Investments (identified cost $3,740,154) - 100.70%    $ 4,485,029  
           
   LIABILITIES IN EXCESS OF OTHER ASSETS - (0.70)%      (31,229 )
           
   Net Assets - 100.00%    $ 4,453,800  
           

 

* Non-income producing securities.
(A) Variable rate security; the yield shown represents the rate at June 30, 2007.
(B) Fund held is another series within the Timothy Plan.

The accompanying notes are an integral part of these financial statements.

Timothy Plan Small Cap Variable Fund [12]


SMALL CAP VARIABLE

STATEMENT OF ASSETS AND LIABILITIES

As of June 30, 2007 - (Unaudited)

 

ASSETS

  
     amount  

Investments in Unaffiliated Securities at Value (identified cost $3,590,687) [NOTE 1]

   $ 4,335,562  

Investments in Affiliated Securities at Value (identified cost $149,467) [NOTE 1]

     149,467  

Receivables:

  

For Fund Shares Sold

     28  

Interest

     99  

Dividends

     3,643  

Prepaid Expenses

     42  
        

Total Assets

   $ 4,488,841  
        

LIABILITIES

  
     amount  

Payable for Investments Purchased

   $ 27,697  

Payable for Fund Shares Redeemed

     168  

Payable to Adviser

     2,322  

Payable to Affiliates

     1,506  

Accrued Expenses

     3,348  
        

Total Liabilities

   $ 35,041  
        

NET ASSETS

  
     amount  

Net Assets

   $ 4,453,800  
        

SOURCES OF NET ASSETS

  
     amount  

At June 30, 2007, Net Assets Consisted of:

  

Paid-in Capital

   $ 3,223,516  

Accumulated Undistributed Net Investment (Loss)

     (1,004 )

Accumulated Net Realized Gain on Investments

     486,413  

Net Unrealized Appreciation in Value of Investments

     744,875  
        

Net Assets

   $ 4,453,800  
        

Shares of Capital Stock Outstanding (No Par Value, Unlimited Shares Authorized)

     274,554  
        

Net Asset Value, Offering and Redemption Price Per Share ($4,453,800 / 274,554 Shares)

   $ 16.22  
        

The accompanying notes are an integral part of these financial statements.

Timothy Plan Small Cap Variable Fund [13]


SMALL CAP VARIABLE

STATEMENT OF OPERATIONS

For the Six Months Ended June 30, 2007 - (Unaudited)

 

INVESTMENT INCOME

  
     amount  

Interest from affiliated funds

   $ 3,153  

Dividends

     22,537  
        

Total Investment Income

     25,690  
        

EXPENSES

  
     amount  

Investment Advisory Fees [Note 3]

     22,245  

Fund Accounting, Transfer Agency, & Administration Fees

     4,004  

Custodian Fees

     1,417  

Audit Fees

     494  

Participation Fees

     4,449  

Printing Fees

     309  

Legal Expense

     289  

Insurance Expense

     187  

Miscellaneous Expense

     1,810  
        

Total Expenses

     35,204  

Expenses Waived by Advisor [Note 3]

     (8,510 )
        

Total Net Expenses

     26,694  
        

Net Investment (Loss)

     (1,004 )
        

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS

  
     amount  

Net Realized Gain on Investments

     458,015  

Change in Unrealized Appreciation (Depreciation) of Investments

     (119,596 )
        

Net Realized and Unrealized Gain on Investments

     338,419  
        

Increase in Net Assets Resulting from Operations

   $ 337,415  
        

The accompanying notes are an integral part of these financial statements.

Timothy Plan Small Cap Variable Fund [14]


SMALL CAP VARIABLE

STATEMENT OF CHANGES IN NET ASSETS

INCREASE (DECREASE) IN NET ASSETS

 

     six months ended
06/30/07
(Unaudited)
    year ended
12/31/06
 

Operations:

    

Net Investment (Loss)

   $ (1,004 )   $ (500 )

Net Realized Gain on Investments

     458,015       810,259  

Change in Unrealized Appreciation (Depreciation) of Investments

     (119,596 )     (9,865 )
                

Net Increase in Net Assets (resulting from operations)

     337,415       799,894  
                

Distributions to Shareholders:

    

Net Realized Gains

     —         (830,364 )
                

Total Distributions to Shareholders

     —         (830,364 )
                

Capital Share Transactions:

    

Proceeds from Shares Sold

     46,855       151,102  

Dividends Reinvested

     —         830,364  

Cost of Shares Redeemed

     (442,439 )     (1,324,321 )
                

Decrease in Net Assets (resulting from capital share transactions)

     (395,584 )     (342,855 )
                

Total Decrease in Net Assets

     (58,169 )     (373,325 )
                

Net Assets:

    

Beginning of Period

     4,511,969       4,885,294  
                

End of Period

   $ 4,453,800     $ 4,511,969  
                

Accumulated Undistributed Net Investment Income (Loss):

   $ (1,004 )   $ —    
                

Shares of Capital Stock of the Fund Sold and Redeemed:

    

Shares Sold

     3,050       9,173  

Shares Reinvested

     —         55,543  

Shares Redeemed

     (28,519 )     (81,135 )
                

Net Decrease in Number of Shares Outstanding

     (25,469 )     (16,419 )
                

The accompanying notes are an integral part of these financial statements.

Timothy Plan Small Cap Variable Fund [15]


SMALL CAP VARIABLE

FINANCIAL HIGHLIGHTS

The table below set forth financial data for one share of capital stock outstanding throughout each year presented.

 

      six months
ended
06/30/07
    year
ended
12/31/06
    year
ended
12/31/05
    year
ended
12/31/04
    year
ended
12/31/03
    year
ended
12/31/02
 
     (Unaudited)                                

Per Share Operating Performance:

            

Net Asset Value, Beginning of Period

   $ 15.04     $ 15.44     $ 16.83     $ 15.10     $ 10.70     $ 13.05  
                                                

Income from Investment Operations:

            

Net Investment Income (Loss)

     (0.00 (A)     (0.01 )     0.01  (B)     (0.01 (B)     (0.03 (B)     (0.01 (B)

Net Realized and Unrealized Gain (Loss) on Investments

     1.18       2.90       (0.12 )     1.74       4.43       (2.26 )
                                                

Total from Investment Operations

     1.18       2.89       (0.11 )     1.73       4.40       (2.27 )
                                                

Less Distributions:

            

Distributions from Realized Gains

     —         (3.29 )     (1.28 )     —         —         —    

Return of Capital

     —         —         —         —         —         (0.08 )
                                                

Total Distributions

     —         (3.29 )     (1.28 )     —         —         (0.08 )
                                                

Net Asset Value at End of Period

   $ 16.22     $ 15.04     $ 15.44     $ 16.83     $ 15.10     $ 10.70  
                                                

Total Return (C)

     7.85 (D)     18.86 %     (0.66 )%     11.46 %     41.12 %     (17.38 )%

Ratios/Supplemental Data:

            

Net Assets, End of Period (in 000s)

   $ 4,454     $ 4,512     $ 4,885     $ 5,563     $ 5,300     $ 4,839  

Ratio of Expenses to Average Net Assets:

            

Before Reimbursement and Waiver of Expenses by Advisor

     1.58 (E)     1.64 %     1.69 %     1.63 %     1.56 %     1.82 %

After Reimbursement and Waiver of Expenses by Advisor

     1.20 (E)     1.20 %     1.20 %     1.20 %     1.20 %     1.20 %

Ratio of Net Investment Income (Loss) to Average Net Assets:

            

Before Reimbursement and Waiver of Expenses by Advisor

     (0.43 )% (E)     (0.45 )%     (0.43 )%     (0.52 )%     (0.55 )%     (0.73 )%

After Reimbursement and Waiver of Expenses by Advisor

     (0.05 )% (E)     (0.01 )%     0.06 %     (0.09 )%     (0.19 )%     (0.11 )%

Portfolio Turnover

     32.36 %     48.18 %     59.82 %     63.35 %     51.95 %     69.14 %

 

(A) Net Investment Income (Loss) amounted to less than 0.005 per share.

 

(B) Net Investment Income (Loss) was calculated using average shares method.

 

(C) Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund assuming reinvestment of dividends.

Total return would have been lower if certain expenses had not been reimbursed or waived.

 

(D) Not Annualized.

 

(E) Annualized.

 

The accompanying notes are an integral part of these financial statements.

Timothy Plan Small Cap Variable Fund [16]


NOTES TO FINANCIAL STATEMENTS

June 30, 2007 (Unaudited)

SMALL CAP VARIABLE SERIES

 

Note 1 – Significant Accounting Policies

The Timothy Plan Small-Cap Variable Series (the “Fund”) was organized as a diversified series of The Timothy Plan (the “Trust”). The Trust is an open-ended investment company established under the laws of Delaware by an Agreement and Declaration of Trust dated December 16, 1993 (the “Trust Agreement”). The Fund’s primary objective is long-term capital growth, with a secondary objective of current income. The Fund seeks to achieve its investment objective by investing primarily in common stocks and American Depositary Receipts (ADRs) while abiding by ethical standards established for investments by the Fund. The Fund is one of one series of funds currently authorized by the Board of Trustees (the “Board”). The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America for investment companies.

 

A. Security Valuation.

Investments in securities traded on a national securities exchange are valued at the NASDAQ official closing price on the last business day of the period. Securities for which quotations are not available are valued at fair market value as determined in good faith by the Fund’s investment manager, in conformity with guidelines adopted by and subject to the review and supervision of the Board of Trustees (the “Board”). Unlisted securities, or listed securities in which there were no sales, are valued at the closing bid. Short-term obligations with remaining maturities of 60 days or less are valued at cost plus accrued interest, which approximates market value.

The Fund generally determines the total value of its shares by using market prices for the securities comprising its portfolio. Securities for which quotations are not available and any other assets are valued at fair market value as determined in good faith by each Fund’s investment manager, in conformity with guidelines adopted by and subject to the review and supervision of the Board.

The Board has delegated to the Adviser and/or Sub-Advisers responsibility for determining the value of Fund portfolio securities under certain circumstances. Under such circumstances, the Adviser or Sub-Adviser will use its best efforts to arrive at the fair value of a security held by the Fund under all reasonably ascertainable facts and circumstances. The Adviser must prepare a report for the Board no less than quarterly containing a complete listing of any securities for which fair value pricing was employed and detailing the specific reasons for such fair value pricing. The Trust has adopted written policies and procedures to guide the Adviser and Sub-Advisers with respect to the circumstances under which, and the methods to be used, in fair valuing securities.

The Fund generally invests the vast majority of its assets in frequently traded exchange listed securities of domestic issuers with relatively liquid markets and calculates its NAV as of the time those exchanges close. The Fund typically does not invest in securities on foreign exchanges or in illiquid or restricted securities. Accordingly, there may be very limited circumstances under which the Fund would hold securities that would need to be fair value priced.

In September 2006, FASB issued Statement on Financial Accounting Standards (SFAS) No. 157 “Fair Value Measurements.” This standard establishes a single authoritative definition of fair value, sets out a framework for measuring fair value and requires additional disclosure about fair value measurements. SFAS No. 157 applies to fair value measurements already required or permitted by existing standards. SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. The changes to current generally accepted accounting principles from the application of this Statement relate to the definition of fair value, the methods used to measure fair value, and the expanded disclosures about fair value measurements. As of June 30, 2007, the Trust does not believe the adoption of SFAS No. 157 will impact the amounts reported in the financial statements, however, additional disclosures may be required about the inputs used to develop the measurements and the effect of certain measurements reported on the statement of changes in net assets for a fiscal period.

 

Timothy Plan Notes to Financial Statements [17]


NOTES TO FINANCIAL STATEMENTS

June 30, 2007 (Unaudited)

SMALL CAP VARIABLE SERIES

 

B. Investment Income and Securities Transactions.

Security transactions are accounted for on the date the securities are purchased or sold (trade date). Cost is determined and gains and losses are based on the identified cost basis for both financial statement and federal income tax purposes. Dividend income is recognized on the ex-dividend date. Interest income and expenses are recognized on an accrual basis. Withholding taxes on foreign dividends have been provided for in accordance with the Fund’s understanding of the applicable country’s tax rules and rates.

 

C. Net Asset Value Per Share.

Net asset per share of the capital stock of the Fund is determined daily as of the close of trading on the New York Stock Exchange by dividing the value of its net assets by the number of Fund shares outstanding.

 

D. Federal Income Taxes.

It is the policy of the Fund to continue to comply with all requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Therefore, no federal income tax provision is required.

In June 2006, the Financial Accounting Standards Board (FASB) issued FASB Interpretation No. 48 – Accounting for Uncertainty in Income Taxes that requires the tax effects of certain tax positions to be recognized. These tax positions must meet a “more likely than not” standard that, based on their technical merits, have a more than 50 percent likelihood of being sustained upon examination. FASB Interpretation No. 48 is effective for fiscal periods beginning after December 15, 2006. At adoption, the financial statements must be adjusted to reflect only those tax positions that are more likely than not of being sustained. Management of the Fund has evaluated its current tax positions and does not believe the adoption of FIN 48 has an impact on the financial statements.

 

E. Use of Estimates.

In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, management makes 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, as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

 

F. Expenses.

Expenses incurred by the Trust that do not relate to a specific fund of the Trust are allocated to the individual funds based on each fund’s relative net assets or other appropriate basis (as determined by the Board).

 

G. Distributions to Shareholders.

Distributions to shareholders, which are determined in accordance with income tax regulations, are recorded on the ex-dividend date. The treatment for financial reporting purposes of distributions made to shareholders during the year from net investment income or net realized capital gains may differ from their ultimate treatment for federal income tax purposes. These differences are caused primarily by differences in the timing of the recognition of certain components of income, expense or realized capital gain for federal income tax purposes. Where such differences are permanent in nature, they are reclassified in the components of net assets based on their ultimate characterization for federal income tax purposes. Any such reclassifications will have no effect on net assets, results of operations, or net asset values per share of the Fund.

 

Note 2 – Purchases and Sales of Securities

Purchases and sales of securities, other than short-term investments, aggregated $1,406,968 and $1,841,238 respectively, for the six months ended June 30, 2007.

 

Note 3 – Investment Management Fee and Other Transactions with Affiliates

Timothy Partners, Ltd., (“TPL”) is the investment adviser for the Fund pursuant to an investment advisory agreement (the “Agreement”) that was renewed by the Board on February 27, 2007. Under the terms

 

Timothy Plan Notes to Financial Statements [18]


NOTES TO FINANCIAL STATEMENTS

June 30, 2007 (Unaudited)

SMALL CAP VARIABLE SERIES

 

of the Agreement, TPL receives a fee, accrued daily and paid monthly, at an annual rate of 1.00% of the average daily net assets of the Fund. Under a separate investment sub-advisory agreement with TPL, Awad Asset Management serves as Sub-Adviser to the Fund. Under the terms of the sub-advisory agreement, TPL pays the Sub-Adviser. TPL has contractually agreed to reduce fees payable to it by the Fund and reimburse other expenses to the extent necessary to limit the Fund’s aggregate annual operating expenses, excluding brokerage commissions and other portfolio transaction expenses, interest, taxes, capital expenditures and extraordinary expenses, to 1.20% of average daily net assets through the life of the Fund. As a result, TPL has waived a portion of their fee and reimbursed the Fund for expenses in excess of the limit in the amount of $8,510 for the six months ended June 30, 2007. Any waiver or reimbursement by TPL is subject to repayment by the Fund within the following three fiscal years if the Fund is able to make the repayment without exceeding its current expense limitation. An officer and trustee of the Fund is also an officer of the Adviser.

TPL earned advisory fees of $22,245 for the six months ended June 30, 2007. The Fund owed $2,322 in advisory fees to TPL at June 30, 2007.

At December 31, 2006, the cumulative amounts available for reimbursement that have been paid and/or waived by the Adviser on behalf of the Fund are as follows:

 

Small-Cap Variable Series

   $ 67,664

At December 31, 2006, the Adviser may recapture a portion of the above amounts no later than the dates as stated below:

 

     December 31,
     2007    2008    2009

Small-Cap Variable Series

   $ 23,105    $ 24,326    $ 20,233

TPL has permanently waived the reimbursement of $17,225 in expenses due to the expiration of the repayment period. For the six months ended June 30, 2007, $8,510 may be subject to potential repayment by the Fund to TPL through December 31, 2010.

 

Note 4 – Control Ownership

The beneficial ownership, either directly or indirectly, of more than 25% of the voting securities of a Fund creates presumption of control of the Fund under Section 2(a) 9 of the Investment Company Act of 1940. As of June 30, 2007, Annuity Investors Life Insurance Co. (“AILIC”) held for the benefit of others in aggregate, 100% of Small Cap Variable Series. The Trust and TPL have entered into a Participation Agreement with AILIC. Under the Participation Agreement, AILIC maintains the records related to the Fund’s shares in the insurance company separate accounts, processes all purchases and redemptions within the accounts, and provides other administrative and shareholder services for an administrative services fee of 0.20% of the Fund’s assets.

 

Note 5 – Unrealized Appreciation (Depreciation)

At June 30, 2007, the cost of investment securities for federal income tax purposes is $3,740,154. At June 30, 2007 the composition of gross unrealized appreciation (depreciation) of investment securities for tax purposes is as follows:

 

     Appreciation    Depreciation     Net App/Dep

Small-Cap Variable Series

   $ 851,384    $ (106,509 )   $ 744,875

As of June 30, 2007, there were no differences between book and tax costs of investments.

 

Timothy Plan Notes to Financial Statements [19]


NOTES TO FINANCIAL STATEMENTS

June 30, 2007 (Unaudited)

SMALL CAP VARIABLE SERIES

 

Note 6 – Distributions to Shareholders

The tax character of distributions paid during 2005 and 2006 were as follows:

 

     Small Cap
Variable Series

2006

  

Ordinary Income

   $ 0

Short-Term Capital Gains

     124,569

Long-Term Capital Gains

     705,795
      
   $ 830,364
      

2005

  

Ordinary Income

   $ 0

Long-Term Capital Gains

     373,708
      
   $ 373,708
      

As of December 31, 2006, the components of distributable earnings on a tax basis were as follows:

 

Undistributed Ordinary Income

   $          1,701

Undistributed Long-Term Capital Gains

     26,697

Unrealized Appreciation (Depreciation)

     864,471
      
   $ 892,869
      

 

Timothy Plan Notes to Financial Statements [20]


DISCLOSURES

June 30, 2007 (Unaudited)

SMALL CAP VARIABLE SERIES

 

BOARD ANNUAL APPROVAL/RENEWALS OF ADVISORY AND SUB-ADVISORY AGREEMENTS (Unaudited)

Timothy Partners, Ltd; Investment Adviser to all Funds

The continuance of the Investment Advisory Agreement (the “IA Agreement”) on behalf of each series of the Trust between the Trust and Timothy Partners, Ltd. (“TPL”) was last approved by the Trustees, including a majority of the Trustees who are not interested persons of the Trust or any person who is a party to the Agreement, at an in-person meeting held on February 23, 2007. The Trust’s Board of Trustees considered the factors described below prior to approving the Agreement. The Trustees, including the Independent Trustees, noted the Adviser’s experience incorporating and implementing the unique, biblically-based management style that is a stated objective as set forth in the Funds’ prospectus.

To further assist the Board in making its determination as to whether the IA Agreement should be renewed, the Board requested and received the following information: a description of TPL’s business and any personnel changes, a description of the compensation received by TPL from the Funds, information relating to the Adviser’s policies and procedures regarding best execution, trade allocation, soft dollars, code of ethics and insider trading, and a description of any material legal proceedings or securities enforcement proceedings regarding TPL or its personnel. In addition, the Board requested and received financial statements of TPL for its fiscal year ended December 31, 2006. The Board also received a report from TPL relating to the fees charged by TPL, both as an aggregate and in relation to fees charged by other advisers to similar funds. The materials prepared by TPL were provided to the Board in advance of the meeting. The Board considered the fees charged by TPL in light of the services provided to the Funds by TPL, the unique nature of the Funds and their moral screening requirements, which are maintained by TPL, and TPL’s role as a manager of managers. After full and careful consideration, the Board, with the independent trustees separately concurring, agreed that the fees charged by TPL were fair and reasonable in light of the services provided to the Funds. The Board also discussed the nature, extent and quality of TPL’s services to the Funds. In particular, the Board noted with approval TPL’s efforts in providing comprehensive and consistent moral screens to the investment managers, its efforts in maintaining appropriate oversight of the investment managers to each Fund, and its efforts to maintain ongoing regulatory compliance for the Funds. The Board also discussed TPL’s current fee structure and whether such structure would allow the Funds to realize economies of scale as they grow. The Board noted that TPL currently is paid a flat rate on all Fund assets, and as the Funds grow, that rate structure may need to be revisited and a “breakpoint” structure imposed. However, the Board also noted that TPL had been subsidizing many of the Funds’ operations since their inception at significant expense to TPL, and that any future restructuring of the Advisory Agreement fee rates would be undertaken recognizing the need to insure that the Adviser’s contributions to the Funds were balanced with the interests of the Funds then current shareholders. The Board next considered the investment performance of each Fund and the Adviser’s performance in monitoring the investment managers. The Board generally approved of each Fund’s performance, noting that the Funds invested in a manner that did not rely exclusively on investment performance. Further, the Board noted with approval that the investment managers of each Fund did not succumb to style drift in their management of each Fund’s assets, and that each Fund was committed to maintain its investment mandate, even if that meant under-performance during periods when that style was out of favor. The Board noted with approval the Adviser’s ongoing efforts to maintain such consistent investment discipline. The Board also noted with approval that the Adviser’s business was devoted exclusively to serving the Funds, and that the Adviser did not realize any ancillary benefits or profits deriving from its relationship with the Funds. The Board further noted with approval the Adviser’s past activities on monitoring the performance of the Funds’ various investment managers and the promptness and efficiency with which problems were brought to the Board’s attention and responsible remedies proffered and executed. After careful discussion and consideration, the Board, including the independent Trustees who unanimously cast an affirmative vote, determined that the renewal of the Agreement for another one-year period would be in the best interests of the Funds’ shareholders. In approving the renewal of the Advisory Agreement for an additional one year period, the Board did not place specific emphasis on any one factor discussed above, but considered all factors in equal light. Further, the Board had available and availed itself of the assistance of legal counsel at all times during its consideration of the Advisory Agreement renewal.

 

Timothy Plan Disclosures [21]


DISCLOSURES

June 30, 2007 (Unaudited)

SMALL CAP VARIABLE SERIES

 

Awad Asset Management; Sub-Adviser for the Small-Cap Variable Fund.

The Sub-Advisory Agreement between the Trust, TPL and Awad Asset Management (“Awad”), on behalf of the Timothy Plan Small-Cap Variable Fund, was last renewed by the Board at a meeting held for that purpose, among others, on February 23, 2007. The Board considered the following factors in arriving at its conclusions to renew the Awad Sub-Advisory Agreement for an additional year. First, the Board considered the fees charged by Awad in light of the services provided by Awad. After full and careful consideration, the Board, with the independent trustees separately concurring, agreed that the fees charged by Awad and paid out of the fees received by TPL were fair and reasonable in light of the services provided by Awad. In reaching that determination, the Board relied on reports describing the fees paid to Awad and comparing those fees against fees paid to other investment advisers operating under similar circumstances. The Board also received a report from an independent consulting firm which had conducted its own analysis of fee structures for the Trust. Finally, the Board also heard reports from TPL with respect to its ongoing experiences with recruiting experienced sub-advisers and the fees required to successfully recruit such persons. Next, the Board discussed the nature, extent and quality of Awad’s services to the Fund, including the investment performance of the Fund under Awad’s investment management. The Board generally approved of Awad’s performance, noting that the Fund managed by Awad invested in a manner that did not rely exclusively on investment performance. Further, the Board noted with approval that Awad did not succumb to “style drift” in its management of the Fund’s assets, and that Awad was committed to maintain its investment mandate, even if that meant under-performance during periods when that style was out of favor. The Board noted with approval Awad’s ongoing efforts to maintain such consistent investment discipline. Next, the Board considered whether Awad’s current fee structure would allow the Fund to realize economies of scale as it grows. The Board decided that this particular factor was moot with respect to the Awad Sub-Advisory Agreement because Awad was paid out of the fees paid to TPL. After careful discussion and consideration, the Board, including the independent Trustees separately concurring, unanimously determined that the renewal of the Awad Sub-Advisory Agreement for another one-year period would be in the best interests of the Fund’s shareholders. In approving the renewal of the Awad Sub-Advisory Agreement for an additional one year period, the Board did not place specific emphasis on any one factor discussed above, but considered all factors in equal light. Further, the Board had available and availed itself of the assistance of legal counsel at all times during its consideration of the Awad Sub-Advisory Agreement renewal.

N-Q Disclosure & Proxy Procedures (Unaudited)

The SEC has adopted the requirement that all Funds file a complete schedule of investments with the SEC for their first and third fiscal quarters on Form N-Q for fiscal quarters ending after July 9, 2004. For the Timothy Plan Funds this would be for the fiscal quarters ending March 31 and September 30. The Form N-Q filing must be made within 60 days of the end of the quarter. The Timothy Plan Funds’ Forms N-Q will be available on the SEC’s website at www.sec.gov, or they may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC (call 1-800-732-0330 for information on the operation of the Public Reference Room).

The Trust has adopted Portfolio Proxy Voting Policies and Procedures under which the Portfolio’s vote proxies related to securities (“portfolio proxies”) held by the Portfolios. A description of the Trust’s Portfolio Proxy Voting Policies and Procedures is available (i) without charge, upon request, by calling the Company toll-free at 1-800-846-7526 and (ii) on the SEC’s website at www.sec.gov in addition, the fund will be required to file new Form N-PX, with its complete voting record for the 12 months ended June 30th, no later than August 31st of each year. The first such filing was due August 31, 2004. Once filed, the Trust’s Form N-PX will be available (i) without charge, upon request, by calling the Company toll-free at 1-800-846-7526 and (ii) on the SEC’s website at www.sec.gov.

 

Timothy Plan Disclosures [22]


NOTES TO FINANCIAL STATEMENTS

June 30, 2007 (Unaudited)

SMALL CAP VARIABLE SERIES

 

Note 1 – Significant Accounting Policies

The Timothy Plan Small-Cap Variable Series (the “Fund”) was organized as a diversified series of The Timothy Plan (the “Trust”). The Trust is an open-ended investment company established under the laws of Delaware by an Agreement and Declaration of Trust dated December 16, 1993 (the “Trust Agreement”). The Fund’s primary objective is long-term capital growth, with a secondary objective of current income. The Fund seeks to achieve its investment objective by investing primarily in common stocks and American Depositary Receipts (ADRs) while abiding by ethical standards established for investments by the Fund. The Fund is one of one series of funds currently authorized by the Board of Trustees (the “Board”). The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America for investment companies.

 

A. Security Valuation.

Investments in securities traded on a national securities exchange are valued at the NASDAQ official closing price on the last business day of the period. Securities for which quotations are not available are valued at fair market value as determined in good faith by the Fund’s investment manager, in conformity with guidelines adopted by and subject to the review and supervision of the Board of Trustees (the “Board”). Unlisted securities, or listed securities in which there were no sales, are valued at the closing bid. Short-term obligations with remaining maturities of 60 days or less are valued at cost plus accrued interest, which approximates market value.

The Fund generally determines the total value of its shares by using market prices for the securities comprising its portfolio. Securities for which quotations are not available and any other assets are valued at fair market value as determined in good faith by each Fund’s investment manager, in conformity with guidelines adopted by and subject to the review and supervision of the Board.

The Board has delegated to the Adviser and/or Sub-Advisers responsibility for determining the value of Fund portfolio securities under certain circumstances. Under such circumstances, the Adviser or Sub-Adviser will use its best efforts to arrive at the fair value of a security held by the Fund under all reasonably ascertainable facts and circumstances. The Adviser must prepare a report for the Board no less than quarterly containing a complete listing of any securities for which fair value pricing was employed and detailing the specific reasons for such fair value pricing. The Trust has adopted written policies and procedures to guide the Adviser and Sub-Advisers with respect to the circumstances under which, and the methods to be used, in fair valuing securities.

The Fund generally invests the vast majority of its assets in frequently traded exchange listed securities of domestic issuers with relatively liquid markets and calculates its NAV as of the time those exchanges close. The Fund typically does not invest in securities on foreign exchanges or in illiquid or restricted securities. Accordingly, there may be very limited circumstances under which the Fund would hold securities that would need to be fair value priced.

In September 2006, FASB issued Statement on Financial Accounting Standards (SFAS) No. 157 “Fair Value Measurements.” This standard establishes a single authoritative definition of fair value, sets out a framework for measuring fair value and requires additional disclosure about fair value measurements. SFAS No. 157 applies to fair value measurements already required or permitted by existing standards. SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. The changes to current generally accepted accounting principles from the application of this Statement relate to the definition of fair value, the methods used to measure fair value, and the expanded disclosures about fair value measurements. As of June 30, 2007, the Trust does not believe the adoption of SFAS No. 157 will impact the amounts reported in the financial statements, however, additional disclosures may be required about the inputs used to develop the measurements and the effect of certain measurements reported on the statement of changes in net assets for a fiscal period.

 

Timothy Plan Notes to Financial Statements [17]


NOTES TO FINANCIAL STATEMENTS

June 30, 2007 (Unaudited)

SMALL CAP VARIABLE SERIES

 

B. Investment Income and Securities Transactions.

Security transactions are accounted for on the date the securities are purchased or sold (trade date). Cost is determined and gains and losses are based on the identified cost basis for both financial statement and federal income tax purposes. Dividend income is recognized on the ex-dividend date. Interest income and expenses are recognized on an accrual basis. Withholding taxes on foreign dividends have been provided for in accordance with the Fund’s understanding of the applicable country’s tax rules and rates.

 

C. Net Asset Value Per Share.

Net asset per share of the capital stock of the Fund is determined daily as of the close of trading on the New York Stock Exchange by dividing the value of its net assets by the number of Fund shares outstanding.

 

D. Federal Income Taxes.

It is the policy of the Fund to continue to comply with all requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Therefore, no federal income tax provision is required.

In June 2006, the Financial Accounting Standards Board (FASB) issued FASB Interpretation No. 48 – Accounting for Uncertainty in Income Taxes that requires the tax effects of certain tax positions to be recognized. These tax positions must meet a “more likely than not” standard that, based on their technical merits, have a more than 50 percent likelihood of being sustained upon examination. FASB Interpretation No. 48 is effective for fiscal periods beginning after December 15, 2006. At adoption, the financial statements must be adjusted to reflect only those tax positions that are more likely than not of being sustained. Management of the Fund has evaluated its current tax positions and does not believe the adoption of FIN 48 has an impact on the financial statements.

 

E. Use of Estimates.

In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, management makes 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, as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

 

F. Expenses.

Expenses incurred by the Trust that do not relate to a specific fund of the Trust are allocated to the individual funds based on each fund’s relative net assets or other appropriate basis (as determined by the Board).

 

G. Distributions to Shareholders.

Distributions to shareholders, which are determined in accordance with income tax regulations, are recorded on the ex-dividend date. The treatment for financial reporting purposes of distributions made to shareholders during the year from net investment income or net realized capital gains may differ from their ultimate treatment for federal income tax purposes. These differences are caused primarily by differences in the timing of the recognition of certain components of income, expense or realized capital gain for federal income tax purposes. Where such differences are permanent in nature, they are reclassified in the components of net assets based on their ultimate characterization for federal income tax purposes. Any such reclassifications will have no effect on net assets, results of operations, or net asset values per share of the Fund.

 

Note 2 – Purchases and Sales of Securities

Purchases and sales of securities, other than short-term investments, aggregated $1,406,968 and $1,841,238 respectively, for the six months ended June 30, 2007.

 

Note 3 – Investment Management Fee and Other Transactions with Affiliates

Timothy Partners, Ltd., (“TPL”) is the investment adviser for the Fund pursuant to an investment advisory agreement (the “Agreement”) that was renewed by the Board on February 27, 2007. Under the terms

 

Timothy Plan Notes to Financial Statements [18]


NOTES TO FINANCIAL STATEMENTS

June 30, 2007 (Unaudited)

SMALL CAP VARIABLE SERIES

 

of the Agreement, TPL receives a fee, accrued daily and paid monthly, at an annual rate of 1.00% of the average daily net assets of the Fund. Under a separate investment sub-advisory agreement with TPL, Awad Asset Management serves as Sub-Adviser to the Fund. Under the terms of the sub-advisory agreement, TPL pays the Sub-Adviser. TPL has contractually agreed to reduce fees payable to it by the Fund and reimburse other expenses to the extent necessary to limit the Fund’s aggregate annual operating expenses, excluding brokerage commissions and other portfolio transaction expenses, interest, taxes, capital expenditures and extraordinary expenses, to 1.20% of average daily net assets through the life of the Fund. As a result, TPL has waived a portion of their fee and reimbursed the Fund for expenses in excess of the limit in the amount of $8,510 for the six months ended June 30, 2007. Any waiver or reimbursement by TPL is subject to repayment by the Fund within the following three fiscal years if the Fund is able to make the repayment without exceeding its current expense limitation. An officer and trustee of the Fund is also an officer of the Adviser.

TPL earned advisory fees of $22,245 for the six months ended June 30, 2007. The Fund owed $2,322 in advisory fees to TPL at June 30, 2007.

At December 31, 2006, the cumulative amounts available for reimbursement that have been paid and/or waived by the Adviser on behalf of the Fund are as follows:

 

Small-Cap Variable Series

   $ 67,664

At December 31, 2006, the Adviser may recapture a portion of the above amounts no later than the dates as stated below:

 

     December 31,
     2006    2007    2008    2009

Small-Cap Variable Series

   $ 17,225    $ 23,105    $ 24,326    $ 20,233

TPL has permanently waived the reimbursement of $17,225 in expenses due to the expiration of the repayment period. For the six months ended June 30, 2007, $8,510 may be subject to potential repayment by the Fund to TPL through December 31, 2010.

 

Note 4 – Control Ownership

The beneficial ownership, either directly or indirectly, of more than 25% of the voting securities of a Fund creates presumption of control of the Fund under Section 2(a) 9 of the Investment Company Act of 1940. As of June 30, 2007, Annuity Investors Life Insurance Co. (“AILIC”) held for the benefit of others in aggregate, 100% of Small Cap Variable Series. The Trust and TPL have entered into a Participation Agreement with AILIC. Under the Participation Agreement, AILIC maintains the records related to the Fund’s shares in the insurance company separate accounts, processes all purchases and redemptions within the accounts, and provides other administrative and shareholder services for an administrative services fee of 0.20% of the Fund’s assets.

 

Note 5 – Unrealized Appreciation (Depreciation)

At June 30, 2007, the cost of investment securities for federal income tax purposes is $3,740,154. At June 30, 2007 the composition of gross unrealized appreciation (depreciation) of investment securities for tax purposes is as follows:

 

     Appreciation    Depreciation     Net App/Dep

Small-Cap Variable Series

   $ 851,384    $ (106,509 )   $ 744,875

As of June 30, 2007, there were no differences between book and tax costs of investments.

 

Timothy Plan Notes to Financial Statements [19]


NOTES TO FINANCIAL STATEMENTS

June 30, 2007 (Unaudited)

SMALL CAP VARIABLE SERIES

 

Note 6 – Distributions to Shareholders

The tax character of distributions paid during 2005 and 2006 were as follows:

 

     Small Cap
Variable Series

2006

  

Ordinary Income

   $ —  

Short-Term Capital Gains

   $ 124,569

Long-Term Capital Gains

     705,795
      
   $ 830,364
      

2005

  

Ordinary Income

   $ —  

Long-Term Capital Gains

     373,708
      
   $ 373,708
      

As of December 31, 2006, the components of distributable earnings on a tax basis were as follows:

 

Undistributed Ordinary Income

   $          1,701

Undistributed Long-Term Capital Gains

     26,697

Unrealized Appreciation (Depreciation)

     864,471
      
   $ 892,869
      

 

Timothy Plan Notes to Financial Statements [20]


DISCLOSURES

June 30, 2007 (Unaudited)

SMALL CAP VARIABLE SERIES

 

BOARD ANNUAL APPROVAL/RENEWALS OF ADVISORY AND SUB-ADVISORY AGREEMENTS (Unaudited)

Timothy Partners, Ltd; Investment Adviser to all Funds

The continuance of the Investment Advisory Agreement (the “IA Agreement”) on behalf of each series of the Trust between the Trust and Timothy Partners, Ltd. (“TPL”) was last approved by the Trustees, including a majority of the Trustees who are not interested persons of the Trust or any person who is a party to the Agreement, at an in-person meeting held on February 23, 2007. The Trust’s Board of Trustees considered the factors described below prior to approving the Agreement. The Trustees, including the Independent Trustees, noted the Adviser’s experience incorporating and implementing the unique, biblically-based management style that is a stated objective as set forth in the Funds’ prospectus.

To further assist the Board in making its determination as to whether the IA Agreement should be renewed, the Board requested and received the following information: a description of TPL’s business and any personnel changes, a description of the compensation received by TPL from the Funds, information relating to the Adviser’s policies and procedures regarding best execution, trade allocation, soft dollars, code of ethics and insider trading, and a description of any material legal proceedings or securities enforcement proceedings regarding TPL or its personnel. In addition, the Board requested and received financial statements of TPL for its fiscal year ended December 31, 2006. The Board also received a report from TPL relating to the fees charged by TPL, both as an aggregate and in relation to fees charged by other advisers to similar funds. The materials prepared by TPL were provided to the Board in advance of the meeting. The Board considered the fees charged by TPL in light of the services provided to the Funds by TPL, the unique nature of the Funds and their moral screening requirements, which are maintained TPL, and TPL’s role as a manager of managers. After full and careful consideration, the Board, with the independent trustees separately concurring, agreed that the fees charged by TPL were fair and reasonable in light of the services provided to the Funds. The Board also discussed the nature, extent and quality of TPL’s services to the Funds. In particular, the Board noted with approval TPL’s efforts in providing comprehensive and consistent moral screens to the investment managers, its efforts in maintaining appropriate oversight of the investment managers to each Fund, and its efforts to maintain ongoing regulatory compliance for the Funds. The Board also discussed TPL’s current fee structure and whether such structure would allow the Funds to realize economies of scale as they grow. The Board noted that TPL currently is paid a flat rate on all Fund assets, and as the Funds grow, that rate structure may need to be revisited and a “breakpoint” structure imposed. However, the Board also noted that TPL had been subsidizing many of the Funds’ operations since their inception at significant expense to TPL, and that any future restructuring of the Advisory Agreement fee rates would be undertaken recognizing the need to insure that the Adviser’s contributions to the Funds were balanced with the interests of the Funds then current shareholders. The Board next considered the investment performance of each Fund and the Adviser’s performance in monitoring the investment managers. The Board generally approved of each Fund’s performance, noting that the Funds invested in a manner that did not rely exclusively on investment performance. Further, the Board noted with approval that the investment managers of each Fund did not succumb to style drift in their management of each Fund’s assets, and that each Fund was committed to maintain its investment mandate, even if that meant under-performance during periods when that style was out of favor. The Board noted with approval the Adviser’s ongoing efforts to maintain such consistent investment discipline. The Board also noted with approval that the Adviser’s business was devoted exclusively to serving the Funds, and that the Adviser did not realize any ancillary benefits or profits deriving from its relationship with the Funds. The Board further noted with approval the Adviser’s past activities on monitoring the performance of the Funds’ various investment managers and the promptness and efficiency with which problems were brought to the Board’s attention and responsible remedies proffered and executed. After careful discussion and consideration, the Board, including the independent Trustees who unanimously cast an affirmative vote, determined that the renewal of the Agreement for another one-year period would be in the best interests of the Funds’ shareholders. In approving the renewal of the Advisory Agreement for an additional one year period, the Board did not place specific emphasis on any one factor discussed above, but considered all factors in equal light. Further, the Board had available and availed itself of the assistance of legal counsel at all times during its consideration of the Advisory Agreement renewal.

 

Timothy Plan Disclosures [21]


DISCLOSURES

June 30, 2007 (Unaudited)

SMALL CAP VARIABLE SERIES

 

Awad Asset Management; Sub-Adviser for the Small-Cap Variable Fund.

The Sub-Advisory Agreement between the Trust, TPL and Awad Asset Management (“Awad”), on behalf of the Timothy Plan Small-Cap Variable Fund, was last renewed by the Board at a meeting held for that purpose, among others, on February 23, 2007. The Board considered the following factors in arriving at its conclusions to renew the Awad Sub-Advisory Agreement for an additional year. First, the Board considered the fees charged by Awad in light of the services provided by Awad. After full and careful consideration, the Board, with the independent trustees separately concurring, agreed that the fees charged by Awad and paid out of the fees received by TPL were fair and reasonable in light of the services provided by Awad. In reaching that determination, the Board relied on reports describing the fees paid to Awad and comparing those fees against fees paid to other investment advisers operating under similar circumstances. The Board also received a report from an independent consulting firm which had conducted its own analysis of fee structures for the Trust. Finally, the Board also heard reports from TPL with respect to its ongoing experiences with recruiting experienced sub-advisers and the fees required to successfully recruit such persons. Next, the Board discussed the nature, extent and quality of Awad’s services to the Fund, including the investment performance of the Fund under Awad’s investment management. The Board generally approved of Awad’s performance, noting that the Fund managed by Awad invested in a manner that did not rely exclusively on investment performance. Further, the Board noted with approval that Awad did not succumb to “style drift” in its management of the Fund’s assets, and that Awad was committed to maintain its investment mandate, even if that meant under-performance during periods when that style was out of favor. The Board noted with approval Awad’s ongoing efforts to maintain such consistent investment discipline. Next, the Board considered whether Awad’s current fee structure would allow the Fund to realize economies of scale as it grows. The Board decided that this particular factor was moot with respect to the Awad Sub-Advisory Agreement because Awad was paid out of the fees paid to TPL. After careful discussion and consideration, the Board, including the independent Trustees separately concurring, unanimously determined that the renewal of the Awad Sub-Advisory Agreement for another one-year period would be in the best interests of the Fund’s shareholders. In approving the renewal of the Awad Sub-Advisory Agreement for an additional one year period, the Board did not place specific emphasis on any one factor discussed above, but considered all factors in equal light. Further, the Board had available and availed itself of the assistance of legal counsel at all times during its consideration of the Awad Sub-Advisory Agreement renewal.

N-Q Disclosure & Proxy Procedures (Unaudited)

The SEC has adopted the requirement that all Funds file a complete schedule of investments with the SEC for their first and third fiscal quarters on Form N-Q for fiscal quarters ending after July 9, 2004. For the Timothy Plan Funds this would be for the fiscal quarters ending March 31 and September 30. The Form N-Q filing must be made within 60 days of the end of the quarter. The Timothy Plan Funds’ Forms N-Q will be available on the SEC’s website at www.sec.gov, or they may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC (call 1-800-732-0330 for information on the operation of the Public Reference Room).

The Trust has adopted Portfolio Proxy Voting Policies and Procedures under which the Portfolio’s vote proxies related to securities (“portfolio proxies”) held by the Portfolios. A description of the Trust’s Portfolio Proxy Voting Policies and Procedures is available (i) without charge, upon request, by calling the Company toll-free at 1-800-846-7526 and (ii) on the SEC’s website at www.sec.gov in addition, the fund will be required to file new Form N-PX, with its complete voting record for the 12 months ended June 30th, no later than August 31st of each year. The first such filing was due August 31, 2004. Once filed, the Trust’s Form N-PX will be available (i) without charge, upon request, by calling the Company toll-free at 1-800-846-7526 and (ii) on the SEC’s website at www.sec.gov.

 

Timothy Plan Disclosures [22]


BOARD OF TRUSTEES

Arthur D. Ally

Joseph E. Boatwright

Rick Copeland

Bill Johnson

Kathryn T. Martinez

John C. Mulder

Charles E. Nelson

Wesley W. Pennington

Scott Preissler

Alan Ross

Mathew D. Staver

David Tolliver

OFFICERS

Arthur D. Ally, President

Joseph E. Boatwright, Secretary

INVESTMENT ADVISER

Timothy Partners, LTD.

1055 Maitland Center Commons

Maitland, FL 32751

DISTRIBUTOR

Timothy Partners, LTD.

1055 Maitland Center Commons

Maitland, FL 32751

TRANSFER AGENT

Unified Fund Services, Inc.

431 N Pennsylvania St.

Indianapolis, IN 46204

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Cohen Fund Audit Services, Ltd.

800 Westpoint Parkway, Suite 1100

Westlake, OH 44145-1524

LEGAL COUNSEL

David Jones & Assoc., P.C.

395 Sawdust Road, Suite 2148

The Woodlands, TX 77380

For additional information or a prospectus, please call: 1-800-846-7525

Visit the Timothy Plan web site on the internet at: www.timothyplan.com

This report is submitted for the general information of the shareholders of the Funds. It is not authorized for distribution to prospective investors in the Funds unless preceded or accompanied by an effective Prospectus which includes details regarding the Funds’ objectives, policies, expenses and other information. Distributed by Timothy Partners, Ltd.


LOGO

1055 Maitland Center Commons, #100

Maitland, Florida 32751

(800) TIM-PLAN

(800) 846-7526

Visit the Timothy Plan web site on the internet at:

www.timothyplan.com

This report is submitted for the general information of the shareholders of the Fund. It is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective Prospectus which includes details regarding the Fund’s objectives, policies, expenses and other information. Distributed by Timothy Partners, Ltd. Member FINRA.


Item 2. Code of Ethics. NOT APPLICABLE – disclosed with annual report

 

Item 3. Audit Committee Financial Expert. NOT APPLICABLE- disclosed with annual report

 

Item 4. Principal Accountant Fees and Services. NOT APPLICABLE – disclosed with annual report

 

Item 5. Audit Committee of Listed Companies. NOT APPLICABLE – applies to listed companies only

 

Item 6. Schedule of Investments. NOT APPLICABLE – schedule filed with Item 1.

 

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Funds. NOT APPLICABLE – applies to closed-end funds only

 

Item 8. Portfolio Managers of Closed-End Management Investment Companies. NOT APPLICABLE – applies to closed-end funds only

 

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. NOT APPLICABLE – applies to closed-end funds only

 

Item 10. Submission of Matters to a Vote of Security Holders. The registrant has not adopted procedures by which shareholders may recommend nominees to the registrant’s board of trustees.

 

Item 11. Controls and Procedures.

(a) Based on an evaluation of the registrant’s disclosure controls and procedures as of August 23, 2007, the disclosure controls and procedures are reasonably designed to ensure that the information required in filings on Forms N-CSR is recorded, processed, summarized, and reported on a timely basis.

(b) There were no significant changes in the registrant’s internal control over financial reporting that occurred during the registrant’s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

Item 12. Exhibits.

 

(a)(1)   Not Applicable – filed with annual report
(a)(2)   Certifications by the registrant’s principal executive officer and principal financial officer, pursuant to Section 302 of the Sarbanes- Oxley Act of 2002 and required by Rule 30a-2under the Investment Company Act of 1940 are filed herewith.
(a)(3)   Not Applicable
(b)   Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 is filed herewith.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

(Registrant) The Timothy Plan
By  
*   /s/ Arthur D. Ally
  Arthur D. Ally, President

Date 8/30/07

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By  
*   /s/ Arthur D. Ally
  Arthur D. Ally, President

Date 8/30/07

 

By  
*   /s/ Arthur D. Ally
  Arthur D. Ally, Treasurer

Date 8/30/07

EX-99.CERT 2 dex99cert.htm CERTIFICATIONS Certifications

SECTION 302 CERTIFICATIONS

I, Arthur D. Ally, certify that:

1. I have reviewed this report on Form N-CSR of the Timothy Plan;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: 8/30/07     /s/ Arthur D. Ally
    Arthur D. Ally
    President


SECTION 302 CERTIFICATIONS

I, Arthur D. Ally, certify that:

1. I have reviewed this report on Form N-CSR of the Timothy Plan;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: 8/30/07     /s/ Arthur D. Ally
    Arthur D. Ally
    Treasurer
EX-99.906CE 3 dex99906ce.htm CERTIFICATIONS PURSUANT TO RULE 906 Certifications Pursuant to Rule 906

SECTION 906 CERTIFICATION

Arthur D. Ally, President and Treasurer of the Timothy Plan (the “Registrant”), certifies to the best of his knowledge that:

1. The Registrant’s periodic report on Form N-CSR for the period ended June 30, 2007 (the “Form N-CSR”) fully complies with the requirements of Sections 15(d) of the Securities Exchange Act of 1934, as amended; and

2. The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

 

President     Treasurer
Timothy Plan     Timothy Plan
/s/ Arthur D. Ally     /s/ Arthur D. Ally
Arthur D. Ally     Arthur D. Ally
Date: 8/30/07     Date: 8/30/07

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to the Timothy Plan and will be retained by the Timothy Plan and furnished to the Securities and Exchange Commission (the “Commission”) or its staff upon request.

This certification is being furnished to the Commission solely pursuant to 18 U.S.C. ss. 1350 and is not being filed as part of the Form N-CSR filed with the Commission.

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-----END PRIVACY-ENHANCED MESSAGE-----