MONONGAHELA ALL CAP VALUE FUND

MONONGAHELA ALL CAP VALUE FUNDSCHEDULE OF INVESTMENTSAPRIL 30, 2016SharesSecurityDescriptionCommon Stock - 79.3%Consumer Discretionary - 13.5%5,500 Coach, Inc.11,000 El Pollo Loco Holdings, Inc. (a)3,500 Harley-Davidson, Inc.4,000 Williams-Sonoma, Inc. Consumer Staples - 15.8%5,000 Alico, Inc.700 Dr. Pepper Snapple Group, Inc.1,700 Mead Johnson Nutrition Co.2,500 The Coca-Cola Co.2,250 The Procter & Gamble Co.3,000 Unilever PLC, ADR4,000 Whole Foods Market, Inc.Gross Unrealized AppreciationGross Unrealized DepreciationNet Unrealized Appreciation 422,549(229,985)192,564The inputs or methodology used for valuing securities are not necessarilyan indication of the risks associated with investing in those securities. Formore information on valuation inputs, and their aggregation into thelevels used in the table below, please refer to the Security Valuationsection in Note 2 of the accompanying Notes to Financial Statements.Valuation InputsLevel 1 - Quoted PricesLevel 2 - Other Significant Observable InputsLevel 3 - Significant Unobservable InputsTotalInvestments inSecurities 4,519,3841,020,640 5,540,024The Level 1 value displayed in this table is Common Stock. The Level 2value displayed in this table is a Money Market Fund. Refer to thisSchedule of Investments for a further breakout of each security trials - 17.1%2,500 American Airlines Group, Inc.3,500 Cubic Corp.2,000 Cummins, Inc.2,500 Emerson Electric Co.1,500 General Electric Co.1,250 Hubbell, Inc.4,000 MSA Safety, Inc. The following is a summary of the inputs used to value the Fund’sinvestments as of April 30, 2016.163,575189,60090,20055,470498,845Health Care - 7.6%3,000 Baxter International, Inc.1,000 Johnson & Johnson1,000 PerkinElmer, Inc.900 Teleflex, Inc.American Depositary ReceiptPublic Limited CompanyNon-income producing security.Variable rate security. Rate presented is as of April 30, 2016.* Cost for federal income tax purposes is 5,347,460 and net unrealizedappreciation consists of:102,18080,280182,460Financials - 8.8%2,500 American Express Co.6,000 Federated Investors, Inc., Class B2,000 MetLife, Inc.3,000 Old Republic International Corp.The Fund utilizes the end of period methodology when determiningtransfers. There were no transfers among Level 1, Level 2 and Level 3 forthe year ended April 30, 2,360973,540Materials - 1.5%3,000 The Mosaic Co.PORTFOLIO HOLDINGS% of Total InvestmentsConsumer DiscretionaryConsumer StaplesEnergyFinancialsHealth CareIndustrialsMaterialsTechnologyUtilitiesMoney Market Fund83,970Technology - 9.9%7,500 Corning, Inc.11,000 II-VI, Inc. (a)1,000 Microsoft Corp.16,000 Schmitt Industries, Inc. (a)5,000 Seagate Technology es - 1.9%2,000 National Fuel Gas Co.Total Common Stock (Cost 4,326,820)See Notes to Financial 2Energy - 3.2%1,000 Chevron Corp.3,000 Western Refining, Inc.Money Market Fund - 17.9%1,020,640 Dreyfus Treasury Prime CashManagement, 0.15% (b) (cost 1,020,640)Total Investments - 97.2%(Cost 5,347,460)*Other Assets & Liabilities, Net – 2.8%Net Assets – 0 .6%1.5%10.2%2.0%18.4%100.0%

MONONGAHELA ALL CAP VALUE FUNDSTATEMENT OF ASSETS AND LIABILITIESAPRIL 30, 2016ASSETS.Total investments, at value (Cost 5,347,460) 5,540,024Receivables:Fund shares sold25,000Investment securities sold141,632Dividends6,264From investment adviser7,217Prepaid expenses5,644Total Assets5,725,781LIABILITIESAccrued Liabilities:Fund services fees6,735Other expenses20,859Total Liabilities27,594NET ASSETS 5,698,187 5,454,320COMPONENTS OF NET ASSETSPaid-in capitalUndistributed net investment income19,550Accumulated net realized gain31,753Net unrealized appreciation192,564 NET ASSETS498,146SHARES OF BENEFICIAL INTEREST AT NO PAR VALUE (UNLIMITED SHARES AUTHORIZED)NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE**Shares redeemed or exchanged within 60 days of purchase are charged a 1.00% redemption fee.See Notes to Financial Statements.55,698,187 11.44

MONONGAHELA ALL CAP VALUE FUNDSTATEMENT OF OPERATIONSYEAR ENDED APRIL 30, 2016INVESTMENT INCOMEDividend income (Net of foreign withholding taxes of 698). Total Investment Income99,18099,180AdviserEXPENSESInvestment adviser fees36,326Fund services fees165,662Custodian fees5,000Registration fees6,029Professional fees34,443Trustees' fees and expenses2,777Miscellaneous expenses15,111Total Expenses265,348Fees waived and expenses reimbursed(224,179)Net Expenses41,169NET INVESTMENT INCOME58,011NET REALIZED AND UNREALIZED GAIN (LOSS)Net realized gain on investments78,380Net change in unrealized appreciation (depreciation) on investments(121,540)(43,160)NET REALIZED AND UNREALIZED LOSS INCREASE IN NET ASSETS RESULTING FROM OPERATIONSSee Notes to Financial Statements.614,851

MONONGAHELA ALL CAP VALUE FUNDSTATEMENTS OF CHANGES IN NET ASSETSApril 30, 2016#42490# #For the Year EndedApril 30, 201642124For the Year EndedApril 30, 2015OPERATIONSNet investment income Net realized gain (loss)58,011 78,380Net change in unrealized appreciation (depreciation)Increase in Net Assets Resulting from 40DISTRIBUTIONS TO SHAREHOLDERS FROMNet investment income(47,625)(20,387)Net realized gain(39,259)(40,281)(86,884)(60,668)Total Distributions to ShareholdersCAPITAL SHARE TRANSACTIONSSale of shares1,494,598Reinvestment of distributionsRedemption of e in Net Assets from Capital Share Transactions1,546,2981,616,317Increase in Net Assets1,474,2651,745,3894,223,9222,478,533NET ASSETSBeginning of YearEnd of Year (Including line (a)) 5,698,187 4,223,922SHARE TRANSACTIONSSale of shares132,585Reinvestment of distributionsRedemption of sharesIncrease in Shares(a)5,325(3,241)(4,323)137,323Undistributed net investment incomeSee Notes to Financial Statements.139,5837,979 719,550140,585 9,164

MONONGAHELA ALL CAP VALUE FUNDFINANCIAL HIGHLIGHTSThese financial highlights reflect selected data for a share outstanding throughout each period.For the Year EndedApril 30, 2016NET ASSET VALUE, Beginning of Period 11.71For the Year EndedApril 30, 2015 11.25For the Period July 1, 2013(a) through April 30, 2014 10.00INVESTMENT OPERATIONSNet investment income (b)Net realized and unrealized gain (loss)Total from Investment DISTRIBUTIONS TO SHAREHOLDERS FROMNet investment income(0.10)(0.07)(0.03)Net realized gain(0.09)(0.14)(0.14)(0.19)(0.21)(0.17)Total Distributions to ShareholdersNET ASSET VALUE, End of Period——REDEMPTION FEES (b) 11.44(0.59)%TOTAL RETURN 11.716.01%—(c) 11.2514.29%(d)RATIOS/SUPPLEMENTARY DATANet Assets at End of Period (000's omitted) 5,698 4,224 2,479Ratios to Average Net Assets:Net investment income1.20%0.71%Net expenses0.85%0.85%0.85%(e)Gross expenses (f)5.49%7.76%14.84%(e)95%71%32%(d)PORTFOLIO TURNOVER RATE(a)(b)(c)Commencement of operations.Calculated based on average shares outstanding during each period.Less than 0.01 per share.(d)(e)(f)Not annualized.Annualized.Reflects the expense ratio excluding any waivers and/or reimbursements.See Notes to Financial Statements.80.64%(e)

MONONGAHELA ALL CAP VALUE FUNDNOTES TO FINANCIAL STATEMENTSAPRIL 30, 2016Note 1. OrganizationThe Monongahela All Cap Value Fund (the “Fund”) is a diversified portfolio of Forum Funds (the “Trust”). The Trust isa Delaware statutory trust that is registered as an open-end, management investment company under the InvestmentCompany Act of 1940 (the “Act”), as amended. Under its Trust Instrument, the Trust is authorized to issue an unlimitednumber of the Fund’s shares of beneficial interest without par value. The Fund commenced operations on July 1, 2013.The Fund seeks total return through long-term capital appreciation and income.Note 2. Summary of Significant Accounting PoliciesThese financial statements are prepared in accordance with accounting principles generally accepted in the UnitedStates of America (“GAAP”), which require management to make estimates and assumptions that affect the reportedamounts of assets and liabilities, the disclosure of contingent liabilities at the date of the financial statements, and thereported amounts of increases and decreases in net assets from operations during the fiscal year. Actual amounts coulddiffer from those estimates. The following summarizes the significant accounting policies of the Fund:Security Valuation – Exchange-traded securities and over-the-counter securities are valued using the last quoted tradeor official closing price, provided by independent pricing services as of the close of trading on the market or exchangefor which they are primarily traded, on each Fund business day. In the absence of a sale, such securities are valued atthe mean of the last bid and ask price provided by independent pricing services. Non-exchange-traded securities forwhich quotations are available are valued using the last quoted sales price, or in the absence of a sale, at the mean of thelast bid and ask prices provided by independent pricing services. Short-term investments that mature in 60 days or lessmay be valued at amortized cost.The Fund values its investments at fair value pursuant to procedures adopted by the Trust's Board of Trustees (the"Board") if (1) market quotations are insufficient or not readily available or (2) the adviser believes that the valuesavailable are unreliable. The Trust’s Valuation Committee, as defined in the Fund’s registration statement, performscertain functions as they relate to the administration and oversight of the Fund’s valuation procedures. Under theseprocedures, the Valuation Committee convenes on a regular and ad-hoc basis to review such investments and considersa number of factors, including valuation methodologies and significant unobservable inputs, when arriving at fairvalue.The Valuation Committee may work with the adviser to provide valuation inputs. In determining fair valuations,inputs may include market-based analytics which may consider related or comparable assets or liabilities, recenttransactions, market multiples, book values and other relevant investment information. Adviser inputs may include anincome-based approach in which the anticipated future cash flows of the investment are discounted in determining fairvalue. Discounts may also be applied based on the nature or duration of any restrictions on the disposition of theinvestments. The Valuation Committee performs regular reviews of valuation methodologies, key inputs andassumptions, disposition analysis and market activity.Fair valuation is based on subjective factors and, as a result, the fair value price of an investment may differ from thesecurity’s market price and may not be the price at which the asset may be sold. Fair valuation could result in a differentNAV than a NAV determined by using market quotes.The Fund has a three-tier fair value hierarchy. The basis of the tiers is dependent upon the various “inputs” used todetermine the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below:Level 1 — quoted prices in active markets for identical assets and liabilitiesLevel 2 — other significant observable inputs (including quoted prices of similar securities, interest rates, prepaymentspeeds, credit risk, etc.)Level 3 — significant unobservable inputs (including the Fund’s own assumptions in determining the fair value ofinvestments)9

MONONGAHELA ALL CAP VALUE FUNDNOTES TO FINANCIAL STATEMENTSAPRIL 30, 2016The aggregate value by input level, as of April 30, 2016, for the Fund’s investments is included in the Fund’s Scheduleof Investments.Security Transactions, Investment Income and Realized Gain and Loss – Investment transactions are accounted for onthe trade date. Dividend income is recorded on the ex-dividend date. Foreign dividend income is recorded on the exdividend date or as soon as possible after the Fund determines the existence of a dividend declaration after exercisingreasonable due diligence. Income and capital gains on some foreign securities may be subject to foreign withholdingtaxes, which are accrued as applicable. Interest income is recorded on an accrual basis. Premium is amortized anddiscount is accreted using the effective interest method. Identified cost of investments sold is used to determine the gainand loss for both financial statement and federal income tax purposes.Distributions to Shareholders – Distributions to shareholders of net investment income and net capital gains, if any,are declared and paid at least annually. Distributions to shareholders are recorded on the ex-dividend date.Distributions are based on amounts calculated in accordance with applicable federal income tax regulations, which maydiffer from GAAP. These differences are due primarily to differing treatments of income and gain on variousinvestment securities held by the Fund, timing differences and differing characterizations of distributions made by theFund.Federal Taxes – The Fund intends to qualify each year as a regulated investment company under Subchapter M of theInternal Revenue Code of 1986, as amended (“Code”) and to distribute all of its taxable income to shareholders. Inaddition, by distributing in each calendar year substantially all of its net investment income and capital gains, if any, theFund will not be subject to a federal excise tax. Therefore, no federal income or excise tax provision is required. TheFund files a U.S. federal income and excise tax return as required. A fund’s federal income tax returns are subject toexamination by the Internal Revenue Service for a period of three fiscal years after they are filed. As of April 30, 2016,there are no uncertain tax positions that would require financial statement recognition, de-recognition, or disclosure.Income and Expense Allocation – The Trust accounts separately for the assets, liabilities and operations of each of itsinvestment portfolios. Expenses that are directly attributable to more than one investment portfolio are allocated amongthe respective investment portfolios in an equitable manner.Redemption Fees – A shareholder who redeems or exchanges shares within 60 days of purchase will incur aredemption fee of 1.00% of the current net asset value of shares redeemed or exchanged, subject to certain limitations.The fee is charged for the benefit of the remaining shareholders and will be paid to the Fund to help offset transactioncosts. The fee is accounted for as an addition to paid-in capital. The Fund reserves the right to modify the terms of orterminate the fee at any time. There are limited exceptions to the imposition of the redemption fee.Commitments and Contingencies – In the normal course of business, the Fund enters into contracts that providegeneral indemnifications by the Fund to the counterparty to the contract. The Fund’s maximum exposure under thesearrangements is dependent on future claims that may be made against the Fund and, therefore, cannot be estimated;however, based on experience, the risk of loss from such claims is considered remote.Note 3. Fees and ExpensesInvestment Adviser – Rodgers Brothers, Inc. d/b/a Monongahela Capital Management (the “Adviser”) is theinvestment adviser to the Fund. Pursuant to an investment advisory agreement, the Adviser receives an advisory feefrom the Fund at an annual rate of 0.75% of the Fund’s average daily net assets.Distribution – Foreside Fund Services, LLC serves as the Fund’s distributor (the “Distributor”). The Distributor is notaffiliated with the Adviser or Atlantic Fund Administration, LLC (d/b/a Atlantic Fund Services) (“Atlantic”) or theiraffiliates. The Fund does not have a distribution (12b-1) plan; accordingly, the Distributor does not receivecompensation from the Fund for its distribution (12b-1) services. The Adviser compensates the Distributor directly forits services.10

MONONGAHELA ALL CAP VALUE FUNDNOTES TO FINANCIAL STATEMENTSAPRIL 30, 2016Other Service Providers – Atlantic provides fund accounting, fund administration, compliance and transfer agencyservices to the Fund. Atlantic also provides certain shareholder report production, and EDGAR conversion and filingservices. Pursuant to an Atlantic services agreement, the Fund pays Atlantic customary fees for its services. Atlanticprovides a Principal Executive Officer, a Principal Financial Officer, a Chief Compliance Officer, and an Anti-MoneyLaundering Officer to the Fund, as well as certain additional compliance support functions.Trustees and Officers – The Trust pays each independent Trustee an annual retainer fee of 50,000 for service to theTrust ( 66,000 for the Chairman), and the Audit Committee Chairman and Vice Chairman receive an additional 6,000annually. The Trustees and Chairman may receive additional fees for special Board meetings. Each Trustee is alsoreimbursed for all reasonable out-of-pocket expenses incurred in connection with his duties as a Trustee, includingtravel and related expenses incurred in attending Board meetings. The amount of Trustees’ fees attributable to the Fundis disclosed in the Statement of Operations. Certain officers of the Trust are also officers or employees of the abovenamed service providers, and during their terms of office received no compensation from the Fund.Note 4. Expense Reimbursements and Fees WaivedThe Adviser has contractually agreed to waive a portion of its fee and reimburse certain expenses through September 1,2016, to limit annual operating expenses to 0.85% (excluding all taxes, interest, portfolio transaction expenses, dividendand interest expenses on short sales, acquired fund fees and expenses, proxy expenses and extraordinary expenses).Other Fund service providers have voluntarily agreed to waive a portion of their fees. The contractual waivers may bechanged or eliminated at any time with the consent of the Board and voluntary fee waivers and expensereimbursements may be reduced or eliminated at any time. For the fiscal year ended April 30, 2016, fees waived andexpenses reimbursed were as follows:Investment Adviser ExpensesReimbursedInvestment Adviser Fees Waived 36,326 Total Fees Waived and ExpensesReimbursedOther Waivers102,853 85,000 224,179Note 5. Security TransactionsThe cost of purchases and proceeds from sales of investment securities (including maturities), other than short-terminvestments during the fiscal year ended April 30, 2016, were 4,989,308 and 4,172,294, respectively.Note 6. Federal Income TaxDistributions paid during the fiscal years ended as noted were characterized for tax purposes as follows:2016Ordinary IncomeLong-Term Capital Gain 11201547,62539,25986,884 60,66860,668

MONONGAHELA ALL CAP VALUE FUNDNOTES TO FINANCIAL STATEMENTSAPRIL 30, 2016As of April 30, 2016, distributable earnings (accumulated loss) on a tax basis were as follows:Undistributed Ordinary IncomeUndistributed Long-Term GainUnrealized AppreciationTotal 19,55031,753192,564243,867Note 7. Subsequent EventsSubsequent events occurring after the date of this report through the date these financial statements were issued havebeen evaluated for potential impact and the Fund has had no such events.12

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRMTo Shareholders of Monongahela All Cap Value Fundand the Board of Trustees of Forum FundsWe have audited the accompanying statement of assets and liabilities of Monongahela All Cap Value Fund, a series ofshares of beneficial interest in Forum Funds, including the schedule of investments, as of April 30, 2016, and the relatedstatement of operations for the year then ended, the statements of changes in net assets for each of the years in the twoyear period then ended and the financial highlights for each of the years in the two-year period then ended and for theperiod July 1, 2013 (commencement of operations) through April 30, 2014. These financial statements and financialhighlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on thesefinancial statements and financial highlights based on our audits.We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (UnitedState

1,020,640 Dreyfus Treasury Prime Cash Management, 0.15% (b) (cost 1,020,640) 1,020,640 * MONONGAHELA ALL CAP VALUE FUND * MONONGAHELA ALL CAP VALUE FUND . MONONGAHELA ALL CAP VALUE FUND April 30, 2016 . MONONGAHELA ALL CAP VALUE FUND . MONONGAHELA ALL CAP VALUE FUND value.