AUDIT REPORT ANNUAL FINANCIAL STATEMENTS 2010 SOS CHILDRENS VILLAGES ROMANIA

Interaudit SRL has carried out a financial statements audit, for SOS Childrens Villages Association Romania, for 31st of December 2010 . Financial Statements include statement of financial position, statement of activities, accounting procedures and notes to the financial position, according to OMF 3055/2009 regarding the accounting procedures according to the European Standards, Lg.82/1991, OG 1969/2007 regarding the accounting procedures for non-profit associations, OG 26/2000 approved by L.246/2005 and SOS Kinderdorf International accounting and audit procedures. The mentioned financial statements include: Total Assets / Fund balance and Liabilities: 17.965.207 RON Loss from activities and restricted funds: 55.542 RON Management responsibility for financial statements According to the legislation mentioned before, the management of the organization is responsible with the conformity of the financial statement with accounting standards. That responsibility includes: designing, applying and maintaining a proper internal control system in order to present a true and fair view of the financial position of the Association, with no significant anomalies, caused by errors or frauds; selecting and applying proper accounting procedures; budget estimate according tothe actual economic circumstances. Auditors responsibility Our responsibility is to express an opinion on the financial statements based on our audit. We conducted our audit in accordance with the Audit Standard adopted by the Chamber of Financial Auditors of Romania and with International Standards on Audit. Those standards require us to act according with ethical procedures, to plan and perform the audit in order to obtain reasonable assurance that the financial statements are free of material misstatement. An audit includes the usage of procedures to obtain the audit evidence regarding the amounts and disclosures in the financial statements. The selected audit procedures depend on the auditors professional argument, including the risk evaluation that the financial statements could have significant misstatements caused by mistakes or frauds. Having into consideration that perspective, the auditor analyses the internal control system with the purpose of designing some adequate audit procedures, not to give an opinion regarding the performance of the internal control system. An audit also includes assessing the used accounting principles and the significant estimates made by the management, as well as the overall financial statements presentation evaluation. We believe that our audit provides a reasonable basis for our opinion.

Auditors Opinion In our opinion, the financial statements give a true and fair view, in all its significant aspects, for the financial position of the Association SOS Childrens Villages Romania, for the 31st of December 2010, and for the results of its operations and its cash flows for the year. Other aspects That report is addressed to the Board of Directors and General Assembly of the SOS Childrens Villages Romania and SOS Kinderdorf International usage. Our audit was conducted only to report those aspects regarding financial audit, not for other purposes. According to the law, we assume and accept the responsibility for our opinion only in front of Board of Directors and General Assembly of the SOS Childrens Villages Romania. Report about the conformity of administrators report with financial statements We examined the information in the administrators report and its conformity with the financial statements for 31 December 2010 and we havent identified any differences.

Bucharest, Romania 27.05.2011

INTERAUDIT S.R.L. Carmela Bobocea Financial Auditor