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for it is in giving that we receive, it is in pardoning that we are pardoned,

Dear Friends, As we are closing another full year of events in our home, I am proud to say that each year we see positive changes in our children due to the patience and guidance of our team of caregivers and professionals. Our team focuses on the principles of our founder Fr. William B. Wasson, work, love, sharing, and responsibility, in order to form productive citizens. We consider it very important to thank each and every one of our benefactors and supporters. Because of them, we were able to support the community by donating 10 pre-fabricated classrooms to the local school which our children attend. The school suffered serious damage due to the deadly earthquake in August 2007. We were also able to re-build homes for four families that were selected with the help of the local parish priest from LunahuanĂĄ. These

four families were overjoyed once their homes were repaired and re-built. Again, we want to thank all the donors who helped with this generous gift for the people who lost everything during the earthquake. We also secured funds from the European offices to purchase a mini-van to transport our children to school, medical appointments, and other related trips. Also, 14 children received their Confirmation with the Bishop of CaĂąete and 9 children received their First Communion. Other important milestones this year were that two children graduated from primary school and our teenagers in secondary school excelled in their academics due to tutoring support form our caregivers. During school vacation, we implemented summer courses,

Total number of children: 43, Babies: 4, Girls: 16, Boys: 23, Kindergarten: 2, Primary School: 20, Secondary School: 15

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which turned out to be a big hit. We are very thankful to our caregivers, volunteers, and teachers who did an amazing job working with our children. We also implemented a library project so now the children have a place to enjoy books and relax. Four computers were also purchased for the library. The children and staff of Nuestros PequeĂąos Hermanos Peru want to thank you very sincerely and enormously for all that support and help during this rewarding past year. Alfredo Hernandez National Director

Operating Expenses 2008

Benefits & Insurance 14%

Salaries 30%

Administration 10% Sharing fund 1% Utilities 5% Maintenance 2% Food 11% Housing 14% Clothing 1% Transportation 7%

Administration and Accounting In 2008, the accounting department established strict documentary control policies which are more efficient, both of employees’ documents as well as operations of the home. Other major accomplishments this year have been our external audit and improving the information in our financial statements. Also, we managed the cash flow of projects such as the library, bedroom furniture, and TBC health program for all our children, pre-fabricated classrooms, and the construction of four homes to aid victims of the earthquake. For 2008, we had a total of 19 employees and 2 volunteers helping raise our family. We have 2 administrative staff, 2 cooks, 2 guards, 11 caregivers, 1 part-time doctor and 1 part-time psychologist. This year, as with the previous year, we have seen the trend of the dollar losing value against the Peruvian sol,

Medicine 3%

Education 2%

which has contributed to considerable loss for our home. As of last quarter it has started to stabilize. As a general comment, the uncertainty of the worldwide economic and financial crisis that occurred this fall has been on our minds. We know that our local bank has great strength and a lot of presence in the Peruvian market. We are lucky to say that this crisis has not deeply affected our Peruvian economy as of yet, though we are wary and preparing for the hit. The accounting department is always looking to establish new and better policies to help us work more efficiently. For example, we have met the timeline of delivering the financial information requested to us monthly by NPHI. Gilmer Alva Sarmiento Accountant and Administrator

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Construction Our home is currently located in the District of San Vicente de Cañete, 1.5 hours south of Lima. As part of our preparations to move to our new property in Cañete, where Ciudadela Santa Rosa de Lima will be built, we have found the perfect home to rent. Our present home is a former hotel complex in the tourist village of Lunahuaná, with soccer and volleyball fields so our children can play outdoors. We also have a small pond with fish and geese, much to the delight of our pequeños. The office of NPH Peru is situated in the district capital of San Vicente, some 45 minutes from our home, because an internet connection is not available in Lunahuaná. We are anxious to start building, so that we will all be living, working, and going to school close to each other. The final architecture plan for our site has been developed, including the area and location of each building for our complex. It will include: children’s homes; administrative office; homes for the director, volunteers, and visitors; and a dining/meeting hall. After a long bureaucratic process with the municipality of Cañete, we now have approval to apply for the construction permits for each building. We also have completed the technical studies for the well water, sewage, and electricity. To assist us with future relationship building, contacts with key executives of the supply companies and the municipality have been established. We have also met with potential construction companies so we can start working as soon as we obtain the permits.

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The original time schedule for the construction had to be adapted for 2008. This was necessary due to the proceedings at the municipality and the supply companies, which took much more time than expected and also due to the time needed for proper coordination between our home and NPHI. The municipality of Cañete was also working on the location of road and street access for our site. The technical staff of Cañete’s municipality had defined a street that would pass through our land and divide it into two parts. Working together with their department, we were able to redirect them and change the location of the road so it will now pass by one side of our property. For the elaboration of the plans of the buildings we worked together with an architect and two technicians. For other technical reports, such as the well and sewage, we coordinated with companies or individual professionals were contracted. Our goal is that during the first weeks of 2009, we have the necessary financial resources to finance the drilling of the water well and the construction of the reservoir tank. This will mark the beginning of the physical construction of our complex and also the basis to keep the proposed time schedule for construction for 2009. By the end of 2009, our goal is to have the construction of three children’s homes completed, along with the basic infrastructure, water, sewage water, and electricity.

Sponsorship Department Among our accomplishments this year were that our children made special, original cards for Godparents Day and Christmas. All of our children happily participated in these activities and did their best in decorating each card with their own personal touch. We also kept most of our sponsors. However, with new children, new sponsors arrived. We ended the year with 180 sponsors and 185 sponsorships, Italy being the country with the most sponsors. This year we had more options to share with the children on their birthdays because we had a little bit more from the Sharing Fund. Every three months we celebrate birthdays when we travel to the nearby city of San Vicente de Ca単ete since there are more options for a nice dinner and for the special shopping they themselves do with the money that is given to them by the coordinator of the sponsorship department. There we have a special dinner, birthday cake, and presents. The children are always very happy, to say the least.

Two Godparents visited, and their godchildren were extremely happy. One visit was for our youngster Franklin, who was thrilled to be able to play with the relatives of the family that came to visit him from Lima on behalf of her American sponsor. The other child was Anel who had the pleasant visit of her sponsor, who also brought some gifts for all our children. For next year, we would like one person to assist with the program especially around the month of March for Godparents Day and in the fall for the Christmas cards, since these are the two busiest times of year. This work needs to be done in time and the cards need to be delivered to the various offices for our sponsors. We would like to receive more children and at the same time more sponsors. It is important for our children to understand the beautiful work that each NPH office does for them and the many people that without knowing us, immensely help our homes.

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Psychology Department This was the first year in which children, caregivers, and volunteers participated in the monthly publication of the newspaper. Everyone put forth their best effort in the content of the newspaper, showing great artistic and literary skills. Our department organized workshops for children of all ages on self-esteem, sexuality, personal hygiene, and abuse prevention. For the caregivers we had workshops with the theme of personal growth, reading techniques, attention exercises, strategies of leadership and exposition of abilities. The caregivers were very open and they had a good attitude. We completed an evaluation of each caregiver in the areas of emotional intelligence, cognitive skills, and the aptness for work. We designed a monthly award program for the children who received excellent grades. They were recognized in front of everyone and were given special recognition and a prize. Since then, there has been a positive attitude in all the youths. Each child will have a monthly report card completed by the caregiver and psychologist. Daily activities such as counseling and tutoring were scheduled more personalized attention. On Valentine’s Day or Friendship Day, the children created thank you and appreciation cards for their caregivers. It was such a good experience to see even the little ones full of energy and enthusiasm to prepare very sensitive cards. When the caregivers received

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all these cards, they were very impressed and touched. They were not expecting this gesture from the children. It was a beautiful occasion to exchange experiences, stories, songs, and typical dances. Also the volunteers who participated shared stories of their respective countries with regard to the celebration for Valentine’s Day. The children are now asking, “When are we going to celebrate the next Valentine´s Day?” Perhaps in this coming new year we can count on the recognition of the caregivers towards the children. This year we had the support of a hired nurse for early childhood stimulation with the babies. During this year we incremented our consultations by 40%, evaluations of the caregivers by 100%, and administration by 90%. Our needs are materials for the early stimulation program. Some of our goals for next year are to computerize evaluations and create a more comprehensive database for each child and continue with workshops and training for our caregivers. We would also like to create a youth leadership program. Lic. Rita Elena Neira Quiroz Psychologist

Boys’ and Girls’ Homes This year our children received better grades, especially all the young teenagers who are in secondary school. Their maturity and behavior also improved during the course of the year. Our children participated in the many local school activities including a competition in which two students won first and second place in Mathematics. A student also won second place in Communications. The summer courses were popular with all of the children. We offered math and integral communication, computers, and arts and crafts. The classes were complemented with sports during the afternoons taught by caregivers and volunteers. Other major accomplishments were the workshops offered by the Psychology department and the implementation of the newspaper. Two staff and six children rotate and are responsible for creating the articles for that month.

With the help and guidance of the Psychology department we created a report card for every child, each month to see their progress at home and school, while paying special attention to participation, initiative, and responsibility. Our new library with four computers and many books helps form good reading habits as well as provides childcare educational books for our staff. The books and computers in the library also help the children with their homework. We also implemented an employee of the month recognition in gratitude for hard work. During the last four months of the year we have tried to reduce costs by limiting use of the washing machine, and turning on the water heaters only during bath time. We also walk with the children to school every morning instead of driving them in the mini-van.

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Anel is a very happy seven yearold. She loves to dance, sing, and participate in all the home activities. At school she was chosen to participate in the spring pageant. She took this very seriously and as a result could not sleep or eat. She was only thinking about the contest and was constantly simulating performing a speech to an audience and would start to model. There were times that she would pick up the leaves and place them on her head to make them look like a crown. She even took the high heel shoes of one of her caregivers. We did not know what to do with her. Finally, the long awaited day of the spring pageant arrived and she was crowned among all the participants as the Spring Queen. Agustina entered our home when she was eight years old. When she arrived she was always cursing and would not obey the caregivers. She was also rude to her siblings and would try to hit them. Her four sisters confirmed that she behaved like this in her previous home. With the love and patience of the caregivers and the work of the psychologist, we have seen that Agustina has matured greatly. Now at age 11, she likes to work in groups, is responsible and cooperative, and understands when she is in the wrong. In school, she is at the top of her class. Ruben is another case where we have seen a tremendous change. We used to send Ruben with another child to a special school were he was learning

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to read and write but he was never interested. It didn’t help that the other children would tease him. This year, we enrolled Ruben in school with other children and he has responded very well. We believed that it was necessary for him to integrate with the other children in the same school year. We currently have 10 caregivers but are in search for an older caregiver who knows more about babies and early stimulation. Next year we hope to have three youths giving their year of service, helping their brothers and sisters. Our population currently stands at 43 children. 2009 goals are to build the children’s homes on the new property, create a youth leader group, educate our children to become more independent and have excellent values and morals, and have more hours of recreation for our children. Home Coordinators Sonia Terán Correa and Roger Arista Sánchez

Healthcare The most prevalent diseases among our children were upper respiratory infections, fungal skin infections, gastrointestinal diseases, minor traumas, as well as allergy reactions. We also completed the Body Mass Index measures in all the children obtaining a normal result in all of them. We have also been working on vaccine schedules that were not complete for some of the children because of reasons such as lack of previous family interest, the far location of their homes from government clinics or hospitals, and lack of monetary resources. All children older than five were successfully protected against Hepatitis B after three consecutive vaccines during the year provided free by the Peruvian government. For the next coming year, we want to protect our children against Hepatitis A, which is an endemic infectious disease in our community.

We also performed general screenings to determine if there was a case of Pulmonary Tuberculosis including the PPD skin test reaction and the lung X-ray for all the children and caregivers. No positive cases were found after an exhaustive search. Our part-time physician comes once a week for consultations. We did have one professional nurse; however, she resigned and at this moment our efforts have been fruitless in the search for a replacement. However, we hope that in this coming year we can hire a competent nurse who likes to work with the children and can also be of great assistance to the caregivers. Roberto Israel Palacios, MD

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Social Work One of the biggest accomplishments since I joined NPH Peru was to obtain the government military service document for five of our youths, which is very important in order to acquire legal documents in the future. There were also positive contacts with the family court judge, from my hometown, with the objective of finding new children for our home. We also established contacts with other provinces outside of Ca単ete in the hope that they can assist with children in need. We re-organized the case files of every child with all the relevant information including the social work investigation paperwork, psychological information, medical records, legal information, academic report cards, and personal documents. This review helped us in determining what information was missing and also

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cases of children that joined our family during the past year. There was the very specific case of one child who is 13 years old who is living with a terminal disease. He has three younger siblings but we are waiting for a final decision by the family judge who asked us to take them into our home. Our goal is that we can establish a relationship with the regional authorities and create better networking in other regions and organizations in Peru with the main objective that our help and assistance get to the children that need it. Lic. Tula Lourdes Cruces Castillo Social Worker