Report to the Permanent Council Annual Audit of Accounts and Financial Statements For the years ended December 31, 2010 and 2009

COMMEMORATIVE EDITION 100 years of the House of the Americas Report to the Permanent Council Annual Audit of Accounts and Financial Statements For the years ended December 31, 2010 and 2009 By the Board of External Auditors ADM By the Board of External Auditors ADM Organization of American States

GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 ORGANIZATION OF AMERICAN STATES BOARD OF EXTERNAL AUDITORS The Board of External Auditors ( The Board ) is responsible for the external audit of the accounts of the General Secretariat pursuant to the General Assembly Resolution 123 adopted on April 14, 1973, and Permanent Council Resolution 124 dated June 30, 1975. It began to function in March 1976, and adopted detailed rules and procedures to carry out its duties and responsibilities. These rules reflect the standards and requirements prescribed by the General Assembly and the Permanent Council for the external audit of the OAS. The Board is composed of three members elected by the General Assembly. ISBN 978-0-8270-5605-3 2 Photo Credit OAS Columbus Memorial Library Photograph Collection Photo Digitization Credit Gabriel Gross, OAS

ORGANIZATION OF AMERICAN STATES GENERAL SECRETARIAT REPORT TO THE PERMANENT COUNCIL ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS For the years ended December 31, 2010 and 2009 OEA/Ser.S JAE/doc.41/11 April 27, 2011 Original: English 2010 By the Board of External Auditors ADM

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GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 TABLE OF CONTENTS SECTION I 9 BOARD OF EXTERNAL AUDITORS REPORT 11 BOARD OF EXTERNAL AUDITORS REPORT 11 Executive Summary 13 Chapter 1 - Comments Relating to the General Secretariat 19 Chapter 2 - Comments Relating to Other OAS and Related Entities 25 Chapter 3 - Comments Relating to the Office of the Inspector General SECTION II 29 FINANCIAL STATEMENTS OF THE ORGANIZATION OF AMERICAN STATES (OAS) 31 Management Discussion and Analysis (MD&A) 47 Responsibility for Financial Statements 51 Chapter 4 - Regular, FEMCIDI, Specific and Service Funds of the OAS 107 Chapter 5 - Leo S. Rowe Pan American Fund 117 Chapter 6 - Rowe Memorial Benefit Fund 125 Chapter 7 - OAS Medical Benefits Trust Fund SECTION III 135 FINANCIAL STATEMENTS OF AGENCIES AND ENTITIES RELATED TO THE ORGANIZATION OF AMERICAN STATES (OAS) 137 Chapter 8 - Trust for the Americas 147 Chapter 9 - Inter-American Defense Board SECTION IV 157 ORGANIZATION OF AMERICAN STATES (OAS) RETIREMENT AND PENSION FUND 159 Chapter 10 - OAS Retirement and Pension Fund 7

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SECTION I Courtesy of OAS Columbus Memorial Library Photograph Collection BOARD OF EXTERNAL AUDITORS REPORT 11 Executive Summary 13 Chapter 1 - Comments Relating to the General Secretariat 19 Chapter 2 - Comments Relating to Other OAS and Related Entities 25 Chapter 3 - Comments Relating to the Office of the Inspector General 9

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BOARD OF EXTERNAL AUDITORS REPORT EXECUTIVE SUMMARY The OAS faces a continuing challenge to address a funding shortfall between projected quotas and approved Regular Fund expenditures. Meanwhile cost pressures continue. For example, United Nations wages increased this year by 6 13%. This supports the need to maintain quota increases to meet inflationary cost increases. It also reinforces the need to be vigilant in the costing and prioritizing of mandates, both new and recurring. The Board understands that the OAS faces difficulty in asking member states for increased quota assessments in a period of continued international economic uncertainty. Nonetheless, the OAS supports and delivers an impressive range of programs and activities that are broadly supported by its member states. The reality in recent years is that a chronic excess of expenditures over quota revenues has exhausted the financial reserves used to cover the Regular Fund shortfall. The Board is concerned that difficult decisions need to be made to find a balance of measures to increase revenues and decrease expenditures in order to avoid a chronic Regular Fund deficit. Otherwise the ability of the OAS to properly meet the needs of its member states will suffer. The OAS closed the 2010 fiscal year with a meager cash balance of USD 46,000. This is a precariously small balance at any point in time for an organization with the cash flow of the OAS. Any delays in receipts of revenues can cause a situation of insufficient funds to pay operational costs. The Board believes that the OAS should establish a reserve to at least cover and avoid temporary cash deficits. Property is another serious financial issue for the OAS. Years of minimal spending on repairs and maintenance have created a large deficit of deferred maintenance costs. The deficit for maintenance has been well documented over the years. There have been many attempts to outline measures to resolve it. Most measures require immediate up-front expenditures. Clearly a key decision will be how to raise such funds. An obvious one that is supported by the Board is the sale of a property, particularly the Casa del Soldado. The Board strongly advises that any proceeds from the sale of properties be strategically used to address facilities infrastructure problems and deferred maintenance at other OAS properties, and avoid the temptation to use them for day to day operations. The Board notes that efforts on administrative and management reforms have stalled. While the Board acknowledges that this was caused by the need for OAS to focus on the immediate funding crisis, we believe it is important to reinvigorate these activities going forward. Additionally, the Board believes that an IT Governance Board should be established and empowered with the directed authority of the Secretary General. It should include senior level representatives of the user communities and technologists working together to establish a true integrated operational IT plan for the OAS. This Governance Board needs to consider topics including security, outsourcing, assessments of new business applications, aging infrastructure, continuity of operations, and disaster recovery. 11

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CHAPTER 1 COMMENTS RELATING TO THE GENERAL SECRETARIAT This Chapter includes a summary of the financial condition of the Regular, Specific, and Voluntary Funds, and also addresses management initiatives undertaken to implement recommendations contained in last year s Board report as well as new issues identified by the Board. STATUS OF RECOMENDATION FROM BOARD S 2009 REPORT The Board recognizes that the OAS successfully addressed an acute challenge in 2009 by scaling back expenditures in order to meet a multimillion dollar shortfall in the Regular Fund. This required the elimination of 45 positions and repositioning of many staff. Clearly this occupied the time and attention of OAS management. This was all predicted, and without keeping a continuing focus on the necessary reforms there is a significant risk of further staff reductions. Courtesy of OAS Columbus Memorial Library Photograph Collection Courtesy of OAS Columbus Memorial Library Photograph Collection The Board notes that some progress was made in addressing recommendations in its 2009 Report. Much remains to be done and the Board believes that it is important to re-energize efforts to address the recommendations that are reaffirmed in this chapter of the Board s 2010 Report. In addition, the Board raises a new recommendation regarding the need for a senior level IT Governance Board. FINANCIAL STATEMENT AUDIT REPORTS AND SUPPORTING RECORDS The independent external auditing firm, Ernst and Young, LLP (E&Y), conducted the audits of the 2010 financial statements of the significant funds and entities managed by OAS and indicated it will issue unqualified ( clean ) opinions, the highest level audit results, on all of the funds and entities it audited. Nonetheless, the statements reflect the use of modified cash basis accounting standards which the Board believes are not optimal. The Board encourages the OAS to continue to work with its external auditor and other advisers they have engaged to implement International Public Sector Accounting Standards (IPSAS) for accrual based financial statements. INDEPENDENT AUDITORS ASSESSMENT OF THE INTERNAL CONTROL ENVIRONMENT Overall, E&Y reported that OAS internal control environment was generally effective. E&Y reported no significant deficiencies, but does intend to report two deficiencies related to IADB fixed assets, and National Offices, as well as other matters related to IPSAS implementation, mandatory ethics training, and consideration of auditing the OAS 401M plan. These issues have been communicated to appropriate officials within OAS. 13

Section I - Chapter 1 GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 FINANCIAL CONDITION OF THE OAS REGULAR, SPECIFIC AND VOLUNTARY FUNDS Last year the financial condition of the Regular Fund and related Reserve Subfund were on the precipice of crisis and not sustainable, therefore OAS had to reduce expenditures to meet quota levels. The OAS is currently funding its budget deficit from indirect cost recovery generated by the Specific Fund as well as miscellaneous income from other sources. There are no remaining financial reserves available to draw upon to close the projected gap between quotas and expenditure levels during 2011. The OAS is again faced with the necessity of increasing quotas or cutting people and/or activities should revenues be insufficient to cover expenditures. The major objectives of the Regular Fund, financed principally by quotas from member states, are to provide general services required by the General Secretariat, as well as technical supervision and administrative support to the General Assembly, Permanent Council, and other entities including the Inter-American Commission of Human Rights, Inter-American Commission of Women, Inter-American Juridical Committee, Inter-American Children s Institute, Inter-American Commission for Drug Abuse Control, Inter-American Telecommunications Commission, Inter-American Defense Board, Executive Secretariat for Integral Development, and the Pan American Foundation. The Specific Funds are financed by grants or bequests for activities specified by donors, and any other contributions by national or international public or private entities for carrying out activities or programs of the General Secretariat. These funds also include designated funds that have been segregated for a specific purpose and whose use is restricted through designation by the General Assembly, the General Secretariat, or the donor. Voluntary funds consist of the Special Multilateral Fund of the Inter-American Council for Integral Development (FEMCIDI), which finances the multilateral and national cooperation programs, projects, and activities of the Inter- American Council for Integral Development (CIDI). FEMCIDI is financed mainly by voluntary contributions of the member states to support the programs adopted by the Council and approved by the General Assembly. As noted below, the amount of expenditures exceeded the income in 2010. During 2010, the total expenditures and obligations of USD 90.8 million (including prior year appropriations) was USD 7.2 million more than the revenue of USD 83.6 million. The following table shows the Regular Fund financial results from 2006 to 2010. Table 1 Regular Fund Financial Results (in millions of USD) 2010 2009 2008 2007 2006 Account/Line Item: Increases A 83.6 84.6 89.3 82.4 84.0 Decreases 90.8 90.5 91.9 80.5 80.3 Net Increase (Decrease) (7.2) (5.9) (2.7) 1.9 3.7 Fund Balance B 7.2 13.1 15.8 13.9 A Increase mainly consists of quota collections, but also includes such items as interest and rental income. B Although fund balance shows zero due to rounding in millions, this corresponds to USD 46 thousands. 14

GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Section I - Chapter 1 The following table shows Regular Fund quota collections from 2006 to 2010. Table 2 Regular Fund Quota Collections (in millions of USD) 2010 2009 2008 2007 2006 Account/Line Item: Beginning balance of quotas from prior years 0.9 3.1 10.9 12.5 18.7 Current year quotas 78.5 78.6 77.4 77.3 73.7 Quota collections (78.1) (80.8) (85.2) (78.9) (79.9) Quotas in arrears at year end A 1.3 B 0.9 3.1 10.9 12.5 A Balances exclude quotas in arrears from Cuba, which were USD 2.2 million, from many years ago. B Countries in arrears are Grenada, Haiti, Honduras, Jamaica, Nicaragua, Paraguay and Venezuela. The Specific Funds financial results from 2006 to 2010 are included in the following table. Table 3 Specific Funds Financial Results (in millions of USD) 2010 2009 2008 2007 2006 Account/Line Item: Beginning Fund Balance 86.4 80.8 70.1 66.6 63.9 Increases 73.8 77.6 77.7 67.8 69.8 Decreases 78.4 72.0 67.0 64.3 67.1 Net Increase (Decrease) (4.6) 5.6 10.7 3.5 2.7 Ending Fund Balance 81.8 86.4 80.8 70.1 66.6 The Voluntary Funds financial results from 2006 to 2010 are included in the following table. Table 4 Voluntary Funds Financial Results (in millions of USD) 2010 2009 2008 2007 2006 Account/Line Item: Beginning Fund Balance 9.1 11.1 11.6 11.0 8.4 Increases 1.8 4.6 7.1 7.0 6.7 Decreases 4.7 6.7 7.5 6.4 4.1 Net Increase (Decrease) (2.9) (2.1) (0.4) 0.6 2.6 Ending Fund Balance 6.2 9.1 11.1 11.6 11.0 Budgetary Resources The OAS faces a continuing challenge to address a funding shortfall between projected quotas and approved Regular Fund expenditures. Meanwhile cost pressures continue. For example, United Nations wages increased this year by 6 13%. This supports the need to maintain quota increases to meet inflationary cost increases. It also reinforces the need to be vigilant in the costing and prioritizing of mandates, both new and recurring. 15

Section I - Chapter 1 GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 The OAS should continue to identify all possible areas to reduce costs, e.g. limit or reduce conferences, meetings, and translation costs; centralize IT; eliminate duplicative functions; and fully implement AMS (administrative management service) units within each Secretariat. The Board was informed that the Committee on Administrative and Budgetary Affairs (CAAP) has been making strides in establishing a rationalized review process for all mandates. A template has been introduced to capture costs, source of funding, implementation timeline, and expected results. The reality in recent years is that a chronic excess of expenditures over quota revenues has exhausted the financial reserves used to cover any shortfall in the Regular Fund. The Board is concerned that difficult decisions need to be made to find a balance of measures to increase revenues and decrease expenditures in order to avoid a chronic Regular Fund deficit. The collection of quotas is still an issue that has an impact on the OAS overall financial condition. In this time of tight budgetary constraints, it does not seem appropriate to offer discounts to member states for early payment of quotas. 1.1. The Board reaffirms its recommendation that the Permanent Council avoid a structural deficit in the future by ensuring consistency between the mechanism of setting OAS quotas and the mechanism of setting expenditures. 1.2. As advocated in the past, the Board feels strongly that the practice of allowing discounts for early payment of quotas should be abandoned. OAS Administrative Streamlining The Board notes that efforts on administrative and management reforms have stalled. While the Board acknowledges that this was caused by the need for OAS to focus on the immediate funding crisis, we believe it is important to reinvigorate these activities going forward. 1.3. The Board reaffirms its recommendation that the OAS continue implementing the SAF streamlining initiatives. Accounting Standards The combined financial statements for the Regular, Specific, and Voluntary Funds are prepared on the basis of budgetary and financial rules of the OAS. These rules were adopted to meet the budgetary and other requirements of the OAS and, as such, result in accounting principles and a financial statement presentation that vary in certain material respects from generally accepted accounting principles. We believe that it is imperative that the OAS transition to IPSAS standards. This will take time and resources to implement effectively. The OAS will need to carefully consider the most advantageous timing and methodology for the transition. To convert to IPSAS, there will be extensive changes necessary that will require OAS to obtain an understanding of many employment related liabilities, substantial changes to the recording of fixed assets, necessary system changes, internal controls, and consolidating reporting entities. The OAS needs to continue to review business processes, and rewrite internal policies and procedures manuals. The Board understands that the OAS currently plans to implement IPSAS by 2015. 16

GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Section I - Chapter 1 1.4. The Board reaffirms its recommendation that the Permanent Council allocate funding to develop an implementation strategy and adopt IPSAS. Workforce Management Reforms The OAS is a consensus-based organization, responsive to the evolving interests and priorities of its member states. Consequently, the organization must be somewhat fluid in order to engage people to undertake shorter term projects as well as longer term initiatives. However, OAS needs to ensure that people hired under contracting mechanisms are not deemed to be employees based on local laws. Also, OAS needs to ensure that staff hired to do a set of duties are paid the same as other persons hired to perform the same functions. Fundamentally, equal pay for equal work needs to be enforced through hiring practices based on standard job descriptions across the entire workforce, including contractors. The Board was disappointed to learn that no formal approval for implementation has been received to convert and reduce the existing contracting mechanisms. We noted that some progress has been made to implement a position control system that captures the nature of all work performed throughout the organization and documents the positions in both the Regular and Specific Funds. This is essential to fully capture all human resources (HR) costs and liabilities. 1.5. The Board reaffirms its recommendation for the Secretariat and General Assembly to authorize the next phases of implementing the HR management reforms, including converting the existing employment and contracting mechanisms, and applying the position control system to all persons employed or contracted by the OAS. 1.6. The Board reaffirms its recommendation that OAS conduct a thorough workforce planning analysis and determine those positions which should be staffed through employment mechanisms versus contract mechanisms. Real Property Strategy The OAS has neglected the maintenance and preservation of its real property. Currently, the OAS manages real property with an estimated market value in excess of USD 300 million, including buildings of historical significance. However, the continued occupancy and sustainability of its real property is in jeopardy due to this neglect. The Board observed areas of gross underutilization of space in the Casa del Soldado. The OAS should not continue to hold property that is beyond its capability to maintain and utilize. The Board was informed that, after years of not performing adequate maintenance, OAS faces costs in excess of USD 38 million for the repair and updating of its real property. Some of these expenditures are needed to ensure a safe environment for employees and visitors and to maintain the insurability of all OAS buildings. The deficit for maintenance has been well documented over the years. There have been many attempts to outline measures to resolve it. Most measures require immediate up-front expenditures. Clearly a key decision will be how to raise such funds. An obvious one supported by the Board is the sale of a property, particularly the Casa del Soldado. The Board strongly advises that any proceeds from the sale of properties be strategically used to address facilities infrastructure problems and deferred maintenance at other OAS properties, and avoid the temptation to use them for day to day operations. 17

Section I - Chapter 1 GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 1.7. The Board reaffirms its recommendation that OAS conduct a sustainable real property strategy that addresses the current deferred maintenance problems and preserves the assets for future use. National Offices The Board, the external auditor, the Office of Inspector General (OIG), and OAS management have previously identified concerns with the control environment at the National Offices, including weaknesses in such areas as petty cash, cash receipts, purchases, vehicle use, and expenses. The Board is encouraged that the OAS is considering the issue of achieving sustainable internal controls in the National Offices by exploring centralization and regionalization concepts. The Board believes that a concept could be developed relieving National Offices of the burden of dealing with financial and other administrative matters, allowing them greater focus on program and project delivery. 1.8. The Board reaffirms its recommendation that OAS evaluate alternatives for supporting program delivery and improving internal controls in National Offices. Information Technology Infrastructure The Board notes that the OAS has become more dependent on IT for its day-to-day operations. However, various IT initiatives are not being implemented strategically, resulting in significant inefficiencies. In addition, there are IT infrastructure vulnerabilities and single points of failure that apparently are not being addressed. The Board believes that a senior level IT Governance Board be established. It should include senior level representatives of the user communities and technologists working together to establish a true integrated operational IT plan for the OAS. This Governance Board needs to consider topics including security, outsourcing, assessments of new business applications, aging infrastructure, continuity of operations, and disaster recovery. 1.9. The Board recommends that an IT Governance Board should be established and empowered with the authority of the Secretary General. 18

CHAPTER 2 COMMENTS RELATING TO OTHER OAS AND RELATED ENTITIES This Chapter includes a summary of the financial condition of: Leo S. Rowe Pan American Fund (Rowe Pan American) Rowe Memorial Benefit Fund (Rowe Memorial) Medical Benefits Trust Fund (Medical Benefits) Trust for the Americas (The Trust) Inter-American Defense Board Fund (IADB) Retirement and Pension Fund (Pension) s These funds are administered by the GS/OAS or other entities affiliated to the OAS. STATUS OF RECOMMENDATIONS FROM THE BOARD S 2009 REPORT The Board notes that OAS has arranged audits of the various entities within the OAS organizational structure that have material amounts of OAS resources. Independent audits provide information and assurances that controls are in place to protect OAS resources. In the complex organizational structure that constitutes the OAS, management attention needs to be focused on all major entities or parts of entities that manage material amounts of OAS resources. The OAS manages various funding mechanisms for scholarships and student loans. Evaluation of applications is performed independently for each fund. The Board is pleased that a single portal was created for information and application purposes covering all available scholarship funding of great benefit to students. We understand that future enhancements would be beneficial in this area, such as student applications being completed over multiple on-line sessions. Courtesy of OAS Columbus Memorial Library Photograph Collection 19

Section I - Chapter 2 GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 As discussed earlier, the external auditors will issue unqualified ( clean ) opinions, the highest level audit results, on the following 2010 financial statements of OAS entities. Leo S. Rowe Pan American Fund (Rowe Pan American) Rowe Memorial Benefit Fund (Rowe Memorial) Medical Benefits Trust Fund (Medical Benefits) Trust for the Americas (the Trust) Inter-American Defense Board Fund (IADB) Retirement and Pension Fund (Pension) LEO S. ROWE PAN AMERICAN FUND (ROWE PAN AMERICAN) The Rowe Pan American Fund is a trust fund established to provide loans to students from member states, other than residents and citizens of the United States, and to make loans to OAS employees for educational and emergency purposes. Student loans are interest-free and repayments commence after students have completed their courses of study. Loans to employees bear interest rates equivalent to the prevailing prime rate in the United States. Employees repay these loans through payroll deductions. New loans to students increased by about 7.7 percent to USD 720,710 in 2010 compared to USD 669,073 in 2009. The amount of loans collected increased from USD 362,358 in 2009 to USD 420,927 in 2010. New loans to employees for education or emergencies decreased from USD 178,314 in 2009 to USD 176,178 in 2010. Total net assets of the Fund increased 7.8 percent from USD 13.4 million in 2009 to USD 14.4 million in 2010. The assets of the Fund as of December 31, 2010 were comprised of: financial investments (80.2 percent), loans to students (10.5 percent), equity in OAS Treasury fund (7 percent), loans to OAS employees (2 percent), and other receivables (0.3 percent). The following table summarizes the financial results of the Rowe Pan American Fund for 2010 and 2009. Table 1 Rowe Pan American Fund Financial Results (in USD) 2010 2009 Account/Line Item: Increases 1,440,078 2,423,906 Decreases (401,253) (379,202) Change in net assets 1,038,825 2,044,704 Net assets, beginning of year 13,403,016 11,358,312 Net assets, end of year 14,441,841 13,403,016 20

GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Section I - Chapter 2 ROWE MEMORIAL BENEFIT FUND (ROWE MEMORIAL) The assets of the Rowe Memorial Benefit Fund have been accumulated principally from contributions received from Dr. Leo S. Rowe, a former Director General of the Pan American Union. These assets are held in trust to provide certain welfare benefits for OAS employees to be disbursed at the discretion of management. In the past it has been used to fund catastrophic medical costs for employees and family members, and emergency costs for employees affected by natural disaster. The following table summarizes the financial results of the Rowe Memorial Fund for 2010 and 2009: Table 2 Rowe Memorial Benefit Fund Financial Results (in USD) 2010 2009 Account/Line Item: Dividends and Income 5,781 4,941 Subsidies (20,590) (11,592) Award and other expenses (590) Change in net assets (14,809) (7,241) Net assets, beginning of year 210,115 217,356 Net assets, end of year 195,306 210,115 MEDICAL BENEFITS TRUST FUND (MEDICAL BENEFITS) The Medical Benefits Trust Fund provides medical benefits to OAS staff members. Fund activity is limited to paying covered employees health claims. Claim adjudication is handled by Carefirst Blue Cross Blue Shield. As of December 31, 2010, total net assets of the Trust were USD 28.4 million compared to USD 23.2 million in 2009 (22.4 percent increase). The following table summarizes the financial results of the Medical Trust Fund for 2010 and 2009: Table 3 Medical Benefits Trust Fund Financial Results (in USD) i 2010 2009 Account/Line Item: Increases 15,897,691 16,479,622 Decreases (10,697,900) (11,302,232) Change in net assets 5,199,791 5,177,390 Net assets, beginning of year 23,163,436 17,986,046 Net assets, end of year 28,363,227 23,163,436 21

Section I - Chapter 2 GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 TRUST FOR THE AMERICAS (THE TRUST) The Trust for the Americas is a not-for-profit organization that works to expand hemispheric cooperation and enhance economic development. Resources have been provided by contributions from corporate donors and Federal grants. The OAS supports the Trust with the provision of financial, material, and staff support. As of December 31, 2010, net assets of the Trust were USD 2.1 million compared to USD 1.9 million in 2009 (10.5 percent increase). The following table summarizes the financial results of the Trust for 2010 and 2009: Table 4 The Trust Financial Results (in USD) 2010 2009 Account/Line Item: Increases 7,584,697 5,022,030 Decreases (7,375,079) (5,077,200) Change in unrestricted net assets 209,618 (55,170) Temporarily restricted contributions 5,609 527,963 Change in net assets 215,227 472,793 Net assets, beginning of year 1,873,583 1,400,790 Net assets, end of year 2,088,810 1,873,583 INTER-AMERICAN DEFENSE BOARD (IADB) The IADB was established in 1942 and is comprised of military officers representing the highest echelons of their nation s defense establishments. In 2006, by OAS resolution, the IADB became an entity of the OAS. The Board s expenses were primarily for four functions: the Council of Delegates, the Sub Secretariat for Advisory Services, the Inter-American Defense College, and administrative support. IADB s assets decreased 10.9 percent from USD 564 thousand in 2009 to USD 502 thousand in 2010. The total amount of revenue increased 4.2 percent from USD 5.9 million in 2009 to USD 6.2 million in 2010. In addition, the total amount of expenses increased 8.4 percent from USD 5.8 million in 2009 to USD 6.3 million in 2010. 22

GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Section I - Chapter 2 The following table summarizes the financial results of the IADB for 2010 and 2009: Table 5 Inter-American Defense Board Financial Results (in USD) 2010 2009 Account/Line Item: Increases 6,232,557 5,981,589 Decreases (6,294,298) (5,803,113) Change in net assets (61,742) 178,476 Net assets, beginning of year 564,569 386,093 Net assets, end of year 502,828 564,569 RETIREMENT AND PENSION FUND (PENSION) This fund includes both the Retirement and Pension Fund and the Provident Plan. The Pension Plan is a contributory retirement plan maintained for the benefit of most staff members of the OAS. The Provident Plan is a contributory savings plan established for the benefit of employees under short term contracts. The amount of net assets available for benefits increased from USD 233.4 million in 2009 to USD 237.6 million in 2010. Fortunately, the fund experienced positive returns in 2009 and 2010. The following table summarizes the financial results of the Retirement and Pension Fund for 2010 and 2009: Table 6 Pension Fund Financial Results (in USD) 2010 2009 Account/Line Item: Increases 40,466,183 54,870,339 Decreases (36,295,873) (30,591,494) Change in net assets 4,170,310 24,278,845 Net assets, beginning of year 233,436,736 209,158,891 Net assets, end of year 237,607,046 233,437,736 23

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CHAPTER 3 COMMENTS RELATING TO THE OFFICE OF THE INSPECTOR GENERAL This Chapter discusses issues related to the OIG. The status and role of OIG within OAS is important to the Board since OIG is an essential continuing safeguard to assess and maintain the internal control environment. Under Executive Order 95-05, The Internal Audit Function of the General Secretariat and the Office of the Inspector General, OIG is charged with the responsibility of assisting the Secretary General and the governing bodies to monitor various levels of management with respect to the General Secretariat s and OAS programs and resources, and adherence to the legal system governing them. This chapter includes: OIG Audit Coverage Professional Standards Review Cooperation and Coordination 2011 OIG Work Plan OIG AUDIT COVERAGE Courtesy of OAS Columbus Memorial Library Photograph Collection The position of the Inspector General has been vacant for several months after the retirement in mid- 2010 of the long-serving incumbent. The Board notes that this is an important position that contributes to necessary and effective oversight of the functioning of the OAS, and supports the efforts underway to staff this position. In the meantime, the Acting Inspector General and staff have been conducting the work of the OIG in a satisfactory manner. PROFESSIONAL STANDARDS REVIEW The General Secretariat s Executive Order 95-05 makes reference to the need for the Office of the Secretary General to provide for a comprehensive evaluation or peer review of the internal audit function conducted every five years by independent auditors from outside OAS. The independent auditors should report on compliance in accordance with the Standards for the Professional Practice of Internal Auditing. This might be accomplished 25

Section I - Chapter 3 GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 by arranging a peer review exchange of services with other governmental agencies, or through arranging for OIGs from NGOs to conduct the review at minimum cost to the OAS. Currently, no evaluation has been performed or scheduled. 3.1. The Board reaffirms its recommendation of the need for a peer review evaluation to be performed of the Office of Inspector General. COOPERATION AND COORDINATION The Inspector General continues to regularly consult with management on issues arising from audits, reviews draft policies and procedures, and attends various OAS meetings as needed. However, there was a significant issue regarding cooperation as indicated by a lack of or untimely management responses to the OIG audits and investigation reports. The Executive Order 95-05 does not require a response within 30 days, nor does it allow the OIG to classify its audit and investigation reports as final if no response is received. The Board was pleased to note beneficial cooperation between the OIG and the external auditors. The Board encourages all parties to maintain this open and constructive working relationship. Courtesy of OAS Columbus Memorial Library Photograph Collection 26

GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Section I - Chapter 3 2011 OIG WORK PLAN The OIG presented the Board with its proposed 2011 audit work plan. Annually the OIG performs a risk assessment to identify areas to audit. During the planning process, the OIG considers recommendations made by the Board of External Auditors; resolutions from member states; referrals from other sources; and areas internally identified as high risk. The Board encourages the OIG to continue to focus on areas with a high degree of risk and/or those with the highest potential for increasing efficiency, economy, and effectiveness within the OAS. The OIG periodically gets special requests for audits or investigations that must be performed. Sometimes, due to limited staffing, other ongoing work will be delayed to address these special requests. The Board notes that projects in the OIG 2009 audit work plan were not completed until mid-2010. This delayed the conduct of projects in the OIG 2010 work plan, which was not completed at the time of the Board s annual meeting in April 2011. 3.2. The Board recommends the Secretary General amend Executive Order 95-05 to require an OAS management response within 30 days upon receiving draft audit and investigation reports from the OIG, and requires final release of the reports even in the event of non-response. 3.3. The Board recommends that the Inspector General report to the Permanent Council annually by March 31 on the status of completion of the planned audits for the previous year, the status of management actions regarding outstanding audit recommendations, and the proposed plan of audits for the new fiscal year. 27

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SECTION II Courtesy of OAS Columbus Memorial Library Photograph Collection FINANCIAL STATEMENTS OF THE ORGANIZATION OF AMERICAN STATES (OAS) 31 Management Discussion and Analysis (MD&A) 47 Responsibility for Financial Statements 51 Chapter 4 - Regular, FEMCIDI, Specific and Service Funds of the OAS 107 Chapter 5 - Leo S. Rowe Pan American Fund 117 Chapter 6 - Rowe Memorial Benefit Fund 125 Chapter 7 - OAS Medical Benefits Trust Fund 29

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GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 MANAGEMENT DISCUSSION AND ANALYSIS (MD&A) This section presents an overview of the financial results of the General Secretariat and a status report on other management activities. Where possible, information is presented on a comparative basis. EXECUTION OF THE 2010 REGULAR FUND PROGRAM-BUDGET Approved Levels For 2010, the General Secretariat was authorized to execute up to USD 90.1 million for Regular Fund activities, through resolution AG/RES. 1 (XXXVIII-E/09), representing the same level approved for the previous year. The funding for the year amounted to approximately USD 90.8 million (see Table 1). The primary source of financing corresponds to quota assessments established to member states. Quota Payments OAS General Standards require member states to pay their quota assessment in full on January 1st of the corresponding fiscal year; otherwise, they are required to negotiate a payment plan with the GS/OAS. Member states that pay their quota assessment by April 30 of the corresponding year are entitled to the following discounts: 3% of the amount paid by January 31, and 2% of the amount paid between February and April 30. In 2010, USD 540 thousand was credited in discounts to member states for prompt payment, applied to their 2011 assessment. At the beginning of 2010, the GS/OAS had USD 79.4 million in quota receivable, USD 78.5 million from current quota and USD 0.9 million for quotas in arrears. By Figure 1 year-end, the GS/OAS received USD 78.1 million Quota Receivable versus Quota Payments (Current and Arrears) towards this receivable. From this amount, USD 0.7 As of December 31 (in millions of USD) million were applied to quotas in arrears. The timing of quota payments from member states has improved over the past five years. Quotas receivable (current and prior-years) decreased from USD 81.8 million in 2009 to USD 79.4 million in 2010 and quota payments also decreased from USD 80.8 million to USD 78.1 million (Figure 1). However, the USD 1.0 million gap in 2009 between quota receivable and quotas payments slightly increased to USD 1.3 million in 2010. Table 1 2010 Budget Summary (in thousands of USD) Modified Execution Appropriations Personnel 56,967.5 56,967.5 Non personnel 33,157.5 33,157.5 90,125.0 90,125.0 Sources of Financing Modified Actual Quota Assessment 78,513.6 77,679.3 Administrative and Technical Support 3,282.6 a 3,148.6 Other Income 1,579.4 b 2,814.2 Reserve Sub fund 6,749.4 7,133.0 90,125.0 90,775.1 a) ICR collection from Specific Funds (2,500) and FEMCIDI (782.6). b) Includes income from rental space, interest and miscellaneous revenue. 94.9 76.3 92.3 79.9 78.9 89.8 88.4 85.2 81.8 80.8 2005 2006 2007 2008 2009 2010 Quota receivables Quota payments 79.4 78.1 31

Section II - MD&A GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Figure 2 Quota Assessment versus Quota Payments (Current) As of December 31 (in millions of USD) 73.7 64.0 Figure 3 Quota in Arrears versus Quota Payments (Arrears) As of December 31 (in millions of USD) 21.2 12.3 73.7 65.6 18.6 14.3 8.5 12.5 2.8 0.9 0.7 2005 2006 2007 2008 2009 2010 Quota in arrears 70.4 77.3 77.5 78.6 78.5 74.7 78.0 77.4 2005 2006 2007 2008 2009 2010 Quota assessment 10.9 10.5 Quota payments Prior years quota payments 3.2 Quota assessment to member states decreased by USD 0.1 million to USD 78.5 million in 2010 from the prior year (Figure 2), which was a temporary measure reversed in 2011. Current quota payments of USD 77.4 million decreased in 2010 when compared to USD 78 million in 2009. However, quota payments received in 2010 are still among the highest levels in the last six years. Significant improvements have occurred with quotas in arrears (Figure 3). The balance continues to decrease from USD 3.2 million in 2009 to USD 0.9 million in 2010. The dollar amount of quotas in arrears continues its declining trend since 2004 and has reached its lowest level. For 2011, the opening balance of outstanding quotas was USD 1.3 million of which USD 0.2 million correspond to arrears from member states that have an approved long term payment plan. At year-end, there were twenty eight current member states, one member state considered current and five member states not current with respect to payments of their assessment to the Regular Fund. These categories are established through resolution AG/RES. 1757 (XXX-O/00), and as amended by AG/RES. 2157 (XXXV- O/05). 32

GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Section II - MD&A Figure 4 Budgetary Execution by Object of Expenditure As of December 31, 2010 (in millions of USD) Modified Appropriation 90.12 100.00% Budgetary Execution 90.12 100.00% Unobligated Appropriation 0.00% 90.12 100.00% 90 70 50 90.12 90.12 33.15 36.78% 33.15 36.78% Budgetary Execution At the end of the fiscal year, the full approved budget had been executed, therefore there were no unobligated funds at the end of the year. Specifically, Modified Appropriation for Personnel cost amounted to USD 56.97 million. Modified Appropriation for Nonpersonnel cost amounted to USD 33.15 million. Figure 4 presents the distribution of budgetary execution by personnel and non-personnel object of expenditures. 30 56.97 56.97 63.22% 63.22% 10 At December 31, 2010, as mentioned above, there were no unobligated appropriations; however, there 10 Modified Appropriation Budgetary Execution were USD 2.0 million in outstanding obligations. These Personnel Non Personnel outstanding commitments are mainly attributed to the Department of Human Development, Education, and Culture (USD 686.5 thousand); Program 10, Basic Infrastructure and Common Costs (USD 559.5 thousand); the Pension for Retired Executives and Health and Life Insurance for Retired Employees (USD 246.7 thousand); and the Department of Conferences and Meetings Management (USD 134.2 thousand). Figure 5 provides detailed budgetary execution by Program, segregated by expenditures and obligations. Figure 5 Budgetary Execution by Program As of December 31, 2010 (in percentages and millions of USD) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 4.5 17.1 11.4 2.9 4.2 4.4 14.6 5.1 11.2 14.7 1% 1% 1% 1% 2% 1% 5% 1% 1% 4% 99% 99% 99% 99% 98% 99% 95% 99% 99% 96% Prg 1 Prg 2 Prg 3 Prg 4 Prg 5 Prg 6 Prg 7 Prg 8 Prg 9 Prg 10 Expenditures Obligations Legend: Expenditures Obligations Program 1 Secretary General 4.4 0.1 Program 2 Assistant Secretary General 16.9 0.2 Program 3 Autonomous and/or Decentralized Entities 11.3 0.1 Program 4 Secretariat for Legal Affairs 2.9 0.0 * Program 5 Secretariat for Multidimensional Security 4.1 0.1 Program 6 Secretariat for Political Affairs 4.3 0.0 * Program 7 Executive Secretariat for Integral Development 13.9 0.7 Program 8 Secretariat for External Relations 5.1 0.0 * Program 9 Secretariat for Administration and Finance 11.1 0.1 Program 10 Basic Infrastructure and Common costs 14.1 0.6 88.1 2.0 * Although obligations show zero due to rounding in millions, this corresponds to obligations of USD 25 thousand in program 4, USD 33 thousand in program 6, and USD 37 thousand in program 8. 2011 Budget Impact on 2010 Budget Execution Based on member states decisions at the General Assembly in June 2010, which approved a Regular Fund budget ceiling of USD 85.3 million for 2011 (down from USD 90.1 USD), the GS/OAS immediately began an effort to address the significant decrease to the operating 2010 budget of the Organization. The first step was to decrease 33

Section II - MD&A GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 the number of Regular Fund-financed positions from 534 to 489 by the end of 2010. The intent of the Secretary General was to have all separations be either voluntary or in adherence to the retirement policy, minimizing the human and financial impact to the Organization and its staff. In order to meet the 489 mark, in May 2010 the General Secretariat made available to its staff a separation package. Acceptance of this package was voluntary and aimed at facilitating the decision-making of those individuals who were close to retirement age, as well as those staff members who were interested in considering early separation. In addition to the expiration of contracts and planned retirements of some 40 staff members funded by the Regular Fund, this exercise resulted in the voluntary separation from service of an additional 22 staff members. The approved 2010 Regular Fund budget for terminations only contemplated USD 1.2 million. However, the real cost of separation amounted to USD 3.7 million, leaving a shortfall in budgetary authority of USD 2.5 million. To close this gap, the General Secretariat curtailed planned obligations in the approved 2010 Regular Fund Budget wherever possible. The realized reductions were transferred from the various areas of the Organization (Programs 1 to 9 of the Budget) into Program 10 ( Basic Infrastructure and Common Costs ), where the terminations account resides, to cover these expenses. Regular Fund Financial Position As of December 31, 2010, the Reserve Subfund (including a restricted balance) ended with a USD 46 thousand surplus balance (Figure 6). During the year, the Regular Fund recorded increases of USD 83.6 million, which represents a decline of 1.1% when compared to 2009. The level of decreases slightly went up by 0.3%, compared to 2009, from USD 90.5 to USD 90.8 million. For three consecutive years Net Change during the period has been negative given that financing in those years included the use of a portion of the Reserve Subfund. The net change deficit in operating activities of USD 7.1 million, during 2010, was mainly financed with USD 6.7 million from the Reserve Subfund approved by resolution AG/RES. 1 (XXXVIII-E/09). Figure 6 Income, Decreases, Net Change and Fund Balance From January 1 to December 31 (in millions of USD) 84.0 82.4 89.3 84.6 83.6 80.3 80.4 92.0 90.5 90.8 2006 2007 2008 2009 2010 3.7 2.0 13.8 15.8 13.1 7.2 0.05 (2.7) (5.9) (7.1) a Increases Decreases Net Change Fund Balance a) Includes fellowship execution from prior years appropriation 34

GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Section II - MD&A FEMCIDI New Developments The OAS General Standards and the statutes of the Inter- American Agency for Cooperation and Development, defines that the purpose of FEMCIDI is to contribute to the financing of national and multilateral cooperation programs, projects, and activities carried out under the Strategic Plan for Partnership for Development. FEMCIDI is financed through voluntary contributions from the member states and other assets; the program-budget of the Organization is approved each year by the General Assembly. A consultant was hired to train the FEMCIDI team in project design and Results-based management and to help the team review projects. Onsite training and support was provided by FEMCIDI to the project presenters in Grenada, Ecuador, Panama, Antigua & Barbuda, Belize, El Salvador, and Guatemala. Table 2 2010 Project Proposals by Sector Number of Sectors Projects Education 19 Social Development 12 Sustainable development 18 Science & Technology 10 Trade 3 Culture 3 Democracy 5 Tourism 8 Integral Development 0 Total 78 Table 3 Member States Pledges Received to FEMCIDI From January 1 to December 31, 2010 (in USD) Member state The Executive Secretariat has modified the formats for project presentation to follow the Results-based management model and will provide support to the institutions in preparing their projects according to these standards. Support will include revision of the projects by external project design, monitoring and evaluation experts, as well as travel by SEDI staff to some of the member states. Pledges and Payments Member states have been diligent in meeting the new July 31st deadline for voluntary pledges. Major pledges have been from Brazil, Mexico, Chile and Colombia. At year-end, twenty six member states have made pledges to the Fund totaling USD 1,079,857. As compared to prior year pledges (USD 4,307,445), there has been an overall decrease of 75% in voluntary pledges. However, during the first quarter of 2011 a pledge and a payment of USD 1,200,000 were received from the United States. Payments received during 2010 of USD 1,416,920 (Table 3) were allocated to the nine sectoral accounts for programming. ANTIGUA AND BARBUDA ARGENTINA BAHAMAS, COMMONWEALTH OF THE BARBADOS BELIZE BOLIVIA BRAZIL CHILE COLOMBIA COSTA RICA DOMINICA, COMMONWEALTH OF DOMINICAN REPUBLIC ECUADOR EL SALVADOR GRENADA GUYANA JAMAICA MEXICO NICARAGUA PANAMA PARAGUAY PERU SAINT KITTS AND NEVIS SAINT VINCENT AND THE GRENADINES SURINAME TRINIDAD AND TOBAGO URUGUAY VENEZUELA 6,988 40,230 15,000 16,400 7,800 29,100 501,672 110,000 104,600 30,000 5,100 35,000 16,678 32,100 6,000 5,100 10,000 150,000 18,000 39,600 20,000 54,186 5,100 5,083 10,000 31,200 50,000 61,983 1,416,920 35

Section II - MD&A GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 FEMCIDI Execution FEMCIDI 2009 programming cycle was approved and the implementation of project activities commenced on May 1, 2010. The Fund is moving in the direction of accomplishing one of its goals of improving the execution of projects. The Fund s 2009 programming cycle officially ends on June 30, 2011. The execution of FEMCIDI projects has dominated in the sectors of Education, Science and Technology, Sustainable Development, and Social Development over the past five years as shown in Figure 7. This trend indicates that these are the sectors where member states contribute the most, as they have been deemed crucial to eliminating poverty. Figure 7 FEMCIDI Execution by Sector From January 1 to December 31 (in thousands USD) 2,820.5 2,876.5 2,563.8 1,759.0 1,833.5 1,456.1 1,088.1 921.0 837.3 547.4 988.0 639.9 514.5 1,166.0 982.2 789.8 1,262.5 1,059.6 960.8 838.4 1,020.2 760.0 648.5 447.1 270.4 2006 2007 2008 2009 2010 Education Sustainable Development Science / Technology Social Development Others SPECIFIC FUNDS As defined by the General Standards that Govern the Operations of the General Secretariat, Specific Funds are made up of special contributions, including those received without purposes and limitations specified by the donor, from member states and permanent observer states of the Organization and from other member states of the United Nations, as well as from individuals or public or private institutions, whether national or international for the execution and or strengthening of development cooperation activities or programs of the General Secretariat and other organs and entities of the Organization in accordance with agreements and contracts entered into by the General Secretariat in exercise of the powers conferred under the Charter. 36

GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Section II - MD&A Contributions to Specific Funds Cash contributions to Specific Funds amounted to USD 68.6 1 million in 2010 (Figure 8) compared to a net of USD 70.1 2 million in 2009, decreasing by USD 1.5 million, or 2.1%. Figure 8 Regular Fund Budget versus Specific Fund Contributions From January 1 to December 31 (in millions of USD) 81.5 84.4 87.5 90.1 90.1 59.7 60.8 68.1 (a) 70.1 (b) 68.6 2006 2007 2008 2009 2010 Regular Fund Program Budget Specific Fund Contributions (a) Excludes USD 5.0M for the Mexican Fund for Cooperation with Latin America & the Caribbean. (b) Excludes USD 3.0M programmed to FEMCIDI. The three major contributors during 2010 (Table 4) continued to be Canada with USD 22.3 million, or 32.5% of total contributions, followed by the United States with USD 20.0 million, or 29.1%, and Spain with USD 5.2 million, or 7.6%. From the USD 68.6 contributions in 2010, 66.7% were received from member states, 23.0% from permanent observers and 10.3% from other donors. When compared to 2009, member states increased their contributions by 4.9%, mainly Canada and the United States. In contrast, contributions from Permanent Observers decreased by 19.6% compared to 2009, attributable mainly to a 54.7% reduction in contributions from Spain. Despite this substantial decrease, and with the exception of Denmark, Greece and Italy, an important recovery was observed on several other European donors when compared to 2009. Nonetheless, this recovery was not enough to offset the reduction in contributions from Spain. Contributions from other institutions and donors (i.e, non-member states and non-permanent observers) increased by 4.0% primarily as a result of a significant increase in ongoing contributions from the International Organization for Migration oriented to the Mission to Support the Peace Process in Colombia. This helped to offset some reductions in United Nations and World Bank contributions by 27.4% and 17.8%, respectively, driven mainly by projects ending in the Secretariat for Political Affairs and planned disbursements for the Department of Sustainable Development. 1 In February 2011, instructions were received from the United States to program USD 1.2 million to FEMCIDI. This programming is reflected in 2011 financial statements. 2 Does not include USD 3 million from the United States subsequently programmed and recorded as a contribution to FEMCIDI. 37

Section II - MD&A GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Table 4 Top 15 Donors to Specific Funds From January 1 to December 31, 2010 (in thousands of USD) Member States Observers Others TOTAL % Canada 22,279.2 22,279.2 32.5% United States 19,957.3 19,957.3 29.1% Spain 5,187.8 5,187.8 7.6% The Netherlands 2,715.1 2,715.1 4.0% Sweden 1,856.7 1,856.7 2.7% International Organization for Migration (IOM) 1,380.0 1,380.0 2.0% European Union 1,363.7 1,363.7 2.0% United Nations 1,348.0 1,348.0 2.0% Norway 1,222.7 1,222.7 1.8% National Commission on Space Activities 993.9 993.9 1.4% Intl. Bank Reconstruction and Development 979.9 979.9 1.4% Mexico 904.7 904.7 1.3% Brazil 844.3 844.3 1.2% Germany 709.0 709.0 1.0% Peru 648.4 648.4 0.9% Multiple Funding Sources 1,138.8 2,727.0 2,378.6 6,244.4 9.1% TOTAL 45,772.7 15,782.0 7,080.4 68,635.1 100.0% 2010 Programmed Specific Funds A total of USD 74.6 million in specific fund contributions were programmed during the fiscal year (Figure 9). This amount includes the programming during 2010 of unprogrammed account balances available at the end of 2009. When compared to 2009, there was an increase of 13.9% in program funds during 2010. Donors increased programming of funds Figure 9 Programmed Specific Funds (Contributions and Transfers) by Program mainly in the following From January 1 to December 31, 2010 (in thousands of USD) areas: Program 2 Office of the Assistant Secretary General 1,469 2.0% Program 8 Secretariat for External Relations 1,814 2.4% Program 4 Secretariat for Legal Affairs 4,531 6.1% Program 3 Autonomous and/or Decentralized Entities 5,256 7.0% Program 9 Secretariat for Administration and Finance 1,253 1.7% Program 7 Secretariat for Integral Development 15,582 20.9% Program 1 Office of the Secretary General 913 1.2% Projects to Strengthen Democracy and Governance in Haiti 317 0.4% Other 203 0.3% Program 5 Secretariat for Multidimensional Security 18,643 25.0% * This figure does not include amounts related to: unprogrammed funds for USD 6.7M and USD 1.3M transferred out to the ICR account corresponding to interest earned. Program 10 Basic Infrastructure and Common Costs 272 0.4% Program 6 Secretariat for Political Affairs 24,331 32.6% The Secretariat of the Inter-American Committee Against Terrorism (52D) mainly in projects Tourism Security and Port Security. The Department of Electoral Cooperation and Observation (62B) mainly in Electoral Observation Missions. The Office of the Executive Secretary for Integral Development (72A) mainly in projects related to renewable and sustainable energy. 38

GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Section II - MD&A Audits of Specific Fund Projects The General Secretariat is required to conduct external financial audits of Specific Fund projects when stipulated in donor agreements. During 2010, five financial audits and two agreed-upon procedures engagements were coordinated for the following programs. Some may still be underway in 2011. Program 3 - Autonomous and/or Decentralized Entities Strengthening the Right to Freedom of Expression in the Americas for the period October 1, 2009 to July 31, 2010 (European Community). A report from the independent accountants on expenditure verification was issued and finalized. Protection of the Rights of Children in Latin America: Violence Prevention for the period July 5, 2006 to December 31, 2009 (Inter-American Development Bank). The auditor s opinion was unqualified (clean opinion). Program 5 The Secretariat for Multidimensional Security Support for the Creation and Development of Financial Intelligence Units in South America for the period August 13, 2002 to December 31, 2005 (Inter-American Development Bank). The auditor s opinion was unqualified (clean opinion). Program 6 - The Secretariat for Political Affairs Modernization and Legislative Agenda Congress 2005-2007 for the period May 26, 2005 to December 31, 2009 (Sweden). As of December 31, 2010, Terms of Reference have been presented to the donor, response pending. Support on the Program on Electoral Reforms in Honduras for the period December 1, 2003 to February 29, 2008 (Sweden). As of December 31, a preliminary report was issued by the auditors and is currently under review by the donor and the GS/OAS. Support on the Program on Electoral Reforms in Honduras for the period January 30, 2008 to January 23, 2009 (Sweden). The auditor s opinion was unqualified (clean opinion). Program 7 The Secretariat for Integral Development Increasing the Sustainability of the Energy Sector in the Caribbean through Improved Governance and Management for the period November 1, 2008 to October 31, 2009 (European Community). A report on factual findings for an expenditure verification of a European Commission financed grant contract for external actions was issued and finalized. Indirect Cost Recovery (ICR) from Specific Funds On May 23, 2007, the Permanent Council approved Resolution CP/RES. 919 (1597/07), which amended Articles 78 and 80 of the General Standards to establish a clear policy for the General Secretariat regarding the recovery of direct and indirect costs for projects funded by Specific Funds and Trust Funds. On May 29, 2007, the Secretary General, through Executive Order 07-01 (later revised on December 20, 2007) issued organizational definitions of direct and indirect costs, and required indirect cost recovery percentages for grant agreements with member states (11%) and other contributors (12%). CAAP members felt the need to differentiate ICR from contributions received from member states as compared to other contributors, thus approved different ICR rates for each of these groups. 39

Section II - MD&A GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 So far, the ICR policy has had a positive impact on the organization, as it has: Allowed the GS/OAS to earmark funds for core infrastructure costs addressing incremental contributions to Specific Funds, in addition to those funds already provided by the Regular Fund. Allowed the GS/OAS to continue identifying the actual amount of indirect costs required by the areas to be operational. Allowed the GS/OAS to confirm that decentralized administrative units incur indirect costs in the performance of required administrative and financial functions. Provided accurate information through monitoring, reporting and analyzing incurred expenses. Established a new standard. There is now a uniform organizational indirect cost recovery rate provided and applied to all contributions to Specific Funds. Still, significant efforts are required to make the ICR policy sustainable in the long run. The continued decrease in Regular Fund resources has shifted additional pressures to the ICR account. Thus, further efficiencies have been difficult to attain as technical areas require additional resources to comply with their mandates. This situation becomes more complicated considering stagnant Specific Fund contributions and thus the same level of ICR inflows. Therefore, cost containment is a current priority for the GS/OAS. Review of the ICR Policy Per Resolution CP/RES. 919 (1597/07) of the Permanent Council, approved by Resolution AG/RES. 2302 (XXXVII- O/07) of the General Assembly, and in compliance with that Resolution, following the first Comprehensive Review from Inception (May 29, 2007) to December 31, 2008 presented in document CP/CAAP-3023/09, the GS/OAS presented a second review on the ICR policy from January 1, 2009 to December 31, 2009, including subsequent events for most of 2010. SERVICE FUNDS The OAS manages various activities through Service Accounts, allowing it to handle certain administrative functions not directly related to donor agreements or Trust Funds. The Service Accounts include the Building Management and Maintenance, Tax Equalization, Parking Services and Indirect Cost Recovery accounts, among others. Building Management and Maintenance This account is established for the purpose of administering costs related to the mortgage, management and maintenance of OAS buildings. The main source of income for this account comes from the 2010 Regular Fund budget (approximately USD 5.1 million) and supplemented with rental income for office space in the F Street Building (GSB) charged to outside organizations (approximately USD 1.5 million). Parking Services The purpose of this account is to administer garage maintenance and partially subsidize transportation costs for eligible employees. Parking fees deducted from employees payroll finance this account which at year-end had 40

GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Section II - MD&A an ending balance of USD 288 thousand. In 2010, the account contributed approximately USD 100 thousand for strucutral repairs in the C Street Parking Lot. Tax Equalization This account is established to reimburse eligible employees of the General Secretariat who are required to pay income taxes on their OAS income. These reimbursements are sponsored by their corresponding member state imposing said requirement. When the tax equalization account ends with a deficit during the year, a temporary interfund receivable account is recorded to cover this deficit from the Regular Fund. At year-end, the Tax Equalization account had an ending balance of USD 94.4 thousand. OAS FINANCIAL MANAGEMENT FRAMEWORK (OASFMF) The OAS Financial Management Framework (OASFMF) establishes the standard for sound financial management and control across the Organization. It is a mandatory reference point for anyone in the Organization with the responsibility to manage and execute Organization s funds. Its main purpose is to establish a robust financial management governance framework that clearly: Defines the policies that govern the use of the Organization s financial resources; outlines the Organization s core values and principles with respect to the management of these resources; Establishes delegated authorities and financial management accountabilities for all resource managers; Defines roles and responsibilities; and standardizes and optimizes key business processes and systems in order to safeguard and ensure efficient and effective use of the Organization s resources. The OASFMF is a Work-in-progress and its being updated over time as we continue to transform, modernize and standardize our business policies and processes. SAF TRANSFORMATION AND MODERNIZATION PROJECT (STAMP) In 2007, the Secretariat of Administration and Finance embarked in a project designed to bring OAS business processes in line with standards of best practice currently in use at other international public sector entities. The project is supported by a grant from the Canadian International Development Agency. International Public Sector Accounting Standards The STAMP team made some notable progress in building the knowledge base and capacity necessary for a successful transition to IPSAS (now scheduled for 2015). Strategic relationships allowed the Organization to contribute to the body of knowledge on IPSAS. OAS was invited to present at the Conference for International Certified Government Financial Managers (ICGFM) on the OAS experience with IPSAS. Valuable insight was also gained from exchanges with PAHO and OECD on the lessons learned from their projects. After receiving the UN IPSAS training materials, five courses were delivered on-site to over 20 key financial and administrative staff by the experts that developed the materials for the UN. Over 80% of participants successfully 41

Section II - MD&A GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 passed the end-of-course knowledge assessment designed to measure working knowledge of the application of the standards. Communication efforts have also been key in advancing the project s activities. The Finance Portal was developed as the Organization s repository of information on the implementation of IPSAS. This is intended to serve as a useful tool to build awareness within the Organization on the need to move to accrual accounting. A Communication Plan is currently under design and is expected to be finalized during 2011. Contingent upon project funding, work on IPSAS implementation is expected to continue during 2011. A presentation to CAAP to update the Member States on the progress achieved and establish a new target implementation date of January 1, 2015 was delivered during the first quarter of 2011. Using the experience of other organizations, the recommendations from the External Auditors, and taking into account the GS/OAS s unique business environment, this new plan calls for a phased implementation of the standards with a dedicated project team over the next four years. Position Control Substantive work has been completed in connection with the Position Control System (PCS) and the Standardized Job Descriptions and Titles (SJDs and SJTs respectively). These are essential for the Organization to have better control over: (i) accurate job classification, (ii) clear job title policies and, (iii) updated organization structure in OASES (the GS/OAS business tool). The pilot initiative to test the SJDs and SJTs within three areas of the GS/OAS was completed and the results analyzed to incorporate future improvements. A system is currently under development to serve as a database for job descriptions that will be linked to the PCS. To this end, DHR is working with DFAMS and OPS for the implementation of the SJDs and SJTs developed for their areas. Additional meetings with the remaining areas of the GS/OAS are programmed for this year. The DHR has continued its work on the configuration of the Position Control System positions were created, position code segments assigned, position hierarchy completed and control transactions tested in the HR Test Instance. In addition, staff members from the DHR, DFAMS, OPS and DOITS attended a training program with Oracle University to learn how to create and administer work structures and position budgeting. Code of Ethics To ensure that the personnel s work reflects the values and ethics of the Organization, the DRH has prepared a draft Code of Ethics for consideration to be issued as an Executive Order. This draft is currently under legal review. Expense Reporting and Travel During 2010, the implementation of Concur as an online expense management and reporting tool continued, with a primary focus on the design of the solution for the OAS. In late 2010, the first iteration of the test site was deployed; review and testing is underway. Fixed Assets New administrative procedures and proactive measures were established to ensure that new assets are report- 42

GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Section II - MD&A offices and projects away from headquarters during the accounting period when they were purchased. As a the result, there was more timely recording of new assets and a marked decline was observed in assets purchased in prior years but being initially recorded in the current year. Efforts towards encouraging Country Offices to contact technical areas at Headquarters and jointly start procedures to donate the assets left in working condition after projects have been completed within the guidelines established in the donor agreement have been continued, resulting in more active communication between responsible areas at headquarters and project managers in the field. Ownership of fixed assets a significant challenge in the past is now more clearly defined Courtesy of OAS Columbus Memorial Library Photograph Collection after migrating the data from the legacy system to OASES Fixed Asset Module (OFA). In addition, a new application was developed by DOITS to make physical inventory verification, count and update a more effective and efficient exercise. Several tests and analyses were performed in order to ensure accurate calculations and reporting of depreciation. Additionally, the Fixed Assets Policy and Operations Manual has been updated to include IPSAS-compliant policies and is currently under review. 43

Section II - MD&A GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 FELLOWSHIPS In 2010 the OAS General Secretariat s Department of Human Development, Education and Culture (DHDEC) completed successfully the process of awarding new academic scholarships corresponding to the 2011/2012 cycle. A total of 120 new scholarships were awarded an estimated cost of USD 4,073 thousand. Additionally, 135 contracts were signed by scholarship recipients from the prior 2010/2011 cycle. The distribution of costs by type of scholarship granted was 17% for self-placed, and 83% for OAS-placed, well above the 2/3 minimum for OAS-placed scholarships set by the member states. Financing of the cost of the program is normally spread out over three fiscal years, which matches the standard period to complete two academic years covered by the OAS scholarship program. Students selected during the 2011/2012 cycle are scheduled to start their programs between January 2011 and March 2012. The selection took place under the guidelines established by the Scholarship Manual of Procedures approved by member states through General Assembly Resolution AG/RES. 2353 (XXXVII- 0/07) of June 2007. The combined programs of Professional Development Scholarships and the virtual courses offered by the Educational Portal of the Americas, benefited more than 1,787 citizens of OAS member states in 2010 (plus an additional 300 for which the Portal provides academic oversight for UNDP). DHDEC continues its efforts to expand the program through partnership with universities throughout the hemisphere and direct placement of our scholars. As of December 2010 the DHDEC had 122 universities in the OAS consortium spread over 18 countries. Agreements with these universities are producing millions of dollars in tuition savings to the Organization as they are waived by the universities in different degrees. Likewise, direct placement of our scholars by DHDEC personnel, which otherwise would have been outsourced and paid to third party organizations, is producing hundreds of thousands of dollars in savings in placement fees. In 2010, member states approved a new initiative, Partnership for Education and Training Programs or PAEC by its acronym in Spanish. This new program represents an additional mechanism to leverage funding from partnering institutions to further education in the hemisphere. OAS funding for this program has been allocated from the regular Academic Scholarship Program. Courtesy of OAS Columbus Memorial Library Photograph Collection 44

GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Section II - MD&A With regard to human development and higher education, the department (a) successfully designed an emergency scholarship program for Haiti for implementation in 2011, (b) continued to augment the traditional scholarship program offerings through partnerships with member and observer states and institutions for academic and professional development (Program of Partnerships for Education and Training (PPET)); (c) launched the Inter-American Network of OAS Scholars webpage (www.educalum.org) as part of the alumni knowledge-sharing program; (d) co-organized regional meetings including the Caribbean Conference on Higher Education, and; (e) developed a network of regional partners for the advancement of ICT-supported education through the Multilateral Initiative in Education for Human Development. These activities have provided the OAS with a greater presence in the region in the area of knowledge-sharing and access to quality higher education. The Scholarship Program has been systematically affected by budget reductions over the past few years. Eventually, those reductions will make this program ineffective and inefficient. Furthermore, budget reductions for future budgetary years have the potential to cause a budgetary insufficiency as future fiscal years resources are committed by scholarships granted in previous fiscal years. DHDEC has been working on new strategies to propose to countermand this trend of decreased funding which would permit the OAS to continue its mission to provide access to quality, affordable higher education programs to the citizens of the hemisphere to help with their countries development. 45

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RESPONSIBILITY FOR FINANCIAL STATEMENTS The General Assembly approved the administration of the funds under its purview, to the General Secretariat and the Executive Secretariat for Integral Development (SEDI), and granted autonomy to certain organizations, agencies and/or entities. During the years 2010 and 2009, the administration of the OAS entities contained in this report was divided as follows: the General Secretariat was responsible for financial administration of the Regular Fund Specific Fund projects and service funds. The SEDI was responsible for the financial administration of the Special Multilateral of the Inter-American Council Fund for Integral Development (FEMCIDI) funds. The Leo S. Rowe Pan American Fund was under the administrative responsibility of SEDI and its treasury was under the General Secretariat. The Inter- American Defense Board received contributions from the OAS but operated administratively as an autonomous entity. The Retirement and Pension Fund conducts a separate independent audit which is included in this publication under Section IV. Courtesy of OAS Columbus Memorial Library Photograph Collection According to the separation of administrative responsibility mentioned above, the annual audit book for year 2010 is divided into four sections: Section I relates to the comments and recommendations by the Board of External Auditors to improve operating procedures and internal controls; Section II incorporates the financial statements of the funds administered by the General Secretariat; Section III incorporates the financial statements of entities 47

Section II - Resp. for Financial Statements GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 related to the OAS that are administratively autonomous; and Section IV reflects the financial statements of the Retirement and Pension Fund. As reflected in Section II, the General Secretariat has prepared and is responsible for the integrity of the financial data included in the accompanying financial statements. The combining statements for the Regular Fund, FEMCIDI, Specific Funds and Service Funds have been prepared in conformity with accounting practices prescribed by the Budgetary and Financial Rules of the Organization, which include the financially oriented General Standards that Govern the Operations of the General Secretariat and other provisions approved by the General Assembly. The accounting practices followed by the General Secretariat for these statements differ in certain respects from accounting principles generally accepted in the United States of America customarily applied in the presentation of financial statements. A description of the significant differences with these principles is set forth in Note 2 to the combining financial statements. The General Secretariat maintains an accounting system and related controls to provide reasonable assurance that financial records are reliable for preparing financial statements. The accounting system includes internal controls to provide assurance that proper procedures and methods of operations are used to implement plans, policies and directives of the General Secretariat. Courtesy of OAS Columbus Memorial Library Photograph Collection In addition, the Board of External Auditors, consisting of three members elected by the General Assembly, is authorized to audit all accounts, funds, and operations of the Organization. The Board of External Auditors has engaged the services of the independent accounting firm Ernst & Young, LLP to audit the financial statements. Ernst & Young, LLP auditing procedures include a review of internal controls and selected tests of transactions 48

GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Section II - Chapter 4 and records. These auditing procedures are intended to provide a reasonable level of assurance that the financial statements are fairly stated in all material respects. The Board periodically meets with the independent auditors, officials of the General Secretariat, and internal auditors to review and evaluate accounting, auditing and financial reporting activities and responsibilities. The Board of External Auditors, the independent auditors, as well as the internal auditors, have unlimited access to all records maintained by the General Secretariat. For the Regular, FEMCIDI, Specific and Service Funds, the Leo S. Rowe Pan American fund, Trust for the Americas, Rowe Memorial Benefit Fund, and the OAS Medical Benefits Fund, the General Secretariat acts as Treasurer and in that capacity has prepared those financial statements, and is responsible for the integrity of the data contained therein. 49

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CHAPTER 4 REGULAR, FEMCIDI, SPECIFIC AND SERVICE FUNDS OF THE OAS TABLE OF CONTENTS 53 REPORT OF INDEPENDENT AUDITORS 55 COMBINING FINANCIAL STATEMENTS 55 Exhibit 1 Combining Statement of Assets, Liabilities and Fund Balance 56 Exhibit 2 Combining Statement of Changes in Fund Balance 57 NOTES TO COMBINING FINANCIAL STATEMENTS 57 Organization and Combining Financial Statements 59 Accounting Principles 61 Use of Estimates 61 Foreign Currencies 62 Equity in OAS Treasury Fund 62 Regular Fund Balance 63 Fixed Assets 63 Accountable Advances 64 Contributions to Specific Funds 64 Tax Reimbursements 64 Demand Notes Payable 66 Leases 66 Retirement Plans 67 Post Employment Health Care and Life Insurance Benefits 67 Contingencies 67 Fellowships 67 Grants 68 SCHEDULES TO COMBINING FINANCIAL STATEMENTS 69 Schedule 1 Regular Fund Statement of Quota Assessments, Collections and Balances 70 Schedule 2 FEMCIDI Statement of Pledges, Payments and Balances 71 Schedule 3 Regular Fund Summary of Appropriations 71 Schedule 4 Regular Fund Summary of Disposition of Appropriations 72 Schedule 5 FEMCIDI Summary of Appropriations 72 Schedule 6 FEMCIDI Summary of Disposition of Appropriations 73 Schedule 7A Specific Funds Summary by Subprogram 75 Schedule 7B Specific Funds Detail by Subprogram 104 Schedule 8 Service and Revolving Funds Statements of Changes in Fund Balances 51

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GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Section II - Chapter 4 Ernst & Young LLP 1101 New York Ave, N.W. Washington DC 20005-4213 Tel: 202 327 6000 www.ey.com The Board of External Auditors Organization of American States REPORT OF INDEPENDENT AUDITORS We have audited the accompanying combining statement of assets, liabilities and fund balance of the Organization of American States (the Organization) Regular Fund, FEMCIDI, Specific Funds and Service Funds as of December 31, 2010 and the related combining statement of changes in fund balance for the year then ended. These financial statements are the responsibility of the Organization's management. Our responsibility is to express an opinion on these financial statements based on our audit. The prior year summarized comparative information has been derived from the Organization s 2009 financial statements and, in our report dated May 4, 2010, we expressed an unqualified opinion on those financial statements. We conducted our audit in accordance with auditing standards generally accepted in the United States and the external auditing requirements prescribed in Chapter IX of the General Standards of the Organization of American States. Those standards and requirements require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Organization s internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Organization s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As described in Note 2, the Organization prepares its combining financial statements on the basis of accounting principles prescribed by the Budgetary and Financial Rules (which include the applicable financially-oriented General Standards adopted by the General Assembly of the Organization of American States), which is a comprehensive basis of accounting other than accounting principles generally accepted in the United States. In our opinion, the financial statements referred to above present fairly, in all material respects, the assets, liabilities and fund balance of the Organization as of December 31, 2010, and the changes in its fund balance for the year then ended on the basis of accounting described in Note 2. Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying information in the Supplementary Schedules 1 through 8 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the procedures applied in our audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. April 27, 2011 53

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GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Section II - Chapter 4 Organization of American States Combining Statement of Assets, Liabilities and Fund Balance As of December 31, 2010 with comparative totals for 2009 (in thousands of USD) Exhibit 1 Notes Regular Fund FEMCIDI Specific Funds Service Funds (A) 2010 2009 ASSETS Cash and Equity in OAS Treasury Fund 5 2,971 7,735 95,347 8,415 114,468 122,803 Deferred charges related to future year's appropriations (B) 13 5,922 5,922 5,996 Due from tax equalization 6,990 Advances to employees and other receivables 704 61 765 692 Investment in fixed asset fund 7 54,306 54,306 54,509 Total Assets 63,903 7,735 95,347 8,476 175,461 190,990 Combined LIABILITIES AND FUND BALANCE Unliquidated obligations 2,049 1,528 12,410 1,940 17,927 20,108 Quotas / Pledges collected in advance 19 19 180 Amounts to be charged to future year's appropriations (B) 13 5,922 5,922 5,996 Due to Regular Fund 6,990 Accounts payable and other liabilities 743 27 1,092 222 2,084 1,516 Reserve for payroll terminations 818 2,469 3,287 2,379 Demand notes payable 11 22,290 22,290 22,730 Total liabilities 31,841 1,555 13,502 4,631 51,529 59,899 FUND BALANCES Restricted for fellowships 6 25 25 25 Financing for 2010 Regular Fund per AG/RES. 1 (XXXVIII E/09) 6,749 Unrestricted reserve subfund 6 21 21 405 Fund balance 6,180 81,845 3,845 91,870 92,133 Total fund balance 46 6,180 81,845 3,845 91,916 99,312 Restricted for fixed assets 6 32,016 32,016 31,779 Total liabilities and fund balance 63,903 7,735 95,347 8,476 175,461 190,990 (A) Includes tax equalization account. (B) Present value of OAS annuities (life payments to former Secretary Generals and former Assistant Secretary Generals). The accompanying notes form part of the financial statements 55

Section II - Chapter 4 GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Organization of American States Combining Statement of Changes in Fund Balance For the year ended December 31, 2010 with comparative totals for 2009 (in thousands of USD) Exhibit 2 Increases Notes Regular Fund FEMCIDI Specific Funds Service Funds (A) Elimination of Interfund Transactions 2010 2009 Quota & pledge receipts 78,149 1,417 (157) 79,409 81,828 Less: prompt payment credits (470) (470) (443) Contributions 9 68,635 28 68,663 73,094 Tax reimbursement 10 15,112 15,112 3,635 Transfers 101 1,146 5,176 (6,113) 310 157 Interest income 452 262 2,808 94 3,616 2,947 Administrative and technical support 3,149 9,903 (12,955) 97 Rental 500 1,487 1,987 1,810 Americas magazine subscriptions 213 213 228 Other income & refunds 1,650 45 1,299 2,994 (2,690) 3,298 3,753 Total increases 83,643 1,825 73,888 34,794 (21,915) 172,235 167,009 Combined Decreases Expenditures & obligations 8, 12, 13, 14 90,125 4,709 69,589 (B) 15,753 (B) (15,002) 165,174 162,106 Tax reimbursement 8,268 8,268 6,558 Transfers 200 4,754 3,562 (6,913) 1,603 1,404 Returns to donors 4,135 4,135 3,058 FONDEM grants 177 177 65 Americas magazine 274 274 169 Total decreases 90,776 4,709 78,478 27,583 (21,915) 179,631 173,360 Net increase (decrease) during period (7,133) (2,884) (4,590) 7,211 (7,396) (6,351) Fund balances, beginning of period 7,179 9,064 86,435 (3,366) 99,312 105,663 Fund balances, end of period 46 6,180 81,845 3,845 91,916 99,312 (A) Includes tax equalization account. (B) Net execution, comprised of 2010 expenditures plus 2010 unliquidated obligations less carryoverover obligations. The accompanying notes form part of the financial statements 56

NOTES TO COMBINING FINANCIAL STATEMENTS 1. ORGANIZATION AND COMBINING FINANCIAL STATEMENTS The Charter of the Organization of American States (OAS) was signed in Bogota in 1948 and amended by the Protocol of Buenos Aires in 1967, by the Protocol of Cartagena de Indias in 1985, by the Protocol of Washington in 1992, and by the Protocol of Managua in 1993. In this charter, the OAS was created as an international organization to achieve an order of peace and justice, to promote solidarity, to strengthen collaboration, and to defend the member states sovereignty, territorial integrity, and independence. The OAS is a regional agency, within the United Nations. The OAS accomplishes its purposes by means of a) the General Assembly, b) the Meeting of Consultation of Ministers of Foreign Affairs, c) the Councils, d) the Inter-American Juridical Committee, e) the Inter-American Commission on Human Rights, and f) the General Secretariat. The General Secretariat is the central and permanent organ of the OAS. To ensure observance of limitations and restrictions placed on the use of resources available to OAS, the accounts of OAS are maintained in accordance with fund accounting principles. Separate accounts are maintained for each fund. The combining financial statements of the OAS include the financial statements of the Regular Operating Fund, the Special Multilateral Fund of the Inter-American Council for Integral Development (FEMCIDI), Specific Funds, and Service Funds. The financial position and changes in fund balance of the Regular Fund, FEMCIDI, Specific Funds and Service Funds are reflected in Exhibits 1 and 2 on a combining basis and all interfund activity has been eliminated. Combining statement totals for 2009, including the footnotes, are presented for comparative purposes. In the accompanying combining financial statements, the funds administered by the General Secretariat are grouped in the following categories, according to their source of financing and purpose: A. General and Operating Subfunds Regular Fund The Regular Fund is financed primarily by the assessment of quotas to the member states and contributions from certain other OAS funds. The purpose of this fund is to provide the General Secretariat with general support as well as technical supervision and administrative services to the programs. In addition to the General Secretariat, the following organs, specialized organizations, agencies and entities are financed wholly or in part through budgetary appropriations of the Regular Fund and are included in the financial statements of the Regular Fund: General Assembly Permanent Council of the OAS Inter-American Commission on Human Rights Inter-American Court on Human Rights Inter-American Commission of Women 57

Section II - Chapter 4 GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Inter-American Juridical Committee Inter-American Children s Institute Inter-American Commission for Drug Abuse Control Inter-American Telecommunications Commission Inter-American Defense Board Executive Secretariat for Integral Development Pan American Development Foundation The Special Multilateral Fund of the Inter-American Council for Integral Development (FEMCIDI) FEMCIDI is financed mainly by voluntary contributions of the member states to support the programs adopted by the Council and approved by the General Assembly. FEMCIDI finances the multilateral and national cooperation programs, projects and activities of the Inter-American Council for Integral Development (CIDI). FEMCIDI consists of the Integral Development account and the following Sectoral accounts: Economic Diversification and Integration, Trade Liberalization and Market Access Social Development and Creation of Productive Employment Education Culture Scientific Development, and Exchange and Transfer of Technology Strengthening of Democratic Institutions Sustainable Development and Environment Sustainable Development of Tourism Specific Funds The Specific Funds are financed by grants or bequests for activities specified by the donor, and any other contributions by national or international, public or private entities, for carrying out or strengthening specific activities or programs of the General Secretariat. These funds have been segregated for specific purposes and their use is restricted through designation by the General Assembly, the General Secretariat and/or the donor. Service Funds The OAS manages several activities identified as Service Funds, which allows the OAS to handle certain administrative activities not directly related to donor agreements or Trust Funds. Since 2005, OAS has segregated these funds from the Specific Funds financial statements to reflect the impact of those Funds. Other Entities and Specialized Organizations The assets and liabilities as of December 31, 2010 and 2009, and the related income and expenses for the years 58

GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Section II - Chapter 4 then ended of the following organizations, which are subject to separate budgetary control and financial reporting, are not included within the accompanying financial statements of OAS (Exhibits 1 and 2): Inter-American Indian Institute Inter-American Institute for Cooperation on Agriculture * Inter-American Library Simon Bolivar * Leo S. Rowe Pan American Fund * Rowe Memorial Benefit Fund * OAS Medical Benefits Trust * Inter-American Defense Board * Pan American Development Foundation * Pan American Health Organization Retirement and Pension Fund * Recipients of cash and/or in kind contributions or administrative services from the Regular Fund. B. Other Subfunds The Regular Fund is divided into two subfunds: Operating Subfund and the Reserve Subfund. Operating Subfund In accordance with the Regular Fund Program-Budget, all income of the Regular Fund is credited to, and all obligations and expenditures are charged to the Operating Subfund, except for those amounts allocated to the Reserve Subfund or Supplementary Appropriations. Reserve Subfund The purpose of the Reserve Subfund is to ensure the regular and continuous financial functioning of the General Secretariat. At the end of the fiscal year the amounts remaining in the Operating Subfund become part of the Reserve subfund. The amount of this Subfund shall be equivalent to 30 percent of the total annual quotas of the member states. Amounts in excess of the 30 percent shall be available for any purpose approved by the General Assembly. As of December 31, 2010 and 2009, the total fund balance was insufficient to provide 30 percent to this balance. 2. ACCOUNTING PRINCIPLES The accompanying combining financial statements have been prepared in accordance with the Budgetary and Financial Rules of the OAS (Rules). The Rules provide the basis for the accounting principles applied in the preparation of the combining financial statements. The Rules were adopted to meet budgetary and other requirements of OAS, and as such result in accounting principles and financial statement display and disclosures which vary in certain material respects from those prescribed under accounting principles generally accepted in the United States of 59

Section II - Chapter 4 GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 America. OAS has not quantified the impact of these differences on the financial statements. The significant deviations are listed as follows and in various other notes. Table 1 Cost of Employee Benefits From January 1 to December 31 (in USD) A. The General Secretariat deems impractical to evaluate the collectability of assessed but uncollected quotas; therefore, quotas and pledges are included in the financial statements of the various funds only to the extent collected. Contributions from member states and from other interested parties for specific purposes are similarly recorded at the time of collection. 2010 2009 Home travel 196,144 244,559 Repatriation of family and household goods upon separation Separation indemnity and termination pay Medical Benefits subsequent to separation 141,719 116,120 (A) 3,663,178 1,321,041 3,442,947 3,361,773 Total (B) 7,443,988 5,043,493 (A) Includes USD 0.4 million of ex gratia payments in conformance with Article 103 of the General Standards that govern the operations B. Unliquidated obligations in certain funds include of the GS/OAS. amounts related to commitments to disburse monies (B) Does not include unrecorded earned annual and special leave approximately USD 7,089,589 and USD 7,005,025, as of December for the procurement of goods or services in future 31, 2010 and 2009, respectively. periods. Such amounts represent liabilities to third parties at the end of the respective periods and are anticipated to be expended in the subsequent year in the completion of a particular program or activity. Unliquidated obligations in the Regular Fund are de-obligated upon the expiration of the related appropriation. Those de-obligated obligations are recorded as other income in the accompanying financial statements. C. OAS provides certain benefits to its employees that accrue to them during periods of employment and are payable at various times during employment or upon separation, whether voluntary or involuntary. Costs for such employee benefits have historically been recorded upon payment rather than as such benefits accrue. Table 1 shows these expenditures and obligations for the years ended December 31, 2010 and 2009. D. The General Assembly of the OAS adopts a consolidated program budget which includes the budgets for the Regular Fund. In the combining budget, the amounts appropriated for substantially all approved career personnel costs are included in the Regular Fund s budget. In addition, certain other administrative costs benefiting all funds are included in the budget of the Regular Fund. In lieu of allocating these costs to various funds on a services-rendered basis, the General Assembly has provided that the other funds pay a contribution to the Regular Fund for administrative and technical support. The amount of the contribution may not bear a direct relationship to the actual cost of the services provided to those funds during the period. E. The Statements of Assets, Liabilities and Fund Balance of the Regular Fund include certain amounts to be charged against future appropriations. These expenditures are deferred as there is no approved budgetary financing. This deferral does not relate to the period in which the benefits accrue. F. The Statements of Assets, Liabilities and Fund Balance of the Regular Fund do not account for unexpended advances issued in the performance of certain OAS programs as they are recorded as expenses (Note 8). G. Contributions from member states and other interested parties in the form of use of facilities and services are received for certain activities administered by the General Secretariat. No amounts are recorded in the 60

GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Section II - Chapter 4 accompanying combining financial statements relating to the use of such facilities or services in as much as the General Secretariat currently does not have an objective procedure to value these amounts. H. A cash flow statement is not provided and certain other provisions pertaining to accounting principles generally accepted in the United States of America related to financial statement display are not applied. In addition, unrealized gains/(losses) on investments are not included in income, and investments are recorded at historical cost, not at fair value. I. OAS has created revolving accounts (Service Funds) according to its rules for the allocation of common costs among the various OAS funds and entities and other administrative activities that are not necessarily donor related. The major purpose of Service Funds is the identification of costs that should be allocated to various GS/OAS dependencies or to manage administrative activities. Those GS/OAS entities to which the costs are allocated recognize the amount as expenditures and a reduction in cash, and the service funds recognize the related income and the expenditures to third party vendors for 2010. J. FEMCIDI pledges received in a fiscal year are expended in the next fiscal year. Revenue is recognized in the year it is received and credited to the FEMCIDI Sectoral accounts as instructed by the contributing countries until project execution the following fiscal year. This policy reflects the provisions of the FEMCIDI statutes. K. GS/OAS does not account for the interest rate swap agreement under Financial Accounting Standards Board Accounting Standards Codification 815 (FASB ASC 815), Derivatives and Hedging. 3. USE OF ESTIMATES The preparation of combining financial statements in accordance with the Rules requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. 4. FOREIGN CURRENCIES Certain income and expense transactions during 2010 and 2009 were in currencies other than the United States dollar. These transactions have been translated into United States dollar equivalents at rates of exchange in effect at the time of the transactions. Foreign currency assets included in the accompanying combining financial statements, consisting principally of cash and time deposits amounting to approximately USD 208,444 and USD 171,976 as of December 31, 2010 and 2009, respectively, have been translated into the United States dollar at the applicable exchange rates at December 31. Certain currencies are restricted as to convertibility and, therefore, must be utilized in foreign local currency for OAS activities. 61

Section II - Chapter 4 GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 5. EQUITY IN OAS TREASURY FUND All U.S. dollars available for use in carrying out the activities of the various funds of the OAS are consolidated in the OAS Treasury Fund. Each fund administered by the General Secretariat maintains equity to the extent of its cash balance retained therein. The General Secretariat administers the OAS Treasury Fund, and amounts not immediately required for operations are invested. Income earned by the OAS Treasury Fund is added to the equity of each fund in proportion to its balance. The composition of the OAS Treasury Fund as of December 31 is shown in Table 2. Table 2 OAS Treasury Fund As of December 31 (in USD) 2010 2009 Demand and Time Deposits, net of USD 664,822 and USD 308,096 representing checks not presented for payment as of December 31, 2010 and 2009 respectively 118,096,107 124,866,669 Accrued Interest Receivable 982 1,641 Accrued Fees Payables (42,276) Scheduled Disbursements (283,153) (76,681) Local Currency at National Offices 208,444 171,976 117,980,104 124,963,605 Less Equity of Trust Funds 3,522,904 2,171,346 Add Petty Cash 11,300 10,900 114,468,501 122,803,159 6. REGULAR FUND BALANCE As of December 31, 2010 (See Table 3) the Regular Fund Balance is USD 46 thousand. This balance is divided in two categories: Appropriated Balance (USD 25 thousand) and Unappropriated Balance (USD 21 thousand). The Restricted Balance is the amount remaining from the 2006 USD 1.8 million appropriation restricted to cover fellowships. Table 3 Regular Fund Roll Forward Fund Balance Accounts (in thousands of USD) Reserve Subfund Unappropriated Appropriated Balance as of 12/31/2009 405 6,774 31,779 Net decrease during period (384) (6,749) Net increase in fixed assets 237 Balance as of 12/31/2010 Operating Subfund Restricted for Fixed Assets 21 25 * 32,016 * USD 25 restricted to cover Fellowships 2006 appropriated to be executed in 2008 and in subsequent years, pursuant to AG/RES. 2257 (XXXVI O/06). 62

GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Section II - Chapter 4 7. FIXED ASSETS The General Secretariat follows the practice of charging to current fiscal period s operations/appropriations the amount disbursed in improving the real property owned and acquiring equipment and works of art and subsequently capitalizing such acquisitions in a separate Fixed Assets Fund. This practice allows the GS/OAS to continue to reflect those expenditures for fixed assets against the amounts appropriated for such purposes while, at the same time, presenting them as capitalized assets on the Statement of Assets, Liabilities and Fund Balance. Only those assets under direct control of the General Secretariat at its headquarters, its offices in the member states and certain assets within the missions are included in the financial statements. Fixed assets are recorded at cost and depreciated on a straight line basis over their estimated useful lives. The composition of fixed assets as of December 31 is shown in Table 4. The historical cost of fixed assets equaled USD 92.6 million, net of accumulated depreciation of USD 38.3 million resulting in a total book value of USD 54.3 million. During 2010, fixed assets acquired in 2010 and prior years were capitalized. The book value of these assets amounted to USD 2,502,755. Retirements of fixed assets were also recorded during 2010 amounting to USD 1,628,139. Table 4 Composition of Fixed Assets As of December 31 (in USD) Asset Depreciation Basis 2010 2009 Land N/A 5,491,305 5,491,305 Buildings 50 years 64,189,770 63,241,932 Vehicles 5 years 3,987,497 3,387,582 Furniture 10 years 3,725,862 3,717,152 Technical Machinery & Equipment 5 years 12,288,439 12,713,967 Works of Art N/A 2,961,073 2,932,549 Collections N/A 1,350 1,350 92,645,296 91,485,837 Less: accumulated depreciation (38,339,566) (36,976,366) Net Book Value as of December 31 54,305,730 54,509,471 8. ACCOUNTABLE ADVANCES In the performance of various activities, the administrators of the various funds may deem it necessary to advance funds for conducting a program or a specific event prior to the actual incurrence of expenses, such as activities in remote locations. In the opinion of the administrators of the funds, such action is necessary to assure the timely performance of such activities. Recipients of advances are required to submit an accounting or suitable supporting documentation for the resulting expenditures in a form deemed adequate by the administrators of the funds and by the Department of Financial and Administrative Management Services. Advances of this nature are recorded as expenditures in the period in which funds are advanced. 63

Section II - Chapter 4 GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Table 5 Contributions to Specific Funds From January 1 to December 31, 2010 (in USD) 9. CONTRIBUTION TO SPECIFIC FUNDS Member States: Argentina 353,000 Bahamas, Commonwealth of the 24,900 Barbados 27,000 Brazil 844,308 Canada 22,279,231 Chile 94,923 Colombia 207,857 Costa Rica 3,873 Dominica, Commonwealth of 14,389 Dominican Republic 49,974 Ecuador 74,680 El Salvador 39,400 Guyana 985 Mexico 904,695 Nicaragua 5,000 Panama 120,000 Peru 648,429 St. Lucia 20,981 Suriname 1,000 Trinidad and Tobago 85,765 United States 19,957,340 Uruguay 15,000 Total Member States 45,772,730 67% Permanent Observers: Azerbaijan 20,000 Belgium 123,892 China 234,390 European Union 1,363,716 Finland 288,099 France 486,655 Germany 708,977 Ireland 122,075 Italy 234,754 Korea 300,000 Luxembourg 69,836 Norway 1,222,661 Qatar 20,000 Spain 5,187,844 Sweden 1,856,675 Switzerland 209,381 The Netherlands 2,715,110 Turkey 80,000 United Kingdom 537,926 Total Permanent Observers 15,781,991 23% Institutions and Others: Andean Development Corporation 281,494 CARICOM 167,117 CRUSA Foundation 136,900 Inter American Development Bank 104,500 International Bank for Reconstruction and Development 979,852 International Organization for Migration 1,380,000 National Commission on Space Activities 993,903 Swedish NGO for Human Rights 109,966 United Nations 1,347,964 International Institute for Democracy and Electoral Observation 100,000 Multiple Funding Sources 1,478,675 Total Institutions and Others 7,080,371 10% Contributions by donor to Specific Funds during the year ended December 31, 2010, as reflected in Exhibit 2 of the accompanying combining financial statements, are shown in Table 5. 10. TAX REIMBURSEMENTS Tax reimbursements represent amounts paid to certain employees of the GS/OAS for income taxes paid to their respective member state. The GS/OAS is responsible for reimbursement of income taxes to qualified individuals. At the same time, the member states which impose said requirement, are responsible for reimbursement to the GS/OAS for the amount disbursed to the employee. The Regular Fund is sometimes required to reimburse taxes to staff members prior to receipt of payment by the member states. 11. DEMAND NOTES PAYABLE Demand Notes Payable were incurred solely by the Regular Fund under the terms and conditions presented in Table 6. On October 24, 2001, GS/OAS issued twenty-five million dollars (USD 25,000,000) in the aggregate principal amount of the General Secretariat of the Organization of American States. Grand Total 68,635,092 100% 64

GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Section II - Chapter 4 Table 6 Demand Notes Terms and Conditions (in USD) Principal balance as of 12/31/2009: Repayment terms 22,290,000 Due on demand, scheduled payments due in monthly installments beginning on September 1, 2003, through March 1, 2033. Scheduled payments are made semiannually. Annual interest rate 6.37% Interest expense and fees: 2009 1,640,172 2010 1,599,432 Scheduled Principal Payments Prior Years 2,270,000 2010 440,000 2011 460,000 2012 500,000 2013 530,000 2014 and there after 20,800,000 Total 25,000,000 Taxable Variable Rate Demand Notes, Series A (Demand notes), and used the proceeds to pay off an existing mortgage, pay financing fees and finance the cost of improvements to the General Secretariat Building (GSB) located at 1889 F Street N.W. Washington, DC. The Demand notes will mature on March 1, 2033. In support of the Demand notes, Bank of America N.A. provided GS/OAS with a letter of credit which will expire on November 1, 2011. Although the Demand notes were issued in a variable rate mode, GS/OAS entered into a SWAP agreement with Bank of America locking in the interest it will pay on the Demand notes to 6.37%. Swap Agreement As GS/OAS does not follow accounting principles generally accepted in the United States of America, GS/OAS does not account for the interest rate swap agreement under Financial Accounting Standards Board Accounting Standards Codification 815 (FASB ASC 815), Derivatives and Hedging. Thus, OAS has not determined whether this swap is an effective or ineffective hedge relationship, and has not recorded the fair value of the swap. During fiscal years 2010 and 2009, OAS paid USD 1,599,432 and USD 1,640,172 respectively, of interest expense and fees related to the swap agreement, of which USD 30,564 and USD 30,063 relates to bank fees, respectively. The GS/OAS has various debt covenants related to the Demand notes. Not all of the requirements of those covenants were met during fiscal years 2010 and 2009. The terms of the Demand notes agreement require the bank to issue a letter of notification requesting that the default be remedied within 30 days. The GS/OAS has not received a letter of notification from the bank as of the date of the audit opinion, and thus is not considered to be in default on the demand notes. The swap agreement may be terminated early due to a number of circumstances, including default, as defined in the agreement, by GS/OAS or the swap counterparty or prepayment by GS/OAS of the variable-rate notes. If the swap agreement is terminated early, the variable-rate notes would no longer carry a synthetic fixed interest rate, and settlement would occur between GS/OAS and the swap counterparty related to any loss, as defined in the agreement. The swap had a negative mark-to-market value, as reported by the counterparty of approximately USD 6.7 million at December 31, 2010. 65

Section II - Chapter 4 GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 12. LEASES The General Secretariat leases certain facilities. Rental costs for such leases totaled USD 1,045,417 and USD 987,544 for the years ended December 31, 2010 and 2009, respectively. The GS/OAS leases space in its GSB building to other tenants, and occasionally rents the Hall of the Americas and the Art Museum of the Americas. These leases have varying terms of 5 to 15 years extending through June 2018. The GS/OAS earned rental income totaling USD 2,163,872 and USD 1,975,988 for the years ended December 31, 2010 and 2009, respectively. 13. RETIREMENT PLANS Staff members of the General Secretariat of OAS are required to join the Retirement and Pension Plan, Provident Plan or 401(M) Plan, as a condition of employment. In addition under special agreements, employees of other agencies of the Inter-American system may also participate in these Plans. The following agencies are current participants: the Inter-American Institute for Cooperation on Agriculture (IICA), the Inter-American Defense Board (IADB), and the Inter-American Court of Human Rights (ICHR). The Retirement and Pension Plan is a contributory defined benefit retirement plan. Compulsory contributions are shared 2/3 by the institution and 1/3 by the staff member. The Provident Plan is a contributory savings plan established for the benefit of employees under short-term contracts. Compulsory contributions to the Provident Plan are made in equal amounts and participants are fully vested at all times in their respective balances in the Plan. The 401(M) plan is also a contributory plan designed for members with a contract for a limited time in excess of one year or for members who have not elected participation in the Retirement and Pension Plan. The 401(M) is similar in its nature to an Individual Retirement Account (IRA). Pension expense for the Retirement and Pension, Provident and 401(M) Plans borne by the Regular Fund amounted to USD 8,197,937 in 2010 and USD 8,192,764 in 2009. In addition to the retirement plans described above, the General Secretariat provides a lifetime annuity to former Secretary Generals and Assistant Secretary Generals with survival benefits for their spouses and has extended pension benefits to certain former staff members with expired fixed term pensions. The approximate cost of these annuities, USD 335,054 and USD 351,724 in 2010 and 2009, respectively, is budgeted and recognized in the year paid. The approximate present value of estimated future payments of USD 5.9 million and USD 6.0 million as of December 31, 2010 and 2009, respectively, is reflected in the amounts to be charged to future year s appropriations in the Statement of Assets, Liabilities and Fund Balance of the Regular Fund. As GS/OAS does not follow accounting principles generally accepted in the United States of America, GS/OAS does not account for costs and any associated liabilities or assets related to any of its retirement plans under applicable pronouncements of the Financial Accounting Standards Board. Retirement plan costs are recorded as funded on a cash basis. 66

GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Section II - Chapter 4 14. POST EMPLOYMENT HEALTH CARE AND LIFE INSURANCE BENEFITS In addition to providing pension benefits as described in Note 13 above, the General Secretariat provides health care and life insurance benefits for retirees and their dependents. As GS/OAS does not follow accounting principles generally accepted in the United States of America, GS/OAS does not account for costs and any associated liabilities or assets related to its post retirement health care and life insurance benefits under applicable pronouncements of the Financial Accounting Standards Board. The cost of health care is partially borne by the retirees. The cost to the General Secretariat for its portion of the health care as well as the life insurance is recognized when paid. For the years ended December 31, 2010 and 2009, those costs were USD 2,931,293 and USD 3,198,313, respectively. 15. CONTINGENCIES There are several claims asserted by various individuals arising from the normal course of the Organization s activities. In the opinion of management, these cases and assertions will not result in a material adverse financial effect on the financial condition of OAS. 16. FELLOWSHIPS On an annual basis the GS/OAS approves fellowships to students that will matriculate in a country different than their national origin. OAS obligates funds related to the current fiscal period in that period. Future commitments of students are contingent on eligibility factors such as grades and continuing education at the selected colleges. As of December 31, 2010 the GS/OAS had recorded the following fellowship commitments for 2011 and 2012 Table 7 Fellowship Commitments (in USD) 2011 2,523,172 2012 520,669 3,043,841 17. GRANTS Grants received by the GS/OAS may be subject to donor audit, when stipulated in the donor agreement. Donors may request the GS/OAS financial reports of funds received and expended as prescribed in the corresponding donor agreements. Management believes it is in compliance with all significant donor requirements. 67

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GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Section II - Chapter 4 Organization of American States Regular Fund Statement of Quota Assessments, Collections and Balances Year ended December 31, 2010 (in USD) SCHEDULE 1 Member States Quota assessment for 2010 2009 prompt Collections in 2010 Balances as of December 31, 2009 payment & other For 2010 and In advance Uncollected Received in advance Percent Amount credits prior years for 2011 Uncollected balances as of December 31, 2010 ANTIGUA AND BARBUDA 0.02 17,382 348 17,382 18 ARGENTINA 3.21 2,540,531 2,540,531 BAHAMAS, COMMONWEALTH OF THE 59,108 0.08 60,938 1,830 60,938 62 BARBADOS 0.06 47,452 47,452 BELIZE 5,000 0.02 17,382 348 17,382 BOLIVIA 1,046 0.05 36,363 728 36,363 BRAZIL 7.95 6,292,338 6,292,338 CANADA 13.76 10,887,592 245,218 10,887,592 CHILE 1.07 848,942 848,942 COLOMBIA 32,586 0.84 663,829 663,829 COSTA RICA 0.19 147,950 147,950 150 DOMINICA, COMMONWEALTH OF 0.02 17,382 17,382 DOMINICAN REPUBLIC 0.21 163,035 163,035 165 ECUADOR 0.21 163,734 3,278 163,734 EL SALVADOR 0.11 83,116 83,116 GRENADA 67,200 0.02 17,382 44,800 39,782 GUATEMALA 0.19 147,950 2,962 147,950 6,308 GUYANA 0.02 17,382 17,382 18 HAITI 0.05 35,564 35,564 HONDURAS 27,843 0.05 35,564 712 28,555 7,009 JAMAICA 48,700 0.12 97,302 111,750 34,252 MEXICO 8.14 6,441,088 193,428 6,441,088 NICARAGUA 260,487 0.05 35,564 102,079 193,972 PANAMA 11,000 0.16 128,970 128,970 12,030 PARAGUAY 43,247 0.12 98,101 98,073 28 PERU 0.55 437,558 8,760 437,558 SAINT KITTS AND NEVIS 0.02 17,382 17,382 SAINT LUCIA 0.02 17,382 17,382 SAINT VINCENT AND THE GRENADINES 0.02 17,382 17,382 18 SURINAME 0.05 35,564 712 35,564 712 TRINIDAD AND TOBAGO 0.15 120,278 2,408 120,278 UNITED STATES 25 59.47 47,052,129 47,052,129 25 URUGUAY 0.18 143,255 143,255 VENEZUELA 541,741 2.06 1,629,852 1,199,541 972,052 918,128 a 179,855 99.24 b 78,513,615 460,732 78,149,084 19,506 1,282,659 a) Does not include Cuba which has an uncollected balance of USD 2,166,322. b) The quota assessed to Cuba is USD 606,087 and it is included in the computation of the quota representing 0.76% of the total quota assessment. Scale of Quota Assessment as per assessments per member state, resolution AG/RES. 1 (XXXVIII E/09). 69

Section II - Chapter 4 GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Organization of American States FEMCIDI Statement of Pledges, Payments and Balances As of December 31, 2010 (in USD) SCHEDULE 2 Member States Uncollected balances as of December 31, 2009 Payments Outstanding for 2010 and In advance for balances as of Pledges for 2010 prior years year 2011 December 31, 2010 ANTIGUA AND BARBUDA 6,988 6,988 ARGENTINA 19 40,230 40,230 19 BAHAMAS, COMMONWEALTH OF THE 15,000 15,000 BARBADOS 16,400 16,400 BELIZE 7,800 7,800 BOLIVIA 29,100 29,100 BRAZIL 237,000 264,672 501,672 CHILE 110,000 110,000 COLOMBIA 104,600 104,600 COSTA RICA 30,000 30,000 DOMINICA, COMMONWEALTH OF 5,100 5,100 DOMINICAN REPUBLIC 35,000 35,000 ECUADOR 16,678 16,678 EL SALVADOR 32,100 32,100 GRENADA 6,000 6,000 GUATEMALA GUYANA 5,100 5,100 HAITI 20 20 HONDURAS 20 20 JAMAICA 10,000 10,000 MEXICO 150,000 150,000 NICARAGUA 18,000 18,000 PANAMA 39,600 39,600 PARAGUAY 26,117 20,000 6,117 PERU 54,186 54,186 SAINT KITTS AND NEVIS 5,100 5,100 SAINT LUCIA 30 30 SAINT VINCENT AND THE GRENADINES 55 5,100 5,083 72 SURINAME 10,000 10,000 TRINIDAD AND TOBAGO 31,200 31,200 UNITED STATES URUGUAY 25,000 25,000 50,000 VENEZUELA 20,080 41,903 61,983 343,341 1,079,857 1,416,920 6,278 (a) (a) A pledge and a payment in the amount of USD 1,200,000 were received from the United States during the first quarter of 2011. 70

GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Section II - Chapter 4 Organization of American States Regular Fund Summary of Appropriations As of December 31, 2010 (in USD) SCHEDULE 3 Approved by the General Assembly (a) 2010 Adjusted Budget Transfers (b) Office of the Secretary General 5,221,800 (723,091) 4,498,709 Office of the Assistant Secretary General 17,385,200 (295,281) 17,089,919 Autonomous and/or Decentralized Entities 7,904,100 (106,205) 7,797,895 Secretariat for Legal Affairs 4,129,200 (1,227,033) 2,902,167 Secretariat for Multidimensional Security 4,098,000 136,164 4,234,164 Secretariat for Political Affairs 5,012,500 (632,863) 4,379,637 Executive Secretariat for Integral Development 15,374,500 (784,344) 14,590,156 Secretariat for External Relations 3,886,100 1,251,708 5,137,808 Secretariat for Administration and Finance 11,432,200 (191,501) 11,240,699 Basic Infrastructure and Common Costs 12,229,100 2,438,846 14,667,946 Subsidies: Inter American Court of Human Rights 1,864,500 133,600 1,998,100 Inter American Defense Board 1,456,000 1,456,000 Panamerican Development Foundation 131,800 131,800 Total 90,125,000 90,125,000 (a) AG/RES. 1(XXXVIII E/09) (b) Includes transfers established in Executive Order 08 01 Rev. 3 Organization of American States Regular Fund Summary Disposition of Appropriations As of December 31, 2010 (in USD) SCHEDULE 4 Actuals 2010 Adjusted Budget Charges for Expenditures Unliquidated Obligations Total Expenditures and Obligations Unused Appropriations Office of the Secretary General 4,498,709 4,439,498 59,211 4,498,709 Office of the Assistant Secretary General 17,089,919 16,854,198 235,721 17,089,919 Autonomous and/or Decentralized Entities 7,797,895 7,679,203 118,692 7,797,895 Secretariat for Legal Affairs 2,902,167 2,877,074 25,093 2,902,167 Secretariat for Multidimensional Security 4,234,164 4,147,944 86,220 4,234,164 Secretariat for Political Affairs 4,379,637 4,346,284 33,353 4,379,637 Executive Secretariat for Integral Development 14,590,156 13,856,645 733,511 14,590,156 Secretariat for External Relations 5,137,808 5,100,784 37,024 5,137,808 Secretariat for Administration and Finance 11,240,699 11,110,488 122,211 11,240,699 Basic Infrastructure and Common Costs 14,667,946 14,108,455 559,491 14,667,946 Subsidies: Inter American Court of Human Rights 1,998,100 1,998,100 1,998,100 Inter American Defense Board 1,456,000 1,456,000 1,456,000 Panamerican Development Foundation 131,800 131,800 131,800 Total 90,125,000 88,106,473 2,010,527 90,125,000 Budgeted Funding: Quotas 78,513,615 Administrative and Technical Support 3,282,600 Interest, Rental and Other Income 8,328,785 Total 90,125,000 71

Section II - Chapter 4 GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Organization of American States Special Multilateral Fund of CIDI (FEMCIDI) Summary of Appropriations As of December 31, 2010 (in USD) SCHEDULE 5 2010 Budget Transfers Approved by IACD Management Board (a) Unavailable Resources (a) 2010 Adjusted Budget Available Resources (a),(b) Integral Development Account 16,411 (16,411) Economic Diversification and Integration, Trade Liberalization and Market Access 288,105 288,105 Social Development and Creation of Productive Employment 557,987 557,987 Education 1,295,094 102,511 1,397,605 Culture 127,049 5,451 132,500 Scientific Development, Exchange and Transfer of Technology 848,000 848,000 Strengthening of Democratic Institutions 174,194 133,235 307,429 Sustainable Development of Tourism 415,365 415,365 Sustainable Development and Environment 1,088,775 31,011 1,119,786 Distribution Account 31,011 (31,011) Projects Preparation 1,748,131 (224,786) 1,523,345 Projects Evaluation 170,649 170,649 Contribution for Administrative and Technical Support 648,560 648,560 Total 7,409,331 7,409,331 (a) AICD/JD/doc.122 /10 rev. 1, dated April 22, 2010 (b) Includes the remaining of prior years unexecuted balances Organization of American States Special Multilateral Fund of CIDI (FEMCIDI) Summary Disposition of Appropriations As of December 31, 2010 (in USD) SCHEDULE 6 2010 Adjusted Budget (a) 2010 Unliquidated Obligations Total Expenditures and Obligations (b) Unused Appropriations 2010 Expenditures Economic Diversification and Integration, Trade Liberalization and Market Access 288,105 197,465 45,594 243,059 45,046 Social Development and Creation of Productive Employment 557,987 394,004 53,107 447,111 110,876 Education 1,397,605 765,368 254,806 1,020,174 377,431 Culture 132,500 48,482 27,780 76,262 56,238 Scientific Development, Exchange and Transfer of Technology 848,000 485,990 274,028 760,018 87,982 Strengthening of Democratic Institutions 307,429 112,948 60,303 173,251 134,178 Sustainable Development of Tourism 415,365 195,148 153,734 348,882 66,483 Sustainable Development and Environment 1,119,786 422,742 225,760 648,502 471,284 Projects Preparation 1,523,345 139,764 18,727 173,490 1,349,855 Projects Evaluation 170,649 131,334 38,704 170,038 611 Contribution for Administrative and Technical Support 648,560 648,560 648,560 Total 7,409,331 3,541,805 1,152,543 4,709,347 2,699,984 Actuals (a) FEMCIDI programming cycle started on May 1, 2010 through June 30, 2011. (b) Total expenditures and obligations includes activities of the previous FEMCIDI programming cycle ended on April 30, 2010. 72

GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Section II - Chapter 4 Organization of American States Specific Funds Statement of Changes in Fund Balance (Summary by Subprogram) From January 1, 2010 to December 31, 2010 (in USD) SCHEDULE 7A Program and Subprogram A B C D E F G=B+C+D+E F H=A+G I J=H I Cash Balance Jan. 1, 2010 Contributions Transfers Interest Returns & Other Income Expenditures Net Change Cash Balance Dec. 31, 2010 Obligations Fund Balance Dec. 31, 2010 Program 1 Office of the Secretary General The Office of the Secretary General (12A) 136,734 579,033 372,599 670,202 281,430 418,164 10,786 407,378 The Summits Secretariat (12B) 336,386 121,842 215,750 4,062 447,936 (106,282) 230,104 95,184 134,920 The Department of Legal Services (12E) 197,815 (3,815) 38,469 (42,284) 155,531 17 155,514 The Office of Protocol (12F) 898 (68) (830) (898) TOTAL 671,833 121,842 790,900 375,830 1,156,607 131,966 803,799 105,987 697,812 Program 2 Office of the Assistant Secretary General The Office of the Assistant Secretary General (22A) The Office of the Secretariat to the General Assembly, the Meeting of Consultation, the Permanent Council, and Subsidiary Organs (22B) The Department of Conferences and Meetings Management (22C) Coordinating Office for the Offices and Units of the General Secretariat in the Member States (22D) The Columbus Memorial Library (22F) (322,519) 79,510 1,609 1,221 74,341 7,998 (314,520) 2,977 (317,497) 5,979 5,979 5,979 152,774 207,251 (32,159) (23,902) 121,823 29,367 182,141 2,764 179,378 534,083 199,115 13,315 287,492 (75,063) 459,021 59,618 399,402 8,405 8,312 18,644 (10,332) (1,927) (1,927) The Secretariat of the Inter American Committee on Ports (CIP) (22G) 322,145 295,578 252 310,314 (14,484) 307,661 87,342 220,319 General Assembly (22H) 216,433 648,429 (175,669) 472,760 216,433 216,433 OAS Unprogrammed Meetings (22I) 183,352 82,165 (12,452) 80 34,141 35,651 219,003 12,826 206,177 TOTAL 1,100,652 1,512,047 (43,002) (176,392) 1,319,514 (26,862) 1,073,790 165,526 908,264 Program 3 Autonomous and/or Decentralized Entities The Executive Secretariat of the Inter American Commission on Human Rights (IACHR) (32B) The Secretariat of the OAS Administrative Tribunal (TRIBAD) (32C) The Office of the Inspector General (32D) 3,601,623 2,476,630 1,155,864 34,105 (300,224) 4,357,002 (990,627) 2,610,997 466,407 2,144,590 15,353 24,050 17,566 6,484 21,837 20,007 1,830 1,736 1,736 1,736 The Permanent Secretariat of the Inter American Committee of Women (CIM) (32I) 569,379 82,576 823,413 (9,191) 743,445 153,353 722,732 179,293 543,439 The Secretariat of the Inter American Telecommunication Commission (CITEL) (32K) 1,053,624 324,307 (980,956) 317,052 (973,701) 79,923 7,633 72,290 The Office of the Director General of the Inter American Children's Institute (INN) (32M) 822,279 324,282 44,428 7,596 (21,356) 719,291 (364,342) 457,938 9,350 448,587 TOTAL 6,063,995 3,231,845 2,023,704 41,701 (1,311,727) 6,154,356 (2,168,833) 3,895,162 682,689 3,212,473 Program 4 Secretariat for Legal Affairs The Secretariat for Legal Affairs (42A) 670,840 1,197,891 888,525 5,802 (128,542) 1,548,702 414,975 1,085,814 264,570 821,244 The Department of International Law (42B) 674,751 242,168 1,057,995 3,270 (113,357) 1,145,535 44,542 719,293 192,882 526,411 The Department of Legal Cooperation (42C) 835,383 681,859 371,760 (53,327) 820,760 179,531 1,014,914 200,086 814,828 The Department of Special Legal Programs (42E) 10,452 90,756 117,150 (26,394) (15,942) 10,531 (26,473) TOTAL 2,191,425 2,212,675 2,318,281 9,072 (295,226) 3,632,147 612,654 2,804,079 668,068 2,136,011 Program 5 Secretariat for Multidimensional Security The Secretariat for Multidimensional Security (52A) The Executive Secretariat of the Inter American Drug Abuse Control Commission (CICAD) (52C) 938 212,450 618 229,122 (16,054) (15,117) 80,887 (96,004) 13,576,573 5,876,509 (99,855) 9,411 47,496 5,452,338 381,222 13,957,796 1,371,417 12,586,379 The Secretariat of the Inter American Committee Against Terrorism (52D) 3,785,901 5,354,930 78,599 1,094 (69,456) 4,238,168 1,126,999 4,912,900 1,012,492 3,900,408 The Department of Public Security (52E) 1,383,373 5,234,974 1,984,997 5,364 (294,148) 5,892,176 1,039,011 2,422,385 1,215,094 1,207,291 TOTAL 18,746,785 16,678,862 1,963,740 15,869 (315,490) 15,811,804 2,531,178 21,277,964 3,679,890 17,598,074 73

Section II - Chapter 4 GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Organization of American States Specific Funds Statement of Changes in Fund Balance (Summary by Subprogram) From January 1, 2010 to December 31, 2010 (in USD) SCHEDULE 7A Program and Subprogram A B C D E F G=B+C+D+E F H=A+G I J=H I Cash Balance Jan. 1, 2010 Contributions Transfers Interest Returns & Other Income Expenditures Net Change Cash Balance Dec. 31, 2010 Obligations Fund Balance Dec. 31, 2010 Program 6 Secretariat for Political Affairs The Secretariat for Political Affairs (62A) 315,086 108,022 582,299 (41,397) 1,556,988 (908,064) (592,978) 52,656 (645,634) The Department of Electoral Cooperation and Observation (62B) 2,269,378 3,692,277 4,343,764 8,038 (443,008) 7,503,763 97,308 2,366,687 869,454 1,497,233 The Department of Sustainable Democracy and Special Missions (62C) 3,412,763 7,145,620 1,381,644 34,240 (127,869) 8,872,483 (438,847) 2,973,916 1,467,144 1,506,772 The Department of State Modernization and Good Governance (62D) 6,020,711 4,538,780 2,538,236 1,352 (363,729) 6,582,478 132,160 6,152,871 1,579,266 4,573,605 TOTAL 12,017,939 15,484,700 8,845,943 43,630 (976,002) 24,515,712 (1,117,442) 10,900,497 3,968,520 6,931,976 Program 7 Secretariat for Integral Development The Office of the Executive Secretary for Integral Development (72A) 12,716,948 5,681,874 (985,308) 433,664 12,075 1,380,837 3,761,468 16,478,416 660,749 15,817,667 The Department of Economic Development, Trade, and Tourism (72C) 1,479,301 325,657 934,065 13,556 3,894 1,537,971 (260,799) 1,218,501 373,484 845,017 The Department of Sustainable Development (72D) 6,168,807 6,132,312 1,324,553 54,816 (70,837) 7,241,485 199,359 6,368,166 840,378 5,527,788 The Department of Social Development and Employment (72E) 1,049,737 494,068 585,702 3,236 (30,352) 1,033,213 19,441 1,069,179 139,434 929,745 The Department of Human Development, Education, and Culture (72G) 1,168,086 252,673 693,617 5,761 12,137 1,021,781 (57,593) 1,110,494 220,012 890,482 CIDI Mtgs., Ministerial & IA Committees Meetings (72H) 220,466 157,974 (15,398) (58,809) 111,749 (27,981) 192,485 3,763 188,722 TOTAL 22,803,346 13,044,559 2,537,232 511,033 (131,891) 12,327,037 3,633,895 26,437,241 2,237,820 24,199,421 Program 8 Secretariat for External Relations The Secretariat for External Relations (82A) 145,025 124,000 427,597 499,093 52,504 197,529 80,791 116,739 The Department of Strategic Communications and Image (82B) 117,783 173,472 156,330 472 277,616 52,659 170,442 69,656 100,786 The Department of International Affairs (82C) 244,193 242,689 368,172 (32,906) 360,212 217,743 461,936 161,194 300,742 The Department of Cultural Affairs (82D) 42,516 107,620 194,651 27,341 258,018 71,594 114,110 26,153 87,957 The Press Department (82F) 19,390 2,327 17,063 17,063 17,063 TOTAL 549,517 667,171 1,146,750 (5,093) 1,397,265 411,563 961,080 337,793 623,286 Program 9 Secretariat for Administration and Finance The Department of Human Resources (92B) 444,273 40,000 15,961 1,607 160,892 (103,324) 340,949 45,000 295,949 The Department of Financial and Administrative Management Services (92C) 514,467 291,608 (291,608) 222,859 113,155 109,705 The Department of Information and Technology Services (92D) 166,209 45,672 (5,079) 67,206 (26,613) 139,596 139,596 The Department of Planning and Evaluation (92G) 174,846 1,151,698 1,515 124,487 367,020 910,681 1,085,527 180,661 904,865 TOTAL 1,299,795 40,000 1,213,331 1,515 121,016 886,726 489,135 1,788,931 338,816 1,450,115 Program 10 Basic Infrastructure and Common Costs Centennial Celebration (102O) 26,379 46,113 225,500 290,052 (18,439) 7,939 7,567 372 Other Resolution CP 831/2002 9,832,028 3,134 200,162 270,578 5,250 931,209 (452,086) 9,379,943 158,105 9,221,837 Fund for Cooperation with Latin America & the Caribbean 5,287,461 114,684 (1,886,313) (1,771,629) 3,515,832 3,515,832 Projects to Strengthen Democracy and Governance in Haiti 287,537 407,977 (90,662) 21,141 352,549 (14,094) 273,443 59,305 214,138 Oliver Jackman Fund 145,194 4,293 4,293 149,487 149,487 Unprogrammed Funds 17,097,158 15,184,169 (21,869,899) 219,491 275,115 358 (6,191,482) 10,905,676 10,905,676 Interest to be reimbursed to USINL 166,539 292,574 (165,744) 126,830 293,369 293,369 Specific Funds Interest to ICR (1,283,279) 1,283,279 Reconciliation / Write Off (256,204) 43,361 43,361 (212,842) (212,842) TOTAL 32,559,714 15,595,280 (23,043,678) 2,184,899 (1,707,189) 1,284,117 (8,254,805) 24,304,909 217,410 24,087,499 GRAND TOTAL 98,031,378 68,635,092 (2,021,301) 2,807,719 (4,422,164) 68,775,338 (3,775,992) 94,255,389 12,410,087 81,845,303 74

GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Section II - Chapter 4 Organization of American States Specific Funds Statement of Changes in Fund Balance (Summary by Subprogram) From January 1, 2010 to December 31, 2010 (in USD) SCHEDULE 7B A B C D E F G=B+C+D+E F H=A+G I J=H I Organization, Donor & Project Cash Balance Jan. 1, 2010 Contributions Transfers Interest Returns & Other Income Expenditures Net Change Cash Balance Dec. 31, 2010 Obligations Fund Balance Dec. 31, 2010 The Office of the Secretary General (12A) Chile Chile Cooperation Extraordinary. 6,254 6,200 (6,200) 55 55 CIDA Crisis Costa Rica/ Nicaragua 35,000 25,960 9,040 9,040 7,183 1,858 CIDA Crisis in Haiti 50,000 7,378 42,622 42,622 685 41,937 CIDA Crisis in Honduras 80,000 80,000 80,000 282 79,718 CIDA Democracy Project OSG 34,533 159,026 169,109 (10,083) 24,450 24,450 Spain Democracy Project OSG 34,332 40,732 (15,446) 59,045 (33,758) 573 573 CIDA Emerging Priorities 78,286 50,624 110,736 (60,112) 18,174 648 17,526 Various Facilitate Talk Between Belize and Guatemala 7,200 7,200 7,200 USDS High Level Mission Venezuela (106,345) (106,345) (106,345) USDS Honduras Special Commission 589 589 589 Chile Inter American Tribune 2,560 2,560 2,560 CIDA Management & Evaluation 300,949 300,949 300,949 300,949 Spain Management/Contractual & Related Expenses (388,044) 388,044 Spain New Democracies Latin America 246,275 241,044 5,231 5,231 1,734 3,496 Various Office of the Secretary General 689 689 689 Chile Official Travel Expenses 1,021 1,021 1,021 CIDA Support OAS Engag. Urgent Hemisphere (A1) 1,457 10,692 1,645 9,047 10,504 10,504 CIDA Support OAS Engag. Urgent Hemisphere (A2) 76,158 (6,220) 49,085 (55,306) 20,853 254 20,599 TOTAL 136,734 579,033 372,599 670,202 281,430 418,164 10,786 407,378 The Summits Secretariat (12B) Canada Civil Society Participation 38 (38) (38) OSI DF Civil Society Participation 1,903 (746) (746) 1,157 1,157 PAHO Civil Society Participation 1,478 (1,478) (1,478) USAID Civil Society Participation 720 (720) (720) Argentina S.I.R.G. Meetings 13,375 11,161 (11,161) 2,214 1,998 216 Chile S.I.R.G. Meetings 10,000 (99) 99 1,100 8,900 8,900 5,000 3,900 Colombia S.I.R.G. Meetings 52,857 36 18,400 34,493 34,493 2,968 31,525 Guyana S.I.R.G. Meetings 985 985 985 985 Mexico S.I.R.G. Meetings 120 (120) (120) Nicaragua S.I.R.G. Meetings 1,313 5,000 10 1,323 3,687 5,000 5,000 Panama S.I.R.G. Meetings 10,494 40,000 494 39,506 50,000 33,196 16,804 Suriname S.I.R.G. Meetings 1,000 1,000 1,000 1,000 Trin.&Tob S.I.R.G. Meetings 947 947 (947) USDS S.I.R.G. Meetings 250 (250) (250) Korea SUM/Korea/OAS Internship Program 6,773 12,000 (440) 12,880 (1,320) 5,453 3,165 2,288 CIDA Summits in Trinidad & Tobago 2009 210,293 146,424 3,927 329,321 (178,971) 31,323 31,322 1 France Work Group on Indigenous Rights (145) (145) (145) SAIC Work Group on Indigenous Rights 89,350 11,266 78,085 78,085 6,023 72,061 Spain Work Group on Indigenous Rights 88,827 (16,144) 61,044 (77,188) 11,639 11,512 128 TOTAL 336,386 121,842 215,750 4,062 447,936 (106,283) 230,104 95,184 134,919 The Department of Legal Services (12E) IICA Department of Legal Services 194,000 38,469 (38,469) 155,531 17 155,514 Various Overhead Legal Department 3,815 (3,815) (3,815) TOTAL 197,815 (3,815) 38,469 (42,284) 155,531 17 155,514 The Office of Protocol (12F) Various Public: House Americas 898 (68) (830) (898) 75

Section II - Chapter 4 GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Organization of American States Specific Funds Statement of Changes in Fund Balance (Detail by Subprogram) From January 1, 2010 to December 31, 2010 (in USD) SCHEDULE 7B A B C D E F G=B+C+D+E F H=A+G I J=H I Organization, Donor & Project Cash Balance Jan. 1, 2010 Contributions Transfers Interest Returns & Other Income Expenditures Net Change Cash Balance Dec. 31, 2010 Obligations Fund Balance Dec. 31, 2010 The Office of the Assistant Secretary General (22A) Various Backpacks Haiti's children 9,646 9,646 9,646 9,646 CR/NI Civilian Observers (24,703) (24,703) (24,703) Various Honduras El Salvador Military Observation (363,508) (363,508) (363,508) St. Lucia Hurricane Katrina Victims Fund 10,000 10,000 10,000 CIDA OAS Haiti Mission 2009 1,507 289 308 (19) 1,488 20 1,468 USDS OAS Haiti Mission 2009 18,838 1,221 1,221 20,059 20,059 USDS Spec.Unfors.Act. relate Haiti 1,320 1,197 123 123 123 Italy Strength of Democratic Govern 4,774 3,427 (3,427) 1,347 91 1,256 USINL Tech Adv. Haitian Nat Police 69,863 69,409 454 454 2,866 (2,412) Various Workmen's Compensation 30,574 30,574 30,574 TOTAL (322,519) 79,510 1,609 1,221 74,341 7,998 (314,520) 2,977 (317,497) The Office of the Secretariat to the General Assembly, the Meeting of Consultation, the Permanent Council, and Subsidiary Organs (22B) Various Unprogrammed Conferences 5,979 5,979 5,979 The Department of Conferences and Meetings Management (22C) Mexico 35TH Assembly of CIM 59,374 44,851 14,523 14,523 1,649 12,874 Uruguay CIDI Ministers of Education Meeting 5,091 (5,091) (5,091) Various Conference & Meetings Print Services 87,167 87,167 87,167 Mexico First Meeting Technical Group Organized Crime 19,698 19,698 19,698 Barbados General Assembly 2,352 (2,352) (2,352) Costa Rica General Assembly 14,716 (14,716) (14,716) PCA Hearing at the OAS Guyana/Suriname 8,755 8,755 8,755 U.S. Justice Study Center (1,947) (1,947) (1,947) Argentina Model OAS General Assembly 10,000 (10,000) (10,000) Uruguay Public Securiity Meeting 1,830 120 (120) 1,710 1,710 Brazil REMJA VIII 85,004 35,821 49,183 49,183 49,183 Venezuela Social Charter 1,270 1,270 1,270 CIT Twelfth I A CIT Assembly 2,729 (2,729) (2,729) Mexico V General Assembly CITEL 62,873 (21,843) 41,030 Trin.&Tob V Summit of the Americas 1,115 669 669 1,784 1,115 669 TOTAL 152,774 207,251 (32,159) (23,902) 121,823 29,367 182,141 2,764 179,377 Coordinating Office for the Offices and Units of the General Secretariat in the Member States (22D) Various Office in the Member States 534,083 199,115 13,315 287,492 (75,063) 459,021 59,618 399,402 The Columbus Memorial Library (22F) Various Hipolito Unanue Library 8,405 8,312 18,644 (10,332) (1,927) (1,927) The Secretariat of the Inter American Committee on Ports (CIP) (22G) Various CIP Port Program 251,861 242,391 252 267,889 (25,246) 226,615 86,837 139,778 Various Special Port Program 260 260 260 Various Technical Advisory Groups 70,024 17,991 8,693 9,298 79,321 79,321 ANP Technical Cooperation APN Peru 35,196 33,731 1,465 1,465 505 960 TOTAL 322,145 295,578 252 310,314 (14,484) 307,661 87,342 220,319 General Assembly (22H) Grenada Grenada VII General Assembly (14,341) (14,341) (14,341) Peru XL Session General Assembly (Peru) 648,429 (175,669) 472,760 76

GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Section II - Chapter 4 Organization of American States Specific Funds Statement of Changes in Fund Balance (Detail by Subprogram) From January 1, 2010 to December 31, 2010 (in USD) SCHEDULE 7B A B C D E F G=B+C+D+E F H=A+G I J=H I Organization, Donor & Project Cash Balance Jan. 1, 2010 Contributions Transfers Interest Returns & Other Income Expenditures Net Change Cash Balance Dec. 31, 2010 Obligations Fund Balance Dec. 31, 2010 Nicaragua XXIII General Assembly Nicaragua 2,207 2,207 2,207 Honduras XXXIX Session General Assembly (Honduras) 175,082 175,082 175,082 Panama XXXVII Session General Assembly (Panama) 53,039 53,039 53,039 Colombia XXXVIII Session General Assembly (Colombia) 446 446 446 TOTAL 216,433 648,429 (175,669) 472,760 216,433 216,433 OAS Unprogrammed Meetings (22I) Trin.&Tob CICTE V Regular Session 2005 16,734 16,734 16,734 Colombia CIFTA Interamerican Convention 5,456 (5,456) (5,456) Bolivia DADIN X Meeting A.D.R. Indigenous People 40,192 40,192 40,192 Panama Discrimination Against Handicap People 23,459 23,459 23,459 Mexico II Meeting Follow up SECURITY 8,808 80 80 8,888 8,888 OAS GA II Meeting Follow up SECURITY 180 180 180 Argentina II Meeting Trata de Personas 29,137 29,137 29,137 Brazil III CONF. STATES MESICIC 52,242 17,964 34,277 34,277 12,826 21,451 Colombia III Experts on Mutual Assistance Criminal Matters 11,710 11,710 11,710 Brazil III Meeting Ministers Local Governments 335 335 335 Colombia IV National Points Mtg & VI CICTE Regular Session 24,188 24,188 24,188 El Salvador IV Working Group REMJA 1,792 1,792 1,792 Dom. Repub. Ministers Resp Public Security 2,878 2,878 2,878 Chile MISPA III 29,923 16,177 13,746 13,746 13,746 Canada Second Meeting Small Islands (3,871) (3,871) (3,871) Guatemala VI Negotiations Meeting Indigenous People 6,996 (6,996) (6,996) Panama VII Regular Session CICTE 15,358 15,358 15,358 TOTAL 183,352 82,165 (12,452) 80 34,141 35,651 219,003 12,826 206,177 The Executive Secretariat of the Inter American Commission on Human Rights (IACHR) (32B) UK Access to Information 18,214 242,972 131,865 111,106 129,320 74,057 55,264 SAIC Capacities CIDH Phase II 490,000 441,713 48,287 48,287 44,296 3,991 Korea CIDH/Korea/OAS Internship Program 6,773 2,813 (2,813) 3,960 3,960 Spain Digitalization System of CIDH Documents 110,254 68,470 (103,641) 74,868 (110,039) 215 215 EEC Ethnic, Racial Equality & Rights 313,028 9,254 9,254 322,282 322,282 Sweden Follow Up of Demobilization Process in Colombia 58,744 (58,744) (58,744) EEC Fort Derec Libert Exp Amer 315,624 400,152 4,380 330,470 74,062 389,686 1,400 388,286 FUPA Fort Derec Libert Exp Amer 1,755 1,755 Switzerland Fort Derec Libert Exp Amer 29,950 29,686 264 264 80 185 France H.R. Protection and Promotion in Haiti (2008 09) 52,943 37,812 (37,812) 15,132 10,460 4,671 Brazil I A Commission on Human Rights 11 11 11 OAS GA I A Commission on Human Rights 1,097 1,097 1,097 Uni ND I A Commission on Human Rights 10,221 12,000 12,509 (509) 9,711 8,400 1,311 Various I A Commission on Human Rights 190 7,610 7,610 7,800 7,800 Italy Initiative on Citizen Security and H.R. in the Americas 26,191 26,191 (26,191) Finland Just. Women Victim Sex Violent 79,727 58,367 21,361 21,361 21,361 United Nations Justice for woman victims of sexual violence 20,860 7,466 13,394 13,394 1,033 12,361 Brazil Legal Assist Fd Inter Am HR 10,000 230 (230) 9,770 9,770 Colombia Legal Assist Fd Inter Am HR 25,000 2,750 22,250 22,250 22,250 CIDA Legal Standards Gender Equality 78,573 100,474 95,535 4,940 83,513 29,332 54,181 Spain Principles Persons. Priv. Lib. 89,292 91,769 (23,154) 100,832 (32,217) 57,075 22,430 34,644 EEC Prom. eth & rac. rights in LA 338,932 336 23,725 315,543 315,543 315,543 Brazil Promote & Protect Human Rights 30,508 33,363 62,393 (29,030) 1,478 1,478 Chile Promote & Protect Human Rights 1,055 10,000 10,281 (281) 774 130 644 77

Section II - Chapter 4 GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Organization of American States Specific Funds Statement of Changes in Fund Balance (Detail by Subprogram) From January 1, 2010 to December 31, 2010 (in USD) SCHEDULE 7B A B C D E F G=B+C+D+E F H=A+G I J=H I Organization, Donor & Project Cash Balance Jan. 1, 2010 Contributions Transfers Interest Returns & Other Income Expenditures Net Change Cash Balance Dec. 31, 2010 Obligations Fund Balance Dec. 31, 2010 Colombia Promote & Protect Human Rights 1,041 80,000 70,205 9,795 10,836 9,516 1,320 France Promote & Protect Human Rights 4,616 18,837 14,830 4,007 8,623 2,299 6,324 Italy Promote & Protect Human Rights 1,447 604 (604) 843 843 Korea Promote & Protect Human Rights 173 136 (136) 37 37 Mexico Promote & Protect Human Rights 59,282 105 59,128 (59,023) 259 105 154 United Nations Promote & Protect Human Rights (5,992) 10,150 4,158 5,992 USDS Promote & Protect Human Rights 564,391 399,971 745,432 (345,461) 218,930 45,296 173,633 Italy Promoting Human Rights in Andean Countries 1,418 640 (640) 779 779 Colombia Rapport Rights Indigenous People 2,900 943 (943) 1,957 1,957 Denmark Rapport Rights Indigenous People 193,578 3,774 122,813 (119,038) 74,539 74,539 Italy Rapport Rights Indigenous People 95 91 (91) 3 3 SAIC Rapport Rights Indigenous People 105,700 45,688 60,012 60,012 26,223 33,789 Spain Rapport Rights Indigenous People 95,733 18,120 (18,120) 71,410 (71,410) 24,323 24,323 USDS Rapport Rights Indigenous People 44,500 44,500 (44,500) Colombia Rapport Rights Persons Deprived of Freedom 328 328 (328) Italy Rapport Rights Persons Deprived of Freedom 836 836 (836) Spain Rapport Rights Persons Deprived of Freedom 8,765 (15,162) 6,397 (8,765) CA DFAIT Rapporteur on Freedom Expression 5,312 5,312 5,312 Costa Rica Rapporteur on Freedom Expression 2,790 3,873 2,751 1,122 3,912 3,912 France Rapporteur on Freedom Expression 8,800 8,073 4,891 3,182 11,982 464 11,518 Ireland Rapporteur on Freedom Expression 218 218 (218) Italy Rapporteur on Freedom Expression 849 834 (834) 15 15 SAIC Rapporteur on Freedom Expression 1,601 (1,601) (1,601) Sweden Rapporteur on Freedom Expression 147,717 3,838 70,256 (66,417) 81,299 35,730 45,569 Swedish NGO for Rapporteur on Freedom Expression 109,966 1,085 94,959 16,092 16,092 2,000 14,092 Switzerland Rapporteur on Freedom Expression 351 9,975 10,326 (351) USDS Rapporteur on Freedom Expression 357,048 (6,414) 6,408 330,980 (330,987) 26,062 2,000 24,062 Brazil Rapporteur on Rights of Afro Descent 29,840 (1,261) 27,525 (28,786) 1,054 201 853 Colombia Rapporteur on Rights of Afro Descent (1,713) 6,063 6,063 4,350 4,350 USDS Rapporteur on Rights of Afro Descent 44,952 (452) 41,831 (42,283) 2,669 2,669 Luxembourg Rapporteurship on the Rights of the Child 64,989 18,799 46,190 46,190 22,000 24,190 SCS Rapporteurship on the Rights of the Child 26,000 25,569 431 431 431 Unicef Rapporteurship on the Rights of the Child 14,980 12,798 2,182 2,182 2,182 Spain Rapporteurship: Migrant Workers & their Families 45,564 57,456 (12,568) 52,949 (8,061) 37,502 3,116 34,386 USDS Rapporteurship: Migrant Workers & their Families 8,900 8,900 (8,900) Venezuela Rapporteurship: Migrant Workers & their Families 389 389 (389) Finland Special Rapporteurs on Women 84,078 84,078 84,078 Spain Special Rapporteurs on Women 145,096 40,862 (40,420) 114,691 (114,249) 30,847 25,158 5,689 USDS Special Rapporteurs on Women 71,200 70,926 (70,926) 274 274 Spain Streng. Capacities Protection and Promotion CIDH 39,575 46,550 (81,375) (34,826) 4,749 4,749 Denmark Strength Access Just America 292,222 6,664 149,748 (143,084) 149,138 47,725 101,413 CIDA Strength. Prot/Prom Capacities of the IACHR/IIHR 25,948 935,290 (285,717) 4,774 471,088 183,258 209,207 46,355 162,852 HRUCS Strengthen Protection Promotion Caribbean 21,569 21,569 21,569 Italy Strengthen Protection Promotion Caribbean 10,013 5,098 (5,098) 4,916 3,806 1,110 Luxembourg Strengthen Protection Promotion Caribbean 8,224 8,043 (8,043) 180 180 MCTF Strengthen Protection Promotion Caribbean 5,248 5,248 (5,248) EEC Strengthening Access to Justice in the Americas 640 (640) (640) Luxembourg Strengthening Access to Justice in the Americas 33,330 29,196 (29,196) 4,134 4,134 Italy Strengthening the System of IACHR's Case 314 314 314 SAIC Strengthening the System of IACHR's Case (1,312) (1,312) (1,312) USDS Supp Inter Reg African Union (LoC) (13,614) 105,268 99,193 6,075 (7,539) (7,539) 78

GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Section II - Chapter 4 Organization of American States Specific Funds Statement of Changes in Fund Balance (Detail by Subprogram) From January 1, 2010 to December 31, 2010 (in USD) SCHEDULE 7B A B C D E F G=B+C+D+E F H=A+G I J=H I Organization, Donor & Project Cash Balance Jan. 1, 2010 Contributions Transfers Interest Returns & Other Income Expenditures Net Change Cash Balance Dec. 31, 2010 Obligations Fund Balance Dec. 31, 2010 Ireland Support to ICHR Colombia 56,944 (11,865) 30,199 (42,064) 14,880 14,880 Italy Support to ICHR Colombia 693 693 693 USDS Unit for Human Rights Defenders 42,737 (33,700) 8,913 (42,613) 124 124 IADB Violence Prevention 5,686 5,000 (5,000) 686 686 SCS Violence Prevention 691 253 253 944 944 Unicef Violence Prevention 23,893 (1,211) 22,682 (23,893) TOTAL 3,601,623 2,476,630 1,155,864 34,105 (300,224) 4,357,002 (990,627) 2,610,997 466,407 2,144,590 The Secretariat of the OAS Administrative Tribunal (TRIBAD) (32C) IICA Administrative Tribunal Sessions 15,353 24,050 17,566 6,484 21,837 20,007 1,830 The Office of the Inspector General (32D) IACD Audit and Investigation Projects 1,736 1,736 1,736 The Permanent Secretariat of the Inter American Committee of Women (CIM) (32I) Venezuela 2nd Conference of MESECVI 26,165 8,995 (8,995) 17,171 2,586 14,584 SAIC Desarr Capac Liderazgo 385,000 271,994 113,006 113,006 51,734 61,272 CIDA Dev Online Course Gender Ana 36,459 17,817 1,657 16,160 52,619 52,619 CIDA Devel gender indic projects 22,675 (17,005) 527 (17,532) 5,143 5,143 CIDA Devel Online Info Systems 18,300 6,820 138 18,772 (11,814) 6,486 6,486 Argentina Follow Up Convention MESECVI 5,000 3,500 (3,500) 1,500 1,500 Trin.&Tob Follow up Convention Belem do Para 15,000 15,000 15,000 30,000 30,000 CIDA Gender Mainst. Monitor Prog 26,918 26,304 614 614 614 Spain HIV / Women Violence Central America 63,552 16,348 (16,348) 47,204 8,400 38,804 CIDA Mech Inter Minist Coop Labor 106,657 14,796 91,861 91,861 91,861 China Meet. Exp. Follow up Mech. Conv. Belem do Para 30,000 3,600 26,400 26,400 9,000 17,400 Mexico Meet. Exp. Follow up Mech. Conv. Belem do Para 191,592 25,478 61,880 (36,402) 155,190 17,000 138,190 Brazil Meeting of Experts: Convention of Belém do Pará 1,688 1,688 1,688 United Nations Meetings of CIM Feb 2010 12,098 12,098 Argentina Mtg of Experts on Follow up Conv. Belem do Para 2,730 2,730 2,730 CIDA Reuniones Ministeriales 84,796 8 45,394 39,410 39,410 36,000 3,410 Chile Thirty Fourth Assembly CIM 23,231 23,231 23,231 CIDA Train Ministries Labor & Other 141,900 124,037 17,863 17,863 6,576 11,287 CIDA Training OAS Spec Gender Prog 40,480 12,843 29,794 (16,951) 23,529 16,794 6,735 USDS Travel SuppXXXV CIM Ass 14,000 13,681 319 319 329 (10) China Violence and HIV/AIDS Project 26,400 15,736 (15,736) 10,664 10,664 France Violence and HIV/AIDS Project 1,420 215 215 1,635 1,635 Korea Violence and HIV/AIDS Project 11,439 6,070 (6,070) 5,369 4,980 389 China Web Follow up MESECVI 13,200 13,200 (13,200) Spain Women's Political Participation 70,048 43,666 (9,552) 55,065 (20,950) 49,098 8,743 40,355 TOTAL 569,379 82,576 823,413 (9,191) 743,445 153,353 722,732 179,293 543,439 The Secretariat of the Inter American Telecommunication Commission (CITEL) (32K) Various CITEL Special Activities 9,531 (3,428) 2,445 (5,873) 3,657 3,657 Costa Rica CITEL ICE Project 2 977,528 (977,528) (977,528) Various Permanent Consulate Committee I (TICT) 9,737 129,116 133,208 (4,092) 5,645 93 5,552 Various Permanent Consulate Committee II 56,828 195,192 181,399 13,793 70,621 7,540 63,081 TOTAL 1,053,624 324,307 (980,956) 317,052 (973,701) 79,923 7,633 72,290 The Office of the Director General of the Inter American Children's Institute (IIN) (32M) USDS AECI IA Children's Institute 142,254 (142,254) (142,254) 79

Section II - Chapter 4 GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Organization of American States Specific Funds Statement of Changes in Fund Balance (Detail by Subprogram) From January 1, 2010 to December 31, 2010 (in USD) SCHEDULE 7B A B C D E F G=B+C+D+E F H=A+G I J=H I Organization, Donor & Project Cash Balance Jan. 1, 2010 Contributions Transfers Interest Returns & Other Income Expenditures Net Change Cash Balance Dec. 31, 2010 Obligations Fund Balance Dec. 31, 2010 PLAN Int. Apoyo Celeb XX Cong Nino 2,192 (2,192) (2,192) Uruguay Basic Patrimonial Subfund 76,901 76,901 76,901 Spain Children Human Rights The Americas 78,519 19,069 (19,149) 75,403 (75,483) 3,037 153 2,884 ICBF Children's Rights Videos 2,551 (2,551) (2,551) China China IACI Videogame Project 8,919 8,919 8,919 Argentina Coop Preven Sanc Sus Int 1,222 (1) 1,220 (1,220) 1 1 China Eradication sexual exp. in minors 15,000 1,800 13,200 13,200 13,200 FPI International Plan IIN 10,751 (10,752) (10,752) (1) (1) Dif Nacional Mexico Children's Rights Video 2,415 (2,415) (2,415) OAS GA OAS IDBA 1942 Friendship Fund 4,532 4,532 4,532 SAIC Participation of teens and children 60,932 9,550 51,382 51,382 51,382 Spain Participation of teens and children 32,867 32,367 499 499 499 Azerbaijan PREVENCION PROT RESTI DER 10,000 9,186 814 814 814 IADB Program IA Information on Children 26 26 26 CIDA Promotion of Children Rights 492,184 299,282 6,218 7,596 (14) 549,515 (236,433) 255,750 8,951 246,799 Spain Protection of migrant children's rights 52,361 9,919 42,442 42,442 42,442 SAIC Spain AECI 91 BO/HO (186) (186) (186) Spain Support to OMBUDSMAN 30,953 30,331 622 622 246 376 Canada UNESCO Special Education TOTAL 822,279 324,282 44,428 7,596 (21,356) 719,291 (364,342) 457,937 9,350 448,587 The Secretariat for Legal Affairs (42A) Panama Act Program: Rights of People w/disabilities 06 16 188,951 40,000 (9,410) 178,208 (147,618) 41,333 1,923 39,409 United Nations Conference of International Law 5,817 (817) 2,647 (3,464) 2,353 1,677 676 Netherlands FACILI JUD URBAN NICARAGUA 223,233 615,970 5,802 597,319 24,453 247,686 65,634 182,051 Italy Judicial Facilitator Guatemala 122,381 14,686 107,696 107,696 107,696 Netherlands Judicial Facilitator Guatemala 419,540 29,368 390,172 390,172 3,450 386,722 Sweden Judicial Facilitators 9,966 (6,366) 3,600 (9,966) SAIC Judicial Facilitators Paraguay 317,100 153,330 163,770 163,770 107,597 56,173 Spain Judicial Facilitators Paraguay 74,080 203,009 (44,967) 219,341 (61,298) 12,782 4,985 7,797 Italy Judicial Facilitators Program Paraguay 33,651 33,635 (33,635) 16 16 Costa Rica Ministry of Justice 6,746 (6,746) (6,746) Peru Ministry of Justice 1,369 (1,369) (1,369) SAIC Prog. Inter Amer. Reg. PN&PY 309,600 223,511 86,089 86,089 76,977 9,112 Spain Programs of Judicial Facilitators in Paraguay 168 46,800 (46,852) 163 (214) (46) (46) Spain Social Mediation Center in Ecuador 126,859 20,947 (20,947) 92,894 (92,894) 33,965 2,326 31,639 TOTAL 670,840 1,197,891 888,525 5,802 (128,542) 1,548,702 414,975 1,085,815 264,570 821,245 The Department of International Law (42B) CIDA Advan Stdy Jud Ref Pilot proj 1,442 27,057 5,746 21,311 22,753 500 22,253 CIDA Afro Desc Issues in OAS Polic 28,466 7,147 21,319 21,319 8,680 12,639 SAIC Collaboration Indigenous Population 123,983 86,346 37,637 37,637 31,263 6,374 Spain Collaboration Indigenous Population 108,928 39,446 (23,139) 108,732 (92,426) 16,502 16,502 United Nations Curso. Der. Intnl. Refugiados 6,455 6,455 6,455 CIDA Develp Prop Dissem Proj Exper 7,346 4,184 3,162 3,162 3,162 DIL Drafting Model Interameri Law 41,949 5,000 37,604 (32,604) 9,345 202 9,143 CIDA Est. Framework to Promote Transp. & Public Info. 29,569 53,555 134 48,746 4,943 34,512 3,033 31,479 SAIC Family and Childhood Rights Network 129,660 95,714 33,946 33,946 30,866 3,080 Spain Family and Childhood Rights Network 48,903 57,164 (15,521) 90,151 (48,508) 396 210 186 CIDA Framework Transparency (A2) 11,826 12,547 1,121 14,726 (1,058) 10,768 10,768 CIDA Framework Transparency (A3) 7,507 12,547 1,121 6,473 7,195 14,703 152 14,551 80

GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Section II - Chapter 4 Organization of American States Specific Funds Statement of Changes in Fund Balance (Detail by Subprogram) From January 1, 2010 to December 31, 2010 (in USD) SCHEDULE 7B A B C D E F G=B+C+D+E F H=A+G I J=H I Organization, Donor & Project Cash Balance Jan. 1, 2010 Contributions Transfers Interest Returns & Other Income Expenditures Net Change Cash Balance Dec. 31, 2010 Obligations Fund Balance Dec. 31, 2010 CIDA Impl Coop Agre Proj Disad Indi 66,374 388,143 218,083 170,060 236,434 43,761 192,673 CIDA Indigenous peoples and afrodescendants Issue in OAS (A 5,231 20,740 12,430 8,310 13,541 13,541 CIDA Indigenous peoples and afrodescendants Issue in OAS (A 26,906 54,348 58,934 (4,586) 22,320 22,320 CIDA Indigenous peoples and afrodescendants Issues in OAS P 33,629 59,554 40,430 19,124 52,753 1,388 51,365 CIDA Indigenous peoples and afrodescendants Issues in OAS P 16,464 18,692 856 16,023 3,525 19,990 4,609 15,380 France Indigenous Population 678 (656) 1,765 1,110 1,788 1,788 Germany Indigenous Population 162,710 224,340 3,270 1,399 286,215 (57,206) 105,504 45,896 59,608 Mexico Indigenous Population 4,464 17,829 1,961 15,868 20,332 20,332 Nicaragua Indigenous Population 577 577 577 Spain Indigenous Population 9,005 1,857 (1,857) 7,148 7,148 Chile International Course on Diplomacy 83,660 (83,660) (83,660) Uruguay International Law 126 126 126 CIDA Judicial Reform Access 665 5,711 2,149 3,562 4,226 4,226 Various Legal Publications 7,683 2,567 520 2,047 9,730 9,730 CIDA Prop Prom & Imple Jud Refo Jus 14,692 1,366 13,326 13,326 13,326 TOTAL 674,751 242,168 1,057,995 3,270 (113,357) 1,145,535 44,542 719,293 192,882 526,411 The Department of Legal Cooperation (42C) Bolivia IA Conference International Law (41,847) (41,847) (41,847) Brazil I A Convention Against Corruption (Follow up) 26,632 22,969 (22,969) 3,663 3,698 (35) CA DFAIT I A Convention Against Corruption (Follow up) 289 (289) (289) Canada I A Convention Against Corruption (Follow up) 539 (539) (539) USINL I A Convention Against Corruption (Follow up) 445,522 375,000 59,833 315,167 760,689 10,114 750,575 USDS I A Convention Against Corruption (Workshop) 26,153 4,537 (4,537) 21,616 21,616 USDS Imp. I A Convention Against Corruption (LoC) (25,038) 306,859 309,173 (2,315) (27,352) 31,704 (59,056) USDS International Arbitration Economic & Legal Develop 13 13 13 USDS Legal Cooperation Administrative Account 815 (55) (55) 760 760 CIDA Legal Supp. MESICIC & Org. 3rd Plenary of Experts 159,273 320,133 361,310 (41,178) 118,095 51,512 66,583 Canada REMJA Working Group: Assist. in Criminal Matters 817 (817) (817) Spain Strengthening Access and Effectiveness of Justice 13,449 14,735 (14,735) 4,513 (4,513) 8,935 7,990 945 Spain Support to MESICIC 228,768 38,592 (38,592) 58,425 (58,425) 170,342 95,067 75,275 TOTAL 835,383 681,859 371,760 (53,327) 820,760 179,531 1,014,914 200,086 814,828 The Department of Special Legal Programs (42E) PAHO Consumer Health PAHO/OAS 10,452 7,391 (7,391) 3,061 2,631 430 USAID Protection of vulnerable groups (LoC) 90,756 109,759 (19,003) (19,003) 7,900 (26,903) TOTAL 10,452 90,756 117,150 (26,394) (15,942) 10,531 (26,473) The Secretariat for Multidimensional Security (52A) USINL Multidimensional Security & Political Program 938 618 855 (237) 701 436 265 USAID Stem of Youth Crime CA (LoC) 212,450 228,267 (15,817) (15,817) 80,451 (96,269) TOTAL 938 212,450 618 229,122 (16,054) (15,117) 80,887 (96,004) The Executive Secretariat of the Inter American Drug Abuse Control Commission (CICAD) (52C) USINL (ACCESO) Implementation 55,970 991 (991) 54,980 54,980 USINL Adm. & Technical Support Legal Development 16,100 16,100 16,100 USINL Administrative & Technical Support on EDRU 10,556 8,753 (8,753) 1,803 330 1,473 UK Aerial Spray Mon. Program. in Colombia 31 31 31 USINL Aerial Spray Mon. Program. in Colombia 293,188 800 (800) 292,388 71 292,316 USINL Alternative Development GLEAM 1,973 1,973 1,973 USDA Alternative Development Cacao 41,502 34,041 (34,041) 7,461 7,461 81

Section II - Chapter 4 GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Organization of American States Specific Funds Statement of Changes in Fund Balance (Detail by Subprogram) From January 1, 2010 to December 31, 2010 (in USD) SCHEDULE 7B A B C D E F G=B+C+D+E F H=A+G I J=H I Organization, Donor & Project Cash Balance Jan. 1, 2010 Contributions Transfers Interest Returns & Other Income Expenditures Net Change Cash Balance Dec. 31, 2010 Obligations Fund Balance Dec. 31, 2010 USINL Alternative Development Cacao 103,419 2,770 (2,770) 100,649 51,583 49,066 USINL Alternative Development Caribbean SIGATOKA 5,810 5,810 5,810 USDA Alternative Development Colombia 25,701 25,701 25,701 USINL Alternative Development Colombia 254 254 254 USDA Alternative Development General Support 8,679 3,045 (3,045) 5,634 5,634 USINL Alternative Development General Support 56,444 56,444 56,444 USDA Alternative Development SIGATOKA 44,240 34,389 (34,389) 9,852 8,597 1,255 USINL Alternative Development SIGATOKA 28,659 28,659 28,659 USINL Bolivia GLEAM Alternative Development 57,621 57,621 57,621 USINL Caribbean Online Capacity Building Program 49,537 16,253 (16,253) 33,283 711 32,573 USINL Caribbean Prevention (59) (59) (59) USINL Chemical Control Systems 93,031 30,950 625 50,099 (18,524) 74,507 74,507 CA DFAIT CICAD Undistributed Funds 805,220 805,220 805,220 805,220 USINL CICAD Undistributed Funds 4,404,059 51,588 (1,288,087) (1,236,500) 3,167,559 3,167,559 USINL CICAD/RCMP Law Enforcement 52,968 166 166 53,134 53,134 Spain CICDAT Uniform Stat. Sys. on Drug Supply Control (279) (279) (279) USINL CICDAT Uniform Stat. Sys. on Drug Supply Control 22,070 2,666 (2,666) 19,404 19,404 USINL Colombian Indigenous 305 305 305 Canada Community Policing 674 674 674 SGC Community Policing 15,159 (5,145) (5,145) 10,015 10,015 USINL Control & Interdiction (25) (25) (25) CA DFAIT Control & Interdiction Intelligence 9,982 (7,022) 2,959 Colombia Control & Interdiction Intelligence 654 104 (104) 549 549 USINL Control & Interdiction Intelligence 65,564 101,109 1,700 108,793 (5,985) 59,580 348 59,232 CA DFAIT Cost of Substance Abuse (10,963) 36,031 (1,025) (14,306) 6,316 14,384 3,421 3,421 Canada Cost of Substance Abuse 7,518 (7,518) (7,518) USINL Cost of Substance Abuse 15,646 2,594 13,989 (11,396) 4,250 4,250 Various Cost of Substance Abuse 33 32 (32) CA DFAIT Customs/Maritime Cooperation 3,000 (3,000) (3,000) Canada Customs/Maritime Cooperation 708 708 708 France Customs/Maritime Cooperation 1,288 1,388 (1,388) (100) (100) USDS Customs/Maritime Cooperation 295 317 (317) (22) (22) USINL Customs/Maritime Cooperation 65,369 191,280 89,886 101,394 166,763 3,050 163,713 SAIC Decentralization of Drug Policies 101,705 (6) 4,082 (4,088) 97,617 3,560 94,057 USINL Decentralization of Drug Policies 13,625 13,625 13,625 USINL Demand for Treatment 22 22 22 USINL Demand Reduction Horizontal Cooperation 410 410 39 371 CA DFAIT Demand Reduction Expert Group 34,252 (34,252) USINL Demand Reduction Expert Group 4,775 26,930 15,742 11,188 15,963 12,568 3,395 IADB Dev. Financial Intelligence Unit in South America 17,065 1,465 (1,465) 15,600 15,600 USINL Dev. Financial Intelligence Unit in South America 66,233 50,343 1,977 (7,555) 52,978 (8,213) 58,021 58,021 France Developing National Observatories Caribbean 2,539 2,539 2,539 USINL Drug Demand Reduction 1,083,440 1,000,000 35,000 451,139 583,861 1,667,301 276,600 1,390,700 SGC Drug Related Gang and Violence 43,558 43,558 43,558 CA DFAIT Dvlp. Life Skills & Subs.Prev.Youth & Community 24,936 (17,430) 7,506 USINL Dvlp. Life Skills & Subs.Prev.Youth & Community 433,316 180,000 24,752 85,436 119,316 552,632 90,772 461,860 USINL Ecuador Alternative Development Frontier. 750 750 750 EEC EEC Online Information Management (2,570) (2,570) (2,570) Various EEC IADIS IA Drug Informational System (1,026) (1,026) (1,026) Various Executive Secretariat Tech. / Admin. Support 38,054 38,054 38,054 USINL Fellowships / Training (242) (242) (242) 82

GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Section II - Chapter 4 Organization of American States Specific Funds Statement of Changes in Fund Balance (Detail by Subprogram) From January 1, 2010 to December 31, 2010 (in USD) SCHEDULE 7B A B C D E F G=B+C+D+E F H=A+G I J=H I Organization, Donor & Project Cash Balance Jan. 1, 2010 Contributions Transfers Interest Returns & Other Income Expenditures Net Change Cash Balance Dec. 31, 2010 Obligations Fund Balance Dec. 31, 2010 USDA Field Research Site Tarapoto 53,816 33,502 (33,502) 20,313 20,313 USINL Field Research Site Tarapoto 5,476 5,476 5,476 USINL Firearms Model Regulation 67,529 67,529 67,529 Argentina Forfeited Assets Latin America 1,083 1,083 1,083 USINL Forfeited Assets Latin America 236,259 420,000 80,551 189,855 310,696 546,955 29,443 517,512 CA DFAIT General Fund 27,611 59,829 (16,411) 65,781 (22,363) 5,248 5,248 Canada General Fund 16,085 (16,085) (16,085) Chile General Fund 41,700 15,000 (15,000) 1,650 (1,650) 40,050 4,000 36,050 Dom. Repub. General Fund 19,000 (8,295) (8,295) 10,705 10,705 France General Fund 106,192 51,808 (35,360) 26,258 (9,810) 96,382 7,717 88,664 Greece General Fund 35,200 (24,900) (24,900) 10,300 10,300 Mexico General Fund 170,319 85,000 (6,705) 47,925 30,370 200,689 10,322 190,367 SGC General Fund 1,408 (1,408) (1,408) Suriname General Fund 15,000 15,000 15,000 Trin.&Tob General Fund 20,000 20,000 20,000 Turkey General Fund 4,000 4,000 (4,000) Uruguay General Fund 4,985 4,985 4,985 USINL General Fund 155,276 58,260 (58,260) 97,016 24,979 72,037 Various General Fund 7,494 12 (12) 7,482 7,482 CAIXA Improve Drug Treatment Rehab & Harm 6,325 696 5,629 5,629 5,629 EEC Improve Drug Treatment Rehab & Harm 452,969 5,216 542,289 (537,073) (84,104) 55,875 (139,979) USINL Improve Drug Treatment Rehab & Harm 35,000 30,185 4,815 4,815 975 3,839 Canada Institute Building National 41 41 41 USINL Institute Building National 747 747 747 Canada Integrating Health & Enforcement 4,620 (4,620) (4,620) USINL Inter American Legislative Integration 85 85 85 USINL Law Enforcement Training on Money Laundering 60,317 49,185 (2,927) 8,355 5,410 49,202 109,519 109,519 USINL Leadership Conference 2002 32,936 (32,936) (32,936) France LEDA 35,360 7,000 28,360 28,360 28,360 Greece LEDA 14,900 14,900 14,900 14,900 USINL LEDA 51,740 7,000 44,740 44,740 21,050 23,690 USINL Legal Development & Judicial Coop. CEDEJU 130 130 130 USINL Master Degree On Line 12,134 12,134 12,134 USINL Master Degree On Line Compensation 2,314 2,314 2,314 Various Master Degree On Line Compensation 17,344 17,344 1,365 15,979 USINL Mechanism Against Organized Crime 359 359 359 Bahamas MEM Drafting of Hemispheric Evaluation Reports 5,000 5,000 (5,000) Brazil MEM Drafting of Hemispheric Evaluation Reports 4,442 2,845 (2,845) 1,597 97 1,500 CA DFAIT MEM Drafting of Hemispheric Evaluation Reports 444,678 30,383 4,195 (30,421) 353,274 95,561 95,561 95,561 Canada MEM Drafting of Hemispheric Evaluation Reports 15,653 (64) (64) 15,590 15,590 Mexico MEM Drafting of Hemispheric Evaluation Reports 41,005 45,000 52,626 (7,626) 33,378 20,989 12,389 SGC MEM Drafting of Hemispheric Evaluation Reports 2,376 (1,942) (1,942) 435 435 Trin.&Tob MEM Drafting of Hemispheric Evaluation Reports 10,000 10,000 10,000 10,000 USINL MEM Drafting of Hemispheric Evaluation Reports 149,720 454,495 30,421 382,034 102,882 252,603 124,692 127,911 Various MEM Drafting of Hemispheric Evaluation Reports 335 335 (335) USINL MEM Assistance Demand Reduction 167,591 (60,000) (60,000) 107,591 107,591 USINL MEM Recommendation Projects 41,655 41,655 41,655 USINL Mex. Train & Cert. Drug Treat 1,590,613 1,010,118 418,278 591,840 2,182,452 236,391 1,946,061 CA DFAIT Minimum Standards of Care 14,996 7,206 1,216 7,925 497 15,494 15,494 USINL Minimum Standards of Care 15,189 94,346 2,129 92,217 107,406 107,406 USINL Money Laundering 21,209 62,500 58,513 3,987 25,196 20,295 4,901 83

Section II - Chapter 4 GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Organization of American States Specific Funds Statement of Changes in Fund Balance (Detail by Subprogram) From January 1, 2010 to December 31, 2010 (in USD) SCHEDULE 7B A B C D E F G=B+C+D+E F H=A+G I J=H I Organization, Donor & Project Cash Balance Jan. 1, 2010 Contributions Transfers Interest Returns & Other Income Expenditures Net Change Cash Balance Dec. 31, 2010 Obligations Fund Balance Dec. 31, 2010 Canada Money Laundering Training Judicial 25,001 25,001 25,001 Chile Money Laundering Training Judicial 1,160 1,160 (1,160) IADB Money Laundering Training Judicial 10,331 10,331 10,331 Mexico Money Laundering Training Judicial 744 744 (744) USINL Money Laundering Training Judicial 147,991 212,481 22,987 7,555 251,365 (8,342) 139,650 101 139,549 CA DFAIT Money Laundering Experts Group 20,000 15,330 (15,949) 19,381 (20,000) France Money Laundering Experts Group 684 14 (14) 670 40 630 Mexico Money Laundering Experts Group 1,172 5,127 3,289 1,838 3,010 3,010 USINL Money Laundering Experts Group 27,077 47,500 10,822 56,973 1,349 28,426 5,120 23,306 USINL Nursing School Training (1,741) (1,741) (1,741) Canada Observatory Technical & Administrative Support 2,469 (1,607) (1,607) 862 862 Trin.&Tob Observatory Technical & Administrative Support 5,000 5,000 5,000 5,000 USINL Observatory Technical & Administrative Support 31,552 54,000 15,101 38,899 70,451 32,399 38,051 Chile Ordinary Session Period 4,411 4,412 (4,412) (1) (1) France Ordinary Session Period 11,752 5,373 (5,373) 6,380 6,380 Mexico Ordinary Session Period 10,284 5,182 (5,182) 5,102 5,102 USINL Ordinary Session Period 22,249 32,936 63 36,523 (3,524) 18,725 3,920 14,805 CA DFAIT Organized Crime / Supply Reduction (21,406) 175,315 (15,168) 75,822 84,325 62,919 523 62,396 Canada Organized Crime / Supply Reduction 8,181 (8,181) (8,181) CANME Organized Crime / Supply Reduction 15,900 (15,900) (15,900) SGC Organized Crime / Supply Reduction 2,360 (2,360) (2,360) USINL Organized Crime / Supply Reduction 93,403 (4,730) 34,146 42,001 (12,585) 80,818 181 80,637 USINL Pharmaceutical /Experts Group 147,448 23,082 (23,082) 124,366 124,366 Peru Prg. cntrl. lavado actvs. PERU 43,486 (4,559) (4,559) 38,927 38,927 Mexico Program to Strengthen Drug Research 15,000 15,000 13,396 1,604 NIDA Program to Strengthen Drug Research 13,894 20,000 10,590 9,410 23,303 23,303 USINL Program to Strengthen Drug Research 22,470 11,712 14,050 (2,338) 20,132 20,132 USINL Regional On line Special Program 16,267 (16,267) (16,267) USINL RETCOD/Precursores 7,056 7,056 7,056 SAIC SAVIA DRUGS Health and Life America 149,537 485,142 (137) 241,450 243,555 393,092 43,015 350,077 USINL School of Education in Latin America 29,267 66,730 60,565 6,165 35,432 35,432 Chile School of Public Health Latin America 5,000 5,000 Dom. Repub. School of Public Health Latin America 8,295 8,295 Greece School of Public Health Latin America 10,000 10,000 Mexico School of Public Health Latin America 6,705 6,705 PAHO School of Public Health Latin America 6,051 6,051 6,051 USINL School of Public Health Latin America 32,607 10,000 27,607 (17,607) 15,000 15,000 CA DFAIT Schools of Medicine in Latin A 15,000 15,000 USINL Schools of Medicine in Latin A 34,088 59,708 57,437 2,271 36,359 36,359 Chile Schools of Nursing Latin America 10,000 9,636 364 364 364 USINL Schools of Nursing Latin America 16,172 16,854 61,414 60 66,526 11,802 27,974 7,022 20,952 USINL SENASA Vitarte Alternative Development 1,738 1,738 1,738 CA DFAIT SIDUC Caribbean (2,247) 107,735 9,658 (32,465) 64,073 20,855 18,609 2,500 16,109 Suriname SIDUC Caribbean 10,000 10,000 10,000 Trin.&Tob SIDUC Caribbean 25,000 10,707 (10,707) 14,293 14,293 USINL SIDUC Caribbean 70,302 33,488 77,501 (44,013) 26,289 4,655 21,634 USINL SIDUC MEM Recommendations 88,306 175 88,685 (88,511) (204) (204) ADC SIDUC IA Uniform Drug Use Data System 85,403 81,296 (81,296) 4,107 26 4,081 USINL SIDUC IA Uniform Drug Use Data System 64,485 62,719 (62,719) 1,766 946 820 SAIC Strengthening of CND in Andean Countries 12,182 12,182 12,182 CA DFAIT Strengthening of Natural Drug Commission 73,587 8,095 65,493 65,493 65,493 84

GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Section II - Chapter 4 Organization of American States Specific Funds Statement of Changes in Fund Balance (Detail by Subprogram) From January 1, 2010 to December 31, 2010 (in USD) SCHEDULE 7B A B C D E F G=B+C+D+E F H=A+G I J=H I Organization, Donor & Project Cash Balance Jan. 1, 2010 Contributions Transfers Interest Returns & Other Income Expenditures Net Change Cash Balance Dec. 31, 2010 Obligations Fund Balance Dec. 31, 2010 Trin.&Tob Strengthening of Natural Drug Commission 5,000 5,000 5,000 5,000 USINL Strengthening of Natural Drug Commission 91,495 80,000 159 100,084 (19,925) 71,570 28,757 42,813 USINL Support To Drug Consult Groups 985 980 (980) 5 5 USINL Support to Peruvian Cacao Strategy 115,661 115,661 115,661 CA DFAIT Synthetic Drugs (63,276) 117,000 (32,000) 18,905 66,095 2,819 2,819 USINL Synthetic Drugs 37,266 5,695 (5,695) 31,570 31,570 CA DFAIT Technical & Admin. Support for Chemicals Control 68,165 (24,603) 42,513 (67,116) 1,049 1,049 Canada Technical & Admin. Support for Chemicals Control 904 (904) (904) USINL Technical & Admin. Support for Chemicals Control 190,754 1,376 128,863 (127,487) 63,267 41,453 21,814 USINL Technical Administrative Support 2,612 128 1,817 (1,689) 923 923 USINL Terrorism Financing 92,023 70,000 109,542 (39,542) 52,481 8,699 43,783 CA DFAIT Training National Drug Commission CICAD 44,429 41,632 2,797 2,797 2,797 USINL Training National Drug Commission CICAD 7,494 91,680 42,757 48,923 56,417 56,417 USINL Training Police Rule of Law 122,470 (96,609) 25,861 (122,470) USINL Transnational Digital Government 745 745 745 SGC Treatment Training 1,408 (1,408) (1,408) USINL Treatment Training 25,698 25,698 396 25,302 CA DFAIT University Grad. Res. Part. Program 10,196 297,136 (5,520) (1,306) 120,404 169,906 180,102 145,408 34,694 Canada University Grad. Res. Part. Program 11,830 11,830 11,830 USINL University Grad. Res. Part. Program 152,294 1,306 39,562 (38,256) 114,038 8,839 105,199 USINL Values & Population High Risk 408,868 (309,346) 8,640 (317,986) 90,882 2,000 88,882 Canada Women and Drug Abuse (119) (119) (119) USINL Workshop on Money Laundering 16,450 16,450 16,450 TOTAL 13,576,573 5,876,509 (99,855) 9,411 47,496 5,452,338 381,222 13,957,795 1,371,417 12,586,378 The Secretariat of the Inter American Committee Against Terrorism (52D) USDS Airport Security Program 8,306 8,306 8,306 Chile Aviation Security 2,172 2,172 2,172 Colombia Aviation Security 534 122 (122) 412 412 Spain Aviation Security 158,007 26,720 (26,720) 66,427 (66,427) 91,581 18,122 73,459 USDS Aviation Security (LoC) 397,393 226,455 3,195 370,625 (140,974) 256,419 36,483 219,936 USINL Aviation Security 6,715 449,899 250,000 157,574 542,325 549,039 30,488 518,551 CA DFAIT Bio Terrorism 199,429 329,777 35,000 (33,256) 343,321 (11,799) 187,629 187,629 USDS Bio Terrorism (LoC) (742) 8,181 8,921 (740) (1,481) (1,481) USINL Bio Terrorism 109,888 12,643 97,245 97,245 555 96,690 Argentina CICTE Unprogrammed Funds 5,000 5,000 5,000 10,000 10,000 Mexico CICTE Unprogrammed Funds 89,000 (10,000) (10,000) 79,000 79,000 Panama CICTE Unprogrammed Funds 10,000 10,000 10,000 20,000 20,000 Spain CICTE Unprogrammed Funds 5,229 (5,229) USINL CICTE Unprogrammed Funds 200,000 22,000 178,000 178,000 178,000 CA DFAIT Customs and Immigration 226,183 14,129 136,968 103,344 103,344 30,574 72,770 USINL Customs and Immigration 41,014 4,511 36,502 36,502 36,502 CA DFAIT Cyber Security 27,145 361,096 3,454 270,640 93,910 121,055 13,213 107,842 Chile Cyber Security 8,000 5,578 2,422 2,422 202 2,220 France Cyber Security 773 773 773 Spain Cyber Security 31,385 22,935 (22,935) 28,674 (28,674) 2,711 675 2,036 USDS Cyber Security (LoC) (779) 8,534 77,938 (69,404) (70,183) 24,663 (94,846) CA DFAIT Legislative Assistance & Terrorism Financing 50,715 319 50,007 (49,688) 1,027 1,027 Spain Legislative Assistance & Terrorism Financing 22,293 3,943 (3,943) 13,833 (13,833) 8,460 112 8,348 Turkey Legislative Assistance & Terrorism Financing 40,000 12,651 27,349 27,349 27,349 United Nations Legislative Assistance & Terrorism Financing 395 395 85

Section II - Chapter 4 GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Organization of American States Specific Funds Statement of Changes in Fund Balance (Detail by Subprogram) From January 1, 2010 to December 31, 2010 (in USD) SCHEDULE 7B A B C D E F G=B+C+D+E F H=A+G I J=H I Organization, Donor & Project Cash Balance Jan. 1, 2010 Contributions Transfers Interest Returns & Other Income Expenditures Net Change Cash Balance Dec. 31, 2010 Obligations Fund Balance Dec. 31, 2010 USDS Legislative Assistance & Terrorism Financing (LoC) (14,884) 114,334 4,702 88,267 30,769 15,885 393 15,492 USINL Legislative Assistance & Terrorism Financing 50,101 5,511 44,590 44,590 44,590 Bahamas Partnerships and International Cooperation 3,000 3,000 3,000 Chile Partnerships and International Cooperation 33,639 15,000 (8,000) 5,632 1,368 35,007 25 34,982 France Partnerships and International Cooperation 933 933 (933) Mexico Partnerships and International Cooperation 10,000 10,000 10,000 10,000 Spain Partnerships and International Cooperation 18,812 2,045 (2,045) 6,545 (6,545) 12,267 2,002 10,266 Trin.&Tob Partnerships and International Cooperation 52,787 (45,000) 2,776 (47,776) 5,010 5,010 USDS Partnerships and International Cooperation (LoC) (2,086) 74,813 (24,953) 33,376 103,421 (20,185) (22,271) 55,765 (78,037) CA DFAIT Port Security 712,488 1,484,506 (35,000) 1,169,258 280,249 992,737 29,603 963,133 Spain Port Security 60,000 8,182 (8,182) 49,691 (49,691) 10,309 432 9,877 Turkey Port Security 337 330 (330) 7 7 USDS Port Security (LoC) (35,365) 145,827 25,000 60 193,567 (22,680) (58,045) 400,000 (458,045) USINL Port Security 1,538,017 292,938 (250,000) 122,255 (79,317) 1,458,700 182,000 1,276,700 CA DFAIT Security of Travel Documents 112,803 109,559 (109,559) 3,244 3,244 United Nations Security of Travel Documents 3,000 (2,640) 360 USDS Security of Travel Documents (LoC) 221,431 81,161 (3,243) 2,692 203,962 (123,352) 98,079 22,190 75,889 USINL Security of Travel Documents 59,957 48,186 (48,186) 11,771 3,064 8,707 CA DFAIT Tourism Security 407,030 620 40 224,399 183,291 183,291 122,660 60,631 CA DFAIT Tourism Security 580,300 (14,129) 474 304,003 262,643 262,643 36,114 226,529 Mexico Tourism Security 9,595 25,671 25,671 35,265 190 35,075 Spain Tourism Security 43,660 9,545 16,795 9,714 16,627 60,286 60 60,227 Trin.&Tob Tourism Security 8,585 40,000 45,000 (52,011) 3,958 29,030 37,615 442 37,173 USDS Tourism Security (LoC) (45,443) 49,892 3,012 46,880 1,437 1,437 USINL Tourism Security 288 2 2 290 2 288 TOTAL 3,785,901 5,354,930 78,599 1,094 (69,456) 4,238,168 1,126,999 4,912,900 1,012,492 3,900,408 The Department of Public Security (52E) Italy AICMA Mine Victim Assistance Program 98,789 45,217 131 102,425 (57,078) 41,711 5,676 36,036 Norway AICMA Mine Victim Assistance Program 30,110 283 29,489 (29,206) 905 905 Spain AICMA Mine Victim Assistance Program 190,012 149,703 40,308 40,308 20,416 19,893 USDS AICMA Mine Victim Assistance Program (LoC) (1,443) 8,382 6,940 1,443 CA DFAIT AICMA/Mine Action Program Colombia 195,064 375,484 3,083 1,834 491,053 (110,652) 84,412 8,819 75,593 Italy AICMA/Mine Action Program Colombia 54,443 262 36,194 (35,932) 18,510 6 18,505 Spain AICMA/Mine Action Program Colombia 8,021 502,285 (65,960) 275,946 160,378 168,399 62,577 105,822 USDS AICMA/Mine Action Program Colombia (LoC) (102,483) 1,209,507 (451) 10,959 1,212,241 7,775 (94,708) 128,731 (223,439) EEC AICMA Demining Ecuador/Perú Cordillera Condor (44,413) 6,640 (6,640) (51,053) 477 (51,530) USDS Central America Munitions Stockpile Destruction 757 (757) (757) CIDA Coordination MISPA 52,225 54,475 39,503 14,972 67,197 34,897 32,300 Spain Crime, public security and democracy 70,246 8,430 61,817 61,817 61,817 CA DFAIT Demining Assistance Prog. CA Nicaragua FO4 1,074 1,074 1,074 Netherlands Demining Assistance Prog. CA Nicaragua FO4 64,570 (16,293) 48,277 (64,570) Norway Demining Assistance Prog. CA Nicaragua FO4 141,400 371,454 251 261,338 110,367 251,767 1,513 250,253 Spain Demining Assistance Prog. CA Nicaragua FO4 19,227 153,638 (137,227) 35,626 (19,215) 12 12 USDS Demining Assistance Prog. CA Nicaragua FO5 9,487 9,487 9,487 Belgium Demining Assistance Prog. EC/PE RG ECUAD (27) 61,946 (11,130) 50,789 27 Italy Demining Assistance Prog. EC/PE RG ECUAD 2,123 67,156 5,116 43,973 28,299 30,423 272 30,151 Norway Demining Assistance Prog. EC/PE RG ECUAD 172,781 501,520 355 50 317,936 183,988 356,769 123 356,647 Spain Demining Assistance Prog. EC/PE RG ECUAD 14,153 365,438 (48,261) 281,198 35,979 50,131 41,202 8,929 USDS Demining Assistance Prog. EC/PE RG ECUAD (LoC) 1,710 55,550 55,550 1,710 449,450 (447,740) Belgium Demining Assistance Prog. EC/PE RG PERU 61,946 (4,950) 56,995 86

GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Section II - Chapter 4 Organization of American States Specific Funds Statement of Changes in Fund Balance (Detail by Subprogram) From January 1, 2010 to December 31, 2010 (in USD) SCHEDULE 7B A B C D E F G=B+C+D+E F H=A+G I J=H I Organization, Donor & Project Cash Balance Jan. 1, 2010 Contributions Transfers Interest Returns & Other Income Expenditures Net Change Cash Balance Dec. 31, 2010 Obligations Fund Balance Dec. 31, 2010 Italy Demining Assistance Prog. EC/PE RG PERU 28,339 3,500 30,948 (27,448) 891 883 8 Spain Demining Assistance Prog. EC/PE RG PERU 34,165 5,042 (3,591) 35,616 (34,165) USDS Demining Assistance Prog. EC/PE RG PERU 83,128 (1,000) (1,000) 82,128 82,128 Norway Demining Assistance Program CA Guatemala 2,039 2,039 2,039 Various Demining in Central America 66 (66) (66) 61 (127) CA DFAIT DPS Unprogrammed Funds 787,235 787,235 787,235 787,235 USINL Firearms & Ammunition Control 500,000 157,102 342,898 342,898 45,147 297,751 USDS Firearms Marking (LoC) (36,024) 256,513 275,820 (19,307) (55,331) 202,934 (258,266) Mexico Fund SALWS 11,100 1,221 9,879 9,879 9,879 USINL HNP Technical Advisor 6,964 6,964 6,964 PAHO I A Coal Prevention of Violence Tech Support 3,365 2,000 (2,000) 1,365 1,365 USDS Inst. Foreign Affairs TIP (LoC) 8,782 17,086 4 25,868 (8,778) 4 4 OSI DF Legis. Public Security Model 91,740 83,950 (83,950) 7,790 3,865 3,925 Canada Meeting Civil Society on TIP 2,453 (2,453) USDS Mine Action Program Chile (LoC) 23 23 23 CA DFAIT Mine Action Program/Munitions Disposal & ERW 1,925 (515) (515) 1,410 1,410 Italy Mine Action Program/Munitions Disposal & ERW 53 53 (53) Spain Mine Action Program/Munitions Disposal & ERW 358,400 305,891 52,509 52,509 25,384 27,125 USDS Mine Action Program/Munitions Disposal & ERW (LoC) 26,143 31,352 (5,210) (5,210) 23,320 (28,530) CA DFAIT Nat'l Public Obser Caribbean 143,336 1,675 106,647 38,364 38,364 45,896 (7,532) Spain OHVC Hemispheric Observatory 84,629 93,217 (20,391) 129,040 (56,214) 28,415 25,852 2,563 CA DFAIT Prosecutors, Pol. & Invest. Organized Crime Sem. 1,739 1,739 1,739 USDS Public Hemispheric Security Documents 16,818 2,915 (2,915) 13,903 13,903 CA DFAIT Security in the Americas Phase II (76) 67 67 (9) (9) USDS Stockpile Management. Destruction (LoC) (49,968) 738,183 799,225 (61,043) (111,010) 62,156 (173,166) CIDA Strength. Capacity to Combat Trafficking in Persons 30,428 92,920 92,468 452 30,880 730 30,150 Colombia Sub Regional Trafficking Persons 3,067 2,843 3,421 (578) 2,489 2,489 Greece Tech. Support Gangs Section, Criminal Activities 67 (67) (67) Mexico Technical Support (WHIT) 474 474 474 USDS Technical Support (WHIT) (LoC) (5,863) 5,863 5,863 CIDA TIP Final Report 22,956 2,135 20,821 20,821 20,821 CIDA TIP Mtgs w/govt Officials 18,140 2,956 5,182 (2,226) 15,914 15 15,899 CIDA TIP Training Law Enforc Off 262,455 42,357 299 253,969 (211,313) 51,142 24,680 26,462 CIDA TIP Str.Cap.Law.Enf. Tool Kits 70,222 22,680 37,042 (14,362) 55,860 55,860 CA DFAIT Training Peacekeeping Per. 9,172 (9,172) (9,172) TOTAL 1,383,373 5,234,974 1,984,997 5,364 (294,148) 5,892,176 1,039,011 2,422,384 1,215,094 1,207,290 The Secretariat for Political Affairs (62A) Spain Agen Publ Refl Cris Lat Am 6,086 (6,086) Spain Democracy Status in Latin America & Proposals 36 (36) (36) CIDA Democratic Agenda Report 2,750 (3,393) 643 (2,750) ADC Frtlcmnto. Inst. Democ. 137,951 108,022 (33,407) 160,572 (85,957) 51,993 4,932 47,061 USDS High Level Commission Honduras 35,500 15,141 20,359 20,359 351 20,008 USDS Political Database of the Americas 26,033 26,033 Spain Public Agenda Reflexion Latin America 4,468 32,051 (36,518) (4,468) CIDA Seed funding for Truth Commission Honduras 32,865 7 29,906 2,966 2,966 54 2,912 USDS Seed funding for Truth Commission Honduras 514,014 421,777 92,237 92,237 18,775 73,461 Ecuador Sup. Sel. Procs. CCPSC ECUADOR 21,429 18,227 3,202 3,202 1,278 1,923 Spain Support for the Honduran Truth Commission 15,172 15,172 15,172 15,172 USDS Support for the Honduran Truth Commission (LoC) 799,332 (799,332) (799,332) 3,513 (802,845) USDS Verification Commission Honduras 169,882 (64,014) 558 86,000 (149,456) 20,426 8,581 11,845 TOTAL 315,086 108,022 582,299 (41,397) 1,556,988 (908,064) (592,978) 52,656 (645,634) 87

Section II - Chapter 4 GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Organization of American States Specific Funds Statement of Changes in Fund Balance (Detail by Subprogram) From January 1, 2010 to December 31, 2010 (in USD) SCHEDULE 7B A B C D E F G=B+C+D+E F H=A+G I J=H I Organization, Donor & Project Cash Balance Jan. 1, 2010 Contributions Transfers Interest Returns & Other Income Expenditures Net Change Cash Balance Dec. 31, 2010 Obligations Fund Balance Dec. 31, 2010 The Department of Electoral Cooperation and Observation (62B) Various 6th Inter Ameri Mtg of EMB 13,033 (4,936) 8,097 (13,033) USDS Access Justice Related Dem. Governance (LoC) 1,283 (1,283) (1,283) CIDA Acomp. impl. prog. voto elctr. 117,660 39,000 39,000 156,660 149,400 7,260 CIDA Costa Rica: Supreme Tribunal 113,282 (50,000) 5,500 22,388 (66,888) 46,393 220 46,173 CIDA CTE al Trib.Sup.de Just. Elec. 84,958 83,510 (83,510) 1,448 1,446 2 USDS CTE al Trib.Sup.de Just. Elec. 111,250 111,206 (111,206) 44 44 CIDA Database JUR ELE Américas 44,500 24,565 (24,565) 19,935 76 19,859 CIDA DECO Trips 2,407 46,300 43,250 3,050 5,457 1,599 3,857 USDS Develop. Indicators to Evaluate Elections (LoC) (21,512) 21,512 21,512 Norway Diminishing Voting Abstinence in Guatemala 5,582 5,582 5,582 Sweden Electoral Census Verification Honduras 122,236 2,521 (123,551) 113 (121,143) 1,093 1,093 CIDA Electoral Cooperation Member States 1,846 24,290 26,136 26,136 26,136 Brazil Electoral Observatory Mission Specific Funds 224 (224) (224) Sweden Electoral Program Support 2,867 (2,867) (2,867) USAID Electoral Support Honduras 2005 3,914 3,914 3,914 CIDA Electoral Support to Haiti Elections in 2010 2,500 1,368 (1,368) 1,132 1,132 Chile EOM 1999 Haiti (4,349) (4,349) (4,349) Sweden EOM 2002 Atlantic Coast in Nicaragua 11,829 (11,829) (11,829) CIDA EOM 2002 Ecuador 1,858 1,858 Norway EOM 2008 Bolivia 3,036 (3,036) (3,036) Brazil EOM 2008 Ecuador 250 (250) (250) Peru EOM 2008 Ecuador 97 (97) (97) Spain EOM 2008 Ecuador 14,400 (14,400) Spain EOM 2008 El Salvador 23,976 (23,976) USDS EOM 2008 El Salvador (212) 212 USDS EOM 2008 Honduras 11,437 11,437 11,437 Various EOM 2009 Antigua & Barbuda 620 (460) 159 (620) Brazil EOM 2009 Bolivia 1,350 (1,350) (1,350) Spain EOM 2009 Bolivia 2,369 14,671 (16,756) (2,085) 284 284 USDS EOM 2009 Bolivia 1,239 (1,239) (1,239) Brazil EOM 2009 Bolivia General Elections December 6,230 (165) 6,065 (6,230) Chile EOM 2009 Bolivia General Elections December 7,589 5 7,594 (7,589) China EOM 2009 Bolivia General Elections December 6,969 6,969 (6,969) CIDA EOM 2009 Bolivia General Elections December 50,791 (41,875) 5,638 12,986 (49,222) 1,569 1,569 88

GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Section II - Chapter 4 Organization of American States Specific Funds Statement of Changes in Fund Balance (Detail by Subprogram) From January 1, 2010 to December 31, 2010 (in USD) SCHEDULE 7B A B C D E F G=B+C+D+E F H=A+G I J=H I Organization, Donor & Project Cash Balance Jan. 1, 2010 Contributions Transfers Interest Returns & Other Income Expenditures Net Change Cash Balance Dec. 31, 2010 Obligations Fund Balance Dec. 31, 2010 CIDA EOM 2009 St. Vincent Grenadines Ref. November 8,147 (8,183) 61 25 (8,147) USDS EOM 2009 St. Vincent Grenadines Ref. November 15,703 496 (496) 15,207 841 14,366 USDS EOM 2010 African Union Togo 16,738 16,738 Brazil EOM 2010 Bolivia April 7,024 7,024 CIDA EOM 2010 Bolivia April 111,442 98,742 12,700 12,700 12,651 49 Korea EOM 2010 Bolivia April 4,999 4,999 Spain EOM 2010 Bolivia April 150,000 148,345 1,655 1,655 518 1,137 USAID EOM 2010 Bolivia April (LoC) 44,437 44,437 Venezuela EOM 2010 Bolivia April 13,850 13,850 China EOM 2010 Costa Rica 30,000 30,000 CIDA EOM 2010 Costa Rica 78,961 (10,516) 1,157 69,602 (78,961) Korea EOM 2010 Costa Rica 10,000 (5) 9,995 (10,000) USDS EOM 2010 Costa Rica 148,916 148,915 CIDA EOM 2010 Costa Rica Muniipal 200,000 144,765 55,235 55,235 18,446 36,789 USDS EOM 2010 Costa Rica Muniipal 10,000 3,270 6,730 6,730 6,730 Brazil EOM 2010 Dominican Republic 4,000 106 3,894 3,894 3,894 CIDA EOM 2010 Dominican Republic 78,603 78,251 351 351 351 Spain EOM 2010 Dominican Republic 99,853 99,853 USDS EOM 2010 Dominican Republic 80,000 34,845 45,155 45,155 1,245 43,910 Argentina EOM 2010 Haiti 20,000 11,686 8,314 8,314 8,225 89 Brazil EOM 2010 Haiti 350,000 239,962 110,038 110,038 18,653 91,384 Chile EOM 2010 Haiti 15,000 13,350 1,650 1,650 1,650 CIDA EOM 2010 Haiti 254,024 198,370 55,654 55,654 54,973 681 Finland EOM 2010 Haiti 288,099 233 266,764 21,567 21,567 21,153 414 France EOM 2010 Haiti 407,938 239,316 168,622 168,622 59,579 109,044 Luxembourg EOM 2010 Haiti 4,847 582 4,265 4,265 4,265 Norway EOM 2010 Haiti 335,893 494 146,449 189,937 189,937 40,711 149,227 Peru EOM 2010 Haiti 10,000 6,224 3,776 3,776 1,300 2,476 Spain EOM 2010 Haiti 241,178 239,154 2,024 2,024 1,866 159 Switzerland EOM 2010 Haiti 12,385 7,399 1,486 18,298 18,298 18,298 USAID EOM 2010 Haiti (LoC) 508,203 743,726 (235,522) (235,522) 105,195 (340,718) Brazil EOM 2010 Paraguay 250 250 CIDA EOM 2010 Paraguay 250,000 207,804 42,197 42,197 9,650 32,547 Korea EOM 2010 Paraguay 5,000 4,554 446 446 446 Peru EOM 2010 Paraguay 460 460 USDS EOM 2010 Paraguay 30,000 23,964 6,036 6,036 4,312 1,724 Various EOM 2010 Paraguay 1,890 1,890 CIDA EOM 2010 Peru 225,000 178,661 46,339 46,339 568 45,771 Korea EOM 2010 Peru 20,000 19,945 55 55 55 USDS EOM 2010 Peru 170,000 171,229 (1,229) (1,229) 33 (1,261) CIDA EOM 2010 St. Kitts and Nevis 35,600 (19,482) 2,201 18,324 (35,606) (6) (6) UK EOM 2010 St. Kitts and Nevis 11,248 11,248 USDS EOM 2010 St. Kitts and Nevis 40,000 40,000 CIDA EOM 2010 St. Vincent Grenadines 63,183 42,612 20,571 20,571 5,728 14,844 Brazil EOM 2010 Suriname 3,638 2,432 1,206 1,206 1,206 CIDA EOM 2010 Suriname 50,000 43,145 6,855 6,855 6,855 Korea EOM 2010 Suriname 60,000 40,646 19,354 19,354 175 19,179 USDS EOM 2010 Suriname 39,988 39,988 CIDA EOM Manual (English Ver.) 15,322 10,229 5,093 5,093 5,093 Venezuela EOM Referendum for Expansion 13,850 (13,850) (13,850) CIDA ETA Guatemala 2010 300,000 277,516 22,484 22,484 11,199 11,284 89

Section II - Chapter 4 GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Organization of American States Specific Funds Statement of Changes in Fund Balance (Detail by Subprogram) From January 1, 2010 to December 31, 2010 (in USD) SCHEDULE 7B A B C D E F G=B+C+D+E F H=A+G I J=H I Organization, Donor & Project Cash Balance Jan. 1, 2010 Contributions Transfers Interest Returns & Other Income Expenditures Net Change Cash Balance Dec. 31, 2010 Obligations Fund Balance Dec. 31, 2010 CIDA EVM 2010 Colombia Legislative and Presidential 269,174 (197,608) 6,335 75,276 (266,549) 2,624 2,624 Korea EVM 2010 Colombia Legislative and Presidential 40,000 9,818 42,161 7,657 7,657 63 7,594 Netherlands EVM 2010 Colombia Legislative and Presidential 279,680 770 240,165 40,286 40,286 40,286 Norway EVM 2010 Colombia Legislative and Presidential 8,799 (295) 8,504 Spain EVM 2010 Colombia Legislative and Presidential 200,000 200,000 Sweden EVM 2010 Colombia Legislative and Presidential 416,645 1,214 388,582 29,277 29,277 10,030 19,247 Switzerland EVM 2010 Colombia Legislative and Presidential 15,975 (5,712) 10,263 USDS EVM 2010 Colombia Legislative and Presidential 378,250 347,910 (347,910) 30,340 13,361 16,979 CIDA EVM 2010 Colombia Presidential Runoff Election 15,096 15,091 5 5 5 Mexico EVM 2010 Colombia Presidential Runoff Election 2,771 2,186 585 585 585 Norway EVM 2010 Colombia Presidential Runoff Election 4,995 (2) 4,993 Sweden EVM 2010 Colombia Presidential Runoff Election 278,855 601 182,646 96,810 96,810 2,813 93,997 Switzerland EVM 2010 Colombia Presidential Runoff Election 5,557 (1,687) 3,870 USDS EVM 2010 Colombia Presidential Runoff Election 160,000 124,222 35,778 35,778 34 35,744 CIDA Financial Study Regional Politic 9,989 977 4,500 (3,523) 6,467 6,467 ADC High Level Mission Perú 12,656 (12,656) (12,656) Dom. Repub. Horizontal Cooperation Project 70,520 (70,520) (70,520) CIDA Imp. and Doc. of Sist. ISO Pe & Mx 10,309 192 10,117 10,117 10,117 SAIC Imp. and Doc. of Sist. ISO Pe & Mx 210,000 37,005 172,995 172,995 87,615 85,380 CIDA Imp. Moder. Electoral Systs. 16,499 7,247 10,524 (3,277) 13,222 443 12,779 UK Imp. Moder. Electoral Systs. 7,203 (7,153) 50 (7,203) USDS Imp. Moder. Electoral Systs. 34,536 5,603 24,990 (19,386) 15,150 814 14,336 CIDA Impl. Sis. Ges. Cal. JNE PERU 90,700 135,264 103,364 31,900 122,600 122,600 CIDA Incorp. gender perspective electoral observation 2,963 130,810 1,931 37,156 95,585 98,548 23,249 75,299 Germany Incorp. gender perspective electoral observation 38,352 127,795 (10,096) 83,509 34,189 72,541 26,282 46,259 IDEA Incorp. gender perspective electoral observation 4,055 1,100 2,955 2,955 2,955 SAIC Incorp. gender perspective electoral observation 50,000 6,000 44,000 44,000 44,000 Spain Incorporation of Technologies Electoral Processes 32,538 (18,900) 13,638 (32,538) USDS Inter American Electoral Technology Program PITE 1,647 (1,647) (1,647) USDS Intl. Meeting on Declaration of Principles EOMs 4,530 (4,530) (4,530) CIDA Mejo. Cap. Insti. Aut. Elctls. 300,000 37,027 262,973 262,973 15,300 247,673 IDEA Mejo. Cap. Insti. Aut. Elctls. 83,945 83,945 Spain Mejo. Cap. Insti. Aut. Elctls. 112,181 170,963 (36,736) 240,445 (106,217) 5,964 2,963 3,001 USDS Mejo. Cap. Insti. Aut. Elctls. 14,356 11,906 (663) 24,755 (13,511) 845 58 787 United Nations Metho Mon. Media Elect Proc 96,438 60,000 2,205 10,800 106,779 (33,773) 62,665 17,599 45,066 CIDA OAS Electoral Training in Suriname 32,247 32,247 USDS Sign Ceremony OAS EAC 2,000 (121) 1,879 (2,000) USDS SPA Needs Assessment Mission Haiti 25,000 22,346 2,654 2,654 1,279 1,375 Nicaragua Special Fund for Strengthening Democracy 3,000 (3,000) (3,000) Sweden Special Program. Elect. Tech. Assist. NI 10,997 (10,997) (10,997) CIDA Stand DECO GA Honduras 2,791 (2,791) (2,791) Spain Strengt.Electoral Syst/Proc. in Post Elect Phases 23,884 (23,884) Spain Strength. Institution Program on Electoral Issues 5,499 (5,499) (5,499) USDS Strength. Polit. Transp & Anti Corruption Efforts (LoC) (45,653) 45,653 45,653 Spain Strength. Public Trust in Electoral Processes 11,664 30,742 (33,942) 8,049 (11,249) 415 415 USDS Strengthening Democracy in Cuba 50,000 50,000 50,000 SAIC Strengthening Electoral System ISO 9001:2000 61,590 7,789 53,801 53,801 53,801 Spain Strengthening Electoral System ISO 9001:2000 162,902 70,884 (47,464) 183,363 (159,943) 2,960 325 2,635 USAID Strengthening Peace in the Central Atlantic Regions (116) (116) (116) (116) Sweden Strengthening to the Supreme Court of Honduras 38,185 (38,185) (38,185) Sweden Support to Rural Judicial Facilitators 462 (462) (462) 90

GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Section II - Chapter 4 Organization of American States Specific Funds Statement of Changes in Fund Balance (Detail by Subprogram) From January 1, 2010 to December 31, 2010 (in USD) SCHEDULE 7B A B C D E F G=B+C+D+E F H=A+G I J=H I Organization, Donor & Project Cash Balance Jan. 1, 2010 Contributions Transfers Interest Returns & Other Income Expenditures Net Change Cash Balance Dec. 31, 2010 Obligations Fund Balance Dec. 31, 2010 Ecuador Technical Assistance of Info. System, El Salvador 21,429 (21,429) (21,429) CIDA Technical Cooperation (CNE) 14,634 (13,562) 1,054 (14,616) 18 18 CIDA Technical Cooperation (TRICE) (8,266) 8,266 Brazil Technical Cooperation CNE Bolivia (A1) 454 12 (12) 443 143 300 Chile Technical Cooperation CNE Bolivia (A1) 548 236 (236) 312 12 300 CIDA Technical Cooperation CNE Bolivia (A1) 18,607 (2,144) 15,169 (17,314) 1,293 1,032 261 USDS Technical Cooperation CNE Bolivia (A1) 571 (521) 50 (571) CIDA Technical Mission of the SPA in Haiti 2,084 2,084 65 2,020 CIDA Transparency for Elect. Campaign Financing 182,314 23,055 159,259 159,259 7,000 152,259 CIDA VII InterAmer Mtg Elec Mang 50,000 30,829 19,171 19,171 2,205 16,966 USDS VII InterAmer Mtg Elec Mang 117,000 112,697 4,303 4,303 4,303 CIDA Voter Registry Bolivia Audit 1,153 (1,153) (1,153) TOTAL 2,269,378 3,692,277 4,343,764 8,038 (443,008) 7,503,763 97,309 2,366,687 869,454 1,497,233 The Department of Sustainable Democracy and Special Missions (62C) China Belize Guatemala Sub Fund of the Peace Fund 505 425 (425) 80 80 Mexico Belize Guatemala Sub Fund of the Peace Fund 6,669 3,485 (3,485) 3,184 388 2,796 Nicaragua Belize Guatemala Sub Fund of the Peace Fund 1,148 277 (277) 871 871 Spain Belize Guatemala Sub Fund of the Peace Fund 1,810 89 (89) 1,721 1,721 UK Belize Guatemala Sub Fund of the Peace Fund 9,191 (801) 1,495 (2,296) 6,895 6,895 USDS Belize Guatemala Sub Fund of the Peace Fund (LoC) 2,813 (2,442) 279 (2,721) 92 92 CIDA Consult GS w Exp Crit Situa 6,786 132,764 105,782 26,983 33,769 34,664 (895) CA DFAIT CP/RES. 930 (1632/08) 126 (126) 1,437 1,311 1,437 1,437 Spain CP/RES. 930 (1632/08) 140,006 245,714 (45,389) 214,802 (14,476) 125,530 24,541 100,989 USDS Develop. & Maintenance of Democracy Practitioners Da (70,281) 61,920 3,685 4,676 70,281 Various Develop. & Maintenance of Democracy Practitioners Dat 4,676 (4,676) USDS Exp Reform Judic Reg (840) 840 Various Fund for Peace General Fund 4,800 4,800 4,800 4,800 CIDA Gather Country Specific Information 12,831 85,812 86,642 (830) 12,001 11,748 253 Azerbaijan General Fund Sub Fund of the Peace Fund 10,000 1,200 8,800 8,800 8,800 Brazil General Fund Sub Fund of the Peace Fund 10 10 (10) China General Fund Sub Fund of the Peace Fund 20,000 4,692 15,308 15,308 15,308 HOLY SEE General Fund Sub Fund of the Peace Fund 2,900 2,900 (2,900) Korea General Fund Sub Fund of the Peace Fund 10 10 (10) Qatar General Fund Sub Fund of the Peace Fund 8,800 20,000 14,559 5,441 14,241 14,241 Spain General Fund Sub Fund of the Peace Fund 3,623 14,496 (15,130) (634) 2,989 2,989 Spain Imp. Med. entre Belice y Guat 109,978 57,519 52,459 52,459 6,825 45,633 USDS Implementation of the OAS Early Warning System (LoC (59,471) 58,188 1,283 59,471 Spain Interamerican Peace Fund 51,720 41,995 9,726 9,726 9,726 UK Legal Fees Belize Guatemala 267,656 131,176 161,716 (30,541) 237,115 237,115 IOM MAPP/OAS Mission to Support (6,219) (2,797) 9,016 6,219 Ireland MAPP/OAS Mission to Support 1,970 (1,970) (1,970) Netherlands MAPP/OAS Mission to Support 6,686 (1,310) 5,376 (6,686) Spain MAPP/OAS Mission to Support 108 (75) 1,204 1,130 1,238 1,238 Sweden MAPP/OAS Mission to Support 583 (583) (583) IOM MAPP/OEA Bajo Cauca 77,412 180,000 (2) 213,127 (33,129) 44,283 26,190 18,093 Spain Method. Impl. Analysis of Multiple Scenarios 84,172 253,083 (103,389) 228,698 (79,004) 5,168 4,792 376 CA DFAIT OAS Mediation Capacity Building Project 483,553 103,593 379,960 379,960 74,814 305,146 Brazil OAS Office Adjacency Belize Guatemala 22,250 22,250 (22,250) Germany OAS Office Adjacency Belize Guatemala 9,909 (8,808) 5,529 6,630 (9,909) Korea OAS Office Adjacency Belize Guatemala 6,750 6,750 (6,750) 91

Section II - Chapter 4 GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Organization of American States Specific Funds Statement of Changes in Fund Balance (Detail by Subprogram) From January 1, 2010 to December 31, 2010 (in USD) SCHEDULE 7B A B C D E F G=B+C+D+E F H=A+G I J=H I Organization, Donor & Project Cash Balance Jan. 1, 2010 Contributions Transfers Interest Returns & Other Income Expenditures Net Change Cash Balance Dec. 31, 2010 Obligations Fund Balance Dec. 31, 2010 Mexico OAS Office Adjacency Belize Guatemala 3,550 3,392 (3,392) 158 158 Spain OAS Office Adjacency Belize Guatemala 15,000 15,000 (15,000) Turkey OAS Office Adjacency Belize Guatemala 20,022 19,602 (19,602) 420 420 UK OAS Office Adjacency Belize Guatemala 35,861 152,530 163,231 (10,701) 25,160 10,414 14,746 USDS OAS Office Adjacency Belize Guatemala 50,000 21,246 28,754 28,754 28,754 Guatemala Polit. Agree.Communities Affected by Hydroelectric 99,776 99,776 95,820 3,956 CIDA Prep. Polit. Analysis Report to OAS Authorities 21,924 51,487 63,889 (12,402) 9,522 7,695 1,826 CIDA Process Information Multiple Scenarios 8,817 34,325 30,774 3,551 12,368 12,368 Germany Promoting a Culture of Peace 8,808 (7,908) 900 900 900 USDS Seed Fund for the Deployment of Special Missions (LoC (43,807) 47,138 (3,685) 354 43,807 Various Seed Fund for the Deployment of Special Missions 354 (354) CIDA Supp Prep deploy SG Envoy 1,660 (287) 27 (260) 1,400 1,248 152 CA DFAIT Support Peace Process Colombia (103,605) 1,605,563 15,124 1,473,521 147,166 43,562 58,662 (15,100) Colombia Support Peace Process Colombia 37 (14) 2 26 (37) Germany Support Peace Process Colombia 260 (260) (260) GTZ Support Peace Process Colombia 356,842 859 278,185 79,516 79,516 78,949 567 IOM Support Peace Process Colombia 106,834 1,200,000 2,797 9,533 1,020,962 191,368 298,203 233,580 64,622 Ireland Support Peace Process Colombia 15,235 122,075 1,970 1,109 121,019 4,136 19,371 9,186 10,185 Netherlands Support Peace Process Colombia 432,618 1,399,920 13,300 (30,630) 1,415,092 (32,501) 400,116 97,608 302,509 Norway Support Peace Process Colombia 1,591 (179) 17 1,429 (1,591) SAIC Support Peace Process Colombia 1,496,500 1,480,843 (1,480,843) 15,657 15,580 77 Spain Support Peace Process Colombia 222,290 75 20,433 209,822 (189,314) 32,976 4,019 28,956 Sweden Support Peace Process Colombia 532,254 1,161,175 4,804 (50,089) 987,474 128,415 660,669 461,745 198,924 Switzerland Support Peace Process Colombia 7,194 135,539 153 1,454 84,059 53,087 60,281 47,728 12,552 Various Support Peace Process Colombia 14 71,417 5,951 65,479 65,479 65,479 Spain Support to governments political management 350,627 192,664 157,963 157,963 89,621 68,342 TOTAL 3,412,763 7,145,620 1,381,644 34,240 (127,869) 8,872,483 (438,847) 2,973,916 1,467,144 1,506,772 The Department of State Modernization and Good Governance (62D) China AG/RES. 2286 (XXXVII O/07) RENIEC 8,800 6,643 (6,643) 2,157 1,784 373 Italy AG/RES. 2286 (XXXVII O/07) RENIEC 86,157 78,735 (78,735) 7,421 2,102 5,320 USDS AG/RES. 2286 (XXXVII O/07) RENIEC 61,438 53,241 (53,241) 8,198 8,198 CIDA Building Capacity in Public Adm. to Foster Rights 18,340 1,000,285 832,154 168,131 186,472 182,426 4,046 USDS Building Capacity in Public Adm. to Foster Rights 50,000 33,317 16,683 16,683 16,718 (35) Various CAPACINET 11,361 10,124 680 20,804 20,804 12,900 7,904 Colombia Capacity Bldg. Act. in the Americas 68,007 64,180 (64,180) 3,827 3,645 182 Various Capacity Bldg. Act. in the Americas 48,991 78,673 18,098 (450) 122,581 (26,260) 22,731 11,080 11,651 UK Caribbean Regional Secure Identities Project 13,284 13,284 13,284 Various CATASTRO 4,763 3,690 2,794 5,659 5,659 5,659 Spain Congress and Fiscality 34,152 6,226 (6,226) 6,617 (6,617) 27,534 3,501 24,034 SAIC Cons Derecho Identidad 241,000 181,434 59,566 59,566 58,791 775 OSI DF Decentralization in Latin America 1,664 (1,664) (1,664) IADB Decentralization of Local Governments 18,125 18,125 18,125 Italy Democratic Governability Andean Region 3,654 3,654 3,654 CIDA E GOBIERNO 50,400 50,400 50,400 50,400 CINTEL E GOBIERNO 60,000 2,400 57,600 57,600 14,052 43,548 Various E GOBIERNO 29,432 10,238 1,686 37,984 37,984 37,984 ICA E Government for the Americas 22 (22) (22) Microsoft E Government Technology 5,986 5,130 (5,130) 856 856 IDRC E Government Workshops (RED GEALC) 685 (685) (685) CIDA Establishment of Regulatory Mech. Public Info 18,174 494 18,262 (17,769) 405 405 92

GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Section II - Chapter 4 Organization of American States Specific Funds Statement of Changes in Fund Balance (Detail by Subprogram) From January 1, 2010 to December 31, 2010 (in USD) SCHEDULE 7B A B C D E F G=B+C+D+E F H=A+G I J=H I Organization, Donor & Project Cash Balance Jan. 1, 2010 Contributions Transfers Interest Returns & Other Income Expenditures Net Change Cash Balance Dec. 31, 2010 Obligations Fund Balance Dec. 31, 2010 Spain Fortal Sistem Regis Civil Des 194,138 153,329 (31,980) 240,527 (119,179) 74,959 26,193 48,766 Spain Fortal. Reg Civ. Gua Pana Peru 211,503 36,836 (36,836) 163,821 (163,821) 47,682 46,781 900 Sweden Fortalecimiento Instnl. Gob. 10,059 (3,923) 3,735 (7,658) 2,401 2,401 Spain Fortifying Mech. of Civil Registry and Identification 88,119 78,737 (78,737) 9,382 949 8,433 China Forum Pub Priv Allian Devel 20,000 19,430 570 570 427 143 Korea Forum Pub Priv Allian Devel 22,818 2,389 20,429 20,429 4,472 15,956 UNESCO FOST.UNIV.ACC. TO INFO. IMPL. 17,340 5,909 10,509 (4,600) 12,740 3,194 9,546 CIDA Honduras PUICA 61,570 (60,642) 5,640 (55,002) 6,568 381 6,187 CIDA IGPN Fostering Structure & Capacity 45,585 135,307 789 88,456 47,640 93,225 44,734 48,491 CIDA IGPN Modernize Proc. Systems 26,122 (25,566) 2,378 400 (23,588) 2,534 2,534 CIDA IGPN Promote Green Govt Proc. 21,800 36,233 10,397 25,836 47,636 47,636 CIDA IGPN Train Govt Proc. Officers 14,966 (4,886) 454 10,000 (14,432) 534 534 Chile Improve Civil Registry in the OECS countries 67,178 150,000 102,405 47,595 114,773 957 113,816 IDRC Innovation in E Government in the Americas 242,474 1,352 36,395 207,430 207,430 2,429 205,002 IADB Inter American Forum on Political Parties 17,499 (13,999) 3,500 (17,499) Korea Inter American Forum on Political Parties 22,818 (22,818) (22,818) Luxembourg Inter American Forum on Political Parties 6,808 6,808 6,808 CIDA Inter American Governmental Procurement 1,421 (1,421) (1,421) CIDA Mexico PUICA 106,875 53,650 74,423 (20,773) 86,102 8,100 78,002 Sweden Moder. & Legislative Agenda Congress 2005 2007 83,969 10,605 (83,687) (73,082) 10,887 10,887 Various Moder. & Legislative Agenda Congress 2005 2007 8,190 8,053 (8,053) 137 260 (123) CIDA Modern. Integ. Civil Reg 3,866,183 4,059,634 115,498 9,153 3,631,875 552,410 4,418,593 1,038,961 3,379,632 IADB MORECIV 55,804 (55,804) (55,804) CIDA MuNet Create Regional Network 82,914 16,072 15,001 1,071 83,985 100 83,885 CIDA MuNet Installation National Programs 52,882 82,587 70,366 12,221 65,103 50,375 14,728 CIDA MuNet Review of Tool 23,718 (22,278) 345 1,440 (23,373) 345 345 ADC Municipal Institutional Development 997 997 997 Colombia Net of Info & Academic Investigation 1,000 (1,000) (1,000) CIDA Paraguay PUICA 25,902 67,110 (60) 54,542 12,508 38,411 6,692 31,719 CIDA Promoting Decentralization & Local Governance 53,020 3,631 172 50,454 (46,652) 6,367 6,367 USDS Proposal for Updating New Legislators Seminars (LoC) 2,597 2,597 2,597 CIDA PUICA Strengthening OAS Tech. Assist. Strategies 15,457 181,245 122,682 58,562 74,020 1,566 72,454 IDRC RED GEALC Phase II 130,928 (42,000) (1,733) 63,593 (107,326) 23,602 19,166 4,436 USDS Reg Civil Reg & Ide Pro OECS (LoC) 3,300 (3,300) (3,300) (3,300) USAID Reiss ID Cards in Gonaives. (LoC) (2,709) 26,535 21,141 970 45,937 2,709 Stewart Stewart Technology e Government 16,846 16,844 (16,844) 2 2 Spain Strength.Pol.Party&Camp.Finan. 42,911 38,304 (8,379) 66,278 (36,354) 6,557 3,787 2,771 Spain Strength.Systems Civil Reg. & Develop. Pract.Tools 50,514 65,350 (65,350) 49,973 (49,973) 540 298 243 CIDA Strengthening Legislative Inst. Political & Civil 48,165 18,903 512 66,380 (46,965) 1,200 1,200 CIDA Technical Assistance Civil Registry Database 86,093 120,380 60,779 59,601 145,694 12,446 133,248 Sweden Universalization of Civil Identification in Honduras 74,050 (74,050) (74,050) TOTAL 6,020,711 4,538,780 2,538,236 1,352 (363,729) 6,582,478 132,160 6,152,871 1,579,266 4,573,605 The Office of the Executive Secretary for Integral Development (72A) CWJFL Cable & Wireless Jamaican Foundation 769 (769) (769) Israel Cooperation Fund 337 (337) (337) 1 1 Israel Cooperation Fund (Technical Support) 1,628 1,628 1,628 United Nations Dialogue Tables in Guatemala 1,246 1,246 1,246 Various Education in Honduras 17,283 17,283 17,283 Honduras Education Unprogrammed Funds 29,154 29,154 29,154 Microsoft Educational Quality (2,760) 2,760 2,760 93

Section II - Chapter 4 GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Organization of American States Specific Funds Statement of Changes in Fund Balance (Detail by Subprogram) From January 1, 2010 to December 31, 2010 (in USD) SCHEDULE 7B A B C D E F G=B+C+D+E F H=A+G I J=H I Organization, Donor & Project Cash Balance Jan. 1, 2010 Contributions Transfers Interest Returns & Other Income Expenditures Net Change Cash Balance Dec. 31, 2010 Obligations Fund Balance Dec. 31, 2010 Mexico Fund 22 Integral System Information 2,000 (2,000) (2,000) Mexico Fund 22 Unprogrammed 343,648 (255,100) 8,222 (246,878) 96,771 96,771 Mexico Fund 33 Unprogrammed Activities 2,368,777 606,370 (162,636) 69,627 513,361 2,882,138 2,882,138 Various Governmental Strengthening 36,732 36,732 36,732 Honduras Honduras Unprogrammed Funds 29,332 29,332 29,332 Argentina Horizontal Cooperation 77,870 216 2,789 (2,573) 75,298 75,298 Brazil Horizontal Cooperation 324,200 9,584 9,584 333,783 333,783 Peru Horizontal Cooperation 21,060 21,060 21,060 Spain Horizontal Cooperation 19,500 19,500 19,500 Brazil Horizontal Cooperation (Technical Support) 3,487 3,487 3,487 IDRC Horizontal Cooperation Fund (FOCOH) 847 (846) (846) Honduras Housing Execution in Honduras 35,783 47 47 35,830 35,830 CIDA IACN ID & Eval. New Markets 60,104 198,573 38,548 160,025 220,129 220,129 CIDA IACN New Networks Operations 245 23 222 222 222 CIDA IACN Supp. Existing Networks 63,465 36,464 29,631 6,834 70,299 70,299 Panama ICAO Cooperation Development 878 (878) (878) Mexico II Meeting COMCYT 11,416 11,416 11,416 CIDA MP Enhance Follow up Support 10,135 14,152 7,739 23,141 (1,250) 8,886 899 7,987 CIDA MP Facilitate CSO Engagement 26,405 48,061 180 53,285 (5,044) 21,361 4,381 16,980 Various MP Facilitate CSO Engagement 3,710 3,710 3,710 3,710 CIDA MP Facilitate Stakeholder Part 50,591 399,080 355,629 43,451 94,042 20,243 73,799 YABT Network Development 2,069 2,069 2,069 Canada New Program Approaches 1,404,192 30,631 (3,187) 583,945 (556,502) 847,691 331,130 516,561 Canada New Program Approaches (Overhead) 126,040 (150) 7,555 3,365 4,040 130,081 51 130,030 Korea OAS KOREA Internships 2009 10 6,773 12,000 (440) 12,880 (1,320) 5,453 3,165 2,288 Panama Privatization Process 55,648 55,648 55,648 El Salvador PRODERT US 73 (67) (67) 6 6 Canada Program for Integral Development 13,967 (8,793) 6,951 (1,841) 12,126 12,126 CIDA Program for Integral Development 22,483 (18,269) (18,269) 4,214 4,214 Mexico Program Int. Mesoamerican Energy 13,603 (13,603) (13,603) Mexico Program of Strategic Actions in Mexico 266,297 256,636 4,864 203,633 57,867 324,164 293,508 30,656 CIDA Promoting Corporate Social Responsibility 316 (313) 175 178 (316) USDS Scholarship Fund 2001 600,000 600,000 600,000 PADF Science & Technology 2009 21,168 2,540 18,628 18,628 18,628 SECAB SECAB Property training 8,000 8,000 8,000 PADF Social Development 2009 21,168 2,540 18,628 18,628 18,628 Canada Strategic Plan Preparation 2006 2009 2,950 2,950 2,950 PADF Sustainable Development 2009 21,168 2,540 18,628 18,628 6,000 12,628 Mexico Tech. Innovation & Diffusion Coop. Int'l Mexican 134,614 23,330 838 66,170 (42,001) 92,613 1,373 91,241 Italy Technical Support Italy CONSUTEL 8,579 8,579 8,579 Mexico Technol. Modernization of the General Direction (III) 7,727 (7,727) (7,727) USDS U.S. Cooperation Fund 2009 2,537,647 (1,500,000) 68,196 (1,431,804) 1,105,842 1,105,842 USDS U.S. Cooperation Fund 2010 5,000,000 88,355 5,088,355 5,088,355 5,088,355 USDS United States Cooperation Fund (Post ICR) 621,736 18,379 18,379 640,115 640,115 USDS United States Cooperation Fund (Pre ICR) 422,376 3,798 40,818 44,616 466,991 466,991 USDS Unprogrammed Funds for Cooperation 2,927,781 86,549 86,549 3,014,330 3,014,330 Various Virtual Education 189 (190) (190) (1) (1) TOTAL 12,716,948 5,681,874 (985,308) 433,664 12,075 1,380,837 3,761,468 16,478,416 660,749 15,817,667 The Department of Economic Development, Trade, and Tourism (72C) Mexico 2008 S & T Ministerial Meetings Project 19,060 6,797 (6,797) 12,263 75 12,188 94

GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Section II - Chapter 4 Organization of American States Specific Funds Statement of Changes in Fund Balance (Detail by Subprogram) From January 1, 2010 to December 31, 2010 (in USD) SCHEDULE 7B A B C D E F G=B+C+D+E F H=A+G I J=H I Organization, Donor & Project Cash Balance Jan. 1, 2010 Contributions Transfers Interest Returns & Other Income Expenditures Net Change Cash Balance Dec. 31, 2010 Obligations Fund Balance Dec. 31, 2010 Microsoft 2008 S & T Ministerial Meetings Project 3,000 3,000 3,000 3,000 CAF Andean Technical Cooperation Corp/OAS (30,000) (30,000) (30,000) CRUSA Central American Metrology Network CAMET 136,900 30,264 106,636 106,636 6,000 100,636 China Competitiveness & Trade Facilitation Project 9,777 310 9,777 (9,467) 310 310 Colombia Competitiveness Capacity Bldg. Initiative 1,852 1,852 1,852 USDS Competitiveness Capacity Bldg. Initiative 1,519 (1,519) (1,519) CIDA Cooperanet Vir Netw Soc & Eco 58,315 24,337 42,020 113,652 (47,295) 11,020 10,958 62 CIDA CSR Build Cap. & Implement 87,729 68,497 51,076 17,421 105,150 82,670 22,480 CIDA CSR Development of Content & Materials 105,462 (3,692) 2,269 99,751 (101,173) 4,289 144 4,145 CIDA CSR Improve Environmental & Social Performance (2,043) 4,930 458 4,471 2,429 2,429 CIDA CSR Strengthen Business Org. (A5) 30,303 99,341 51,055 48,286 78,589 39,416 39,173 CIDA CSR Training Public Officials 35,272 66,905 40,527 26,378 61,650 50,295 11,355 IADB Dept Econ Devl Tra Tour CAMET 104,500 89,353 15,147 15,147 3,257 11,890 CIDA Economic Development STEN 54,000 22,000 32,000 32,000 6,500 25,500 NIFO EFTA Symposium Lima Peru 2,348 2,348 2,348 Various Engineering for the Americas 2,541 270 (270) 2,272 2,272 USDS Foreign Trade Information System SICE 508,692 13,556 102,200 (88,644) 420,049 43,370 376,679 OAS SEDI Haiti Hospitality Training and Certification Project 26,319 26,319 26,319 CIDA I A Scientific Jrnlism. Prog. 60,716 55,474 (55,474) 5,242 2,702 2,540 USDS Improv. Capabilities Carib. Officials Security Threats 6,404 6,404 6,404 Brazil Information, Communication and Technology 6,773 (6,773) (6,773) IACD Local Cuisine/Restaurant Development Caribbean 102 102 102 OAS SEDI Marketing Opportunities for Caribbean Using IT 587 (587) (587) CIDA New Trade CARICOM Canada Negotiations 32,754 5,384 916 39,296 (32,996) (242) (242) CIDA New Trade CARIFORUM Implementation 33,595 113,606 59,150 54,456 88,051 34,553 53,498 CIDA New Trade Dev./Bldg Ca in LAC 19,799 133,650 141,713 (8,063) 11,736 4,356 7,380 CIDA New Trade Dev/Carib Econ. Out 45,350 41,825 41,435 390 45,740 4,900 40,840 CIDA New Trade Dev/Marginal Groups 96,454 176,387 182,248 (5,860) 90,593 40,630 49,963 Panama Plan for Science and Technology 8,108 8,108 8,108 OECS Public / Private Biodiversity Response 13,850 (13,791) 59 (13,850) Germany Quality Management System Food and Textiles (3,099) (3,099) (3,099) CIDA SICE/Trade 9 9 9 USAID STEP Caribbean 4,400 (4,400) (4,400) Various STEP Training & Certification 14,866 1,895 (1,895) 12,971 12,971 OAS SEDI Strateg. Caribbean Artisan SMEs & Resorts/Shops 36,389 70,912 99,515 (28,603) 7,786 7,737 49 OAS SEDI Strategic Decision Making (ME 282/07) 18,000 34,499 38,835 (4,336) 13,664 13,664 OAS SEDI Strengthening Human Resources Central America 108,186 (100,536) 7,650 (108,186) OAS SEDI TCB / Government Procurement 3,473 (3,473) (3,473) OAS SEDI Technical Assistance Small Hotels 34,989 88,800 92,099 (3,299) 31,690 8,008 23,682 IATC Tourism Development 6,343 6,343 6,343 Chile Trade Capacity Building 578 504 (504) 74 74 CIDA Trade Capacity Building 47,326 60,000 293 93,543 (33,250) 14,076 13,850 226 OAS SEDI Trade Capacity Building 9,277 (2,577) 6,700 (9,277) Uni W. Indies Trade Capacity Building (4,610) (4,610) (4,610) USDS Trade Capacity Building 6,685 (6,133) 206 758 (6,685) Various Trade Unit Publications Sales 720 720 400 320 Various Unprogrammed Funds Education 13,692 13,692 13,692 27,383 27,383 Sweden VII Iberoamerican Congress of Chemistry 437 437 437 WTO WTO/OAS GWU Trade Course 59,920 59,920 TOTAL 1,479,301 325,657 934,065 13,556 3,894 1,537,971 (260,799) 1,218,502 373,484 845,017 95

Section II - Chapter 4 GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Organization of American States Specific Funds Statement of Changes in Fund Balance (Detail by Subprogram) From January 1, 2010 to December 31, 2010 (in USD) SCHEDULE 7B A B C D E F G=B+C+D+E F H=A+G I J=H I Organization, Donor & Project Cash Balance Jan. 1, 2010 Contributions Transfers Interest Returns & Other Income Expenditures Net Change Cash Balance Dec. 31, 2010 Obligations Fund Balance Dec. 31, 2010 The Department of Sustainable Development (72D) CONAE Administrative Costs (PROSAT Phase II) (585) 27,293 (11,708) (1,005) 13,631 949 364 81 283 USAID AID Caribbean Disaster Mitigation 198 198 198 USAID AID Renew. Energy in the Americas REIA (LoC) 116 116 116 USAID AID Post Georges Disaster Mitigation 72 72 72 United Nations Amazon River Basin Project 623 (623) (623) United Nations Biofuels Market Development El Salvador 436 (436) (436) GBMF Building the I A Biodiversity Info Network Project 13,652 11,005 (11,005) 2,647 2,647 IBRD Building the I A Biodiversity Info Network Project 394,672 880,737 13,010 (99) 868,058 25,590 420,261 201,787 218,474 United Nations Caribbean Solar Financing Project 624 15,967 1,916 14,051 14,675 14,675 Argentina Climate Risk Red in the Caribbean 1,922 10,557 7,653 6,959 11,251 13,173 13,173 CA DFAIT Climate Vulnerabilities Coast. Infra Jamaica 1,214 1,214 1,214 ASFM Coastal No Adverse Impact Handbook 5,830 5,500 9,951 (4,451) 1,378 1,378 China CSFS in Grenada 27,100 27,097 (27,097) 3 3 CONAE Development Satellite System Program 238,555 966,610 12,313 2 550,353 428,571 667,126 29,009 638,117 USDI DOE Disaster Mitigation 1,089 1,089 1,089 Korea DSD Korea & SG/OAS Internship 12,000 880 10,067 2,813 2,813 2,813 United Nations Eastern Caribbean Geothermal 5,307 5,307 5,307 USDS Energy and Climate Partnership 800,000 149,618 650,382 650,382 64,790 585,592 Various Environment & Sustainable Development (55,304) (55,304) (55,304) USAID FIDA Sustainable Trade (LoC) 6,500 6,500 6,500 PADF Floods 359 359 359 OAS SEDI Gestion Inte./Sost. Acuiferos 2,890 43,000 112 32,020 11,092 13,982 10,980 3,002 Climate Inst. GSEII Project Development 553 7,000 (553) 452 5,995 6,548 6,548 IBRD Guarani Aquifer (500) (500) (500) IBRD Guarani Aquifer System 5,098 (5,098) (5,098) Honduras Gulf of Honduras 16,120 16,120 16,120 United Nations Hemispheric Learning in GEF IW 665 (665) (665) Argentina IDB White Helmets 287,883 328,000 (46,637) 12,127 (7,900) 120,881 164,708 452,591 3,553 449,038 IDRC Identify & Access Innovative Info Technologies 8,344 10,351 (151) 110 18,654 (8,344) Brazil Improving Urban Environmental Brazil 898,980 357,062 30,852 504,467 (116,553) 782,427 111,049 671,378 Chile Integrated Coastal Zone Mngmt (ICZM) Cap. Building. 50,335 50,099 (50,099) 236 236 United Nations Integrated Management of Land (4,022) (4,022) (4,022) IBRD Paymt Ecosys Svcs in Paraguay 99,115 72,681 26,434 26,434 25,434 1,000 Italy Plata River Basin GEF UNEP CIC 1,125 (1,125) (1,125) Austria Policy Integration for Sustainability 738 738 (738) OAS SEDI Preparation phase PROCUENCA SAN JUAN 611 611 611 CONAE Preparation Program for the Development PROSAT 446 446 446 CIDA Preparatory Meeting Follow up Activities 15,000 14,629 371 371 371 OAS SEDI Preparatory Meeting Follow up Activities 2,577 2,577 Spain Preparatory Meeting Follow up Activities 10,000 9,844 156 156 156 United Nations Prevent Land Degradation in the Caribbean 1,652 1,652 1,652 USDS Pro Electr Inter System Carib (LoC) 1,061 34,406 (33,345) (33,345) 83,537 (116,882) OAS SEDI Production in closed circuit Ecuador 15,000 13,500 1,500 1,500 1,500 Brazil PRONI CODEVASF 76,991 (45,562) 59,134 (104,696) (27,705) 19,800 (47,505) Finland Prot & Uso Sosten Acuif MesoAm 79,727 63,446 16,281 16,281 500 15,781 Canada Reducing Risk National Disasters 12,303 12,267 37 37 1 36 CIDA Reducing Risk National Disasters 76,637 133,665 1,015 187,625 (52,946) 23,692 17,953 5,738 OAS SEDI Reducing Risk National Disasters 478 (478) (478) China Reducing Risk to Natural Disasters In the Americas 184 184 184 REEEP REEEP Latin America/Caribbean 42,477 54,885 (83) 78,466 (23,664) 18,814 1,062 17,752 96

GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Section II - Chapter 4 Organization of American States Specific Funds Statement of Changes in Fund Balance (Detail by Subprogram) From January 1, 2010 to December 31, 2010 (in USD) SCHEDULE 7B A B C D E F G=B+C+D+E F H=A+G I J=H I Organization, Donor & Project Cash Balance Jan. 1, 2010 Contributions Transfers Interest Returns & Other Income Expenditures Net Change Cash Balance Dec. 31, 2010 Obligations Fund Balance Dec. 31, 2010 United Nations Reg Frame Sus Rio Bravo 56,593 76,249 (76,249) (19,656) (19,656) USDS Regional Energy Workshops 6,673 (6,673) (6,673) REEEP Regional Forum Sustainable Energy Policy Coor. 1,508 1,508 1,508 United Nations Regional Framework Rio Bravo 350,000 350,000 350,000 350,000 USDS Renewable Energy & Biofuels in the Caribbean (LoC) (215,790) 490,000 6,673 280,882 215,791 1 1 Caricom Resource Availability Emergency in the Caribbean 64,695 167,117 221,936 (54,819) 9,875 6,335 3,540 UNEP Rio Bermejo Basin 6,271 6,271 6,271 OPEC School based Telecenter in Rural Guatemala 22,033 (321) 21,712 (22,033) United Nations Strategic Action Program. Bermejo River Basin 283,064 2,293 (14,750) 294,337 (306,795) (23,731) (23,731) Sudam Strategic Action Pro Amazon 403,798 11,861 592 6,401 6,052 409,850 409,850 Brazil Strengthening Water Resources SRH/OAS 2,763,114 (15,215) 1,694,358 (1,709,572) 1,053,541 1,053,541 USDS Support Evaluation Work Performed CAFTA DR (LoC) (78,349) 393,963 186 341,333 52,815 (25,533) 9,897 (35,430) USDS Support Implementation US Brazil Bio Fuels 323,110 292,087 (292,087) 31,023 27,003 4,019 United Nations Sus. Mgmt. La Plata Basin 535,000 531 33,750 501,781 501,781 501,781 CA DFAIT Sust. Energy Partnership for the Americas SEPA 4,433 28,852 28,413 439 4,872 4,872 CIDA Sust. Energy Partnership for the Americas SEPA 74,269 (3) 72,112 (72,115) 2,154 2,143 10 United Nations Sust. Forest Mang. Gran Chaco 320,000 1,528 23,694 297,835 297,835 2,567 295,268 OAS SEDI Sustainability of the Soy 738 (738) (738) China Sustainable Development in the Caribbean 30,000 21,385 8,615 8,615 7,304 1,312 United Nations Sustainable Development in the Caribbean 163,185 558 (27,080) 136,662 (163,185) CA DFAIT Sustainable Energy Sector Caribbean 48,053 44,998 3,055 3,055 3,055 EEC Sustainable Energy Sector Caribbean 105,431 624,632 11,858 252 405,748 230,995 336,425 138,862 197,563 CIDA Trade & Environment in the Americas 723 (723) (723) Various TRIFINIO Project 1,243 1,243 1,243 IBRD Upper Paraguay River Basin 1,968 1,968 1,968 United Nations Upper Paraguay River Basin 2,215 2,215 2,215 USDS US/Brazil Biofuels Agreement 200,000 68,199 131,801 131,801 29,678 102,123 COCATRAM Vulnerability Reduction Transp. Central America (199) (199) (199) USDT Vulnerability Reduction Transp. Central America 611 611 611 PERI Vulnerability Reduction Univ. Campuses 1,558 (1,558) (1,558) OAS SEDI WHMSI Western Hemisphere 63,138 60,431 105,943 (45,512) 17,626 11,906 5,720 USDIN WHMSI Western Hemisphere 2,709 379,115 1,050 146,746 233,418 236,128 26,045 210,083 TOTAL 6,168,807 6,132,312 1,324,553 54,816 (70,837) 7,241,485 199,359 6,368,166 840,378 5,527,788 The Department of Social Development and Employment (72E) Canada Capacity Building of Minis. Labor Hemisphere 3,226 3,226 3,226 Jamaica Chalk making Industry 1,619 1,619 1,619 China CIDES 09 2,527 860 (860) 1,667 1,040 627 USDS DSDE Social Protection Network (LoC) (302,510) 365,117 (8,500) 209,781 146,836 (155,674) 26,584 (182,258) Canada Education Projects 824 824 824 Dom.Rep. Education Projects 5,060 5,060 5,060 Various Education Projects 20,859 20,859 20,859 Various Educational Reform in Paraguay 2,776 2,776 2,776 Jamaica Food & Nutrition Policy Program 6,398 6,398 6,398 CIDA IAPM Management, Administration & Coordination 70,955 60,208 61,089 (881) 70,074 24,491 45,584 CIDA IAPM Promotion, Dissemination & Evaluation 17,776 (16,212) 1,510 1,564 (16,266) 1,510 1,510 CIDA Identify & Disseminate Temporary Work Programs 82,318 15,190 41,897 (26,707) 55,611 21,000 34,611 IBRD IV Symposium Early Childhood (1,508) 1,508 1,508 1 1 Canada Labor Program HRSDC 98,951 10,885 88,067 88,067 88,067 CIDA LC IAPM Migr Datab&Webpage 240 77,347 46,105 31,242 31,482 20,421 11,060 CIDA LC IAPM Prom.Labor&Human Rig 18,576 (2,062) 2,804 16,514 (15,772) 2,804 2,804 97

Section II - Chapter 4 GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Organization of American States Specific Funds Statement of Changes in Fund Balance (Detail by Subprogram) From January 1, 2010 to December 31, 2010 (in USD) SCHEDULE 7B A B C D E F G=B+C+D+E F H=A+G I J=H I Organization, Donor & Project Cash Balance Jan. 1, 2010 Contributions Transfers Interest Returns & Other Income Expenditures Net Change Cash Balance Dec. 31, 2010 Obligations Fund Balance Dec. 31, 2010 CIDA LC IAPM Women&Mig. Mexico 9,031 9,541 10,327 (786) 8,245 59 8,186 USINL LC IAPM Women&Mig. Mexico 2,358 1,448 (1,448) 910 910 IDB Meeting PISDIC 779 779 779 Mexico Mexico Unprogrammed Funds 382,138 382,138 382,138 Various Miscellaneous Record Sales 712 684 (684) 28 28 USDS MOU with Trust for the Americas 27,620 27,554 (27,554) 66 36 30 IDB National Customs Costa Rica 7,689 7,689 7,689 Chile Network Based Capacity Building 45,881 138 37,516 (37,378) 8,503 3,545 4,957 China Network Based Capacity Building 30,000 26,449 3,551 3,551 779 2,772 CIDA Network Based Capacity Building 64,165 35,420 2,080 68,505 (31,005) 33,159 350 32,809 Various Overhead Social Development & Education Unit 65 65 65 PAHO Parliamentarian Health Meeting 3,507 3,507 3,507 Various Perkins School for the Blind 2,500 2,500 2,500 CIDA Promote Education of Migrant Youth 32,316 139,523 68,076 71,447 103,764 24,137 79,627 UNICEF Proposal/CEPAL 1,690 1,690 1,690 IBRD Protection & Promotion of Cultural Heritage 942 (942) (942) USDS RIAL Workshop on Youth Employment Generation 313 (313) (313) SAIC SICREMI Sist.Cont.Report.Migr. 150,656 150,656 150,656 150,656 Spain SICREMI Sist.Cont.Report.Migr. 79,421 129,739 (28,331) 157,292 (55,884) 23,537 4,281 19,256 Various Social Net Fund 71,351 21,023 (21,023) 50,327 50,327 Canada Strength. I A Network for Labor Administration RIAL 204,593 3,236 (8,552) 194,335 (199,652) 4,941 5,128 (187) USDS Strength. I A Network for Labor Administration RIAL 50,000 518 30,103 (29,584) 20,416 7,556 12,860 IACD Strengthen Democracy 2,072 2,072 2,072 Mexico Support Small & Medium Enterprises 70,897 70,897 70,897 Various Support Workshop on Health 2,842 2,842 2,842 Mexico Technical Cooperation for Social Organizations 20,919 20,919 20,919 Tinker Found. Technical Cooperation Seminar Headquarters 8,520 8,520 8,520 Brazil Technical Support XV Meeting Ministers of Culture 1,206 1,206 (1,206) Honduras Telebasica Project 5,919 (5,919) (5,919) Brazil Unprogrammed Funds Education 17,769 17,769 17,769 Various XIII Inter American Conference 3,386 3,386 3,386 TOTAL 1,049,737 494,068 585,702 3,236 (30,352) 1,033,213 19,441 1,069,178 139,434 929,744 The Department of Human Development, Education, and Culture (72G) Various Amalia Lacroze De Fortabat Scholarship 876 876 (876) GFDD CIC International Workshop 07 1,125 1,125 (1,125) Various CITEL Fellowships 31,404 4,730 4,887 (157) 31,247 31,247 CIDI Contributions Fellowships 8,145 8,145 8,145 St.Vin.&Gren. Contributions Fellowships 1,374 1,374 1,374 Chile Course on Nutritional Policies 5,000 5,000 5,000 Various Cultural Activism of Colombia 1,627 1,627 1,627 Canada Culture in Development: An I A Information Network 24,000 (24,000) (24,000) CIDA Culture in Development: An I A Information Network 95,664 5,785 62,119 (56,334) 39,330 34,226 5,104 OAS SEDI Culture Meeting Dominican Republic 34,000 25,876 8,124 8,124 8,124 USDS Distance Educ. Hemisp. Course Teachers IADC 11,199 (11,199) (11,199) USDS Distance Education for Teachers 11,199 11,199 Chile Early Childhood Caribbean 38,794 38,156 (38,156) 638 638 China Early Childhood China Contribution 21,048 20,816 (20,816) 232 231 1 Brazil Education old projects 3,500 (3,500) Various Education old projects 6,337 (6,337) (6,337) 18,186 (24,523) BVLF Education Transitions in Early Years 110,386 106,167 (106,167) 4,219 4,119 100 98

GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Section II - Chapter 4 Organization of American States Specific Funds Statement of Changes in Fund Balance (Detail by Subprogram) From January 1, 2010 to December 31, 2010 (in USD) SCHEDULE 7B A B C D E F G=B+C+D+E F H=A+G I J=H I Organization, Donor & Project Cash Balance Jan. 1, 2010 Contributions Transfers Interest Returns & Other Income Expenditures Net Change Cash Balance Dec. 31, 2010 Obligations Fund Balance Dec. 31, 2010 CIDA Exp. Hemisp. Commitment Early Childhood Educ. 80,745 30,000 72,695 (42,695) 38,050 19,641 18,409 China Fostering Cultural Diversity 22,000 22,000 (22,000) Colombia I A Education for Democratic Values 9,599 9,599 (9,599) USDS I A Education for Democratic Values 95,932 33,628 (33,628) 62,304 8,616 53,688 IBM IBM Contribution 7,936 7,936 (7,936) USDS Inter American education for democratic values 500,000 55,000 445,000 445,000 445,000 Canada Inter American Teacher 24,000 23,183 818 818 780 38 CIDA Inter American Teacher 75,750 50,953 24,796 24,796 20,120 4,676 Various Portal of the Americas 276,710 172,084 15,470 12,137 266,857 (67,166) 209,544 84,738 124,806 Argentina Postgraduate Studies 203,310 5,761 11,964 (6,203) 197,107 197,107 Qatar Professional Development Observer States (PEC) 8,800 8,540 (8,540) 260 260 Costa Rica Rincón Cuentos Costa Rica 1,927 1,890 (1,890) 37 37 Denmark Romulo Gallegos Fellowships 65,010 42,426 (42,426) 22,584 22,584 Finland Romulo Gallegos Fellowships 1,423 1,423 1,423 Italy Romulo Gallegos Fellowships 1,222 1,222 1,222 Spain Romulo Gallegos Fellowships 34,277 32,200 (32,200) 2,077 2,077 USDS Romulo Gallegos Fellowships 33,700 14,711 18,989 18,989 18,200 789 USAID Stem of Youth Crime, Vio. CA (LoC) 75,860 83,176 (7,317) (7,317) 5,130 (12,446) OUI Teachers Educators Project 800 (800) (800) Chile Unprogrammed Funds 288 (288) (288) SENAI V Meeting in Early Childhood Education 7,465 7,465 (7,465) 1 1 TOTAL 1,168,086 252,673 693,617 5,761 12,137 1,021,781 (57,593) 1,110,493 220,012 890,482 CIDI Mtgs., Ministerial & IA Committees Meetings (72H) Canada 1st I A Mtng Ministers & High Level Auth. on Culture 12,477 12,477 12,477 Bolivia 1st I A Mtng Ministers & High Level Auth. Sus. Dev. 13,821 13,821 13,821 Colombia CIDI Reunion Espec. Aut. Coop. 438 (438) (438) Chile I Meeting IA Committee Social Development 6,831 6,831 6,831 Chile I Meeting Social Development (CIDI) 9,230 9,230 9,230 Mexico II Meeting Ministers on Science & Technology 16,007 16,007 16,007 Colombia II Meeting on Social Development 50,000 38,249 11,751 11,751 11,751 Dom. Repub. II Meeting on Sust. Development 49,974 41,123 8,851 8,851 2,195 6,656 Barbados IV Inter American Meeting Ministers of Culture 5,814 5,814 5,814 Ecuador IV Meeting I A Commission of Education 2,221 (2,221) (2,221) Trin.&Tob IV Meeting of Ministers of Education 7,760 (7,761) (7,761) (1) (1) Canada Meetings of CIDI 7,133 7,133 7,133 Colombia Meetings of CIDI 7,199 (7,199) (7,199) Ecuador V Meeting of IA committee on education 58,000 32,377 25,623 25,623 1,568 24,055 SEDI V Meeting of Ministers of Education 10,157 10,157 10,157 Ecuador VI I A CONF. MINISTERS OF EDU. 14,047 (14,047) (14,047) Brazil XIII IA Meeting of Labor Ministers 43,129 43,129 43,129 Mexico XIV I A Conference Ministers of Labor 21,663 21,663 21,663 Argentina XVI I A CONF. MINIS. OF LABOR 42,541 (42,541) (42,541) TOTAL 220,466 157,974 (15,398) (58,809) 111,749 (27,981) 192,485 3,763 188,722 The Secretariat for External Relations (82A) USDS Civil Society 10,161 174,948 183,872 (8,923) 1,238 983 255 Various Civil Society 69,469 69,469 China Equipment for General Secretariat 254 254 254 Various Host Country Relations 120 120 120 CIDA Mechanisms for Strengthening Civil Society 112,679 153,949 160,298 (6,349) 106,330 46,527 59,803 99

Section II - Chapter 4 GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Organization of American States Specific Funds Statement of Changes in Fund Balance (Detail by Subprogram) From January 1, 2010 to December 31, 2010 (in USD) SCHEDULE 7B Organization, Donor & Project Cash Balance Jan. 1, 2010 Contributions Transfers Interest Returns & Other Income Expenditures Net Change Cash Balance Dec. 31, 2010 Obligations Fund Balance Dec. 31, 2010 IDEA OAS IDEA Joint Activities Plan 100,000 (88,000) 12,000 SAIC Promoting Towns Natives in America 12,037 2,298 9,738 9,738 9,738 Spain Promoting Towns Natives in America 15,038 15,038 15,038 Korea SER/Korea/OAS Internship. Program. 6,773 24,000 22,947 1,053 7,827 7,827 Spain Strengthening Social Promotion 105,194 48,209 56,985 56,985 25,200 31,785 TOTAL 145,025 124,000 427,597 499,093 52,504 197,529 80,791 116,738 The Department of Strategic Communications and Image (82B) CIDA Communication Outreach using Branding Tools 8,825 43,048 182 49,212 (5,982) 2,843 2,554 289 CIDA Develop/Implementation of OAS Communication Strateg 314 13 314 (301) 13 13 Various DPI / Multimedia (19,826) 277 3,555 (3,278) (23,104) 1,589 (24,693) CIDA Implementation of Web Content Management 126,930 79,875 148,483 (68,608) 58,321 50,532 7,789 Various Public Information, Radio & TV Sale Video 1,540 1,540 1,540 ADC Streng. Institutional. And Regional Integrity 173,472 33,407 76,051 130,828 130,828 14,980 115,848 TOTAL 117,783 173,472 156,330 472 277,616 52,659 170,442 69,656 100,786 The Department of International Affairs (82C) China China to The Americas 408 408 408 USDS Cooperation OAS African Union 9,590 129,410 50,254 79,156 88,746 38,853 49,894 China Lecture of Series for The Americas 5,460 30,000 9,758 20,242 25,702 11,453 14,249 France Lecture of Series for The Americas 100 100 100 Morocco Lecture of Series for The Americas 10,000 8,980 (8,980) 1,020 1,020 SMP Univ. Lecture of Series for The Americas 36,647 100,000 25,400 131 58,437 67,094 103,741 13,231 90,510 Spain Lecture of Series for The Americas 95,330 53,931 41,399 41,399 15,292 26,107 Turkey Lecture of Series for The Americas 40,000 19,404 20,596 20,596 1,890 18,706 Various Lecture of Series for The Americas 8,000 960 7,040 7,040 708 6,332 China MOAS Program 9,746 11,199 (11,199) (1,454) 25 (1,478) Korea MOAS Program 30,153 30,152 (30,152) 2 2 Spain MOAS Program 104,924 119,432 (33,037) 92,530 (6,135) 98,789 78,094 20,695 Various MOAS Program 35,758 50,344 (1,400) 20,028 28,916 64,674 528 64,146 China OAS 50th Anniversary 490 10,000 3,600 6,400 6,890 6,890 Various OAS 50th Anniversary 820 4,345 980 3,365 4,185 100 4,085 China Spokespersons of The Americas 1,415 1,415 1,415 OSI DF Spokespersons of The Americas (1,318) (1,318) (1,318) TOTAL 244,193 242,689 368,172 (32,906) 360,212 217,743 461,936 161,194 300,742 The Department of Cultural Affairs (82D) Paraguay Art Museum Amer Permanent FD (358) (358) (358) Various Art Museum Amer Permanent FD 3,164 32,000 26,494 52,965 5,528 8,692 8,494 198 Brazil Museum Infrastructure Renovation 243 243 243 China Museum Infrastructure Renovation 435 435 435 Paraguay Museum of Art Americas 408 408 408 Various Palco to New Museum 2,363 2,363 2,363 Xerox Corp. Xerox Grant Latin American Art 706 706 706 CIDA Youth Orchestra Caribbean 85,172 77,672 7,500 7,500 7,500 China Youth Orquestral/Caribbean 5,188 5,188 140 5,048 China Yth Orchest Prog in Caribb 3,548 7,710 10,304 (2,594) 954 351 603 Colombia Yth Orchest Prog in Caribb 24,440 (11,231) 13,209 (24,440) Korea Yth Orchest Prog in Caribb 100,000 60,260 39,740 39,740 8,868 30,872 OAS SEDI Yth Orchest Prog in Caribb 2,128 57,612 4,368 34,659 27,321 29,449 29,449 PADF Yth Orchest Prog in Caribb 7,620 2,454 5,166 5,166 5,166 Various Yth Orchest Prog in Caribb 250 19,867 6,494 13,372 13,622 800 12,822 TOTAL 42,516 107,620 194,651 27,341 258,018 71,594 114,110 26,153 87,957 100

GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Section II - Chapter 4 Organization of American States Specific Funds Statement of Changes in Fund Balance (Detail by Subprogram) From January 1, 2010 to December 31, 2010 (in USD) SCHEDULE 7B A B C D E F G=B+C+D+E F H=A+G I J=H I Organization, Donor & Project Cash Balance Jan. 1, 2010 Contributions Transfers Interest Returns & Other Income Expenditures Net Change Cash Balance Dec. 31, 2010 Obligations Fund Balance Dec. 31, 2010 The Press Department (82F) China A/V Cabling at Main & GSB 19,390 2,327 17,063 17,063 17,063 The Department of Human Resources (92B) CIDA Institutional Strengthening/Capacity Building 444,273 15,961 1,607 156,092 (138,524) 305,749 45,000 260,749 Korea Korea/OAS Internship Program 40,000 4,800 35,200 35,200 35,200 TOTAL 444,273 40,000 15,961 1,607 160,892 (103,324) 340,949 45,000 295,949 The Department of Financial and Administrative Management Services (92C) CIDA Transformation and Modernization Project 514,467 291,608 (291,608) 222,859 113,155 109,705 The Department of Information and Technology Services (92D) Spain Consolidation Inter. Information 1,464 5,072 (5,079) 1,457 (1,464) 1 1 Spain Consolidation of the Exchange Information Network 4,125 4,125 (4,125) CIDA Devel System Comm Strat Org 150,001 39,922 50,923 (11,001) 139,000 139,000 CIDA Devel.&Appl.of Cent. Web Serv. 2,303 159 2,317 (2,158) 145 145 CIDA Effective use of the Internet 205 19 186 186 186 CIDA Implementation of a Web Security 5,133 212 5,152 (4,940) 193 193 CIDA Modern. & Strength. Firewall 3,184 102 3,213 (3,111) 73 73 TOTAL 166,209 45,672 (5,079) 67,206 (26,613) 139,596 139,596 The Department of Planning and Evaluation (92G) CIDA Development of Gender Indicators 22,675 22,500 175 175 175 Canada DPCE Strengthening 921 (921) (921) OAS SEDI DPCE Strengthening 436 (436) (436) Spain Exposition Mining Lives: Gervasio Sánchez 35,000 32,294 2,706 2,706 2,942 (237) SAIC Institution of politics SG 207,172 43,683 163,489 163,489 37,603 125,886 AECI Spain available resources for reprogramming 332,510 750 160,397 493,657 493,657 97,953 395,703 Spain Spain available resources for reprogramming 251,369 766 252,134 252,134 252,134 Spain Strengthening RBM 173,488 35,910 (35,910) 112,975 (112,975) 60,513 27,325 33,188 CIDA Strengthening RBM Systems 268,420 155,567 112,853 112,853 14,662 98,191 TOTAL 174,846 1,151,698 1,515 124,487 367,020 910,681 1,085,527 180,661 904,865 Centennial Celebration (102O) Various Centennial Celebration OAS 26,379 46,113 225,500 290,052 (18,439) 7,939 7,567 372 Resolution CP 831/2002 OAS GA Capital Building Fund 21,259 21,259 21,259 OAS GA CP/CAAP 3022/09 Use of Capital Building Fund 1,219,142 30,110 601,196 (571,086) 648,057 47,504 600,553 Various Fellowships, Scholarships and Training 7,505,184 200,162 226,414 3,791 430,367 7,935,551 7,935,551 OAS GA Main and Adm. Building Technology Improvement 14,961 6,992 (6,992) 7,969 135 7,834 Various Special Revenue Fund Technical Areas 150,827 2,300 747 90,452 (87,405) 63,421 23,468 39,953 Various Summit of Americas Mandates 920,655 834 13,306 1,459 232,570 (216,970) 703,685 86,998 616,687 TOTAL 9,832,028 3,134 200,162 270,578 5,250 931,209 (452,086) 9,379,943 158,105 9,221,837 Fund for Cooperation with Latin America & the Caribbean Mexico Fund for Cooperation Latin America & Caribbean 5,287,461 114,684 (1,886,313) (1,771,629) 3,515,832 3,515,832 101

Section II - Chapter 4 GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Organization of American States Specific Funds Statement of Changes in Fund Balance (Detail by Subprogram) From January 1, 2010 to December 31, 2010 (in USD) SCHEDULE 7B A B C D E F G=B+C+D+E F H=A+G I J=H I Organization, Donor & Project Cash Balance Jan. 1, 2010 Contributions Transfers Interest Returns & Other Income Expenditures Net Change Cash Balance Dec. 31, 2010 Obligations Fund Balance Dec. 31, 2010 Projects to Strengthen Democracy and Governance in Haiti United Nations CEP Elections 2009 (59,997) (59,997) (59,997) United Nations Electoral Technical Project in Haiti 3,082 3,082 3,082 USAID Electoral Technical Project in Haiti 3,092 3,092 3,092 Canada GS/OAS Haiti Desk 23,845 56,357 52,023 4,334 28,178 28,178 Various Haiti Emergency Relief Account 46,299 55,446 (9,147) (9,147) (9,147) United Nations Haiti Provision Electoral Council 5,434 5,434 5,434 USAID Human Rights Protection (LoC) (1,445) 1,018 427 1,445 USAID Mission to Support Strengthening Democ. in Haiti (LoC) (99,706) 99,706 99,706 2,623 (2,623) CIDA Modernization and Integration of Haiti's Civil Regist. 150,858 (115,498) (427) 7,243 (123,169) 27,689 27,689 CIDA Modernization of Civil Registry in Haiti 125,486 126,019 (126,019) (533) (533) USAID Reiss ID Cards in Gonaives (LoC) (16,539) 17,626 (21,141) 21,141 1,086 16,539 EEC Special Mission to Strength Democ Haiti 22,045 22,045 22,045 Norway Special Mission to Strength Democ Haiti 310 (310) (310) United Nations Special Mission to Strength Democ Haiti 238,233 238,233 238,233 USDS Special Mission to Strength Democ Haiti 1,072 1,072 1,072 Various Support Haiti Office 38 38 38 USINL Tech.Asst.to Haitian Nat.Pol. 6,204 70,374 (12) 62,308 8,054 14,258 814 13,444 USAID Vulnerable Groups (LoC) (114,473) 162,896 48,423 114,473 TOTAL 287,537 407,977 (90,662) 21,141 352,549 (14,094) 273,443 59,305 214,138 Oliver Jackman Fund Colombia Oliver Jackman Fund CIDH 71,149 2,103 2,103 73,253 73,253 Colombia Oliver Jackman Fund Court 71,001 2,100 2,100 73,101 73,101 Panama Oliver Jackman Fund Court 3,044 90 90 3,134 3,134 TOTAL 145,194 4,293 4,293 149,487 149,487 Unprogrammed Funds Argentina Argentina Unprogrammed Funds 46,851 (14,374) (14,374) 32,477 32,477 Argentina Argentina Unprogrammed Funds 36,080 36,080 36,080 36,080 Brazil EOM Unprogrammed Fund 14,638 (13,087) (13,087) 1,551 1,551 CIDA EOM Unprogrammed Fund 1,303,443 571,483 (1,814,421) 40,145 (1,202,794) 100,649 100,649 Korea EOM Unprogrammed Fund 52,361 60,000 (100,000) (40,000) 12,361 12,361 Norway EOM Unprogrammed Fund 4,962 4,962 4,962 Peru EOM Unprogrammed Fund 10,366 (10,366) (10,366) Switzerland EOM Unprogrammed Fund 1,958 1,958 1,958 USDS OAS DEMOC (Post ICR) 1,220,367 3,000,000 (2,168,892) 65,878 896,987 2,117,353 2,117,353 USDS OAS DEMOC (Pre ICR) 18,346 8,193 8,193 26,539 26,539 Various Program 1 Control Account 804 89 89 893 893 Various Program 2 Control Account 17,361 17,361 17,361 Various Program 3 Control Account 37 37 37 37 Various Program 4 Control Account 596 289 289 885 885 Various Program 5 Control Account 37,465 70 70 37,535 37,535 Various Program 6 Control Account 6,956 (540) 116 220 (644) 6,312 6,312 Various Program 7 Control Account 5,989 7,390 139 7,251 13,240 13,240 Various Program 8 Control Account 629 35,606 35,606 36,235 36,235 Various Program 9 Control Account 30 30 30 Various Seed Fund from Specific Funds 1,926 13,414 13,414 15,340 15,340 SAIC Spain Undistributed Funds 43,253 43,253 43,253 43,253 Spain Spain Undistributed Funds 1,228,649 (1,225,089) (1,225,089) 3,560 3,560 Chile Unprogrammed Funds 320,727 (150,000) 9,849 (140,151) 180,576 180,576 CIDA Unprogrammed Funds 782,866 6,849,985 (7,622,423) 61,055 (711,383) 71,483 71,483 Finland Unprogrammed Funds 284,740 (159,454) 4,586 (154,869) 129,871 129,871 102

GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Section II - Chapter 4 Organization of American States Specific Funds Statement of Changes in Fund Balance (Detail by Subprogram) From January 1, 2010 to December 31, 2010 (in USD) SCHEDULE 7B A B C D E F G=B+C+D+E F H=A+G I J=H I Organization, Donor & Project Cash Balance Jan. 1, 2010 Contributions Transfers Interest Returns & Other Income Expenditures Net Change Cash Balance Dec. 31, 2010 Obligations Fund Balance Dec. 31, 2010 SAIC Unprogrammed Funds 5,905,180 3,628,625 (3,419,320) 22,049 3,544 234,898 6,140,078 6,140,078 Spain Unprogrammed Funds 5,829,949 1,074,076 (5,302,940) 15,930 258,042 (3,954,892) 1,875,057 1,875,057 TOTAL 17,097,158 15,184,169 (21,869,899) 219,491 275,115 358 (6,191,482) 10,905,676 10,905,676 Interest to be reimbursed to USINL USINL CICAD Projects 121,479 227,723 (120,684) 107,039 228,518 228,518 USINL CICTE Projects 34,061 43,952 (34,061) 9,891 43,952 43,952 USINL Demining Projects 2,107 2,107 2,107 2,107 USINL DLAS Projects 11,000 18,793 (11,000) 7,793 18,793 18,793 TOTAL 166,539 292,574 (165,744) 126,830 293,369 293,369 Specific Funds Interest to ICR Various Specific Funds Interest to ICR (1,283,279) 1,283,279 Reconciliation / Write Off Various Equity Reconciliation Adjusting Entry (2007) (23,328) 43,361 43,361 20,034 20,034 Various Pre Conversion Account Receivables Write Off 2007 (232,876) (232,876) (232,876) TOTAL (256,204) 43,361 43,361 (212,842) (212,842) GRAND TOTAL 98,031,378 68,635,092 (2,021,301) 2,807,719 (4,422,164) 68,775,338 (3,775,992) 94,255,389 12,410,087 81,845,303 103

Section II - Chapter 4 GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Organization of American States Service and Revolving Funds Statement of Changes in Fund Balance From January 1, 2010 to December 31, 2010 (in USD) SCHEDULE 8 Program / Subprogram A B C D E F G=B+C+D+E F H=A+G I J=H I Cash Balance Jan. 1, 2010 Contributions Transfers Interest Returns & Other Income Expenditures Net Change Cash Balance Dec. 31, 2010 Obligations Fund Balance Dec. 31, 2010 Program 3 Autonomous and/or Decentralized Entities 32A Trust for the Americas Payroll Account 55,069 (55,069) (55,069) (55,069) 32R Retirement and Pension Payroll Account (146) 652,450 652,450 (146) (146) 32S OAS Staff Association Payroll Account 58,803 58,803 Total Program 3 (146) 711,253 766,322 (55,069) (55,215) (55,215) Program 7 Secretariat for Integral Development 72A SEDI's Operating Fund 18,119 (17,608) (17,608) 511 511 Program 9 Secretariat for Administration and Finance 92B Workmen's Compensation Fund 32,122 1,710 (1,710) 30,413 175 30,238 Human Resources CDT/External Account 98 98 98 Health Unit Vaccinations Account 2,269 17 5,515 5,055 476 2,745 2,745 34,489 17 5,515 6,765 (1,233) 33,256 175 33,081 92F Parking Services 502,259 16,181 645,541 691,560 (29,837) 472,422 184,724 287,698 Rental Hall of the Americas 228,510 4,842 175,637 253,788 (73,309) 155,201 32,331 122,870 Renovation of the GSB 232,055 232,055 232,055 Building Management & Maintenance 611,990 5,082,649 1,490,734 6,548,513 24,871 636,861 424,240 212,621 BIMS Account Building Maintenance (AG/RES. 2157) 22,000 20,000 20,000 42,000 42,000 Administrative projects (8,738) (8,738) (8,738) 1,588,076 20,000 5,082,649 21,023 2,311,912 7,493,861 (58,276) 1,529,800 641,295 888,506 Common Cost Revolving 718,744 (3,000) 699,260 890,927 (194,667) 524,077 377,712 146,365 Total Program 9 2,341,310 20,000 5,079,649 21,041 3,016,687 8,391,553 (254,176) 2,087,134 1,019,182 1,067,952 Multi Program Accounts Central Administration (Funds 601 602) 183,572 41,992 7,319 34,673 218,245 218,245 Technical Areas (Fund 605) 650,060 7,280 86,694 788,033 849,998 32,009 682,069 129,396 552,672 ICR under current policy (Fund 610) 2,522,286 (1,442,174) 7,665,713 6,414,330 (190,790) 2,331,496 791,769 1,539,727 Legal Settlements/Restitutions 140,140 2,100 2,100 142,240 142,240 Specific Fund Termination Reserve Fund 211,494 72,969 72,969 284,463 284,463 Tax Equalization (6,816,232) 15,112,407 66,092 8,267,884 6,910,615 94,382 94,382 Total Multi Program Accounts (3,108,681) 15,119,687 (1,355,480) 72,969 8,563,930 15,539,531 6,861,575 3,752,894 921,165 2,831,729 GRAND TOTAL (749,398) 15,139,687 3,706,561 94,010 12,291,870 24,697,406 6,534,722 5,785,324 1,940,347 3,844,977 104

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CHAPTER 5 LEO S. ROWE PAN AMERICAN FUND TABLE OF CONTENTS 109 REPORT OF INDEPENDENT AUDITORS 111 FINANCIAL STATEMENTS 111 Statements of Financial Position 111 Statements of Activities 112 Statements of Cash Flows 113 NOTES TO FINANCIAL STATEMENTS 113 Organization and Financing 113 Summary of Significant Accounting Policies 114 Investments 115 Loan Status 116 Due to MacLean Fund 116 Commitments and Contingencies 107

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GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Section II - Chapter 5 Ernst & Young LLP 1101 New York Ave, N.W. Washington DC 20005-4213 Tel: 202 327 6000 www.ey.com The Board of External Auditors Organization of American States REPORT OF INDEPENDENT AUDITORS We have audited the accompanying statements of financial position of the Leo S. Rowe Pan American Fund (the Fund), as of December 31, 2010 and 2009, and the related statements of activities and cash flows for the years then ended. These financial statements are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Fund s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Fund as of December 31, 2010 and 2009, and the changes in its net assets and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States. April 27, 2011 109

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GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Section II - Chapter 5 Organization of American States Leo S. Rowe Pan American Fund Statements of Financial Position As of December 31 (in USD) Notes 2010 2009 ASSETS Equity in OAS Treasury Fund and cash equivalents 1,030,173 245,862 Investments at fair value: 3 Mutual funds invested in equity investments 5,330,003 6,648,107 Mutual funds invested in fixed income securities 6,350,685 5,041,076 11,680,688 11,689,183 Loans receivable 4 Loans to students 1,679,736 1,386,307 Allowance for uncollectible loans (151,077) (127,795) Total loans to student 1,528,659 1,258,512 Loans to employees of the OAS 293,645 290,362 Other receivables 21,440 18,634 Total assets 14,554,605 13,502,553 LIABILITIES AND NET ASSETS Accounts payable 3,149 4,921 Guarantor deposits 44,092 29,093 Due to MacLean Fund 5 65,523 65,523 Total liabilities 112,764 99,537 NET ASSETS Committee designated 1,000,000 1,000,000 Available for loans 13,360,647 12,333,082 Supplementary guarantee for loans 18,005 11,238 MacLean Fellowship Fund 31,343 30,189 Student life self insurance 31,846 28,507 Total net assets 14,441,841 13,403,016 Total liabilities and net assets 14,554,605 13,502,553 Organization of American States Leo S. Rowe Pan American Fund Statements of Activities For the years ended December 31 (in USD) Notes 2010 2009 INCREASES Dividend and interest investment income 3 602,494 457,763 Realized gains on investments 3 246,005 11,894 Unrealized gains on investments 3 555,189 1,929,370 Other income 36,390 24,879 Total increases 1,440,078 2,423,906 DECREASES Administrative expenses 401,253 379,202 Total decreases 401,253 379,202 Change in net assets 1,038,825 2,044,704 Net assets at beginning of year 13,403,016 11,358,312 Net assets at end of year 14,441,841 13,403,016 The accompanying notes form part of the financial statements 111

Section II - Chapter 5 GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Organization of American States Leo S. Rowe Pan American Fund Statements of Cash Flows For the years ended December 31 (in USD) Notes 2010 2009 Operating activities Change in net assets 1,038,825 2,044,704 Adjustments to reconcile change in net assets to net cash provided by operating activities: Unrealized gain on investments (555,189) (1,929,370) Revaluation of allowance 27,967 31,486 Write off of student loans (4,685) (6,166) Changes in operating assets and liabilities: (Increase) decrease in loans to students (293,429) (318,007) (Increase) decrease in loans to employees (3,283) (43,739) (Increase) decrease in other receivables (2,806) 13,406 Increase (decrease) in liabilities 13,227 55 Net cash provided by (used in) operating activities 220,627 (207,631) Investing activities Purchase/sale of investments 836,199 407,464 Realized gain on investments (246,005) (11,894) Reinvestments of dividends received (26,510) (57,263) Net cash provided by investing activities 563,684 338,307 Net increase (decrease) in Equity in OAS Treasury Fund 784,311 130,676 Equity in OAS Treasury Fund and cash equivalents, beginning of year 245,862 115,186 Equity in OAS Treasury Fund and cash equivalents, end of year 1,030,173 245,862 The accompanying notes form part of the financial statements 112

NOTES TO FINANCIAL STATEMENTS 1. ORGANIZATION AND FINANCING The Leo S. Rowe Pan American Fund (the Fund), a charitable trust, was established in 1948 by the Governing Board of the General Secretariat of the Pan American Union (PAU) from monies and in accordance with the will of Dr. Leo S. Rowe, a former Pan American Union Director General. The purpose of the Fund is to provide loans to students from Latin American and Caribbean member states, who desire to study at colleges in the United States of America, and to provide education and emergency loans to staff of the Organization of American States (OAS). The Fund is administered within the General Secretariat by a special committee. The Committee of the Leo S. Rowe Pan American Fund (Committee) consists of representatives of the Permanent Council and Secretary General and has the responsibility to oversee and approve the Fund s activities. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting The accompanying financial statements are presented on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. The Committee designated net assets represent unrestricted assets in the amount of USD 1,000,000, comprised of investments that are not considered to be available for the purpose of granting loans. Equity in OAS Treasury Fund and Cash Equivalents All U.S. dollars available for use in carrying out the activities of the various funds of the OAS are combined in the OAS Treasury Fund. Each fund administered by the General Secretariat maintains equity to the extent of its cash balance retained therein. The General Secretariat administers the OAS Treasury Fund, and amounts not immediately required for operations are invested. Income earned by the OAS Treasury Fund is added to the equity of each fund in proportion to its balance. Cash equivalents include amounts invested in accounts that are readily convertible to cash. Investments with contractual maturities of ninety days or less from the date of original purchase are classified as cash and cash equivalents. Cash equivalents consist of money market funds. In accordance with the Fund s cash management policy of maximizing the amounts of funds invested in income-earning assets, the Fund routinely anticipates the timing and amount of future cash flows. Investments Investments are presented in the financial statements at fair value, which is primarily based upon quoted market prices. Unrealized gains and losses in the value of investments are recognized in the statement of activities as the change in fair value between periods. 113

Section II - Chapter 5 GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Allowance for Uncollectible Loans The Fund maintains an allowance for uncollectible loans for estimated losses that may result from the inability of students to make payments. Such allowances are based upon several factors, as explained in Note 4. Income Tax Status As an international organization, the OAS is exempt from United States of America Federal income taxes. This exemption also applies to this Fund. Evaluation of Subsequent Events The Fund evaluated subsequent events through April 27, 2011, the date on which the financial statements became available for issuance. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reported period. Actual results could differ from those estimates. 3. INVESTMENTS The Fund s investments, in general, are exposed to various risks, such as interest rate, credit and overall market volatility risks. Further, due to the level of risk associated with certain investment securities, it is reasonably possible that changes in the values of investment securities will occur in the near term and such changes could materially affect the amounts reported in the statements of financial position as net assets. The Fund adopted Financial Accounting Standards Board Accounting Standards Codification 820, Fair Value Measurements and Disclosures (FASB ASC 820) which defines and establishes a framework for measuring fair value. As of December 31, 2010 the Fund s investment portfolio was categorized as level 1 for which fair value is based on quoted prices in active markets for identical assets or liabilities. Investments held at December 31, 2010 and 2009 are shown in table 1 on the next page. 114

GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Section II - Chapter 5 Table 1 Investments As of December 31 (in USD) 2010 Fixed Income Securities Market Value as of 01/01/2010 Equity Investments Total 5,228,837 6,648,113 11,876,950 Dividends (1) 659,162 26,325 685,487 Purchases/Sales 1,313,136 (2,149,335) (836,199) Realized Gain and Loss 22,847 223,158 246,005 Unrealized Gain and Loss (26,559) 581,748 555,189 Market Value as of 12/31/2010 (2) 7,197,423 5,330,009 12,527,432 2009 Fixed Income Securities Market Value as of 01/01/2009 Equity Investments Total 5,964,279 4,135,081 10,099,360 Dividends (1) 218,564 25,226 243,790 Purchases/Sales (1,372,730) 965,266 (407,464) Realized Gain and Loss 11,894 11,894 Unrealized Gain and Loss 406,830 1,522,540 1,929,370 Market Value as of 12/31/2009 (2) 5,228,837 6,648,113 11,876,950 (1) The investment policy has changed since February 2009. The dividends are not reinvested. (2) Includes cash in Money Market 4. LOAN STATUS Loan Receivable and Allowance for Loan Losses Loans receivable as of December 31, 2010 and 2009 are stated at the amount of unpaid principal, reduced by an allowance for loan losses. The allowance for loan losses is established through a provision for loan losses charged to expenses. Loans are charged against the allowance for loan losses when management believes that the collectability of the principal is unlikely. The allowance is an amount that management believes will be adequate to absorb possible losses on existing loans that may become Table 2 uncollectible because of present conditions, and Uncollectible Loans As of December 31 based on evaluations of the collectability of loans (in USD) and prior loan loss experience. The allowance for loan losses is based on estimates and ultimate 2010 2009 losses may vary from the current estimates. Balance at beginning of year 127,795 102,475 Write off of loans receivable (4,685) (6,166) Revaluation of Allowance 27,967 31,486 Balance at end of year 151,077 127,795 Non-interest bearing loans are granted to students, payable on various terms not to exceed 53 months from the termination of the studies for which the loans are granted. The Committee has extended the repayment dates for certain loans. Management believes that the allowance of USD 151,077 or approximately 9% of the student loan balance as of December 31, 2010, is sufficient to provide for losses that may be incurred upon the ultimate realization of these loans. 115

Section II - Chapter 5 GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 During 2010 and 2009, the Fund approved new student loans aggregating approximately USD 720,710 and USD 669,073, respectively. The Fund received loan repayments of USD 420,927 and USD 362,358 in 2010 and 2009, respectively. New loans approved to employees for educational purposes or in emergency situations aggregated USD 176,178 and USD 178,314 in 2010 and 2009, respectively. The Fund received loan repayments of USD 184,723 and USD 143,412 in 2010 and 2009, respectively. The interest rate applied to employee loans is equivalent to the prime rate of the United States of America and is adjusted periodically. The interest rate on employee loans granted in 2010 and in 2009 was 3.25%. 5. DUE TO MACLEAN FUND The balance of Due to MacLean Fund as of December 31, 2010 and 2009 represents amounts due to the Julia MacLean Legacy Fund (The MacLean Fund), a fund established to provide fellowships for Peruvian women studying in Washington D.C, using the interest earned on the initial endowment to provide for these fellowships. The balance due to The MacLean Fund is equal to the initial endowment of USD 65,523 received from the estate of Mrs. Julia MacLean to The MacLean Fund. 6. COMMITMENTS AND CONTINGENCIES The Fund is not subject to any lawsuits which management believes will have a material adverse effect on the Fund s financial condition. 116

CHAPTER 6 ROWE MEMORIAL BENEFIT FUND TABLE OF CONTENTS 119 REPORT OF INDEPENDENT AUDITORS 121 FINANCIAL STATEMENTS 121 Statements of Financial Position 121 Statements of Activities 122 Statements of Cash Flows 123 NOTES TO FINANCIAL STATEMENTS 123 Organization and Financing 123 Summary of Significant Accounting Policies 124 Commitments and Contingencies 117

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GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Section II - Chapter 6 Ernst & Young LLP 1101 New York Ave, N.W. Washington DC 20005-4213 Tel: 202 327 6000 www.ey.com REPORT OF INDEPENDENT AUDITORS The Board of External Auditors Organization of American States We have audited the accompanying statements of financial position of the Rowe Memorial Benefit Fund (the Fund), as of December 31, 2010 and 2009, and the related statements of activities and cash flows for the years then ended. These financial statements are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Fund s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Fund as of December 31, 2010 and 2009, and the changes in its net assets and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States. April 27, 2011 119

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GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Section II - Chapter 6 Organization of American States Rowe Memorial Benefit Fund Statements of Financial Position As of December 31 (in USD) Notes 2010 2009 ASSETS Equity in the OAS Treasury Fund 195,306 210,115 Total assets 195,306 210,115 NET ASSETS 195,306 210,115 Total net assets 195,306 210,115 Organization of American States Rowe Memorial Benefit Fund Statements of Activities For the years ended December 31 (in USD) Notes 2010 2009 INCREASES Investment income from OAS Treasury Fund 5,781 4,941 Total increases 5,781 4,941 DECREASES Official recognition and awards 590 Subsidies 20,590 11,592 Total decreases 20,590 12,182 Change in net assets (14,809) (7,241) Net assets, beginning of year 210,115 217,356 Net assets, end of year 195,306 210,115 The accompanying notes form part of the financial statements 121

Section II - Chapter 6 GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Organization of American States Rowe Memorial Benefit Fund Statements of Cash Flows For the years ended December 31 (in USD) Notes 2010 2009 Operating activities Change in net assets (14,809) (7,241) Net cash provided (used) by operating activities (14,809) (7,241) Net increase(decrease) in Equity in OAS Treasury Fund (14,809) (7,241) Equity in OAS Treasury Fund, beginning of year 210,115 217,356 Equity in OAS Treasury Fund, end of year 195,306 210,115 The accompanying notes form part of the financial statements 122

NOTES TO FINANCIAL STATEMENTS 1. ORGANIZATION AND FINANCING The assets of the Rowe Memorial Benefit Fund (the Fund) have been accumulated principally from contributions received from Dr. Leo S. Rowe, a former Director General of the Pan American Union. These assets are held in trust to provide certain welfare benefits for employees of the Organization of American States (OAS). Administrative functions of the Fund are provided without charge by the General Secretariat of the Organization of American States (GS/OAS). 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting The accompanying financial statements are presented on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. Equity in OAS Treasury Fund All U.S. dollars available for use in carrying out the activities of the various funds of the OAS are combined in the OAS Treasury Fund. Each fund administered by the GS/OAS maintains equity to the extent of its cash balance retained therein. The OAS Treasury Fund is administered by the GS/OAS, and amounts not immediately required for operations are invested. Income earned by the OAS Treasury Fund is added to the equity of each fund in proportion to its balance. In-Kind Contributions No amounts are recorded in the accompanying financial statements relating to the receipt of contributed services or facilities provided to the Fund by the GS/OAS as the services do not involve specialized skills and the use of facilities is minimal. Income Tax Status As an international organization, the OAS is exempt from United States of America Federal income taxes. This exemption also applies to the Fund. Evaluation of Subsequent Events The Fund evaluated subsequent events through April 27, 2011, the date on which the financial statements became available for issuance. 123

Section II - Chapter 6 GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. 3. COMMITMENTS AND CONTINGENCIES The Fund is not subject to any lawsuits which management believes will have a material adverse effect on the Fund s financial condition. 124

CHAPTER 7 OAS MEDICAL BENEFITS TRUST FUND TABLE OF CONTENTS 127 REPORT OF INDEPENDENT AUDITORS 129 FINANCIAL STATEMENTS 129 Statements of Financial Position 129 Statements of Activities 130 Statements of Cash Flows 131 NOTES TO THE FINANCIAL STATEMENTS 131 Description of the Trust 132 Summary of Significant Accounting Policies 133 Investments 134 Net Assets Designated for Unpaid Claims 134 Actuarial Present Value of Accumulated Post Retirement Plan Benefits 134 Contributions 134 Tax Status 134 Benefit Obligations 134 Commitments and Contingencies 125

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GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Section II - Chapter 7 Ernst & Young LLP 1101 New York Ave, N.W. Washington DC 20005-4213 Tel: 202 327 6000 www.ey.com REPORT OF INDEPENDENT AUDITORS The Board of External Auditors Organization of American States We have audited the accompanying statements of financial position of the General Secretariat of the Organization of American States Medical Benefits Trust Fund (the Trust), as of December 31, 2010 and 2009, and the related statements of activities and cash flows for the years then ended. These financial statements are the responsibility of the Trust's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Trust s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trust s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Trust as of December 31, 2010 and 2009, and the changes in its net assets and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States. The accompanying statements are those of the Organization of American States Medical Benefits Trust Fund, which is established under the Organization of American States Medical Benefits Plan; the statements do not purport to present the financial status and the changes in financial status of the Organization of American States Medical Benefits Plan. The statements do not report certain expenses, liabilities and disclosures necessary for a fair presentation of the financial status and changes in financial status of the Organization of American States Medical Benefits Plan in conformity with accounting principles generally accepted in the United States. April 27, 2011 127

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GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Section II - Chapter 7 Organization of American States OAS Medical Benefits Trust Fund Statements of Financial Position As of December 31 (in USD) Notes 2010 2009 ASSETS Equity in OAS Treasury Fund and cash equivalents 1,475,090 322,948 Mutual fund investments 3 27,115,221 23,115,338 Accounts paid in advance to Carefirst 362,262 317,103 Retiree accounts receivable 5,190 8,498 Other accounts receivable 39,122 30,055 Total assets 28,996,885 23,793,942 LIABILITIES AND NET ASSETS Deferred income 631,158 630,047 Other accounts payable 2,500 459 Total liabilities 633,658 630,506 NET ASSETS Designated for unpaid claims 4 1,241,057 1,204,727 Undesignated 27,122,170 21,958,709 Total net assets 28,363,227 23,163,436 Total liabilities and net assets 5 28,996,885 23,793,942 Organization of American States OAS Medical Benefits Trust Fund Statements of Activities For the years ended December 31 (in USD) Notes 2010 2009 INCREASES Contributions 6 12,359,939 12,181,663 Investment income 1,102,517 813,569 Other income 495,552 447,348 Net realized and unrealized gain on investments 1,939,683 3,037,042 Total increases 15,897,691 16,479,622 DECREASES Claims paid Carefirst 9,521,214 10,076,610 Carefirst services 567,257 681,288 Stop loss insurance premiums 245,089 238,920 Total expenses related to Carefirst 10,333,560 10,996,818 Kaiser health insurance 240,543 212,914 Other expenses not related to Carefirst 123,797 92,500 Total expenses not related to Carefirst 364,340 305,414 Total decreases 10,697,900 11,302,232 Change in net assets 5,199,791 5,177,390 Net assets, beginning of year 23,163,436 17,986,046 Net assets, end of year 28,363,227 23,163,436 The accompanying notes form part of the financial statements 129

Section II - Chapter 7 GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Organization of American States OAS Medical Benefits Trust Fund Statements of Cash Flows For the years ended December 31 (in USD) Notes 2010 2009 Operating activities Change in net assets 5,199,791 5,177,390 Net realized and unrealized (gain) loss on investments (1,939,683) (3,037,043) Decrease (increase) in receivables (5,759) 283,784 (Increase) in accounts paid in advance to Carefirst (45,159) (172,387) Increase in deferred income 1,111 67,580 Increase in other accounts payable 2,041 459 Net cash provided by operating activities 3,212,342 2,319,783 Investing activities Sale of investments 434,271 Purchase of investments (1,006,044) (4,228,514) Dividends and capital gains reinvested (1,054,156) (739,029) Net cash used in investing activities (2,060,200) (4,533,272) Net increase (decrease) in Equity in OAS Treasury Fund and cash equivalents 1,152,142 (2,213,489) Equity in OAS Treasury Fund and cash equivalents, beginning of year 322,948 2,536,437 Equity in OAS Treasury Fund and cash equivalents, end of year 1,475,090 322,948 The accompanying notes form part of the financial statements 130

NOTES TO FINANCIAL STATEMENTS 1. DESCRIPTION OF THE TRUST General The OAS Medical Benefits Trust (Trust) is a fund established in April 1982 by the General Secretariat of the Organization of American States (GS/OAS) to carry out certain provisions of the GS/OAS Medical Benefits Plan (Plan), including investment of assets and payment of claims and administrative expenses. Pursuant to the provisions of the trust agreement dated June 27, 2000, the sole Trustee of the Trust is the General Secretary. The Secretary General delegates his duties to five (5) Delegate Trustees appointed by him, two of them in consultation with the staff association and the Retiree Association of the GS/OAS. The Trust s assets are held in custody by the Northern Trust Company. Eligibility and Benefits The Plan provides health benefits, including medical, dental and prescription drugs to GS/OAS employees and their covered eligible dependents. Retired employees are entitled to maintain their insurance coverage as determined by certain criteria involving age and years of service. Upon separation from service with the GS/OAS, if a former staff member does not qualify to remain indefinitely in the GS/OAS health plan, and if the eligible former staff member wishes to remain in the health plan beyond the first month, he/she must pay in advance the full insurance premium. Staff members have the option of choosing health coverage, from two available carriers: Self-Insured Health Plan administered by CareFirst Blue Cross Blue Shield (BCBS), which it is not underwritten by a commercial insurance company. It is a self-insured scheme meaning that claims are paid by BCBS directly from the OAS Medical benefits Trust Fund. The income of the Fund is derived from contributions paid by the GS/OAS and subscribers. BCBS is a preferred provider organization insuring approximately 98% of staff members and retirees. Insured Plan by Kaiser Permanente, which is a Health Maintenance Organization insuring approximately 2% of staff members and retirees. Contributions Employees and retirees participating in the Plan contribute a specified amount to the Trust, determined periodically by GS/OAS, for self coverage and their eligible dependents. Source of contributions: Staff Share is 1/3 of the premium, recognized and earned on a monthly basis, for the period in which health care coverage is in effect. 131

Section II - Chapter 7 GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 OAS Share is 2/3 of the premium, recognized and earned on a monthly basis, for the period health care coverage is in effect. Retirees Share is 1/3 of the premium. Annual premium is divided in 12 monthly installment which are billed to retirees twice a year, in January and July. Retirees have the option of paying in advance or on a monthly basis. OAS Share for Retirees is 2/3 of the premium, recognized on a quarterly basis, for the period in which health care coverage is in effect. Other Shares are the full amount of the premium, which are recognized and earned on a monthly basis. These include Inter-American Defense Board (IADB); Inter-American Court of Human Rights - Costa Rica (IACHR); Participation of eligible former GS/OAS staff member. Claims Payments Claims payment expense is recognized in the period in which the claims are received by the third-party administrator of the Plan and billed to the Trust. Claims billed to the Trust by the third-party administrator, but not paid as of December 31, 2010 and 2009, are included in accounts payable on the accompanying statements of financial position. Trust Rights and Obligations The Secretary General, as the Trustee, has the right under the Plan to modify the benefits provided to active and retired employees. All funds available will be used exclusively to pay benefits under the Plan until the funds are depleted. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting The accompanying financial statements are presented on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. Equity in OAS Treasury Fund and Cash Equivalents All U.S. dollars available for use in carrying out the activities of the various funds of the OAS are combined in the OAS Treasury Fund. The Trust maintains equity to the extent of its cash balances retained therein. The GS/ OAS administers the OAS Treasury Fund and invests amounts not immediately required for operations. Subject to certain conditions, income earned by the OAS Treasury Fund is added to the equity of each fund in proportion to its balance. Cash equivalents include amounts invested in accounts that are readily convertible to cash. Investments with contractual maturities of ninety days or less from the date of original purchase are classified as cash and cash equivalents. Cash equivalents consist of money market funds. In accordance with the Trust s cash management policy of maximizing the amounts of funds invested in income-earning assets, the Trust routinely anticipates the timing and amount of future cash flows. 132

GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Section II - Chapter 7 Investments Investments are presented in the financial statements at fair value, which is primarily based upon quoted market prices. Unrealized gains and losses in the value of investments are recognized in the statement of activities as the change in fair value between periods. Administrative Expenses The Trust pays all administrative expenses of the Plan. Total expenses paid by the Trust on behalf of the Plan for the years ended December 31, 2010 and 2009 were USD 567,257 and USD 681,288 respectively. Revenue Recognition Contributions are recognized when earned. Contributions received in advance of the benefit period are deferred until earned. Evaluation of Subsequent Events The Trust evaluated subsequent events through April 27, 2011, the date on which the financial statements became available for issuance. Use of Estimates The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. 3. INVESTMENTS The Trust s investments, in general, are exposed to various risks, such as interest rate, credit and overall market volatility risks. Further, due to the level of risk associated with certain investment securities, it is reasonably possible that changes in the values of investment securities will occur in the near term and such changes could materially affect the amounts reported in the statements of financial position as net assets. The Trust adopted Financial Accounting Standards Board Accounting Standards Codification 820, Fair Value Measurements and Disclosures (FASB ASC 820) in 2008 which defines and establishes a framework for measuring fair value. As of December 31, 2010, the Trust s investment portfolio was categorized as level 1 for which fair value is based on quoted prices in active markets for identical assets or liabilities. The values of individual investments of the Trust are shown in Table 1. Table 1 Fair Value of Individual Investments For the years ended December 31 (in USD) 2010 2009 Vanguard Index SP 500 10,535,381 8,153,912 Columbia Fund 3,633,159 3,539,043 Vanguard Mid Cap 1,883,189 1,499,090 Vanguard Small Cap 1,597,457 1,249,505 Pimco Total Return 8,908,800 8,186,001 Pimco High Yield 557,235 487,787 Total 27,115,221 23,115,338 133

Section II - Chapter 7 GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 4. NET ASSETS DESIGNATED FOR UNPAID CLAIMS As of December 31, 2010 and 2009, USD 1,241,057 and USD 1,204,727 respectively, of net assets have been designated for medical claims payable. This amount is computed based upon past claims payment experience, and in management s opinion, is a reasonable estimate of claims incurred but not reported as of December 31, 2010 and 2009. The liability for claims incurred but not reported under the Plan is a liability of the Plan and OAS, the employer organization. 5. ACTUARIAL PRESENT VALUE OF ACCUMULATED POST RETIRMENT PLAN BENEFITS The accrued or past service liabilities as of December 31, 2010 (date of last actuarial study) for postretirement health and life insurance benefits are approximately USD 88.5 million (USD 85.2 million for retiree health benefits and USD 3.3 million for retiree life insurance). As of December 31, 2010, the Trust s assets totaled USD 28,996,885. These funds are not for coverage of life insurance benefits. These liabilities under the Plan are liabilities of OAS, the employer organization, to the extent Trust funds are not available. 6. CONTRIBUTIONS The breakdown of the contributions towards the two available carriers of the plan by contributors is shown in Table 2. 7. TAX STATUS As an international organization, the OAS is exempt from U.S. Federal income taxes. As a result, this exemption applies to the Trust. Table 2 Contributions For the years ended December 31 (in USD) 2010 2009 For Carefirst BCBS: OAS 5,106,571 4,879,869 Staff 2,552,196 2,434,957 OAS for retirees 2,697,682 2,977,682 Retirees 1,595,720 1,522,126 IADB 81,880 77,244 CIDH 88,058 78,264 Subtotal 12,122,107 11,970,142 For Kaiser Permanente: OAS 125,325 111,267 Staff 62,663 55,635 OAS for retirees 37,241 12,201 Retirees 12,603 32,418 Subtotal 237,832 211,521 Total 12,359,939 12,181,663 8. BENEFIT OBLIGATIONS Health costs incurred by participants and their eligible dependents are covered by a group self-insurance contract maintained by the Trust. It is the present intention of the GS/OAS and the Trust to continue obtaining insurance coverage for benefits. Insurance premiums for the future benefit obligations will be funded by contributions to the Trust in those later years. 9. COMMITMENTS AND CONTINGENCIES The Trust is not subject to litigation which management believes will have a material adverse effect on the Trust s financial condition. 134

SECTION III Courtesy of OAS Columbus Memorial Library Photograph Collection FINANCIAL STATEMENTS OF AGENCIES AND ENTITIES RELATED TO THE ORGANIZATION OF AMERICAN STATES (OAS) 137 Chapter 8 - Trust for the Americas 147 Chapter 9 - Inter-American Defense Board 135

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CHAPTER 8 TRUST FOR THE AMERICAS TABLE OF CONTENTS 139 REPORT OF INDEPENDENT AUDITORS 141 FINANCIAL STATEMENTS 141 Statements of Financial Position 141 Statements of Activities 142 Statements of Cash Flows 143 NOTES TO FINANCIAL STATEMENTS 143 Organization and Financial Statements 143 Summary of Significant Accounting Policies 145 Significant Contributions 145 Project Expenditures 137

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GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Section III - Chapter 8 Ernst & Young LLP 1101 New York Ave, N.W. Washington DC 20005-4213 Tel: 202 327 6000 www.ey.com REPORT OF INDEPENDENT AUDITORS The Board of External Auditors Organization of American States We have audited the accompanying statements of financial position of the Trust for the Americas (the Trust), as of December 31, 2010 and 2009, and the related statements of activities and cash flows for the years then ended. These financial statements are the responsibility of the Trust's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Trust s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trust s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Trust as of December 31, 2010 and 2009, and the changes in its net assets and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States. April 27, 2011 139

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GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Section II - Chapter 8 Organization of American States Trust for the Americas Statements of Financial Position As of December 31 (in USD) Notes 2010 2009 ASSETS Equity in OAS Treasury Fund 1,796,909 1,649,659 Government grants receivable 319,303 271,861 Prepaid expenses 9,920 Total assets 2,126,132 1,921,520 LIABILITIES AND NET ASSETS Accounts payable 37,322 31,207 Deferred revenue 16,730 Total liabilities 37,322 47,937 Temporarily restricted net assets 1,857,775 1,852,165 Unrestricted net assets 231,035 21,418 Total net assets 2,088,810 1,873,583 Total liabilities and net assets 2,126,132 1,921,520 Organization of American States Trust for the Americas Statements of Activities For the years ended December 31 (in USD) Notes 2010 2009 Unrestricted net assets INCREASES Contributions 1,583,617 1,929,883 Interest distribution to fund 40,794 29,117 Refunds 2,974 28,015 In kind contributions 3,416,315 929,711 OAS in kind contributions 369,730 316,871 Released from restrictions 2,171,267 1,788,433 Total increases 7,584,697 5,022,030 DECREASES Transfers out 3,388 53,570 Return to donors 4,214 18,890 Administrative and project expenses 3,581,432 3,758,158 In kind expenses 3,416,315 929,711 OAS in kind expenses 369,730 316,871 Total decreases 7,375,079 5,077,200 Change in unrestricted net assets 209,618 (55,170) Temporarily restricted net assets Contributions 2,176,876 2,316,396 Released from restriction (2,171,267) (1,788,433) 5,609 527,963 Change in net assets 215,227 472,793 Net assets, beginning of year 1,873,583 1,400,790 Net assets, end of year 2,088,810 1,873,583 The accompanying notes form part of the financial statements 141

Section II - Chapter 8 GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Organization of American States Trust for the Americas Statements of Cash Flows Years ended December 31 (in USD) Notes 2010 2009 Operating activities Change in net assets 215,227 472,793 Adjustments to reconcile change in net assets to net cash from operating activities: (Increase) decrease in government grants receivable (47,442) (17,855) (Increase) decrease in prepaid expenses (9,920) Increase (decrease) in account payable 6,115 1,660 Increase (decrease) in deferred revenue (16,730) 16,730 Net increase (decrease) in equity in OAS Treasury Fund 147,250 473,328 Equity in OAS Treasury Fund, beginning of the year 1,649,659 1,176,331 Equity in OAS Treasury Fund, end of the year 1,796,909 1,649,659 The accompanying notes form part of the financial statements 142

NOTES TO FINANCIAL STATEMENTS 1. ORGANIZATION AND FINANCIAL STATEMENTS The Trust for the Americas (the Trust) was created in 1997 as a non profit entity incorporated in the District of Columbia. The Trust serves the Organization of American States (OAS) as an entry point to expand hemispheric cooperation and enhance economic development by providing a channel for information, services, goods and funds. In addressing central goals of OAS, and in response to the Summits of the Americas, the Trust mobilizes resources to confront the problems posed by extreme poverty and to promote democracy through actions that are environmentally, economically and socially sustainable, and that foster public participation, particularly of groups previously excluded from the international dialogue. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The operation of the Trust began in fiscal year 1998 with the principal focus on establishing the framework within which to begin program activities. Funding to establish the Trust was provided by Inter-American Council for Integral Development (CIDI) through a specific fund created to finance CIDI programs that strengthen partnerships with private enterprises and foundations. The resources have been provided by contributions from corporate donors, government grants (from the U.S. Federal government as well as from other countries such as Canada and Colombia), multilateral organizations, in kind contributions from the Executive Secretariat for Integral Development (SEDI) represented in staff and office support, and in-kind donations from corporate and other donors. Basis of Accounting The accompanying financial statements are prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. Equity in OAS Treasury Fund All U.S. dollars available for use in carrying out the activities of the various funds of OAS are combined in the OAS Treasury Fund. The Trust for the Americas Fund maintains equity to the extent of its cash balances retained therein. The General Secretariat administers the OAS Treasury Fund and invests amounts not immediately required for operations. Subject to certain conditions, income earned by the OAS Treasury Fund is added to the equity of each fund in proportion to its balance. Fund Accounting and Net Asset Classifications The Trust has adopted FASB Accounting Standards Codification (ASC) No. 958-205 Presentation of Financial Statements of Not-for-Profit Entities. The Trust s accounts are classified for accounting and reporting purposes into projects established according to their nature and purposes. In the financial statements, projects that have similar 143

Section II - Chapter 8 GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 characteristics have been combined into the following two net asset categories: Temporarily Restricted Net assets that are subject to donor imposed stipulations that will be met either by passage of time or by the actions of the Trust. As the restrictions are satisfied, temporarily restricted net assets are reclassified to unrestricted net assets and are reported in the accompanying statements of activities as net assets released from restrictions. The temporary restrictions of the Trust relate to contributions to be used for projects specified by the donor. Unrestricted Net assets that are not subject to donor-imposed stipulations and that may be expended for any purpose in achieving the primary objective of the Trust. Government Grants The Trust has an ongoing significant grant agreement with the United States government in which the Trust draws down funds through the Letter of Credit system. This grant agreement is described in further detail in Note 3. The United States grant awards are recognized as revenue to the extent of expenses incurred for purposes specified by the grantor. Expenses incurred in excess of cash received from the letter of credit draw down of the United States funds are shown as government grants receivable. Contributions Contributions are recorded when earned. The Trust records contributions as temporarily restricted if funds are received with donor stipulations that limit their use either through purpose or time restrictions. When donor restrictions expire, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the accompanying statements of activities as net assets released from restrictions. ln-kind Contributions The Trust received in-kind contributions that are donated to the Trust as part of an agreement (the Agreement) with the OAS. Under the Agreement, the OAS supports the Trust with space and executive staff support to enable the Trust to accomplish its objectives. The OAS In-Kind contributions to the Trust amount to USD 369,730 and USD 316,871 for the years ended December 31, 2010 and 2009, respectively. These amounts are included as revenue and expenses in the accompanying statements of activities for the years ended December 31, 2010 and 2009. The Trust received in-kind contributions in 2010 in the form of software donated by the Microsoft Corporation for the Trust s Program of opportunities in employment through Technology in America (POETA) program in Latin America. In addition, beginning in 2010, the Trust records in-kind contributions received from several partner organizations throughout the region, which have supported the implementation of the Trust s programs. The Trust in 2010 changed its policy regarding in-kind contributions in order to capture contributions outside from the United States. Federal Income Tax The Trust is exempt from Federal income tax under section 501(a) of the Internal Revenue Code as an organization described in section 501(c) (3). The Trust is not a private foundation within the meaning of section 509(a) of the Code, because it is an organization described in section 509(a)(1)(A)(vi). 144

GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Section II - Chapter 8 Evaluation of Subsequent Events The Trust evaluated subsequent events through April 27, 2011, the date on which the financial statements became available for issuance. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reported period. Actual results could differ from those estimates. 3. SIGNIFICANT CONTRIBUTIONS The Trust received a USD 678,000 contribution from Microsoft to continue the implementation of its Program of Opportunities in Employment through Technology in the Americas (POETA). The program is implemented in 20 countries of the Western Hemisphere and focuses on people with disabilities, at-risk youth and demobilized combatants (in Colombia). The Trust also received contributions from other private donors such as Citibank and the Julius Baer foundation to expand the POETA program in Argentina and Peru, respectively. Finally, Open Society Institute approved a contribution to build the capacity of civil society organizations to advocate for better inclusion laws in Central America. 4. PROJECT EXPENDITURES The majority of the Trust s 2010 project expenditures correspond to its two main initiatives and were incurred as follows: Democracy, Governance and Human Rights (DGHR) Projects: USD 1,508,702 Information and Communication Technologies for Development (ICT4D) Projects: USD 1,438,346 These expenditures are included in Administrative and Project Expenses on the Statements of Activities. Courtesy of OAS Columbus Memorial Library Photograph Collection 145

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CHAPTER 9 INTER-AMERICAN DEFENSE BOARD TABLE OF CONTENTS 149 REPORT OF INDEPENDENT AUDITORS 151 FINANCIAL STATEMENTS 151 Statements of Financial Position 151 Statements of Activities 152 Statements of Cash Flows 153 NOTES TO FINANCIAL STATEMENTS 153 Organization 153 Summary of Significant Accounting Policies 154 Income Taxes 154 Pension Plan and Employee Benefits 154 Funding 155 In-kind Contributions 155 Program Expenses 156 Commitments and Contingencies 147

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GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Section III - Chapter 9 Ernst & Young LLP 1101 New York Ave, N.W. Washington DC 20005-4213 Tel: 202 327 6000 www.ey.com REPORT OF INDEPENDENT AUDITORS The Board of External Auditors Organization of American States We have audited the accompanying statements of financial position of the Inter-American Defense Board (the Board), as of December 31, 2010 and 2009, and the related statements of activities and cash flows for the years then ended. These financial statements are the responsibility of the Board's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Board s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Board s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Board as of December 31, 2010 and 2009, and the changes in its net assets and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States. April 27, 2011 149

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GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Section II - Chapter 9 Organization of American States Inter-American Defense Board Statements of Financial Position As of December 31 (in USD) Notes 2010 2009 ASSETS Cash and cash equivalents 1,230,470 535,739 Accounts receivable 605 8,548 Prepaid expenses 18,863 8,913 Property & equipment 1,007,542 990,026 Less: Accumulated depreciation 903,004 873,319 Total assets 1,354,476 669,907 LIABILITIES AND NET ASSETS Accounts payable and accrued expenses 52,070 49,900 Deferred Income 742,120 Accrued leave 57,458 55,438 Total liabilities 851,648 105,338 Unrestricted net assets 502,828 564,569 Total liabilities and net assets 1,354,476 669,907 Organization of American States Inter-American Defense Board Statements of Activities For the years ended December 31 (in USD) Notes 2010 2009 INCREASES Funding received from OAS 5 1,456,000 1,456,000 In kind contribution 6 3,597,290 3,517,758 Reimbursement income 6 1,173,423 997,471 Interest and other income 5,844 10,360 Total revenue 6,232,557 5,981,589 DECREASES Personnel 608,181 641,312 Other general and administrative 687,594 603,094 Depreciation 29,685 71,176 In kind expense 6 3,597,290 3,517,758 Contracts 1,371,548 969,773 Total expenses 6,294,298 5,803,113 Change in net assets (61,742) 178,476 Net assets, beginning of year 564,569 386,093 Net assets, end of year 502,828 564,569 The accompanying notes form part of the financial statements 151

Section II - Chapter 9 GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Organization of American States Inter-American Defense Board Statements of Cash Flows For the years ended December 31 (in USD) Notes 2010 2009 Operating activities: Change in net assets (61,742) 178,476 Adjustments to reconcile change in net assets to net cash from operating activities: Depreciation 29,685 71,176 Prepaid expenses (9,950) (4,293) Account receivable 7,943 Account payable 2,170 (17,404) Accrued leave 2,020 (684) Net cash (used in) provided by operating activities (29,873) 227,271 Investing activities: Purchase of property and equipment (17,516) (41,235) Financing activities: Deferred income operations 742,120 Increase (decrease) in cash and cash equivalents 694,731 186,036 Cash and cash equivalents, beginning of the year 535,739 349,703 Cash and cash equivalents, end of year 1,230,470 535,739 The accompanying notes form part of the financial statements 152

GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 NOTES TO FINANCIAL STATEMENTS 1. ORGANIZATION The Inter-American Defense Board (the Board) was established on March 30, 1942 and designated, by executive order, as a public international organization on March 26, 1951 by the General Assembly of the Organization of American States (OAS). On March 15, 2006 by OAS resolution (AG/RES.1 XXXII-E/06) the Board became an entity of the OAS. The Board is comprised of military officers representing the highest echelons of their nation s defense establishments. The mission of the Board is to provide the OAS and its member states with technical and educational advice and consultancy services on matters related to military and defense in the Western Hemisphere in order to contribute to the fulfillment of the OAS Charter. The Inter-American Defense College (the College) was established in 1962 as a sub-organization of the Board. Its primary goal is to prepare military officers and civilian officials for senior leadership roles in their respective countries throughout the Western Hemisphere. The Board is an entity of the OAS and receives a substantial portion of its operating budget from the OAS; however, the two organizations maintain separate management structures. The Board has experienced a significant reduction of funding provided by the OAS. In response to budgetary constraints, the Board has dramatically reduced its civilian work force from 87 civilian personnel in 1987 to 6 civilian personnel at the end of fiscal year 2010. The administration has reduced expenses and personnel cost to minimal levels and management believes that further reductions may compromise the organization s ability to adequately perform its mission. Management believes that the lack of civilian personnel affects the institutional memory of the organization, program continuity and adds significant management challenges to the effective operation. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying financial statements are prepared on the accrual basis of accounting, conforming with the accounting principles generally accepted in the United States of America. Fair Value of Financial Instruments The Board s financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses. In management s opinion, the amounts carried of the financial instruments approximate their fair value as of December 31, 2010 and 2009. As of December 31, 2010 the Board s investment portfolio was categorized as level 1 for which fair value is based on quoted prices in active markets for identical assets or liabilities. 153

Section II - Chapter 9 GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Cash and Cash Equivalents The Board considers all investments with maturity of three months, or less, from the date of purchase to be cash equivalents. Cash equivalents consist of money market funds as of December 31, 2010 and 2009. Accounts Receivable Accounts receivable, as of December 31, 2010 and 2009, consist primarily of amounts related to costs incurred by the Board which are reimbursable by U.S. Department of Defense (DoD). Use of Estimates Using GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported amount of revenue and expense at the date of the financial statements during the reported period. Actual results could differ from those estimates. Property and Equipment Equipment and furniture are stated at cost, net of accumulated depreciation. Depreciation expense is recognized using the straight-line method over the estimated useful life of the assets. The useful life of equipment and furniture is three and ten years, respectively. Evaluation of Subsequent Events The Board evaluated subsequent events through April 27, 2011, the date on which the financial statements became available for issuance. 3. INCOME TAXES The Board is a public international organization and as such, is exempt from paying U.S. Government income tax. 4. PENSION PLAN AND EMPLOYEE BENEFITS All employees of the Board participate in a contributory multi-employer pension plan administered by the Retirement and Pension Plan Committee of the OAS. Contributions to the Plan by the Board and employees are based on fixed percentages of annual pensionable salaries in accordance with United Nations tables and were approximately USD 83,133 and USD 76,738 in fiscal years 2010 and 2009, respectively. The Board provides certain benefits to its employees, which accrue to them during periods of employment and are payable upon separation. All employees are entitled to accrued leave. 154

GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Section II - Chapter 9 5. FUNDING Funding received from the OAS as of December 31, 2010 and 2009 was USD 1,456,000 and USD 1,456,000, respectively. The Board relies upon the OAS funding for many of its activities and requires continued financial support from the OAS. The headquarters of the Inter-American Defense Board is a building owned by the General Secretariat of the OAS, located at 2600 16TH Street, N.W. Washington, DC 20441. The Inter-American Defense College building is owned by the Department of Defense of the United States, located at Ft Lesley J. McNair in Washington, DC. 6. IN-KIND CONTRIBUTIONS The Board received in-kind contributions from the OAS, DoD, and member states totaling approximately USD 3,597,290 and USD 3,517,758 for the years ending December 31, 2010 and 2009, respectively. These in-kind contributions were valued at the fair market value and represented the use of office space and transportation provided to the Board and College by the DoD and OAS. From the amounts mentioned above, the OAS provided in-kind contributions for the years ended December 31, 2010 and 2009 in the amounts of USD 1,173,000 or 32.6%, and of USD 1,173,000 or 33.4%, respectively, for the use of the building at 2600 NW 16th St., Washington DC. The DoD provided in-kind support for the years ended December 31, 2010 and 2009 in the amount of USD 1,828,500 or 50.8%, and USD 1,828,500 or 52% for the use of the building at Fort McNair, Washington DC. Other in-kind contributions support provided by the DoD and other member states of the OAS for the year ended December 31, 2010 and 2009 was USD 595,790 and USD 516,258, respectively, which included the use of U.S. aircraft on incountry transportation for student trips. These figures do not include the services provided by approximately 150 military personnel, delegates, students and advisors as the Board deems it impractical to measure the value of those contributions. The College received support from DoD for several seminars and other academic activities. This support was USD 1,173,423 and USD 997,472 for the years ended December 31, 2010 and 2009, respectively and is included in the Board reimbursement income. These initiatives were in addition to the normal operations of the College providing greater participation opportunities to all OAS member states and enhanced curriculum. While the Board intends to continue seeking external funding for such events, all future contributions will be subject to individual event approval by the DoD agency providing that funding. The College received USD 346,656 and USD 77,850 for its DoD funded scholarship program as of December 31, 2010 and 2009, respectively. This scholarship program is designed to increase student participation from OAS member states. 7. PROGRAM EXPENSES The Board s expenses were primarily divided in its main organs: the Council of Delegates, the Sub Secretariat for Advisory Services (SAS and former International Staff)/ The Sub Secretariat for Administration (SACS); and the 155

Section II - Chapter 9 GS/OAS - ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Inter-American Defense College. The OAS funding expenses incurred during 2010 and 2009 were calculated approximately as follows: Table 1 OAS Funding Expenses As of December 31 (in USD) 2010 2009 Council of Delegates 290,765 285,934 Sub Secretariat for Advisory Services & Sub Secretariat for Administration 313,059 310,256 Inter American Defense College 852,176 859,810 TOTAL 1,456,000 1,456,000 8. COMMITMENTS AND CONTINGENCIES The Board is not subject to any lawsuits which management believes will have a material adverse effect on the Board s financial condition. 156

SECTION IV Courtesy of OAS Columbus Memorial Library Photograph Collection ORGANIZATION OF AMERICAN STATES (OAS) RETIREMENT AND PENSION FUND 159 Chapter 10 - OAS Retirement and Pension Fund 157