As Orran completes its 8th year of service to the needy children and elderly of Armenia, it proudly boasts of assisting over 3000 individuals with food, clothing, tutoring, dental and medical aid, assistance with housing and utility bills.

This year, thanks to the continued generous donations of our donors from the US, UK, Europe and Armenia, we were able to sustain our program and thus remain financially secure. The continued monitoring of our finances by our competent Board members assured that we did not go over the annual budget no matter how fast the dollar devalued or how quickly inflation rose.

In anticipation of starting the construction of our new center in Vanadzor, we bought a parcel of land of 1,000 m² in March 2008 for $66,338 (21.56 million AMD). The month of Orran in August at the Marriott was designated for the purpose of raising funds for building this center. At the gala/banquet alone, nearly $400,000 was raised in one evening with a substantial donation of $250,000 from Mr. and Mrs. Krikor and Anna Krikorian of the UK and from Viva Cell director Mr. Ralph Yirikian. However, to start construction of the center we still need to raise another $250,000 from a matching donor. The new center will be named "Orran Krikorian Matching Donor Center" and we sincerely hope that this matching donor comes forward in 2009.

We are constantly looking for ways to improve our services and to make sure that each $1 is spent in the most efficient way resulting in most benefit. The start of the financial crisis in the 4th quarter of 2008 has impacted on us as well. The number and the amount of donations has decreased dramatically. At the same time, the number of needy people knocking on our door has increased.

Audited accounts for 2008 for Orran Armenia show a surplus of income over expenditure equivalent to $1,397 US. However, these audited accounts are confined to the Armenian-registered charity and excludes the Orran affiliated institution in the United States which receives donations in that country including website donations and exports funds to Armenia as and when needed. When all cash balances are taken into account and excluding the Vanadzor land purchase of $66,338 as expenditure, the consolidated accounts show a surplus of expenditure over income - a loss - equivalent to US Dollars 72,660.

Historically we expect to raise $45,000 at the Orran Gala for general operational funding. But this year all funds raised at the gala were diverted to the new Vanadzor center. This shortfall in revenues reduces our losses from $72,660 to $27,660. Total cash balances at year end amount to $276,100 compared to $205,700 at the end of 2007, an increase of $70,400.

This positive performance has been achieved despite the depreciation during 2008 in the exchange rate of the US Dollar, in which currency most of our income accumulates, against the Armenian Dram, namely the currency we spend, from 390 drams at the beginning of 2007 to 325 drams at the beginning of 2008 with the dollar depreciating further to 300 drams at the end of 2008.

We look forward to 2009 when we hope to be operational in the poverty stricken town of Vanadzor where a population of 80,000 (reduced from its peak of 130,000 in 1992) has over 50% unemployed and as usual we look forward to our present and future donors to help us achieve our mission of "Helping Families in Need".

Sincerely,


Armine K. Hovannisian
Chairman, Board of Directors