AccountsANNUAL REPORT 2011

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(Figures in thousands)) ACQUISITION OF FUNDS Notes 2011 2010Income from individual membership subscription 1 492 1 237Income from collective membership subscription 3 625 3 466Sum income from membership 1 5 117 4 703

Public donors 2 574 898 598 523Other donors 2 19 607 13 205Sum donors 594 505 611 729

Gaming and lotteries 3 14 252 16 225TV Appeal 2011 collection 3 52 813 53 006

3 34 843Total collected funds 101 908 69 231

Refugee reception centres and other operating units in Norway 109 805 102 993Sale of advertising space in APPELL 598 846Product sales 1 770 3 158Mine dogs 5 031Total accrued funds from operational activities 117 205 106 997

Net finance posts 13 -2 443 4 515

Other income 0 0

TOTAL ACQUIRED FUNDS 816 292 797 174

FUNDS USEDGaming and lotteries 3 10 159 10 964Donors 17 118 17 227Product sales 1 145 2 215TV Appeal 2011 3 34 671 172Sum costs to acquisition of funds 63 093 30 577

Mine clearance 210 054 214 232Reconstruction, food and emergency relief 44 938 97 204Long-term development 279 945 249 573Hospital operations and other health work 35 388 19 436Attitude-changing and anti-racist activities 7 474 10 205Refugee reception centres and other operating units in Norway 108 712 103 938Members’ organisation 20 595 17 436Information work in Norway 8 096 8 892

Project follow-up at Head Office 25 279 26 890VAT payments -2 262 -1 184Total costs to objectives 738 218 746 621

Administration 15 23 608 24 297Administration 23 608 24 297

TOTAL FUNDS USED 14 824 920 801 496

ANNUAL ACTIVITIES RESULT -8 628 -4 322

ALLOCATION OF ACTIVITY RESULTSTransferred to/from Equity with externally imposed restrictions 10 -3 622 -2 147

Transferred to/from Equity with self-imposed restrictions 10 -5 519 -243Transferred to/from other Equity 10 513 -1 932TOTAL ALLOCATION -8 628 -4 322

Activity accounts as of 31.12.2011

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(Figures in thousands)ASSETS Notes 2011 2010

Tangible fixed assetsFixed assets 4 9 237 14 083 Total fixed assets 9 237 14 083

Current assetsReceivables 5 196 855 186 610Current asset investments 6 22 102 25 922 Cash at bank and at hand etc 12 984 848 Total current assets 11 358 631 200 128

578 573 413 508TOTAL ASSETS

587 810 427 591EQUITY AND LIABILITIES 0

EquityOther reserves

Restricted Equity 10 32 108 31 595Equity with externally imposed restrictionsEquity with self-imposed restrictions

10 11 825 15 434Total equity and funds 10 17 513 23 044

Liabilities 61 446 70 073Long-term liabilitiesReceived funds re non-completed projectsTotal long-term liabilities

3 136 263 0Current liabilities 136 263 0Received funds re non-completed projectsLiabilities to project donorsUnpaid interest on funds received 261 680 227 101Various creditors 7 7 375 8 372Unpaid government charges, holiday pay 7 767 1 033Provisions for liabilities and charges 55 211 60 850Other current liabilities 28 171 29 508Total current liabilities 8 36 172 30 354

9 725 300TOTAL EQUITY AND LIABILITIES 390 101 357 518

SUM FORMÅLSKAPITAL OG GJELD 587 810 427 591

Oslo 17th June 2012

Balance as of 31.12.2011

Finn Erik ThoresenChairman

Kjersti E.R. Jenssen1st Deputy Chairman

Atle Høie2nd Deputy Chairman

Liv Tørres Secretary-General

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Cash flow statement

(Figures in thousands)2011 2010

Annual result -8 628 -4 322Depreciation 4 974 4 813Gains/loss with sales of fixed assets 0 0Change in stocks 0 0Change in accounts receivable -10 245 32 772Change in accounts payable and other accruals 172 530 27 166Net cash flow from operational activities 158 631 60 429

Deposits from sales of fixed assets 0 0Expenses from purchase of fixed assets -128 -7 716Net cash flow from investment activities -128 -7 716

Net change cash flow 158 503 52 713Balance cash at bank and in hand 01.01. 200 127 147 414Balance as of 31.12.2011 358 630 200 127

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(Figures in tables in full thousands; figures in text given in full)

NOTE 1 Accounting principles: The Annual Accounts of Norwegian People’s Aid consist of the following:• Activity accounts• Balance sheet• Cash flow statement• Notes

The Annual Accounts have been prepared by the organisation’s Board and management and must be read in connection with the Annual Report and the Auditor’s Report.

Basic principles - assessment and classification – Other conditions The Annual Accounts have been submitted in accordance with the Norwegian Accounting Act and generally accepted accounting principles, including the Provisional Norwegian Accounting Standard on Good Accounting Principles for Idealistic organisations as of November 2008. The Annual Accounts provide a true picture of the organisation’s earned resources and how these have been used during the course of the year, as well as its financial position at the end of the year. The Annual Accounts have been edited and they have been presented in a summarised form. The necessary specifications appear in the notes. Consequently the notes form an integral part of the Annual Accounts.

The Annual Accounts are based on the basic principles that apply to historical costs, matching, the going concern assumption, all-inclusive income and prudence. The basic principles relating to transactions, earned income and matching have been deviated from in accordance with Section 4-1, sub-section 3 of the Norwegian Accounting Act, where such can be regarded as generally accepted accounting practice. Further details about the accounting principles appear below. When actual figures were not available/certain at the time the accounts were presented, generally accepted accounting practice dictates that the management should make the best possible estimate for inclusion in the accounts. There may be deviations between estimated and actual figures.

General principlesAssets intended for permanent ownership and use are classified as fixed assets. Other assets are classified as current assets. Current assets/liabilities are valued at the lower/higher value procurement cost and their actual value. The actual value is defined as the estimated future sales price minus anticipated sales expenses. Stocks are valued at the lower of cost in accordance with the ”first-in first-out principle” and estimated sales price. Receivables have been entered at their nominal value with deductions for anticipated losses. Assets are basically valued at cost. Assets that diminish in value are depreciated. If the normal turnover value falls below the capitalised value on the date of the balance sheet, the asset in question is written down. Similar principles are also normally applied to liability items. Accounting principles relating to major accounting itemsDate of revenue recognition/income Revenue is entered as it is earned. In the case of revenues for which no quid pro quo is required, such as gifts, income is recognised in accounts when the following three criteria have been met:1. The organisation must be legally entitled to the income in question2. It must be reasonably certain that the income in question will be received3. It must be possible to adequately measure the income in question

Reasonable certainty that income will be received is based on the accounting interpretation of the likelihood concepts, cf. Norwegian Accounting Standard no.13 - Uncertain liabilities and assets, which dictates a likelihood of 90-100%.

Notes to the accounts

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Membership income From 2011, the treatment of income from members is somewhat changed. In previous years, income from collective members has been entered as donors. The figure from 2010 has been changed accordingly so that the two entries may be directly compared.

The organisation receives and enters to income subscriptions from members. 75% of income form members is transferred to the local chapters and is reflected in the final accounts under funds used. Funds received from donors Subsidies for defraying costs are entered gross to income. Where the criteria for revenue recognition are not met, such subsidies are entered as liabilities on a separate line on the balance sheet. Subsidies are recognised at their value on the transaction date. Large subsidies for which it is not possible to estimate a real market value are explained in the notes. Unused project funds are entered as liabilities payable to the donor at the end of the project in question. Sponsor funds Sponsorship income is accrued to income in line with the agreed quid pro quos. Where quid pro quos cannot be accurately measured, linear income is used as a practical approximation. Income from lotteries and gaming machines Lottery revenues are recognised in accounts gross. Costs associated with lotteries, prizes and sales costs are entered under Costs relating to the acquisition of funds.

Cost recognition time/comparison Expenses are compared with and carried to expenses simultaneously with the activity that incurred the expenditure in question. This applies both to the costs incurred in obtaining funds and also to those incurred in order to realise the objective. Expenses that cannot be directly attributed to activities are carried to expenses as and when they occur. Distribution of costs As far as is possible, costs are attributed directly to the activity with which they are associated. Costs associated with more than one activity are allocated appropriately between the various activities. The following basis for allocation is used for the allocation of costs: Costs Basis for allocationSalaries Time per activityOther costs, e.g. rent and IT Number of man-years per project

Extraordinary costs and revenues Costs and revenues which are deemed extraordinary and are essential to the organisation are presented on a separate line in the activity statement. TaxThe organisation has no activities which are subject to tax. Tangible fixed assets Tangible fixed assets are entered on the balance sheet at cost, minus accumulated depreciation and write-downs. A tangible asset is regarded as being permanent if it has an economic life of over three years, as well as a cost price of over NOK 15,000. Tangible fixed assets acquired in order to carry out projects abroad are carried to expenses at the time of acquisition.

If the normal sales value falls below the capitalised value on the balance sheet date, the tangible asset in question is written down to its actual value. If it is difficult to determine the sales value, the cost of acquisition minus depreciation is used to determine its actual value. In cases where the basis for write-downs no longer exists, such write-downs are reversed. Write-downs, and any reversals of such are entered on the same line in the activity accounts. Write-downs are classified as administration costs when they cannot be linked directly to an activity. DepreciationOrdinary depreciations are calculated linearly over the financial life of the asset and based on the historical cost minus the estimated scrap value. Depreciations are regarded as administrative expenses when they cannot be directly linked to a project. LeasingAs regards leases that are not capitalised (operational leasing) rental payments are treated as operating costs. Rental costs are regarded as administrative costs when they cannot be linked directly to a project.

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Financial investmentsMarket-based shares, bonds and other financial instruments classified as current assets are valued at actual cost if they are listed on the stock exchange or administered by a professional capital manager and if the actual value of the investments in question can be reliably measured. Results (returns and change in value) on such investments are classified as financial and investment income.

Pensions obligations and pension costsAs of 01.03.94, the organisation’s pension agreement was transferred from Sparebanken1 Livsforsikring to Statens Pensjonskasse (the Norwegian Public Service Pension Fund). Annual costs are charged to salaries and social expenses. Norwegian People’s Aid has no obligations over and above paying premiums to Statens Pensjonskasse. The funds in Sparebank1 Livsforsikring, ref. Note 12, are used to cover remaining commitments to former and current members under the old agreement and are not included in the accounts. Three people receive monies from this premium fund. The premium fund is considered to be adequate to cover all future commitments and has not therefore been entered in the balance sheet. In addition, Norwegian People’s Aid has pension obligations with KLP for previous employees at Kure Epilepsy Centre. The pension scheme is a defined benefit scheme and is treated in accordance with the stipulations of the Norwegian Accounting Standard Board for pension costs. Pension obligations are entered at estimated value as of 31.12.11 and revised annually.

Assets in foreign currencies/agioAssets in foreign currencies are related to specific projects and agio/discounts are as far as possible taken to income/carried to expenses for the respective projects. Holdings at the end of the year are valued at the rate on the balance sheet date, and any agio/discounts are either taken to income/carried to expenses in respect of the project in question or entered on the profit and loss account under financial income/expenses.

Cash flow statementThe cash flow statement has been drawn up in accordance with the indirect method of accounting. Liquid holdings comprise cash, bank deposits and current asset investments that are valued at their actual value. NOTE 2 The following public donors have contributed:

2011 2010NORAD (Norwegian Agency for Development Cooperation) 151 380 137 579 Norwegian Ministry of Foreign Affairs 236 974 258 784 Other public Norwegian donors 4 745 5 694 Total Norwegian donors 393 100 402 057

U.S. Agency for International Development (USAID) 31 518 48 646 U.S. Department of State 29 915 42 947 EU 7 139 5 903 UN 7 201 11 564 Government of South Sudan 50 321 37 784 Netherlands Ministry of Foreign Affairs 10 994 11 773 Swedish Ministry of Foreign Affairs 22 546 15 386 Government of Switzerland 3 324 3 520 Government of Japan 2 495 - Government of Germany 9 212 12 996 Other international states 7 133 5 946 Sum International donors 181 798 196 466

Total public donors 574 898 598 523

Other donors to make contributions:Other international organisations 11 501 8 654 Solidar network 140 Norwegian Trades Union Movement 750 360 Norwegian organisations 5 022 2 775 Statoil 2 334 1 277 Other donors 19 607 13 205

TOTAL PROJECT REVENUES 594 505 611 729

Donor funds are to be used in accordance with their allocation.

Norwegian People’s Aid received NOK 107 mill. from the Norwegian Directorate of Immigration for the operation of refugee reception centres.

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NOTE 3 Contributions have also come from the following sources: 2011 2010Private donors 27 068 23 735Businesses 4 360 4 110Labour Movement 5 355 8 429Norsk Tipping, contribution from betting funds 16 029 16 733Total donors 52 813 53 006 Lotteries and Gaming 2011 2010National lottery 1) 13 388 15 075 Other 865 1 150Total Lotteries and Gaming 14 252 16 225

1) Costs associated with sales and prizes in 2011 amount to NOK 10.2 mill.

TV Appeal 2011 2010 2011 2012 2013 2014 2015 2016 Total collected/ usedOB TVA 0 -172 Funds collected 220 162 220 162Interest 0 944 944Used = taken to income 172 34 671 34 843CB TVA -172 186 263 0 0 0 0 0 186 263 Norwegian People’s Aid undertook the TV Appeal for 2011, a nationwide fund-raiser under the auspices of NRK. Total collected funds came to NOK 220.1 mill, NOK 221.1 mill. including interest. The funds from the TV Appeal, including interest, were taken to income in accordance with the matching principle in step with use in the projects. In 2010, NOK 0.2 mill. were carried to expenses and a total of NOK 34.6 mill. was used in 2011. Thus NOK 34.8 mill. was carried to expenses to cover project costs for the TV Appeal.

The remaining funds from the TV Appeal, to be used over a five-year period, stand at NOK 186.3 mill. as of 31.12.11. Of these funds, expected use in 2012 is of NOK 50 mill. and is entered as short term liabilities in the balance sheet. The remaining funds, NOK 136.3 mill. is classified as long-term liabilities. NOTE 4 Specification of tangible fixed assets Sites Fixtures EDB Software Vehicles Other Moving costs Total and buildings and fittings machines assets South Sudan Procurement costs 1 280 12 121 4 736 14 798 558 2 274 6 077 41 844Bought 0 0 140 -11 0 0 0 129Sold 0 0 0 0 0 0 0 0CB proc. costs 1 280 12 121 4 876 14 787 558 2 274 6 077 41 973OB acc. depreciation 448 3 318 3 818 12 843 235 2 274 4 826 27 762Annual depreciation 0 2 394 542 1 118 176 0 744 4 974Acc. depr. sold 0 0 0 0 0 0 0 0CB acc. depreciation 448 5 712 4 360 13 961 411 2 274 5 570 32 736Value to accounts 31.12.11 832 6 409 516 826 147 0 507 9 237 These fixed assets have a depreciation period of 3-5 years. Sites and building are not depreciated. Moving expenses to Juba in South Sudan are carried to expenses over 5 years; the remaining value will be written off during 2012. Norwegian People’s Aid has a lease agreement concerning hire of computers/photocopiers. Since this agreement is regarded as an operational leasing agreement, the total rental expenses have been included under operational expenses. NOTE 5 Current accounts receivable 2011 2010Donors, international projects 175 310 162 497Domestic activity, NPA chapters, others 21 546 24 112Total 196 855 186 610 There are no accounts receivable that fall due for payment more than one year after the end of the financial year. Receivables to donors largely concerns received contributions to current projects. The extent to which funds are not used is entered of the debit side of the balance sheet under “Received funds re non-completed projects”.

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NOTE 6 Shares/Units 2011 2010Norwegian shares and units 22 102 25 922Total 22 102 25 922 Norwegian shares and units related to the Furumo/Løren fund comprise NOK 11 374 000, ref Note 10. NOTE 7 Liabilities to project donors For various reasons, some projects have a better financial result than budgeted. Any surpluses are returned to donors in accordance with the relevant contracts. Interest owing on received funds Accrued interest on funds granted by donors is repaid as agreed.

NOTE 8 Provisions for liabilities and charges 2011 2010Provisions for severance pay schemes at offices abroad (see note 12) 18 427 17 869Other provisions for international projects 14 806 9 506Other provisions 249 132Provisions to project auditing 2 690 2 848Total provisions for liabilities and charges 36 172 30 354 NOTE 9 Other current liabilities 2011 2010Other current liabilities 725 300Total other current liabilities 725 300 NOTE 10Net movement in equity OB 01.01 Additions Used CB 31.12 Net change

Other equity 31 595 513 32 108 513Equity with externally imposed restrictions 1) 2) 15 447 5 505 9 127 11 825 -3 622Equity with self-imposed restrictions 3) 23 032 5 519 17 513 -5 519Total 70 074 6 018 14 646 61 446 -8 628

Specification of equity with self-imposed restrictions: Collected funds 2) 5 039 0 0 5 039 0Furumo/Løren 4) 15 772 0 4 398 11 374 -4 398Donation Norsk Hydro 2 221 0 1 121 1 100 -1 121 23 032 0 5 519 17 513 -5 519

1) Includes donation from the Norwegian Union of Municipal and General Employees to a total of NOK 18 000 000, received in 2009. These funds are to be used over a four-year period (2010-2013). In 2011, NOK 5 292 575 was used. A total of NOK 8 002 223 has now been used, leaving NOK 9 997 777.

2) These are earmarked funds collected through various campaigns.3) These are gifts not earmarked to any particular purposes, including a gift of NOK 10 000 000 from

Norsk Hydro. Norwegian People’s Aid has decided that the Board will be responsible for allocating the Norsk Hydro funds. In 2011, NOK 1 121 870 was used and NOK 1 100 000 remains.

4) The returns on the Furumo/Løren fund will be used to benefit the occupationally disabled and other vulnerable groups with a view to improving their living circumstances and their opportunities of participating in working life. The returns may also be used for attitude-building work.

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NOTE 11 Cash at bank and in hand etc 2011 2010Security for lottery prizes 1) 0 4 000Tax deducted from employees 2) 595 8 023Other bank accounts/frozen 250 2 052Total frozen bank deposits 845 14 075Other restricted funds not placed in frozen accounts 236 212 72 965Other restricted funds in accounts abroad 79 891 80 322Total restricted funds 316 948 167 362Unrestricted funds 41 683 32 766Total cash at bank and in hand etc 358 631 200 128

1) In 2011, deposits were replaced by an ordinary bank guarantee2) Provisions for tax deductions were set aside 9th January 2012 and paid within the deadline for the 6th term. NOTE 12 Pensions and other obligations to employees 2011 2010Premium fund 100 1 987Total 100 1 987 Wages and Salaries 2011 2010Wages and salaries re. all employees abroad 150 144 149 471Wages and salaries re. reception centres and projects in Norway 66 672 56 257Wages and salaries at Head Office and regional offices 44 840 42 540Employer’s National Insurance contributions 18 455 16 431Pension costs 2 968 314Other benefits 40 760 44 908Total Costs – Wages and salaries 323 839 309 920

Total wages and salaries include those to Norwegian and foreign relief workers based abroad. Of the total wage costs, Norwegian People’s Aid used NOK 1.1 mill. on work with children and young adults. As of 31.12, 110 years’ work were involved at Head Office and the regional offices in Norway, 90 at refugee reception centres, 2 at other operating units, 69 on contract at offices abroad and ca. 2 000 local employees working through those offices. Pensions The organisation has 261 employees covered by the regulations pertaining to compulsory occupational pensions, Statens Pensjonskasse.

Norwegian People’s Aid has a pension scheme for former employees at Kure Epilepsy Centre, which covers 28 persons. This performance-based scheme is largely dependent on the number of years’ earning, salary level at pensionable age and the size of benefit from National Insurance. This obligation is covered by a collective pension agreement in Kommunal Landspensjonskasse – Gjensidige Forsikring. Pension obligations 2011 2010Gross accrued pension obligations 27 406 24 272Pension funds 19 262 18 898Net obligation before employer’s National Insurance contributions 8 144 5 374Employer’s National Insurance contributions 1 148 758Gross accrued obligations inc. ENIC 28 554 25 029Net obligations inc. ENIC 9 292 6 133Estimated deviation exc. ENIC not written to accounts -9 070 -6 169Estimated deviation ENIC not written to accounts -1 206 -812Net obligations/(funds) after ENIC written to accounts -984 -848 Financial preconditions: Discount rate 3,80 % 4,60 %Expected salary regulation 3,50 % 4,00 %Expected G regulation 3,25 % 3,75 %Expected yield from funds 4,10 % 5,40 %

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Allocations for severance pay at offices abroad Total wages and salaries include provisions for severance pay abroad where such is a statutory requirement. Practices vary at the organisation’s various foreign offices and these are dictated by the statutory provisions that apply in the programme country concerned. Norwegian People’s Aid has estimated its future commitments and has drawn up a joint programme in collaboration with donors containing provisions for severance pay. Remunerations/pay for Board members and the Secretary General No remunerations were paid out to Board members in 2011. An acting Secretary General functioned until 31st August and a new Secretary General appointed in September. Total salaries for the acting Secretary General and Secretary General in 2011 amounted to NOK 670 032 and NOK 271 289 respectively while other benefits amounted to NOK 8 803 for both. The Secretary General participates in Norwegian People’s Aid’s ordinary pension scheme and does not receive any other remunerations apart from an ordinary salary. Norwegian People’s Aid is not obliged to make any payments to the Secretary General upon termination of, or in the event of any changes to, his/her employment contract. Auditor General auditing fees carried to costs at the main administration amounted to NOK 638 321 in 2011. The organisation’s donors require special attestation relating to all projects. Auditing at offices abroad was conducted by local auditors, the costs amounting to NOK 5 251 788. Auditing costs to project activities in Norway came to NOK 134 402. The Norwegian Directorate of Immigration requires that all reimbursement demands be audited and the costs thereof amounted to NOK 1 135 997. Costs for other services were zero. NOTE 13Financial items 2011 20110Agio -73 315Finance revenue 1 584 4 193Other finance costs 1) -3 953 6Net financial items -2 443 4 5151) Value regulation in the Furumo/Løren fund account for NOK 3.4 mill. of the annual finance costs. NOTE 14 Operating costs according to kind 2011 2010Wage and salary costs 323 839 309 920Depreciation of tangible fixed assets and intangible assets 4 974 4 815Other operating costs 1) 496 107 486 734Total operating costs 824 920 803 479

NOTE 15 Administration percentage and Objective percentage 2011 2010 2009 2008 2007Administration costs 1) 2,9 % 3,0 % 2,5 % 2,6 % 2,2 %Costs to objectives 2) 89 % 93 % 94 % 95 % 93%Collection percentage 3) 68 % 67 % 74 % 75 % 63 %1. Administration costs are largely costs incurred for building rental and salaries to management and staff that are not directly linked with particular projects.2. The costs to objectives percentage is somewhat lower than that of previous years. This is owing to increased costs on account of the TV Appeal3. The collection percentage is based on Donors in the activity accounts. The TV Appeal is not included in the calculation for collection percentage. Since funds from the TV Appeal are taken to income in accordance with the matching principle in step with use in the projects, the collection percentage of the TV Appeal is 0%. This would have given a misleading picture of Norwegian People’s Aid costs linked to the general fund-raising work. NOTE 16 Lawsuits/disputes Norwegian People’s Aid has a few disputes related to its activities abroad. These have been allowed for in the accounts of the national programmes.

Oslo 17th June 2012

Finn Erik ThoresenChairman

Kjersti E.R. Jenssen1st Deputy Chairman

Atle Høie2nd Deputy Chairman

Liv Tørres Secretary-General

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Norwegian people’s Aid is the labour movement’s humanitarian organisation for solidarity. Norwegian People’s Aid works both nationally and internatio-nally to improve the living conditions of vulnerable groups and to contribute to a fairer society.

Norwegian People’s Aid is a members’ organisation with four main areas of endeavour:• Youth activities• Social improvement• Health and emergency preparedness• International involvement

This work is organised into two key fields:Protection of life and health and Fair distribution of power and resources.A large part of our operations in Norway is based on members’ voluntary work. The Health and Rescue Ser-vice represents essential voluntary social involvement in national emergency preparedness. Domestically, Norwegian People’s Aid also works with refugee and social inclusion issues and is engaged in the running of refugee reception centres. On the international front, Norwegian People’s Aid is active in 39 countries in Europe, the Middle East, Asia, Africa and Latin Ame-rica. Norwegian People’s Aid is currently one of the world’s largest organisations in the field of humanita-rian cluster-bomb and mine-clearance work.

I ORGANISATION

MembersAt the turn of the year, Norwegian People’s Aid had 11,619 members divided into 96 chapters. 3,275 members were under 30 years of age. Extensive re-cruitment work was undertaken in 2011, resulting in membership growth of 19%. Through LO-affilia-ted associations, Norwegian People’s Aid has about 880,000 collective members.

Composition and work of the boardAs of 31.12.11, the composition of the board was as follows:Chairman Finn Erik Thoresen1st Deputy Chairman Kjersti E.R. Jenssen2nd Deputy Chairman Atle HøieRegion North Torulf MikkelsenRegion Central Norway Anne Mette JohnsenRegion South-west Kai Rune GlomsåRegion South-east Liv BraathenRegion East Elin SkovlyRegion West Jorge Alex DahlYouth for Solidarity Hilde Jørgensen Health and Rescue central committee Børge JohnsenEmployees’ elected representative Tord LierEmployees’ elected representative

Jane L. K. Filseth Andersen

Annual report from the board 2011

Collective members:

Union of Employees in

Commerce and OfficesPeggy Hessen Følsvik

EL and IT Terje O. OlssonNorwegian Union of Municipal and General Employees Stein Gulbrandsen

The Board held five meetings during 2011 and the Financial Control Committee held four meetings. There were a further 13 meetings of the Working Committee, comprising the Board’s Chairman and two Deputies.

A dialogue conference was held between the Board and local chapters in December to strengthen con-tact and achieve closer dialogue.

AdministrationThe main administration of Norwegian People’s Aid is situated in Oslo. There are additional regional of-fices in Tromsø (Region North), Trondheim (Region Central Norway), Bergen (Region West), Stavanger (Region South-west), Tønsberg (Region South-east) and Hunndalen (Region East).

Head of Foreign Affairs, Orrvar Dalby, functioned as Acting Secretary General at the main administration until September 2011 when Liv Torres took over as Secretary General.

TV Appeal 2011Norwegian People’s Aid was awarded the NRK TV Appeal for 2011. This became the second largest fund-raiser of this kind ever, with a total of NOK 220 mill. collected. The appeal gave rise to a great deal of activity around the country. All Norwegian People’s Aid local chapters participated and many took the opportunity to raise the profile of their own group and activities. Over 230 activities run by local chapters were registered. The TV Appeal has also given the organisation valuable experience which can be employed in campaigns and fund-raisers, as well as increased visibility and awareness among the Norwegian public of Norwegian People’s Aid mine- and cluster munitions work. Feedback also shows a considerable increase in members’ know-ledge of, and interest in, our international work against mines and cluster munitions.

Funds raised by the TV Appeal will go towards mi-ne-clearance activities in six countries (South Su-dan, Laos, Vietnam, Lebanon, Bosnia-Herzegovina and Tajikistan) as well as the mine-dog training cen-tre in Sarajevo. A small percentage of the funds col-lected has been earmarked for starting new pro-grammes.

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National AssemblyNorwegian People’s Aid held its National Assembly in August 2011. The National Assembly, which is the organisation’s supreme body and which meets every four years, adopted resolutions including new regulations and a new programme of principles for 2011-15. The programme of principles is the guid-ing document for the entire period until the next National Assembly. Organisational changes were also adopted so that the organisation may be better equipped to face the challenges of the future. Nor-wegian People’s Aid Youth was divided into two structures, NPA Youth for Solidarity and NPA Youth Health and Rescue.

This division of the youth movement was an express desire of the youth membership itself. The two new structures have established their own fora dedica-ted to the specific interests of each group, and each elects its own leader. NPA Youth Health and Rescue now have the opportunity to run more practical ac-tivities and hold training events relating to first aid and rescue work, while NPA Youth for Solidarity de-velops towards becoming a more politically influen-tial youth movement. A rise in membership figures and a marked increase in the youth groups’ level of activity seem to be a direct result of the change.

22nd JulyNorwegian People’s Aid was hard hit by the acts of terror on 22nd July. Norwegian People’s Aid Hade-land were on standby on Utøya and one of the eight volunteers, Hanne Anette Balch Fjalestad (43) was killed. The work of the board has thus been deeply affected by the 22nd July and its leading members have lent their assistance to Norwegian People’s Aid Hadeland in the wake of events. The National Assembly was also deeply affected and Norwegian People’s Aid Hadeland was awarded the prize for ‘People’s Aiders of the Year’.

At the same time, 22nd July has led to greater focus on the need for voluntary rescue services and pre-paredness. Moreover, the work of Norwegian People’s Aid in relation to social inclusion and refu-gee issues has gained greater relevance and wider acceptance in public opinion. 22nd July underlines how important work undertaken by Norwegian People’s Aid in Norway has been, and how impor-tant it will continue to be.

ReorganisationA reorganisation at Head Office was begun in 2011 on the basis of the need to improve the financial situation both in the long and short term, to ensure better control and governance and to clarify work task allocation. This process will be continued in 2012.

II ANNUAL RESULT FOR 2011

FinancesThe Board has compiled the accounts for 2011 on the premise that the organisation’s operations will continue. The Annual Accounts are for the idealistic organisation Norwegian People’s Aid, which is a non-profit organisation. The Annual Accounts do not detail the accounts of the local chapters.

The annual activity result for 2011 was NOK -8.628 mill, compared with NOK - 4.322 mill. in 2010.Total acquired funds in 2011 stood at NOK 816 mill. as opposed to NOK 797 mill. in 2010.

The activity result of NOK -8.628 mill is covered as follows: NOK 3.622 mill. is transferred from equity with externally imposed restrictions, NOK 5.519 is transferred from equity with internally imposed re-strictions and NOK 513 mill. transferred to other equity. As of 31.12.2011, total equity amounts to NOK 61.446 mill. as opposed to NOK 70.073 mill. in 2010. As of 31.12.2011, other equity amounted to NOK 32.108 mill. compared with 31.595 mill. in 2010.

Income from marketing work“Employ a mine dog” was launched in 2011. Busi-nesses follow their own mine dog over several ye-ars, from puppyhood to professional, hard-working mine dog. The project helps generate interest among employees as well as support an excellent, important cause. In 2011, Norwegian People’s Aid staff worked with our partners to hprevent the famine in the Horn of Africa from spreading to northern Somalia. Thanks to considerable support from our donors, we were able to transport truck-loads of water to the hardest hit areas and construct durable water sources in Somalia. Monetary donations from Norway were also used to prevent the spread of diarrhoea and other water-borne illnesses.

The memorial CD following the acts of terror on 22nd July, “ Mitt Lille Land”, sold tremendously well. Sales results show a profit of around 6 million kro-ner. In accordance with the initiators’ wishes, 25% of the money, i.e. around NOK 1.5 mill. is to go to Norwegian People’s Aid and projects to strengthen the fight against racism and prejudice.

“People change the world” is the annual fundraiser for Norwegian People’s Aid and the entire Labour movement and takes place on the 1st of May each year. The cause for 2011 was the plight of Palesti-nian refugees living in Lebanon, Gaza and the West Bank. Almost 1.4 million kroner was raised by me-ans of many different activities.

Collaboration with the labour movement has been excellent, both politically and financially. Funds re-ceived by Norwegian People’s Aid from the labour movement are largely used to finance the excesses that Norwegian People’s Aid has under the fram-ework agreement with Norad. Under the long-term

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agreement with the Norwegian Union of Municipal and General Employees, collaboration entails work for joint political lobbying and activities to engage union members in international solidarity and inter-national project support.

The United Federation of Trade Unions and Norwe-gian People’s Aid signed a cooperation agreement in 2011 for the period 2012-15. The agreement concerns a joint project in South Africa and Zim-babwe and entails project support to the tune of two million kroner over the period.

Coop is a key, long-term supporter and increased its annual contribution to Norwegian People’s Aid pro-jects to NOK 1.5 million in 2011 from NOK 1 milli-on in 2010. Customers can choose to give deposits returned on bottles and cans to the Coop Solidarity Fund. Norwegian People’s Aid is given a high pro-file on the bottle return machines and receives mo-nies towards its work from the Solidarity Fund.

A Christmas present of NOK 300,000 was received by Norwegian People’s Aid from DNB.

III OPERATIONSThe core activities of Norwegian People’s Aid are broadly divided into two main areas: Fair distributi-on of power and resources and Protection of life and Health. Within this dual framework, work is underta-ken both at home and abroad.

Operations in Norway The National Strategy for the period 2008-11 emp-hasises activities to do with first aid and rescue ser-vices, social inclusion and work aimed at refugees as well as activities linked to international issues with a view to strengthening our international soli-darity work.

First Aid and Rescue ServicesAt the end of 2011, the Norwegian People’s Aid Health and Rescue Service numbered 60 groups. The year saw an increase both in the number of vo-lunteers and in the number of health and rescue groups. New groups have been established in Vest-erålen, Andøya, North Østerdal and Bergen. Two further groups are in the process of starting up along the Møre coast.

The Health and Rescue Service took part in a record number of search and rescue operations in 2011, 210 in all, compared to 159 in 2010.

The 25 youth health and rescue groups were inte-grated with the health and rescue service with their own committee. There is tremendous growth in na-tional activities for youth.

Social inclusion and refugee workThere is increasing interest in work against racism, particularly among socially engaged young people. The campaign relating to paperless persons made its mark in a number of places during the year and a proposal for regularisation was laid before the Storting. Activities around the country marked the

UN Anti-racism Day on 21st March and on 20th June – World Refugee Day – special events were arranged at all refugee reception centres belonging to Norwegian People’s Aid. Women Can Courses in 2011 had special focus on participation in the local elections. More than 900 people and 100 politici-ans took part in 16 electoral meetings. The work to get businesses to declare themselves Racism-free zones, particularly in Vestlandet, was intensified. This work, a collaboration with LO associations, has returned good results.

Norwegian people’s Aid is the only humanitarian operator of refugee reception centres and was run-ning ten centres with a total of 1,715 places at the end of 2011. In August, the Dikemark reception centre was closed down when the contract with the Directorate of Immigration (UDI) came to an end. A bid concerning the establishment of a return centre was made and then shelved after the political deci-sion was taken not to set up such centres in Norway.

Norwegian People’s Aid has been commissioned by UDI to train guardians for unaccompanied asylum-seeking children in the transit phase. In 2011, around 150 guardians received training. Nor-wegian People’s Aid has also come to public atten-tion as a powerful political voice in defence of asylum-seekers’ rights. Our work with the Norwegi-an Union of Municipal and General Workers concer-ning social inclusion and refugee issues continued in 2011. The organisation is also represented in the forum for ethnic equality in LO and over half of the affiliated associations declared their own premises to be racism-free zones during the year.

Norwegian people’s Aid has strengthened its col-laboration and increased its visibility in relation to political parties’ youth organisations and the trade union movement through the work of NPA Youth for Solidarity. Work includes concrete cooperative agre-ements with youth associations and youth parties and Youth for Solidarity has become a relevant col-laborative partner for the left wing in Norway.

International SolidarityArrangements have been made to make it easier for Norwegian local chapters and individual members to get involved in international issues. Work in 2011 has aimed particularly at competence enhancement measures, including project trips, seminars and ap-pellant courses, as well as organising local activiti-es. Special focus was given to mobilisation in rela-tion to the 1st May fundraiser and the TV Appeal.

International operations

Long-term development workIn 2011, Norwegian People’s Aid collaborated with around 200 local organisations in over 20 countri-es. These organisations represent farmers, indi-genous peoples, women, youth, human rights acti-vists and volunteer groups. Organisation is important in order to mobilise people to participation, for the dissemination of information and knowledge and to influence political decisions and public opinion.

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Norwegian People’s Aid supports our partner organi-sations’ work to give people the opportunity to protect and promote their own interests, for rights to land and strategic natural resources to be of benefit to all and to promote human rights, equality and a fair distribution of resources between women and men.The year 2011 witnessed important progress for a number of our partners:• South Sudan finally gained its independence

and Norwegian People’s Aid was thanked for its support and solidarity over the years in the President’s Independence Day speech on 9th July 2011.

• Norwegian people’s Aid collaboration with local and national bodies linked to civil society in Myanmar (Burma) has contributed to the political opposition and civil society being able to participate actively in the processes of political change in the country.

• In Mozambique, our long-term support of organisational development has put organised farmers in a position to make demands of countries investing in land and natural resources.

• In Ecuador, the local population won the almost 20-year long court case against the Chevron oil company for compensation for damages caused by oil extraction in the 70s and 80s.

In 2011, our many years of involvement in Tanzania came to an end and our national office closed its doors. Our development work in the Balkans was also brought to a close. Phasing out operations in both countries has been planned over a number of years and both our partners and employees were well prepared for the event.

2011 has also seen the organisation establishing involvement in new regions. A preliminary project with a view to a smaller scale development pro-gramme in Vietnam was commenced early in the year, partnerships have been established and a de-cision taken to continue work in the country.

We have also looked at the possibilities of assistan-ce in the Middle East and North Africa, particularly in Egypt. Both of these projects will be financed through the new framework agreement with NO-RAD for 2012-15.

Work to produce a manual for results-based plan-ning, implementation and reporting was completed in 2011. This will help increase visibility of the re-sults of our programme work. The manual has been distributed to all our offices abroad and a number of seminars looking at the methods it contains have been held in our programme countries.

An external evaluation of the Norwegian People’s Aid international strategy (2007-2011) was under-taken during 2011. The review shows that the im-portant work concerning strategy and policy has provided firm guidance for our international pro-gramme work. The evaluation also provided the ba-sis for forming the new international strategy for the next four-year period.

Clearance of mines and cluster munitionsNorwegian People’s Aid has long been one of the largest humanitarian contributors to solving the world-wide problems caused by landmines and unexploded remnants of war.

In 2011, Norwegian People’s Aid worked in 18 co-untries, both with the clearance of mines and clus-ter munitions and the development of methods and policies concerned.

A particular focus in 2011 was to ensure a good start to the implementation of the agreed ban on cluster munitions (signed in 2008, in force from 1st August 2010). The clearance programmes and other measures required by the cluster munitions convention were thus swiftly and efficiently put into action.

To date, 111 countries have signed and 70 coun-tries ratified the agreement. The credibility that Nor-wegian People’s Aid has in relation to humanitarian disarmament was of great significance to this agre-ement, which bears many of the same characte-ristics and requirements as the Landmine Conven-tion of 1999. In 2011, work began in southern Serbia to clear cluster munitions and a new mine-clearance programme was begun in DR Congo. This programme was based on the resources from a cor-responding programme in Angola so that work was able to start quickly and efficiently. Norwegian People’s Aid continues its work to develop and establish low-cost stockpile destruction program-mes in order to deal with stockpiled cluster muni-tions. It is important for countries with large stockpi-les of such weapons and little financial capacity to destroy them that the cost of compliance with the convention’s requirements is not too high. This will give added stimulus to more countries to sign up to the cluster munitions convention.

Norwegian People’s Aid has also come a long way towards succeeding in getting a breakthrough for a new, critical international standard concerning land liberation principles in order to increase the effici-ency of global mine-clearance work.

Norwegian People’s Aid continues its active, purpo-seful, concrete work with the requirements and tar-gets formulated in the two key international fram-eworks, the landmine convention and the cluster munitions convention. This means that Norwegian People’s Aid must continue to develop good huma-nitarian clearance programmes where the need is greatest as well as assist countries who have pro-blems fulfilling their obligations under the conven-tions where clearance is concerned by ensuring that progress is made and targets met. Norwegian People’s Aid also continues its work to develop new methods and ways of thinking as to how the techni-cal/operational work can be globally improved as well as maintain political pressure in this field.

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IV PERSONNEL, HEALTH, ENVIRONMENT AND SAFETYAt the end of 2011, Norwegian People’s Aid had 2,292 employees, 115 of which were employed at head office or one of the six regional offices, 102 at refugee reception centres, 69 on contract abroad and 2006 employed locally on projects abroad.

The working environment is regarded as satisfacto-ry. Sick leave in 2011 was down to 2.3% from 2.8% in 2010. Sick leave for women was 3.1% and 1.5% for men.

No injuries or accidents to employees in Norway have been reported.

Internationally, four work-related accidents have been registered in connection with mine-clearance work in Tajikistan, Thailand and Jordan. Two resulted in easily treatable minor injuries to personnel while the third led to amputation below the knee. The fo-urth case proved fatal.

Beyond this area of activity, a further fatality was registered in Harare, Zimbabwe, where a program-me worker died of the injuries she received in a car accident.

A working environment study was undertaken to-wards the end of 2011 among all employees in the main administration. The findings have been exami-ned by the management group and Working Envi-ronment Committee and departmentally initiated measures focusing on a number of areas have been introduced. These include workplace layout, noise levels and air quality, notification and report proce-dures at departmental/personnel meetings, training needs in relation to the use of work equipment and execution of work tasks, management and indivi-dual responsibility to help create a positive work environment and follow-up to plan of action and employee appraisal. Regular inspections are made by safety officers.

V EQUALITY AND SOCIAL INCLUSION58% of the employees at Head Office in Oslo are women and 42% men. The percentages of men and women in top and middle management are about equal. Wage ands working conditions are set up for both sexes equally

Of the 200 or so employees in Norway, around a quarter come from immigrant backgrounds. Two thirds of the management group’s members are wo-men and one third men. The board has fairly equal representation between the sexes, with 7 women and 8 men.

The organisation’s personnel policy is to ensure equal rights and opportunities for all.

Norwegian People’s Aid works actively for equality and against prejudice and discrimination in Norwe-gian society in accordance with the purposes and provisions of the laws concerning equal opportuni-ties and discrimination. The latter was firmly placed

on the agenda with the conference “Recruitment in a multi-cultural society – Do we see the opportuni-ties?” which took lace at the turn of the year. The purpose was to increase awareness of business’ obligations to act upon and report incidences as well as to shed light on the discriminatory mecha-nisms that lead to persons from minority back-grounds being sorted away. In the autumn of 2011, Norwegian People’s Aid was re-launched as a raci-sm-free zone. This involves a raft of obligations re-quiring concrete measures, reflection and adjust-ment where appropriate of our own practice.

A report detailing the organisation’s 2011 activities, state and initiatives in this area is to be drawn up.

VI EXTERNAL ENVIRONMENTNorwegian People’s Aid activities have only a mar-ginal influence on the external environment. In col-laboration with our partners, we maintain a sharp focus on environmental, as well as social and finan-cial sustainability in our international development work. Our humanitarian mine- and cluster-muni-tions clearance work makes a positive contribution to the external environment.

VII FUTURE PROSPECTSNorwegian People’s Aid will continue to lobby Nor-wegian authorities to conduct a development policy that contributes to democratisation and which clo-sely examines the extent to which developing coun-tries maintain policies that foster economic and so-cial equalisation.

With the adoption of a new programme of principles by the National Assembly and the approval of a new international strategy by the Board, the framework is laid for our long-term development work for the co-ming four-year period. The new cooperation agre-ement with NORAD for 2012-2015 secures the fi-nancial basis for our development work and we will be working systematically and purposefully to ac-quire additional funding from other international donors.

In order to secure the implementation of the new international strategy, new national strategies are to be developed in2012/13 for the countries where we are active. This is to be done in parallel with the review of positioning documents which clarify our political platform for each country programme.

In 2012, Norwegian People’s Aid passes the 20-year mark for humanitarian explosives clearance. Looking forward, our main activities will remain wit-hin the framework of the landmine- and cluster mu-nitions conventions, where we will continue to press the major powers to ratify the agreements and will assist signatory countries by ensuring that the hu-manitarian and political objectives of the conven-tions are achieved. Norwegian People’s Aid must continue to develop its role within operative pro-grammes, to assist national authorities with advice and guidance and maintain its political lobbying ac-tivities.

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A good many countries both need and are requ-esting mapping skills and assistance in order to be able to declare themselves free of mines. Where cluster munitions are concerned, the situation is clearer and more predictable for fewer countries are affected. At the same time, the cluster munitions convention is still in its first phase, requiring signifi-cant international efforts to be made both in terms of clearance and destroying stockpiles. Since the convention came into force, Norwegian People’s Aid has increased its efforts to clear cluster muni-tions in the countries worst affected and to estab-lish alternative, cost-effective methods of destroy-ing stockpiles of such weapons. In the same way as with mine clearance, our focus is on supporting sig-natories to achieve the clearance and destruction set out in the cluster munitions convention. These will remain core activities for Norwegian People’s Aid in the foreseeable future.

With the expertise built up through our mine and cluster-munitions clearance work, Norwegian People’s Aid wishes to continue its development into areas involving other types of weapons, explo-sive or otherwise, that are considered inhumane. This will become a future strategic area for our ef-forts.

Here at home, the acts of terror of 22nd July led to increased attention on the rescue services, emer-gency planning and the role of voluntary groups in civil security. The 22nd July aside, the need for first aid and rescue services has been steadily increas-ing in recent years. There has been a marked in-crease in rescue operations and our experience so far in 2012 seems to indicate that this trend will continue. It will thus be a challenge to secure a bet-ter framework for the role of volunteers within civil security in the next few years.

Following 22nd July, Norwegian People’s Aid also has a new focus on racism and extreme right wing milieus. Such issues are closely related to all our work concerning anti-racism, social inclusion and democratic development. Starting with the need to take a closer look at the attitudes of the majority population, and with particular focus on working life, Norwegian People’s Aid will collaborate with the labour movement to bring attention to the work of setting up “racism-free zones”, which were origi-nally developed between the Norwegian Confede-ration of Trade Unions (LO) and Norwegian People’s Aid. Additionally, great efforts must continue to be made in relation to asylum policy and social inclu-sion work.

Overall, Norwegian People’s Aid is entering a peri-od where its programmes and efforts in other areas are increasingly in demand. 2011 was also a record year for membership growth in the organisation. The 2011 National Assembly approved a recruit-ment drive throughout the next period with an inte-rim goal of 20% net membership growth in 2012. Cooperation with the labour movement has become stronger in recent years and collaboration with the trade unions will be given even higher priority in the coming years.

Agreements finalised with the trade unions empha-sise political collaboration on single issues, the de-velopment of organisational cooperation and finan-cial support of Norwegian People’s Aid projects. The ground is well prepared for further political and organisational development in the future.

Work to generate income was given high priority in the previous national assembly period; this will con-tinue. Tremendous groundwork has been underta-ken and this is beginning to give results. The regular donor concept “The People’s Aider” is to be prioriti-sed at all levels of the organisation in future and in-stitutional donors will receive greater attention.

RiskThe board maintains continuous focus on financial development and wishes to emphasise that the or-ganisation has satisfactory governance- and repor-ting systems. In 2011, new routines and tools were introduced for drawing up budgets and making prognoses. The purpose of this is to ensure and maintain sound control and quality in financial go-vernance. The focus on internal controls has high priority and this work is to be further strengthened in the coming years. The post of internal auditor was introduced and filled in 2012. The organisation’s anti-corruption work in 2011 was organised through a dedicated working committee.

Operational riskIWhere international programme work is concerned, the fact that Norwegian People’s Aid is present in countries with high levels of conflict and weak so-cial structures must be taken into consideration. For this reason, guidelines and routines to take care of these issues have been drawn up.

Humanitarian explosives clearance comes linked to high risk. These activities are regulated by interna-tional standards and are thus easily measurable. This means that Norwegian People’s Aid must have the necessary capacity for monitoring and ensuring quality as well as the competence for this work. Financial riskNorwegian People’s Aid wishes to take as little fi-nancial risk as possible. The organisation has inter-nal procedures for dividing agio amongst the vari-ous projects. Part of the way in which foreign currency is handled is by maintaining donor funds in the donor’s currency until it is transferred to a programme. Contracts with Norwegian People’s Aid partners involved in international development work contain clauses to prevent currency risks. Nor-wegian People’s Aid dos not hold any loans with external creditors and is but little exposed in the stock market.

Other (free) equity is low and the organisation will prioritise strengthening this in the future. Many of the countries where Norwegian People’s Aid has a presence figure high on the list of the most corrupt and conflict-filled countries in the world. It is impor-tant to have sufficient solidarity to tolerate losses that may occur in relation to activities in these coun-

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tries. Norwegian people’s Aid follows a strict cash management policy. Financial risk is thus evaluated as moderate.

Credit riskNorsk Folkehjelp har ingen lån til ordinære kreditt-institusjoner og er i liten grad eksponert mot aksje-markedet. Kreditorene til Norsk Folkehjelp består i hovedsak av donormidler som ikke er benyttet.

Finn Erik ThoresenChairman

Kjersti E.R. Jenssen1st Deputy Chairman

Atle Høie2nd Deputy Chairman

Liv Tørres Secretary-General

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INDEPENDENT AUDITOR’S REPORT

Report on the financial statementsWe have audited the annual financial statements for Norwegian People’s Aid, which show an activity-based loss of NOK 8,627,783. The financial statements comprise the balance sheet as of 31st. December 2011, the activity accounts and cash flow statement for the year then ended and a description of significant ac-counting principles used and other explanatory information.

Responsibility of the Board and Secretary-General for the financial statementsThe Board of Directors and the Secretary-General are responsible for the preparation and fair presentation of the financial statements in accordance with the Norwegian Accounting Act and generally accepted ac-counting standards and practices in Norway, and for such internal control as the Board of Directors and Secretary-General deem necessary to enable the preparation of financial statements that are free of mate-rial misstatement as a consequence of either fraud or error.

Auditor’s ResponsibilityOur responsibility is to express an opinion on these financial statements on the basis of our audit. We con-ducted the audit in accordance with the law, regulations and auditing standards and practices in Norway, including International Standards on Auditing. Those standards require that we comply with ethical require-ments and plan and perform the audit to obtain reasonable assurance about whether the financial state-ments are free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, owing to either fraud or error. In making those risk assessments, the auditor considers internal control relevant to the organisation’s preparation and fair presentation of the financial statements. The purpose in so doing is to design audit procedures that are appropriate in the circumstances but not to be able to express an opinion on the effectiveness of the organisation’s internal control. An audit also includes evaluating the appropriateness of accounting prin-ciples used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion.

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ConclusionIt is our opinion that the financial statements give a true and fair view of the financial position of Norwegian People’s Aid as at 31st December 2011 and of its financial performance and cash flows for the year then ended in accordance with the Norwegian Accounting Act and accounting standards and practices gene-rally accepted in Norway.

Statement concerning other legal and regulatory requirementsConclusion concerning the financial statementsBased on the audit of the financial statements as described above, it is our opinion that the information presented in the Board of Directors’ report concerning the financial statements, the going concern assump-tion and the coverage of the loss is consistent with the financial statements and complies with the laws and regulations.

Conclusion concerning Accounting Registration and DocumentationBased on our audit of the financial statements as described above and control procedures we considered necessary in accordance with the International Standard on Assurance Engagements (ISAE) 3000, “ Assu-rance Engagements Other than Audits or Reviews of Historical Financial Information”, it is our opinion that the organisation’s management has fulfilled its duty to produce a proper and clearly set out registration and documentation of the organisation’s accounting information in accordance with the law and bookkeeping standards and practices generally accepted in Norway.

Oslo, 8th June 2012KPMG AS

Asbjørn NæssState Authorised Public Accountant

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Postboks 8844 YoungstorgetN-0028 Oslo

Telefon: 22 03 77 00Fax: 22 20 08 70E-post: norsk.folkehjelp@npaid.orgHjemmeside: www.folkehjelp.no