FAMILY OF
                                                                                                            ANNUAL REPORT 2006

SCO                               Family of Services
C a r i n g f o r Pe o p l e • C o m m i t t e d t o Fa m i l y • C o n n e c t e d t o C o m m u n i t y
                                                                                                                                                       HOW WE WORK
                                                                                                                                                       THE SCO CONTINUUM OF CARE

                                                                                                                                                       SCO Family of Services provides a caring continuum of programs
                                                                                                                                                       to help New York’s most vulnerable children, families and individ-

SCO                               Family of Services                                                                                                   uals. We deliver direct services to more than 30,000 people each
                                                                                                                                                       year at more than 120 locations throughout New York City and
C a r i n g f o r Pe o p l e • C o m m i t t e d t o Fa m i l y • C o n n e c t e d t o C o m m u n i t y
                                                                                                                                                       Long Island.

                                                                                                                                                       Since SCO Family of Services was established in 1897, we have
                                                                                                                                                       been serving the needs of impoverished children and families. Our
                                                                                                                                                       partnerships with government, foundations, individuals, and other
                                                                                                                                                       neighborhood agencies allow us to help those in need. Learn more
                                                                                                                                                       about how we help:

                                                                                                                                                                                                              January 2007

      2007                                                                                                                                                                                                      Legend
                                                                                                                  Bronx       69
                                                                                                                                                                                                                 1    —   20 Services for People with Developmental Disabilities
                                                                                                             35                                                                                                  21   —   36 Homeless Residences & Services

                                                                                                                                                                                                                37    —   45   Family Counseling & Preventive Services
                                                                Manhattan                                                      113                                                                              46    —   49   Early Childhood Education
                                                                                                                                   119                                                                                         Foster Care & Adoption Services
                                                                                                                                                                                                                50    —   57
                                                                             42                    80                                                                                Ottilie
                                                  Fulton Street                                                          37
                                                                                                                              54                                                     Campus                     58    —   88 Services & Homes for Teens
                                                  Family Services                                                                                                     96   62
                                                                                                                               5                                                                                89    —   98 Mental Health Services & Residences
                                                  Center                                                            38                        91 92 94 100     83 98
                                                                                              71 33
                                                                                                                         Queens                      115
                                                                                                                                                             61 79
                                                                                                                                                               78 70                                            99    —   104 Schools
                                                                                                  34                                           3 4 19
                                                                                             114     23                                  81                       7                                             105   —   123 Programs in Public Schools

                                   NEW YORK                                             117 118

                                                                                       51 122 46
                                                                                                      36 95 55
                                                                                        49 121120 102 64 74
                                                                                                            75 22
                                                                                                                 116 57
                                                                                                                                                47 50 104
                                                                                                                                              68 82

                                                                                                                                                                                                                               Executive Offices
                                                    Center for                                       34 39 66 116                                  59
                                                                                                                                                                                                                               Major Sites
                                                    Family Life                                      42 40      76
                                                                       108 67 45                84 105 106
                                                                                       72                    9
                                                                       107 53 44                    123
                                                                                          73 85                                                                                                               Please note: In addition to these program sites, SCO oversees more than
                                                                       109 112 43
                                                  103 86                                                                                                                             Family Life              1,000 foster homes throughout the metropolitan area.
                                                                       110 111

                               Staten Island
                                                                                                                                         Dynamics                                                                         Greenport
                                                                                                                                                                                                                          Gr np
                                                                Madonna                                      Services
                                                                Heights                                      Center                                                                                                                                                                     M


                                                                                                                         Po Jef
                                                                                                                         Port J
                                                                                                                          ort Jefferson
                                                                                                                                                                                                iverhead            th Sea
                                                                                                                                                                                                                 North S
                                    99                                                                                              15
                                   1                                       h
                                                                       Northport                                                                                                      Suffolk
                                    Glen Cove
                                    G    C                               11 29                                                      13
                                                                                               2 18
                                                                                               53 56

                                                                        12          24 27
                                                                                     26 91
                                                                                                                                                                                                 Westhampton Beach

                                         Nassau            25
                                                                      30 32 88 89 90 101

                                                                                                                                                    B lport
                                          e p ea
                                          emps ead
                                         He pstead              10        a
                                                                         Ba ylon
                                                                     L denh
                                                                     Lin enh
                                                                                                                                              LONG ISLAND
                                 Long Beach

                        DEAR FRIENDS,

                        Here at SCO, we provide services that are highly specialized and tailored to the
                        unique needs of children and families. We have a reputation and a passion for
                        helping populations who are too often underserved and overlooked. This year we
                        continued and expanded our commitment to those in need.

                        We experienced many exciting achievements in 2006. We opened a new state-of-
                        the-art Early Childhood Center to serve young families in the high-need Bedford-
                        Stuyvesant community. We launched SCO Works – an internship program that
                        gives job opportunities to teens coming out of foster care. And perhaps our
                        proudest achievement was passing the rigorous accreditation process of the
                        Council on Accreditation for Children and Family Services with an outstanding
                        rating of 99.26%…a testament to the dedication and abilities of everyone in the
                        SCO organization. Please take a moment to learn more about some of our other
                        programs and highlights and see what’s in store in the coming months.

                        Our supporters and partners can and do rely on us to deliver the highest quality of
                        services with the greatest efficiency possible. Ninety-three cents out of every
                        dollar SCO receives goes directly to help children and their families. We have one
                        of the lowest administration rates in the social services industry. Our dedication to
                        the work we do carries through to the way we run our organization.

                        Ours is a large and diverse array of services. The needs are complex. The solutions
                        are rarely easy or immediate. It is difficult work, but it is also very rewarding. We
                        look forward to facing the challenges in the coming year with the same passion
                        and conviction that we always have. And with your continued support, we will bring
                        hope to thousands more children and families in our community.


                        Douglas Schloss
                        Chairman of the Board

                        Robert J. McMahon
                        Executive Director
[1] SCO Annual Report
                                                                                  FOSTER CARE AND ADOPTION                                   SERVICES FOR PEOPLE WITH
                                                                                  We move families from crisis to safety, using              DEVELOPMENTAL DISABILITIES
                                                                                  a family-centered approach that facilitates the            We help people with developmental disabilities realize
                                                                                  successful reunification of children and their families.   their full potential and become participating members
                                                                                                                                             of their community.
                                                                                  On a daily basis, we provide temporary homes for
                                                                                  more than 1,300 children in foster homes across the        Our continuum of services for people with developmen-
                                                                                  metropolitan area.                                         tal disabilities includes group homes, a residential
                                                                                                                                             treatment center, specialized foster homes and family-
                                                                                  Always, our goal is to provide permanent families for      based support services across Queens, Brooklyn, and
                                                                                  children. In 2006, 245 children were safely returned       Long Island.
                                                                                  home and we facilitated more than 130 adoptions.
                                                                                                                                             MENTAL HEALTH SERVICES
                                                                                  SERVICES AND HOMES FOR TEENS
                                                                                  We work to empower youth to overcome obstacles on
                                                                                                                                             AND RESIDENCES
                                                                                  the path to self-sufficiency.                              We provide the support and coping skills emotionally
                                                                                                                                             disturbed children and young adults need to live and
                                                                                  Our 30 community residences for teens include resi-        function in their communities.
                                                                                  dences for teen mothers and their babies, group homes
                                                                                  for teens facing extraordinary challenges and homes for    Our continuum of services for this population includes
                                                                                  GLBTQ youth.                                               Ottilie — a psychiatric residence for teens in Queens,
                                                                                                                                             group homes, family based support services and com-

                        OUR CONTINUUM                                             We work with these young people to help them rebuild
                                                                                  family and other connections, establish supportive new
                                                                                                                                             munity aftercare support.

                              OF CARE                                             relationships with caring adults and build community
                                                                                  connections so that they can return to the most
                                                                                                                                             HOMELESS RESIDENCES AND SERVICES
                                                                                                                                             We provide temporary shelter while working to help
                                                                                  family-like setting possible.                              individuals and families break the cycle of dependence.
                              SCO Family of Services delivers more than 100
                              programs throughout New York City and Long
                                                                                  FAMILY COUNSELING AND                                      We operate three shelters in Brooklyn for homeless and
                                                                                                                                             runaway teens. We have nine shelters for women and
                                                                                  PREVENTIVE SERVICES                                        children on Long Island. We also operate three family
                              Island. We strive to strengthen the foundation of   We provide a comprehensive range of services to            shelters in Brooklyn, one in the Bronx, and have sever-
                                                                                  sustain and nurture the family, ensure the well being of   al more on the drawing board.
                              families by meeting the unique needs of each
                                                                                  the community’s children, and create an environment
                              individual through our broad array of leading and   where youth can emerge as confident, capable adults.
                                                                                                                                             EARLY CHILDHOOD EDUCATION
                              innovative community based programs.                These services are concentrated in three communities:
                                                                                  Bedford Stuyvesant (Family Dynamics), Sunset Park          We give families the tools they need to successfully
                              Our core service areas include:                     (Center for Family Life) and Northwest Queens.             nurture their babies.

                                                                                                                                             We provide Family Enhancement Services for birth par-
                                                                                  SCHOOLS                                                    ents with children in Foster Care. We developed “Baby
                                                                                  We give children and young adults the tools they need      and Me”, a developmental play group for parents with
                                                                                  to succeed.                                                children in foster care as well as for intact families from
                                                                                                                                             the communities we serve. “Baby and Me” helps
                                                                                  We operate 3 special education schools serving the         parents build healthy attachments with their young
                                                                                  children who reside at our Ottilie and Madonna Heights     children.
                                                                                  Campuses and at St. Christopher’s Home in Sea Cliff.
                                                                                  We also operate two schools for at-risk teens and an
                                                                                  additional two schools are currently on the drawing
                                                                                  board for Queens.

                                                                                  PROGRAMS IN PUBLIC SCHOOLS
                                                                                  We provide After-School and Community Enrichment
                                                                                  programs in two Brooklyn neighborhoods – Bedford
                                                                                  Stuyvesant and Sunset Park.

                                                                                  Our after school, evening, and weekend services work
                                                                                  with more than 4,000 children and families under
                                                                                  the auspices of Family Dynamics and the Center for
                                                                                  Family Life.

[2] SCO Annual Report                                                                                                                                                                                      2006 [3]
                                                                                       NEW EARLY CHILDHOOD CENTER
                                                                                       OPENS IN BEDFORD-STUYVESANT
                                                                                       SCO opened an Early Childhood Center at 1221 Bedford Avenue. In addition
                                                                                       to providing programmatic strategy and funding, Robin Hood Foundation
                                                                                       made possible the design and construction of the new 5,000-square-foot
                                                                                       center that is home to three programs focused on early childhood develop-
                                                                                       ment. One of the programs, Nurse-Family Partnership, is a strategic initiative
                                                                                       in Mayor Michael Bloomberg’s Anti-Poverty Plan.

                                                                                       ACS AWARDS $1.1 MILLION TO CREATE
                                                                                       MORE “FAMILIES FOR TEENS”
                                                                                       SCO is the largest provider of foster care services in New York. Because of
                                                                                       our expertise in this area, the NYC Administration for Children’s Services
                                                                                       (ACS) awarded an additional $1.1 million to SCO to enhance our foster fam-
                                                                                       ily recruitment, training and services for teenagers.

                                                                                       SCO PASSES RIGOROUS ACCREDITATION
                                                                                       PROCESS WITH FLYING COLORS
                                                                                       The Council on Accreditation (COA) partners with human service organiza-
                                                                                       tions worldwide to improve service delivery outcomes by developing, apply-
                                                                                       ing, and promoting accreditation standards. In 2006, SCO received an out-
                                                                                       standing rating from COA – fully complying with 99.26% of all COA stan-

                                                                                       “SCO WORKS” GIVES YOUTH JOBS –
                                                                                       BUILDS LIFE SKILLS AND SELF-ESTEEM
                                                                                       SCO operates a network of residences and supervised apartments for young
                                                                                       adults in need of temporary respite, including youth in foster care. SCO pro-
                        HIGHLIGHTS                                                     vides a variety of on-site services for youth designed to help prepare them for
                                                                                       independence. In 2006, in partnership with the Heckscher Foundation, SCO
                              2006                                                     launched “SCO Works” – an internship program that gives our young people
                                                                                       job opportunities. For most of our youth, these are their very first jobs and
                                                                                       the very first paychecks they have ever earned.
                             In 2006, SCO Family of Services again experienced
                             exciting growth that allowed us to expand our programs,   FAMILY DYNAMICS EXPANDS
                                                                                       FAMILY REHABILITATION PROGRAM
                             further enhance the quality of our services, and extend   The Family Rehabilitation Program is a preventive program that helps fami-
                             our reach to more children and families in need           lies facing substance abuse problems. The program includes both in-home
                                                                                       services such as one-on-one counseling and referrals as well as center-based
                             throughout the metropolitan area.                         services such as parenting workshops, anger management groups and other
                                                                                       support groups. ACS recently collaborated with Family Dynamics to expand
                                                                                       its program to reach an additional 30 families per year.

                                                                                       MADONNA HEIGHTS STUDENTS TAKE TOP
                                                                                       HONORS IN ART CONTEST
                                                                                       Students in the therapeutic arts program at Madonna Heights School took
                                                                                       first place in the Holocaust Memorial & Tolerance Center of Nassau County’s
                                                                                       10th Annual Visual Arts Competition. Also, numerous works were selected for
                                                                                       exhibition at Nassau Community College.

                                                                                       CENTER FOR FAMILY LIFE ADVOCATES
                                                                                       FOR NEW SCHOOL IN SUNSET PARK
                                                                                       The Sunset Park High School Task Force – which our youth leaders helped
                                                                                       organize – became a catalyst for the groundswell of support and media
                                                                                       coverage for the long-needed public high school in Sunset Park, Brooklyn. In
                                                                                       a ceremony on the site of the future high school, the governor, the mayor, and
                                                                                       other elected officials came together to sign the legislation necessary to
                                                                                       ensure that the Sunset Park High School is realized by 2009.
[4] SCO Annual Report                                                                                                                                                    2006 [5]
STATEMENTS OF                                                                                                                                                                                                                                                ACTUAL
UNRESTRICTED                                                                                                                                                                                                                                                 EXPENDITURES
ACTIVITIES YEARS                                                                                                                                                                                                                                             FISCAL YEAR 2006
ENDED JUNE 30, 2006
                         REVENUE                                                               June 30, 2006                 June 30, 2005
AND 2005
                         Current year program revenues                                         141,087,161                    128,195,563
                         Prior years’ cost reimbursement adjustments                               531,291                        436,408
                         Net assets released from restrictions                                   4,163,895                      3,644,540
                               Total program revenue                                           145,782,347                    132,276,511                                                 6.20%
                                                                                                                                                                 mental                             programs    7.16%
                                                                                                                                                                 health                             in public
                         DIRECT PROGRAM EXPENSES                                                                                                                                                    schools
                                                                                                                                                                 services +
                                                                                                                                                                 residences                         2.87%
                         Contract programs                                                      45,707,425                     34,667,955                        10.38%
                         Foster boarding homes                                                  24,976,240                     26,333,582                                                                                                 services for
                         Group homes                                                            13,407,051                     12,586,897                                                                                                 people with
                         Medicaid programs                                                       9,436,460                     10,007,036
                         Residential treatment facilities                                        9,617,847                      9,314,723                                                                                                 18.79%
                         Residential treatment centers                                           9,698,759                      9,282,080
                         Individual residential alternative                                      7,325,997                      6,948,249
                         Schools                                                                 7,934,884                      6,781,425
                         Intermediate care facilities                                            5,912,551                      5,616,345            services
                                                                                                                                                     + homes
                         Shelter programs                                                        2,172,896                      2,132,783
                                                                                                                                                     for teens
                         Enhanced independent living                                             1,046,872                        992,401            12.92%

                               Total direct program expenses                                   137,236,982                    124,663,476

                         Management and Other Indirect Expenses                                                                                                                                                                                 homeless
                                                                                                                                                                                                                                                + services
                         Management and general                                                 10,306,381                       8,985,609                                                                                                      13.64%
                         Fund raising                                                              278,741                         252,875

                         Total management and other indirect expenses                            10,585,122                      9,238,484

                         Total expenses                                                        147,822,104                    133,901,960

                         CHANGE IN NET ASSETS FROM OPERATIONS                                   (2,039,757)                    (1,625,449)                                                                                       family counseling
                                                                                                                                                                              foster care +                                      + preventive services
                         Contributions and Other Revenue                                                                                                                      adoption services                                  7.05%
                        * Contributions and other income                                          1,395,403                      1,737,019
                                                                                                                                                                                                                early childhood education
                         Interest and dividend income, net                                          620,984                        625,705
                         Realized gain or (loss) on sale of marketable securities                          0                        51,999
                         Change in unrealized appreciation of investments                           593,713                        417,251
                                                                                                   _________                      _________

                               Total Support and Other                                            2,610,100                      2,831,974

                         Surplus                                                                     570,343                     1,206,525

                        * Note: Donations restricted to program, amounting to $5,135,529 for the fiscal year ending on June 30, 2006, are
                          listed on page 4 of our audited financial report. For a complete copy of this report, please call the Development Office
                          at 516-671-1253.
[6] SCO Annual Report                                                                                                                                                                                                                                                   2006 [7]
                                     Chairman’s Circle - ($35,000+)     Cantor Fitzgerald and Co.          Lynn Brenner
                                     Mr. & Mrs. Keith Anderson          C & B Consulting Group, Inc.       Mr. & Mrs. John J. Brown
                                     Anonymous                          Chem Rx Long Term Care             Bunzl New York
                                     Benjamin S. Bram                    Pharmacy                          Mr. and Mrs. Tobias Caldwell
                                     Anne L. Peretz                     CIBC World Markets                 Thomas P. Callan
                                     Mr. & Mrs. Douglas Schloss         Patricia L. Cook                   Capstone Business Credit LLC
                                                                        Credit Suisse Securities, LLC      Carbone & Malloy, Inc.
                                     Benefactors - ($20,000+)           Deutsche Bank                      Carrieri & Carrieri
                                     Mr. and Mrs. Leonard Genovese      Mr. and Mrs. Thomas N. Dufek       Mr. and Mrs. Philip J. Catapano
                                     Dennis Hackett                     Lori & Laurence Fink               CitiGroup
                                     Madonna Heights Ladies Auxiliary   Freddie Mac                        Comax Manufacturing Corp.
                                     Seaboard Securities, Inc.          Goldman, Sachs & Co.               Jonathan Connors
                                     The Treiber Family Foundation      Ben Golub                          Countrywide Securities Corporation
                                     Mr. & Mrs. H. Craig Treiber        Mr. and Mrs. Dennis Henchy         Crompco Corporation
                                     The Tyree Company                  HSBC Global Markets                Patrick F. Crossman, Esq.
                                     Whitsons Culinary Group            JP Morgan Chase                    Dahlman Rose & Co.
                                                                        Ellen & Rob Kapito                 Mr. and Mrs. James de Bruin
                                     Stewards - ($15,000+)              Kelso & Company                    Mr. and Mrs. Vincent J.
                                     Photeine M. Anagnostopoulos &      LaBranche & Co., Inc.                DeLaurentis
                                      James Stynes                      Mr. and Mrs. Alfred Lepore         Mr. and Mrs. Daniel C. Deasy III
                                     Astoria Federal Savings            Marathon Asset Management          Mr. and Mrs. James D. Deasy
                                     Mr. and Mrs. Gandolfo V.           MarketAxess Holdings, Inc.         E Trade Financial
                                      DiBlasi, Esq.                     MKP Capital Management, LLC        Farrell Fritz P.C.
                                     Getty Petroleum Marketing, Inc.    Mr. and Mrs. Stephen V. Murphy     Karen Freedman

                        DONOR LIST   Josephine W. Kixmiller
                                     Koehler Masonry Corporation
                                                                        New York Recyclers
                                                                        Nomura Securities
                                                                                                           Mr. and Mrs. John C. Gallagher
                                                                                                           Mr. and Mrs. Robert F. Gartland

                             2006    Guarantors - ($10,000+)
                                                                         International, Inc.
                                                                        Northrop Grumman
                                                                        Old Westbury Golf & Country Club
                                                                                                           Good Shepherd Provincialate
                                                                                                           Mr. and Mrs. Michael Grgich
                                                                                                           A. Govoni Backhoe Services, Inc.
                                     Dr. Philip Bonanno and             Optimum Lightpath, Inc.            Mr. and Mrs. Mason Haupt
                                      Dr. Dorothy Whalen                Jesse W. Peretz                    Higgins Fire Protection
                                     Citigroup Global Markets, Inc.     RBS/Greenwich Capital Markets      John E. Hill Associates, Inc.
                                     Colonial Wire & Cable Co.          Ralph Schlosstein & Jane Hartley   Mr. and Mrs. Peter K. Hunt
                                     Mr. and Mrs. John D’Addario        Skadden, Arps, Slate,              ITG, Inc.
                                     Lehman Brothers                     Meagher & Flom, LLP               Jackson Lewis LLP
                                     Richard A. Lenon                   State Bank of Long Island          John Jennings
                                     Links Trading LLC                  Steel Equities                     John Katzman & Alicia Ernst
                                     Mr. and Mrs. Joseph Mancino        Thomson TradeWeb                   Sharon K. Kilmer
                                     Mr. and Mrs. Kevin T. McAteer      Tyree Travel, LTD                  Christie & Scott D. Krase
                                     Merrill Lynch                      UBS Investment Bank                Gloria & Richard Kushel
                                     Morgan Stanley                     Vassalotti Associates              Mr. and Mrs. Joseph J. Labriola
                                     Mr. & Mrs. William F. Tyree         Architects, LLP                   Leerink Swann & Company
                                     Mr. and Mrs. Lee Vance             Wachovia Capital Markets           Dr. and Mrs. Joseph Lopez
                                                                        Bonnie T. Webster                  Ketty & Francois Maisonrouge
                                     Patrons - ($5,000+)                Wheatley Agency, Inc.              Maspeth Federal Savings
                                     Aetna, Inc.                                                             and Loan
                                     Ahmuty, Demers & McManus           Partners - ($2,000+)               Maxcor Financial, Inc.
                                     Mr. and Mrs. William Ahmuty III                                       Mr. and Mrs. Robert J. McMahon
                                                                        4C Foods Corp.
                                     American Manhasset                                                    Metro Environmental Services
                                                                        Joseph Azznara
                                     Amherst Securities Group                                              Mutual of America
                                                                        Mr. and Mrs. Michael L. Bader
                                     Mr. & Mrs. Scott Amero                                                Mr. and Mrs. John W. Near
                                                                        Mr. and Mrs. Roger L. Bahnik
                                     Arnone, Lowth, Fanning,                                               Michael J. Pizzo
                                                                        Mr. and Mrs. L. Jeffrey Baldwin
                                      Wilson & Liebowitz                                                   Mr. and Mrs. Thomas N. Purchase
                                                                        Bank of America
                                     Banc of America Securities, LLC                                       Mr. and Mrs. Peter Quick
                                                                        Bank of New York
                                     Barclays Capital                                                      RBC Capitol Markets
                                                                        Mr. and Mrs. Alvin Benjamin
                                     Mr. & Mrs. Francis Baxter                                             Gregory G. Riley
                                                                        Bethpage Federal Credit Union
                                     Bear, Stearns & Co, Inc.                                              Rivkin, Radler LLP
                                     BlackRock Financial Management                                        Rochdale Securities LLC
                                                                        Mr. and Mrs. Bruce Bolander
                                     BNP Paribas                                                           Rothco
                                                                        Jonathan D. Bram
                                     Mr. and Mrs. Henry Brengel                                            Edward R. Sacks
                                                                        Mr. and Mrs. Edward F. Brennan

[8] SCO Annual Report                                                                                                                           2006 [9]
                                                                                                                                  Dr. and Mrs. John Franco             Mr. and Mrs. Martin Sass               The John R. & Inge P.
          Angelina R. Schad                     Mr. and Mrs. Hadley Ford               Mr. and Mrs. Lawrence E. Tyree
                                                                                                                                  Mr. and Mrs. James Frey              Jean-Paul Saulnier                      Stafford Foundation
          Signature Bank                        Mr. and Ms. Nicholas A. Fox            Mr. and Mrs. Peter Tully
                                                                                                                                  Mr. and Mrs. James P. Gay            Mark Schlau                            Kenworthy Swift Foundation
          Susan Sinclair                        Fusion Architects                      UHY Advisors
                                                                                                                                  Mr. and Mrs. Randall Gianopulos      Martin Schneider & Debra Fine          The Kissinger Family Foundation, Inc.
          Joyce Spincola                        Mr. and Mrs. Amedeo Gabrielli          Mr. and Mrs. John B. Walsh
                                                                                                                                  Glen Head Country Club               Dr. and Mrs. Derek V. Schuster         Long Island Charities Foundation
          Mr. and Mrs. Edward W. Stack          Mr. and Mrs. John Genovese             Walter’s West End Supply, Inc.
                                                                                                                                  Good Shepherd Services               Sherlock Homes Realty Corp.            The Malcolm Gibbs Foundation, Inc.
          Susquehanna Financial                 Giambalvo, Kilgannon, Giammarese       Warren Elevator Service Co., Inc.
                                                                                                                                  Richard Guerin, Jr.                  John Slowik and Victoria Hamilton      Mary J. Hutchins Foundation, Inc.
          Mr. and Mrs. Joseph N. Sweeney        Glen Cove Police Benevolent            Mr. and Mrs. Kuno Weckenmann
                                                                                                                                  Mrs. and Mr. Margaret Guttieri       Status Data, Inc.                      Members Handicapped Childrens
          Tahoe Advisers                          Association                          Mr. and Mrs. Marc S. Wenger
                                                                                                                                  Mr. and Mrs. Martin Halbfinger       David Sunshine                          Fund, Inc.
          Mr. and Mrs. Bruce D. Treiber         Dr. and Mrs. Michael Grieco            Wilmington Products USA
                                                                                                                                  Stephen M. Halperin                  Sutton & Edwards, Inc.                 The Milton V. Brown Foundation
          Tweezerman International Corp.        Anthony Guida                          Mr. and Mrs. Michael Zambrelli
                                                                                                                                  Mr. and Mrs. David T. Hamamoto       Symbol Technologies, Inc.              Henry & Lucy Moses Foundation, Inc.
          Mr. and Mrs. Stephen J. Tyree         Mr. & Mrs. Gerard Harris
                                                                                                                                  HIP Health Plan of New York          Tanglewood Corporation                 New Hampshire Charitable
          Mr. and Mrs. William M. Tyree         Thomas Heinimann                       Supporters - ($500+)
                                                                                                                                  Mr. and Mrs. Charles Hobbs           Mrs. Millicent H. Treiber               Foundation
          United Service Workers Union          Henrich Equipment Co., Inc.            Rod Aboff
                                                                                                                                  Mr. and Mrs. Lawrence Hochberg       Mr. and Mrs. Robert Turchyn            The New York Community Trust
          Utendahl Organization                 Thomas Humphrey                        AB Oil Service, Ltd.
                                                                                                                                  Home Care Concepts                   Mr. and Mrs. Robert F. Van der Waag    New York Mercantile Exchange
          Wantagh Memorial Congregational       Mr. and Mrs. Tim Ingrassia             Mr. and Mrs. Joseph Accardi
                                                                                                                                  Jeffrey L. Rosenberg &               Mr. and Ms. Marco Vargas               Charitable Foundation
           Church                               Island Pump & Tank Corp.               Mr. and Mrs. Richard N. Adonailo
                                                                                                                                   Associates LLC                      Francis Vetrano                        New York Women’s Foundation
          Weeden & Co., L.P.                    Kings Hardware, Inc.                   Alan L. Levine, CPA
                                                                                                                                  Mr. and Mrs. Bruce Johnson           Elena Villafane                        Newsday Help A Family
          Williams Trading, LLC                 Knights of Columbus                    Allied Environmental Group, Inc.
                                                                                                                                  Kaufman Management Company           Mr. and Mrs. Daniel C. Walden          North Fork Foundation
          WLNY-55                               Mr. and Mrs. David Light               AMX International
                                                                                                                                  Mr. and Mrs. Owen L. Kilgannon       Mr. and Mrs. Charles Weinstein         Permanent Judicial Commission
          Women’s Club of Flower Hill           Mr. and Mrs. Samuel G. Liss            Mr. and Mrs. Robert Anderson
                                                                                                                                  King Kullen Grocery Co., Inc.        Mr. & Mrs. Michael Whitcomb             on Justice for Children
                                                Michael Lustig and Rachel Brody        Aquarion Water Company of Sea Cliff
                                                                                                                                  John S. Klein                        Jeffrey C. Zwerling                    The Pinkerton Foundation
          Guardians - ($1,000+)                 Mr. and Mrs. George E. Malhame         Archery Paint & Plaster, Inc.
                                                                                                                                  Jeffrey Kransdorf                                                           The Robin Hood Foundation
          110 Sand Company                      Mr. and Mrs. Joseph M. Matarese        Mr. & Mrs. Randolph Arnegger
                                                                                                                                  Land Rover Glen Cove                 Foundations                            Rubin-Henry Family Foundation
          Louise Abruzzo                        Mr. and Mrs. Peter J. McKenna          Arrow Concrete Corporation
                                                                                                                                  Local 25 IBEW                        The Altman Foundation                  The Silverweed Foundation, Inc.
          Mr. and Mrs. Emmet Agoglia            Mr. and Mrs. Joseph T. McLaughlin      ASA Insurance Agency, Inc.
                                                                                                                                  Mr. and Mrs. Christopher Looney      Altria Employe Fund Committee          Sophia and William J.
          Anonymous                             MercyFirst                             Bank of Smithtown
                                                                                                                                  Joseph T. Madonia                    Andor Capital Management                Casey Foundation
          Ascension Lutheran Church             Lucille Mongelli                       Barrasso & Sons, Inc.
                                                                                                                                  Mr. and Mrs. Michael A. Maimone         Foundation                          The Starr Foundation
          Aventura Construction Services, LLC   Mr. and Mrs. Charles I. Montana, Jr.   Linda Basilice-Hoerrner
                                                                                                                                  Mr. & Mrs. Eugene Marmann            Anonymous                              Theodore Luce Charitable Trust
          Thomas P. August                      Dr. and Mrs. Alex M. Montazem          Roger H. Bennett
                                                                                                                                  Maurice A. Auerbach, Inc.            Bahnik Foundation, Inc.                The Tiger Foundation
          AvalonBay Communities, Inc.           Nassau County Fire Riders, Inc.        Brian B. Boehm, Esq.
                                                                                                                                  Eileen McGaw                         The Barker Welfare Foundation          The TigerShark Foundation
          Barker Aggregates, Ltd.               Nassau Italian Americans in            Mr. and Mrs. John J. Breen
                                                                                                                                  Midwood Securities                   Carnegie Corporation of New York       Town of Southampton
          Mr. and Mrs. Nicholas Bartolomeo        Government                           Bricklayers Allied Craftworkers Local #1
                                                                                                                                  Millenium Financial, Inc.            Catholic Charities Diocese             United Way of New York City
          Mrs. Joy Ellen Billhardt              Mr. and Mrs. Raffiq A. Nathoo          Brendan Buckley
                                                                                                                                  Rev. Arthur G. Minichello              of Brooklyn                          Valentine Perry Snyder Fund
          Bill Wolf Petroleum Corp.             Northville Industries                  C2G Environmental Consultants, LLC
                                                                                                                                  Mr. and Mrs. Robert Moran            Charles A. Frueauff Foundation, Inc.   van Ameringen Foundation, Inc.
          Dr. and Mrs. Tony H. Bonaparte        NYS Assoc. Nassau Chapter for          Mr. and Mrs. Frank Cardullo
                                                                                                                                  Martin Moroney                       Charles Hayden Foundation              Whitey Ford’s Children
          Mr. and Mrs. Lester Brafman             Superintendent of Schools            Catapano Engineering, P.C.
                                                                                                                                  Mr. & Mrs. Steve Mortati             Cheering for Children                   Foundation Inc.
          Dr. and Mrs. C. Edward Brennan          Buildings & Grounds                  The Center for Specialized
                                                                                                                                  New England Linen Supply Co., Inc.   Christopher D. Smithers                William T. Grant Foundation
          John Brennan & Fran Sullivan          O’Shea Properties                       Veterinary Care
                                                                                                                                  New York Commercial Bank               Foundation, Inc.
          Mr. and Mrs. Arthur Bulgrin           Mr. and Mrs. George Pandel             Certified Carting, Inc.
                                                                                                                                  North Shore Today                    Citibank Employees Foundation
          James Buonfiglio                      Patrick J. Collins, Inc.               Chaminade High School
                                                                                                                                  Mr. and Mrs. Adebayo Ogunlesi        The Clark Foundation
          Callaghan Nawrocki LLP                Mr. and Mrs. Angelo J. Pegno           Kevin Clare and Nancy Shute
                                                                                                                                  Oheka Management Corporation         Deutsche Bank Americas Foundation
          Mr. and Mrs. Troy Caruso              Mr. and Mrs. John J. Prior, Jr.        Mr. and Mrs. Charles I. Cogut
                                                                                                                                  Stuart Olsten                        The Felix & Elizabeth
          Central Business Systems              Mr. and Mrs. Robert Pruzan             Paul Colligan
                                                                                                                                  OMNTEC Mfg., Inc.                      Rohatyn Foundation
          Mr. and Mrs. Alvia R. Charnes         Mr. and Mrs. Martin J. Racanelli       William F. Corrigan
                                                                                                                                  Hugh O’Neill                         Frank J. Antun Foundation
          Mr. and Mrs. George Colettis          Jay Raubvogel                          Mr. and Mrs. Peter S. Cope
                                                                                                                                  Margaret M. O’Shea                   Fund for the City of New York
          Patrick J. Collins                    Robair & Jin Reichenstein              Crest Hollow Country Club
                                                                                                                                  Mr. and Mrs. John Peluso             Fund For The Poor, Inc.
          Mr. and Mrs. Hamilton Crawford        Steven Reiss & Mary Mattingly          Mr. and Mrs. Thomas W. Cullen III
                                                                                                                                  Mr. and Mrs. Joseph Pennestri        Grace J. Fippinger Foundation
          Mr. and Mrs. Vincent M. Croutier      Carol-Ann Ross                         Murat Davidson and Sally Peters
                                                                                                                                  Felix Petrillo                       Graham Family Charitable Foundation
          Mr. and Mrs. Paul Cuneo               Mr. and Mrs. David Scialabba           DiFazio Electric, Inc.
                                                                                                                                  Gerald Petrillo                      Harry & Rita White Foundation, Inc.
          Mr. and Mrs. John D’Alimonte          Schwing Electrical Supply              Don-a-Lynn Produce, Inc.
                                                                                                                                  Pride Solvents and Chemical Co.      Havens Relief Fund Society
          Mr. and Mrs. Richard DeMatteis        Mr. and Ms. Kenneth C. Sellin          Dr. and Mrs. Michael Dubin
                                                                                                                                  Margaret M. Price                    Heckscher Foundation for Children
          Mr. and Mrs. Joseph DeRiso            Mr. and Mrs. Stuart Sharoff            ECP Design & Service Group LTD
                                                                                                                                  Mr. and Mrs. Joseph L. Ravener       Hyde and Watson Foundation
          Designed Interiors                    Dr. and Mrs. John P. Sheehy            Mr. & Mrs. William Els
                                                                                                                                  Regal Carriage Luxury Car and        Independence Community Foundation
          DiCarlo Distributors                  Silverite Construction Corp.           Emigrant Savings Bank
                                                                                                                                   Limousine Service, Inc.             Ira DeCamp Foundation
          DJS Consulting, Inc.                  Sisters of St. Dominic                 Engineers Country Club
                                                                                                                                  Arlene Resnick                       Iris and Saul Katz Family Foundation
          Mr. and Mrs. Michael J. Driscoll      Mr. and Mrs. Donald Stein              Steven Fass, Esq.
                                                                                                                                  Ronald E. Roel                       Jackie Sayegh Duggan Charitable
          Driscoll Foods                        Stirling Insurance Agency              Ferrara Bros. Building Materials Corp.
                                                                                                                                  Mr. and Mrs. Harry R. Sachse           Foundation, Inc.
          Mr. and Mrs. George L. Engelke        Mr. and Mrs. Peter Sullivan            Thomas Fitzgerald
                                                                                                                                  Saints Philip and James Church
          Engineers Local 138                   Mr. and Mrs. Alex Swanson              Dr. and Mrs. Hussein D. Foda
                                                                                                                                  Mr. and Mrs. David A. Sanford
          FJC Security Services, Inc.           Mr. and Mrs. Peter Treiber             Mr. and Mrs. Martin Foley

[10] SCO Annual Report                                                                                                                                                                                                                                2006 [11]
                                                                               AWAY FROM YOUR FAMILY
                                                                               RAMONA H.

                                                                               Being away from your family is very hard and
                                                                               upsetting. It hurts. I don’t know my family –
                                                                               never seen or heard from them. I don’t even
                                                                               know if they are dead or alive. For all the kids in
                                                                               SCO who can relate to my problems, when you
                                                                               grow up and have your own family, make sure
                                                                               that you are there for your kids. Give them the
                                                                               love that you never had. Show them you care.

                             IN THEIR
                                OWN VOICE
                             Each day can be a struggle for those with cognitive and
                             emotional limitations, as well as, in many cases, a lack of
                             family support. These two young adults are very typical of
                             those served at the Ottilie Residential Treatment Facility.

                                                                                    “Our role is to provide these kids with the skills,
                                                                                     the drive and the hope for a better today and
                                                                                     better tomorrow.”

                                                                                     —Jim Nyreen
                                                                                      Assistant Executive Director,
                                                                                      Mental Health Programs

                         GROWING UP
                         JACK F.

                         Believe it or not, I am 6 feet 5 inches tall.
                         However, inside I am still a kid. I do not want to
                         grow up. I wish Never Neverland was a reality. I do
                         not want to have responsibility. I do not want to
                         answer to grown ups. But kids have to grow up one
                         day in their lives. I’m 19 years old and I need to
                         grow up, but it will be very hard.

[12] SCO Annual Report
Chairman                      Executive Director
Douglas Schloss               Robert J. McMahon

Vice Chairman                 Chief Financial Officer
Dennis E. Henchy              Dewey Howard

Vice Chairman                 Director of Human Resources
H. Craig Treiber              Roslyn Marett

Secretary                     Assistant Executive Director
Edward W. Stack               Programs for the Developmentally Disabled
                              Susan Moran
Assistant Secretary
                              Assistant Executive Director
Photeine M. Anagnostopoulos
                              Mental Health Programs
                              James Nyreen
Thomas N. Dufek
                              Assistant Executive Director
                              Adolescent Services
Assistant Treasurer           Douglas O’Dell
Joseph M. Matarese
                              Assistant Executive Director
Yvette Arnold, RGS            Family Foster Care and Adoption
Roger Bennett                 Mary Odom
Tony H. Bonaparte, Ph.D.
Benjamin Bram                 Assistant Executive Director
Dorothy Brengel               Business Operations
Brian Edwards                 Dan Randazzo
John Gallagher
Barbara A. Gannon             Director of Finance
Joan Imhof                    Amparo Robayo
Fritz Gerald Jean
Paulette LoMonaco, RGS        Assistant Executive Director
Judy Mannix, RGS              Special Assistant to the Executive Director
Rev. Msgr. Robert J. Thelen   Renee Skolaski-Anderson
Cynthia King Vance
                              Assistant Executive Director
Chairman’s Committee          Madonna Heights Services
Keith Anderson                Rosemary Stein
Thomas Fanning
Leonard Genovese              Director of Institutional Advancement
Dennis Hackett                Renee Swanson
Mary Paul Janchill, RGS
Stephen V. Murphy             Assistant Executive Director
James Stynes                  Family Dynamics and Selected Programs
William F. Tyree              Art Zanko

                              Design: Rebecca Lown Design
SCO                               Family of Services
C a r i n g f o r Pe o p l e • C o m m i t t e d t o Fa m i l y • C o n n e c t e d t o C o m m u n i t y

                                                                                                FAST FACTS
                                                                                                            •   2006-2007 Revenues: $161 Million
                                                                                                            •   2005-2006 Revenues: $148 Million
                                                                                                            •   Administrative Costs: 7%
                                                                                                            •   Employees: 3,015
                                                                                                            •   Number of Program Sites: 123
                                                                                                            •   Number of People Served: 30,000+ Annually
                                                                                                            •   Service Delivery Areas: Brooklyn, Bronx, Manhattan,
                                                                                                                Queens, Staten Island, Long Island
                                                                                                            •   Core Service Areas
                                                                                                                • Foster Care & Adoption
                                                                                                                • Homes & Services for People
                                                                                                                  with Developmental Disabilities
                                                                                                                • Homeless Residences & Services
                                                                                                                • Early Childhood Education
                                                                                                                • Schools
                                                                                                                • Programs in Public Schools
                                                                                                                • Family Counseling & Preventive Services
                                                                                                                • Services and Homes for Teens
                                                                                                                • Mental Health Programs & Homes

                                                                                                                                             Executive Offices
                                                                                                                                             1 Alexander Place
                                                                                                                                             Glen Cove, NY 11542

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