Deaf Ministries

International Inc.

Financial Statements

and Reports

15th Annual General

Meeting

21st May 2016

DEAF MINISTRIES INTERNATIONAL INC.

and

DEAF ACTION FUND

Elected Australian Board

Chairperson Rodney Chapman

Vice Chairperson Susan Shannon

Public Officer Geoff Brooke

Treasurer Matthew Farmilo

Neville Muir

Lynne Graham

DEAF MINISTRIES INTERNATIONAL INC.

& DEAF ACTION FUND

ANNUAL GENERAL MEETING

Chairperson/Australian Director’s Report

1st January – 31st December 2015

On Behalf of the Australia Board of DMI I welcome all members and supporters to 2015 AGM. I continuously

thank God our father for all of you and for your prayers, support and service over this past year.

DMI

God has been so good to us through our ups and downs during the year. When we going down, God always

provides for DMI need. However, we must always keep financial in prayer and remind ourselves that God

is in control and we keep spreading the Gospel. I would like to thank Brenda, Matt, Jenny, Amy and our

band of volunteers for their hard work to get us through. I can see the work of DMI continuing to reach the

deaf here and overseas. Without your support and prayer, nothing will have done. Thank you for your

support to DMI. Please keep on pray with us without stopping; that the lord will continue to provide for

the work of DMI, which is HIS work. I have been helping Brenda, Matt and Jenny with their work so we can

shoulder the load together.

Deaf Action

We thank God too for the success of Deaf Action which has been steady with child supporters coming on

board during 2015. I thank Jenny for her dedicated service as Sponsorship Co-ordinator and the many hours

of work in the office keeping up with all the work related to his mammoth task. We are so thankful for this

and the extra work that she does in contributing to reports for World Relief Australia and representing Deaf

Action in many places around Victoria. We are grateful also to Susan Shannon, Faye Kendall and Jeanette

Lee for their volunteer work.

Special Thanks of Appreciation

On behalf of the Australian Board I extend special thanks to Neville and Lill for their ongoing years of

dedication in service to deaf people in many countries. It has been through their service that many deaf

people around the world have been blessed and found Christ and have been given hope for the future.

I also thank the members of the Australian Board for their service over the last year and for their support,

wisdom, prayers and dedication. Board members have been involved in fundraising for DMI through trivia

night at Berwick Church of Christ, sale of handcrafted cards, Filipino pearls and Chinese handcraft goods.

To all the members and supporters, involvement and encouragement as together we share the tasks and

challenges in our service to Deaf people around the world. I would like to thank Vizma Jones, Gwen

MacKelvie and Helen Ligt for volunteer help with newsletter mail outs.

I thank God for answering prayer from around the world. Neville’s bladder cancer is gone and as he needs

to keep receiving check up, let us continue to pray that the tumours never return, especially that prostate

cancer stays clear also.

Finally, I thank God, the Father of our Lord Jesus, Holy Spirit, for the privilege of serving Him as Chairperson

of the Australian Board of Deaf Ministries International and Australian Director of DMI/Deaf Action,

throughout this year.

Pastor Rod Chapman (Chairman)

Director for Australia

21 May 2016

DEAF MINISTRIES INTERNATIONAL INC.

& DEAF ACTION FUND

ANNUAL GENERAL MEETING

International Director’s Report

1st January – 31st December 2015

I have great pleasure in reporting on some of the activities and ways that the Lord blessed us during

the year of 2015. We are most grateful for God’s provision of finances, a measure of good health,

and wonderful workers both on the home front and overseas.

Our thanks go to the home office staff where Office Manager and Personal Assistant Brenda

Clearwater; Finance Manager Matt Farmilo; Deaf Liaison Officer Rod Chapman; Lill Muir who

liaisons the Norwegian side of the work and Administrative Assistant Amy Jack, all serve. They are

joined by volunteers Susan Shannon on a regular basis and others who come in when the load is

heavy. Thanks to Vizma Jones, Jeanette Lee, Gwen McKelvie and Helen Ligt.

A special word of thanks is extended to Jenny Reid, who for many years now has taken on the ever

increasing burden of the child sponsorship program. Jenny serves on a volunteer basis and it is

close to being a full time job. Thank you to everyone.

Overseas we also have a few paid administrative staff especially in Norway. Many volunteers make

up our boards in Japan and the US with representatives in the UK and Germany. We could not

function without this band of dedicated people. Thank you for your continued support.

God has opened up opportunities throughout the year to share the vision of the work with many

churches and groups. Jenny has been able to present the work at Clayton Church of Christ seniors’

group, together with Lill at Mill Park Baptist, the Stamp club and in other groups. Matt has shared

at Rosanna Christian Church. Susan, Lill, Brenda and Amy have represented DMI at various bazaars

and women’s groups selling Chinese and Filipino products and presenting the Deaf Action

Sponsorship Program in Beaconsfield, Leongatha and TLC church in Bayswater to name a few.

I have had the opportunity to speak at Telopea Church of Christ in Sydney, Bruce Rock Church of

Christ, Encounter Church of Christ, Malaga Church of Christ, Wilson Christian Church, Kalgoorlie

Uniting, Yokine Baptist, Kelmscott Baptist, all in Western Australia. In Victoria opportunity has been

given at Berwick Church of Christ, Beaconsfield Baptist, Mill Park Baptist, Cranbourne Baptist,

Pakenham Baptist Men’s group, Mitcham Baptist seniors’ group, Altona Evangelical Church,

Kyabram Uniting, Kyabram Christian Fellowship, Caulfield Methodist and Korumburra Uniting.

We were also able to have several display booths at the Belgrave Heights Convention and thanks to

those who helped with this outreach. We have appreciated these opportunities but would like to

see more.

Lill has been able to share in Churches in Norway and during two trips to the United States I have

made presentations in many churches across the country as well as having a booth at the Church of

Christ Missions Conference in Norfolk Virginia.

We are thankful for Barry Cutchie who has again lead a team to Ligao in the Philippines and for

Chris Hennequin and Geoff Brooke, who took another team from Berwick Church of Christ to Davao

in the Philippines. Their contribution and encouragement to workers there has been invaluable.

Our thanks and appreciation to them all. It was decided to make trips to the Davao work a regular

yearly effort. Past efforts have all been directed to Ligao but, the work done there has resulted in

great improvements so one of these outreach teams will be concentrating on Davao in the future.

The work in Ligao has greatly benefited from the change of leadership with Bing Medes and

Annabel Cuachin now in charge of the school and project. Also, there is a more settled scene in

Uganda as the new board and leadership of Sam Begumisa is bringing about spiritual growth.

I was able to make two trips to Africa during the year. One was in relationship to the imprisonment

of 3 deaf young men on false charges in Zambia. Work to free them is ongoing.

Matt and Jeff Weston were also able to visit Africa and presented seminars on management and

income-generating projects, to many of our workers in Uganda and to others who came to the

seminars from surrounding countries.

One of our workers, Dennis, commenced a new school for the deaf which he named the Neville

Muir Comprehensive School for the Disabled. This is in the town of Lira in Northern Uganda. Dennis

is physically disabled as well as being deaf but is very enthusiastic and passionate about getting the

gospel to the deaf. He started the school, which is now overflowing with needy young people but,

did so without any consultation with DMI. It has put us into a difficult position but he is pressing on

regardless!

Gunnar, In Yong from Korea and myself were able to visit the work in Egypt after a long absence.

Unfortunately DMI-Egypt has split into two, which has been a bit difficult. One section is hearing

governed and the other deaf! We inherited this situation when the work there was abandoned by

a previous leader. The hearing section has leaders who do not really understand the deaf and this

has caused the current situation we have. Nevertheless, both sections are working well and there

is growth in both areas.

Syria DMI also continues to thrive but constant prayer for the safety of our leaders and believers is

an ongoing request.

We thank God for another year where we are still free and able to serve Him in bringing the deaf to

know Jesus.

To God be the Glory

Neville Muir

International Director

2

2015 FINANCE REPORT

Total income received by DMI and Deaf Action for 2015 was $1.05 million, which is the second year

in a row that our income has been over the $1 million mark. While total income for 2015 is slightly

lower than the $1.1 million we received in 2014, once the conference income is excluded, the two

years are almost identical. It is good that our income has not dropped, however the fact that growth

in our income has stagnated is cause for concern. Both administration costs and the needs of our

fields continue to rise, and if DMI is to maintain our current level of ministry our income also needs

to increase. If our income continues to be stagnant, the end result will be a decrease in the level of

ministry.

A second concern relating to our income is that donations received from Australian donors has fallen

by 13% when compared to 2014, and is now at its lowest level since 2012. Thankfully, donations

received from other countries (particularly from Norway) have increased enough to cover the drop

in Australian donations, but it is clear that work needs to be done on increasing the level of

donations received from Australia.

I believe that there are two interrelated factors contributing to the drop in Australian donations.

Firstly, our Australian supporter base is generally older and some of our supporters are either

passing away, or having to reduce their donations due to retirement. This is just the natural order of

things, and is nothing to be concerned about. However, where DMI is struggling is that we are not

attracting enough new supporters to replace those that are having to reduce their giving. A major

reason for this is that we do not have anyone on our board or staff who has practical experience or

skills in fundraising and marketing. We are currently trying to address this issue by looking outside

our usual circle to find some new board members who have skills and experience in fundraising,

finance, business, governance etc.

It is also interesting to note that while donations from Australian supporters have fallen by $60,000,

donations to Deaf Action (which are all Australian supporters) has increased by $8,000. This has

been a consistent trend for several years now, so it seems clear that Australian donors are attracted

to Deaf Action because of the tax deductibility of their donations. To capitalise on this, we have

applied to the Australian Charities and Not-for-profit Commission to be registered as a Public

Benevolent Institution. This will give us tax deductibility in our own right, saving money on

administration fees paid to a third party, and giving us greater flexibility on how money donated to

Deaf Action is used.

On the expenses side, our total expenses have risen from $1.05 million in 2014 to $1.11 million in

2015. Of this total, $295,000 (26%) was spent on various administration costs, which is an increase

of $14,000 from 2014. Administration and fundraising expenses have therefore increased by less

than 5% compared to 2014, with total administration costs remaining lower than they were in 2012.

The most pleasing aspect of the finance report is that the amount we have sent to our fields has

increased by almost $41,000 compared to 2014. Funding our ministry is obviously our main

objective, so any increase in funds given to our fields is very welcome news.

However, it should be pointed out that this has only been possible by drawing down on our cash

reserves. In 2014, DMI recorded a net surplus of $44,000, which meant we started 2015 with a

reasonable amount of money in our bank account. In 2015, DMI recorded a net deficit of $56,000,

meaning that we ended the year with no surplus funds in our account, leaving us reliant on receiving

sufficient donations each month in order to be able to meet the budget allocated for our fields for

2016. Unfortunately, there have already been several months where our field’s budgets had to be

reduced due to insufficient funds.

In summary, 2015 produced some mixed financial news for DMI. We were able to send more money

to our ministry fields than we have previously, our administration expenses were kept relatively low

and total income levels did not fall from 2014 levels. However, Australian donations have fallen

significantly from previous years and we have only been able to increase the support to our ministry

fields by running a deficit, which has compromised our ability to send the full budget to our fields in

2016.

Income 2015 2014 Variation

Australian Donations 381,928 441,138 (59,210)

International Donations 662,383 600,255 62,128

Craft Sales 8,416 8,252 164

Interest 1,493 2,081 (588)

Conference Income - 47,333 (47,333)

Total Income 1,054,220 1,099,059 (44,839)

Expenses

Ministry field support 814,663 773,769 40,894

Payroll 202,341 192,531 9,810

Travel 41,118 26,395 14,723

Other administration 51,881 62,090 (10,209)

Total Expenses 1,110,003 1,054,785 55,218

Surplus / Deficit (55,783) 44,274 (100,057)

CONSOLIDATED PROFIT AND LOSS

& DEAF ACTION

DEAF MINISTRIES INTERNATIONAL

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

2011 2012 2013 2014 2015

Total Donations

Total

Australian

International

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

2011 2012 2013 2014 2015

Expenses

Ministry

Administration

DEAF ACTION INC.

ABN 31 884 272 774

December 2015 Sponsorship Report

In 2015 there was a decrease of 20 in the total number of sponsors and supporters in Australia. However the total amount given in 2015 has increased and is shown in the Financial Statements. The table below shows the number of sponsors over the last 5 years in Australia. Supporters are those who make general donations to the schools but do not sponsor a particular student or school.

Student & School Sponsorship, & Regular Supporters for the years 2011 to 2015

The cost of Student Sponsorship ($40 per month or $480 per year) has remained the same since October 2013. Not all sponsors pay the full amount but some pay extra. School Sponsorship donations are any amount chosen by the sponsor.

School Attendance for Years 2012 to 2015 Student enrolments fluctuate during the year and the figures below show a decrease at the end of 2015. I expect this will increase again because the Philippine Government has increased the total years of education from 10 to 12. The exact amounts sent to the schools is included in the Financial Reports. The 6 monthly Deaf Action Reports were submitted to World Relief in order to retain tax deductibility in Australia. The Ligao figures below include ex-students in the Livelihood Project. They learn specific vocational skills, small business accounting, and are given small loans to start home-based businesses to support themselves.

New sponsorships have been obtained mainly through presentations to churches or small groups but some have commenced through word of mouth. Sponsors and Supporters receive two Deaf Action Newsletters each year; and a Christmas card, Student Report or Photo Page with the Newsletter. Some sponsors like to send Christmas cards or letters to their students. They are sent to the office and taken or mailed to the schools and sponsor addresses are not given to the school. Many Sponsors appreciate the personal cards and updated information they receive and student updates also act as a payment reminder and encourage sponsors to continue their financial support. Not all students in the schools have sponsors because it is difficult to obtain up to date photographs and information unless a DMI Representative visits the school. I limit 3 sponsors for each student so the younger students can manage to make all of the cards themselves.

I would like to thank Susan Shannon, Jeanette Lee, Rod Chapman and Faye Kendall who assisted with processing, scanning, printing and mailing the hundreds of Cards, Reports and letters that were sent to sponsors in 2015. I am also grateful to Brenda and Matt for their ongoing assistance in the important financial area of the Sponsorship Program. Brenda organises Reminder Letters to be sent (if requested by the sponsor), and will now commence sending reminders to sponsors who have fallen behind in donations. This has been an area I have not had enough time to address in the past.

Most importantly, thank you to our loyal Sponsors and generous Supporters who make this ministry to give education to disadvantaged deaf students a possibility. Our schools could not continue without your support. Some months we are not able to send the full amount required but we send all we can. Jenny Reid Deaf Action Sponsorship Coordinator (Voluntary)

Year 2011 2012 2013 2014 2015

Student and School Sponsors 175 208 221 247 238

Regular Supporters 69 59 61 61 45

TOTAL 244 267 282 308 283

ENROLMENT AT DECEMBER 31st 2012 TO 2015

2012

2013

2014

2015

School or Dormitory

Deaf Ministries Institute, Davao, Philippines 84 111 115 100

F.C.L.C. and Livelihood Project, at Ligao, Philippines 59 57+15 90 + 30 80+30

Visayas (Bacolod and Borongan Dormitories), Philippines 35 17 23 23

Cagayan de Oro Dormitory in the Philippines 8 8

Muir School in Kalay and Mary Chapman School, Yangon, Myanmar 31 34 30 34

Immanuel Christian School for the Deaf, Ringa, Kenya 101 82 98 98

Ugandan students at various schools and tertiary institutions 29 31 25 30

Individual students in Zambia and Rwanda 3 3 3 3

TOTAL 342 350 414 406

DEAF MINISTRIES INTERNATIONAL

SPONSORSHIP PROGRAM

ABN: 96 832 871 076

December 2015 Sponsorship Report

This ‘Deaf Ministries International’ Sponsorship report covers the general operation of

the sponsorship program in all supporting countries. The previous ‘Deaf Action’ report covered sponsorship in Australia where the Australian Government requires a separate organisation for tax deductibility.

A spreadsheet of all Worldwide Sponsors is kept in Australia and updated with sponsor names, payments and other details when the information from overseas countries is supplied. A second spreadsheet of Student Details is kept with personal student information needed to make the Sponsorship Cards. Cards for all countries except Norway and Japan are made in Australia; and all Christmas cards, student reports and new photos are processed in Australia. The Sponsorship Coordinator writes the School Newsletter and it is emailed or mailed in Australia; and emailed or bulk mailed to other countries for distribution.

The Country Coordinators collect payments and issue receipts in their particular currency, and report changes to the International Coordinator.

This table shows sponsors and supporters overseas. The Financial Reports shows actual income. DMI Sponsors and Supporters

Country December 2011

December 2012

December 2013

December 2014

December 2015

Japan 62 47 55 72 64

Europe/Germany 14 15 23 24 25

Norway 70 76 75 75 75

Pacific Countries (+ China) 7 5 5 6 6

United Kingdom 31 42 32 43 36

United States of America 54 51 50 48 46

South Korea 7 3 38 38 24

TOTAL 245 239 278 306 276

News from each sponsor’s individual student is considered to be of paramount importance to maintain continuity of financial support. The aim is to send something personal from the student with the Sponsorship Newsletter at least twice per year. Christmas cards, student reports, Photo Pages and new cards are processed in Australia, and bulk mailed to Country Coordinators to mail with the Sponsorship Newsletter. The newsletter for German (and other European sponsors) is translated into German then mailed from Australia, but some European sponsors have requested it in English. Several versions of the newsletter are made to cater for different countries and posting on webpages.

Materials for making Christmas Cards are delivered by DMI representatives or mailed to the schools and dormitories. The production of Christmas Cards is very time consuming but also important. The aim is for every sponsor or supporter who has made payments that year to receive a Christmas card. Sponsors comment that they appreciate the personal information and cards from their students.

Ligao supplies student reports yearly, and I have asked other schools to assist the sponsorship program by obtaining permission from parents to photocopy the end of year report for the sponsor. These have not been supplied yet, but that is the aim.

Worldwide Sponsors for 2011 to 2015 (including Deaf Action in Australia)

YEAR Australia Norway Japan EU/Germ Pacific U.K. U.S.A. China. S. Kor. Total

2011 244 70 80 14 7 31 54 2 5 507

2012 267 76 47 15 5 42 51 2 1 506

2013 282 75 55 23 5 32 50 3 38 560

2014 308 75 est. 72 24 5 43 48 1 38 614

2015 283 75 est. 64 25 5 36 46 1 24 559

I am very thankful for the contribution made by Country Coordinators. It is greatly appreciated and highly valued. This sponsorship program shows the cooperation between DMI workers worldwide; who all seek to bring education and the gospel to our deaf brothers and sisters.

Jenny Reid DMI Sponsorship Coordinator (Voluntary)