Merci Ships Annual Report Cpr-31

7/28/2019 Merci Ships Annual Report Cpr-31

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2011 Annual Report


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Accomplishments Since 1978

Community Development Projects Completed1,100

Port Visits575

Health Care Workers Trained29,400

Village Patients Treated539,000

Operations Performed61,000

54 Developing Nations Visited

Direct Beneciaries2,350,000


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Dear Friends,

In its 34th year o serviceto the poorest o thepoor, Mercy Ships remainssolidly anchored in itscore values to love Godand to serve others with

excellence and the highest integrity. Our

people have a heart to serve the poor. . . no matter their belies, religion, orbackground.

While immediate medical care and relieis our major ocus while we are servingin a host country, we are increasing oureorts to help improve on-the-groundhealth care capacity by training localmedical proessionals. Our ship serves asan eective training venue, and our teamis eager to increase the access to localhealth care ater the ship moves on to its

next port. Our normal outreach in a hostcountry lasts 10 months.

The crew on the ship are all volunteers andactually pay or their own expenses and

crew ees onboard. We believe our crewmembers as seless servants are unique.

They actually pay to serve and deliverthe highest quality care to the poor, whootherwise would have little access to themedical services provided.

In 2011, Mercy Ships returned to Sierra

Leone or its th visit in the last twentyyears. We are well aware o the health carechallenges aced by the people o SierraLeone, and our unique onboard hospitalacility is o the highest quality and beyondwhat is available in the countries we serve.

During our port visit, our crew per ormed3,300 lie-changing general surgeries, over2,600 eye surgeries, more than 34,700dental treatments and approximately10,000 medical consultations. Inaddition, more than 450 local health care

proessionals were trained in their area oexpertise anesthesiology, orthopaedicand reconstructive surgery, midwiery andeye surgery.

Letter from the Chairman

Our International Board o Directorscontinues to plan or the uture. In additionto increasing the productivity o theAfrica Mercyand its eectiveness, we aredeveloping a strategic plan to construct asecond major ship with the same or greatercapacity to reach more in need in the

coastal countries o West Arica. We expectto have more specic plans to share withyou by the end o 2012.

On behal o our board and skillul peoplethroughout our organization, we thank youor your aithul support that enables us tooer hope and healing to those who needit most.

Sincerely,

Myron E. (Mike) Ullman IIIBoard ChairmanMercy Ships


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Dear Friends,

We were honored tobe invited to return toSierra Leone, where wecompleted our th eldservice to the people othis nation. The quality

o service or the poorest o the poor is

a hallmark o integrity in operating thishospital ship organization. We not onlyserve one person at a time, but our goal isto serve the next generation.

Last year we had 400 crew rom 43 nationsonboard our state-o-the art hospital shipAfrica Mercy. We are a global organization.Our dedicated proessional crew membersare the touch point or delivery o highestquality care and capacity building. Servingthe poor is oten a demonstration ocareully and compassionately serving the

next person as i he or she were the onlyperson to be served.

TheAfrica Mercyprovides a platorm orthis rst-class health care and the capacity-

building training o national proessionals.This model ocuses on the immediateneed and allows or improved health caredelivery systems long ater the ship hassailed or the next port. For some, thisship may be the only model o a caring,proessionally run training hospital that

they will ever see.As we ollow the 2000-year-old modelo Jesus o Nazareth whose lie modelsintegrity, excellence and humility itis highly important that all o us modelservant leadership in each port Mercy Shipsvisits in the developing world.

We are grateul to each donor, bothindividual and corporate, who partnerswith us. Each one allows Mercy Ships toleverage every git through high-qualitycorporate gits-in-kind and dedicated

sel-supporting proessional volunteers.This translates to each cash donation beingtripled in eectiveness.

We congratulate His Excellency, President

Letter from the President/Founder

Ernest Bai Koroma or his good leadershipin the Arican nation o Sierra Leone. I norder to decrease the mortality rate omothers and children, he launched aninitiative to provide ree health care orpregnant women, lactating mothers,and children under ve years o age. The

government commits 7.5% o its annualbudget to health care, with the aim oincreasing it to 15%.

Sierra Leone will be recovering rom thedestructive decade-long civil war or yearsto come, but the good news is that thisrecovery is taking root. It was an honorto partner at all levels with the people oSierra Leone.

Mercy Makes a Dierence!

Don StephensPresident/Founder


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This is a graphic representation o the enormousland mass o Arica. (Some countries have beencut and rotated to better show land size.)

COUNTRY AREAx 1000 km2

China 9,597

USA 9,629

India 3,287

Mexico 1,964

Peru 1,285

France 633

Spain 506

Pa pua New Gui ne a 482

Sweden 441

Japan 378

Germany 357

Norway 324

Italy 301

New Zealand 270

United Kingdom 243

Nepal 147

Bangladesh 144

Greece 132

TOTAL 30,102

AFRICA 30,221

Africa: A Massive Land

United States

NepalPortugal

Switzerland

Belgium

The

Netherlands

reece

Eastern

urope

N w

de la


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For 20 years Mercy Ships has brought hope and healingto West Arica by delivering transormational health careat no charge to the poor, while partnering with localgovernments to increase the capacity o national healthcare systems.

Since 1990, Mercy Ships has conducted 33 eld services in10 Arican nations. Most o the countries visited are rankedby the United Nations Development Index as the leastdeveloped countries in the world.

Committed to West Arica

Sierra Leone Benin1992, 1993, 2001, 2002,

2003, 2004, 2011

1997, 1998, 2000, 2001,

2004, 2005, 2009

TogoGuinea1990, 1991, 1995,

1996, 2003, 20101992, 1998, 1999

Ghana

1991, 1994, 1995, 2006,

2007

1992

Gambia Cote DIvoire

1991, 19922002

Senegal Liberia

2005, 2006, 2007, 20081993, 1994

Guinea-Bissau

2 06,


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Working Together...To Make a Dierence

Onboard the worlds largest non-governmental hospital ship, our MercyShips crew o over 400 volunteers rommore than 35 nations oer their time andtalents to serve the poor in West Arica.

They pay or their travel and or their ownroom and board, allowing the majority othe unds received by Mercy Ships to godirectly to medical services in Arica.

Day-Workers are local men and womenwho work or Mercy Ships during a eldservice. They serve in various capacities translators, cooks, maintenance workers,etc. Many are trained in a new tradethat will benet them even ater theship leaves the country. They providevaluable help in our mission to deliverhope and healing.

I think true joy is when you are giving ofyourself to others and blessing them with

what you have. It has always been clear thatthere is a real need in Africa, and I wanted

to come and do what I can.

Michelle Vujicic,

volunteer nurse

And we are so grateul or our aithuldonors. Without their help, we simplycould not do what we do.

You are taking from your own salariesfor us! May the Lord bless your hands

and your salary, and may you havegood health and a long life. You have

truly blessed us!

Josephine,mother of 9-year-old Darius who

received a free surgery ontheArica Mercy

It is so great to witness how people,after being sick for decades, have

their life stories changed by MercyShips. Many people have new hope

for the future with Mercy Ships,and I am very proud to be part

of this work.

Emily Kpeglo,

day-worker


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Our Crew Map

United States

Canada

Korea

South Africa

New Zealand

Australia

United Kingdom

SpainFrance

Denmark

Norway

Sweden

Belgium

Netherlands

Switzerland

Germany

Austria

Benin

Cameroon

China

Dominican Republic

EgyptGhana

Honduras

Hong Kong

Hungary

Ireland

Jamaica

Japan

Kenya

Liberia

Lithuania

Malaysia

Nepal

Nigeria

Romania

Sierra Leone

Italy

Togo

Uganda

Ukraine

United ArabEmirates

7

1

120

2

1

55

54

2

3

12

83

1

Georgia

1

1

4

21

1

3

1

7

11

3

1

9

64

17

3

34

2

225

24

1

9

24

5

1

13

1

178

386

3

Africa MercyCrew Members1,278


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Acquired in 1999 through a donationrom the Balcraig Foundation, theormer Danish rail erry Droning Ingridwas renamed theAfrica Mercyin April2000. The 30 million ret was undedby a $10 million donation rom the OakFoundation, along with continuingsupport rom the Balcraig Foundation andother trusts, corporate gits-in-kind, and

individual contributors.

Our Hospital ShipM/V Africa Mercy

History

Length

152 m

Surveyors

Bureau Veritas

Gross Tonnage

16,572

Draft

6.0 m

Cargo Capacity

1,724 m3

Main Engines

4 B& W - 3120 kW each

Built: Elsinore, Denmark

1980

Crew Capacity474

RegisteredMalta 23.7 m

Breadth

The hospital covers most o the originalrail deck approximately 1,200 squaremeters. It is divided into quadrantscontaining supplies/services, six operatingtheaters, intensive care and recoverywards with a total o 78 patient beds, andaccommodations or 450 multinationalcrew and personnel.

The hospital contains a CT Scanner, anX-ray, laboratory services and a Nikon

Coolscope, which allows or remotediagnosis almost instantaneously.Whenever required, diagnoses aretransmitted via an onboard satellitecommunication system or evaluationby doctors in developed countries.

Since her deployment in 2007, theAfrica Mercyhas participated in seveneld services in West Arica servingthe countries o Liberia, Benin, Togo,South Arica, and Sierra Leone.


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Mission, Vision & Values

Mercy Ships ollows the 2000-year-old model o Jesus,bringing hope and he aling to the worlds orgotten poor.

Mercy Ships seeks to become the ace o love in action,bringing hope and healing to the poor.

Following the model o Jesus, we seek to:

LoveGod. Loveandserveothers.

Bepeopleofintegrity. Bepeopleofexcellenceinallwesayanddo.

Mission

Vision

Values


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2011 Field Service at a Glance

10,000

Medical Consultations

Life-Changing Surgeries

3,300

Dental Treatments

34,700

Eye Surgeries2,600

Direct Beneciaries

36,000

Trained in Organic Farming Methods

16

Health Care Professionals Trained

450

Trained in Basic Health Practices12,600


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A Comparison Between Nations

Sierra Leone continues to be one of the least developed nations, and is ranked 180 out of 187 on the Human Development Index.

Sources: http://hdr.undp.org/en/statistics http://who.int/whosis/whostat/2011/en

%% %

Life Expectancy

Doctors / 50,000 People

Average Income / Person / Day

Dentists / 200,000 People

Access to Clean Water

Access to Improved Sanitation % %

76years

48years

Sierra LeoneUnited States


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Mercy Vision

were distributed to protect sensitive eyes ateroperations, and reading glasses were supplied tovisually impaired patients.

The program also provided many opportunitiesor hands-on training sessions or local surgeons,as well as training in ophthalmic care or local

health workers.

Eye Care Program:

The Mercy Vision program addressed surgicaland medical eye needs o the people inSierra Leone. The primary emphasis osurgical intervention was on reduction oblindness as a result o cataracts.

Non-surgical eye care ocused on allergy,

inection, injury and pain. Sunglasses

To reduce the prevalence o blindness and poor vision due to cataracts among the

poor and to build the capacity o the local eye care system.Goals

Eye Surgeries1,384

Visual Care Professionals Trained

13

Patients Evaluated & Treated8,502

Reading Glasses Distributed

2,992

Sunglasses Distributed

2,261


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A Story of HopeFatmata was desperate to nd a solution or her 16-month old daughter, Sidiatu,who was born with congenital cataracts. For more than a year she had searchedor help. Fatmata had taken the child to t wo hospitals or cataract surgery . . . butwithout success. Finally, a local doctor reerred her to an eye screening with MercyShips. There, an ophthalmologist gave Fatmata a precious appointment card orSidiatu to have cataract surgery on both eyes onboard theAfrica Mercy.

I walked around to many hospitals to nd help, said Fatmata. I am very happy.Mercy Ships is a good place.

Eye Care Program


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Outlook of Hope

To reduce the eects o neglected trauma, disease and congenital conditions amongthe poor through specialized surgical treatment and by building local capacity.Goals

Specialized Surgical Solutions:

Mercy Ships worked in partnerships with Sierra Leones Ministry o Health,local physicians and other NGOs to provide lie-enhancing and, in manycases, lie-saving specialized surgeries. In onboard operating theaters,highly skilled volunteer surgeons perormed hundreds o ree maxilloacial /reconstructive operations, plastic surgeries and other specialized surgeries.

General & Hernia Surgeries

728

Maxillofacial Surgeries516

Plastic Reconstructive Surgeries159

Cleft Lip Surgeries

111


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A Story of HopeFor at least ten years, Roger suered with an ever-expanding growth onhis chin. He couldnt get work because most people were araid o him.He had to sh or a living with his brother.

With the help o a local missionary, he travelled 1200 kilometers romGuinea to our hospital ship in Sierra Leone or a surgery. Mercy Shipsvolunteer surgeons removed the enormous tumor that was threateningto suocate Roger. Because o the many years he had suered with it, hislower lip had become extremely stretched. A speech therapist worked

with him extensively, using exercises that would reduce his lips to theiroriginal size.

Ater several weeks, Roger went back to Guinea. When his brother sawhim, he exclaimed, Thats NOT Roger! Because o the huge tumor, hehad never seen what his brother really looked like.

Specialized Surgical Solutions


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Sierra Leone Smiles

Dental Care Program:

The project in Sierra Leone addressed dentalneeds and provided preventative andrestorative treatment or men, women andchildren who would otherwise not receivedental care. The dental team taught basicdental hygiene to their patients at the dental

clinic, as well as students in primary schools.

To reduce the incidence o dental disease among the poor by providing

dental education and treatments such as restorations, extractions, andcleaning and to build local capacity.Goals

Dental Volunteers Trained

9

Dental Patients

10,489

Trained in Oral Health

11,514

Dental Procedures

34,251


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A Story of HopeJoseph Dumbuya rst joined Mercy Ships as a day-worker and translator or the dental team in 2002.

Through his experience and training onboard theAnastasis, Joseph decided to pursue a career indentistry and was accepted into a dental program in Hungary in 2007.

This year, Mercy Ships worked with Josephs school to design a practicum experience as part o his degreeprogram, allowing Joseph to return to his home country o Sierra Leone to assist the Mercy Ships Dental

Team. This opportunity has helped rea rm Josephs commitment to return to Sierra Leone and establishhis own dental clinic, thus strengthening his country s ability to provide or its people.

Dental Care Program


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HOPE CenterHospital Out-Patient Extension

Hospitality Center Project :When Mercy Ships arrives in a country,potential patient screenings are organized atvarious locations and times throughout thecountry. Patients near the port area can easilytravel to the ship. Others, who live ar theraway, typically encounter greater obstacles inreaching the ship.

To reduce the need or multiple trips to theship, Mercy Ships establishes a Hospital Out-Patient Extension (HOPE Center) acility toprovide housing or patients and caregiversin a secure location near the ship. Atersurgery, the HOPE Center oers a sae andclean environment that promotes eectiverecovery, while maintaining easy access to theship or ollow-up care.

Another important benet o the HOPECenter is that it rees up precious bed space inthe hospital ward on the ship, allowing betteroptimization o the ships surgical capacity.

To optimize the capacity o hospital surgical outputs by improvingthe movement o patients in and out o theAfrica Mercyward.Goals

Modular Bath House for the HOPE Center

Constructed/Assembled

O-Ship Patient & Administrative Unit

Constructed/Assembled

as a secure location for patients and caregivers

Transformed Existing Building


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Palliative Care

Palliative Care Program:

Many who seek medical help rom Mercy Shipsare not eligible candidates or surgery becauseo inoperable and oten terminal conditions.

These people are oten rejected by theircommunities because local cultures view theseconditions as a curse.

The Palliative Care Team reaches out topatients and their amilies, providing in-homevisits to encourage them, provision o painrelie medications, education or caregivers,dressings or wound care, and counseling orpatients and caregivers.

In 2011, the team also provided training andsupport to The Shepherds Hospice, a localorganization that provides palliative care tothe people o Sierra Leone.

To reduce the ear and loneliness o approaching deaththrough care and support and to build local capacity.Goals

Palliative Care Patients

26

Home Visits

39


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Food for Life

To increase the capacity o local organizations to eectively contribute

to improved nutrition and arming incomes o armers in Sierra Leone.

Agricultural Training Program:

In Sierra Leone, the agriculture program provided an intense trainingthe trainer course or our in-country organizations. This course was ourmonths long and included both classroom and hands-on instruction inarming methodology. The course ocused on increasing local crop andood production by utilizing sustainable, organic, and conservation-oriented arming methods. Arican armers typically use destructivepractices, such as slash-and-burn tactics and harsh, expensive chemical

herbicides and pesticides. Participants were introduced to healthier andmore eective alternatives.

Ater graduation, the trainers started their own training sites. All o themwill pass on their knowledge to members o their communities and armingassociations. The Mercy Ships team supported the trainers throughout theeld service, visiting all the sites ever y two weeks and providing technicalsupport as needed.

Goals

Trained in Organic Farming Methods

16


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A Story of Hope...Edward was one o the 16 students trained in Sierra Leone by the MercyShips team. Ater the training, Edward went back to his home in Makondu,where 80 amilies wanted to be trained. Wisely, he realized it would be bestto concentrate his eorts on ten agriculture leaders rom the village andhave them, in turn, train the others rom their arming group. This way thewhole village o 500-600 people would benet rom what he had learned.

Edward and his team in Makondu are doing a abulous job! By working

together, they have built strong relationships. The organic, sustainablemethodologies are being adopted, and crops are ourishing. New hope hasarisen in the village. News travels ast in this arming area, and soon villagechies rom six neighboring villages came to ask i their arming groups couldreceive the training as well. Now Edward has a plan to continue trainingtrainers in each village and then have them train their own communities.

Agriculture Training Program


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Orthopaedic Project

Orthopaedic Services:

Working in partnership with the Ministry oHealth and Sanitation, local and internationalNGOs, and local medical providers, theOrthopaedic Project helped to relieve theburden o orthopaedic diseases and afictionsor those with little or no alternative hope.

In an eort to address the health care crisiso Sierra Leone, Mercy Ships utilized theoperating rooms onboard the oating hospitalship, theAfrica Mercy, to provide ree, qualityorthopaedic care to Sierra Leonean childrenand adults.

Surgical interventions ocused on neglected ormismanaged orthopaedic trauma, childhoodmusculoskeletal conditions like club eet, andsome joint disease.

To reduce the eects o neglected trauma and congenital conditions

by providing specialized orthopaedic care and physical therapy.Goals

Surgical Procedures

335

Trained in Ponseti Casting Techniques

13

Ponseti Casting Procedures

36


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A Story of Hope...When Abu was born, his delicate rame seemed perect. Unortunately, as hegrew, a physical deormity became obvious. His legs bent backward, a conditioncaused by a breech birth which dislocated his knees. Since neighbors believedAbu was a devil child, his mother hid him inside the house.

Then Mercy Ships arrived, and eight-month-old Abu was accepted or surgery. Itwas rightening to be in a strange environment. At rst he cried and respondedonly to his mother s endearing nickname or him BuBu.

Ater Abus successul surgery, Mercy Ships physiotherapists lovingly encouragedhis smiles by tickling his eet as they examined his legs. Abus constant, worriedexpression began to relax.

His rst birthday was a wonderul celebration because he now had a bright lieahead. With his straight legs he would be able to run an d play like other children.His delighted mother said, Thanks to God! I appreciate Mercy Ships rom myheart. Abu is healthier and happier now.

Orthopedic Surgery


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INDEPENDENT AUDITORS REPORT

The Board of DirectorsMercy ShipsLindale, Texas

We have audited the accompanying combined statements of financial position of Mercy Ships, a nonprofitorganization, and affiliates (the Organization) as of December 31, 2011 and 2010, and the related combinedstatements of activities and cash flows for the years then ended. These combined financial statements are theresponsibility of the Organizations management. Our responsibility is to express an opinion on these financialstatements based on our audits. We did not audit the financial statements of certain affiliates, (Mercy Ships U.K. Ltd., Mercy Ships Canada Society, Stichting Mercy Ships Holland, Mercy Ships Deutschland e.V.,Foundation Mercy Ships Norge, Association Mercy Ships (Switzerland) and Mercy Ships Australia Ltd.), w hichstatements reflect total assets of $8,161,114 and $7,435,185 as of December 31, 2011 and 2010, respectively,and total support and revenues of $20,216,058 and $16,838,087 for the years ended December 31, 2011 and2010, respectively. Those statements were audited by other auditors whose reports have been furnished to us,and our opinion, insofar as it relates to the amounts included for these certain affiliates, is based solely on the

reports of other auditors.

We conducted our audits in accordance with auditing standards generally accepted in the United States ofAmerica. Those standards require that we plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free of material misstatement. An audit includes examining, on a test basis,evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessingthe accounting principles used and significant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, based on our audits and the reports of other auditors, the combined financial statements referredto above present fairly, in all material respects, the financial position of Mercy Ships and affiliates as ofDecember 31, 2011 and 2010, and the changes in its net assets and its cash flows for the years then ended inconformity with accounting principles generally accepted in the United States of America.

Our audits were conducted for the purpose of forming an opinion on the financial statements as a whole. Thecombined schedules of functional expenses for the year ended December 31, 2011, (with summarized financialinformation for the year ended December 31, 2010) on page 15 is presented for purposes of additional analysisand is not a required part of the financial statements. Such information is the responsibility of management andwas derived from and relates directly to the underlying accounting and other records used to prepare thefinancial statements. The information has been subjected to the auditing procedures applied in the audit of thefinancial statements and certain additional procedures, including comparing and reconciling such information

directly to the underlying accounting and other records used to prepare the financial statements or to thefinancial statements themselves, and other additional procedures in accordance with auditing standardsgenerally accepted in the United States of America. In our opinion, the information is fairly stated in all materialrespects in relation to the combined financial statements as a whole.

Balser, Horowitz, Frank & Wakeling

BALSER, HOROWITZ, FRANK & WAKELINGSanta Ana, CaliforniaMay 15, 2012

/5VTUJO"WFOVF4VJUF4BOUB"OB$"

1IPOF'BY

XXXCIGXDPN

2011 Financials - Auditors Report


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Combined Statements ofActivitiesFor the Years Ended December 31, 2011 and 2010

Support and revenue Unrestricted Temporarily Restricted 2011 Total 2010 TotalContributions $ 19,026,726 $ 5,439,530 $24,466,256 $ 23,914,021Contributions or sta support 4,081,730 4,081,730 3,588,190

Contributed goods 4,074,557 4,074,557 4,790,601

Contributed services 16,909,971 16,909,971 13,908,625

Fee revenue (crew, volunteers, training) 1,894,726 1,894,726 1,453,795

Sales and other revenue 2,184,034 2,184,034 1,193,419

Gain (loss) rom oreign currency transactions 29,166 29,166 300,545

Gain (loss) on sale or abandonment o assets 56,498 56,498 (570,800)

Net assets released rom restrictions:

Satisaction o program restrictions 7,479,882 (7,479,882)

Total support and revenue 55,737,290 (2,040,352) 53,696,938 48,578,396

ExpensesProgram services

Ship and eld operations 42,972,977 42,972,977 36,757,981

Supporting services

General and administrative 4,326,854 4,326,854 3,950,981Fund raising 5,444,405 5,444,405 5,168,920

Total supporting services 9,771,259 9,771,259 9,119,901

Total expenses 52,744,236 52,744,236 45,877,882

Change in net assets 2,993,054 (2,040,352) 952,702 2,700,514

Net assets at beginning o yearBeore change in cumulative translation adjustments 51,544,623 3,658,619 55,203,242 52,125,283

Change in cumulative translation adjustments (211,878) (211,878) 377,445

Net assets at end o yearAter change in cumulative translation adjustments $ 54,325,799 $ 1,618,267 $55,944,066 $ 55,203,242


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Combined Statements ofCash FlowsFor the Years Ended December 31 , 2011 and 2010

Cash ows rom operating activities 2011 2010Change in net assets $ $952,702 $ 2,700,514

Adjustments to reconcile changes in net assets

to net cash provided by operating activities:

Depreciation expense 3,380,353 3,209,061

(Gain) loss on sale or abandonment o assets (56,498) 570,800

(Increase) decrease in:

Other receivables (359,296) (128,243)

Grants receivable (85,619) 137,490

Promises to give 39,025 77,731

Inventory (1,336,623) 28,444

Investments (6,540) (3,090)

Prepaid expenses and advances (8,889) 17,880

Increase (decrease) in:

Accounts payable and accrued expenses 479,923 (196,905)

Ship bank payable (2,845) (15,823)Deerred revenues 209,960 42,080

Cumulative translation adjustments (211,878) 377,445

Net cash provided by operating activities 2,993,775 6,817,384

Cash ows rom investing activitiesProceeds rom sale o assets 56,498

Purchases o property and equipment (3,365,490) (7,493,106)

Increase in cash surrender value o lie insurance 5,321 3,247

Net cash used by investing activities (3,303,671) (7,489,859)

Cash ows rom nancing activitiesProceeds rom notes and loans payable - 4,911,971

Increase in capital lease obligations 97,541 85,565

Payments on notes and loans payable and capital lease obligations (1,445,512) (1,984,520)

Net cash provided (used) by nancing activities (1,347,971) 3,013,016

Eect o exchange rate changes on cash (47,342) (178,503)Net increase in cash and cash equivalents (1,705,209) 2,162,038

Cash and cash equivalents, beginning o year 11,508,398 9,346,360Cash and cash equivalents, end o year $ 9,803,189 $ 11,508,398

Mercy Ships is a member o the Evangelical Council or Financial Accountability (ECFA) whichprovides accreditation to Christian nonprot organizations that aithully demonstratecompliance with established standards or nancial accountability, und-raising, and boardgovernance. The nancial statements shown here are an incomplete presentation. Ourcomplete nancial statements and audit report are available upon request.

Ahigher standard.

Ahigher purpose.

CFC # 94744


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Combined Statements ofFinancial PositionDecember 31, 2011 and 2010

Assets 2011 2010Cash and cash equivalents $ 9,369,879 $ 11,158,310

Cash held or others - ship bank 433,310 350,088

Other receivables, net 884,132 524,836

Grants receivable 89,084 3,465

Promises to give, net 48,780 87,805

Inventory 2,449,605 1,112,982

Investments 100,814 94,274

Prepaid expenses and advances 259,838 250,949

Property and equipment 80,237,163 77,104,183

Land and building under capital lease 798,225 797,400

Accumulated depreciation (26,191,411) (23,036,079)

Cash surrender value o lie insurance 83,392 88,713

Total assets $ 68,562,811 $ 68,536,926

LiabilitiesAccounts payable and accrued expenses $ 2,381,582 $1,901,659

Ship bank payable 440,548 443,393

Deerred revenues 276,238 66,278

Notes and loans payable 8,100,387 9,545,900

Capitalized lease obligation 1,419,990 1,376,454

Total liabilities 12,618,745 13,333,684

Net assetsUnrestricted 54,325,799 51,544,623

Temporarily restricted 1,618,267 3,658,619

Total net assets 55,944,066 55,203,242

Total liabilities and net assets $ 68,562,811 $ 68,536,926

Our Commitment to Stewardship80 o each dollar Mercy Ships receives goes straight to ourShip and Field Operations providing surgeries and world-class medical care to those who have no other hope. As littleas 20 is set aside or the general costs and overhead expenses.

Fund Raising

General and Administrative

Ship and Field Operations

10%8%

82%


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National Ofces

Mercy Ships Global AssociationChemin de la Fauvette 981012 LausanneSwitzerland

www.mercyshipsglobal.org

Mercy Ships AustraliaP.O. Box 1080Caloundra, Queensland 4551Australia

www.mercyships.org.au

Mercy Ships BelgiumMarsveldplein 5, V21B-1050 Brussels,Belgium

www.mercyships.be

Mercy Ships CanadaUnit 5 - 3318 Oak St.Victoria, BC V8X 1R1Canada

www.mercyships.ca

Mercy Ships DenmarkJernbaekvej 6, RamloeseDK 3200 HelsingeDenmarkwww.mercyships.dk

Mercy Ships FranceChemin de Colovrex01210 Ferney-VoltaireFrancewww.mercyships.ch

Mercy Ships GermanyHttenstrasse 22D - 87600 KaubeurenGermanywww.mercyships.de

Mercy Ships HollandStrevelsweg 700/317NL - 3083 AS Rotterdam

The Netherlandswww.mercyships.nl

Mercy Ships Korea4 F. Greenhill B/D, Gongneug-dong 661-5Nowon-gu, Seoul (139-808)South Koreawww.mercyships.or.kr

Mercy Ships New ZealandPO Box 13673OnehungaAuckland 1643New Zealandwww.mercyships.org.nz

Mercy Ships NorwayMarkensgate 484612 Kristiansand S

Norwaywww.mercyships.no

Mercy Ships Southern AfricaP.O. Box 290Plumstead, 7801South Arica

www.mercyships.org.za

Mercy Ships SpainNaves de EsperanzaApartado 1500108080 Barcelona,Spainwww.nde.es

Mercy Ships SwedenMailbox 5248200 72 MalmSweden

www.mercyships.se

Mercy Ships SwitzerlandMaison de RovrazChemin de la Fauvette 98CH 1012 LausanneSwitzerland

www.mercyships.ch

Mercy Ships United KingdomThe Lighthouse12 Meadway CourtStevenage, Hertordshire, SG1 2EFUnited Kingdom

www.mercyships.org.uk

International Operations CenterP.O. Box 2020Garden Valley, TX 75771-2020USAwww.mercyships.org


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ChairmanMyron E. Ullman III*

Chairman and CEO (Retired)JC Penney CompanyDallas, TX, USA

International Board o Directors

Lietime Members:

Truls BerntsenOK Shipping

Kristiansand, Norway

William S. Kanaga*Chairman (Retired)Arthur Young (now Ernst & Young)

New York, NY, USA

Charles D. Towers*Attorney at LawRogers Towers, P.A.

Jacksonville, FL, USA

Gustaa van BeersProessor o EconomicsTaradeau, France

Members:

James BirdChairman, Mercy Ships AustraliaChartered Accountant (Retired)Coca-Cola Amatil Ltd.Sydney, Australia

Gary W. Brown*President and CEOCIBC World Markets CorporationNew York, NY, USA

Judge Neels ClaassenChairman, Mercy ShipsSouthern AricaHigh Court JusticeJohannesburg, South Arica

Jefrey H. Coors*Chairman - Fiskeby Holdings US LLCGolden, CO, USA

Michael L. Cowan, MD*Vice Admiral, USN (Retired)Director - Deloitte Consulting LLPRosslyn, VA, USA

Roland Decorvet*Chairman & CEONestl Greater China RegionBeijing, China

Jan Willem Doeksen*Chairman, Mercy Ships HollandCEO - Royal DoeksenRotterdam, The Netherlands

Ann H. Gloag*Non-Executive DirectorStagecoach Group, PLCPerth, Scotland, UK

Troy A. Griepp*Managing DirectorMorgan Stanley Private Wealth InvestmentsSan Francisco, CA, USA

Wolgang GrossChairman, Mercy Ships GermanyHumedicaKaubeuren, Germany

John Paul Ketels*Senior Partner (Retired)Cliord ChanceWashington, DC, USA

Mark R. Laret*CEO - UCSF Medical CenterSan Francisco, CA, USA

Azarias Ruberwa Manywa*Former Vice President o DR CongoKinshasa, DR Congo

Ruben S. Martin*PresidentMartin Resource Management CorporationMartin Midstream Partners L.P.Kilgore, TX, USA

Tim McTavish*Parker, CO, USA

Erling Natvig*Chairman, Mercy Ships NorwayKristiansand, Norway

Debbie NobleChairperson, Mercy Ships CanadaVictoria, BC, Canada

David Overton*Dallas, TX, USA

Stphane RapinChairman, Mercy Ships SwitzerlandDirector Gol de Payerne SAPayerne, Switzerland

David W. Rolston*Chie Executive O cerSiPortSanta Clara, CA, USA

Daniel O. Shelley*Texas State Senator (Retired)Attorney at LawAustin, TX, USA

Deyon StephensCo-FounderMercy ShipsGarden Valley, TX, USA

Todd L. Sutherland*PresidentUniversity National BankLawrence, KS, USA

Dr. Keith Thomson*Consultant AnaesthetistThe North Hampshire HospitalNorth Hampshire, England, UK

Juliette M. Tuakli, MD MPH*Founder and CEOCHILD & AssociatesAccra, Ghana

R. Brian WatsonFounder and PresidentNorthstar Commercial PartnersDenver, CO, USA

* Executive Committee Member

Vice ChairRosa Whitaker*President and CEO

The Whitaker GroupWashington, DC, USA

Vice ChairFranoise Andr*Lausanne, Switzerland

Vice ChairLord McColl*Member o the House o LordsLondon, England, UK

SecretaryRonald L. Goode, Ph.D.*President and CEO

The Goode GroupDallas, TX, USA

Vice Chair / TreasurerPeter B. Schulze*Private Investor

Garden Valley, TX, USA

President / FounderDonald K. Stephens*Mercy ShipsGarden Valley, TX, USA


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P.O. Box 2020Garden Valley, TX 75771-2020USA

903-939-7000www.mercyships.org

2012 Mercy Ships

Documents

Merci Ships Annual Report Cpr-31