Dear supporters and friends of Melbourne School of Theology and Eastern College Australia,
It is my pleasure to be able to update you on the financials of each college. Since 2018, when Eastern College Australia co-located to Wantirna, we have described this unique collaboration as Two Colleges—One Community. While each college is distinct, with different educational emphases and different accreditation, increasingly, in these past six years, we have worked together. We not only share our campus, but also various elements of operations and management, creating greater efficiency and a deeper sense of ministry collaboration. And, of course, we share a common vision; to equip men and women with biblical depth, and a heart for ministry and mission, wherever they go, and whatever the call of God over their lives. Our students, staff and faculty continue to encourage each other in community, prayer and worship. And we are all deeply committed to a common purpose; the work of Christ in this world.
I know that you might have a specific interest in either Eastern or MST but, may I encourage you to read the following report with prayerful thankfulness to God for all He has done, and continues to do, through both colleges.
Many ask me: why do you not simply join together and become one institution? It will come as no surprise that our Boards, and Executive Teams are, indeed, prayerfully seeking God’s leading and wisdom to discern what might lie ahead for us. We believe our future is very promising and, in
spite of the great challenges facing so many bible colleges and Christian higher education providers around the world, we are optimistic. Indeed, we are so excited at what we are already seeing in new growth and in new opportunities in ministry and mission.
We continue to trust in God’s goodness. We believe He will sustain our ministries during this season.
I hope this Annual Update & Report helps you understand in more detail how each college is faring in this very challenging decade of our story. I also hope you see in a fresh way just how vital and strategic your donations, prayer and support continue to be for us—as has been the case for generations past.
We continue to trust in God’s goodness. We believe He will sustain our ministries during this season. And we are daily looking to Christ for wisdom, the leading of His Spirit, and for God to provide all our needs, according to His riches in glory.
Thank you for all you have done to support this ministry through your prayers and giving.
For His glory,
Andrew Pham CHIEF OPERATIONS OFFICER
Melbourne School of Theology
Enrolment Summary
MST English
The total number of units of study (subjects enrolled) undertaken at MST English has progressively declined over the last 4 years. The trend is mostly a reduction in Undergraduate units studied with Graduate level units maintaining their level. Many of our students are transitioning to parttime, which affects the total number of units a student will undertake in any one year. Class sizes and the development of the community all show the effects of these changes. We’re very encouraged that Postgraduate research continues to be an important part of our student body and has remained at similar levels over the past 4 years.
MST Chinese
MST Chinese department remains consistent with the number of units being enrolled in each year. This has been particularly encouraging as there has been a slow decline in student numbers within this department year on year. The overseas student program has retained its interest since it was restored in 2021 after COVID-19 restrictions. The Undergraduate and Master's courses continue to be the strongest in the MST Chinese department, with Master's level showing improving year on year unit enrolments.
Audited Financial Statements 2023
In 2023, MST performed admirably given the trends of theological education, with tuition fee income remaining in line with 2022 at $2.57M (down only 1% on the previous year). Student enrolments were slightly down from 2022, which was primarily driven by a small reduction in units studied in MST-Chinese from 318 units to 296 units. MSTEnglish remained flat at 561 units to 566 units. Despite the modest financial result overall, total income was down 6% to $3.75M, mostly driven by a decrease in government job-keeper grants, which was slightly offset by a 40% increase in donation support. Tuition fee income remained 68% of total income, with other income being derived from donations, grants, property, and gifts.
Expenses rose very slightly in 2023 to $4.1M which led to an overall operating deficit of -$344K. This
was mostly driven by an 8% increase in employee costs, which can be attributed to a CPI increase for all staff and the addition of the Chief Operations Officer, who replaced our Vice-Principal, Peter Tyrrell, who retired at the end of 2021. Employee costs remain the major expense for the college at 67% of total expenses followed by partnership reimbursements and faculty and student expenses.
It is worth noting that year on year, the tuition fees we receive from students only cover our staffing costs (employee expenses). All other expenses, including electricity, heating/cooling, communications, IT, teaching materials and systems, are paid for in part by property rental/ leases and grants, with the majority coming from donations from our supporters. So, THANK YOU to those who financially support Melbourne School of Theology.
finances are audited by SAWARD DAWSON with our Financial Year concluding on 31 December.
Looking to the Future
Financial Year 2024 Forecast
We humbly ask that you prayerfully consider supporting Melbourne School of Theology with a gift to offset this expected cash loss of $400K. Every gift makes a difference.
...we are now more reliant than ever on donations to help sustain the ministry.
Theological education remains a difficult sector with student numbers for theological education across Australia reducing year on year. This comes as no surprise given that the Christian population reportedly decreased by more than 1 million people in only five years from 2016 to 2021 (52.1% to 43.9% of the Australian adult population 1 ) while adherents of other religions, in fact, are reportedly increasing. Interestingly, in the 2021 Census,1 the number of Australians indicating 'No religious affiliation' has increased to 38.9%. It will be very interesting to see whether this percentage will overtake those indicating adherence to Christianity in the 2025 Census and how it might impact MST and Eastern College Australia in the future. The dramatic reduction in professing Christians can be seen in falling Church attendance and consequently in young people seeking theological education to enter ministry or to prepare for mission: vocational, local or overseas. These changes have meant that our financial result for 2023 was a large deficit, with our forecast for 2024 being significantly greater.
The implication of this is that we are now more reliant than ever on donations to help sustain the ministry, which many of you have so faithfully committed to over many years. We remain optimistic about God’s plan for MST and remain faith-filled that God will provide for the sustainability of His ministry.
As outlined earlier, the challenges to theological education in Australia remain significant and our reliance on your help is at an all-time high. This year, MST expects to finish with a -$750K loss and a $350-420K EBITDA (cash) loss, which was driven by students enrolling in fewer units (527) than was budgeted (570). This resulted in ~$120K less revenue than was expected. It was further exacerbated by an extra $100K in unforeseen property expenses.
We have asked so much of you in the last year that we are reluctant to ask again for your help. However, the need is great, so we’re asking if you‘d prayerfully consider supporting Melbourne School of Theology with a gift to offset this expected cash loss of $400K for 2024.
1. Australian Bureau of Statistics (2021), Religious affiliation (RELP), ABS Website, accessed 7 October 2024.
Eastern College Australia
Audited Financial Statements 2023
Total revenue for 2023 for Eastern College Australia decreased by 11% from 2022 to $2.18M, primarily driven by a decrease in government grants of $0.5M. However, this was somewhat offset by a 9% increase in tuition revenue, an increase in general donations to $73K, and an increase in interest revenue by $43K. Total units studied was slightly up on 2022 to 412 from 391, driven by an increase in demand for education and linguistics courses.
Total expenses increased in 2023 by 9% primarily driven by an increase in employee costs and faculty/student expenses, however, the full impact
was offset by a decrease in spending on publicity and promotions and depreciation expenses. This led to a total deficit of -$167K in 2023. Salary expenses increased as some of the roles required for ECA’s financial turnaround changed from parttime to full-time. This included the new Chief Operations Officer, a new Dean of Education, and other support staff. Faculty and student expenses increased due to increased scholarships given to Master of Transformational Development students who rely heavily on Eastern scholarships in order to study.
Enrolment Summary
The table below outlines units studied at Eastern and, as you can see, there has been a material change in our education courses which now has seen ~100% increase in units studied (reasons are outlined earlier). We continue to believe this will be a growth driver for a sustainable ministry.
The Master of Transformational Development continues to perform well under the leadership of Dr Tanya Riches who is doing an exceptional job in growing the cohort and the scholarship funds for the program. The Bachelor of Applied Social Science (Counselling) has seen a marked decrease in enrolments. We believe this will change as we seek to accredit a Master of Counselling and Bachelor of Counselling for enrolments in 2026. Our new course, the Master of Youth Mental Health and Wellbeing, has started slowly and we believe God will bring more students into this wonderful course.
Looking to the Future
Financial Year 2024 Forecast
In 2023, Eastern College Australia performed better financially than expected despite the huge reduction in government grants of -$500K compared to the prior year. The impact from the loss of these grants was softened by a strong increase in donations (~$75K) and strong expense management from salaries to general expenses. Liquidity issues continue to remain a concern for management noting that government grants are not available in 2024. However, we have seen a marked turnaround in student numbers in 2024 as unit enrolment data outlines a 46% increase in units from 2023. This was driven by the formal creation of the CITE Alliance (Christian Initial Teacher Education Alliance) which involved a partnership between the five largest Christian Schools of Victoria—Donvale Christian College, Waverley Christian College, Cairo Christian College, Crest Education, and Flinders Christian Community College.
This Alliance partnered with Eastern as their sole provider for education courses for their potential teacher pipeline which includes year 12 graduates and/or current teacher aides. These students will study undergraduate and graduate level courses at Eastern in Education while, at the same time, continuing to work as teacher trainees at their relevant schools (an apprenticeship model). In addition, given the release of 'free degrees' in Education by the Andrew’s government, this has created a large demand for Education degrees. This has driven a significant increase in student and unit numbers, and we believe it will continue to provide the vehicle for growth.
...we continue to be reliant on the faithfulness of donors to help the sustainability of our ministry.
Having said this, Eastern remains financially fragile with an expected loss of $220K-350K in FY24 with ~$600K in liquidity remaining. While we remain optimistic that we will deliver a break-even budget soon, we continue to be reliant on the faithfulness of donors to help the sustainability of our ministry. Currently, we remain behind budget on our faith goal of $80,000 for donations in 2024, having only received $15K at this stage. Can I ask you to prayerfully consider helping us fill this gap through your Christmas donation. Any support is greatly appreciated.
Help us fill our funding gap—your donation could make all the difference. Any support is greatly appreciated.
Melbourne School of Theology
5 Burwood Hwy, Wantirna VIC 3152
+613 9881 7800 mst.edu.au
ABN: 58 004 265 016
CRICOS: 02650E
Pray for New Students
Pray for those God is calling into teaching, ministry, counselling, the marketplace, education, and other paths. May they find a welcoming, Christ-centred community and the support they need at MST and Eastern College Australia.
Pray for Current Students
Lift up our current students in prayer, that they remain strong in their commitment to the Gospel and persevere in their studies through life's distractions and challenges.
Pray for Our Leaders
Pray for wisdom and courage for our leaders and Board as they discern how to steward precious resources and navigate the path ahead with prayerful discernment.
Consider Supporting Us This Christmas
As Christmas draws near, please consider a financial gift to help meet our current needs. Your donation will ease our financial strain and provide vital resources as we prepare for 2025 with hope and readiness for the opportunities God has in store.
