Annual Report 2008-2009
Annual Report 2008-2009
You will keep in perfect peace
him whose mind is steadfast,
because he trusts in you.
Isaiah 26:3
Annual Report 2008-2009 Contents Introduction
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A Message from Pastor Steve
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Caring Ministry
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Congregational Care
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Community Outreach
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Global Missions
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Discipleship
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Children’s Ministry
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Student Ministry
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Generous Living
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Hispanic Ministry
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Ministry Partners A Beacon of Hope
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Summit
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A Letter from Fred Erler
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Independent Auditors’ Report
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Introduction
In God We Trust At the beginning of the Civil War, a young pastor from Pennsylvania sent a letter to Secretary of the Treasury, Salmon P. Chase, just before Chase was to present his Annual Report to Congress. In the letter, the pastor observed, One fact touching our currency has hitherto been seriously overlooked. I mean the recognition of the Almighty God… And the rest, as they say, is history. That same year— 1861—Secretary Chase contacted the director of the Mint at Philadelphia and commissioned a brand new two-cent coin inscribed with the words In God We Trust. That’s what we think of when we hear the phrase, isn’t it? A national statement of faith. The “recognition of Almighty God” on our currency. A motto. Say this: I will say of the LORD, “He is my refuge and my fortress, my God, in whom I trust.” Psalm 91:2 Trusting in God is so much more than an inscription on our pennies. Trust God, really trust in Him, and you will find much more than an ideology to cling to. Trust God, place your hopes, your future, your day-to-day life, your fears, and your failures in Him alone – and you’ll find perspective. You’ll find peace - the peace of calm waters that run deep no matter what the circumstance. You’ll discover a new kind of life. Trust in him at all times, O people; pour out your hearts to him, for God is our refuge. Selah. Psalm 62:8 There’s still more. Entrust the direction of your life into God’s hands, give Him your decisions and your daydreams, and you’ll find He will in turn entrust something into your hands. He’ll lead you to do His work. Lay your lives on the line for Him, and He’ll ask you to accomplish His purposes. Not only does trusting God lead to life; it leads to meaningful life.
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Mount Pisgah 2008-2009 Annual Report
Now that’s what it means to trust God…individually. But what does it mean to trust Him together as a church? Do we simply carve the phrase into our doorways, print it in our bulletins, announce it on our marquee, and leave it at that? Or do we lay our lives on the line together as an act of trust? And if we do learn to trust God communally, does it bring about the same results as trusting Him individually? Part of our mission at Mount Pisgah is to etch In God We Trust into our hearts. We know trusting God individually leads to a peace the world knows nothing of; and we know trusting God collectively will impact those around us. Trusting God with all that we are and all that we do cannot help blessing us and benefiting others. So what has trusting God looked like this year at Mount Pisgah? We have trusted a trustworthy God. The more we’ve trusted Him, the more we have seen Him engrave His truth into our lives and the lives of others. You could say we are His currency— spent by Him and bearing His mark. The more we learn to trust Him, the more that mark becomes impossible to miss.
Our trust in Him brings the peace of calm waters that run deep no matter what the circumstance.
Mount Pisgah 2008-2009 Annual Report
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A Message from Pastor Steve
In God We Still Trust! Wow and Praise God! That’s all I can say… To witness how God has worked through and in the people of Mount Pisgah to make disciples of Jesus Christ here, there, and everywhere has been most inspiring. This third annual report is a wonderful testimony to God’s grace and the work of the Holy Spirit. We have seen story after story of God at work saving, healing, feeding, and bringing hope to thousands of people, both near and far, through the mission and ministry of this church. This is one big God-sized story that well exceeds the numbers and figures presented here. To see how lives are being transformed as we worship Christ together and live in His Word is our daily bread. Just as God taught us in His Word, our praying, giving, and serving to touch His heart and glorify Him in our service has worked even in the midst of the worst economic times in our lifetime. Let the pages ahead encourage to you to press on toward the goal to win the prize set before us. God is deploying us for His purpose and glory in inspiring ways; and what has been accomplished, though absolutely miraculous, is just the beginning! Hundreds of families with middle and high school students have been touched and enriched in many areas of life and are now putting a premium on being a discipling family. Our student confirmation was one of the most meaningful ever with 103 youth making their profession of Jesus Christ as Lord and beginning their journey of discipleship. Scores of parents also joined the discipling journey by engaging in the parental version of this Christian confirmation event. In the same manner hundreds of families with young children have been enriched and are praying, serving, and studying the Bible together. We were blessed this year to award sixty-one 2nd graders a Bible of their own to help them grow forward and understand their value to God and others. Scores of adults have been challenged to rise to a new threshold as disciples of Jesus Christ who are in turn making disciples through Sunday school classes and groups. We commissioned and deployed 278 global servants on mission trips around the world. We have also reached out to 8
Mount Pisgah 2008-2009 Annual Report
our community through Live the Vision, Habitat for Humanity, Here to Serve, and many other initiatives by sending thousands of servant leaders of all ages to touch thousands more lives in the name of Jesus Christ. We have made great progress in a new paradigm of equipping and deploying those who are a part of the Mount Pisgah family to return to their networks of family, community, and work life to live out their faith in Christ in practical and contagious ways. God’s work has proved to be recession proof as we have launched several new life-changing initiatives including The Well for the college-aged young adults; the Mount Pisgah@ Work network of ministries including electronic networking and daily devotionals; an amazing need-of-the-giver-to-give movement titled In God We Trust; the establishment of the Mount Pisgah Foundation to serve and empower people to build God’s Kingdom in new ways through the giving of non-liquid assets to be used to fuel the advancement of the Gospel of Christ in word and deed; and the renovation of our staff and structure to better understand what it means to be disciples of Jesus Christ who are making disciples. Finally, we achieved a sustained and viable financial position as we balanced our operating budget to do ministry in the name of Christ using that which God provides through those who are so generously invested in the mission here. We have also continued to move towards our goal of being debt free by reducing our overall indebtedness by $1,456,599 in the past 12 months! Thank you for believing that Christ can do all things through us as He gives us strength and wisdom. Thank you for persevering through the difficult decisions that it took to reload and right the ship going forward. The next 25 years have never looked more promising! May God be praised for this powerful year of ministry and being a part of God’s work to transform lives by bringing help, hope, and a place to call home to literally thousands! Yours in Christ,
Pastor Steve
Mount Pisgah 2008-2009 Annual Report
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Caring Ministry
Our Mission The Caring Ministry seeks to provide Christ-centered help, hope, and healing to those who find themselves in difficult and challenging life circumstances. Mount Pisgah is known throughout the community as a place of grace, hope, and compassion. We consider it a sacred gift God has entrusted to us. As we work to meet the needs of those who are hurting and vulnerable, we trust God to equip us. He has placed “streams of life” within us—our prayer is that those streams would overflow into our community.
Highlights Celebrate Recovery Our Minister of Caring at Mount Pisgah for fifteen years, Mike Roper, is passionate about Celebrate Recovery. He experienced his own personal healing through CR, and he has watched Christ transform men’s and women’s lives each week through the ministry of Celebrate Recovery. As men and women experience the deep healing that CR provides, they begin to live in recovery by realizing that only through Jesus Christ can that healing occur. They learn to put their trust in a trustworthy God.
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In November 2008, Pastor Roper trained 18 CR sponsors at Destiny Metropolitan Worship Church in Marietta to help them get ready to birth a new CR at Destiny Church.
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In addition, Pastor Roper trained 14 new sponsors at Mount Pisgah.
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A man who recently participated in a men’s step study said; I nearly destroyed my marriage because of my addictions to pornography and gambling; but Jesus saved my life and my family through CR.
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Weekly average attendance at CR continues to grow. CR’s average attendance increased this year from 50 to over 70 participants.
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During the 2008-2009 year, two women’s step studies and three men’s step studies were completed. Mount Pisgah 2008-2009 Annual Report
Mary Hall Freedom Center Celebrate Recovery continues our ministry with the women at Mary Hall Freedom Center, a transitional housing unit and recovery ministry for single women in Sandy Springs. •
Each Tuesday, we take a Mount Pisgah bus to Mary Hall to pick up people for our regular Tuesday CR meeting.
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This year, we expanded our ministry at Mary Hall by offering a Friday women’s step study with over 40 weekly participants. It is amazing to see the transformation that God has done in the lives of these women as they participate in worship, small groups, and step studies. These women are being blessed, and they have become blessings to others as they have begun to serve in the ministry at CR.
DivorceCare We have continued our DivorceCare ministry to those struggling with the pain of divorce and separation. DivorceCare is a 13-week, Christ-centered video series for people affected by divorce. Participants experience a caring group of people who walk alongside them through one of life’s most difficult experiences. •
One of the participants in last fall’s group said, When I signed up for DivorceCare, I never thought I could forgive my ex-husband; but now by God’s grace I have forgiven him, and God is beginning to heal my broken heart.
Mount Pisgah 2008-2009 Annual Report
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Congregational Care
Our Mission It is a privilege to walk with people in life’s challenges. Congregational Care has seen God’s grace and glory in so many ways over the past year. As we have trusted Him to meet our own needs and the needs of the many people we serve, we have found God to be worthy of every ounce of our trust.
Highlights Loving Meals The impact this ministry has on people during times of healing or challenge is amazing. We have delivered 450+ meals to Mount Pisgah members and to hurting people in our community who don’t have a church home to minister to them during times of illness. They write how much they have felt the love of Jesus from the volunteers who so lovingly deliver meals to them — even when the volunteers don’t know anything about them. The response we receive from the volunteers about how this ministry fulfills a desire to love on people is such a huge encouragement. The truth is...we’re all needy. Sometimes our needs are met by others, and sometimes they are met when we serve.
Prayer Ministry This ministry may well demonstrate In God We Trust more than anything else we do as a church. That’s because prayer is the language of trust. Our ministry continues to be a source of encouragement and support to people in need. Our intercessory prayer team prays for the prayer requests we receive daily. They do so with love, confidentiality, and faith. They often pray for faces they will never see. They often lift up situations of which they will never know the outcome. Our First Beginnings Prayer Ministry continues to be led by Ms. Phyllis Fortune and her prayer team. By lifting up babies before the Lord daily, young families are being loved in a specific way!
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Mount Pisgah 2008-2009 Annual Report
Stephen Ministry If our prayer ministers use their voices, our Stephen Ministers use their ears. Through this ministry we give hope and help to those who simply need to be heard. Seventy-seven people received the benefits of a Stephen Minister this past year. That means they were given tangible evidence of God’s love: they were noticed, listened to, and loved. Stephen Ministers are a close family of caregivers who love to gather every month.
Healing Is a Choice This ministry was launched just last year. We provided two classes for a total of 16 people who needed a safe place to heal. Not only does HIAC offer that place, the classes offer support during the journey. The course is designed to lead hurting people to the choice to heal. We are now an official Healing Is a Choice church. That means we can offer help to hurting people in the community.
GriefShare In every community there are always those who are grappling with loss. Our church and our city are no different. GriefShare continues to offer healing to grieving people. This past year, through the ministry of GriefShare, we walked through the dark passages of loss with 18 people. Their lives were touched by the simple message that God is present and trustworthy in the process and by the willingness of others to walk with them. Apart from our programs designed to meet these specific needs, Congregational Care continues to minister through hospital visits and meeting with people to talk about other challenges in life.
Mount Pisgah 2008-2009 Annual Report
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Community Outreach
Our Mission It is our heart’s desire to share the love and grace of Jesus Christ with those who are in need. Expressed another way, it is to give a cup of cold water. And if anyone gives even a cup of cold water to one of these little ones because he is my disciple, I tell you the truth, he will certainly not lose his reward. Matthew 10:42 Mount Pisgah Community Outreach provides an avenue for loving people. It is transformational in the lives of those who are helped, as well as those who are blessed to serve. Even more importantly, we want to open our heart’s eyes in order to see those who are experiencing difficult times the way God sees them. When we can look at our brothers and sisters who are suffering physical need and see them as human beings made in the image of God, then, we can cultivate a compassion that mirrors God’s heart. The mission of Community Outreach is to meet physical needs in tangible ways as a witness to God’s love. It may be a bowl of chili and a sandwich served at Trinity Table in downtown Atlanta or a Christmas gift selected especially for an Angel Tree child whose parent is in prison. Perhaps it is serving at the USO on a Saturday morning, simply offering a smile and a handshake to a soldier who is far from home. It could be spending a Sunday afternoon worshiping and visiting with a lonely senior at a nursing home. It may be providing a home to a family through Habitat for Humanity or helping to renovate a church severely damaged by a devastating tornado. God’s love can be translated into a hand-stitched blanket from the Blanket Ministry or a loaf of day-old bread delivered by a Bread Ministry volunteer. No act of service is too large or too small in God’s eyes. He invites each of us to offer ourselves as living sacrifices. Trusting God to meet our own needs eventually leads us to serve others out of the abundance He has provided us. That kind of service is a lovely form of worship.
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Mount Pisgah 2008-2009 Annual Report
After months of labor, volunteers put the finishing touches on the Eastside Community Church in Cabbagetown.
Highlights Angel Tree Angel Tree is just one of the many holiday outreach projects that Mount Pisgah members love to support. Through Angel Tree we provide Christmas gifts for children on behalf of their incarcerated mother or father. A young lady from Mary Hall Freedom House was attending a Saturday Women’s Ministry event at Mount Pisgah. (Mary Hall is a residential treatment program focused on improving the quality of life of women with children by empowering them to break the cycle of addiction, poverty, and homelessness.) Mount Pisgah was in the midst of their annual holiday outreach programs, and the young woman happened to notice the angels for Angel Tree up on the wall of the Gathering Area. The angels on the tree represent the children our members select to receive gifts. With tears in her eyes, she commented to one of the Mount Pisgah women in attendance, I used to receive gifts from Angel Tree when I was a little girl. They were the only Christmas gifts I got. I didn’t know it was people like you doing this for me. Now I get to say ‘thank you’ in person.
Angel Tree Gifts
Cabbagetown When a tornado ripped through downtown Atlanta on Palm Sunday 2008, it devastated the historic Cabbagetown section of the city. Mount Pisgah’s disaster response team responded promptly. Volunteer teams repaired the roof on the home of Bertha Wise and completely renovated the exterior of the Eastside Christian Community Church. Even more significant was that the volunteers who gave countless hours week after week formed a real bond and community with fellow human beings in need. Mount Pisgah 2008-2009 Annual Report
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Here to Serve Here to Serve is about being the hands and feet of Jesus. It is reaching out to serve the needs of others so that they may see our good works and know the Lord we serve. Last fall a few church members were visiting and praying with residents of a local nursing home as part of our annual Here to Serve day. Some of the residents of this particular facility have little or no family nearby; and it can be a sad, lonely, and often dismal place. As church members made their rounds, they came upon one lady in her room, in her bed, with the covers pulled over her head. Since it was the middle of the day, and there were others from the church playing bingo in the dining room, they encouraged her to let them help her into her wheelchair to go and join in the fun. She seemed very depressed, not wanting to get out of the bed. However, as they engaged her in conversation, she began to open up and talked about her family and grandchildren. Then they asked if they might pray with her. She agreed and offered up a very moving and beautiful prayer. Before they knew it, she not only wanted to get up, she wanted to take them to see her artwork, which it had won a prize in a contest the home had sponsored earlier in the week. They wheeled her to the dining room where the bingo game was in progress, and she proudly pointed to her painting displayed on the wall. As they left, she remained there, happily participating in the bingo game. God impressed on them that day how little effort it takes to impact a life. Because someone was willing to share a little time and the love of Christ, that sweet lady went from being under the covers to taking part in life around her, reminded that she is a child of God. Serving others is simply a matter of taking advantage of each opportunity as God presents it.
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Mount Pisgah 2008-2009 Annual Report
Food collected for Here to Serve
May the God of hope fill you with all joy and peace
as you trust in him, so that you may overflow with hope by the power of the Holy Spirit. Romans 15:13
Global Missions Our Mission We have gained so much from a life of trusting God. How can we keep that to ourselves? We know the truth of the gospel, and the abundant life Jesus offers knows no geographical or cultural boundaries. Thus, our mission is to lead the church to respond to Christ’s command to take the gospel here, there, and everywhere by giving, going, serving, and praying. As a result of this ministry tens of thousands of disciples are trained and equipped around the world each year. God has provided our church with the time, talents, and resources to make tremendous strides in His plan to make disciples from every tongue and nation as we prepare for the return of our King!
Highlights
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Over the past year Mount Pisgah UMC sent well over 300 people on mission trips to make disciples around the world.
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In Kenya, we helped complete the first dining hall for former street children who now live at Tumaini Children’s Home. Our June 2009 mission team of 57 people was there to celebrate with the 100 children on the day the dining hall was officially opened. The children were so thankful for God’s provision. Despite the ongoing drought, God sent rain and a beautiful rainbow that day to remind us of His promises to provide for us! Our mission teams provided medical care for the children, worked on construction projects, led VBS ministries, taught health hygiene, trained pastors, and installed clean water systems in several locations in Kenya.
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In St. Lucia, our four full-time abstinenceeducation teachers led over 600 young people to Jesus over the past year.
Mount Pisgah 2008-2009 Annual Report
These two Kenyan brothers are among those suffering through Kenya’s severe four-year drought.
A pastor-in-training in a WATS classroom.
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We sent over one hundred of our people (several dozen of our young families) to Costa Rica to support the local church through construction and VBS activities for the children. These families with kids as young as 7 years of age had a family vacation with a spiritual purpose that they will remember for the rest of their lives!
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In Nigeria, we supported West Africa Theological Seminary by providing full scholarships for 24 students. We also sent mission teams to support construction projects, provide medical care, and train future pastors.
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Our mission teams installed several water purification systems in different parts of Kenya and Nigeria, where drinking unclean water is the number one cause of death.
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In India, our eight church planters distributed almost 20,000 copies of God’s Word and led almost 4,000 people to Jesus!
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In Russia, we completed the Bible translation for the Komi people group so they may read God’s Word in their native tongue for the first time.
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Other short-term teams assisted Katrina victims in Mississippi as well as tornado victims locally in Cabbagetown.
One of 35 Mount Pisgah adults who connected with Kenya’s children last June.
Mount Pisgah 2008-2009 Annual Report
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Discipleship
Our Mission Just as Jesus mandated, our goal is to make disciples of Jesus Christ here, there, and everywhere. It’s simple: as men and women in our ministries grow in trusting God with every aspect of their lives, that growth spills out into their relationships. Those relationships then create an environment for passionate disciples of Jesus Christ to develop. Through our Men’s and Women’s Ministries we have deployed servant lay leaders, not just here, but there and everywhere to intentionally pour themselves into the lives of other men and women.
Highlights
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Dozens of lay leaders taught over 60 people in a wide range of Bible studies and small groups this year.
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About 1,000 adults participated in various discipleship ministries throughout the year.
Mount Pisgah 2008-2009 Annual Report
In him our hearts rejoice, for we trust in his holy name. Psalm 33:21
Children’s Ministry
Our Mission The Children’s Ministry mission is to teach kids to love God and love people and to grow in a personal relationship with Jesus Christ through intentional Bible teaching, interactive worship, and meaningful family mission opportunities.
Highlights Alpha and Omega Missions These family mission opportunities have been extremely well attended, and we are beginning to really cultivate the attitude with our children and their families that compassion and service to others supernaturally flow from who we are as believers in Jesus.
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After we presented a record number of Wal-Mart gift cards, 85 Knots of Love Blankets, personalized prayer cards, and Scripture promises books from our family mission project, the president and CEO of Murphy Harpst Home for Children, Joanne Simmons, remarked, Your gifts begin working in the lives of our hurting children immediately to restore their faith in adults and in God. But your gifts also work together to build a foundation upon which they—the children and teens—can begin to build a life around the essential knowledge that they are loved. Your gift is not just a Christmas gift; it is an investment in a child’s life.
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In February 2009 we began a partnership with CURE Childhood Cancer with the largest participation in a single-day mission project in our history. Over 200 people made snack boxes for hospital-bound families, donated gas cards so families could commute to Atlanta for treatment, and, perhaps most importantly, committed to be prayer partners for the 75 kids currently battling childhood cancer. As an aside, this outreach so impacted Kristin Connor, executive director of CURE, that she and her family are now regular attendees at Mount Pisgah. They serve not only in Children’s Ministry but in the Technical Ministry of our church as well. Mount Pisgah 2008-2009 Annual Report
Mount Pisgah children help CURE for Childhood Cancer Family Ministries
Vacation Bible School As one of our largest outreaches into the community we served over 400 children this year at VBS teaching them, It all comes back to Jesus. Kids in our community experienced a week of fellowship, games, Bible skits, dramas, and outstanding music that transformed their lives for Jesus Christ. •
One mom shared this beautiful story as she was driving with her seven-year-old-son, who attended our VBS this summer: James asked for me to put on some of “his” music. I hit the random button and out comes “Good Day Mate” from VBS. He starts singing loud and proud with hands moving to the beat. I hear his window go down, and I asked him what he was doing. He said he wanted people to hear the music just in case they didn’t know about Jesus. I had to make sure to thank the people who share in the nurturing of James’ faith and his growing relationship with Jesus Christ.
Advent, Christmas, and Lent Services as Outreach These services reached a record number of families in our community. Throughout the year we created opportunities for children and their families to make and extend personal invitations to these special services, our weekly worship, and our 5th grade leadership club, High Five. High Five meets bi-monthly after church and provides an environment where kids feel comfortable bringing their non-churched friends to enjoy food, fellowship, and fun. The attendance in High Five continues to grow each year with this year having 50 kids at the final event.
Mount Pisgah children help celebrate Christmas Eve Service
Mount Pisgah 2008-2009 Annual Report
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Student Ministry
Our Mission We have a lot of fun with teenagers at Mount Pisgah. In fact, fun and hilarity abound! But our goal in Student Life Ministry is definitely not entertainment. It is to reach out to teenagers here, there, and everywhere and turn them into disciples of Jesus Christ. Sometimes it’s hard to trust God with our children, especially when they are on the cusp of adulthood. But we believe God has just as much abundant life, just as much peace, just as much purpose in store for our teenagers when they trust Him as He does for our adults. Imagine a place where young people continually affirm, In God We Trust. That can change the world.
Highlights •
Seventy-three middle-schoolers attended the “Momentum” retreat in Tallulah Falls, Georgia, while 45 high-schoolers rafted the Ocoee River in September.
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We confirmed 103 students and equipped 120 parents during 8 weeks of confirmation. During this time there were also 31 baptisms.
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We averaged 230+ students weekly at Elevation worship.
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We sent Jamie and Sarah Staley to serve with International Justice Mission in Kampala, Uganda. (The Staleys had been student ministers here at Mount Pisgah.) 2008 Confirmation Class
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Global Week, found us camping out at an event called “Glow.” Our purpose during this time was to heighten awareness about world missions.
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River of Life: Our team of 30 middle-school students and adults spent five days serving the less fortunate in rural Augusta.
Mount Pisgah 2008-2009 Annual Report
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• Middle school students participate in team building activities at FLIP
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• Savannah Danzey with two students from the Mountain Park Academy in Kenya
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Battle of the Bands: Hundreds of teens unloaded on our campus during our yearly event. Most of them had probably never seen the inside of our church. FLIP: Twenty middle-school boys and five adult men spent a week of worship and fellowship at Covenant College. Several of the boys said, That was the most spiritual experience of my life. Kenya: Fifty-seven high school students and adults traveled to Mountain Park Academy to serve 15 orphans and 600 students for two weeks. The team fed 400 families, worshipped in a local church, played from morning till night with children, and shared the gospel in several forms. Our Elevation worship service, Impact groups, and 930 programs grew students in their walk as we studied the Word together. Other events where our students drew closer to God included Pioneer Plunge, the rafting trip, Momentum middle-school retreat, Velocity middle-school retreat, GLOW, Big Stuff Beach Camp, and our many Fire by Night services. Events where students also drew closer to each other were the high school camping trip, a Braves game trip, and a Laser show trip. The middle school students bonded during a lock-in and a Six Flags outing. Forty-two high-school students took to the slopes of West Virginia in January for our annual Ski Trip.
High school students at Winterplace, West Virginia
Mount Pisgah 2008-2009 Annual Report
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Generous Living
Our Mission The mission of Mount Pisgah’s Generous Living Ministry is to recruit, train, equip, and deploy giving champions who exhibit generosity in regard to the management of their time, talent, and treasure. Our vision is to establish and sustain an environment in which biblical stewardship is a personal way of life for Mount Pisgah’s staff, membership, and church business dealings.
Our Leadership Both Shawn Murphy and Jeannie Lewis are new staff additions brought in to bolster the Generous Living Ministry efforts at Mount Pisgah. Pastor Shawn Murphy provides staff leadership to this ministry, and Jeannie Lewis provides executive-quality administrative capabilities.
Shawn Murphy
Glenn Davenport continues to serve as lay leader along with a growing number of servant leaders who enhance the ministry through their inspiring influence through prayer, budget counseling, a major emphasis on financial-management education, and much more.
Our Strategies MP Foundation: Building a Foundation for the Future
Building a foundation for the future
The Mount Pisgah Foundation was established in 2009 for the purpose of inviting, equipping, and deploying donors to fulfill God’s calling on their lives through gift planning. The Mount Pisgah Foundation honors the dedicated group of members who have chosen to include Mount Pisgah ministry partners in their estate or gift planning, regardless of the amount or nature of the gift. 26
Mount Pisgah 2008-2009 Annual Report
Jeannie Lewis
The Foundation allows members to provide future support for a variety of ministries at Mount Pisgah such as: Mount Pisgah UMC Mount Pisgah Christian School The Summit Counseling Center A Beacon of Hope Education and Scholarships Capital Improvements Community Outreach and Global Missions
In God We Trust: Giving Back Our Very Best!
Praise God! The 2009-2010 In God We Trust Annual Campaign for Missions & Ministry was a great success, especially in the context of a severe nationwide recession. The 2009-2010 In God We Trust campaign exceeded funds pledged from the previous year’s Day of Hope Annual Campaign and surpassed the campaign goal of 500 households participating, with an additional 40 families now invested through tithes and offerings in the mission of Mount Pisgah.
Live the Vision
The two-year celebration of the Live the Vision capital campaign saw over $7 million in funds used to reduce the mortgage; make significant donations to Murphy-Harpst, North Fulton Community Charities, and global missions; and to move forward with the building of a Student Ministry Center on North Campus.
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The Giving Journey Approximately 1,800 people participated in one or more of the following financial Bible study classes: • • • • • • •
Crown Financial Ministries financial study Managing Your Finances God’s Way Crown Saturday Seminar Dave Ramsey’s Financial Peace University Hispanic Version of FPU Dave Ramsey’s Townhall of Hope 2nd-5th graders Intro to Finances Class
Results:
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Deeper understanding of Scripture as it relates to being good stewards.
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People have accepted Christ and become involved in ministries after taking classes.
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Numerous anecdotal career and lifestyle changes—downsizing homes, selling cars, etc—occurred due to stewardship teaching.
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More people are tithing who have never tithed before.
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Post-class testimonies of recommitment to God and spouses.
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Increased lay leadership.
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Aspects of Mount Pisgah’s Generous Living Ministry are being implemented in other churches around the country.
Mount Pisgah 2008-2009 Annual Report
O LORD Almighty,
blessed is the man who trusts in you.
Psalm 32:10
Hispanic Ministry
Our Mission Our goal is to be part of the Great Commission by making disciples among the Hispanic Community. The best is yet to be. ~ John Wesley Wesley refused to focus only on the blessings of the present. He not only trusted God for today, he looked ahead to what trusting God would mean for tomorrow. He tied his future to the ongoing work of the kingdom. God has done good things this year. We look forward to what is next as we continue to trust Him to accomplish our mission.
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This past year we have had many challenges due to the impact of the economic recession. Some members left our church and returned to their countries of origin; others moved to a different state to find jobs; and one member was deported for lack of documents. Despite some losses, our worship attendance increased 20%.
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We reached out to the community by joining forces with our Children’s Ministry and Apartment Life this past summer. For three afternoons we conducted Vacation Bible School inside an apartment complex where 40% of the residents are Hispanic. Average attendance was 30 kids.
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Hispanic Christmas service in South Hall
This past year our District Superintendent Ed Tomlinson recommended that we adopt a Hispanic mission church in Woodstock, Georgia. So we did. That fellowship had an increase in attendance from 10 to 30 members.
How to get involved Church growth is not just about people coming in to church but about people going out to expand the Kingdom. Therefore, we continue to develop lay leadership by training them. Check out opportunities at our web site www.hispanicministrymountpisgah.org. 30
Mount Pisgah 2008-2009 Annual Report
The children are always ready to join in celebration!
The works of his hands are faithful and just;
all his precepts are trustworthy.
Psalm 111:7
A Beacon of Hope Pregnancy Resource Center/ The College Women’s Center Our Mission ...fearfully and wonderfully made... Psalm 139 God’s love for the unborn, seen and unseen, continues to be the impetus for the life affirming ministry of A Beacon of Hope, Pregnancy and Relationship Resources, and Satellite DeKalb County, The College Women’s Center. Our volunteers have a passion to promote healthy relationships and provide life affirming counsel and care to people in crisis pregnancies through compassion and Christian discipleship. As we serve the men and women who are considering abortion we offer hope to the community at large. Trusting in God is, for many of the people we serve, a seeming impossibility. Our hope is to convince them that He is indeed trustworthy by being trustworthy in our ministry to those in crisis. Through our vast array of Christ-centered support services, not only are “miracle babies” born, multiple miracles are birthed as well. Over 1,000 children have been born since the conception of A Beacon of Hope, many who were initially intended for abortion. Beacon’s services are designed to provide those we serve with ongoing guidance toward socio-economic, spiritual, emotional, mental, and financial stability. We also supply our patients with parenting and adoption options. The beneficiaries of A Beacon of Hope are men, women, newborns, and toddlers. All services are free of charge and anchored in Christian faith without regard to race, age, nationality, religious affiliation, marital status, income, or disability.
Our Vision
Lives saved, touched, and changed.
Core Values Compassion, Grace, and Hope Respect Autonomy: Minister not Manipulate Sacrificial Love and Integrity Prayer and Christian Discipleship Medically Accurate Presentation of Truth 32
Mount Pisgah 2008-2009 Annual Report
Five Areas of Ministry
Services Provided • Free Pregnancy Testing • Free Limited
Ultrasound Testing • Options Education • Life Skills Education
• Parenting Classes • Material Support
• Adoption Referrals/
Support Groups • Post-Abortion Counseling Group Support
• Mentoring • Support Groups • Budgeting • Financial and Medical Referrals for ABOH Patients
Prevention Intervention Patient Care Evangelism Reconciliation
Highlights The last two months of this fiscal year represented the highest number of patients served in one month since the conception of A Beacon of Hope and the Satellite DeKalb County office, The College Women’s Center. May ~ 92 patients served June ~ 89 patients served The majority of these mothers enter into the center feeling abortion is their only option. A Beacon of Hope and The College Women’s Center embrace these individuals in the midst of their tumultuous circumstances and serve them with love while educating them with truth about their options: either parenting or placing a child for adoption. Yes, we encourage them to trust God, but we also entrust this ministry to Him. A Beacon of Hope currently has over 300 volunteers who walk, talk, and breathe life into both centers. They give their time, their talent, and their treasure. As a result there are many men and women who experience unplanned joy in the midst of unplanned crisis.
• Domestic Violence
•
15 patients given professional counseling through A Beacon of Hope referrals.
• Housing Placements
•
7 homeless patients placed in housing.
•
25 patients in mentoring relationships with A Beacon of Hope and the College Women’s Center trained volunteers.
•
9 volunteers newly trained to discuss the option of adoption with patients.
Assistance Referral
• Recovery Placements Referral
• Pre-natal / Post-natal Education Programs
• Post-delivery Meal
Preparation and Delivery
Mount Pisgah 2008-2009 Annual Report
33
The Stories •
A Beacon of Hope had an abortion-minded couple in for an ultrasound, and they were deeply impacted by the image of new life. The father was especially impacted by the ultrasound and when asked what he thought he said, That’s just wild! He was so excited! The young woman was very overwhelmed but was moved by the response of the father. The father stated that he would support her and the baby 110%! This couple has now chosen to parent and is beginning programming.
•
A young teen girl entered into the center very abortion-minded. She reluctantly scheduled an ultrasound and was able to see the heartbeat to learn that she was seven weeks into her pregnancy. Now believing her baby is a life she is trying to create a plan of action that will support herself and her child. Her culture does not allow for this type of acceptance, and she is aware that giving birth will probably lead to being completely disowned from her family. A Beacon of Hope has informed her that she is not alone and is currently walking alongside her.
•
A woman with two sets of twins arrived at the center feeling too overwhelmed to parent. She was extremely frustrated with the pregnancy and considered abortion her only option. After viewing the ultrasound she has chosen to carry the baby to term.
•
A 23-year-old entered the center pregnant for the sixth time and feeling overwhelmed and frustrated with the positive test. The patient care advocate team began to unpeel the source of the pain. This young lady was sexually abused at a very young age and was searching for self-respect and value. Due to her past she was 100% abortion-minded if the baby was a female and abortion-vulnerable regardless of the sex of the child. A Beacon of Hope connected this young lady to an adoption counselor and offered love and care to assist her through the process. There are many stories—stories of pain and stories that eventually end in joy. Thankfully, we serve a God that is delighted to be part of the story.
34
Mount Pisgah 2008-2009 Annual Report
I will say of the LORD, “He is my refuge and
my fortress, my God, in whom I trust.”
Psalm 91:2
The Summit Counseling Center
Our Mission There are times when trusting God means trusting His servants to help. The Christian community needs safe places where those with emotional needs, those in times of crisis, and those with broken relationships can come for support and guidance. The mission of The Summit Counseling Center is to provide professional, faith-based counseling to those who need it, regardless of their ability to pay.
Highlights •
36
We conducted 4,868 individual, marriage, and family counseling sessions. This was a 19% increase over the previous year.
•
The Summit provided over $52,558 of pro-bono discounts and $81,706 in Client Assistance Funds to underwrite the fees of clients who were unable to pay the full cost of counseling services.
•
In July 2008, Mrs. Carleen Newsome, MS, LAPC, joined The Summit as our first associate staff member following the completion of her Master of Science in Community Counseling at North Georgia College and State University in Dahlonega, Georgia. She also passed the National Counselor Examination and is completing an additional three years of supervision to receive her full licensure as a Licensed Professional Counselor in the State of Georgia. Mrs. Newsome serves as an adjunct professor at Southern Catholic College in Dawsonville, Georgia.
•
In August 2008 and March 2009, Rev. David Smith, executive director of The Summit, attended The Samaritan Institute’s Clergy and Congregational Care Training Programs. These programs are part of a three-year program sponsored by The Samaritan Institute and funded with a grant from the Lilly Endowment.
Mount Pisgah 2008-2009 Annual Report
The Summit Counseling Center
Carleen Newsome, MS, LAPC
Danielle MacMillan, LCSW
•
Sixty program participants were selected from over 500 Samaritan Centers in the US and Japan. At the March 2009 event held at Simpsonwood Retreat Center in Norcross, Georgia, Rev. Smith presented as one of three panelists on the topic of Marketing CCC Services.
•
In August 2008, Rev. Smith attended the Annual Conference of The Samaritan Institute in Denver, Colorado. He was also invited to participate in a Leadership Consultation Group—a group of ten counseling center executive directors who meet twice yearly with a Samaritan Institute consultant to learn from one another in a leadership case-consultation format. The group met in August in Allenspark, Colorado, and in March 2009 in Albuquerque, New Mexico.
•
In Fall 2008, Mrs. Joan Muñoz joined the staff of The Summit as our first director of Development.
•
In March 2009, The Summit received a substantial contribution from The Cecil B. Day Foundation to support The Summit’s Client Assistance Fund and the ministry of The Summit.
•
In March 2009, Rev. Neal Kuhlhorst provided the first Becoming One Flesh Training Program for therapists. Becoming One Flesh is a premarital and marital education workshop developed at The Summit. Trained leaders received a leader’s guide and a participant’s workbook and were afforded a discount on the purchase of materials, which now include a resource CD, a PowerPoint DVD, and online access to additional marketing materials.
•
Throughout the year, Dr. Lenore Doster presented seminars and workshops related to her recently published book—Rock Solid Parenting: Secrets of an Effective Parent. Dr. Doster spoke at several parent gatherings including those at Autry Mill Middle School in Alpharetta and the Wesleyan School in Norcross.
•
In May 2009, Mrs. Danielle MacMillan, LCSW, joined the staff of The Summit as a staff therapist. Mrs. MacMillan is a graduate of the top-ranked George Warren Brown School of Social Work at Washington University in St. Louis, Missouri. Mrs. MacMillan brings extensive experience in providing individual, family, and group therapies for children, teens, and adults. Mount Pisgah 2008-2009 Annual Report
37
•
In May 2009, Mrs. Kellie Gwaltney joined The Summit as our very first clinical intern. Mrs. Gwaltney is amasters student enrolled in the Marriage and Family Therapy Program at Richmont Graduate University in Atlanta, Georgia.
•
In May 2009, Miss Mary Elizabeth Shaw joined The Summit as a front-office summer administrative intern. Miss Shaw is a Junior Psychology Major at Palm Beach Atlantic University in West Palm Beach, Florida.
•
In May 2009, Summit staff therapist Leigh Anne Spraetz, LPC, helped 99% of the high school seniors in her Individualized College Counseling Program achieve acceptance to their first and/or second choice of colleges.
•
In June 2009, Dr. Lenore Doster presented a new workshop at The Summit, Healthy Mind, Healthy Body, to address diet, nutrition, body image, lifelong health, and healing.
•
In June 2008, The 3rd Annual Summit Golf Classic sponsored by KeyWorth Bank was held at The Country Club of The South and boasted a field of 128 golfers! This event raised $29,000 to support The Summit Client Assistance Fund and the ministry of The Summit.
The Summit Golf Classic has quickly become an annual favorite
38
Mount Pisgah 2008-2009 Annual Report
Some trust in chariots
and some in horses,
but we trust in the name of the LORD our God.
Psalm 20:7
Executive Pastor Report
Never Before … It was a year of “never before.” Through the grace of God and the generosity of God’s people, we weathered a difficult economic season with no further layoffs than the 17 positions we eliminated in April 2008.
Human Resource Summary Karen Hupruch left the Stewardship Ministry to join Jeanette Dickens in her new church; we replaced her with Jeannie Lewis. Sarah Seeman, director of Local Outreach, moved to Kansas City, and we replaced her with Marilou Bordonaro. Pastor Steve identified Shawn Murphy as a resource to assist in Stewardship. Shawn worked as a contract employee for 6 months and joined our staff in July 2009 to manage both Stewardship and WorkLife ministry. He will also shepherd the new-member programs to include spiritual-gift assessment and assimilation. Tracey Casale resigned as executive director of A Beacon of Hope, and we replaced her with Talli Moellering. We reorganized the staff to align with the new strategy of Family, Community, and Work Life.
Ministry We initiated a new ministry this year for college-aged individuals. Justin Ely, under the direction of Mark Danzey, is leading this ministry. We also “ blessed” and “released” the New Hope ministry in September 2009. We finalized the one-page Strategy Articulation Map, and each ministry area developed a new strategy for their ministry area in concert with the overarching Mount Pisgah United Methodist Church Strategy.
40
Mount Pisgah 2008-2009 Annual Report
During this year we formed the Mount Pisgah Foundation under the auspices of the National Christian Foundation. We also formed a Trustee Committee to oversee the real property and risk management for Mount Pisgah in accordance with the Book of Discipline. We received final approvals to build the Student Life Center from the District Committee on Buildings, the Trustees, the Building Committee, the Finance Committee, and the Charge Conference. We refinanced a $6M+ loan and arranged to borrow an additional $2M to build the new Student Life Center. We conducted one of the most successful operating campaigns ever with the In God We Trust campaign and accomplished our goal of facilitating a sustained movement of people engaging with people, rather than simply relying on staff motivating people. We also added approximately 100 new men to the men’s network through Journey, sunday school, small groups, worklife, and fellowship events. The story of Israel is a see-saw journey between daily obstacles and Divine intervention. The result is a testimony to God’s sovereignty and love. Reflecting on this year’s circumstances, never before has our dependence on God been more glaring. And never before has His faithfulness been more evident.
Fred Erler Executive Pastor
Mount Pisgah 2008-2009 Annual Report
41
MOUNT PISGAH UNITED METHODIST CHURCH AND CERTAIN RELATED ENTITIES COMBINED FINANCIAL STATEMENTS YEARS ENDED JUNE 30, 2009 AND 2008 with INDEPENDENT AUDITORS’ REPORT
TABLE OF CONTENTS PAGE INDEPENDENT AUDITORS’ REPORT
3
COMBINED STATEMENT OF FINANCIAL POSITION
4-5
COMBINED STATEMENT OF ACTIVITIES AND NET ASSETS
6-7
COMBINED STATEMENT OF CASH FLOWS
8-9
NOTES TO COMBINED FINANCIAL STATEMENTS
10-16
INDEPENDENT AUDITORS’ REPORT Finance Committee Mount Pisgah United Methodist Church We have audited the accompanying combined statement of financial position of Mount Pisgah United Methodist Church and Certain Related Entities as of June 30, 2009 and 2008 and the related combined statements of activities and net assets and cash flows for the years then ended. These combined financial statements are the responsibility of the management of Mount Pisgah United Methodist Church and Certain Related Entities. Our responsibility is to express an opinion on these combined financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the combined financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the combined financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall combined financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the combined financial statements referred to above present fairly, in all material respects, the combined financial position of Mount Pisgah United Methodist Church and Certain Related Entities as of June 30, 2009 and 2008, and the changes in combined net assets and combined cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.
November 20, 2009
Suite 900, 171 17th Street, N.W., Atlanta, GA 30363 Tel 404.874.6244 Fax 404.874.1658 www.smith-howard.com
MOUNT PISGAH UNITED METHODIST CHURCH AND CERTAIN RELATED ENTITIES COMBINED STATEMENT OF FINANCIAL POSITION JUNE 30, 2009 AND 2008 ASSETS Current Assets Cash and cash equivalents Accounts receivable Other Due from related entity Total Current Assets Land, Buildings and Equipment, at Cost (Notes 4 and 5) Land Church building complex Furniture and equipment Vehicles Equipment held under capital leases Less accumulated depreciation and amortization
Loan Costs, Net of Accumulated Amortization of $16,627 and $9,323 in 2009 and 2008, respectively
2009
2008
$ 3,859,414 52,672 58,559 21,411
$ 1,668,067 20,404 58,150 28,410
3,992,056
1,775,031
3,392,048 30,754,278 4,282,915 358,473 38,787,714 11,385,403 27,402,311
3,392,048 30,484,071 4,004,942 358,473 173,575 38,413,109 10,212,879 28,200,230
69,772
46,613
$ 31,464,139
$ 30,021,874
The accompanying notes are an integral part of these combined financial statements. 4
LIABILITIES AND NET ASSETS Current Liabilities Accounts payable Accrued liabilities Agency funds Capital lease obligations, current portion Borrowings under line of credit (Note 5) Current portion of long-term debt (Note 5)
2009 $
Total Current Liabilities Long-Term Borrowings Under Line of Credit (Note 5) Long-Term Debt, Net of Current Portion (Note 5)
2008
298,048 23,971 57,974 744,985 657,384
$
321,323 21,185 154,861 18,955 636,759
1,782,362
1,153,083
-
816,858
17,176,070
16,647,316
8,851,267 3,578,800 75,640
7,783,179 3,548,250 73,188
12,505,707
11,404,617
$ 31,464,139
$ 30,021,874
Commitments and Contingencies (Note 6) Net Assets Unrestricted Temporarily restricted (Note 8) Permanently restricted (Note 8)
5
MOUNT PISGAH UNITED METHODIST CHURCH AND CERTAIN RELATED ENTITIES COMBINED STATEMENT OF ACTIVITIES AND NET ASSETS YEARS ENDED JUNE 30, 2009 AND 2008
Unrestricted
2009 Temporarily Permanently Restricted Restricted
Total
Revenues and Other Support: Tithes and offerings Church capital campaign fund Designated giving for debt reduction The Summit Counseling Center A Beacon of Hope Women's Center Other revenues and contributions Net assets released from restrictions (Note 9)
$ 5,373,065 621,517 443,603 815,007
1,985 467 -
$ 5,373,065 2,055,625 680,891 444,070 1,263,695
-
-
30,550
2,452
9,817,346
3,207,406 1,486,309 465,456 422,012 1,201,713 476 480 476,480 1,179,827 835,913 (558,860)
-
-
3,207,406 1,486,309 465,456 422,012 1,201,713 476 480 476,480 1,179,827 835,913 (558,860)
8,716,256
-
-
8,716,256
Increase in Net Assets
1,068,088
30,550
2,452
1,101,090
Net Assets at Beginning of Year
7,783,179
3,548,250
73,188
11,404,617
-
-
-
-
$ 8,851,267
$ 3,578,800
75,640
$ 12,505,707
2,531,152 9,784,344
$
2,055,625 57,389 448,688
$
(2,531,152)
Expenses: Compensation and benefits Program Conference apportionments Designated expenditures Buildings and grounds General and administrative Depreciation and amortization Interest Internal allocations (Note 7)
Elimination of Pastor Radio Net Assets at End of Year
$
The accompanying notes are an integral part of these combined financial statements. 6
Unrestricted
$ 5,582,598 487,843 420,421 445,513
2008 Temporarily Permanently Restricted Restricted
$
4,958,901 236,350 81,203 639,978
$
Total
50,320 22,868 -
$ 5,582,598 4,958,901 236,350 619,366 443,289 1,085,491
-
12,925,995
4,363,188
(4,363,188)
11,299,563
1,553,244
73,188
3,746,272 1,345,339 399,278 782,019 1,125,815 666 668 666,668 1,224,579 1,124,122 (523,774)
-
-
3,746,272 1,345,339 399,278 782,019 1,125,815 666 668 666,668 1,224,579 1,124,122 (523,774)
9,890,318
-
-
9,890,318
1,409,245
1,553,244
73,188
3,035,677
6,467,575
1,995,006
-
8,462,581
-
-
(93,641) $ 7,783,179
$ 3,548,250
$
73,188
(93,641) $ 11,404,617
7
MOUNT PISGAH UNITED METHODIST CHURCH AND CERTAIN RELATED ENTITIES COMBINED STATEMENT OF CASH FLOWS YEARS ENDED JUNE 30, 2009 AND 2008
Cash Flows from Operating Activities Cash received from tithes and offerings Cash received from capital campaign for missions Other revenues and contributions Cash paid to suppliers and employees Interest paid Net Cash Provided (Required) by Operating Activities
2009
2008
$ 5,373,065 $ 5,582,598 252,846 1,010,186 2,356,388 2,261,885 (6,811,302) (7,639,670) (835,913) (1,124,122) 335,084
90,877
Cash Flows from Investing Activities Purchases of land, buildings and equipment Student building Beacon and counseling center building Other buildings and equipment
(138,495) (5,373) (230,737)
(179,520) (226,750) (246,365)
Net Cash Required by Investing Activities
(374,605)
(652,635)
(71,873) (18,955) (30,463) (1,450,620) 2,000,000
401,233 (34,715) (2,479,981) -
1,802,779
4,185,065
2,230,868
2,071,602
Net Increase in Cash and Cash Equivalents
2,191,347
1,509,844
Cash and Cash Equivalents at Beginning of Year
1,668,067
198,903
Cash Flows from Financing Activities Net borrowings (repayments) on revolving line of credit Principal payments on capital lease obligations Additional loan cost payments Principal payments on long-term debt Principal proceeds on long-term debt Contributions restricted for capital improvements and debt service Net Cash Provided by Financing Activities
Elimination of Pastor Radio
-
Cash and Cash Equivalents at End of Year
$ 3,859,414
(40,680) $ 1,668,067
(Continued) The accompanying notes are an integral part of these combined financial statements. 8
MOUNT PISGAH UNITED METHODIST CHURCH AND CERTAIN RELATED ENTITIES COMBINED STATEMENT OF CASH FLOWS YEARS ENDED JUNE 30, 2009 AND 2008 2009
2008
$ 1,101,090
$ 3,035,677
(Continued) Reconciliation of Increase in Net Assets to Net Cash Provided (Required) by Operating Activities Increase in Net Assets Adjustments to Reconcile Increase in Net Assets to Net Cash Provided (Required) by Operating Activities: Contributions restricted for capital improvements and debt service Depreciation and amortization (Increase) decrease in accounts receivable (Increase) decrease in due from related entity (Increase) decrease in other current assets Decrease in accounts payable Increase (decrease) in accrued liabilities Increase (decrease) in agency funds Total adjustments Net Cash Provided (Required) by Operating Activities
(1,802,779) 1,179,827 (32,268) 6,999 (409) (23,275) 2,786 (96,887) (766,006) $
335,084
(4,185,065) 1,224,579 116,509 (9,625) 10,723 (56,621) (64,354) 19,054 (2,944,800) $
90,877
The accompanying notes are an integral part of these combined financial statements. 9
MOUNT PISGAH UNITED METHODIST CHURCH AND CERTAIN RELATED ENTITIES NOTES TO COMBINED FINANCIAL STATEMENTS JUNE 30, 2009 AND 2008 NOTE 1 – ORGANIZATIONAL MATTERS AND BASIS OF PRESENTATION Nature of Organization and Principles of Consolidation Mount Pisgah United Methodist Church (the Church) is a not-for-profit Georgia corporation. The Church, as a church organization, is exempt from federal and state income taxes under Internal Revenue Code Section 501(c)(3). During the years ended June 30, 2009 and 2008, the Church operated a counseling center and a women’s center in addition to its other activities. During the year ended June 30, 2005 the Church created New Hope Mission, Inc. (NH), a new entity for the purpose of serving the homeless in the Atlanta area and helping them experience a relationship with Jesus Christ. This ministry provides religious worship, hot meals, showers and some transitional assistance for the homeless. Because the members of the Church’s board control the activities of NH, the financial results of this entity are consolidated with the Church’s for the years ended June 30, 2009 and 2008. Effective July 1, 2009, the Church closed NH and combined the remaining net assets with those of the Church. For the years ended June 30, 2009 and 2008, all intercompany balances and transactions have been eliminated in the combined financial statements which consist of the following notfor-profit Georgia corporations:
The Summit Counseling Center, Inc. A Beacon of Hope Women’s Center, Inc. New Hope Mission, Inc. (Consolidated with the Church)
The Church has obtained not-for-profit tax exempt status under Section 501(c)(3) from the Internal Revenue Service for these separate entities. NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
10
MOUNT PISGAH UNITED METHODIST CHURCH AND CERTAIN RELATED ENTITIES NOTES TO COMBINED FINANCIAL STATEMENTS JUNE 30, 2009 AND 2008 NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Revenue Recognition Pledges are not recognized in the combined financial statements until the cash or other assets are received (See Note 3). The Church records contributions received as unrestricted, temporarily restricted or permanently restricted net assets, depending on the existence and/or nature of any donor restrictions. Counseling center fees are due after services are performed and revenue is recognized when the fees are received. Counseling center fees earned, but uncollected at June 30, 2009 and 2008 were not significant. Contributions The Church reports contributions of cash and other assets as restricted support if they are received with donor stipulations that limit the use of the donated assets for a future accounting period or for a special purpose. When a donor restriction expires, that is, when a stipulated time restriction ends or purpose of restriction is accomplished, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the combined statement of activities and net assets as net assets released from restrictions. When temporarily restricted contributions are received, and the restrictions met are in the same accounting period, they are reported as temporarily restricted support and net assets released from restrictions. Permanently restricted net assets are those gifts that the donor has limited in perpetuity. The Church reports gifts of land, buildings and equipment, or the right to use those assets at estimated fair value as unrestricted support unless explicit donor stipulations specify how the donated assets must be used. Gifts of long-lived assets with explicit restrictions specify how the assets are to be used and gifts of cash or other assets that must be used to acquire longlived assets are reported as restricted support. Noncash Contributions The Church reports contributions of services that require specialized skills as revenue when the services have been rendered. There were no significant contributions of specialized services in the years ended June 30, 2009 and 2008.
11
MOUNT PISGAH UNITED METHODIST CHURCH AND CERTAIN RELATED ENTITIES NOTES TO COMBINED FINANCIAL STATEMENTS JUNE 30, 2009 AND 2008 NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Cash and Cash Equivalents Cash and cash equivalents include cash and highly liquid investments that are readily convertible into cash and have a maturity of ninety days or less from the date of purchase. At times, cash and cash equivalent balances exceed federally insured amounts. The Church believes it reduces risks associated with the balances in excess of federally insured limits by depositing cash and investing in cash equivalents with major financial institutions with sound financial standing. As a result of liquidity issues experienced in the global credit and capital markets, it is at least reasonably possible that changes in risks in the near term could occur which in turn could materially affect the amounts reported in the accompanying combined financial statements. Program Expenses Program expenses are direct expenses of ministry, counseling and women’s center. Apportionment expenses are the Church’s share of Conference expenses. Reclassifications Certain amounts in the June 30, 2008 financial statements have been reclassified to conform to the 2009 presentation. Subsequent Events Management has evaluated subsequent events through November 20, 2009, the date which the financial statements were available to be issued. NOTE 3 – PLEDGES OUTSTANDING AND INTENTIONS TO GIVE The Church conducts an annual campaign for pledges for the operating budget to be paid from July to June. Pledges are recognized as tithes and offerings at the time they are collected. The outstanding operating fund pledges from the annual pledge campaign were substantially all collected at June 30, 2009 and 2008. Pledges paid before the fiscal year begins are recorded as temporarily restricted.
12
MOUNT PISGAH UNITED METHODIST CHURCH AND CERTAIN RELATED ENTITIES NOTES TO COMBINED FINANCIAL STATEMENTS JUNE 30, 2009 AND 2008 NOTE 3 – PLEDGES OUTSTANDING AND INTENTIONS TO GIVE (Continued) During 2004 the Church initiated a capital campaign with contributions designated primarily for debt service on the new Church facilities, support of student ministries and global missions and the Beacon of Hope. Contributions received for the 2004 capital campaign were recognized at the time they were collected. Substantially all remaining outstanding capital campaign pledges were collected during 2008 and the Church does not expect to collect additional pledges for this campaign. During 2008, the Church initiated a new capital campaign, Live the Vision, with contributions designated primarily for debt service, construction of a student building, support of global missions and compassion ministries. Contributions received for the Live the Vision campaign are recognized at the time they are collected. Outstanding Live the Vision campaign pledges, net of an estimated shrinkage adjustment, are expected to be approximately $3,000,000 at June 30, 2009, and are scheduled to be collected over the next two years. NOTE 4 – LAND, BUILDINGS AND EQUIPMENT Acquisitions of land, buildings and equipment in excess of $1,500 are capitalized, except for leasehold improvements which must exceed $10,000. The land and building additions prior to 1991 are recorded based on an appraisal of the fair market values in 1992. Land and building additions acquired subsequent to 1991 are recorded at cost and include interest on funds borrowed to finance construction of the new facilities. The furniture and equipment purchased prior to 1991 are not valued in the combined financial statements. Subsequent purchases of furniture and equipment are recorded at cost. The building complex, furniture and equipment and vehicles are depreciated using the straight-line method over the estimated useful life of the asset: forty years for buildings, seven years for furniture and equipment, five years for vehicles and three years for computers. No depreciation was provided prior to 1991 when the provisions of Financial Accounting Standards No. 93 were adopted. Depreciation and amortization was $1,172,523 and $1,218,985 for the years ended June 30, 2009 and 2008, respectively. NOTE 5 – FINANCING AGREEMENTS During 2007, outstanding borrowings under the Church’s line of credit and term note under the Church’s debt agreements in effect at June 30, 2006 were refinanced with the proceeds from a $23,700,000 financing arrangement with a new bank that consisted of two term notes and a line of credit.
13
MOUNT PISGAH UNITED METHODIST CHURCH AND CERTAIN RELATED ENTITIES NOTES TO COMBINED FINANCIAL STATEMENTS JUNE 30, 2009 AND 2008 NOTE 5 – FINANCING AGREEMENTS (Continued) The first note, with an original principal balance of $10,500,000 and maturity date of September 2009 was payable in monthly principal installments of $21,875 plus interest at LIBOR plus 1%. The note was refinanced during April 2009 and the Church received an additional $2,000,000 to finance the construction of a student building. The total refinanced principal balance of $8,375,000 is payable in 34 monthly installments of approximately $50,000 including interest at LIBOR plus 2.25% (an effective rate of 2.57% at June 30, 2009), until March 2013, at which time all unpaid principal and interest will be due in full. The second note, with an original principal balance of $10,200,000, is payable in 120 monthly installments of approximately $75,000 including principal and interest at a fixed rate of 6.27%, until November 2016, at which time all unpaid principal and interest will be due in full. The line of credit was renegotiated with the refinancing of the first note and has maximum available borrowings of $2,000,000 with interest at LIBOR plus 2.25%. The line is payable as to interest only until May 2010, at which time, all outstanding principal and interest is due in full. The financing agreement contains certain restrictive covenants with which the Church was in compliance at June 30, 2009. The outstanding borrowing arrangements described above for the Church are secured by certain property and equipment. Long-term debt outstanding at June 30, 2009 and 2008 consists of the following: 2008
2009 Church term loans payable to a financial institution Term note 1 Term note 2 Church line of credit payable to a financial institution Other Less: revolving line of credit Less: current portion of long-term debt Long-term debt
14
$
8,350,856 9,482,598 744,985 18,578,439 744,985 657,384 $ 17,176,070
$
7,507,454 9,774,127 816,858 2,494 18,100,933 816,858 636,759 $ 16,647,316
MOUNT PISGAH UNITED METHODIST CHURCH AND CERTAIN RELATED ENTITIES NOTES TO COMBINED FINANCIAL STATEMENTS JUNE 30, 2009 AND 2008 NOTE 5 – FINANCING AGREEMENTS (Continued) Principal maturities of long-term debt for years ending June 30 are as follows: 2010 2011 2012 2013 2014 Thereafter
$
657,384 638,777 590,675 7,863,076 400,629 7,682,913 $ 17,833,454
NOTE 6 – DEBT GUARANTEE The Church guarantees a letter of credit for bonds issued to the Mount Pisgah Christian School (the School) in an amount not to exceed $11,000,000. During 2009, the Development Authority of Fulton County, the bond holder, delivered notice of their option to tender the bonds as is provided for in the agreement. The trustee paid the Development Authority the entire purchase price for the bonds, including outstanding interest, from their letter of credit with the School. The School’s financial institution had agreed to hold the debt for the remaining 30 months under the agreement until March, 2011 at the same principal payments and at an effective interest rate the greater of prime plus 1% or 5.1%. Subsequent to June 30, 2009, the financial institution agreed to purchase the bonds. Also, the School and the financial institution amended and restated their loan agreement, whereby the payment terms were revised and extended through March, 2026. NOTE 7 – OTHER RELATED PARTY TRANSACTIONS The Church participates in a space and operating expense agreement with other related entities. During 2008, the School began paying some of the operating expenses previously paid by the Church and allocated to the School under the expense agreement. Accordingly, the reimbursements to the Church for the internal allocations were reduced. The Church received $558,860 and $523,774 during the years ended June 30, 2009 and 2008, respectively, from the School for expenses allocated under the expense agreement.
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MOUNT PISGAH UNITED METHODIST CHURCH AND CERTAIN RELATED ENTITIES NOTES TO COMBINED FINANCIAL STATEMENTS JUNE 30, 2009 AND 2008 NOTE 8 – RESTRICTED NET ASSETS Temporarily restricted net assets at June 30, 2009 and 2008 are available for the following purposes: 2008
2009 Capital fund expenditures Other designated funds
$ $
3,061,399 517,401 3,578,800
$ $
3,158,022 390,228 3,548,250
Permanently restricted net assets at June 30, 2009 and 2008 consist of foundation funds for the Beacon of Hope and Summit Counseling Center as follows: 2009 Beacon of Hope Summit Counseling Center
$ $
23,335 52,305 75,640
2008 $ $
22,868 50,320 73,188
NOTE 9 – NET ASSETS RELEASED FROM RESTRICTIONS Net assets released from restrictions for the years ended June 30, 2009 and 2008 are as follows: 2009 Designated expenditures Capital fund expenditures and debt service
$ $
407,514 2,123,638 2,531,152
2008 $ $
707,980 3,655,208 4,363,188
NOTE 10 – EMPLOYEE BENEFIT PLANS The Church and its related entities provide a discretionary retirement program to its employees by utilization of an Internal Revenue Code Section 403(b) plan. The Church and its related entities match the employees’ contributions to a maximum of 4% of gross wages. Employees become eligible for this program after one year of employment and with a minimum of 1,000 hours of service. The Church contributed and expensed $95,495 and $95,967 to this program for the years ended June 30, 2009 and 2008.
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Making Disciples of Jesus Christ Here, There and Everywhere
O LORD Almighty, blessed is the man
who trusts in you. Psalm 32:10
9820 Nesbit Ferry Road Johns Creek, Georgia 30022 678-336-3000 www.mountpisgah.org