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Contents Introduction.......................................................................................4 A Message from Pastor Steve............................................................6 FamilyLife..........................................................................................8 Children Students College Adult CommunityLife................................................................................16 Global Outreach Local Outreach WorkLife..........................................................................................20 Caring Ministry................................................................................24 Music and Worship.........................................................................28 Hispanic Ministry............................................................................30 Ministry Partners A Beacon of Hope.........................................................................32 The Summit Counseling Center...................................................34 Auditors Report...............................................................................36
Introduction In a speech given at the National Prayer Breakfast in Washington DC on February 3, 1994, Mother Teresa recounted the story of a woman she had brought in from the streets of Calcutta. The woman was in very poor health, and all Mother Teresa could do for her was to place her in a bed and sit with her. The woman was very grateful for this love shown her. “There was such a beautiful smile on her face,” Mother Teresa said. But the woman’s illness proved too strong. She could only take hold of Mother Teresa’s hand and say, “Thank you,” before she died. “I could not help but examine my conscience before her,” said Mother Teresa. “And I asked, ‘What would I say if I were in her place?’ And my answer was very simple. I would have tried Matthew 25:40 to draw a little attention to myself. I would have said, ‘I am hungry, I am dying, I am cold, I am in pain.’ But she gave me much more. She gave me her grateful love. And she died with a smile on her face.”
...Whatever you did for one of the least of these...you did for me.
This woman, whose painful existence on the streets of Calcutta we can barely imagine, gathered the very last of what she had of her life and offered it in the form of loving gratitude to Mother Teresa as she drew her dying breath.
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At Mount Pisgah, we have a saying: “Love God – Love People.” And our task is to hold this focus, not just at church, not just on Sundays, but as often as possible, in all areas of our lives. The opportunities to share this love, to make disciples of Jesus here, there, and everywhere, are around us all the time. We can find them in three circles of influence: FamilyLife, WorkLife, and CommunityLife. When Jesus said, Whatever you did for one of the least of these brothers of mine, you did for me, He gave us the chance to see that no one is undeserving of God’s love—and no time or place is without an occasion to be the feet and hands of Jesus. A kind word to a co-worker having a bad day, a warm greeting to a neighborhood acquaintance, extra time to comfort your worried child: these opportunities expand well beyond charity. John Wesley, founder of the Methodist Church, considered visiting the poor as indispensable to Christian discipleship as acts of piety and worship. Authentic community with the impoverished— whether spiritually, affectionately, financially, or emotionally impoverished—allows us to see that God has chosen “the least of these” as His special means of grace. This past year at Mount Pisgah has brought us many and wondrous chances to experience this grace. As we have endeavored to minister in our families, workplaces, and communities, we’ve experienced God’s love working through us. We’ve seen the beautiful smiles of those we’ve loved in God’s name, and we’ve known the peace we share by lightening another’s burden.
In closing her National Prayer Breakfast speech, Mother Teresa talked about this same peace. She reminded those gathered that Jesus came to bring the good news to the poor. She said, “He told us what that good news is when He said, My peace I leave with you, My peace I give unto you.
He came not to give the peace of the world but the peace that only comes from resting in Him.� As we look forward to 2010-2011, we eagerly look for more opportunities to do good and offer more in the name of Jesus...for the least of these.
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A M E S S A G E F R O M PA S T O R S T E V E
The Best Church For the Community! My, what we have seen and experienced this year through God’s instrument of the Mount Pisgah family of ministries! Despite the worst economic circumstances in several generations and an ever-changing culture, we have experienced our most effective year in memory in terms of making disciples of Jesus Christ—and equipping them to make more disciples of Jesus. What began with a vision just three years ago to love God and love people evolved into a strategic plan to enhance both efficiency and effectiveness. This plan is now beginning to bear much fruit in terms of mission and outreach to bring the help and hope of Christ to those both inside and outside the campuses of Mount Pisgah. 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 105 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.
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We were blessed this year to award 63 third graders a Bible of their own to help them grow and understand their value to God and others. Scores of adults have been challenged to rise to a new threshold of being disciples of Jesus Christ, and they are making disciples through Sunday school classes and groups. We commissioned and deployed over 300 global servants on mission trips around the world from our church and school. We have also reached out to our community through Vacation Bible School, Habitat for Humanity, North Fulton Community Charities, and many other initiatives, deploying thousands of servantleaders of all ages to touch thousands of 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 the three circles of discipleship: family, community, and work. We’re helping them to live out their faith in Christ in both practical and contagious ways. God’s work has proved to be recession-proof again this year. The Well continued to bring college-aged young adults into the church. Mount Pisgah @ Work network of ministries now offers electronic networking and daily devotionals. “In God We Trust” was established to fulfill the need of the giver to give. The Mount Pisgah Foundation now serves and empowers people to build God’s Kingdom in new ways, giving nonliquid assets to advance the Gospel of Christ in word
and deed. We all grew to better understand and live what it means to be disciples of Jesus Christ though the renovation of our staff and structure. Finally, we achieved a sustained and viable financial position. We have 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. Once again in the spirit of biblical stewardship, we have spent less money than we have taken in and have not borrowed additional monies to operate the church. We have also continued to move towards our goal of being debt-free by reducing our overall indebtedness by almost $8 million in just the past three years! 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 to really put feet to our faith in Christ and move towards being the very best church for the community. 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 to thousands help, hope, and a place to call home!
Yours in Christ,
Pastor Steve
The Three Circles of Discipleship
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FamilyLife Overview
When you think of the word “family� there are probably several images that come to your mind. Chances are your mind races to those that share your name, share your house, and know you better than anyone else in the world.
T O TA L M A R R I A G E
Family is one of God’s most important gifts, and the responsibility that comes with modeling and guiding our families into a deep and relevant relationship with Christ is our supreme purpose. Mount Pisgah made a commitment to families in the 2009/2010 ministry year by launching FamilyLife. This commitment to reach, train, equip, and deploy the family in the life of discipleship is one of the most exciting opportunities our church has experienced.
PA R E N T F U E L
Nursery The nursery ministry provided parents with the assurance that their babies and children would be nurtured in the care of loving Christian adults through the six different weekly sessions as well as through our support for many other special events.
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FamilyLife
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PA R E N T F U E L
3:16 K-5 small-group gathering
Children’s Ministry The Children’s Ministry continued to lead children and equip parents to teach their children to love God – love people and to grow in a personal relationship with Jesus Christ. We were commissioned to have families on one campus by fall of 2010, and we were able to accomplish this by offering new programs. Children’s Area Renovation With a new theme and look the children’s area was transformed into the Back Lot, with Studio A and Studio B. This created great excitement, and the children and their parents are now enjoying the new space. More than 25 volunteers gave their time and talents to renovate the children’s area.
Newly renovated children’s area 10
The first ever S.C.R.E.A.M. (Students Celebrating and Rejoicing Enthusiastically in the Almighty Messiah) retreat was offered in March. One hundred twenty-nine children and leaders spent the weekend together at the Sharp Top Cove retreat center, and 42 children made the decision to commit their lives to Christ.
3:16 has replaced
FamilyLife 3:16 replaced Sunday school for children K-5th grade and takes place at 9:30. There are 32 committed small-group leaders, and over 145 children participate.
Broadcast
Broadcast This new children’s worship program for K-5th grade brought over 165 children to worship. Volunteers build a new set and stage.
Family Missions Over 200 people partnered with CURE Childhood Cancer to pray for kids with cancer. They also made over 150 care boxes and purchased gas cards for these children’s families. Vacation Bible School VBS is one of our largest outreaches into the commmunity. We changed the VBS start time to 12:30pm to accommodate kids who are on swim teams. Over 500 participated in VBS and 30 accepted Jesus Christ as their Savior that week.
Broadcast – children’s worship K-5
Wednesday Night Live K – 5th grade children are invited for skits, music, and games that convey lifeapplication messages. This year has seen much successful outreach to the community.
3:16 small-group learning environment where kids and adults grow in their faith 11
FamilyLife StudentLife Ministry The StudentLife Ministry confirmed 86 young people in November and experienced one of its most meaningful years of ministry. We began the school year with a completely new staff supported by Mark Danzey and Susan Fann, who transitioned into FamilyLife. The high school students participated in several exciting programs throughout the year including Glow (a missions campout), the fall rafting trip, and a ski trip that actually included snow.
High school students at the Mini-Stonehenge on the Mission Road Trip
T O TA L M A R R I A G E
High School Leadership Team In August 2009 we began an initiative that enabled students to take more of an ownership role in ministry. The High School Leadership Team includes 35 high school students and representatives from all four classes – freshman through senior. This year, these students led various aspects of the ministry each week including serving in the worship band, tech ministry, and Main Event and by leading the PA R E N T F U E L middle school small groups. Mission Road Trip The Mission Road Trip was perhaps the biggest highlight of the year. Twentyfour students and four adults spent nine days on the road going to Chattanooga, Nashville, Indianapolis, Chicago, and Louisville. Staying in churches in each of the cities, the students had plenty of time to bond together when they were not serving in the local ministries. However, growth was not limited to time in the cities. The traveling time between cities further deepened relationships between the students as they shared conversation about faith and personal struggles.
StudentLife also hosted Confirmation and took ownership of other areas of the ministry, including t-shirt design, drama, and video. Both spring-trip t-shirts were designed by high school seniors and these shirts proved to be the most popular of the year. For the Elevation Worship series we wrote and performed a drama component to reinforce each week’s biblical message. By taking ownership of more areas of our ministry, students were able to grow in their faith and leadership skills while impacting other students in a positive way.
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Middle school students take time to worship at Middle School Mission Camp
FamilyLife Confirmation The middle school students also had a great year, starting with confirmation in the fall. Over the course of eight weeks students learned about making their faith their own; and in the end 23 students came to be baptized and 93 students joined the Church by being confirmed. The success of confirmation belonged to the 20 volunteer teachers and parents who allowed God to use them for His purpose of making disciples.
College Ministry The college-age ministry, known as “The Well,� entered its second year of ministry in 2009-10. Again this year, we invited 19-25 year-olds to Mount Pisgah to hear the good news of Christ, experience authentic community, and meet together for worship and teaching. After topping 50 participants last year, this year brought over 100 young people, well exceeding our expectations.
Middle School Lock-In StudentLife hosted a middle school lock-in that previously turned out 40 students, 7 high school leaders, and 3 adult leaders. This year over 90 students, 10 high school leaders, and 7 adult leaders participated, making the lock-in the largest outreach event of the year. Many of the core students took the opportunity to invite friends from outside of church to participate. Several of these students began attending weekly as a result and have become a part of the church. 930* Under the direction of three adult volunteers and the student leadership team 930* Middle School grew to an all-time high of 59 students. 930* High School developed a core group of students that StudentLife looks to increase even more in the coming year.
The ground work has been laid to give us a real platform of ministry into the unique situation of those in the college-age range.
A student prays during Confirmation
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FamilyLife Adult Ministry Five Keys of Discipleship Of all this year’s Adult Ministry highlights perhaps the most significant achievement was development of the Five Keys of Discipleship. Mount Pisgah has long held to the biblical purpose of making disciples here, there, and everywhere. While this is nothing new, having been given to us by Christ as the Great Commission, we spent the year bringing this concept of discipleship into clearer view. Through the five different Disciple Leadership Academy sessions and several meetings of ministry leaders we believe that God has given us a vital tool for ministry in the Five Keys.
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T O TA L M A R R I A G E
We will strive in the years ahead to build on this significant work to grow in our understanding of what it means to be a 21st-century disciple, specifically, in the context of our families. Weekly Discipleship Groups Too many to name are the experiences of the Women’s Ministry, Men’s Ministry, Singles, Parenting, Marriage Enrichment, PrimeTime, and the dozens of Bible PA R E N TSchool F U E Lclasses studies, small groups, and Sunday that all met weekly this past year to share and grow in their discipleship.
FamilyLife
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CommunityLife Overview As members of the congregation, we’re sent into the community to serve those in need – in our neighborhoods, our city, our world. To make our community more loving and just we work with local charities like North Fulton Community Charities, Apartment Life, Habitat for Humanity, and many others. We also seek to be Christ’s ambassadors in the global community through our international missions. By sharing your time, efforts, and money to support these ministries, you’re doing God’s work.
Global Outreach Live the Vision For the past three years, your generous giving through Live the Vision has enabled Mount Pisgah to Love God, Love People – and Love Nations on multiple continents. We’ve equipped leaders to disciple the nations, led children to Jesus, and supported the persecuted church. These key elements of our global strategy have been undergirded by our contributions to Bible translation, water purification, and overall community health. Our dedicated, self-supporting mission teams bring a personal touch, a helping hand, and more supplies to complement your generous giving. St. Lucia Here the born-out-of-wedlock rate is over 80%, and the ministry of our four full-time abstinence education teachers in the secondary public schools has borne the fruit of hundreds of boys and girls trusting Christ for their salvation and their purity each year. In addition, our ongoing support of the Soufriere Soup Kitchen has allowed the hungry in this fishing village to receive nourishment daily, rather than just three times a week.
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Iran In the Middle East we found that Iran is a closed land with open hearts. So, we partnered with International Leadership Institute (ILI) and Elam Ministries to train leaders and provide Farsi Bibles for the Persian Church and to support those who risk their lives daily for the sake of the Gospel. Our prayers were among many that God answered as He freed Maryam and Marzieh from imprisonment and certain death in Tehran. Lebanon In the only Arab state not officially Muslim we helped a Beirut church maintain its meeting place in a strategic location, provided clean water systems, and helped start an Arablanguage outreach website. Nigeria We annually supported 11 AIDS orphans and provided 22 seminary scholarships to train pastors who are now deployed throughout Africa. Other pastors were trained in the northern area of the country; and the Nigerian Pidgin Bible translation work began so that over a million people will have the Scriptures in their native tongue. Kenya The children of Tumaini now eat their meals in a dining hall provided by you, rather than off the ground. India The southern state of Kerala now has 10 newly-trained church planters to help lead revival among people with direct ancestral links to those evangelized by the Apostle Thomas. The children reached through our partnership with Mission India often become the chief evangelists in their villages.
Equipping leaders to disciple the nations
Leading children to Jesus in India Nepal Tens of thousands of oral learners now listen to community health lessons, and Bible studies recorded on the solar-powered, digitalaudio players provided by Mount Pisgah in partnership with T4-Global. As a result, any lives have been saved from disease and sin. Your generosity also salaried four itinerant mountain goat pastors who trek the rural Himalayas to oversee God’s flock. Russia Your Live the Vision gifts helped sustain the local churches in Voronezh and Otradny. The Komi people of Siberia dedicated the Komi New Testament in August 2008 and in May 2010 welcomed home a newly-trained pastor. Our support of the Baltic Methodist Seminary (BMS) in Tallin, Estonia, helped make those things possible. The 17 new graduates of BMS will also serve in Latvia, Lithuania, and the Ukraine. Latin America Your Live the Vision gifts provided for a variety of building projects in Costa Rica and for the ongoing training of pastors at the Methodist Seminary in Barquisemeto, Venezuela, where Pastora Yolanda was part of the seminary’s first graduating class in August 2008.
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CommunityLife Local Outreach Local Outreach endeavors to carry the message and mission of Jesus to those who are hurting in our community. As we serve others through acts of love and compassion we build God’s Kingdom and nurture disciples who understand the charge to take Jesus beyond the church walls and into our community. God’s great commandment to love others as He loves us forms the basis for serving. As we come to personally know the God who loved us enough to give us His only Son, we respond with grateful hearts and a willingness to put aside our own needs for the good of others. Mount Pisgah is blessed to have so many people who give sacrificially of their time and resources in order to help those who face challenges and difficulties. Even in the midst of very difficult economic circumstances our congregation continues to step out in faith and care about those in need. Serving chili and sandwiches at Trinity Soup Kitchen on Palm Sunday, showing up at the USO on a Saturday morning with barbeque sandwiches, serving at a Kid’s Club event at a local apartment community, wielding a hammer for Habitat for Humanity, delivering bread or groceries to North Fulton Community Charities, crocheting a blanket for a foster child, singing hymns with residents in an assisted living facility, playing Apples to Apples with a prison inmate: these are just some of the many ways that Mount Pisgah volunteers are a light in the world witnessing to the power of the One in whose name we serve.
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Atlanta Transition Center The tattooed young man sat across the table from the teenagers. If you didn’t know that this was a State correctional facility the scene would have looked like friends playing games on any Saturday evening. A group of adults and teens from Mount Pisgah had made the trip down to the ATC on this particular evening to bring God’s love to those in prison there. After an amazing time of worship together they played games, ate cupcakes, and the Mount Pisgah folks distributed toiletries they brought for the inmates. Later in the evening, sitting in that room playing games with the volunteers, the young man commented on how he felt human again. “I felt like a normal person, not someone in prison. They treated me just like any other person.” Of course we did. We’re all the same in God’s eyes and we all need to know we matter to Him and to one another. Habitat for Humanity Mary Ann Groves, a native of Trinidad, stood in the middle of her once white living room and looked at the mud and slime that covered everything in the aftermath of Hurricane Katrina. She realized in that moment that she had to leave New Orleans. She and her son made their way to Atlanta to stay with her daughter. At her daughter’s insistence Mary Ann made the phone call that led to her application with Habitat for Humanity; and in Fall 2009 Mary Ann became the recipient of the 18th house that Mount Pisgah has sponsored with Habitat for Humanity. Today, Mary Ann lives in her Habitat Home in Centennial Village, along with her mother and son. “Who would have thought this little girl from the Caribbean would have her very own home,” said a grateful Mary Ann. We’re proud
CommunityLife From orphanages to nursing homes to the VA hospital, these blankets bring hope and the warmth of God’s love. Linda’s sweet friends from the Blanket Ministry wrapped Richard in God’s love when they gave him a special blue blanket. In Linda’s own words to her sisters in the Blanket Ministry: “I want to tell you that the blue blanket that the ministry gave to us went to the hospital with us; I held it during surgery, and it has been on his lap every day since. Yesterday in the middle of the night I felt someone get in bed with me; and when I woke up it was my daughter Emily (22 years old), and she was sleeping and holding the blanket. It has not left her side. I guess what I am saying is that I never realized that all of the blankets we have made in the past 11 years have such loving power and comfort. So girls please keep knitting, crocheting, sewing, and creating because your efforts are not lost.”
Katrina relief in Waveland, MS of our association with Habitat for HumanityNorth Central Georgia. It allows us the privilege of helping provide homes for hard-working, deserving families like Mary Ann’s. We are thankful for the generosity of Mount Pisgah’s people who make this possible. Blanket Ministry Linda’s husband died from a brain tumor and left behind his wife of many years and three beautiful children. During his illness God gave their family the gift of many special and tender moments. For years Linda has been a member of Mount Pisgah’s Blanket Ministry, a caring group that meets monthly to quilt, sew, crochet, and knit blankets that provide comfort to people here, there, and everywhere.
A veteran receives a handmade blanket 19
WorkLife WorkLife
No matter what or where our work is there’s an opportunity to share God’s love. Being alert to the needs of others, the workplace abounds with opportunities to serve and to minister. Supporting the activities of our WorkLife ministries by offering your time or financial support is another way to be the hands and feet of Jesus.
Generous Living In this ministry we seek to equip our congregation to experience the joy of generosity in this life and the eternal rewards that faithful stewardship of time, talent, and treasure will bring. Through prayer, budget counseling, and financial management education we serve the biblical mandate to grow in the grace of generous giving and living.
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Building a foundation for the future
Mount Pisgah Foundation Established in 2009 the Mount Pisgah Foundation invites, equips, and deploys disciples with financial margin to fulfill God’s calling in their lives through smart Christian giving. The foundation allows members to provide future support for a variety of ministries at Mount Pisgah, including Mount Pisgah UMC, Mount Pisgah Christian School, The Summit Counseling Center, and A Beacon of Hope. This year the foundation sponsored executive briefings with respected authorities, including Hugh O. McClellan (Founder of the McClellan Foundation), David Wills (President of the National Christian Foundation), Alan Gotthardt (President of Brightworth Wealth Advisors), and Fritz Meyer (Senior Market Strategist at Invesco). Mount Pisgah Foundation honors the generous 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. To date just under $1 million in non-liquid assets have been donated or pledged.
WorkLife The Big Move – Giving God First Place. The Big Move 2010-2011 annual campaign for mission and ministry was a great success, especially in the context of a severe nationwide recession.
Together, we exceeded funds pledged from the previous annual campaign year and surpassed the campaign goal of 600 households participating with more than 100 families (a 20% increase) now participating in pledged giving. Generous Giving Two dozen Mount Pisgah members participated in Generous Giving Conferences in Austin and Orlando. In addition, Mount Pisgah was chosen to be one of only four churches to pilot and provide direction to Generous Giving’s “Beyond Wealth: Experiencing the Joy of Generosity” five-week experience. Live the Vision The three-year celebration of Live the Vision saw over $8 million used to reduce the mortgage and significant donations to MurphyHarpst, North Fulton Community Charities, global outreach, and the new state-of-the-art StudentLife home – The Underground – on North Campus.
Financial Education The following classes were offered this year: Crown Financial Ministries Financial Study, Beyond Wealth, and Dave Ramsey’s Financial Peace University. A Story of Generous Living During The Big Move annual campaign David and Michelle prayed about how much the Lord would have them give this year. They stepped out on faith and substantially increased their pledged amount. Within a few weeks David received word from his employer that he had received a pay raise. The increase was to the exact dollar that they had increased their giving level. A few months later David received an offer to work with a Christian friend doing work he dearly loves close to his house. The offer included a substantial raise and annual bonus. There are two parts to this story, and to our personal stories as well. There is our part, and there is God’s part. We are called to trust God even in tough times and to step out in faith and give back our very best to God. God’s part is to faithfully provide for us. And as Hebrews 11:6 states, He rewards those who diligently seek Him. This often happens in this life, but always in the life to come.
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Worklife Worklife
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it forward to help their fellow comrades in arms. They do this through frontline ministries like Get2Work! and Christ Centered Career Groups (C3G). We also minister through Journey to Sunrise, LinkedIn, Maestro, The Summit Counseling Center, and WorkLife University.
Connect Through this ministry we encourage congregation members to get “plugged in” to authentic disciple life through the community, service, and stewardship activities at Mount Pisgah. We also offer information, instruction, and activities for bringing new members into the Mount Pisgah fold by providing new member information packets and hosting new member interviews, Connect luncheons, and Pathways classes. We track activity and follow up to ensure new members feel welcome. Mount Pisgah @ Work We are here to empower you to fulfill your mission in the workplace! Whether your career is on track or currently on hold, we are here to help you experience joy and fulfillment as you serve God in your career. God is at work! Through this present economic crisis He has provided the church with perhaps the greatest opportunity of this decade to be the hands and feet of Christ to our workforce and in so doing earn the right to speak truth and be heard regarding the deepest issues of life.
Table leader Bob Collins helps a group of jobseekers at a Get2Work! Roundtable Event (170 jobseekers attended this event in July)
With each passing week we witness first hand heroic stories of professionals in career transition paying
Richard Morgan reviews a jobseeker’s resumé 22
Worklife A Mount Pisgah @ Work Story While most people would focus exclusively on finding work for themselves, Rey and Richard do not. As the lay leader for Get2Work!, and in career transition himself, Rey did not think merely about his own self interests, but assisted Richard with his job search and helped him rekindle his faith and
relationship in Christ. Today both Rey and Richard represent the heart and soul of Get2Work!. Richard also provides leadership to the C3G group that meets here at Mount Pisgah sharing hope, faith, and compassion with fellow sojourners looking for employment in the consumer packaged goods industry.
The North Campus Gathering Area provides a world-class venue for Get2Work! 23
Caring Ministry Caring Ministry seeks to provide Christ-centered help, hope, and healing to those who find themselves in difficult and challenging life circumstances. Caring for persons in their time of greatest need is a precious gift God has entrusted to us. As we work to meet the needs of those who are hurting and spiritually broken, we trust our compassionate Lord Jesus to equip us. In so doing, we offer a cup of cold water in His name.
In 2009-2010, we continue to strive to provide a place of grace, compassion, and hope to those going through trying times. Celebrate Recovery This ministry to celebrate God’s healing power in our lives uses eight biblicallybased recovery principles and a Christ-centered twelve-step program. In 2009-2010 three men’s step studies and two women’s steps studies were completed.
An example of this ministry is a 48-year-old man who had struggled with drug and alcohol addiction since he was a teenager. Through active participation in Celebrate Recovery he became clean and sober and is now in his 10th month at Waypoint Center in Dahlonega, a Christ-centered residential treatment center for men. As a result of his healing and transformation through Christ he is now beginning to mentor other men in recovery.
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CR 101 God is continuing to grow Celebrate Recovery through His grace. We have now developed CR 101, an overview of Celebrate Recovery for firsttime visitors to the group. The program explains each share group we offer so new participants can make informed choices for which gender-based share group best meets their needs. Mary Hall Freedom Center Celebrate Recovery continued to work with the women of Mary Hall Freedom Center, a transitional housing unit and recovery ministry for single women in Sandy Springs. Each Tuesday Mary Hall brings women to the regular Tuesday Celebrate Recovery meeting. It‘s amazing to see the transfor-
Caring Ministry mation God has created in these women’s lives as they participate in worship, small groups, and step studies. One of the women from Mary Hall gave a particularly moving testimony of how Celebrate Recovery had helped her maintain sobriety and regain custody of her daughter. That same evening, she received her five-year chip for sobriety! Through their ministry with the women at the Mary Hall Freedom Center two of our step study leaders felt a calling to go to the center more regularly. Now they conduct a step study every Friday morning. Where over 40 women participate.
minister to them during times of illness. The impact this ministry has on people during times of healing or challenge is amazing. They write how much they have felt the love of Jesus given by these volunteers that so lovingly deliver meals to them even when they don’t know anything about them. The responses received from the volunteers about how this ministry fulfills a desire to love on people is such a huge encouragement. It proves to be a ministry that fulfills both in the giving and in the receiving.
Divorce Care With this program the Caring Ministry offers help, hope, and healing to those struggling with divorce. This 2009–2010 class began on August 25 with seven participants and for the first time since Divorce Care began at Mount Pisgah more men than women participated. We look forward to what God has in store for us in 2010 -2011 as we continue to be a place of grace, hope, and compassion. Loving Meals More than 350 meals were delivered to Mount Pisgah members and hurting people in our community that don’t have a church home to
Prayer Ministry The intercessory prayer team prays for several prayer requests received daily. They do so with love, confidentiality, and faith. Their service is given to many faces they will never see. Their faith is displayed in prayers for many situations we will never fully know the outcome. The First Beginnings Prayer Ministry continues to be led by Ms. Phyllis Fortune and her prayer team, who lift up babies before the Lord daily.
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Caring Ministry Stephen Ministry Seventy-seven people received the benefits of a Stephen Minister this past year. This is such a caring group of people that prove themselves to be very loud in such a very quiet ministry. They cannot say anything about what they do, yet they minister with such love, such compassion, and such huge hearts! Care-receivers are encouraged and given love and direction for their issues. We are such a close family, and the monthly meetings are great reunions. Healing is a Choice Established in 2008-2009 this ministry continued to be a healing conduit for hurting lives. We had two classes with 15 lives given hope and help. We all need to heal from various pains, and this course gives us the opportunity to choose God’s healing. The group also offers support for each other as we journey through these challenges. It’s been a great addition both to the congregation and to the community. We are an official Healing is a Choice church so we receive some people into these groups from the HIAC website.
GriefShare By offering healing as people grieved the loss of loved ones we touched the lives of 20 people through this ministry last year. Through a pure and encouraging message, GriefShare is consistently instrumental in helping survivors journey through the difficult emotions and various frustrations surrounding the death of a loved one. Hospital visits and meeting with people to talk about challenges in life continue to be the very exciting privilege of Caring Ministry staff. Congregational Care 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.
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Music Music and Worship
Choir The overall morale and dedication to the mission continued to be strong in the choir. Enrollment fluctuated between 150 and 160, and care group leaders did a good job of addressing needs and ministering effectively to each member. The level of worship increased again as people grew in their understanding that we are a worship-leading body and not a group of performers. We are making disciples! Orchestra Geary Newman continued to build our orchestra ministry in attendance, morale, quality, and ministry focus. In 2009, for the first time, we had 30 volunteer players on a Sunday morning–
28
up from 13 when Geary took over. Tim Johnson continued to do an outstanding job of arranging and orchestrating special music, rehearsing our Praise Team, and overseeing our rhythm section. Congregation Our congregation was very supportive, and the overwhelming majority of attendees continued to embrace our “contemporary-blend” worship style. Although we periodically hear requests for a more traditional style, people do not take issue with the spirit and quality of our ministry week-in and week-out.
The North Atlanta Christmas Festival The Christmas production continues to be a tremendous draw in our community. In 2009 over 9,000 people attended at least one of the four performances. Dozens gave their lives to Christ, and we continued to see the benefit of this opportunity throughout the year as people who join the church and became involved told us their first connection with Mount Pisgah was through the NACF.
Worship Volunteers Our Sunday morning worship volunteers made a huge difference in people’s experience at Mount Pisgah. Joni Peterson and Julie Ray worked very hard to deploy people to the many different opportunities and to enlist new faces as volunteers. Over 200 people were active in this ministry.
29
Hispanic Ministry Hispanic Ministry This past year we worked every Thursday afternoon with parents from Hillside Elementary School to help them with English and computer classes. An average of 40 Hispanic parents attended with the desire to learn how to be more effective parents in helping their children with their homework. We also reached out to the Hispanic community by inviting children to participate in sports. In April 2010 we launched Mount Pisgah’s first soccer team for Hispanic children. Twenty-five kids aged 7 -11 came out to practice every Saturday morning. Our team played well and came in second place in a local tournament. Training We began a weekly computer and internet course at Mount Pisgah that offered basic Spanish instruction for those interested in ministering to those who speak Spanish.
Children doing their homework
Counseling We worked with North Fulton Community Charities to offer free counseling to individuals, couples, and families.
Families from the community come for training 30
Learning is always fun!
Sports is always a good option for children to develop social skills 31
Ministry Partners …fearfully and wonderfully made…
-Psalm 139
In 2009-2010, A Beacon of Hope continued to pursue its mission to save the lives of the unborn, promote healthy relationships, and lead people into a growing relationship with Jesus Christ. God’s love for the unborn, seen and unseen, continued with compassion through our lifeaffirming ministry. God faithfully impressed upon a number of wonderful volunteers a passion to promote healthy relationships and provide life-affirming counsel and care to people in our community dealing with an unplanned pregnancy. As the Body of Christ continued to collectively live out the unique mission to serve men and women considering abortion through a vast array of Christcentered support services, multiple miracles were birthed. Over 1,000 children have been born since the conception of A Beacon of Hope, many of whom were initially to be aborted. Our services are designed to empower further socio-economic, spiritual, emotional, mental, and financial stability while making parenting and adoption viable 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.
The majority of the mothers we serve 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. We educate them with the truth about their options for parenting or placing a child for adoption. Many individuals responded to the call to make a gift to the organization through their time, talent, or treasure. A Beacon of Hope currently has approximately 75 volunteers walking, talking, and breathing life into both centers, which leads to many men and women experiencing unplanned joy in the midst of unplanned crisis.
Highlights Medical Conversion of The College Women’s Center: March 2010 Total appointments between both locations: 1740 Total new patients between both locations: 717 Total pregnancy test verifications between both locations: 697 Total ultrasounds performed between both locations: 247 Patients stating they are a believer: 402 Patients rededicating their lives: 8 New professions of faith: 6 Positive pregnancy test verification: 482 Negative pregnancy test verification: 210 Known number of babies born under care of the center: 102 Known number of babies aborted: 19 Known number of patients that were abortion-minded and chose life through options counseling: 46 Known number of patients that have chosen to parent through options counseling: 92 Known number of patients that have chosen to place the child for adoption through options counseling: 1
Launch of the new prevention initiative: www.theswatteam.org. 32
Ministry Partners 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/Mentoring Support Groups Budgeting Domestic Violence Assistance Housing Placements Referral Recovery Placements Referral Pre-natal/Post-natal Education Programs
Core Values Compassion, Grace, and Hope Respect Autonomy: Minister, not Manipulate Sacrificial Love and Integrity Prayer and Christian Discipleship Presentation of Truth from a Medically-Accurate Perspective
Five Areas of Ministry Prevention Intervention Patient Care Evangelism Reconciliation
Our Vision Lives Saved, Touched, and Changed
33
Ministry Partners The Summit Counseling Center The Summit continued its mission to provide professional, faith-based counseling conducting 5,374 individual, marriage, and family counseling sessions. This was an 11% increase over 200809. We saw 567 new clients this past year; a 5% increase over the previous year. The Summit also provided $65,358 in pro-bono discounts and $79,282 in client-assistance funds to underwrite the fees of those who were unable to pay the full cost of counseling services.
Out in the Community Throughout the year Dr. Lenore Doster presented seminars and workshops related to her book, Rock Solid Parenting: Secrets of an Effective Parent. She spoke at several parent gatherings including those at Autry Mill Middle School in Alpharetta and the Wesleyan School in Norcross. Supporting Young People Summit staff therapist and licensed professional counselor Leigh Anne Spraetz helped 99% of the high school seniors in her individualized college counseling program achieve acceptance to their first and/or second choice of colleges. Summit Golf Classic
Summit board member Linda Cowart, and Summit Golf Classic supporter Doris Williams
Our fourth annual golf classic was sponsored by KeyWorth Bank and held at The Country Club of The South. In these difficult economic times the tournament still had a field of 97 golfers and raised $20,000 to support The Summit’s Client Assistance Fund.
Work with The Samaritan Institute The Summit completed a site visit from The Samaritan Institute accreditation team and looks forward to receiving full accreditation when the institute completes its report. The Samaritan Institute is the largest network of faithbased counseling centers in the country.
34
Ministry Partners Twice this past year, as one of 60 program participants selected from over 500 Samaritan Centers in the US and Japan, Rev. David Smith attended The Samaritan Institute’s Clergy and Congregational Care Training Programs. He served on a panel discussing the topic, “Using Technology to Promote Clergy and Congregational Care Programs.” Rev. Smith also attended the Annual Conference of The Samaritan Institute in Denver and was 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. New Program Creation Licensed clinical social worker Danielle MacMillan developed a program to provide free depression screenings to assess, refer, or treat those suffering from symptoms of depression. Rev. Ewell Hardman completed creation of the Magistrate’s Alternative Prosecution Program to treat those charged with substance abuse-related and other misdemeanor offenses. This program was created to serve Forsyth County but has been utilized by other local judicatories such as the City of Johns Creek, the City of Roswell, Fulton County, and others. This program is a partner organization with The Summit Counseling Center. Staff Updates The Summit has grown to a staff of five full-time and four part-time therapists. Dr. Lenore Doster was named clinical coordinator for The Summit Counseling Center and will be responsible for oversight of clinical policies and procedures, management of the clinical case conference, and the quality review of clinical records.
Kellie Gwaltney completed her graduate internship in professional counseling and marriage and family therapy with The Summit. Mrs. Gwaltney was The Summit’s very first clinical intern. She graduated in May from Richmont Graduate University with her Masters in Marriage and Family Therapy.
2008 - 2010 Summit board chair Michael Thompson (left) receives a Summit Award from newly elected 2010-2012 board chair Don Barden Mr. Michael Thompson completed his service as board chair of the Summit Counseling Center. We wish to express our deepest gratitude to Mr. Thompson for his able leadership in turbulent times. Mr. Don Barden was elected our new board chair, and we welcome his help in the continuing task to grow The Summit and reach more of those who need our help.
35
MOUNT PISGAH UNITED METHODIST CHURCH AND CERTAIN RELATED ENTITIES COMBINED FINANCIAL STATEMENTS YEARS ENDED JUNE 30, 2010 AND 2009 and SUPPLEMENTARY INFORMATION 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
10-17
SUPPLEMENTARY INFORMATION COMBINING STATEMENT OF FINANCIAL POSITION BY FUND – JUNE 30, 2010
19-22
COMBINING STATEMENT OF ACTIVITIES AND NET ASSETS BY FUND – YEAR ENDED JUNE 30, 2010
23-24
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, 2010 and 2009 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, 2010 and 2009, 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. Our audit was made for the purpose of forming an opinion on the basic combined financial statements taken as a whole. The supplementary information on pages 19-24 is presented for the purposes of additional analysis and is not a required part of the basic combined financial statements. Such information has been subjected to the audit procedures applied in the audit of the basic combined financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic combined financial statements taken as a whole.
October 7, 2010
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, 2010 AND 2009 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 Less accumulated depreciation and amortization
Loan Costs, Net of Accumulated Amortization of $32,664 and $16,627 in 2010 and 2009, respectively
2010
2009
$ 1,126,646 19,349 74,542 69,806
$ 3,859,414 52,672 58,559 21,411
1,290,343
3,992,056
3,392,048 34,162,669 4,396,881 374,263 42,325,861 12,497,740 29,828,121
3,392,048 30,754,278 4,282,915 358,473 38,787,714 11,385,403 27,402,311
53,735
69,772
$ 31,172,199
$ 31,464,139
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 Borrowings under line of credit (Note 5) Current portion of long-term debt (Note 5)
2010 $
Total Current Liabilities Long-Term Borrowings Under Line of Credit (Note 5) Long-Term Debt, Net of Current Portion (Note 5)
300,375 23,962 53,737 690,602
2009 $
298,048 23,971 57,974 744,985 657,384
1,068,676
1,782,362
530,827
-
16,337,222
17,176,070
12,377,116 782,718 75,640
8,851,267 3,578,800 75,640
13,235,474
12,505,707
$ 31,172,199
$ 31,464,139
Commitments and Contingencies (Note 6) Net Assets Unrestricted Temporarily restricted (Note 8) Permanently restricted (Note 8)
5
Unrestricted
2010 Temporarily Permanently Restricted Restricted
Total
Revenues and Other Support: Tithes and offerings Church capital campaign fund The Summit Counseling Center A Beacon of Hope Women's Center Other revenues and contributions Net assets released from restrictions (Note 9)
$ 5,524,710 638,417 483,867 642,826
$
1,440,660 38,869 774,894
$
-
$ 5,524,710 1,440,660 677,286 483,867 1,417,720
5,050,505
(5,050,505)
-
-
12,340,325
(2,796,082)
-
9,544,243
Expenses: Compensation and benefits Program Conference apportionments Designated expenditures Buildings and grounds General and administrative Depreciation and amortization Interest Internal allocations (Note 7)
3,450,172 1,121,459 504,503 741,738 1,144,811 465,129 1,131,875 810,923 (556,134)
-
-
3,450,172 1,121,459 504,503 741,738 1,144,811 465,129 1,131,875 810,923 (556,134)
8,814,476
-
-
8,814,476
-
729,767
75,640
12,505,707
75,640
$ 13,235,474
Increase (Decrease) in Net Assets
3,525,849
(2,796,082)
Net Assets at Beginning of Year
8,851,267
3,578,800
Net Assets at End of Year
$ 12,377,116
6
$
782,718
$
Unrestricted
$ 5,373,065 621,517 443,603 815,007
2009 Temporarily Permanently Restricted Restricted
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 1,179,827 835,913 (558,860)
-
-
3,207,406 1,486,309 465,456 422,012 1,201,713 476,480 1,179,827 835,913 (558,860)
8,716,256
-
-
8,716,256
1,068,088
30,550
2,452
1,101,090
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
$
Total
(2,531,152)
$
7
MOUNT PISGAH UNITED METHODIST CHURCH AND CERTAIN RELATED ENTITIES COMBINED STATEMENT OF CASH FLOWS YEARS ENDED JUNE 30, 2010 AND 2009
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 by Operating Activities Cash Flows from Investing Activities: Purchases of buildings and equipment Student building Beacon and counseling center building Other buildings and equipment Net Cash Required by Investing Activities Cash Flows from Financing Activities: Net 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 Net Increase (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents at Beginning of Year Cash and Cash Equivalents at End of Year
2010
2009
$ 5,524,710 $ 5,373,065 294,927 252,846 2,612,196 2,356,388 (6,937,975) (6,811,302) (810,923) (835,913) 682,935
335,084
(3,225,345) (316,304)
(138,495) (5,373) (230,737)
(3,541,649)
(374,605)
(214,158) (805,629) -
(71,873) (18,955) (30,463) (1,450,620) 2,000,000
1,145,733
1,802,779
125,946
2,230,868
(2,732,768)
2,191,347
3,859,414
1,668,067
$ 1,126,646
$ 3,859,414
(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, 2010 AND 2009 2010
(Continued)
2009
Reconciliation of Increase in Net Assets to Net Cash Provided by Operating Activities Increase in Net Assets
$
Adjustments to Reconcile Increase in Net Assets to Net Cash Provided 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 in other current assets Increase (decrease) in accounts payable Increase (decrease) in accrued liabilities Decrease in agency funds Total adjustments Net Cash Provided by Operating Activities
729,767
$ 1,101,090
(1,145,733) 1,131,875 33,323 (48,395) (15,983) 2,327 (9) (4,237) (46,832) $
682,935
(1,802,779) 1,179,827 (32,268) 6,999 (409) (23,275) 2,786 (96,887) (766,006) $
335,084
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, 2010 AND 2009 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. During the years ended June 30, 2010 and 2009, 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, 2010 and 2009. 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, 2010 and 2009, 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)
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting The Church and related entities follow accounting standards set by the Financial Accounting Standards Board (FASB). The FASB sets accounting principles generally accepted in the United States of America (GAAP). In June 2009, the FASB issued FASB ASC 105, Generally Accepted Accounting Principles, which establishes the FASB Accounting Standards Codification as the sole source of authoritative GAAP. Pursuant to the provisions of FASB ASC 105, the Church and related entities no longer references to particular standards of GAAP. The adoption of FASB ASC 105 did not impact the Church’s and related entities combined financial position or results of operations.
10
MOUNT PISGAH UNITED METHODIST CHURCH AND CERTAIN RELATED ENTITIES NOTES TO COMBINED FINANCIAL STATEMENTS JUNE 30, 2010 AND 2009 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 and related entities record 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, 2010 and 2009 were not significant. Contributions The Church and related entities report 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 are met 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 and related entities report 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 long-lived assets are reported as restricted support. Noncash Contributions The Church and related entities report 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, 2010 and 2009.
11
MOUNT PISGAH UNITED METHODIST CHURCH AND CERTAIN RELATED ENTITIES NOTES TO COMBINED FINANCIAL STATEMENTS JUNE 30, 2010 AND 2009 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 and related entities believe they 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 and Apportionment Expenses Program expenses are direct expenses of ministry, counseling and women’s center activities. Apportionment expenses are the Church’s share of Conference expenses. Use of Estimates The preparation of combined financial statements in conformity with GAAP 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 combined financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Income Taxes The Church, as a church organization, is exempt from federal and state income taxes under Internal Revenue Code Section 501(c)(3). The Church has obtained not-for-profit tax exempt status under Section 501(c)(3) from the Internal Revenue Service for The Summit Counseling Center, Inc., A Beacon of Hope Women’s Center, Inc. and New Hope Mission, Inc. The Church and related entities annually evaluate all federal and state income tax positions. This process includes an analysis of whether these income tax positions the Church and related entities take meet the definition of an uncertain tax position under the Income Taxes Topic of the Financial Accounting Standards Codification.
12
MOUNT PISGAH UNITED METHODIST CHURCH AND CERTAIN RELATED ENTITIES NOTES TO COMBINED FINANCIAL STATEMENTS JUNE 30, 2010 AND 2009 NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Subsequent Events Management has evaluated subsequent events through October 7, 2010, the date which the combined 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, 2010 and 2009. Pledges paid before the fiscal year begins are recorded as temporarily restricted. During 2008, the Church initiated a 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 $500,000 at June 30, 2010, and are scheduled to be collected over the next year. 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. Included in the Church building complex on the combined statement of financial position is $3,543,360 and $318,015 related to construction in process of the student building at June 30, 2010 and 2009, respectively. The building complex, furniture and equipment and vehicles are depreciated straight-line method over the estimated useful life of the asset: forty years for seven years for furniture and equipment, five years for vehicles and three computers. Depreciation and amortization was $1,115,838 and $1,172,523 for ended June 30, 2010 and 2009, respectively.
13
using the buildings, years for the years
MOUNT PISGAH UNITED METHODIST CHURCH AND CERTAIN RELATED ENTITIES NOTES TO COMBINED FINANCIAL STATEMENTS JUNE 30, 2010 AND 2009 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. 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 2.52% at June 30, 2010), until March 2012, 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 was payable as to interest only until July 2010, at which time, all outstanding principal and interest was due in full. Subsequent to June 30, 2010, the line of credit was renewed and now has maximum available borrowings of $1,500,000 with interest at LIBOR plus 2.25%. The line of credit is payable as to interest only until December 2011, at which time, all outstanding principal and interest is due in full. Accordingly, the line of credit is classified as long term on the Church’s combined statement of financial position as of June 30, 2010. The financing agreements described above for the Church are secured by certain property and equipment and contain certain restrictive covenants with which the Church was in compliance at June 30, 2010.
14
MOUNT PISGAH UNITED METHODIST CHURCH AND CERTAIN RELATED ENTITIES NOTES TO COMBINED FINANCIAL STATEMENTS JUNE 30, 2010 AND 2009 NOTE 5 – FINANCING AGREEMENTS (Continued) Outstanding balances under the financing agreements at June 30, 2010 and 2009 consist of the following: 2010 Church term loans payable to a financial institution Term note 1 Term note 2 Church line of credit payable to a financial institution Less: revolving line of credit Less: current portion of long-term debt Long-term debt
$
7,855,568 9,172,256 530,827 17,558,651 530,827 690,602 $ 16,337,222
2009 $
8,350,856 9,482,598 744,985 18,578,439 744,985 657,384 $ 17,176,070
Principal maturities of long-term debt for years ending June 30 are as follows: 2011 2012 2013 2014 2015 Thereafter
$
690,602 7,877,338 376,342 400,629 426,483 7,256,430 $ 17,027,824
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%.
15
MOUNT PISGAH UNITED METHODIST CHURCH AND CERTAIN RELATED ENTITIES NOTES TO COMBINED FINANCIAL STATEMENTS JUNE 30, 2010 AND 2009 NOTE 6 – DEBT GUARANTEE (Continued) On October 28, 2009, the loan agreement was amended and restated with the School’s financial institution to revise the payment terms and the interest rate. Payment terms were extended through March, 2026. Interest is at 4.2% until October, 2014, at which time the rate becomes prime plus 1%. Also, the School’s financial institution agreed to repurchase the bonds. The Church guarantees the restated loan agreement in an amount not to exceed $11,000,000. NOTE 7 – OTHER RELATED PARTY TRANSACTIONS The Church participates in a space and operating expense agreement with other related entities. The Church received $556,134 and $558,860 during the years ended June 30, 2010 and 2009, respectively, from the School for expenses allocated under the expense agreement. NOTE 8 – RESTRICTED NET ASSETS Temporarily restricted net assets at June 30, 2010 and 2009 are available for the following purposes: 2009
2010 Capital fund expenditures Other designated funds
$ $
133,292 649,426 782,718
$ $
3,061,399 517,401 3,578,800
Permanently restricted net assets at June 30, 2010 and 2009 consist of foundation funds for the Beacon of Hope and Summit Counseling Center as follows: 2010 Beacon of Hope Summit Counseling Center
$ $
16
23,335 52,305 75,640
2009 $ $
23,335 52,305 75,640
MOUNT PISGAH UNITED METHODIST CHURCH AND CERTAIN RELATED ENTITIES NOTES TO COMBINED FINANCIAL STATEMENTS JUNE 30, 2010 AND 2009 NOTE 9 – NET ASSETS RELEASED FROM RESTRICTIONS Net assets released from restrictions for the years ended June 30, 2010 and 2009 are as follows: 2009
2010 Designated expenditures Capital fund expenditures and debt service
$ $
684,892 4,365,613 5,050,505
$ $
407,514 2,123,638 2,531,152
NOTE 10 – EMPLOYEE BENEFIT PLANS The Church and 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 $102,584 and $95,495 to this program for the years ended June 30, 2010 and 2009.
17
SUPPLEMENTARY INFORMATION
MOUNT PISGAH UNITED METHODIST CHURCH AND CERTAIN RELATED ENTITIES COMBINING STATEMENT OF FINANCIAL POSITION BY FUND JUNE 30, 2010 ASSETS Church Ministry Current Assets Cash and cash equivalents Accounts receivable Other Current portion of notes receivable Interfund accounts
$ 1,046,479 19,349 74,542 16,158 175,251
Total Current Assets Land, Buildings and Equipment, at Cost Land Church building complex Furniture and equipment Vehicles Less accumulated depreciation and amortization
Notes Receivable, Net of Current Portion Loan Costs, Net of Accumulated Amortization of $32,664
19
Beacon of Hope
$
$
56,217 -
23,950 126,536
1,331,779
56,217
150,486
3,392,048 34,162,669 4,171,961 374,263 42,100,941
103,936 103,936
120,984 120,984
12,424,083 29,676,858
43,854 60,082
29,803 91,181
144,740
-
-
53,735
-
-
$ 31,207,112 (Continued)
Summit Counseling
$
116,299
$
241,667
Eliminations
$
- $ 1,126,646 19,349 74,542 (16,158) 69,806 (231,981) (248,139)
1,290,343
-
3,392,048 34,162,669 4,396,881 374,263 42,325,861
-
12,497,740 29,828,121
(144,740) $
Total
53,735
(392,879) $ 31,172,199
20
LIABILITIES AND NET ASSETS Church Ministry
(Continued)
Current Liabilities Accounts payable Accrued liabilities Agency funds Current portion of long-term debt Interfund accounts
$
Total Current Liabilities Long-Term Borrowings Under Line of Credit Long-Term Debt, Net of Current Portion Net Assets (Deficit): Unrestricted Temporarily restricted Permanently restricted
280,542 8,913 53,737 690,602 126,536
Beacon of Hope
$
$
15,234 15,049 8,079 105,445
4,599 8,079 -
1,160,330
143,807
12,678
530,827
-
-
16,337,222
72,370
72,370
12,422,370 756,363 13,178,733
(178,538) 26,355 52,305 (99,878)
133,284 23,335 156,619
$ 31,207,112
21
Summit Counseling
$
116,299
$
241,667
Eliminations
$
- $ (16,158) (231,981) (248,139) (144,740)
$
Total
300,375 23,962 53,737 690,602 1,068,676 530,827 16,337,222
12,377,116 782,718 75,640 13,235,474
(392,879) $ 31,172,199
22
MOUNT PISGAH UNITED METHODIST CHURCH AND CERTAIN RELATED ENTITIES COMBINING STATEMENT OF ACTIVITIES AND NET ASSETS BY FUND YEAR ENDED JUNE 30, 2010 Church Ministry Revenues and Other Support: Tithes and offerings Capital campaign fund The Summit Counseling Center A Beacon of Hope Women's Center Other revenues and contributions
$ 5,524,710 1,440,660 1,417,720
Expenses Compensation and benefits Program Conference apportionments Designated expenditures Buildings and grounds General and administrative Depreciation and amortization Interest Internal allocations
Increase (Decrease) in Net Assets Net Assets (Deficit) at Beginning of Year Net Assets (Deficit) at End of Year
$
677,286 -
Beacon of Hope $
483,867 -
8,383,090
677,286
483,867
2,729,035 957,116 504,503 681,741 1,121,251 399,653 1,108,141 800,449 (603,330)
526,616 62,938 48,102 21,865 14,054 5,398 23,598
194,521 101,405 11,895 23,560 43,611 9,680 5,076 23,598
7,698,559
702,571
413,346
684,531
(25,285)
70,521
12,494,202
(74,593)
86,098
$ 13,178,733
23
Summit Counseling
$
(99,878) $
156,619
Eliminations $
$
Total
-
$ 5,524,710 1,440,660 677,286 483,867 1,417,720
-
9,544,243
-
3,450,172 1,121,459 504,503 741,738 1,144,811 465,129 1,131,875 810,923 (556,134)
-
8,814,476
-
729,767
-
12,505,707
-
$ 13,235,474
24
9820 Nesbit Ferry Road | Johns Creek, GA 30022 678-336-3000 | mountpisgah.org