Donated property and equipment
Changes In assets and liabilities:
(Increase) decrease In;
Accounts receivable
Other assets
Increase In accounts payable and accrued expenses
Net cash provided by operating activities
Cash Flows From Investing Activities
Investment in United Methodist Foundation, Inc.
Purchase of other investments
Withdrawals from United Methodist Foundation, Inc
Maturity of other investments
Acquisition of property and equipment
Net cash provided by (used in) investing
! (decrease) in cash
S 3,332,435 $ 1.934,681
324,407
311.698
(2,325,598)
(2.366.035)
19,923
6.992
3,980
25.985
336.508
(30,700)
(14.064)
102,788
191.812
(19,677)
37,781
154,026
155.744
1.561,584
621,102
(1,869,575)
(1.867,890)
(3,223,239)
(2.698.110)
4,699,464
3,195.312
739,902
653,906
(217,927)
(185.855)
128,625
(902,637)
Cash;
Beginning
Ending
See Notes to Financial Statements.
364
NOTES TO FINANCIAL STATEMENTS
vhich under Episcopal
ig clergy, appointing itinerant pastors to
Note 1. Nature of Business and Significant Accounting Policies
The Conference is the fundamental body of the United Methodist Chu
leadership provides the mechanism for admitting and orda
churches, and supplying them with mutual support. The Conference is composed of ministerial and lay
members and other individuals as required in The Book of Discipline of The fiiiled MelhoJisi Church
which in an annual meeting defines the programs and responsibilities of the Church as a whole. Included
within this report are all funds administered by the Conference Treasurer, except for the United
Methodist Foundation, Inc. and the Board of Missions. Inc.
A summary of the Conference's significant accounting policies follows:
Investments : Investments in equity
in debt securities are stated at fair \
unrealized gains and losses, are ii
distribution and changes in net ;
ecurities with readily determinable fair values and all investments
ilue. Chanoes is fair value of insestments, and both realized and
eluded in the accompanying statement of revenue, expense or
isets. In determining realized gains and losses, the cost of
investments is determined using the specific-identification method.
Propertv and equipment : Land, buildings and equipment are recorded at cost since
1983, if historical costs were unavailable, estimated historical costs were used.
Church properties assumed by the Conference as well as land donated to the Conference are slated ;
their estimated fair value at the time of receipt
Depreciation is computed using the straight-line method over the following estimated useful lives:
Years
Buildings
Improvements to buildings
Furniture and equipment
30
â– 40
10
-40
5-
â– 15
Estimates : In preparing its financial statements, management is required to make estimates and
assumptions that afifect the reported amounts of assets and liabilities as of the date of the balance sheet
and statement of revenue, expense or distribution and changes in net assets for the period. Actual
results could differ from those estimates.
Other accountine trolicies : The expenditures for each year are financed principally by funds received
from revenue from apportionments of the previous year. Accordingly, the revenue shown in the
accompanying statement of revenue, expense or distribution and changes in net assets will be available
for operations budgeted for the ensuing year.
Note 2. Cash
Arrangements with banks for investment of excess funds require minimum cash balances of S300.000 to
be maintained. All cash deposits are legally subject to withdrawal without penalty. Funds are invested in
this program each business day. The amount invested in this program at December 31, 19«9 and 1998
was $4,357,000 and $1,559,000, respectively. The Conference places its cash with high quality financial
institutions. At times this cash is in excess of the FDIC insurance limits.
Note 3. Investmenls
Investments are comprised of the following:
Certificates of deposit
GBOP Superannuate Endowment Fund
GBOP Deposit Account
Investment in United Methodist Foundation,
Other
The Conference's investment in the United Methodist Foundation, Inc. represents approximately 55 and
53 percent of the unitholder equity of the Foundation at December 31, 1999 and 1998, respectively. The
Foundation's net assets were approximately $64,200,000 and $67,900,000 at December 31, 1999 and
1998, respectively, and consisted primarily of common stocks, fixed income securities and real estate
mortgage loans.
$ 353,888
$
1.045,102
184,544
165,432
7,043,432
3.887.992
35,274,734
35,797.071
1,878
$ 42,856,598
$
40,897.475
365
Note 4. Property- and Equipment
A summary of properly and equipment
Land and land improvements
Buildings and building improvements
Furniture and equipment
Construction in progress, camps
Less accumulated depreciation
Depreciation expense for the years ended December 31, 1999 and 1998 was $324,407 and S3
respecti\ely.
s
748^12
$
739,857
4.606,975
4,545,088
1,447,108
1,298,955
91,982
86,840
6,894,577
6,670,740
2,971,605
2.668.008
s
3,922,972
$
4,002.732
Note 5. Other Assets
Other assets consist of the follow
Loans to Churches, less reserve of $ 1 00.000, 1 999;
Inventory
Church properties and donated land held for resale
Other
S 43,989
$
191.235
186,548
6.671
414,802
429.359
9,712
8.109
S 655,051
$
635.374
Note 6. Pensions
In 1981, the Conference began participating in n
Board of Pensions. Four defined contribution pla
for all service after December 31, 1981.
lultiemployer pension plans provided by the General
IS provide benefits for Clergy and lay staff as follows
The Ministers Pension Plan provides retirement benefits for bishops of The United Methodist Church
elected by a Jurisdictional Conference, clergv members of an Annual Conference and local pastors of
The United Methodist Church under Episcopal appointment or those eligible for appointment to a charae.
The Cumulative Benefit and Pension Fund provides retirement benefits for lay staff of the Annual
Conference. Funding in 1999 and 1998 was based on 12% of plan compensation for both plans.
The Comprehensive Protection Plan provides death, disability and educational benefits for all individuals
eligible to participate in the Ministers Pension Plan. The Basic Protection Plan provides death and
disability benefits for lay staff who participate in the Cumulative Benefit and Pension Fund. Funding in
1999 and 1998 was based on 4.4% of actual plan compensation for both plans.
Beginning January 1, 1990, the employers of plan participants collect the required contributions for the
defined contribution plans described above from the plan participants and remit all collections directly to
the General Board of Pensions.
The plans also provide defined benefits in accordance with their predecessor plan. The Ministers Reserve
Pension Fund. All plan participants as of December3l. 1981 entitled to receive benefits from The
Ministers Reserve Pension Fund will receive upon retirement a monthly retirement benefit, disability,
surviving spouse and surviving children benefits. Benefits are based on years of service and an approved
pension rate The pension rate is based on a percent of the Conference Average Salary Benefits are
subject to cenain reductions if the participant retires before reaching age 65.
The Conference agreed to fund the prior service liability for service years prior to 1982. On January 1,
2000, the net unfunded liability based on a pension rate of $404 was $27,437,440 Current expense for
prior service liability was $2,395,467 and $2,354,879 for 1999 and 1998, respectively. The amount paid
to fiind the unfunded prior service liability is determined annually by the General Board of Pensions.
The Conference amortizes prior service cost over a 30-year period.
Note 7. Related Party Transactions
United Methodist Foundation. Inc. : The United Methodist Foundation, Inc. was established primarily as
an investment pool available for organizations, churches and agencies related to the North Carolina
Conference, Southeastern Jurisdiction, of The United Methodist Church. Included in accounts receivable
and accounts payable was $67,464 due to and $171,251 due from the Foundation at December 31, 1999
and 1998, respectively.
Board of Missions. Inc. : The Board of Missions, Inc. was established primarily to encourage the
construction of new churches and the remodeling and repair of existing facilities by providing financial
assistance to Churches established in eastern North Carolina. The net amount due to the Board was
$1 18,673 at December 31, 1999 and $47,194 was due from the Board at December 31, 1998.
Note 8. Contingent Liabilities
The Conference has been named as a defendant in several legal actions which are being vigorously
defended In management's opinion, the ultimate resolution of these actions will not have a materially
adverse effect on the Conference's financial position.
366
^A M^GLADREY&PULLEN.LLP RSM
Certified Public Accountants
INDEPENDENT AUDITORS REPORT
ON THE SUPPLEMENTARY INFORMATION
To ihe Council on Finance and Administration
Nonh Carolina Conference. Southeastern Jurisdiction.
of The United Meihodisi Church
Raleigh. North Carolina
Our audit was made for the purpose of forming an opinion on the basic tlnancial statements taken 3
whole The supplementary information is presented for purposes of additional analysis and is nc
required pan of the basic financial statements. Such information has been subjected lo the audit
procedures applied in the audit of the basic financial statements and. in our opinion, is fairly stated in
material respects in relation to the basic financial statements taken as a whole.
^i^^vJ^t^^
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367
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SUMMARY OF INVESTMENTS
December 31, 1999
Fair
Value
Central Funds:
Investment in United Methodist Foundation, Inc.
Certificates of deposit
Conference Board of Pensions:
Investment in United Methodist Foundation. Inc.
General Board of Pensions Accounts
Ministers' Transition Fund, Investment in
United Methodist Foundation, Inc.
Southeastern Jurisdiction Association - Communicators,
investment in United Methodist Foundation. Inc.
Blackburn Scholarship Fund, investment in
United Methodist Foundation, Inc.
Church Redevelopment Endowment, SFT Funds, investment
United Methodist Foundation, Inc.
Conference Board of Trustees Reserve Fund, investment in
United Methodist Foundation, Inc.
Church Salary Endowment, investment in
United Methodist Foundation. Inc.
John Wesley Endowment/New Church Developme
United Methodist Foundation, Inc.
Camps Endowment for Maintenance,
investment in United Methodist Foundation, Inc
S 11.922,657
353.888
3,732.103
7^27.976
Insurance, investment in United Methodist Foundatic
Church Extension, SFT Funds, investment in
United Methodist Foundation, Inc.
Simeon F. Cummings Endowment, investment in
United Methodist Foundation, Inc.
, Inc.
S 42,856,598
SCHEDULES OF CENTRAL FUND ACTIVITIES
Equitable Compen
Budget available for 1999
S 172,500
Other 1999 approved suppleme
nt
21,000
Total budget available and
revenues
S
193,500
E.xpense:
Board expense
U70
Allocation to Districts:
Burlington District
15.767
Durham District
62,685
Elizabeth City District
7,608
Fayetteville District
10,711
Goldsboro District
7,487
Greenville District
41,139
New Bern District
5,252
Raleigh District
13,837
Rockingham District
16,035
Rocky Mount District
6,056
Sanford District
1,000
Wilmington
2,534
Total distribution
s and expense
191,481
Excess of budget available
over expenses
S
2.019
377
Schedule 1 - Equitable Compensalion (Conlinued)
Allocation
to Districts:
Church a
Church Name
Burlington District:
01-17-0 Bethel/Locust HMI
01-51-1 Center
01-31-1 Leasbure
01-41-1
St. Luke's
01-49-1
Yancewille
District total
02-02-1
Andrews Chapel
02-11-0
Asbury Temple/Good Shepherd
02-13-1
Bethesda
02-32-0
Granville-Vance
02-21-1
Lakewood
02-41-1
Mt. Tirzah
02-47-1
02-51-0
Ca-vel
Rougemont
02-51-0
Stem-Bullock's
02-45-2
Salem
02-64-1
Union Chapel
District total
Elizabeth City District:
03-25-0
Grace
03-26-0
North Gates
03-37-0
Union. Newbegun
District total
Fayetteville District:
04-17-1 Harry Hosier
04-16-1 Trinity
District total
Goldsboro District:
05-14-1
Jefferson
05-43-0
Whitley, Elizabeth
District total
Greenville District:
06-04-0 Belhaven-Trinity
06- 1 1 - 1 Restoration
06-37-0 Vanceboro Circuit
06-40-0 Washington Circuit
06-43-1 Webb Chapel
District total
New Bern District:
07-10-0 Core Creek/Tunles Grove
07-13-0 Harlowe Oak Grove
07-34-3 Pamiico Parrish
District total
Raleigh District:
08-34-0 Cokesbury/Jenkins Memorial
Rockingham District:
09-14-1 Saint Peter's
09-25-0 Mt. Olive Parish
09-39-1 Rhyne Memorial
District total
Rocky Mount District:
10-06-0 Eden, Enfield, Whitaker
10-24-0 Rich Square- Woodland
District total
Sanford District:
1I-I6-1 Goldston
Wilmington District:
12-02-0 Bladen
5,243
5,243
3,495
1,831
(45)
15,767
1,800
12,935
3,000
3,000
11,230
3,600
8J05
4,050
2,700
UOO
10,765
62.685
2,748
3,240
1,620
4,711
6,000
5,000
2,487
5,494
22,800
7,425
5,600
(180)
41,139
2.002
(250)
3,500
9J44
3,325
3J66
Conference total
378
Schedu
Emerging Church Support
Revenues:
Budget available for 1999
Other
Total budget available and reve
Distributions:
Burlington District
Durham District
Elizabeth City District
Fayetteville District
New Bern District
Raleigh District
Rocky Mount District
Sanford District
Wilmington District
Total distributions
Excess of budget available and
revenues over distributions
Budget available for 2000
Allocation to Districts:
Church « Church Name
Burlington District:
01-50-1 The Rock UMC
Durham District:
02- 1 1 -0 Asbury Temple/Good Shepherd
0:-57-l Reconciliation UMC
02-58-1 Durham Hispanic
District total
Elizabeth City District:
03-43-1 All God's Children
03-44-1 Mighty Wind
District total
Fayetteville District:
04-51-1 Cornerstone
New Bern District:
07-48-1 New Song UMC
Raleigh District;
08-55-1 Windbome
08-63-1 Disciple
Sunrise
Christ Community
New Life
New Beginnings
District total
Rocky Mount District:
10-45-1 Clark Street
Sanford District:
11-12-0 Chatham-Lee Hispanic
Wilmington District:
12-52-1 Hope
Conference total
550,000
57,516
50.073
117,025
98,109
13J68
46.591
189,990
48.246
607,516
s
s
570.000
08-64
08-65
08-67-
6,489
59,018
51,518
20J27
77,782
39326
27,436
9,053
31,632
28,089
54,454
189,990
Schedule 3 - Joint Committee on Disability
Revenues:
Budget available for 1999
Other 1999 approved supplement
Total budget available and reve
Distributions:
Clergy support, disability
Employer health insurance
Employer life insurance
Total distributions
Excess of budget available and
revenues over distributions
Budget available for 2000
103,0
10,0
12,500
92,700
2,746
107.946
s
5.054
s
103.000
379
nual Conference Expense
Revenues;
Budcet available for 1999
S 123,005
Camp Store Sales
Other 1999 approved supplement
Total budget available and revenues
U61
12.019
S
136J85
Distributions:
Lay staff salaries
562
Employer PICA
43
Workers' compensation
Mileaae reimbursements
2,101
In Conference travel and meetings
89.736
3,623
Rental expense
941
Electronic balloting
3,546
Miscellaneous
534
Postage
Grants
2,654
3,000
Printing, general
4,150
Professional fees, other
16,223
Supplies, office
Telephone
Interfund purchases
506
1,028
7,736
Total distributions
136,385
Excess of budget available and
revenues over distributions
Judget available for 2000
Schedule 5 - Conference Treasurer's Ofnce Expense
Revenues;
Budget available for 1999
S 513.449
Miscellaneous receipts
25
Total budget available a
nd revenues
S
513,474
Distributions;
Administration;
Payroll, lay staff salaries
283.024
Clergy compensation
4,000
Employer benefits
94,769
Temporary staff
13,513
Travel expense
13.543
Maintenance expense
1,145
Miscellaneous expense
2.036
Postage
4,089
Office and printing expense
2,514
Supplies and professional fees
10.465
Taxes, other
44
Capital outlay and equipment
7,921
Interfund purchases
26J76
Audit and consulting;
Supplies and professional fees
36.114
Council and comminee:
Travel
3,219
Total distributions
502,772
Excess of budget available a
revenues over distributions
Budget available for 2000
380
Schedule 6 - Staff Parsonage Maintenance
Budget available for 1999
Distributions:
Staff Parsonage n:iai
Canu right Drive
Nonhbrook Drive
Laurel Hills Drive
Spiney Ridge Court
Brewster Street
Total dist
Excess of budget available over distribu
Budget a\ailable for 2000
1,441
2,249
2,748
6,903
1J89
14.713
s
21.103
s
50.082
Schedule 7 - Council on Ministries Office,
Meetings and Programs
Budget available for 1999
Distributions;
Administration:
Travel expense
Maintenance expense
Miscellaneous expense
Postage
Office and printing expense
Supplies and professional expense
Capital outlay and equipment
Interfund purchases
Council and committee
Programs
District Council on Ministries
Staff travel, in Conference
Staff travel, out of Conference
Staff travel, mobile phones
Total distributions
Excess of budget available over distributions
Budget available for 2000
1,169
1,211
509
350
970
5,998
2,774
38,245
3,323
52
16,800
23,030
7,158
2,496
104,085
$
17,733
s
116,467
Schedule 8 - Council on Ministries, Staff Salaries
Budget available for 1999
Distributions:
Payroll, lay staff salaries
Clergy support, salaries
Clergy support, utilities
Employer PICA
Employer pension
Employer health insurance
Employer life insurance
Workers' compensation
Flex Plan fees
Temporary staff
In Conference travel and meetings
Out of Conference travel and meetings
Continuing education
Dues and subscriptions, other
Professional fees, other
Total distributions
312,617
157,734
9J15
22,018
62,694
52,466
2J05
1,909
287
1,116
1,118
717
(89)
49
3,482
Excess of budget available over distributic
Budget available for 2000
381
Schedule 9 - Council on Ministries, Task Forces
Budget available for 1999
Distributions:
Administration S 18
Spiritual Formation 13
Systemic Poverty 273
Emerging needs 4,226
Native American Ministries 60
Bishop Initiative 1,475
Conference Structure Task Force 2,665
Hispanic Ministries Task Force 5
Total distributions
Excess of budget available over distributions
Budget available for 2000
Schedule 10 - Commission on Education
Budget available for 1999
Distributions:
Administration S 3J06
Council and Committee 1,415
Resources 977
Youth programs 17,252
Educational programs 5.959
Leader training 606
Educator Scholarships 2,111
District Christian Educator 12300
Ministry Training Teams 70
Prison Disciple Support 10,250
Peru Christian Education Support 6,000
Total distributions
Excess of budget available over distributions
Budget available for 2000
Schedule 1 1 - Commission on Laitv
8,735
s
U55
s
4,813
60,446
S
3J96
S^
50,176
Revenues:
Budget available for 1999
S 22,877
Administration
200
Lay Speaker Program
1,250
Total budget available and revenues
S
24,327
Distributions:
Administration
4J34
Council and committee
451
1348
Resources
1,201
UMM President and Programs
1.614
Lay Speaker Program
1,668
January workshops
6,020
Lay Person of the Year
40
Scouting program
400
Leader training
2,000
Transformation 2000
1.125
Total distributions
20,401
Excess of budget available and
revenues over distributions
$
3,926
Budget available for 2000
$
21,758
382
Schedule 12 - Commission on Evangelii
Revenues:
Budget available for 1999
Programs
Distributions:
Administration
Council and Committee
Programs
Executive officer
Ethnic Minority Evangelism
Total distributions
Excess of budget available and
r distributions
Budget available for 2000
25,552
9.835
10.683
4,282
5,515
814
4.000
25.294
s
11.093
s
19,905
Schedule 13-Comn
I Church and Society
Budget available for 1999
Distributions:
Administration
Council and Commmee
Programs
Handicap Care Learning Together
Habitat for Humanity
CITCA
Leader Training
Total distributions
Excess of budget available over di<
Budget available for 2000
3,314
2,523
500
I.I90
500
104
8,687
s
3,791
s
15,511
Schedule 14 - Golden Cross Fund
Budget available for 1999
Distributions:
Administration
Total distributions
Excess of budget available over distributions
ilable for 2000
28J59
s
s
28,876
383
Schedule 15 - Commission on Missions and Outreach Mil
Revenues;
Budget available for 1999
Administration
Ganta Project
Chatham-Lee Hispanic Ministries