Global Gathering
Project Agape
Total budget uvailuble and revenues
Distributions:
Administration
Council and Committee
SEJ Association
Church and Community
Volunteers in Mission
Education and Cultivation
Promotion of Advance
Interpretation/Cultivation
Promotion of Mission Studies
Ganta Project
Rural Grants
Church and Community Workers
EMLC
Work Teams
SEJ U M Volunteers in Mission
Peru International Grants
Chatham-Lee Hispanic Ministries
Juan Wesley Center, Chile
Bishop's Initiative to Angola
Total distributions
Excess of budget available and
revenues over distributions
259,963
5,000
59,140
2.400
20,482
1,254
4,500
108,849
2,144
58
217
11,532
3,036
71,479
1,731
3,242
7,000
48,974
1,737
20,942
8,882
8,456
361
324,876
s
8,994
s
287,777
Schedule 16 - College Sustaining Program
Budget raised in 1999
Distributions:
Methodist College
N. C. Wesleyan College
Louisburg College
Duke Divinity School
Greensboro College
High Point College
Bennett College
Total distributions
Excess of budget available over dis
Schedule 17 - College Debt Retii
177,311
177,311
177311
22.459
17,140
17.140
2364
Budget raised in 1999
Distributions:
Methodist College
N. C. Wesleyan College
Louisburg College
Total distributions
1 of budget available over distributions
$
101,908
56.615
67,938
226,461
S
8,684
384
Schedule 18 - Board of Ordained Ministrv
Revenues:
Budget available for 1999
S 140.000
Pre-retirement Seminar
2.577
License for Local Pastor Study
875
Total budget available and revenues
S
143.452
Distributions:
Administration
7,870
Council and Committee
21.016
Programs
44,456
1. 57 1
Member Recognition
3J67
Orientation for New Pastors
4.991
Residences in Ordained Ministry
1.608
Pastoral Care
15,889
Testing and Counseling
13,640
License for Local Pastor Study
9,628
Continuing Education
15.863
Counseling Elders Workshop
375
ABLC
83
Annual Exploration
114
Total distributions
_
140,471
Excess of budget available and
revenues over distributions
udget available for :
Schedule 19 - Commission on Communications
Revenues:
Budget available for 1999
S 43,186
Sales, equipment sales
50
Receipts, general
15,700
Sales, other
856
Other
500
Transfers in From Other Funds
9.555
Total budget available and revenues
S
69,847
Distributions:
Car phone expenses
27
Mileage reimbursements
987
In Conference travel and meetings
362
Out of Conference travel and meetings
1,055
Rental expense
536
Equipment maintenance
730
Dues and subscriptions, other
988
Miscellaneous
94
News Bureau
1376
Postage
4,831
Printing, general
3,646
Professional fees, other
1,886
Supplies, office
2,422
Advertising
32,653
Media expense
486
Promotions
45
W76
Interfund purchases
2,093
Transfers to other funds
5,839
Total distributions
69,432
Excess of budget available and
I over distributions
385
Schedule 20 - Media Center
Revenues
Distributions:
Supplies and professional fees
Research/resource materials
Capital outlay and equipment
Interfund purchases and transfer
Total distributions
Excess of revenues over dii
Net assets:
Beginning
Ending
Consistmg of pooled cash
Net assets
293
4,054
(105)
56
4,298
255
12,534
S
12389
s
12,889
Schedule 21 - Central Supplies
Revenues:
Sales, other
S
6,217
Interfund sales
73,091
Total revenues
S
79J08
Distributions:
Postage
40,879
Supplies and professional fees
7,783
Taxes
30,971
Total distributions
79.633
Deficiency of revenues over dis
ributions
(325)
Net assets:
Beginnmg
11,457
Ending
S
11.132
Consisting of;
Pooled cash
s
4,824
Inventory
6,308
Net assets
s
11,132
Schedule 22 - Youth Activities
Revenues
Distributions:
Youth Activities
Youth Global Vision
Youth Rally Day
Youth Kaleidoscope
Youth Trail Hike
Youth Summer Breakaway
Youth ACS
Youth International Work Team
Youth Pilgrimage
Planning Retreat
Bishops Confirmation Class
Youth CCYM Travel
YES Ministries
Total distributions
Excess of revenues over distributii
Net assets:
S 10,585
14,526
2,179
7,983
3354
52,453
63,714
10,436
24329
1.085
226
214
1,095
Consisting of:
Pooled cash
Prepaid expenses
Net assets
s
25,947
$
21,861
4,086
S
25,947
386
Schedule 23 -Ten Dollar Clu
Revenues
S
126,535
Distributions:
Supplies and professional fees
S
2,000
All Gods Children
1.900
Rock UMC
5,000
Vilnius Lithuania
25,000
Total distributions
33,900
Excess of revenues o^
'er distributions
92,635
Net assets:
Beginning
169,110
Ending
S
261,745
s
261.745
Consisting of pooled cash
Schedule 24 - Board of Pensions
Revenues:
Ministers pension fund
S 17,221
1,867,409
Duke Endowment
646,425
Realized and unrealized gains
241,407
GBOP Receipts, deposit account
872.426
DiMdends. United Methodist Foundation. Inc.
76,677
U.M. Publishing House
16,769
Transfers. NC Conference Budget Receipts
1,046,223
Transfers in from other funds
125,000
Tola! revenues
S
4,909,557
Distributions:
Pas roll, lay staff salaries
140
Clergy support. Duke Endowment
645.225
Employer PICA
11
Employer Pension. MPP
1,488
Employer health insurance
1,261,809
Employer life insurance
9,880
Past service liability payment
2,395,467
GBOP Special Grants
2,407
Pension Support Fund
16,752
Mileage reimbursements
1344
Lodging and meals
2365
Out of Conference travel and meals
778
Speaker honorariums
300
Miscellaneous
323
Postage
400
Telephone
9
Label purchases
U24
Total distributions
4339.922
Excess of revenues over distributions
569,635
Net assets:
Beginning
11,935,653
Ending
^
12,505,288
Consisting of:
Pooled cash
$ 1,524,876
GBOP deposit account
7,043,432
Accounts receivable
20333
Investment in the Methodist Foundation, Inc.
3,732,103
Investment in Superannuate Endowment
184,544
Net assets
S
12,505.288
387
Revenues:
Insurance premiums
S 5^79,796
Realized and unrealized gains
248,552
Dividends. Metliodist Foundation. Im
92.225
Olher
3,557
Total revenues
' S 5.624.130
Distributions:
Payroll, lay staff salaries
29.-I45
Employer PICA
2,168
Employer pension
3J50
Employer health insurance
3,861
Employer life insurance
117
Workers' compensation
123
Flex plan fees
-15
Temporary staff
311
Benefit management
5.854. 1 65
Mileage reimbursements
1,036
Professional fees
4,800
Supplies, other
94
Telephone, incoming wans
14,018
Paper purchases
5,595
Transfers to other funds
125,000
Total distributions
6.044.128
Deficiency of revenues ov€
^r distributions
(419,998)
Net assets:
Beginning
3,969393
Ending
S 3,549,395
Consisting of:
Pooled cash
$ 3,997
Investment in Methodist Foundation,
Inc.
3,761.973
Accounts receivable, insurance premiums
57.799
Accounts receivable, United Method!
St Foundation
20,496
Accounts receivable. Blue Cross Blue
: Shield
522.675
Accrued expenses
(817.545)
Nec assets
S 3,549.395
Schedule 26 - Ministerial Educalic
Revenues:
Conference budget receipts
Total revenues
Distributions:
General church remittances
Mileage reimbursements
Scholarships
Total distributions
Excess of revenues ove
Net assets:
Consisting of pooled cash
Net assets
427.948
370
123.428
551.746
18.852
49.045
S
67,897
S
67,897
388
Schedule 27 - Minislers' Transition Fund
Revenues:
Conference budget receipts
From Ministers and Institutions
Dividends, United Methodist Foundation
Realized and unrealized gains
Total revenues
Distributions:
Lovell R. Allis
James H. Bailey
Barry O. Barbour
Jesse V. Bone. Sr.
Theodore V Carter, Sr.
Leon Fowler
William M. Jeffries. Sr.
Paul Jones Johnson III
Jerry Jay Juren
David Brent Laytham
Henry W. Lee '
Wallaces. Lewis
Henrv N. Lovelace
Robert L. Mangum
Ernest R, Porter
James E Sunon
John E.\ley Upham, Jr.
William J. Witt, Jr
Interest e.\pense for prior year retirees
Miscellaneous
Total distributions
Excess of revenues over distri
Net assets:
Beginning
Ending
Consisting of:
Pooled cash
Accounts receivable
Investment in Methodist Foundation, Inc.
Accounts payable
Net assets
S 159,562
93,065
259,091
47.824
55,958
50,430
54,451
46,394
. 9,679
44,664
190
54,450
1,580
51,512
40,634
40,597
56,436
35,937
28,822
1,120
9,675
4.771
148
66,125
12,136,940
(763,515)
389
Schedule 2S - Board of Truslces Fund
Revenues:
Donations of property
Capital gains and losses
Realized and unrealized gains
Property sales
Di\ldends, United Methodist Foundation
Insurance claim receipts
Rental income
Transfers. NC Conference Budget Receipt
Transfers in from other funds
Total revenues
Distributions:
Depreciation expense
Insurance
Leasing expense
Utilities, electric
Property and real estate taxes
Building, grounds and property maintenance
Parsonage maintenance
Janitorial services
Maintenance agreements
Dues and subscriptions
Professional fees
Supplies and miscellaneous
Donations of property
Office equipment
Grants, church extensions
Transfer to other funds
Total distributions
Excess of revenues over distribulio
Beginning
Ending
Consisting of:
Pooled cash
Accounts receivable. United Methodist Foundation
Accounts receivable, other
Investments
Property and equipment, net
Deposit
Capital leases payable
Net assets
6.000
IJ53
107,062
(14,791)
34,971
12,397
215,000
120.821
130,869
187,829
34J61
12J69
70,286
14,974
60,188
15307
28,516
6,618
169
1,880
6,970
934
737
33,233
35,612
228J03
8,828
12,024
1,620.260
1,840,763
(1,122)
(3.237)
390
b2
S , , §
g
<»
O -^ 95
« . VO . . . r<
O -t » 0^
3 s. ^ ? £ ;
1^ m
I 1
391
o 'n -r rn 'n *r r-; ri 00 vo r-; NO ♦'^ <
r-' o -^ -^ r-' « r-' «o r-" — in :
o o t- N
o o- o o
o; cv 'n ■^, « f% 00 o NO r^
-1 >o .n -^ .
c i u S =
"Jllljll,
5
392
Schedule 30 - Contingency Reserve
Revenues:
Interest on checking S 119,154
48.596
Interest on United Methodist Foundation 251,854
Interest on church loans 4,669
Net reclaim last year I65J92
Post audit receipts 51,154
1,819
Expense:
Interest paid
distributions:
1 999 Budget Supplements 52,00n
1 999 Non-Budget Supplements 333,500
1 999 Budget Supplements 487,860
Audit adjustments 94,276
967,636
Decrease in net assets (335,195)
Net assets at beginning of year, excluding gains (161,806)
Net assets at end of year, excluding gains (497,001)
Cumulative United Methodist Foundation realized gains 2,066,507
Net assets available for supplemental appropriations 1,569,506
Designated United Methodist Foundation unrealized gains 3,493,461
Net assets at end of year, including gains S 5,062,967
UM FOUNDATION, INC.
FINANCIAL REPORT
CONTENTS
INDEPENDENT AUDITOR'S REPORT 393"
FINANCIAL STATEMENTS
Statements of net assets 393
Statements of operations 394
Statements of changes in net assets 395
Notes to financial statements 395-396
393
^ MCGLADREY&PULLEH llp
Ml* Certified Public Accountants
INDEPENDENT AUDITORS REPORT
RSM
To the Unitholders and the Board of Directors
of United Methodist Foundation. Inc.
Raleigh. North Carolina
We have audited the accompanying statements of net assets of United Methodist Foundation. Inc. as of
December 3 1. 1999 and 1998. and the related statements of operations and changes in net assets for the
years then ended. These financial statements are the responsibility of the Foundation's management.
Our responsibility is to e.xpress an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing standards. Those standards
require that we plan and perfonn the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the net
assets of United Methodist Foundation, Inc. as of December 31. 1999 and 1998, and the results of its
operations and changes in net assets for the years then ended in conformity with generally accepted
accounting principles.
^YcJ'tUM^ /.
/L££^
Raleigh, North Carolina
February 10,2000
STATEMENTS OF NET ASSETS
December 31, 1999 and 1998
Identified Cost
1999
ASSETS
1999
1998
1998
Investments:
Fixed income securities S
19J34,298
S 16.485.249
S 18,617,489
S 16.788.180
Common stocks
28,969,414
31,923.889
38,499,034
41,004.451
Short-term investments
8J15,695
5.010,493
8315,695
5.010.493
Other assets
2
15,191
2
15.191
Real estate mortgages
4,746.109
4.746.109
S
56,619.409
$ 58.180.931
65,432.220
5,000
67.564,424
Cash, unitholders ~
30.862
Cash, restricted
12,766
12,766
Cash, unrestricted
5,214
12.813
Short-term investments
641,285
1.244.285
Due from unitholders
33,927
30,910
Due from North Carolina Conference
242,892
27.927
Accrued interest and dividends
315,632
328.331
Investments, restricted (Note 3)
248,865
238.340
Cash surrender value, restricted
(Note 3)
65,219
77,879
Mortgage loan receivable, restricted
(Note 3)
48,209
51.093
Total assets
67,051,229
69.619.630
LIABILITIES
Dividends payable
347,209
423,836
Due to unitholders
2,526J28
1.340.555
Total liabilities
2,873,537
1.764,391
NET ASSETS
S 64,177,692
$ 67.855.239
Represented by:
Fund balances of unitholders;
21,828,045 units (24,7 19,499
in 1998)
$ 4231,142
$ 46.302.500
Capital gains reserved
12,705,729
11,791,082
Unrealized appreciation
of investments
8,812,811
63,819,682
9,383,493
67,477,075
Fund balance, unrestricted
5,214
12,813
Fund balances, restricted (Note 3)
352,796
365,351
$ 64,177,692 $ 67.855.239
See Notes to Financial Staten
394
STATEMENTS OF OPERATIONS
Years Ended DccembcrJl, 1999 and 1998
ivestment income:
Income:
Interest
Dividends
Expenses:
Investment fees
Mongage servicing fees
Administrative office
Net investment income
Unrestricted income (expense)
Restricted income:
Interest and dividends
Life insurance contributions
Annuity receipts
Realized and unrealized gain (loss)
Donations, property
Expenses:
Life insurance premiums
Annuity distributions
Other
Net restricted income (loss)
Realized and unrealized gain on investments:
Realized gain from securities transactions
(excluding short-term securities):
Proceeds from sales
Cost of securities sold
Net realized gain
Unrealized appreciation of investments:
Beginning
Ending
Change during period
Net realized and unrealized gain on investments
Net increase in net assets resulting from operations
S 1,757,253 S
-102.115
1.840.137
393.0::
2.159,368
:.:33.i59
452J55
18,921
245,036
432.711
i:.i90
::9,998
716JI2
674.899
1.443,056
1.558.;60
(7,599)
(6.511)
19,747
275
9J68
(33,234)
16,455
18.656
5:5
34.995
16.985
12,611
71,161
275
24,450
441
5:5
36.94:
11373
25,166
49.840
(12,555)
21.3:1
36,563,077
31,609,738
26.:53.704
:i.901,:65
5,053339
4.35:,439
9J83,493
8.812.811
9,404,763
9,383.493
(570,682)
(:i.:70)
4,482,657
4,331.169
S 5.905.559 S
5.904.:39
See Notes to Financial Statements.
395
STATEMENTS OF NET ASSET CHANGES
Years Rndcl December 31. l^O'. und l<m ^^^^^^ ^^^^
From iii\ebirTH.TiI acii\ilies:
Nci insestmem income S 1,443.056 S 1.558.260
Div idends paid 1.443.056 1.558.260
(13.565.345)
(4.347.565)
(8,140,050)
2.279.902
(3.677,547)
67,855,239
6.625.881
S 64,177,692
s
67.855.239
Net realized yain from securitv transaclions 5.053J39 4.352.439
Decrease in unrealized appreciation ofiniesinients (570,682) (21.270)
Net income (loss) from restricted assets (12,555) 21.321
Net income (loss) from unrestricted assets (7.599) {(>.>\ 1 )
Incrcusc in net assets derived
from iniestment activities 4,462,503 4.345.979
From unit transactions (exclusive <y\'
amounts allocated to investment income);
Net asset value of 442.858 and 434.873 units issued
to unitholdersonreinvestmem of div idends 1,224,628 1.139.964
Net asset value of 1 ,5 1 7.493 and 2.07 1.147
new units issued, respectively 4.200,667 5.487.^03
Payment for redemption of 4.851.805 and
1.687.257 units, respectively
Increase (decrease) in net assets from unit
transactions, representing net increase (decrease) of
(2,891,454) units and 818,763 units, respecti'
Net increase (decrease) in net assets
Net assets, beiiinning
Net assets, ending
See Notes to Financial Statements.
NOTES TO FINANCIAL STATEMENTS
Note 1. Nature of Operations and Significant .Accounting Policies
Nature of operations : United Methodist Foundation. Inc. ("Foundation") was established in 1955 b\ the
North Carolina Conference of The United Methodist Church to provide a nianagemeni-iinestment pool
for Ions-term and permanent funds of the North Carolina Conference and of local churches, institutions.
and ministries of the Church. The Foundation was also established to encourage and receive planned
gifts in suppon of local churches, institutions, and special ministries of The United Methodist Church
and to assist donors in placing their gifts.
A summarv of the Foundation's significant accounting policies follows:
Valuation of securities : Investments in filed income securities and common stocks are stated at fair
value, based on closing prices reported on National Securities E.xchanges on December 31. or at the
last bid price, for over-the-counter securities. Shon-term investments are stated at market value.
Investments in real estate mortgages are stated at the lower of aggregate cost or market.
Estimates : The preparation of financial statements in conformity with generally accepted accounting
principles requires management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the reporting period. Actual
results could differ from those estimates.
General The Foundation follows the accounting practice of "equalization" whereby undistributed
Investment income per unit is unaffected by sales or redemptions of units.
Security transactions are accounted for on the trade date. Dividend income is recorded on the
ex-dividend date.
Realized gains and losses from security transactions are reported on the first-in. first-out basis.
Note 2. Securities Transactions
Purchases and sales of investment securities for the year ended December 31. 1999 and 1998 were as
follows:
Cost of purchases:
Short-term investments
Other securities
Proceeds from sale:
Short-term investments
Other securities
1999
1998
s
51,401,879
$
39,250.918
31.504J12
33.696.717
s
82,906,191
$
72.947.635
s
48,096,677
$
44.172,475
36,663,077
26.253,704
s
84,759,754
$
70.426.179
396
Nole 3. Restricted Assets and Obligations
During 1990. the Foundation established a separate Annuity fund to record the investment of funds upon
which certain restrictions have been placed. In connection with these investments, the Foundation
purchased three annuity contracts and established an annuity payable representing the present value of
tlie payments to the annuitants over their remaining life expectancies. The Annuity fund currently has
two annuity contracts and related obligations.
The Foundation also established during 19Q0 a separate Cash Surrender Value fund for life insurance
policies which place certain restrictions on (he use of the proceeds at the death of the donor.
In 1994, the Foundation established a separate Real Estate fund for a donation of an apartment dwelling
in an irrevocable charitable remainder unitrust. Net income from the fund is to be paid to the unitrust
recipient until death of the recipient occurs.
Since the earnings on these investments are not available to all unitholders, they have been accounted for
as restricted assets, liabilities and restricted net assets
Note 4. Net Asset Value Per Outstanding Unit
The net asset value per outstanding unit was S2.92 at December 31, 1999 and $2.73 at December 31
Note 5. Income Taxes
The Foundation is exempt from income taxes under Section 50Uc)(3) of the Internal Re\enueCode.
The Foundation places its cash with a high quality financial institution At limes, such cash is in excess
of the FDIC insurance limit.
397
aNITED METHODIST FOUNDATION, INC.
STATEMENT OF INVESTMENT POLICY,OB JECTIV^S,&GaiDELINES
SCOPE OF THIS IMVESTMENT POLICY
This statement of investment policy reflects the investment policy, objectives and constraints
of Gnited Methodist Foundation, Inc. and is set forth in order to:
1. Define and assign the responsibilities of all involved parties.
2. Establish a clear understanding for involved parties of the investment goals and
objectives for Foundation assets.
3. Offer guidance and limitations to the primary Investment Managers regarding the
investment of Foundation assets.
4. Establish a basis for evaluating investment results.
5. Comply with fiduciary, prudence and due diligence requirements that experienced
investment professionals would expect.
6. Establish the relevant investment horizon for which Foundation assets will be managed.
RESPONSIBILITIES OF THE BOARD COMCERNING IMVESTMEMTS
The responsibilities of the Board of Directors concerning the investment of assets held by the
Foundation on behalf of Investment Partners shall include the fiduciary care of the
Foundation's funds consistent with the guidelines for investments as found in the 1996 Book
of Discipline, Paragraph 806.6 the Statement of Investment Guidelines of The Investment
Committee of the General Council on Finance and Administration of The Gnited Methodist
Church (Rev. 11, 1999), and the Statement of Investment Policy, Objectives and Guidelines.
The specific responsibilities of the Board relating to the investment management of
Foundation assets include:
1. Projecting the Foundation's financial needs, including estimates of expected net cash
flow and communicating such needs to the Investment Manager Consultant on a timely
basis.
2. Determining the Foundation's risk tolerance and investment time horizon and
communicating these to the appropriate parties.